Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred H.B. No. 140, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to require the Legislature to conduct oversight hearings relating to the appropriate implementation of programs funded by federal Temporary Assistance for Needy Families (TANF) moneys.

Your Committee received testimony in support of this measure from the Housing and Community Development Corporation of Hawaii and Hawaii Government Employees Association. Testimony in opposition was received from the Department of Human Services (DHS) and the Department of Health. Comments were received from the Hawaii Medical Service Association and University of Hawaii.

Your Committee finds that Hawaii receives limited TANF funding. TANF was enacted pursuant to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. States may set eligibility levels depending on which purpose the funds are to be used. The four purposes of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 are to provide assistance to needy families, end dependence on welfare by promoting jobs, preventing and reducing the incidence of out-of-wedlock pregnancies and establishing annual numerical goals for preventing and reducing the incidence of pregnancies, and encourage the formation and maintenance of two-parent families.

TANF grants typically pay the cost of job training, wage subsidies, travel expenses and childcare for families struggling to become self-sufficient. Federal guidelines mandate that the use of grant money must be for eligible, needy families with a child and qualify on one of the four purposes of the TANF program.

The states are also required to report quarterly on the amount of money they spend on the program. If the states fail to obligate money by October 1st of each year, they lose the funding. Recently it was reported that $1,000,000 in TANF funds were used for anti-drug advertising featuring local celebrities. This is contrary to what the federal law mandates regarding this program. Thus, legislative oversight is necessary as to the use of TANF funds by conducting oversight hearings on Medicaid waiver applications by the Senate Committees on Ways and Means, Health, and Human Services, and the House Committees on Finance, Health, and Human Services. The committees would evaluate the implementation of programs and fund expenditures and make annual recommendations for appropriations.

Your Committee has amended this measure by:

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. 140, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 140, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.