Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Human Services and Housing, to which was referred S.B. No. 1325, S.D. 2, entitled:

begs leave to report as follows:

The purpose of this bill is to increase the percentage of conveyance tax moneys collected that are paid into the Rental Housing Trust Fund (RHTF) to fund various homeless assistance programs from 12.5 to 25 percent.

The Housing and Community Development Corporation of Hawaii, Institute for Human Services, Inc., Catholic Charities Elderly Services, Rental Housing Trust Fund Advisory Commission, Special Assistant to the Governor for Housing, and Hawaii Catholic Conference testified in support of the measure. The Tax Foundation of Hawaii submitted comments.

Your Committee finds that funding for the Homeless Assistance Program (HAP) will be discontinued at the end of this fiscal year. HAP assists over 800 women and family members each year. If funding is not provided, many of these individuals may be homeless.

In addition, thousands of individuals will lose their welfare benefits at the end of this year. HAP requires a dedicated source of funding to continue its current operations as well as prepare for an increase in the number of individuals seeking assistance.

This bill has been amended by deleting its substance and inserting provisions that reallocate the distribution conveyance tax revenues as follows:

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 S.B. No. 1325, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1325, S.D. 2, H.D. 1, and be referred to the Committee on Finance.