| 47 | | - | SECTION 1. The legislature finds that intergenerational poverty undermines social and economic wellness. According to the 2009 paper, "Childhood and Intergenerational Poverty: The Long-Term Consequences of Growing up Poor", "individuals who grow up in poor families are much more likely to be poor in early adulthood. Moreover, the chances of being poor in early adulthood increase sharply as the time spent living in poverty during childhood increases." The legislature further finds that Hawaii's high cost of living makes overcoming intergenerational poverty difficult for working families. According to the National Low Income Housing Coalition's 2024 Out of Reach study, a minimum wage employee in Hawaii must work almost one hundred hours per week to afford a one-bedroom rental home at fair market rent. The study also found that a worker must earn $44.60 per hour to afford a two‑bedroom rental unit without being cost burdened. The Massachusetts Institute of Technology's living wage calculator estimates that in Hawaii, a livable wage for a single working adult with no children is $27.33 per hour, while a livable wage for a single working adult with one child is $51.83 per hour. The legislature additionally finds that long-standing systemic inequality and its continued effect on government policy has deeply impacted the well-being of children in communities of color, including Native Hawaiians and other Pacific Islanders, African Americans, Hispanics, American Indians, Alaska Natives, Asian Americans, immigrant households, and children living in the United States territories. Impacts on these households were further exacerbated by the coronavirus disease 2019 pandemic and its economic fallout. The legislature also finds that in 2021, Connecticut became the first state to pass an initiative that invests directly in children born into poverty, known as baby bonds. The program sets aside funds for each baby born in Connecticut whose birth is covered by medicaid. The funds are held, managed, and invested by the Connecticut Office of the Treasurer and when participating children reach adulthood, they will be eligible to claim the funds, which can be used to purchase a home, pay for higher education or job training, start a business, or save for retirement. Connecticut's baby bonds program is designed to narrow the wealth gap and spur long-term economic growth for Connecticut's families and economy. The legislature therefore believes that establishing a similar baby bonds initiative in Hawaii could help alleviate intergenerational poverty and wealth inequality in the State. Accordingly, the purpose of this Act is to establish a working group to develop a plan for the creation of a baby bonds program in the State. SECTION 2. (a) There is established a wealth building working group within the department of human services for administrative purposes. (b) The working group shall: (1) Develop recommendations for a baby bonds program that reduces intergenerational poverty and wealth inequality in the State; (2) Suggest eligibility criteria for a baby bonds program operated by the State; (3) Coordinate with other stakeholders, agencies, and programs within and outside the State that are working to implement baby bonds programs or reduce intergenerational poverty; (4) Perform an analysis of the Connecticut baby bonds program and other asset-building programs, such as the individual development account program authorized under chapter 257, Hawaii Revised Statutes, and Hawaii's college savings program, the HI529 Plan, to determine what aspects of the program may be beneficial to incorporate into a baby bonds initiative in the State; and (5) Estimate the costs of creating a baby bonds program facilitated by the State. (c) The working group shall consist of the following individuals: (1) The director of human services, or the director's designee, who shall serve as chairperson of the working group; (2) The director of finance, or the director's designee; (3) The executive director of the Hawaii state commission on the status of women, or the executive director's designee; (4) One member of the senate, to be appointed by the senate president; (5) One member of the house of representatives, to be appointed by the speaker of the house of representatives; (6) One representative from a nonprofit, public interest organization that specializes in advocacy for children, as selected by the chairperson; (7) One representative from a nonprofit, public interest organization that advocates on behalf of low-income individuals and families in Hawaii on issues of statewide importance, as selected by the chairperson; and (8) Other interested parties with experience in economic health, child welfare, or finance that the chairperson deems relevant to the purposes of the working group, as invited by the chairperson. (d) The members of the working group shall serve without compensation but shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties. (e) The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026. (f) The working group shall cease to exist on July 1, 2026. SECTION 3. This Act shall take effect on July 1, 3000. |
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| 47 | + | SECTION 1. The legislature finds that intergenerational poverty undermines social and economic wellness. According to the 2009 paper, Childhood and Intergenerational Poverty: The Long-Term Consequences of Growing up Poor, "individuals who grow up in poor families are much more likely to be poor in early adulthood. Moreover, the chances of being poor in early adulthood increase sharply as the time spent living in poverty during childhood increases." The legislature further finds that Hawaii's high cost of living makes overcoming intergenerational poverty difficult for working families. According to the National Low Income Housing Coalition's 2024 Out of Reach study, a minimum wage employee in Hawaii must work almost one hundred hours per week to afford a one-bedroom rental home at fair market rent. The study also found that a worker must earn $44.60 per hour to afford a two‑bedroom rental unit without being cost burdened. The Massachusetts Institute of Technology's living wage calculator estimates that in Hawaii, a livable wage for a single working adult with no children is $27.33 per hour, while a livable wage for a single working adult with one child is $51.83 per hour. The legislature additionally finds that longstanding systemic inequality and its continued effect on government policy has deeply impacted the well-being of children in communities of color, including Native Hawaiians and other Pacific Islanders, African Americans, Hispanics, American Indians, Alaska Natives, Asian Americans, immigrant households, and children living in the United States territories. Impacts on these households were further exacerbated by the COVID-19 pandemic and its economic fallout. The legislature also finds that in 2021, Connecticut became the first state to pass an initiative that invests directly in children born into poverty, known as baby bonds. The program sets aside funds for each baby born in Connecticut whose birth is covered by medicaid. The funds are held, managed, and invested by the Connecticut Office of the Treasurer and when participating children reach adulthood, they will be eligible to claim the funds, which can be used to purchase a home, pay for higher education or job training, start a business, or save for retirement. Connecticut's baby bonds program is designed to narrow the wealth gap and spur long-term economic growth for Connecticut's families and economy. The legislature therefore believes that establishing a similar baby bonds initiative in Hawaii could help alleviate intergenerational poverty and wealth inequality in the State. Accordingly, the purpose of this Act is to establish a working group to develop a plan for the creation of a baby bonds program for the State. SECTION 2. (a) There is established a baby bonds working group within the department of human services for administrative purposes. (b) The working group shall: (1) Develop recommendations for a baby bonds program that reduces intergenerational poverty and wealth inequality in the State; (2) Suggest eligibility criteria for a baby bonds program operated by the State; (3) Coordinate with other stakeholders, agencies, and programs within and outside the State that are working to implement baby bonds programs or reduce intergenerational poverty; (4) Perform an analysis of the Connecticut baby bonds program to determine what aspects of the program may be beneficial to incorporate into a baby bonds initiative for the State; and (5) Estimate the costs of creating a baby bonds program facilitated by the State. (c) The working group shall consist of the following individuals: (1) The director of human services or the director's designee, who shall serve as chairperson of the working group; (2) The director of finance, or the director's designee; (3) The executive director of the Hawaii state commission on the status of women, or the executive director's designee; (4) One member of the senate, to be appointed by the president of the senate; (5) One member of the house of representatives, to be appointed by the speaker of the house of representatives; (6) One representative from a nonprofit, public interest organization that specializes in advocacy for children, as selected by the chairperson; (7) One representative from a nonprofit, public interest organization that advocates on behalf of low-income individuals and families in Hawaii on issues of statewide importance, as selected by the chairperson; and (8) Other interested parties with experience in economic health, child welfare, or finance that the chairperson deems relevant to the purposes of the working group, as invited by the chairperson. (d) The members of the working group shall serve without compensation but shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties. (e) The working group shall submit a report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026. (f) The working group shall cease to exist on July 1, 2026. SECTION 3. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________ |
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