SENATE BILL REPORT

ESSB 6591

BYSenate Committee on Higher Education (originally sponsored by Senators Saling, Smitherman, Johnson, Rinehart, von Reichbauer, McMullen, Anderson, Gaspard, Patterson, Stratton, Cantu, Garrett and Smith)

Establishing a college savings bond program.

Senate Committee on Higher Education

Senate Hearing Date(s):February 1, 1988

Majority Report:  That Substitute Senate Bill No. 6591 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Saling, Chairman; Patterson, Vice Chairman; Anderson, McMullen, Smitherman, von Reichbauer.

Senate Staff:Jo-Ellen Thomas (786-7784)

                  February 12, 1988

AS PASSED SENATE, FEBRUARY 11, 1988

BACKGROUND:

The cost of a college education is continually increasing.  Many Washington citizens are unable to meet rising college costs.  The Legislature feels it is of the utmost importance that those who wish to obtain a college education can afford to do so.  In order to assist Washington citizens in financing their college costs, and to encourage enrollment in Washington colleges and universities, the Legislature establishes a college savings bond program.

SUMMARY:

In order to provide funds for higher education capital projects, the State Finance Committee is authorized to issue $50 million in college savings bonds.  The bond sale is regulated by the State Finance Committee. The college savings bonds are state general obligation bonds and may be sold at a deep discount.  Bond proceeds are deposited into the state building construction account.  The state higher education bond retirement fund of 1988 is created in the state treasury.

The Higher Education Coordinating Board creates and implements bond marketing and publicity strategies.  The State Finance Committee and the Higher Education Coordinating Board must report on the bond program's effectiveness by December 1, 1990.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Tim Kerr, State Treasurer