SR52 SD1

WHEREAS, the Legislature finds that for many Hawaii residents, the cost of purchasing a home, pursuing post-secondary education, and starting a business is becoming prohibitively expensive; and

WHEREAS, traditional public assistance programs where household income thresholds determine eligibility are not necessarily successful in supporting lower-income families who are making the transition to increased economic self‑sufficiency; and

WHEREAS, many of these traditional programs focus on helping participants obtain and maintain jobs but penalize participants for accumulating what few assets they are able to afford; and

WHEREAS, when income‑based policies are coupled with asset‑based policies, they provide a comprehensive means for lower-income families to achieve greater financial independence and well‑being; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2008, that the Chairs of the Senate Committee on Human Services and Public Housing and the House Committee on Human Services and Housing are requested to convene a statewide task force on public financial education and asset-building; and

BE IT FURTHER RESOLVED that the purpose of the task force is to develop policy recommendations regarding universal, matched savings accounts for newborns; statewide standards for financial and economic education for public- and private-sector employees; and the elimination of asset limits as a bar to eligibility for public benefit programs; and

BE IT FURTHER RESOLVED that for the purposes of establishing universal, matched savings accounts for newborns, the task force is requested to consider the following factors:

(1) The savings vehicle, including the rate of return, safety of the investment, account insurance, ease of managing the account, and the ease of making various forms of deposits;

(2) State contributions, including the state contribution to the initial deposit, the amount, time frame, and eligibility requirements to receive state matching funds; mechanisms to distribute state contributions; and estimated costs and benefits;

(3) Ownership of the account, including the impact on eligibility for student financial aid, public assistance and other public benefits, and taxation of account earnings and distributions;

(4) Financial education, including the provision of financial education to children and families, and access to additional financial services;

(5) Restrictions, including withdrawal or distribution from the account prior to the child's reaching age eighteen, the portability of the account, and limits on permissible uses of the account;

(6) Revenue sources, including sources for the initial deposit and any savings match, and the feasibility of a state match for deposits for children in lower-income families;

(7) Mechanisms for data collection and tracking; and

(8) All other factors that the task force deems important to program design; and

BE IT FURTHER RESOLVED that for the purposes of creating financial education standards for public- and private-sector employees, the task force is requested to consider:

(1) Curriculum content and delivery mechanisms;

(2) Financial education standards coordination and training;

(3) Strategies for public-private partnerships to offer financial and economic education to employees; and

(4) All other factors that the task force deems important in program design; and

BE IT FURTHER RESOLVED that in addition to the conveners specified, the task force membership is requested to consist of the Directors of the following departments or agencies, or the Directors' designees: the Department of Budget and Finance, the Department of Commerce and Consumer Affairs, the Department of Business, Economic Development, and Tourism, the Department of Human Services, the Department of Taxation, the Department of Labor and Industrial Relations, and the Department of Human Resources Development, as well as the Superintendent of Education, the Chair of the Board of Trustees of the Office of Hawaiian Affairs, and the Chair of the Hawaiian Homes Commission, or their designees; and

BE IT FURTHER RESOLVED that in addition to the members specified, it is requested that the task force also consist of one designee from each of the following offices: the Speaker of the House of Representatives; the President of the Senate; and the President of the University of Hawaii; and

BE IT FURTHER RESOLVED that in addition to the members specified, the task force shall also include one representative from the following categories: asset-building in Hawaii; the individual development account program under chapter 257, Hawaii Revised Statutes; grassroots organizing; poverty law; the business industry; child advocacy; rural community advocacy; organized labor; the banking industry; credit unions; investment service providers; and financial education organizations; and

BE IT FURTHER RESOLVED that the task force may consult with national organizations with relevant experience, as appropriate; and

BE IT FURTHER RESOLVED that the task force is requested to submit a report containing its findings and recommendations, including proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2010; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the President of the Senate, the Speaker of the House of Representatives, the Chair of the House Committee on Human Services and Housing, the Chair of the Senate Committee on Human Services and Public Housing, the Director of Finance, the Director of Business, Economic Development and Tourism, the Director of Commerce and Consumer Affairs, the Superintendent of Education, the Chair of the Hawaiian Homes Commission, the Director of Human Resources Development, the Director of Human Services, the Director of Labor and Industrial Relations, the Chair of the Board of Trustees of the Office of Hawaiian Affairs, the Director of Taxation, and the President of the University of Hawaii.

Report Title:

Special Education; Rights of Parents

THE SENATE	S.R. NO.	52
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 1
STATE OF HAWAII