STAND. COM. REP. NO. 1122

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1375

       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 H.B. No. 1375, S.D. 1, entitled:

 

"A BILL FOR AN ACT RELATING TO HUMAN SERVICES,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to require the financial assistance advisory council to assist the Department of Human Services in restructuring the welfare payment systems.

 

      More specifically, this measure requires the financial assistance advisory council to:

 

     (1)  Revise the welfare payment structure to incentivize recipients to seek higher paying jobs without losing welfare benefits;

 

     (2)  Explore other possible methods to incentivize welfare recipients to achieve financial self-sufficiency; and

 

     (3)  Submit a report of findings and recommendations to the Legislature.

 

     Your Committee received written comments in support of this measure from the Department of Human Services and one individual.

 

     Your Committee finds that the current welfare payment structure provides a strong disincentive for welfare recipients to seek higher paying jobs because of the fear of losing their beneficiary status, thus perpetuating their financial dependence on the welfare system.  A restructuring of the current welfare payment system would enable more people to slowly gain financial independence without losing their beneficiary status and encourage recipients to strive for higher paying employment.

 

     Your Committee has amended this measure by:

 

(1)  Changing the term "qualifying recipient" to "recipient" for consistency;

 

(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 clarity, consistency, 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 H.B. No. 1375, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1375, S.D. 2.

 

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

 

 

 

____________________________

DAVID Y. IGE, Chair