HB1176

SECTION 1. The legislature finds that Act 117, Session Laws of Hawaii 2022 (Act 117), appropriated funds to various state agencies for the development and maintenance of diversion, reentry, and rehabilitation services and programs within the State. More specifically, Act 117 appropriated funds to: the department of public safety for the purchase of identification card machines to provide documentation needed by inmates upon their release; the Hawaii paroling authority for the development and maintenance of community housing to support the reentry of parolees; and the department of health for a forensic peer specialist program to address needs of inmates having behavioral health, mental health, and substance abuse issues.

Although the enactment of Act 117 provided much-needed financial support for important programs and activities, the legislature also finds that funding for these programs and activities should continue. The legislature further finds that funding should be provided for a more comprehensive array of programs and services. The legislature believes that programs offering diversion, pre-release reentry support, and post-release reentry support, including family support and assistance, will lead to more successful rehabilitation outcomes and an overall reduction in recidivism rates.

Accordingly, the purpose of this Act is to appropriate funds for the development and maintenance of a comprehensive approach to successful incarcerated individual reentry and integration that will provide support to inmates during their incarceration and after their release.

SECTION 2. (a) To address the devastating impacts on the criminal justice system of the separation of mothers from their children, and to reduce the risk of multi-generational incarceration, there is established a pilot program to allow minor children to remain with their mothers while the mothers are participating in therapeutic, drug treatment, or other residential programs.

(b) The pilot program shall be administered by the judiciary. The judiciary may provide this supportive service as an incentive for mothers to complete therapeutic programs for their successful rehabilitation and, accordingly, is appropriated funds under section 6 of this Act.

SECTION 3. (a) To provide a comprehensive recidivism prevention program, there is established within the judiciary a five-year recidivism prevention pilot program. The program shall consist of three components to assist the reentry of program participants for two years following their release from a correctional facility: the housing voucher program; child care voucher program; and employer income tax credit program.

(b) A program participant shall be an individual:

(1) Who is a resident of Hawaii;

(2) Who exited from the women's community correctional center;

(3) Whose household income does not exceed eighty per cent of the area median income; and

(4) Who is employed and either:

(A) Works for twenty or more hours in a workweek; or

(B) Spends twenty or more hours per workweek working or participating in programs relating to education, substance abuse, or parenting.

(c) Housing voucher program. The housing voucher program shall provide program participants with housing vouchers on a first-come, first-served basis; provided that the program participant continues to satisfy the eligibility criteria in subsection (b); provided further that the aggregate amount of financial assistance provided under the pilot program has not reached the maximum amount established in subsection (f). Each housing voucher shall not exceed $ and shall be used for:

(1) Rent for the program participant's primary residence; or

(2) A down payment or mortgage payments for the program participant's primary residence; provided that the program participant shall not own, operate, or control any other residential real property.

(d) Child care voucher program. The child care voucher program shall provide program participants with child care vouchers on a first-come, first-served basis; provided that the program participant:

(1) Continues to satisfy the eligibility criteria in subsection (b);

(2) Has physical custody of a child; and

(3) Does not receive any child care subsidies;

provided further that the aggregate amount of financial assistance provided under the pilot program has not reached the maximum amount set forth in subsection (f). Each child care voucher shall not exceed $ per child and shall be used for payment of fees to a child care facility for providing services to the program participant's child.

(e) Employer income tax credit program. There shall be allowed to each taxpayer subject to the tax imposed by chapter 235, Hawaii Revised Statutes, a credit for employment of a qualified program participant-employee, which shall be deductible from the employer's net income tax liability, if any, imposed by chapter 235, Hawaii Revised Statutes, for the taxable year in which the credit is properly claimed; provided that:

(1) The program shall require from an employer who employs a qualified program participant-employee, an application for verification of employment of a qualified program participant-employee, in a form prescribed by the program;

(2) Upon verifying that the individual named in the application as a qualified program participant‑employee satisfies the criteria set forth in paragraph (7), the program shall:

(A) Issue a written verification of employment of a qualified program participant-employee to the employer-applicant; and

(B) Provide the department of taxation and department of labor and industrial relations with information on the employer and the qualified program participant-employee, and any other information deemed necessary by the department of taxation and department of labor and industrial relations to verify and apply the tax credit to the employer pursuant to this subsection;

(3) The tax credit allowed under this subsection shall be available to the employer for a period not to exceed two years after the date of the qualified program participant-employee's release from incarceration;

(4) The amount of the tax credit under this subsection for the taxable year shall be equal to the amount of contributions paid by the employer pursuant to section 383-61, Hawaii Revised Statutes, for the qualified program participant-employee. The department of labor and industrial relations shall provide the department of taxation with information deemed necessary by the department of taxation pertaining to the amount of contributions paid by the employer pursuant to section 383-61, Hawaii Revised Statutes, for the qualified program participant-employee;

(5) The tax credit allowed under this subsection shall be claimed against the employer's net income tax liability for the taxable year. A tax credit under this subsection that exceeds the employer's income tax liability may be used as a credit against the employer's income tax liability in subsequent years until exhausted;

(6) All claims for tax credits under this subsection, including any amended claims, shall be filed on or before the end of the twelfth month following the close of the taxable year for which the credits may be claimed. Failure to comply with the foregoing provision shall constitute a waiver of the right to claim the credit; and

(7) For the purposes of this subsection, "qualified program participant-employee" means an individual who:

(A) Is a Hawaii resident;

(B) Is eighteen years of age or older;

(C) Was released from incarceration during the two‑year period preceding the employer's filing of an application for verification of employment of the individual; and

(D) Works for the employer for twenty or more hours in a workweek.

