STAND. COM. REP. NO. 918

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 385

       H.D. 2

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Human Services, to which was referred H.B. No. 385, H.D. 2, entitled:

 

"A BILL FOR AN ACT RELATING TO HUMAN SERVICES,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to enhance asset-building and financial security for Hawaii residents and increase their financial education by:

 

     (1)  Enacting a refundable state earned income tax credit;

 

     (2)  Requiring the Department of Human Services to offer financial education to applicants for and recipients of Temporary Assistance for Needy Families; and

 

     (3)  Appropriating funds for financial education to Temporary Assistance for Needy Families applicants and recipients.

 

     Your Committee received testimony in support of this measure from the Office of Hawaiian Affairs; Community Alliance on Prisons; Goodwill Industries of Hawaii, Inc.; Hawaii Alliance for Community-Based Economic Development; Hawaii Appleseed Center for Law and Economic Justice; Hawaii Catholic Conference; National Community Tax Coalition; Partners in Care; PHOCUSED; and three individuals.  Your Committee received comments on this measure from the Department of Human Services, Department of Taxation, and Tax Foundation of Hawaii.

 

     Your Committee finds that a refundable earned income tax credit is essential to ensuring that people who work are able to make ends meet.  The tax credit is a good way to help families that experience temporary job loss, reduced hours, or reduced pay.  State earned income tax credits help ensure that people who work hard are able to meet basic needs, support their families, and stay off welfare.  Currently, twenty-five states and the District of Columbia have enacted a state earned income tax credit, and nearly all twenty-five states calculate the value of the state credit as a percentage of the federal earned income tax credit amount, which is also a refundable income tax credit.  This measure would assist the needs of many struggling families and financially educate them to help build their assets.

 

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 385, H.D. 2, and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

 

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

 

 

 

____________________________

SUZANNE CHUN OAKLAND, Chair