STAND. COM. REP. NO. 971-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2856
                                     S.D. 1
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Judiciary and Hawaiian Affairs, to which
was referred S.B. No. 2856, 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 law governing
Department of Human Services liens under section 346-29.5, Hawaii
Revised Statutes.

     Testimony in support of this bill was provided by the
Department of Human Services.

     The intended effect of this measure is to:

     (1)  clarify that the duty to "update" refers to the
          department's internal accounting and tracking
          procedures, rather than to recordation or filing in the
          Bureau of Conveyances or Land Court;

     (2)  eliminate doubt as to the authority of the department,
          as creditor, to initiate probate proceedings; and 

     (3)  indicate that sections (c) and (d) of HRS �346-29.5
          apply both to liens that arise by agreement between the
          department and an applicant for assistance pursuant to
          HRS �346-29.5(a) and to liens based on department
          initiatives pursuant to HRS �346-29.5(b).

 
 
                                 STAND. COM. REP. NO. 971-00
                                 Page 2

 
     Your Committee has amended this bill by referring to "liens"
in sections (c) and (d) of HRS �346-29.5.  The reference to
"liens" rather than "lien" is intended to clarify that the
provisions of HRS �346-29.5(c) and (d) apply, whether the lien
arose under section (a) and (b) of HRS �346-29.5.  The bill as
drafted would have added "agreement or" to "the lien shall
attach" and "priority of the lien," resulting in such language as
"the agreement or lien shall attach" and "priority of the
agreement or lien."  

     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 2856, S.D. 1, as amended herein, and
recommends that it be referred to the Committee on Finance, in
the form attached hereto as S.B. No. 2856, S.D. 1, H.D. 1.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   ERIC G. HAMAKAWA, Chair