(f) The aggregate monetary amount of vouchers provided by the State under subsections (c) and (d) to a program participant shall not exceed $30,000 for each fiscal year.

(g) The judiciary shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, and prescribe forms to be used by program participants, to carry out the purposes of this section; provided that rules and forms to carry out subsection (e) shall be adopted and prescribed by the department of taxation, in consultation with the judiciary, except as provided under subsection (e)(1).

(h) The judiciary shall submit a report of its findings and recommendations pertaining to the pilot program to the legislature no later than twenty days prior to the convening of the regular session of 2028. The report shall include:

(1) A record of pilot program activities and accomplishments;

(2) A recommendation on whether the pilot program should be continued, modified, or terminated, including whether the assistance under the pilot program should be extended to other correctional facilities; and

(3) Any proposed legislation.

(i) As used in this section:

"Child" means an unmarried individual who is under eighteen years of age. "Child" includes a biological, adopted, or foster child; a stepchild; and a legal ward.

"Child care facility" has the same meaning as in section 346-151, Hawaii Revised Statutes.

"Child care subsidy" has the same meaning as in section 346-151, Hawaii Revised Statutes.

"Pilot program" means the five-year recidivism prevention pilot program established pursuant to this section.

SECTION 4. (a) There is established within the department of public safety or its successor agency an offender reset program to oversee development and implementation of comprehensive pre- and post‑release programs to assist offenders who are transitioning back into the community.

(b) The offender reset program shall assist offenders in securing pre-release assistance in obtaining:

(1) Identification cards;

(2) Training and other assistance for post-release housing, including transitional housing and permanent housing;

(3) Medical and other services, as needed;

(4) Rehabilitation services; and

(5) Prospective employment.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the development and maintenance of the offender reset program established by section 4 of this Act, to support the reentry of, and rehabilitation services and programs for, offenders while they are in the custody and control of the department of public safety or its successor agency.

The sums appropriated shall be expended by the department of public safety or its successor agency for the purposes of section 4 of this Act.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the development and maintenance of diversion, reentry, and rehabilitation services and programs under the jurisdiction of the judiciary; provided that $ shall be available for diversion and other court services; provided further that $ or so much thereof as may be necessary shall be available for family support for mothers to remain with their minor children when in residential treatment programs; provided further that $ or so much thereof as may be necessary shall be expended for a five-year pilot recidivism prevention program that shall include full-time equivalent ( FTE) transition navigator positions exempt from chapter 76, Hawaii Revised Statutes, and shall include child care and housing vouchers; and provided further that housing vouchers exempt from chapter 91, Hawaii Revised Statutes, shall be obtained from the Hawaii public housing authority.

The sums appropriated shall be expended by the judiciary for the purposes of this section and sections 2 and 3 of this Act.

SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the further development and maintenance of community housing of parolees under the jurisdiction of the Hawaii paroling authority to support parolee reentry and rehabilitation.

The sums appropriated shall be expended by the Hawaii paroling authority for the purposes of this section.

SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for pre- and post- reentry coordination to assist inmates in successfully meeting their housing and other post-release needs.

The sums appropriated shall be expended by the department of human services for the purposes of this section.

SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 for the provision of health assessments and services, including but not limited to physical, mental, behavioral, substance addiction, and other services and programs required by inmates, both pre- and post- release, necessary for successful rehabilitation and reentry; provided that $ or so much thereof as may be necessary shall be allocated to the forensic peer specialist program established by Act 117, Session Laws of Hawaii 2022, to assess and treat incarcerated individuals having behavioral, mental, and substance abuse issues; and provided further that $ shall be available for health-related supportive services for mothers and their children when the mothers are participating in residential treatment programs.

The sums appropriated shall be expended by the department of health for the purposes of this section.

SECTION 10. The department of public safety or its successor agency, judiciary, Hawaii paroling authority, department of human services, and department of health shall each submit to the legislature, no later than twenty days prior to the convening of the regular session of 2025, a report of its respective findings and recommendations. Each report shall include the following information:

(1) The manner in which funds received pursuant to this Act have been expended;

(2) The particular service providers involved;

(3) The number of persons who have been served;

(4) A description of the services provided;

(5) Measurable outcomes; and

(6) Any proposed legislation.

SECTION 11. The appropriations made pursuant to sections 5, 6, 7, 8, and 9 of this Act shall not lapse at the end of the fiscal year for which the appropriations are made; provided that all moneys from the appropriations unencumbered as of June 30, 2025, shall lapse as of that date; provided further that the hiring of staff or technical assistance may be exempt, if needed, from chapter 76, Hawaii Revised Statutes; provided further that procurements executed pursuant to this Act shall be exempt from the requirements of chapters 103D and 103F, Hawaii Revised Statutes, but any exemptions shall not extend beyond June 30, 2025; and provided further that the tax credit under section 3(e) of this Act shall apply to taxable years beginning after December 31, 2023, and ending before January 1, 2026.

SECTION 12. This Act shall take effect on July 1, 2023.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1176
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII