Bill Summary for Bill Number HB10-1040

Date: 02/03/2010

Final
BILL SUMMARY for HB10-1040

HOUSE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Refer House Bill 10-1040 to the Committee on Appro	PASS

11:27 AM -- House Bill 10-1040 - Concerning the Promotion of State 529 Plans

Representative Kerr A., explained that House Bill 10-1040 directs CollegeInvest to promote and encourage the use of 529 savings plans by adults already in the workforce (lifelong learners) to further their own postsecondary education goals. The bill also requires that CollegeInvest develop procedures to allow an employer to make a matching contribution to a lifelong learner's account for any contribution made by the lifelong learner.

The following persons testified:

11:27 AM -- Ms. Debbie, Demuth, CollegeInvest, testified in support of the bill and discussed data that show when students and their families pay and save for higher education, they can expect strong returns on their investment. Ms. Demuth continued by saying that the difference in education can add up over time. For example, adults with advanced degrees had a median income of over $79,000 while adults with less than a high school diploma earned an average income of $19,000. She closed by discussing some of the 529 plan options.

11:37 AM -- Mr. Frank Waterous, The Bell Policy Center, distributed a handout (Attachment B) and testified in support of the bill. He noted that by helping more adults save for their own postsecondary educational opportunities, the bill is good education policy, good workforce development policy, and good economic development policy. He closed by urging the committee to support the bill.

11:40 AM -- Mr. Jerry Hulsizer, Always Best Care, testified in support of the bill. He noted that he employs caregivers who are going to school and this bill allows me to help fund their education.

11:40 AM -- Mr. Ron Kirk, Legislative Council Staff, explained the state income tax deduction for tuition payments and spoke to the impacts in the fiscal note. The committee discussed the amendment placed on the bill in the Education Committee (Attachment C) that would allow the matching employer contribution to be tax deductible at the state level for the employee. Mr. Kirk spoke to the changes in the fiscal impacts based on the assumption of a full matching employer contribution component.


BILL:	HB10-1040
TIME:	11:43:50 AM
MOVED:	Kefalas
MOTION:	Refer House Bill 10-1040 to the Committee on Appropriations. The motion passed on a 11-0 vote.
SECONDED:	Labuda
		VOTE
	DelGrosso	Yes
	Frangas	Yes
	Gerou	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Benefield	Yes
	Judd	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:51 AM

Adjourn.