STAND. COM. REP. NO. 1224

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.C.R. No. 194
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was
referred S.C.R. No. 194 entitled:

     "SENATE CONCURRENT RESOLUTION SUPPORTING THE USE OF
     INDIVIDUAL DEVELOPMENT ACCOUNTS,"

begs leave to report as follows:

     The purpose of this measure is to support the use of
individual development accounts (IDA).

     Your Committee received testimony in support of this measure
from the Department of Human Services, Housing and Community
Development Corporation of Hawaii, Office of Hawaiian Affairs,
Hawaii State Commission on the Status of Women, Department of
Community Services of the City and County of Honolulu, Waimanalo
Community Development Corporation, American Friends Service
Committee, Nanakuli Neighborhood Housing Services, Inc., Parents
and Children Together, and a private citizen.

     The accumulation of assets can improve economic stability,
provide a viable and hopeful future, stimulate the development of
human capital, and enhance the welfare of children.  On
October 27, 1998, President Clinton signed into law the Assets
for Independence Act, which authorizes the U.S. Department of
Health and Human Services to conduct a five-year, $25,000,000 IDA
program for first-home purchases, post-secondary education, and
microenterprise development. 


 
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     This measure expresses legislative recognition and support
of IDAs as effective and important mechanisms for asset building
that should be used to complement existing income-based social
policy in Hawaii.  This measure also requests the Department of
Human Services, Department of Business, Economic Development, and
Tourism, and Housing and Community Development Corporation of
Hawaii to collaborate with IDA practitioners and to support
organizations to assist in the development of IDAs in Hawaii and
ensure that IDA accounts, including any earned interest, will be
disregarded in the determination of benefits or eligibility for
services that account holders may receive from state agencies.

     Your Committee has amended this measure by deleting the
provision from the second BE IT RESOLVED clause requiring that
IDA accounts and interest be disregarded for purposes of
determining eligibility for public benefits or services.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee concurs with the intent and purpose of
S.C.R. No. 194, as amended herein, and recommends that it be
referred to the Committee on Ways and Means, in the form attached
hereto as S.C.R. No. 194, S.D. 1.

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



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
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