STAND. COM. REP. NO. 692________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 487
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Human Services and Housing, to which was
referred H.B. No. 487 entitled: 


begs leave to report as follows:

     The purpose of this bill, as received, is to promote
entrepreneurship, education, and self-sufficiency for welfare
recipients and low-income individuals by establishing Individual
Development Accounts (IDAs).

     The Hawaii State Commission on the Status of Women, the
Department of Community Services of the City and County of
Honolulu, Maui Economic Opportunity, Parents and Children
Together, Legal Aid Society of Hawaii, and the Bank of Hawaii
submitted testimony in support of this measure.  American Friends
Service Committee, the National Association of Social Workers,
and the Waimanalo Community Development Corporation submitted
testimony in support of the intent of this measure.  The
Department of Human Services (DHS) was unable to give its
support, as implementation would require staff resources that go
beyond DHS' capability.

     Your Committee finds that IDAs are a powerful tool to help
people escape poverty by providing incentives to save income.
IDAs provide families a healthy economic alternative that breaks
generations of dependence on public assistance, and promotes
life-long habits to save.

                                 STAND. COM. REP. NO. 692________
                                 Page 2

     Your Committee finds that this measure, as written, is just
one alternative towards establishing an IDA within the State.

     After careful consideration, your Committee has amended this
measure by:

     (1)  Deleting its substance and replacing it with an IDA
          program that provides tax incentives to encourage
          private sector support of an IDA match;

     (2)  Making an appropriation for matching funds; and

     (3)  Making technical amendments for purposes of clarity,
          consistency, and style.

     As affirmed by the record of votes of the members of your
Committee on Human Services and Housing that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 487, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 487, H.D.
1, and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Human Services
                                   and Housing,

                                   DENNIS A. ARAKAKI, Chair