STAND. COM. REP. NO. 2601
RE: S.B. No. 2660
Honorable Colleen Hanabusa
President of the Senate
Twenty-Fourth State Legislature
Regular Session of 2008
State of Hawaii
Your Committee on Ways and Means, to which was referred S.B. No. 2660, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO COLLEGE SAVINGS PROGRAMS,"
begs leave to report as follows:
The purpose of this measure is to provide a state tax deduction for contributions to a 529 plan college tuition program.
Your Committee received testimony in support of the measure from the Securities Industry and Financial Market Association. Your Committee received comments on the measure from the Department of Taxation, the Department of Budget and Finance, the Hawaii Association of Independent Schools, Upromise Investments, Inc., and the Tax Foundation of Hawaii.
Your Committee finds that federal tax-deferred college savings plans or "529 plans" allow the states to establish savings programs to assist and encourage families to set aside funds for future higher education expenses.
The tax deduction under this measure provides an additional tax benefit and incentive for college-bound students and their families to prepare financially for the cost of a college education.
Your Committee has amended the measure by:
(1) Underscoring appropriate provisions of the measure to comply with Ramseyer bill drafting requirements;
(2) Adding an effective date for the measure of "upon approval"; and
(3) Making technical amendments that have no substantive effect.
As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2660, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2660, S.D. 3.
Respectfully submitted on behalf of the members of the Committee on Ways and Means,
ROSALYN H. BAKER, Chair