STAND. COM. REP. NO. 2365

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2855
                                        S.D. 1




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

Sir:

     Your Committee on Health and Human Services, to which was
referred S.B. No. 2855 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to clarify the rights of the
Department of Human Services (DHS) in probate to the priority of
payments from the estate.

     Your Committee received oral testimony in support of this
measure from the DHS.

     This measure provides that if the assets of the estate are
insufficient to pay all claims in full, then the DHS 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.

     This measure is intended as a means by which the State can
recoup the moneys it has paid for a person's last illness medical
expenses and burial.  Your Committee finds that last illness and
burial expenses can be substantial and that the State should try

 
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to collect as much as it can from available assets for this
purpose.

     Your Committee has amended this measure by making technical,
nonsubstantive changes to reflect preferred drafting style.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2855, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2855,
S.D. 1, and be referred to the Committee on Ways and Means.

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



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
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