HF 2327

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to crime; requiring inmates committed to the 
  1.3             custody of the commissioner of corrections to apply 
  1.4             their assets toward the cost of their care; creating 
  1.5             provisions to prevent impoverishment of an innocent 
  1.6             spouse; permitting certain transfers of assets and 
  1.7             prohibiting other transfers of assets; providing 
  1.8             criminal penalties for prohibited transfers; proposing 
  1.9             coding for new law in Minnesota Statutes, chapter 243. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [243.214] [DEFINITIONS.] 
  1.12     (a) For the purposes of sections 243.215 to 243.218, the 
  1.13  following terms have the meaning given them. 
  1.14     (b) "Asset" means cash and other personal property, as well 
  1.15  as any real property, that an inmate or inmate's spouse owns 
  1.16  that has monetary value. 
  1.17     (c) "Commissioner" means the commissioner of corrections. 
  1.18     (d) "Inmate expenses" means the cost of the inmate's room, 
  1.19  board, clothing, medical, dental, and other correctional 
  1.20  services. 
  1.21     (e) "Inmate obligations" means an inmate's obligation to 
  1.22  pay taxes related to an inmate's assets; repayment of advances; 
  1.23  gate money as provided in section 243.24; support of families 
  1.24  and dependent relatives of the respective inmate; court-ordered 
  1.25  restitution; inmate expenses; and fines, surcharges, or other 
  1.26  fees assessed or ordered by a court. 
  1.27     Sec. 2.  [243.215] [ASSETS TO BE USED TO SATISFY INMATE 
  2.1   OBLIGATIONS.] 
  2.2      Subdivision 1.  [AUTHORITY TO PROMULGATE RULES.] The 
  2.3   commissioner of corrections shall promulgate rules to evaluate 
  2.4   both the assets available to an inmate at the time the inmate is 
  2.5   committed to the commissioner's custody and the assets that may 
  2.6   become available to an inmate during the inmate's incarceration; 
  2.7   determine the portion of these assets that are, or will become, 
  2.8   available to pay inmate obligations; and develop procedures and 
  2.9   methodologies, consistent with sections 243.214 to 243.218, to 
  2.10  apply these assets toward inmate obligations. 
  2.11     Subd. 2.  [INMATE OBLIGATIONS.] (a) The assets of an inmate 
  2.12  that are available at the time the inmate is committed to the 
  2.13  commissioner's custody shall be used to satisfy inmate 
  2.14  obligations in the following order of priority: 
  2.15     (1) any requirement for an inmate to pay taxes related to 
  2.16  an inmate's assets; 
  2.17     (2) repayment of advances; 
  2.18     (3) gate money as provided in section 243.24; 
  2.19     (4) support of families and dependent relatives of the 
  2.20  respective inmate; 
  2.21     (5) court-ordered restitution; 
  2.22     (6) inmate expenses; and 
  2.23     (7) fines, surcharges, or other fees assessed or ordered by 
  2.24  a court. 
  2.25     Court-ordered restitution includes restitution ordered by 
  2.26  the court as a sanction for the conviction of any offense, 
  2.27  including offenses which occurred prior to the offense for which 
  2.28  the inmate was committed to the commissioner's custody. 
  2.29     If an inmate's assets are insufficient to satisfy all 
  2.30  inmate obligations, the commissioner of corrections may take 
  2.31  deductions from an inmate's earnings or compensation, as 
  2.32  provided in section 241.26, subdivision 5, or 243.23, 
  2.33  subdivision 3. 
  2.34     (b) If additional assets become available to the inmate 
  2.35  during the time the inmate is committed to the commissioner's 
  2.36  custody, these assets may be used to satisfy inmate obligations, 
  3.1   as provided in paragraph (a). 
  3.2      Sec. 3.  [243.216] [EXCLUDED ASSETS.] 
  3.3      Subdivision 1.  [HOMESTEAD.] The inmate's homestead shall 
  3.4   be excluded from the assets available to satisfy inmate 
  3.5   obligations if the homestead is used as a primary residence by 
  3.6   one of the following individuals and that individual was not 
  3.7   convicted for any crime arising out of the same set of 
  3.8   circumstances as the crime for which the inmate was committed to 
  3.9   the commissioner's custody: 
  3.10     (1) the inmate's spouse; 
  3.11     (2) an inmate's child under age 21; or 
  3.12     (3) an inmate's child of any age who is blind or 
  3.13  permanently and totally disabled as defined in the supplemental 
  3.14  security income program. 
