1.1 	A bill for an act
1.2 	relating to the operation of state government;
1.3 	modifying parental contributions; modifying several
1.4 	MFIP provisions; modifying medical assistance estate
1.5 	recovery provisions; eliminating recoveries for
1.6 	alternative care costs; removing liens against life
1.7 	estates and joint tenant interests; appropriating
1.8 	money; amending Minnesota Statutes 2004, sections
1.9 	252.27, subdivision 2a; 256B.15, subdivisions 1, 1a,
1.10 	1d, 1e, 1f, 1h, 1i, 1j, 2, 3, 4; 256J.21, subdivision
1.11 	2; 256J.95, subdivision 9; 514.981, subdivision 6;
1.12 	524.3-805; repealing Minnesota Statutes 2004, sections
1.13 	256B.15, subdivision 1g; 256J.37, subdivisions 3a, 3b;
1.14 	514.991; 514.992; 514.993; 514.994; 514.995.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	ARTICLE 1
1.17 	HUMAN SERVICES

1.18 	Section 1. Minnesota Statutes 2004, section 252.27,
1.19 	subdivision 2a, is amended to read:
1.20 		Subd. 2a.Contribution amount.  (a) The natural or
1.21 	adoptive parents of a minor child, including a child determined
1.22 	eligible for medical assistance without consideration of
1.23 	parental income, must contribute to the cost of services used by
1.24 	making monthly payments on a sliding scale based on income,
1.25 	unless the child is married or has been married, parental rights
1.26 	have been terminated, or the child's adoption is subsidized
1.27 	according to section 259.67 or through title IV-E of the Social
1.28 	Security Act.
1.29 	(b) For households with adjusted gross income equal to or
1.30 	greater than 100 percent of federal poverty guidelines, the
2.1 	parental contribution shall be computed by applying the
2.2 	following schedule of rates to the adjusted gross income of the
2.3 	natural or adoptive parents:
2.4 	(1) if the adjusted gross income is equal to or greater
2.5 	than 100 percent of federal poverty guidelines and less than 175
2.6 	percent of federal poverty guidelines, the parental contribution
2.7 	is $4 per month;
2.8 	(2) if the adjusted gross income is equal to or greater
2.9 	than 175 percent of federal poverty guidelines and less than or
2.10 	equal to 375 575 percent of federal poverty guidelines, the
2.11 	parental contribution shall be determined using a sliding fee
2.12 	scale established by the commissioner of human services which
2.13 	begins at one percent of adjusted gross income at 175 percent of
2.14 	federal poverty guidelines and increases to 7.5 percent of
2.15 	adjusted gross income for those with adjusted gross income up to
2.16 	375 575 percent of federal poverty guidelines;
2.17 	(3) if the adjusted gross income is greater than 375 575 
2.18 	percent of federal poverty guidelines and less than 675 percent
2.19 	of federal poverty guidelines, the parental contribution shall
2.20 	be 7.5 percent of adjusted gross income;
2.21 	(4) if the adjusted gross income is equal to or greater
2.22 	than 675 percent of federal poverty guidelines and less than 975
2.23 	percent of federal poverty guidelines, the parental contribution
2.24 	shall be ten percent of adjusted gross income; and
2.25 	(5) if the adjusted gross income is equal to or greater
2.26 	than 975 percent of federal poverty guidelines, the parental
2.27 	contribution shall be 12.5 percent of adjusted gross income.
2.28 	If the child lives with the parent, the annual adjusted
2.29 	gross income is reduced by $2,400 $5,000 prior to calculating
2.30 	the parental contribution.  If the child resides in an
2.31 	institution specified in section 256B.35, the parent is
2.32 	responsible for the personal needs allowance specified under
2.33 	that section in addition to the parental contribution determined
2.34 	under this section.  The parental contribution is reduced by any
2.35 	amount required to be paid directly to the child pursuant to a
2.36 	court order, but only if actually paid.
