STAND. COM. REP. NO.  1273-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2837

      S.D. 1

      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 S.B. No. 2837, S.D. 1, 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, among other things:

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

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

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

     (4)  Requiring DHS or a contracted agency to provide administrative assistance to fiduciary organizations;

     (5)  Allowing DHS to determine the match ratio for qualified expenditures;

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

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

     (8)  Appropriating funds to operate IDAs.

     The Legal Aid Society of Hawaii, Asset Building Initiative of Hawaii, Aloha United Way, Hawaii Alliance for Community-Based Economic Development, and a concerned individual testified in support of this bill.  DHS supported the intent of this measure.

     Your Committee has amended this bill by:

     (1)  Specifying that DHS or another state agency is designated to administer IDAs; and

     (2)  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 S.B. No. 2837, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2837, S.D. 1, 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