STAND. COM. REP. NO. 1077

Honolulu, Hawaii

RE:    H.B. No. 801

       H.D. 1

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Human Services, to which was referred H.B. No. 801, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CHILD SUPPORT,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require certain amounts of child support monies collected by the Department of Human Services for public assistance of a child to pass through to the family receiving the public assistance; and

     (2)  Require the Department to disregard certain amounts that are passed through child support payments when determining the needs of an applicant for or recipient of public assistance.

     Your Committee received testimony in support of this measure from one individual.  Your Committee received comments on this measure from the Department of Human Services and Department of the Attorney General.

     Your Committee finds that the Child Support Enforcement Agency (CSEA) is tasked with collecting the debt owed to the Department of Human Services when Temporary Assistance for Needy Families (TANF) benefits are paid for the benefit of any dependent child.  Because TANF is a federally funded program, the federal share of the collection is paid back to the federal government.  Furthermore, the federal share is maintained in a separate account and available for use by the CSEA as the federal matching funds when state funds are expended.  Your Committee further finds that in fiscal year 2016, the Department of Human Services received $4,996,455 from the CSEA.

     Your Committee notes the concerns raised by the Department of the Attorney General that identify the costs that CSEA would incur to implement this measure, as these costs have not been budgeted for.  These costs include a redesign of CSEA's statewide computer system and amendments to CSEA's reports to the federal government and Department of Human Services to accommodate the pass through payments.

     Because of these concerns, your Committee has amended this measure by:

     (1)  Inserting language that appropriates $400,000 to cover any costs incurred by the CSEA; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 801, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 801, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Human Services,

________________________________

JOSH GREEN, Chair