3.1 	(c) The household size to be used in determining the amount
3.2 	of contribution under paragraph (b) includes natural and
3.3 	adoptive parents and their dependents, including the child
3.4 	receiving services.  Adjustments in the contribution amount due
3.5 	to annual changes in the federal poverty guidelines shall be
3.6 	implemented on the first day of July following publication of
3.7 	the changes.
3.8 	(d) For purposes of paragraph (b), "income" means the
3.9 	adjusted gross income of the natural or adoptive parents
3.10 	determined according to the previous year's federal tax form,
3.11 	except, effective retroactive to July 1, 2003, taxable capital
3.12 	gains to the extent the funds have been used to purchase a
3.13 	home and funds from early withdrawn qualified retirement
3.14 	accounts under the Internal Revenue Code shall not be counted as
3.15 	income.
3.16 	(e) The contribution shall be explained in writing to the
3.17 	parents at the time eligibility for services is being
3.18 	determined.  The contribution shall be made on a monthly basis
3.19 	effective with the first month in which the child receives
3.20 	services.  Annually upon redetermination or at termination of
3.21 	eligibility, if the contribution exceeded the cost of services
3.22 	provided, the local agency or the state shall reimburse that
3.23 	excess amount to the parents, either by direct reimbursement if
3.24 	the parent is no longer required to pay a contribution, or by a
3.25 	reduction in or waiver of parental fees until the excess amount
3.26 	is exhausted.
3.27 	(f) The monthly contribution amount must be reviewed at
3.28 	least every 12 months; when there is a change in household size;
3.29 	and when there is a loss of or gain in income from one month to
3.30 	another in excess of ten percent.  The local agency shall mail a
3.31 	written notice 30 days in advance of the effective date of a
3.32 	change in the contribution amount.  A decrease in the
3.33 	contribution amount is effective in the month that the parent
3.34 	verifies a reduction in income or change in household size.
3.35 	(g) Parents of a minor child who do not live with each
3.36 	other shall each pay the contribution required under paragraph
4.1 	(a).  An amount equal to the annual , except that a court-ordered
4.2 	child support payment actually paid on behalf of the child
4.3 	receiving services shall be deducted from the adjusted gross
4.4 	income contribution of the parent making the payment prior to
4.5 	calculating the parental contribution under paragraph (b).
4.6 	(h) The contribution under paragraph (b) shall be increased
4.7 	by an additional five percent if the local agency determines
4.8 	that insurance coverage is available but not obtained for the
4.9 	child.  For purposes of this section, "available" means the
4.10 	insurance is a benefit of employment for a family member at an
4.11 	annual cost of no more than five percent of the family's annual
4.12 	income.  For purposes of this section, "insurance" means health
4.13 	and accident insurance coverage, enrollment in a nonprofit
4.14 	health service plan, health maintenance organization,
4.15 	self-insured plan, or preferred provider organization.
4.16 	Parents who have more than one child receiving services
4.17 	shall not be required to pay more than the amount for the child
4.18 	with the highest expenditures.  There shall be no resource
4.19 	contribution from the parents.  The parent shall not be required
4.20 	to pay a contribution in excess of the cost of the services
4.21 	provided to the child, not counting payments made to school
4.22 	districts for education-related services.  Notice of an increase
4.23 	in fee payment must be given at least 30 days before the
4.24 	increased fee is due.
4.25 	(i) The contribution under paragraph (b) shall be reduced
4.26 	by $300 per fiscal year if, in the 12 months prior to July 1:
4.27 	(1) the parent applied for insurance for the child;
4.28 	(2) the insurer denied insurance;
4.29 	(3) the parents submitted a complaint or appeal, in writing
4.30 	to the insurer, submitted a complaint or appeal, in writing, to
4.31 	the commissioner of health or the commissioner of commerce, or
4.32 	litigated the complaint or appeal; and
4.33 	(4) as a result of the dispute, the insurer reversed its
4.34 	decision and granted insurance.
