STAND. COM. REP. NO. 540

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 1108

       S.D. 2

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 1108, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to assist low- and moderate-income families with asset-building.

 

     Specifically, this measure clarifies guidelines, and appropriates funding, for Individual Development Accounts.

 

     Your Committee received written comments in opposition to this measure from one individual.  Patricia McManaman, Interim Director, Department of Human Services commented on the measure.

 

     Your Committee finds that the accumulation of financial assets, including cash savings, stocks, bonds, and home and business equity, helps Hawaii residents better achieve their financial goals, such as purchasing a home or starting a small business.

 

     Your Committee further finds that Individual Development Accounts match the deposits of low- and moderate-income account holders, bringing them closer to their goals.  While there is no shortage of families interested in Individual Development Account programs, these programs lack the matching funds to support them.  Appropriating funds to Individual Development Account programs will enable low- and moderate-income families to save and build their financial assets.

 

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

 

     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. 1108, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1108, S.D. 2.

 

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

 

 

 

____________________________

DAVID Y. IGE, Chair