STAND. COM. REP. NO. 2229

Honolulu, Hawaii

RE:    S.B. No. 2796

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Human Services, to which was referred S.B. No. 2796 entitled:

"A BILL FOR AN ACT RELATING TO DEATH BENEFITS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Make permanent the payment of a reduced lump-sum death benefit by the Department of Human Services for certain deceased medical and financial assistance recipients; and

     (2)  Establish that the Department of Human Services may bear the cost for crematory and mortuary services for unclaimed dead human bodies upon a determination by the Department that a human dead body is unclaimed.

     Your Committee received testimony in support of this measure from the Department of Human Services.  Your Committee received testimony in opposition to this measure from one individual.  Your Committee received comments on this measure from the Department of Health.

     Your Committee finds that pursuant to part II of Act 205, Session Laws of Hawaii 2010, the Department of Human Services is authorized to pay a lump-sum death benefit for a deceased medical and financial assistance recipient in a reduced amount, equal to the Social Security Administration's one-time lump-sum death benefit of $255 if the recipient is ineligible for the Social Security Administration's lump-sum death benefit.  Savings from this change in the death benefit was approximately $306,000 last year.  Your Committee also finds that Act 205, Session Laws of Hawaii 2010, has a repeal date of June 30, 2012.  This measure makes the reduced death benefit amount permanent, enabling the Department to realize necessary cost savings.

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2796 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

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

____________________________

SUZANNE CHUN OAKLAND, Chair