4.35 	For purposes of this section, "insurance" has the meaning
4.36 	given in paragraph (h).
5.1 	A parent who has requested a reduction in the contribution
5.2 	amount under this paragraph shall submit proof in the form and
5.3 	manner prescribed by the commissioner or county agency,
5.4 	including, but not limited to, the insurer's denial of
5.5 	insurance, the written letter or complaint of the parents, court
5.6 	documents, and the written response of the insurer approving
5.7 	insurance.  The determinations of the commissioner or county
5.8 	agency under this paragraph are not rules subject to chapter 14.

5.9 	Sec. 2. Minnesota Statutes 2004, section 256J.21,
5.10 	subdivision 2, is amended to read:
5.11 		Subd. 2.Income exclusions.  The following must be
5.12 	excluded in determining a family's available income:
5.13 	(1) payments for basic care, difficulty of care, and
5.14 	clothing allowances received for providing family foster care to
5.15 	children or adults under Minnesota Rules, parts 9545.0010 to
5.16 	9545.0260 and 9555.5050 to 9555.6265, and payments received and
5.17 	used for care and maintenance of a third-party beneficiary who
5.18 	is not a household member;
5.19 	(2) reimbursements for employment training received through
5.20 	the Workforce Investment Act of 1998, United States Code, title
5.21 	20, chapter 73, section 9201;
5.22 	(3) reimbursement for out-of-pocket expenses incurred while
5.23 	performing volunteer services, jury duty, employment, or
5.24 	informal carpooling arrangements directly related to employment;
5.25 	(4) all educational assistance, except the county agency
5.26 	must count graduate student teaching assistantships,
5.27 	fellowships, and other similar paid work as earned income and,
5.28 	after allowing deductions for any unmet and necessary
5.29 	educational expenses, shall count scholarships or grants awarded
5.30 	to graduate students that do not require teaching or research as
5.31 	unearned income;
5.32 	(5) loans, regardless of purpose, from public or private
5.33 	lending institutions, governmental lending institutions, or
5.34 	governmental agencies;
5.35 	(6) loans from private individuals, regardless of purpose,
5.36 	provided an applicant or participant documents that the lender
6.1 	expects repayment;
6.2 	(7)(i) state income tax refunds; and
6.3 	(ii) federal income tax refunds;
6.4 	(8)(i) federal earned income credits;
6.5 	(ii) Minnesota working family credits;
6.6 	(iii) state homeowners and renters credits under chapter
6.7 	290A; and
6.8 	(iv) federal or state tax rebates;
6.9 	(9) funds received for reimbursement, replacement, or
6.10 	rebate of personal or real property when these payments are made
6.11 	by public agencies, awarded by a court, solicited through public
6.12 	appeal, or made as a grant by a federal agency, state or local
6.13 	government, or disaster assistance organizations, subsequent to
6.14 	a presidential declaration of disaster;
6.15 	(10) the portion of an insurance settlement that is used to
6.16 	pay medical, funeral, and burial expenses, or to repair or
6.17 	replace insured property;
6.18 	(11) reimbursements for medical expenses that cannot be
6.19 	paid by medical assistance;
6.20 	(12) payments by a vocational rehabilitation program
6.21 	administered by the state under chapter 268A, except those
6.22 	payments that are for current living expenses;
6.23 	(13) in-kind income, including any payments directly made
6.24 	by a third party to a provider of goods and services;
6.25 	(14) assistance payments to correct underpayments, but only
6.26 	for the month in which the payment is received;
6.27 	(15) payments for short-term emergency needs under section
6.28 	256J.626, subdivision 2;
6.29 	(16) funeral and cemetery payments as provided by section
6.30 	256.935;
6.31 	(17) nonrecurring cash gifts of $30 or less, not exceeding
6.32 	$30 per participant in a calendar month;
6.33 	(18) any form of energy assistance payment made through
6.34 	Public Law 97-35, Low-Income Home Energy Assistance Act of 1981,
6.35 	payments made directly to energy providers by other public and
6.36 	private agencies, and any form of credit or rebate payment
7.1 	issued by energy providers;
7.2 	(19) Supplemental Security Income (SSI), including
7.3 	retroactive SSI payments and other income of an SSI recipient,
