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HB324
HOUSE OF REPRESENTATIVES
H.B. NO.
324
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
relating to baby bonds
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
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The legislature finds that
intergenerational poverty undermines social and economic wellness.
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According to the 2009 paper, Childhood and
Intergenerational Poverty:
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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.
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Moreover, the chances of being poor in early
adulthood increase sharply as the time spent living in poverty during childhood
increases."
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The
legislature further finds that Hawaii's high cost of living makes overcoming
intergenerational poverty difficult for working families.
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According to the National Low Income Housing
Coalition's 202
4
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.
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The study also
found that a worker must earn $4
4
.
60
per hour to afford a two‑bedroom
rental unit without being cost burdened.
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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 $2
7
.
33
per hour, while a livable wage for a
single working adult with one child is $
51
.
83
per hour.
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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.
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Impacts on these households
were further exacerbated by the COVID-19 pandemic and its economic fallout.
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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.
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The program sets aside funds
for each baby born in Connecticut whose birth is covered by medicaid.
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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.
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Connecticut's baby
bonds program is designed to narrow the wealth gap and spur long-term economic
growth for Connecticut's families and economy.
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The
legislature therefore believes that establishing a similar baby bonds
initiative in Hawaii could help alleviate intergenerational poverty and wealth
inequality in the State.
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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.
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SECTION
2.
�
(a)
�
There is established a baby bonds working group within the department of
human services for administrative purposes.
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(b)
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The working group shall:
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(1)
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Develop recommendations for a baby bonds
program that reduces intergenerational poverty and wealth inequality in the
State;
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(2)
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Suggest eligibility criteria for a baby bonds
program operated by the State;
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(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;
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(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
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(5)
�
Estimate the costs of creating a baby bonds
program facilitated by the State.
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(c)
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The working group shall consist of the
following individuals:
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(1)
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The director of human services or the
director's designee, who shall serve as chairperson of the working group;
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(2)
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The director of finance, or the director's
designee;
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(3)
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The executive director of the Hawaii state
commission on the status of women, or the executive director's designee;
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(4)
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One member of the senate, to be appointed by
the president of the senate;
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(5)
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One member of the house of representatives, to
be appointed by the speaker of the house of representatives;
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(6)
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One representative from a nonprofit, public
interest organization that specializes in advocacy for children, as selected by
the chairperson;
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(7)
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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
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(8)
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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.
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(d)
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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.
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(e)
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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 202
6
.
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(f)
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The working group shall cease to exist on
July 1, 202
6
.
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SECTION 3.
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This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
Report Title:
Baby
Bonds; Working Group; Baby Bonds Program
Description:
Establishes
the Baby Bonds Working Group to develop a plan for the creation of a baby bonds
program for the State to address intergenerational poverty and wealth
inequality in Hawaii.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.