Report Title:

Welfare Payments; Standard of Need

Description:

Increases standard of need from the 1993 federal poverty level to an annually updated poverty level for the current year. Includes the general assistance (GA) and aged, blind, and disabled programs for the calculation. Removes limitation on making GA payments only from total appropriations made for GA.

THE SENATE

S.B. NO.

475

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to public assistance.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that, as the cost of living increases each year, the standard of need in Hawaii, which is based on the federal poverty level for the State, is not adjusted to reflect this increase and is still based on the federal poverty level in 1993. The legislature also finds that the medically needy income standard is based on the standard of need for the State and is adjusted when the standard of need payment is changed. The purpose of this Act is to adjust the State's standard of need by annually updating it to reflect the federal poverty level for Hawaii. It is the intent of the legislature that the medically needy income standard also be adjusted to reflect the annual standard of need for the State.

SECTION 2. Section 346-53, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) This subsection [does not] shall also apply to general assistance to households without minor dependents[.] and to assistance to the aged, blind, and disabled. The standard of need for families of given sizes shall equal the poverty level established by the federal government [in 1993,] for the current year, which shall be updated annually, prorated over a twelve-month period.

The assistance allowance provided shall be based on a percentage of the standard of need. For exempt households and households in which all caretaker relatives are minors, living independently with minor dependents and attending school, the assistance allowance shall be set at sixty-two and one-half per cent of the standard of need. For all other households, the assistance allowance shall be set no higher than sixty-two and one-half per cent of the standard of need and set no lower than fifty per cent of the standard of need. The standard of need shall be determined by dividing the [1993] annually updated current federal poverty level by twelve and rounding down the quotient. The remaining quotient shall be multiplied by the per cent as set by the director by rules pursuant to chapter 91 and the final product shall be rounded down to determine the assistance allowance; provided that:

(1) The department may increase or reduce the assistance allowance as determined in this subsection for non-exempt households for the purpose of providing work incentives or services under part XI [of this chapter];

(2) No reduction shall be allowed that jeopardizes eligibility for or receipt of federal funds;

(3) Reductions in the assistance allowance shall be limited to no more than one per year; and

(4) No non-exempt household, which includes an adult who has received sixty cumulative months of temporary assistance to needy families with minor dependents, shall be eligible for an assistance allowance, unless authorized by federal regulations.

(b) The director shall determine the allowance for general assistance to households without minor dependents based upon the [total amount appropriated for general assistance to households without minor dependents,] standard of need, among other relevant factors."

SECTION 3. Section 346-71, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) Within the limitations of this section, the department [shall] by rules adopted pursuant to chapter 91, shall determine:

(1) The allowance for general assistance to households without minor dependents based upon the [total amount appropriated for general assistance to households without minor dependents;] standard of need;

(2) A method for determining assistance amounts; and

(3) Other necessary provisions to implement general assistance to households without minor dependents."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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