Report Title:
Micro-credit Loan Program; DHS Feasibility Study
Description:
Requires the Department of Human Services to conduct a study on the feasibility of implementing a micro-credit loan program. Appropriates funds.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
103 |
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TWENTY-FOURTH LEGISLATURE, 2007 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to social services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that 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. Muhammad Yunus, a United States educated professor of economics, shared the Nobel Peace Prize for 2006, for a project that he initiated in his native Bangladesh in 1974. Similar efforts throughout the developing world and even in the United States have proven that micro-credit can be a liberating force and help people find ways to break out of poverty.
The purpose of this Act is to require the department of human services to study the feasibility of implementing a micro-credit loan program and to appropriate funds for that purpose.
SECTION 2. (a) The department of human services shall conduct a study on the feasibility of implementing a micro-credit loan program that would:
(1) Provide loans to low-income individuals who are pre‑bankable;
(2) Enable participants to engage in self-employment projects that allow them to generate an income; and
(3) Provide counseling and fiscal assistance to participants to help them manage their loans and responsibilities.
(b) For purposes of this section, "pre‑bankable" means lacking collateral, steady employment, verifiable credit history, or the other minimum qualifications necessary to gain access to traditional credit.
(c) The study shall include:
(1) Research on similar programs currently implemented in other states and determine best practices;
(2) Consultation with the United States Small Business Administration; department of business, economic development, and tourism; department of labor and industrial relations; and the department of human services vocational rehabilitation and services for the blind division;
(3) Gauging the support of local lending institutions in a micro-credit loan program;
(4) Finding sources of federal funding that may be available for the program; and
(5) Consultation with Maui Economic Opportunity and other local agencies with experience in micro-credit loan programs.
(c) The department of human services shall submit a report on its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the 2008 regular session that shall include research, evaluation, and best practices for the implementation of micro-credit loan programs, and the feasibility of implementing a micro-credit loan program within the department of human services.
SECTION 3. There is appropriated out of the federal temporary assistance for needy families program funds the sum of $ or so much thereof as may be necessary for fiscal year 2007-2008 and the same sum or so much thereof as may be necessary for fiscal year 2008-2009 for the department of human services to conduct a study on the feasibility of implementing a micro-credit loan program.
The sums appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 4. This Act shall take effect on July 1, 2007.