HB 1097 -- PUBLIC ASSISTANCE ASSETS (Overschmidt)

This bill excludes the value of burial lots or amounts placed in
irrevocable prearranged funeral or burial contracts from being
considered as assets for the purpose of determining eligibility
for and the amount of benefits under federally aided public
assistance programs.  The bill further requires that, in
instances where the beneficiary of such contracts receives
public assistance, any refund due as a result of cancellation or
modification of the contract by the contract purchaser, or
purchaser's successors, must be paid to the state up to the
amount of public assistance benefits provided.

FISCAL NOTE:  Estimated Partial Effect on General Revenue Fund
is Unknown for FY 1997, FY 1998, and FY 1999.  Unknown savings
expected to be less than $100,000 annually.

HB 1097 -- PUBLIC ASSISTANCE ASSETS

SPONSOR:  Overschmidt

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Social Services, Medicaid and the Elderly by a vote of 12 to
0.

This bill excludes the value of burial lots or amounts placed in
irrevocable prearranged funeral or burial contracts from being
considered as assets for the purpose of determining eligibility
for and the amount of benefits under federally aided public
assistance programs.  The bill further requires that, in
instances where the beneficiary of such contracts receives
public assistance, any refund due as a result of cancellation or
modification of the contract by the contract purchaser, or
purchaser's successors, must be paid to the state up to the
amount of public assistance benefits provided.

FISCAL NOTE:  Estimated Partial Effect on General Revenue Fund
is $0 for FY 1997, FY 1998, and FY 1999.

PROPONENTS:  Supporters say that this bill encourages families
to be responsible and to make long-term plans without the worry
of losing public assistance benefits.

Testifying for the bill were Representative Overschmidt; and
Missouri Funeral Directors' Association.

OPPONENTS:  There was no opposition voiced to the committee.

Debra Cheshier, Senior Legislative Analyst

HB 1097 -- Public Assistance Assets

Sponsor:  Overschmidt

This bill excludes the value of burial lots or amounts placed in
irrevocable prearranged funeral or burial contracts from being
considered as assets for the purpose of determining eligibility
for and the amount of benefits under federally aided public
assistance programs.  The bill further requires that, in
instances where the beneficiary of such contracts receives
public assistance, any refund due as a result of cancellation or
modification of the contract by the contract purchaser, or
purchaser's successors, must be paid to the state up to the
amount of public assistance benefits provided.