Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Human Services and Housing, to which was referred H.B. No. 638 entitled:

begs leave to report as follows:

The purpose of this bill is to clarify that:

1. The requirement that the Department of Human Services (DHS) file an annual update of its liens with the Bureau of Conveyances is an internal departmental accounting measure intended to track DHS expenditures;
2. DHS may initiate probate proceedings to enforce a lien against the estate of a recipient; and
3. Recording and tracking procedures apply to both types of DHS liens, specifically real estate liens on the interest of:

1. A person applying for or receiving assistance from DHS; and
2. A medical assistance recipient who is an inpatient of a medical institution.

Testimony in support of this measure was submitted by DHS.

Your Committee finds that there is a clerical burden on DHS and the Bureau of Conveyances to annually update lien amounts, prepare notices of lien, and file and record the lien. Not only will this measure reduce redundant work, it will also enable DHS to recover its claims or interests. This will alleviate the financial burden imposed on the public for the operations of assistance programs.

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 is in accord with the intent and purpose of H.B. No. 638 and recommends that it pass Second Reading and be referred to the Committee on Finance.