STAND. COM. REP. NO. 1448

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.R. No. 213
                                     




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.R. No. 213 entitled: 

     "HOUSE 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 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. 1448
                                 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.R. No. 213 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