[Congressional Record Volume 146, Number 142 (Wednesday, November 1, 2000)]
[Senate]
[Pages S11465-S11466]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    UNANIMOUS-CONSENT REQUEST--S. 13

  Mr. SESSIONS. Mr. President, I ask unanimous consent that the Finance 
Committee be discharged from further consideration of S. 13, the Class 
Act. I further ask consent that the Senate proceed to its 
consideration, and an amendment at the desk submitted by Senator 
Sessions be agreed to, the bill be read the third time and passed, and 
that the motion to reconsider be laid upon the table. Further, I ask 
that the bill remain at the desk, and that when the Senate receives 
from the House H.R. 254, the Senate proceed to its consideration, all 
after the enacting clause be stricken and the text of S. 13, as 
amended, be inserted in lieu thereof. I further ask that the bill be 
read the third time and passed, the motion to reconsider be laid upon 
the table, and all previous action on S. 13 be vitiated.
  The PRESIDING OFFICER. Is there objection?
  Mr. REID. Reserving the right to object, a member of the minority has 
requested that on his behalf I object to this action, and based upon 
that request, I object.
  The PRESIDING OFFICER. Objection is heard.
  Mr. SESSIONS. Mr. President, Senator Graham of Florida and I have 
been working on this bill. This legislation, in sum, provides that 
families that are saving for college tuition under prepaid college 
tuition plans, which are growing in popularity in America, the money 
they save and the interest that accrues on those plans not be taxable 
by the Federal Government. That is what this law would do if passed.
  What we are doing in America today is we have a public policy to 
encourage families, through loan subsidies and other forms of 
incentives and delays in payments of interest, to borrow money to pay 
for college. But people who are saving money, even under State prepaid 
college tuition plans, are taxed on the money they save. This is a 
disincentive for the best way to pay for college tuition; that is, 
saving for college. Well over 40 States have these prepaid plans and 
the few States that don't are moving to develop them. It is working 
very well. The Federal tax policy ought to affirm what these States are 
doing and make this tax-free.
  I just note that this is a middle class program. For example, 71 
percent of the participating families in the Florida prepaid college 
program have annual incomes under $50,000, and 25 percent have incomes 
of less than $30,000; 81 percent of the contracts in Wyoming's savings 
plan have been purchased by families with annual incomes of less than 
$34,000; 62 percent of the contracts in Pennsylvania have been 
purchased by families with annual incomes of less than $35,000. The 
average monthly contribution to a family's college savings account in 
1995 in Kentucky was $43.
  So what we are saying is let's have a good public policy. Let's 
encourage

[[Page S11466]]

people to save and make sure it is a wise thing for them to do 
financially. If we can achieve that, I think it would be good. As far 
as I understand, there is only one person in this who has an objection. 
I would be delighted to know who that was. Senator Graham and I would 
like to talk to them to see if the problem they have can be worked out. 
I think it is good public policy. Both Vice President Gore and Governor 
Bush have made statements that clearly indicate their support for this 
kind of public policy. I am working with Senator Daschle, the 
Democratic leader, and I thank him for his assistance on this 
legislation, dealing with an issue he thought important to his State.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Nevada is recognized.

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