STAND. COM. REP. NO.  416-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2047

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Human Services & Housing, to which was referred H.B. No. 2047 entitled:

"A BILL FOR AN ACT RELATING TO INDIVIDUAL DEVELOPMENT ACCOUNTS,"

begs leave to report as follows:

     The purpose of this bill is to support asset-building among low- and moderate-income families by:

     (1)  Clarifying guidelines pertaining to individual development accounts (IDAs);

     (2)  Designating the Department of Human Services (DHS) to administer IDAs; and

     (3)  Appropriating funds to operate IDA programs.

     The Legal Aid Society of Hawaii, ALU LIKE, Inc., and a concerned individual testified in support of this bill.  The Hawai'i Alliance for Community-Based Economic Development supported this measure with amendments.

     Your Committee has amended this bill by:

     (1)  Allowing IDAs to be used for the purchase of a motor vehicle used for school or work transportation;

     (2)  Requiring DHS to determine income limits;

     (3)  Designating and allowing DHS to contract with fiduciary organizations;

     (4)  Requiring fiduciary organizations to submit an annual report to DHS instead of the Legislature;

     (5)  Repealing the cap on state funds that can be used by selected fiduciary organizations for administrative costs;

     (6)  Appropriating $400,000 in general or federal funds to operate IDAs; and

     (7)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Human Services & Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2047, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2047, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

MAILE SHIMABUKURO, Chair