7.4 	except as described in section 256J.37, subdivision 3b;
7.5 	(20) Minnesota supplemental aid, including retroactive
7.6 	payments;
7.7 	(21) proceeds from the sale of real or personal property;
7.8 	(22) state adoption assistance payments under section
7.9 	259.67, and up to an equal amount of county adoption assistance
7.10 	payments;
7.11 	(23) state-funded family subsidy program payments made
7.12 	under section 252.32 to help families care for children with
7.13 	mental retardation or related conditions, consumer support grant
7.14 	funds under section 256.476, and resources and services for a
7.15 	disabled household member under one of the home and
7.16 	community-based waiver services programs under chapter 256B;
7.17 	(24) interest payments and dividends from property that is
7.18 	not excluded from and that does not exceed the asset limit;
7.19 	(25) rent rebates;
7.20 	(26) income earned by a minor caregiver, minor child
7.21 	through age 6, or a minor child who is at least a half-time
7.22 	student in an approved elementary or secondary education
7.23 	program;
7.24 	(27) income earned by a caregiver under age 20 who is at
7.25 	least a half-time student in an approved elementary or secondary
7.26 	education program;
7.27 	(28) MFIP child care payments under section 119B.05;
7.28 	(29) all other payments made through MFIP to support a
7.29 	caregiver's pursuit of greater economic stability;
7.30 	(30) income a participant receives related to shared living
7.31 	expenses;
7.32 	(31) reverse mortgages;
7.33 	(32) benefits provided by the Child Nutrition Act of 1966,
7.34 	United States Code, title 42, chapter 13A, sections 1771 to
7.35 	1790;
7.36 	(33) benefits provided by the women, infants, and children
8.1 	(WIC) nutrition program, United States Code, title 42, chapter
8.2 	13A, section 1786;
8.3 	(34) benefits from the National School Lunch Act, United
8.4 	States Code, title 42, chapter 13, sections 1751 to 1769e;
8.5 	(35) relocation assistance for displaced persons under the
8.6 	Uniform Relocation Assistance and Real Property Acquisition
8.7 	Policies Act of 1970, United States Code, title 42, chapter 61,
8.8 	subchapter II, section 4636, or the National Housing Act, United
8.9 	States Code, title 12, chapter 13, sections 1701 to 1750jj;
8.10 	(36) benefits from the Trade Act of 1974, United States
8.11 	Code, title 19, chapter 12, part 2, sections 2271 to 2322;
8.12 	(37) war reparations payments to Japanese Americans and
8.13 	Aleuts under United States Code, title 50, sections 1989 to
8.14 	1989d;
8.15 	(38) payments to veterans or their dependents as a result
8.16 	of legal settlements regarding Agent Orange or other chemical
8.17 	exposure under Public Law 101-239, section 10405, paragraph
8.18 	(a)(2)(E);
8.19 	(39) income that is otherwise specifically excluded from
8.20 	MFIP consideration in federal law, state law, or federal
8.21 	regulation;
8.22 	(40) security and utility deposit refunds;
8.23 	(41) American Indian tribal land settlements excluded under
8.24 	Public Laws 98-123, 98-124, and 99-377 to the Mississippi Band
8.25 	Chippewa Indians of White Earth, Leech Lake, and Mille Lacs
8.26 	reservations and payments to members of the White Earth Band,
8.27 	under United States Code, title 25, chapter 9, section 331, and
8.28 	chapter 16, section 1407;
8.29 	(42) all income of the minor parent's parents and
8.30 	stepparents when determining the grant for the minor parent in
8.31 	households that include a minor parent living with parents or
8.32 	stepparents on MFIP with other children;
8.33 	(43) income of the minor parent's parents and stepparents
8.34 	equal to 200 percent of the federal poverty guideline for a
8.35 	family size not including the minor parent and the minor
8.36 	parent's child in households that include a minor parent living
9.1 	with parents or stepparents not on MFIP when determining the
9.2 	grant for the minor parent.  The remainder of income is deemed
9.3 	as specified in section 256J.37, subdivision 1b;
9.4 	(44) payments made to children eligible for relative
9.5 	custody assistance under section 257.85;
9.6 	(45) vendor payments for goods and services made on behalf
9.7 	of a client unless the client has the option of receiving the
9.8 	payment in cash; and
9.9 	(46) the principal portion of a contract for deed payment.