  3.15     Subd. 2.  [ASSET LIMITATIONS.] The assets available to 
  3.16  satisfy inmate obligations do not include an inmate's individual 
  3.17  assets up to $3,000, or if the inmate is a member of a household 
  3.18  with two family members, husband and wife, or parent and child, 
  3.19  the household may have assets up to $6,000, plus $200 for each 
  3.20  additional legal dependent.  In addition to these maximum 
  3.21  amounts, an eligible individual or family may accrue interest on 
  3.22  these amounts, but any amount over these maximum amounts at the 
  3.23  time the inmate is committed to the commissioner's custody must 
  3.24  be considered as assets available for satisfaction of inmate 
  3.25  obligations.  The value of assets that are not considered in 
  3.26  determining an inmate's assets for the purpose of satisfying 
  3.27  inmate obligations is the value of those assets excluded under 
  3.28  the AFDC state plan in effect on July 16, 1996, with the 
  3.29  following exceptions: 
  3.30     (1) household goods and personal effects are not considered 
  3.31  to the extent they are only available to a community spouse; 
  3.32     (2) capital and operating assets of a trade or business 
  3.33  that the local agency determines are necessary to the inmate's 
  3.34  spouse to earn an income are not considered; and 
  3.35     (3) motor vehicles are excluded to the same extent they are 
  3.36  excluded by the supplemental security income program to the 
  4.1   extent they are only available to a community spouse.  
  4.2      "Community spouse" has the meaning given in section 
  4.3   243.217, subdivision 1, paragraph (b). 
  4.4      "AFDC" means aid to families with dependent children. 
  4.5      Sec. 4.  [243.217] [TREATMENT OF ASSETS WHEN INMATE SPOUSE 
  4.6   IS COMMITTED TO COMMISSIONER'S CUSTODY.] 
  4.7      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  4.8   section, the terms defined in this subdivision have the meanings 
  4.9   given them. 
  4.10     (b) "Community spouse" means the spouse of an inmate spouse 
  4.11  and a spouse who has not been convicted of any crime arising out 
  4.12  of the same set of circumstances as the crime for which the 
  4.13  inmate spouse is committed to the commissioner's custody. 
  4.14     (c) "Spousal share" means one-half of the total value of 
  4.15  all assets, to the extent that either the inmate spouse or the 
  4.16  community spouse had an ownership interest at the time of the 
  4.17  inmate's arrest for a crime which led to a sentence of 
  4.18  commitment to the commissioner's custody. 
  4.19     (d) "Assets otherwise available to the community spouse" 
  4.20  means assets individually or jointly owned by the community 
  4.21  spouse, other than assets excluded by subdivision 4, paragraph 
  4.22  (c). 
  4.23     (e) "Community spouse asset allowance" is the value of 
  4.24  assets that can be transferred under subdivision 2. 
  4.25     (f) "Inmate spouse" means a person who has been or will be 
  4.26  committed to the commissioner's custody, and who is married to a 
  4.27  person who has not been, or will not be, committed to the 
  4.28  commissioner's custody or a local correctional facility for any 
  4.29  crime arising out of the same set of circumstances as the crime 
  4.30  for which the inmate spouse is committed to the commissioner's 
  4.31  custody.  
  4.32     Subd. 2.  [COMMUNITY SPOUSE ASSET ALLOWANCE.] An inmate 
  4.33  spouse may transfer assets to the community spouse solely for 
  4.34  the benefit of the community spouse.  Except for increased 
  4.35  amounts allowable under subdivision 3, the maximum amount of 
  4.36  assets allowed to be transferred is the amount which, when added 
  5.1   to the assets otherwise available to the community spouse, is 
  5.2   the greater of: 
  5.3      (1) $23,171; or 
  5.4      (2) the lesser of the spousal share or $81,960; or 
  5.5      (3) the amount required by court order to be paid to the 
  5.6   community spouse. 
  5.7   If the assets available to the community spouse are already at 
  5.8   the limit permissible under this section, or the higher limit 
  5.9   attributable to increases under subdivision 3, no assets may be 
  5.10  transferred from the inmate spouse to the community spouse.  The 
  5.11  transfer must be made as soon as practicable after the date the 
  5.12  inmate spouse is committed to the commissioner's custody, or 
  5.13  within the amount of time needed for any court order required 
  5.14  for the transfer.  On January 1, 2000, and every January 1 
  5.15  thereafter, the limits in this subdivision shall be adjusted by 
  5.16  the same percentage change in the consumer price index for all 
  5.17  urban consumers, all items; United States city average, between 
  5.18  the two previous Septembers.  These adjustments shall also be 
  5.19  applied to the limits in subdivision 4. 
  5.20     Subd. 3.  [INCREASED COMMUNITY SPOUSE ASSET ALLOWANCE; WHEN 
  5.21  ALLOWED.] (a) If either the inmate spouse or community spouse 
  5.22  establishes that the community spouse asset allowance under 
  5.23  subdivision 2, in relation to the amount of income generated by 
  5.24  such an allowance, is not sufficient to raise the community 
  5.25  spouse's income to the minimum monthly maintenance needs 
  5.26  allowance in subdivision 5, there shall be substituted for the 
  5.27  amount allowed to be transferred an amount sufficient, when 
  5.28  combined with the monthly income otherwise available to the 
  5.29  spouse, to provide the minimum monthly maintenance needs 
  5.30  allowance.  A substitution under this paragraph may be made only 
  5.31  if the assets of the couple have been arranged so that the 
  5.32  maximum amount of income-producing assets, at the maximum rate 
  5.33  of return, are available to the community spouse under the 
  5.34  community spouse asset allowance.  The maximum rate of return is 
  5.35  the average rate of return available from the financial 
  5.36  institution holding the asset, or a rate determined by the 
  6.1   commissioner to be reasonable according to community standards, 
  6.2   if the asset is not held by a financial institution. 
  6.3      (b) The community spouse asset allowance under subdivision 
  6.4   2 can be increased by court order or hearing. 
  6.5      Subd. 4.  [ASSET AVAILABILITY] (a) At the time of initial 
  6.6   determination of an inmate's ability to satisfy inmate 
  6.7   obligations, assets considered available to the inmate spouse 
  6.8   shall be the total value of all assets in which either spouse 
  6.9   has an ownership interest, reduced by the greater of: 
  6.10     (1) $23,171; or 
  6.11     (2) the lesser of the spousal share or $81,960; or 
  6.12     (3) the amount required by court order to be paid to the 
  6.13  community spouse. 
  6.14  If the community spouse asset allowance has been increased under 
  6.15  subdivision 3, then the assets considered available to the 
  6.16  inmate spouse under this subdivision shall be further reduced by 
  6.17  the value of additional amounts allowed under subdivision 3. 
  6.18     (b) Assets determined to be available to the inmate spouse 
  6.19  under this section must be used to satisfy inmate obligations. 
  6.20     (c) For purposes of this section, assets do not include 
  6.21  assets excluded under the supplemental security income program. 
  6.22     Subd. 5.  [MONTHLY INCOME ALLOWANCE FOR COMMUNITY SPOUSE.] 
  6.23  The community spouse's monthly maintenance needs allowance is 
  6.24  the lesser of $2,049 or 150 percent of the monthly federal 
  6.25  poverty guideline for a family of two plus an excess shelter 
  6.26  allowance.  The excess shelter allowance is for the amount of 
  6.27  shelter expenses that exceed 30 percent of 150 percent of the 
  6.28  federal poverty guideline line for a family of two.  Shelter 
  6.29  expenses are the community spouse's expenses for rent, mortgage 
  6.30  payments including principal and interest, taxes, insurance, 
  6.31  required maintenance charges for a cooperative or condominium 
  6.32  that is the community spouse's principal residence, and the 
  6.33  standard utility allowance under section 5(e) of the federal 
  6.34  Food Stamp Act of 1977.  If the community spouse has a required 
  6.35  maintenance charge for a cooperative or condominium, the 
  6.36  standard utility allowance must be reduced by the amount of 
  7.1   utility expenses included in the required maintenance charge. 
  7.2      If the community or inmate spouse establishes that the 
  7.3   community spouse needs income greater than the monthly 
  7.4   maintenance needs allowance determined in this paragraph due to 
  7.5   exceptional circumstances resulting in significant financial 
  7.6   duress, the monthly maintenance needs allowance may be increased 
  7.7   to an amount that provides needed additional income. 
  7.8      Subd. 6.  [FAMILY ALLOWANCE.] (a) A family allowance 
  7.9   determined under paragraph (b) is not considered available to 
  7.10  the inmate spouse for monthly payment of costs of care in the 
  7.11  institution. 
  7.12     (b) The family allowance is equal to one-third of the 
  7.13  amount by which 150 percent of the monthly federal poverty 
  7.14  guideline for a family of two exceeds the monthly income for 
  7.15  that family member. 
  7.16     (c) For purposes of this subdivision, the term "family 
  7.17  member" includes a minor or dependent child, dependent parent, 
  7.18  or dependent sibling of the inmate or community spouse if the 
  7.19  sibling resides with the community spouse.  
  7.20     (d) Adjustments in the income limits due to annual changes 
  7.21  in the federal poverty guidelines shall be implemented the first 
  7.22  day of July following publication of the annual changes. 
  7.23     Sec. 5.  [243.218] [PROHIBITIONS ON TRANSFER; EXCEPTIONS.] 
  7.24     Subdivision 1.  [PROHIBITION; APPLICABILITY.] (a) A person, 
  7.25  a person's spouse, or any person, court, or administrative body 
  7.26  with legal authority to act in place of, on behalf of, at the 
  7.27  direction of, or upon the request of the person or person's 
  7.28  spouse, may not give away, sell, or dispose of, for less than 
  7.29  fair market value, any asset or interest therein, except assets 
  7.30  that are excluded under sections 243.216 and 243.217, for the 
  7.31  purpose of reducing the assets available to put toward inmate 
  7.32  obligations.  For purposes of determining availability of these 
  7.33  assets, any transfer of such assets for less than fair market 
  7.34  value, at any time following an arrest for a crime that results 
  7.35  in the person's commitment to the commissioner's custody, may be 
  7.36  considered. 
  8.1      (b) This section applies to transfers, for less than fair 
  8.2   market value, of income or assets, including assets that are 
  8.3   considered income in the month received, such as inheritances, 
  8.4   court settlements, and retroactive benefit payments or income to 
  8.5   which the person or the person's spouse is entitled but does not 
  8.6   receive due to action by the person, the person's spouse, or any 
  8.7   person, court, or administrative body with legal authority to 
  8.8   act in place of, on behalf of, at the direction of, or upon the 
  8.9   request of the person or the person's spouse. 
  8.10     (c) This section applies to the portion of any asset or 
  8.11  interest that a person, a person's spouse, or any person, court, 
  8.12  or administrative body with legal authority to act in place of, 
  8.13  on behalf of, at the direction of, or upon the request of the 
  8.14  person or the person's spouse, transfers to any annuity that 
  8.15  exceeds the value of the benefit likely to be returned to the 
  8.16  person or spouse while alive, based on estimated life expectancy 
  8.17  using the life expectancy tables employed by the supplemental 
  8.18  security income program to determine the value of an agreement 
  8.19  for services for life. 
  8.20     Subd. 2.  [PENALTY.] (a) Except as provided in subdivision 
  8.21  3, a person who intentionally gives away, sells, or disposes of, 
  8.22  for less than fair market value, any asset or interest therein, 
  8.23  at any time after an arrest for a crime that leads to commitment 
  8.24  to the commissioner's custody, knowing that this action will 
  8.25  reduce the assets available to put toward inmate obligations, is 
  8.26  guilty of a felony. 
  8.27     (b) If the person who violates paragraph (a) is the 
  8.28  individual who is arrested for a crime that leads to commitment 
  8.29  to the commissioner's custody, a sentence under this section 
  8.30  shall be consecutive to any sentence imposed for any crime or 
  8.31  offense for which a person was originally arrested.  
  8.32     For purposes of this subdivision, "person" means the 
  8.33  individual who is arrested for a crime that leads to commitment 
  8.34  to the commissioner's custody or this individual's spouse. 
  8.35     Subd. 3.  [HOMESTEAD EXCEPTION TO TRANSFER PROHIBITION.] A 
  8.36  person may transfer assets for less than fair market value if 
  9.1   the asset transferred was a homestead, and:  
  9.2      (1) the homestead is used as a primary residence by one of 
  9.3   the individuals listed in items (i) to (iii), title is 
  9.4   transferred to one of these individuals, and the individual was 
  9.5   not convicted for any crime arising out of the same set of 
  9.6   circumstances as the crime for which the inmate was committed to 
  9.7   the commissioner's custody: 
  9.8      (i) the person's spouse; 
  9.9      (ii) a person's child who is under age 21; or 
  9.10     (iii) a person's child of any age who is blind or 
  9.11  permanently and totally disabled as defined in the supplemental 
  9.12  security income program; or 
  9.13     (2) a satisfactory showing is made that the person intended 
  9.14  to dispose of the homestead at fair market value or for other 
  9.15  valuable consideration. 
  9.16     Subd. 4.  [NO BAD EFFECT ON REALTY CONVEYANCE, 
  9.17  ENCUMBRANCE.] This section does not invalidate or impair the 
  9.18  effectiveness of a conveyance or encumbrance of real estate. 
  9.19     Sec. 6.  [EFFECTIVE DATE.] 
  9.20     Sections 1 to 5 are effective August 1, 2000, for crimes 
  9.21  committed on or after that date.