STAND. COM. REP. NO. 754

Honolulu, Hawaii

RE:    S.B. No. 301

       S.D. 2

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 S.B. No. 301, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ASSET BUILDING,"

begs leave to report as follows:

     The purpose and intent of this measure is to implement recommendations submitted by the Hawaii State Asset Building and Financial Education task force.

     More specifically, this measure:

     (1)  Establishes a state refundable earned income tax credit; and

     (2)  Appropriates moneys for grants to provide financial education and tax workshops.

     Your Committee received written comments in support of this measure from the Office of Hawaiian Affairs; Aloha United Way; Catholic Charities Hawaii; Goodwill Industries of Hawaii, Inc.; Hawaii Alliance for Community-Based Economic Development; Hawaii Catholic Conference; Hawaii Appleseed Center for Law and Economic Justice; Leeward Housing Coalition; Partners in Care; PHOCUSED; Papakolea Community Development Corporation; the Sovereign Councils of the Hawaiian Homelands Assembly; and six individuals.

     Your Committee received written comments on this measure from the Tax Foundation of Hawaii and Hawaiian Community Assets.

     Your Committee finds that the Hawaii State Asset Building and Financial Education Task Force was charged with developing policy recommendations to implement various asset building strategies in the State.  The task force's recommendations included implementing tax policies that make work pay, improving financial education, helping people start businesses, helping people become homeowners, and removing barriers to asset building.  Your Committee further finds that the refundable state earned income tax credit established by this measure will serve to implement the tax policies recommended by the task force.

     Your Committee has amended this measure by:

     (1)  Deleting the appropriations for grants to the Hawaii Alliance for Community-Based Economic Development;

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

     (3)  Making technical nonsubstantive amendments for the purposes of consistency, 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. 301, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 301, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair