STAND. COM. REP. NO. 2716

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2857
                                        S.D. 1




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 S.B.
No. 2857, 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 give the Department of Human
Services a right of recovery for attorney fees and costs when the
Department actively participates in pursuing a claim.

     Under certain circumstances, a claimant who is pursuing a
payment obligation against a third person under section 346-37,
Hawaii Revised Statutes, may give the Department of Human
Services notice of that claim.  The Department may choose whether
to join in prosecuting the claim.  If it does not and the
claimant is successful, then the Department is required to
contribute to the claimant's attorney fees.  Only if the
Department intervenes, joins in the action, or prosecutes its own
claim does the Department escape the liability to contribute to
the attorney fees and costs.

     While a successful claimant is entitled to obtain
contributions for attorney fees and costs, the statute is silent
as to the Department's right to do so when the Department
prosecutes or joins in the action.  Your Committee finds that it
is appropriate to allow the Department to also be eligible to
recover its attorneys' fees and costs under these circumstances.


 
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                                   STAND. COM. REP. NO. 2716
                                   Page 2


     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 S.B. No.
2857, S.D. 1, and recommends that it pass Third Reading.

                                 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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