STAND. COM. REP. NO. 1535

Honolulu, Hawaii

, 2019

RE: S.B. No. 1310

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 1310, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INDIVIDUAL HOUSING ACCOUNTS,"

begs leave to report as follows:

The purpose of this measure is to establish the Individual Housing Accounts Savings Program to facilitate more robust and effective use of existing Individual Housing Accounts. Specifically, this measure:

(1) Establishes the Individual Housing Accounts Savings Board and Individual Housing Accounts Savings Program Administrative Fund;

(2) Assesses a ten percent penalty on withdrawals from an Individual Housing Account made less than one year from the date of deposit;

(3) Expands qualifying purposes for which an Individual Housing Account may be used;

(4) Permits a taxpayer to open an Individual Housing Account for a dependent upon the birth of the dependent and to realize the tax benefits for contributions to the Account;

(5) Requires the Director of Taxation to establish rules; and

(6) Appropriates funds into the Individual Housing Accounts Savings Program Administrative Fund for administrative and operating expenses of the Individual Housing Accounts Savings Board.

An individual testified in support of this measure. The Department of Budget and Finance, Department of Taxation, and Tax Foundation of Hawaii provided comments.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1310, S.D. 2, H.D. 1, and recommends that it be referred to your Committee on Finance.

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

____________________________

CHRIS LEE, Chair