STAND. COM. REP. NO. 1265

Honolulu, Hawaii

RE:    H.B. No. 385

       H.D. 2

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 385, H.D. 2, entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to implement two of the recommendations made by the Hawaii State Asset Building and Financial Education Task Force:

     Specifically, this measure:

(1)  Establishes a state earned income tax credit to assist low-income workers;

(2)  Requires the Department of Human Services to offer financial education to applicants and recipients of temporary assistance for needy families; and

(3)  Appropriates funds for financial education.

     Your Committee received written comments in support of this measure from Catholic Charities Hawaii; Community Alliance on Prisons; Goodwill Industries of Hawaii; Hawaii Alliance for Community-Based Economic Development; Hawaii Catholic Conference; Hawaii Women's Coalition; Kokua Kalihi Valley; National Community Tax Coalition; PHOCUSED; and two individuals.  One individual submitted written comments in opposition to this measure.  Your Committee received written comments on this measure from the Department of Human Services and Tax Foundation of Hawaii.

     Your Committee finds that at least twenty-five states have enacted a state earned income tax credit.  Establishing an earned income tax credit in Hawaii will provide an incentive for low-income households to remain in the workforce while providing them with meaningful support to escape from poverty.  Your Committee further finds that offering financial education for families receiving temporary assistance for needy families will help them understand the financial concepts necessary to become self-sufficient.

     Your Committee has amended this measure by changing the effective date to July 1, 2050, to encourage further discussion.

     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. 385, H.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 385, H.D. 2, S.D. 1.

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

____________________________

DAVID Y. IGE, Chair