The Subcommittee conducted an oversight hearing on Section 529 College Savings Plans, State-sponsored investments that are designed to encourage families to save money for their children's college education. Section 529 refers to the Internal Revenue Code section that authorizes and confers special tax treatment on these entities. Section 529 College Savings Plans are instrumentalities of the various State Governments. The States usually organize the plans as trusts which, in turn, typically invest the plan assets in mutual funds managed by third party asset managers. This oversight hearing built on two previous hearings in which this Subcommittee examined mutual fund management and governance, mutual fund fees, and the adequacy of fee disclosures. Testimony was presented by: Senator Peter G. Fitzgerald (R-IL); Senator Frank Lautenberg (D-NJ); Senator Mark Pryor (D-AR); Senator Daniel K. Akaka (D-Hawaii); Steven T. Miller, Commissioner, Tax Exempt and Government Entities Division, Internal Revenue Service; Mary L. Schapiro, Vice Chairman and President, Regulatory Policy and Oversight, NASD; Ernesto A. Lanza, Senior Associate General Counsel, Municipal Securities Rulemaking Board; Michael A. Ablowich, Treasurer, State of New Hampshire, on behalf of the National Association of State Treasurers; Jacqueline T. Williams, Executive Director, College Advantage Savings Plan, Ohio Tuition Trust Authority, on behalf of the College Savings Plan Network; Martin M. Noven, Deputy Chief of Staff, on behalf of Judy Baar Topinka, State Treasurer, State of Illinois; Richard O. Davis, Deputy Executive Director for Finance and Administration, Utah Higher Education Assistance Authority; Daniel McNeela, CFA, Senior Analyst, Morningstar, Inc.; and Mercer E. Bullard, President and Founder, Fund Democracy, Inc. Appendices includes a chart entitled "Value of a $10,000 investment after 10 years"; a chart entitled "Value of a $10,000 investment after 18 years"; a chart entitled "Growth in Section 529 Plans 1996-2004"; The "529 Plan Information" chart from the Morningstar website; Barbara Hafer, Treasurer, Commonwealth of Pennsylvania, prepared statement with an attachment; Tim Berry, Indiana State Treasurer and NAST President, National Association of State Treasurers; and Questions and Responses to Senator Lautenberg from Mr. Miller, Mr. Lanza, Ms. Schapiro, Mr. McNeela, and Mr. Bullard.