STAND. COM. REP. NO. 2376

Honolulu, Hawaii

RE: S.B. No. 2238

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Housing and Government Operations, to which was referred S.B. No. 2238 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to establish the procedures for a housing savings account system for all employees in the State.

Your Committees received testimony in support of this measure from one individual. Your Committees received testimony in opposition to this measure from one individual. Your Committees received comments on this measure from the Department of Budget and Finance, Hawaii Government Employees Association, and Tax Foundation of Hawaii.

Your Committees find that many residents of the State lack the needed funds to afford housing in Hawaii. A housing savings account system would support those residents by providing a stable and consistent source of funds to purchase housing. This measure establishes a housing savings account system that includes contributions for employers and employees. However, your Committees received testimony from the Department of Budget and Finance, which recommended that, instead of moving forward with enacting the housing savings account system, a thorough study should first be conducted by the Legislative Reference Bureau. Your Committees also note that concerns were raised about whether independent contractors should also be included in the housing savings account system, and the possibility that accumulated savings may disqualify some individuals from participating in government-subsidized public housing programs.

Accordingly, your Committees have amended this measure by:

(1) Replacing the contents of section 1 with language directing the Legislative Reference Bureau to conduct a study of a housing savings account system and requiring it to report its findings and recommendation to the Legislature; and

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

As affirmed by the records of votes of the members of your Committees on Housing and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2238, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2238, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Housing and Government Operations,

________________________________ SHARON MORIWAKI, Chair

________________________________ STANLEY CHANG, Chair