STAND. COM. REP. NO. 1925
RE: S.B. No. 1919
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Fourth State Legislature
Regular Session of 2007
State of Hawaii
Your Committee on Finance, to which was referred S.B. No. 1919, S.D. 2, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO ASSET BUILDING,"
begs leave to report as follows:
The purpose of this bill is to provide comprehensive assistance for individuals to reach self-sufficiency by, among other things:
(1) Requiring the Department of Business, Economic Development, and Tourism (DBEDT) to annually establish a self-sufficiency standard to reflect the cost of living in Hawaii;
(2) Requiring certain public assistance payments to be based on the self-sufficiency standard;
(3) Establishing an Earned Income Tax Credit;
(4) Requiring the Department of Human Services (DHS) to offer financial education to applicants for and recipients of Temporary Assistance for Needy Families and appropriating funds for this purpose;
(5) Requiring DHS to provide technical and administrative assistance to fiduciary organizations participating in the State's Individual Development Account (IDA) program, and allowing DHS to expend funds for IDAs; and
(6) Appropriating $2,000,000 for fiscal year 2007-2008 for fiduciary organizations to conduct IDA programs.
The Hawaii Government Employees Association; ILWU Local 142; Hawaii State AFL-CIO; Hawaii Alliance for Community-Based Economic Development; National Association of Social Workers, Hawaii; Aloha United Way; 3Point; American Association of University Women, Windward Branch; Asset Building Initiative of Hawaii; and several concerned individuals testified in support of this bill. DBEDT supported the intent of this measure. DHS, the Department of Taxation, and Tax Foundation of Hawaii offered comments.
Your Committee has amended this bill by:
(1) Deleting purpose language;
(2) Deleting the provisions relating to the establishment of a self-sufficiency standard;
(3) Changing the appropriation for fiduciary organizations to conduct individual development account programs, to an unspecified amount to encourage further discussion;
(4) Deleting the provision that would allow one motor vehicle purchase for school or work transportation to be considered a qualified expenditure for the purpose of IDAs;
(5) Deleting the provision authorizing DHS to expend funds for IDAs;
(6) Changing the effective date to July 1, 2020; and
(7) Making technical, nonsubstantive amendments for clarity, consistency, and style.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1919, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1919, S.D. 2, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Finance,
MARCUS R. OSHIRO, Chair