HOUSE BILL REPORT

HB 1341

BYRepresentatives Valle, Silver, Jacobsen, Prince, Rector, Dellwo,K. Wilson, Beck, Day, Wineberry, Winsley, Morris, Sayan, Belcher, Prentice, Leonard, Brough, Basich, Kremen, Jones, May, P. King, Phillips, Hine, Pruitt, Hankins, H. Myers, Miller, Ebersole, Walker, Crane, Sprenkle and D. Sommers 

Establishing the college savings bond program.

House Committe on Higher Education

Majority Report:  Do pass with amendments.  (10)

      Signed by Representatives Jacobsen, Chair; Spanel, Vice Chair; Van Luven, Ranking Republican Member; Basich, Fraser, Heavey, Inslee, Jesernig, H. Myers and Wood.

House Staff:Joan Elgee (786-7166)

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION FEBRUARY 22, 1989

BACKGROUND:

Rising tuition costs have prompted both state legislatures and Congress to examine ways to assist parents finance higher education.  In 1988, Washington followed the successful lead of Illinois in enacting a college savings bond program.  The act authorized the sale of $50 million general obligation higher education capital bonds (which are tax exempt) as college savings bonds. In September, 1988, the state finance committee sold the entire authorized $50 million in a well received bond offering.

The Higher Education Coordinating Board and the state finance committee are to report on the effectiveness of the college savings bond program to the Governor and the legislature by December 1, 1990.  In the report, the board is to consider the advisability of offering incentives to purchase college savings bonds.

SUMMARY:

BILL AS AMENDED:  The state finance committee is authorized to sell any future higher education capital bonds as college savings bonds.

The report by the Higher Education Coordinating Board and the state finance committee is to cover bonds issued under this act, as well as bonds issued under the 1988 act.

AMENDED BILL COMPARED TO ORIGINAL: Incentive payments to persons who use bond proceeds for higher educational expenses are eliminated and the requirement that the Board study the feasibility of offering incentives to purchase bonds is restored.  The study of the effectiveness of the college savings bond program is to include bonds issued under the act.

Fiscal Note:      Requested February 22, 1989.

House Committee ‑ Testified For:    Representative Georgette Valle.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The 1988 college bond sale was very successful.  The bonds sold out in three days.

House Committee - Testimony Against:      None Presented.