STAND. COM. REP. NO. 392

Honolulu, Hawaii

RE:    S.B. No. 1937

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Human Services and Public Housing, to which was referred S.B. No. 1937 entitled:

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

begs leave to report as follows:

     The purpose of this measure is to require the Department of Human Services to develop and implement a micro-credit pilot program and appropriate funds for that purpose.

     The Department of Human Services, the Hawai‘i Alliance for Community-Based Economic Development, and 3Point submitted testimony in support of this measure.

     Your Committee finds that the State should help its residents build assets as assets are a critical component of financial security and integral to overcoming poverty.  Micro-credit is the extension of small loans to the unemployed, to poor entrepreneurs, and others who are "pre-bankable" or not otherwise qualified for traditional loans.  This financial innovation originated in developing countries where it successfully engaged extremely impoverished people in self-employment projects that enabled them to generate an income.  According to the testimony, there are approximately six hundred domestic loan funds across the United States that practice micro‑credit as described in this measure.

     Your Committee notes that the Department of Human Services testified that it estimates that an appropriation of $300,000 is needed to contract out the development and implementation of a micro-credit pilot program, and it requested that the Legislature increase its current Temporary Assistance for Needy Families cap on work support programs for this purpose in lieu of a State general fund appropriation.

     It is the Committee's intent to support the Department of Human Services' request to increase the current Temporary Assistance for Needy Families cap on work support programs in lieu of a State general fund appropriation.  Your Committee has amended this measure by:

     (1)  Appropriating or authorizing money from Temporary Assistance for Needy Families funds to the Department of Human Services to develop and implement the micro‑credit pilot program; and

     (2)  Making technical, nonsubstantive changes for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Human Services and Public Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1937, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1937, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Human Services and Public Housing,

____________________________

SUZANNE CHUN OAKLAND, Chair