STAND. COM. REP. NO. 2039

Honolulu, Hawaii

RE: S.B. No. 2150

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred S.B. No. 2150 entitled:

"A BILL FOR AN ACT RELATING TO TEMPORARY ASSISTANCE FOR NEEDY FAMILIES,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Department of Human Services to provide housing assistance subsidies of up to $500 per month to temporary assistance for needy families (TANF) and temporary assistance for other needy families (TAONF) program participants who are also participating in the First-to-Work program.

Your Committee received testimony in support of this measure from the Governor's Coordinator on Homelessness, Department of Human Services, County of Maui Department of Housing and Human Concerns, Catholic Charities Hawai‘i, HOPE Services Hawai‘i, Hawai‘i Health and Harm Reduction Center, Hawai‘i Children's Action Network Speaks!, Hawai‘i Budget and Policy Center, and Partners in Care. Your Committee received comments on this measure from the State Procurement Office and Department of Budget and Finance.

Your Committee finds that as of December 2021, there was an average of 4,547 families participating in the TANF program, a federally-funded financial assistance program designed to help families in need achieve self-sufficiency; and 1,127 families participating in the TAONF program, a state-funded program that mirrors TANF and is designed to assist Hawaii families with minor children who are not eligible to receive TANF program benefits due to their citizenship. According to the Department of Human Services, eighty-two percent of TANF recipients and eighteen percent of TAONF recipients participated in the First-to-Work program, which, in addition to assisting the recipient families in obtaining employment, also provides housing allowances to participating families.

Your Committee finds that nearly one-third of households in Hawaii who rent their homes spend over half of their monthly income on rent and utilities. As housing prices continue to skyrocket, your Committee believes that low-income families participating in the First-to-Work program will likely require assistance to meet their housing costs; however, the program currently lacks the funds to accommodate this critical need. Your Committee therefore finds that this measure is necessary to address a key barrier to housing for many low-income families in Hawaii, including those experiencing homelessness or are at risk of homelessness.

Your Committee has reviewed the written testimony of the Department of Budget and Finance expressing concerns regarding this measure's possible effect on the State's obligation to adhere to the maintenance of effort requirements as a recipient of Elementary and Secondary Schools Emergency Relief funds under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 and the American Recovery Plan Act of 2021. Your Committee finds that this issue raises concerns that merit further consideration and respectfully requests that your Committee on Ways and Means further examine those issues and concerns raised by the testimonies on this measure.

Your Committee has amended this measure by:

(1) Inserting an appropriation amount of $3,557,520 necessary for fiscal year 2022-2023 to fund the housing assistance subsidies for the TAONF program from the general revenues of the State;

(2) Inserting an appropriation amount of $16,206,480 necessary for fiscal year 2022-2023 to fund the housing assistance subsidies for TANF program participants from the federal funds received by the State;

(3) Inserting an appropriation amount of $200,000 necessary for the Department of Human Services to make enhancements to its case management and payment system to implement this measure;

(4) Inserting an effective date of December 1, 2050, to encourage further discussion; and

(5) 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 S.B. No. 2150, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2150, 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,

________________________________

JOY A. SAN BUENAVENTURA, Chair