STAND. COM. REP. NO. 943

Honolulu, Hawaii

, 2005

RE: S.B. No. 1009

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1009, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INDIVIDUAL DEVELOPMENT ACCOUNTS,"

begs leave to report as follows:

The purpose of this measure is to extend the Individual Development Account Program, including the individual development contribution tax credit for five years.

The bill also authorizes financial institutions to claim the tax credit and to use part of the private funds contributed to the program for ministerial purposes. The bill also raises the individual development account contribution ceiling from $1,000,000 to $2,000,000 until the proposed repeal of the program on December 31, 2009.

Your Committee finds that individual development accounts are a proven strategy that assist low-income individuals and families to build wealth and assets. The accounts are matched savings accounts that offer a 1:1 to 3:1 match for every dollar a participant saves. Individuals or families can accumulate savings toward a down payment on a home, higher education tuition and fees, or capital to start a business.

Your Committee has amended the bill by making technical nonsubstantive amendments for clarity and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1009, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1009, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair