STAND. COM. REP. NO. 3354

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2514
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 2514, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO PUBLIC ASSISTANCE,"

begs leave to report as follows:

     The purpose of this bill is to clarify the priority of
claims of the Department of Human Services to the estates of
certain recipients of burial services or medical assistance.

     The bill specifies that if the assets of the recipient's
estate are insufficient to pay all claims in full, then the
Department is:

     (1)  Second in line for payment of burial expenses;

     (2)  Fourth in line for payment of last illness expenses of
          the decedent; and

     (3)  Sixth in line for any other claim against the estate
          for payments relating to social services or medical
          assistance payments.

     Your Committee finds that this bill will facilitate the
recovery of public funds that the Department of Human Services
expends on deceased recipients by clarifying both the

 
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                                   STAND. COM. REP. NO. 3354
                                   Page 2


Department's interests in the estate of deceased recipients and
the procedure for asserting claims.

     Your Committee has amended this bill by replacing the
reference to section "346-37" with "346-15" in the amendment in
section 2 of the bill to section 560:3-805(a)(2), Hawaii Revised
Statutes.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2514, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 2514, S.D.
2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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