STAND. COM. REP. NO. 2768

Honolulu, Hawaii

RE:    S.B. No. 2592

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2592, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO UNIVERSAL CHILDREN'S SAVINGS ACCOUNTS,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish a children's savings account program within the Department of Budget and Finance to:

     (1)  Encourage children who were born or reside in Hawaii to save money; and

     (2)  Promote and educate eligible children and their families on the importance of developing a savings account.

     Your Committee received written comments on this measure from the Department of Budget and Finance.

     Your Committee finds that the accrual of assets is essential to achieving financial security, creating economic opportunities, and leaving a legacy for future generations.  This measure will provide individuals with tangible incentives to save money, which will lead to greater financial stability and self-sufficiency for Hawaii's families.

     Your Committee has amended this measure by:

     (1)  Requiring the Department of Budget and Finance to consult with members of the Hawaii State Asset Building and Financial Education Task Force in adopting rules to administer the program;

     (2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

     (2)  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 Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2592, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2592, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair