STAND. COM. REP. NO. 3430

Honolulu, Hawaii

RE:    H.B. No. 2047

       H.D. 2

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 2047, H.D. 2, S.D. 1, 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.

     More specifically, the measure would expand the efficiency and effectiveness of individual development account programs by:

     (1)  Clarifying the guidelines for individual development accounts;

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

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

     (4)  Amending the funding mechanisms of the individual development account program; and

     (5)  Appropriating general funds to operate the individual development account programs.

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

     Individual development accounts are matched savings accounts that enable participants to more quickly save funds for the purchase of a home or car, the creation of a small business, or more education.  Your Committee finds that individual development accounts are an integral part of a comprehensive policy to help people build assets and move from dependency on government support to self-sufficiency.  This measure creates opportunities for more Hawaii families to achieve their asset-building goals.

     Your Committee has amended this measure by making technical nonsubstantive changes for the purpose of clarity.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2047, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2047, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair