1.1                          A bill for an act 
  1.2             relating to human services; authorizing an exception 
  1.3             to the prohibition on asset transfers for certain 
  1.4             charitable gifts; amending Minnesota Statutes 2003 
  1.5             Supplement, section 256B.0595, subdivision 1b. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.8   256B.0595, subdivision 1b, is amended to read: 
  1.9      Subd. 1b.  [PROHIBITED TRANSFERS.] (a) Notwithstanding any 
  1.10  contrary provisions of this section, this subdivision applies to 
  1.11  transfers involving recipients of medical assistance that are 
  1.12  made on or after July 1, 2003, and to all transfers involving 
  1.13  persons who apply for medical assistance on or after July 1, 
  1.14  2003, if the transfer occurred within 72 months before the 
  1.15  person applies for medical assistance, except that this 
  1.16  subdivision does not apply to transfers made prior to July 1, 
  1.17  2003.  A person, a person's spouse, or any person, court, or 
  1.18  administrative body with legal authority to act in place of, on 
  1.19  behalf of, at the direction of, or upon the request of the 
  1.20  person or the person's spouse, may not give away, sell, dispose 
  1.21  of, or reduce ownership or control of any income, asset, or 
  1.22  interest therein for less than fair market value for the purpose 
  1.23  of establishing or maintaining medical assistance eligibility.  
  1.24  This applies to all transfers, including those made by a 
  1.25  community spouse after the month in which the institutionalized 
  2.1   spouse is determined eligible for medical assistance.  For 
  2.2   purposes of determining eligibility for medical assistance 
  2.3   services, any transfer of such income or assets for less than 
  2.4   fair market value within 72 months before or any time after a 
  2.5   person applies for medical assistance may be considered.  Any 
  2.6   such transfer is presumed to have been made for the purpose of 
  2.7   establishing or maintaining medical assistance eligibility, and 
  2.8   the person is ineligible for medical assistance services for the 
  2.9   period of time determined under subdivision 2b, unless the 
  2.10  person furnishes convincing evidence to establish that the 
  2.11  transaction was exclusively for another purpose or unless the 
  2.12  transfer is permitted under subdivision 3b or 4b. 
  2.13     Convincing evidence of any one of the following facts shall 
  2.14  establish that a gift that is a charitable contribution to an 
  2.15  organization described in section 170(c) of the Internal Revenue 
  2.16  Code of 1986, as amended, was made exclusively for a purpose 
  2.17  other than establishing or maintaining medical assistance 
  2.18  eligibility, unless at the time of the gift the donor or donor's 
  2.19  spouse was receiving long-term care services, was advised by a 
  2.20  medical professional of the need for long-term care services, or 
  2.21  was a medical assistance applicant or recipient: 
  2.22     (1) the donor made one or more gifts to the same donee 
  2.23  organization more than 180 days prior to the date of the gift in 
  2.24  question; 
  2.25     (2) the gift was made to a religious organization that 
  2.26  recognized the donor as one of its members and donors prior to 
  2.27  and on the date of the gift; or 
  2.28     (3) the gift was made to an organization for which the 
  2.29  donor had provided volunteer services, acknowledged in writing 
  2.30  by the organization, prior to the date of the gift.  
  2.31  A person may alternatively establish with other convincing 
  2.32  evidence that a charitable gift was made exclusively for a 
  2.33  purpose other than establishing or maintaining medical 
  2.34  assistance eligibility. 
  2.35     (b) This section applies to transfers to trusts.  The 
  2.36  commissioner shall determine valid trust purposes under this 
  3.1   section.  Assets placed into a trust that is not for a valid 
  3.2   purpose shall always be considered available for the purposes of 
  3.3   medical assistance eligibility, regardless of when the trust is 
  3.4   established. 
  3.5      (c) This section applies to transfers of income or assets 
  3.6   for less than fair market value, including assets that are 
  3.7   considered income in the month received, such as inheritances, 
  3.8   court settlements, and retroactive benefit payments or income to 
  3.9   which the person or the person's spouse is entitled but does not 
  3.10  receive due to action by the person, the person's spouse, or any 
  3.11  person, court, or administrative body with legal authority to 
  3.12  act in place of, on behalf of, at the direction of, or upon the 
  3.13  request of the person or the person's spouse. 
  3.14     (d) This section applies to payments for care or personal 
  3.15  services provided by a relative, unless the compensation was 
  3.16  stipulated in a notarized written agreement that was in 
  3.17  existence when the service was performed, the care or services 
  3.18  directly benefited the person, and the payments made represented 
  3.19  reasonable compensation for the care or services provided.  A 
  3.20  notarized written agreement is not required if payment for the 
  3.21  services was made within 60 days after the service was provided. 
  3.22     (e) This section applies to the portion of any income, 
  3.23  asset, or interest therein that a person, a person's spouse, or 
  3.24  any person, court, or administrative body with legal authority 
  3.25  to act in place of, on behalf of, at the direction of, or upon 
  3.26  the request of the person or the person's spouse, transfers to 
  3.27  any annuity that exceeds the value of the benefit likely to be 
  3.28  returned to the person or the person's spouse while alive, based 
  3.29  on estimated life expectancy, using the life expectancy tables 
  3.30  employed by the supplemental security income program, or based 
  3.31  on a shorter life expectancy if the annuitant had a medical 
  3.32  condition that would shorten the annuitant's life expectancy and 
  3.33  that was diagnosed before funds were placed into the annuity.  
  3.34  The agency may request and receive a physician's statement to 
  3.35  determine if the annuitant had a diagnosed medical condition 
  3.36  that would shorten the annuitant's life expectancy.  If so, the 
  4.1   agency shall determine the expected value of the benefits based 
  4.2   upon the physician's statement instead of using a life 
  4.3   expectancy table.  This section applies to an annuity described 
  4.4   in this paragraph purchased on or after March 1, 2002, that: 
  4.5      (1) is not purchased from an insurance company or financial 
  4.6   institution that is subject to licensing or regulation by the 
  4.7   Minnesota Department of Commerce or a similar regulatory agency 
  4.8   of another state; 
  4.9      (2) does not pay out principal and interest in equal 
  4.10  monthly installments; or 
  4.11     (3) does not begin payment at the earliest possible date 
  4.12  after annuitization. 
  4.13     (f) Transfers under this section shall affect 
  4.14  determinations of eligibility for all medical assistance 
  4.15  services or long-term care services, whichever receives federal 
  4.16  approval.