STAND. COM. REP. NO.  903

Honolulu, Hawaii

                , 2013

RE:   H.B. No. 385

      H.D. 2

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 385, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HUMAN SERVICES,"

begs leave to report as follows:

The purpose of this measure is to enhance asset-building and financial security for Hawaii residents and increase their financial education by implementing two recommendations submitted by the Hawaii State Asset Building and Financial Education Task Force by:

(1)  Enacting a refundable state Earned Income Tax Credit;

(2)  Requiring the Department of Human Services to offer financial education to applicants for and recipients of Temporary Assistance for Needy Families (TANF); and

(3)  Appropriating funds for financial education to TANF applicants and recipients.

The Office of Hawaiian Affairs; Hawaii Appleseed Center for Law and Economic Justice; Catholic Charities Hawaii; Goodwill Industries of Hawaii, Inc.; PHOCUSED; Partners In Care; Hawaii Women's Coalition; and two concerned individuals supported this measure.  The Department of Human Services, Department of Taxation, Office of Community Services, and Tax Foundation of Hawaii commented on this measure.

     Your Committee has amended this measure by:

(1)  Changing its effective date to July 1, 2030, to facilitate further discussion; 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 Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 385, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 385, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair