STAND. COM. REP. NO. 1449

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.C.R. No. 243
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Human Services and Housing, to which was
referred H.C.R. No. 243 entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING A STUDY EVALUATING
     ALTERNATIVE FUNDING FOR AUTOMOBILE INSURANCE COVERAGE FOR
     PUBLIC ASSISTANCE RECIPIENTS,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to determine
whether the State's policy to fund automobile insurance coverage
for public assistance recipients is financially sound by
requesting the Department of Human Services (DHS), in cooperation
with the Insurance Commissioner, to conduct a study evaluating
alternative funding for automobile insurance coverage for public
assistance recipients.

     DHS testified in support of this measure stating that DHS
believes that the current system may be the most cost effective
for DHS and the State.  Additionally, DHS questioned how its
participation could cause an increase in cost, since the decision
to remove the entire medical-only assistance group from this
benefit has significantly decreased the number of those eligible
for free no-fault insurance.  The Department of Commerce and
Consumer Protection submitted comments.

     Your Committee believes that a study is necessary to justify
DHS's conclusions.


 
 
 
                                 STAND. COM. REP. NO. 1449
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Human Services and Housing that is attached to this
report, your Committee concurs with the intent and purpose of
H.C.R. No. 243 and recommends that it be referred to the
Committee on Consumer Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Human Services
                                   and Housing,



                                   ______________________________
                                   DENNIS A. ARAKAKI, Chair