9.10 	Sec. 3. Minnesota Statutes 2004, section 256J.95,
9.11 	subdivision 9, is amended to read:
9.12 		Subd. 9.Property and income limitations.  The asset
9.13 	limits and exclusions in section 256J.20 apply to applicants and
9.14 	recipients of DWP.  All payments, unless excluded in section
9.15 	256J.21, must be counted as income to determine eligibility for
9.16 	the diversionary work program.  The county shall treat income as
9.17 	outlined in section 256J.37, except for subdivision 3a.  The
9.18 	initial income test and the disregards in section 256J.21,
9.19 	subdivision 3, shall be followed for determining eligibility for
9.20 	the diversionary work program.

9.21 	Sec. 4. REPEALER.
 9.22 	Minnesota Statutes 2004, section 256J.37, subdivisions 3a
9.23 	and 3b, are repealed effective July 1, 2005.

9.24 	ARTICLE 2
9.25 	MEDICAL ASSISTANCE LIENS

9.26 	Section 1. Minnesota Statutes 2004, section 256B.15,
9.27 	subdivision 1, is amended to read:
9.28 		Subdivision 1.Policy, applicability, purpose, and
9.29 	construction; definition.  (a) It is the policy of this state
9.30 	that individuals or couples, either or both of whom participate
9.31 	in the medical assistance program, use their own assets to pay
9.32 	their share of the total cost of their care during or after
9.33 	their enrollment in the program according to applicable federal
9.34 	law and the laws of this state.  The following provisions apply:
9.35 	(1) subdivisions 1c to 1k shall not apply to claims arising
9.36 	under this section which are presented under section 525.313;
10.1 	(2) the provisions of subdivisions 1c to 1k expanding the
10.2 	interests included in an estate for purposes of recovery under
10.3 	this section give effect to the provisions of United States
10.4 	Code, title 42, section 1396p, governing recoveries, but do not
10.5 	give rise to any express or implied liens in favor of any other
10.6 	parties not named in these provisions; and 
10.7 	(3) the continuation of a recipient's life estate or joint
10.8 	tenancy interest in real property after the recipient's death
10.9 	for the purpose of recovering medical assistance under this
10.10 	section modifies common law principles holding that these
10.11 	interests terminate on the death of the holder;
10.12 	(4) (2) all laws, rules, and regulations governing or
10.13 	involved with a recovery of medical assistance shall must be
10.14 	liberally construed to accomplish their intended purposes;.
