STAND. COM. REP. NO. 3080

Honolulu, Hawaii

RE:    H.B. No. 2047

       H.D. 2

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Human Services and Public Housing, to which was referred H.B. No. 2047, H.D. 2, entitled:

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

begs leave to report as follows:

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

     (1)  Amending the guidelines for individual development accounts;

     (2)  Designating the Department of Human Services to administer the individual development account program;

     (3)  Adding one motor vehicle to the list of qualified account expenditures; and

     (4)  Amending the funding mechanisms of the individual development account program and appropriating funds therefor.

     Testimony in support of this measure was submitted by the Department of Human Services, the Hawai‘i Alliance for Community-Based Economic Development, the Legal Aid Society of Hawai‘i, and Aloha United Way.

     Your Committee finds that individual development accounts are vital tools in assisting individuals with improving their financial literacy and encouraging saving toward the goal of homeownership, degrees in higher education, or owning a small business.  Your Committee further finds that this measure would substantially widen the current individual development account program's impact.

     Your Committee has amended this measure by:

     (1)  Incorporating the joint comments made by the Legal Aid Society and the Department of Human Services by expanding the definition of "department" in section 2 of the measure to mean "the Department of Human Services or another state agency";

     (2)  Changing its effective date to July 1, 2008; and

     (3)  Making technical, nonsubstantive amendments for the purposes of clarity 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 H.B. No. 2047, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2047, H.D. 2, 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