10.15 	(5) a deceased recipient's life estate and joint tenancy
10.16 	interests continued under this section shall be owned by the
10.17 	remaindermen or surviving joint tenants as their interests may
10.18 	appear on the date of the recipient's death.  They shall not be
10.19 	merged into the remainder interest or the interests of the
10.20 	surviving joint tenants by reason of ownership.  They shall be
10.21 	subject to the provisions of this section.  Any conveyance,
10.22 	transfer, sale, assignment, or encumbrance by a remainderman, a
10.23 	surviving joint tenant, or their heirs, successors, and assigns
10.24 	shall be deemed to include all of their interest in the deceased
10.25 	recipient's life estate or joint tenancy interest continued
10.26 	under this section; and 
10.27 	(6) the provisions of subdivisions 1c to 1k continuing a
10.28 	recipient's joint tenancy interests in real property after the
10.29 	recipient's death do not apply to a homestead owned of record,
10.30 	on the date the recipient dies, by the recipient and the
10.31 	recipient's spouse as joint tenants with a right of
10.32 	survivorship.  Homestead means the real property occupied by the
10.33 	surviving joint tenant spouse as their sole residence on the
10.34 	date the recipient dies and classified and taxed to the
10.35 	recipient and surviving joint tenant spouse as homestead
10.36 	property for property tax purposes in the calendar year in which
11.1 	the recipient dies.  For purposes of this exemption, real
11.2 	property the recipient and their surviving joint tenant spouse
11.3 	purchase solely with the proceeds from the sale of their prior
11.4 	homestead, own of record as joint tenants, and qualify as
11.5 	homestead property under section 273.124 in the calendar year in
11.6 	which the recipient dies and prior to the recipient's death
11.7 	shall be deemed to be real property classified and taxed to the
11.8 	recipient and their surviving joint tenant spouse as homestead
11.9 	property in the calendar year in which the recipient dies.  The
11.10 	surviving spouse, or any person with personal knowledge of the
11.11 	facts, may provide an affidavit describing the homestead
11.12 	property affected by this clause and stating facts showing
11.13 	compliance with this clause.  The affidavit shall be prima facie
11.14 	evidence of the facts it states.
11.15 	(b) For purposes of this section, "medical assistance"
11.16 	includes the medical assistance program under this chapter and
11.17 	the general assistance medical care program under chapter 256D
11.18 	and but does not include the alternative care program for
11.19 	nonmedical assistance recipients under section 256B.0913.
11.20 	
EFFECTIVE DATE. The amendments in this section relating
11.21 	to the alternative care program are effective retroactively from
11.22 	July 1, 2003, and apply to the estates of decedents who die on
11.23 	or after that date.  The remaining amendments in this section
11.24 	are effective retroactively from August 1, 2003, and apply to
11.25 	the estates of decedents who die on or after that date.

11.26 	Sec. 2. Minnesota Statutes 2004, section 256B.15,
11.27 	subdivision 1a, is amended to read:
11.28 		Subd. 1a.Estates subject to claims.  If a person
11.29 	receives any medical assistance hereunder, on the person's
11.30 	death, if single, or on the death of the survivor of a married
11.31 	couple, either or both of whom received medical assistance, or
11.32 	as otherwise provided for in this section,the total amount paid
11.33 	for medical assistance rendered for the person and spouse shall
11.34 	be filed as a claim against the estate of the person or the
11.35 	estate of the surviving spouse in the court having jurisdiction
11.36 	to probate the estate or to issue a decree of descent according
12.1 	to sections 525.31 to 525.313.
12.2 	A claim shall be filed if medical assistance was rendered
12.3 	for either or both persons under one of the following
12.4 	circumstances:
12.5 	(a) the person was over 55 years of age, and received
12.6 	services under this chapter, excluding alternative care;
12.7 	(b) the person resided in a medical institution for six
12.8 	months or longer, received services under this chapter,
12.9 	excluding alternative care, and, at the time of
12.10 	institutionalization or application for medical assistance,
12.11 	whichever is later, the person could not have reasonably been
12.12 	expected to be discharged and returned home, as certified in
12.13 	writing by the person's treating physician.  For purposes of
12.14 	this section only, a "medical institution" means a skilled
12.15 	nursing facility, intermediate care facility, intermediate care
12.16 	facility for persons with mental retardation, nursing facility,
12.17 	or inpatient hospital; or
12.18 	(c) the person received general assistance medical care
12.19 	services under chapter 256D.
12.20 	The claim shall be considered an expense of the last
12.21 	illness of the decedent for the purpose of section 524.3-805.
12.22 	Any statute of limitations that purports to limit any county
12.23 	agency or the state agency, or both, to recover for medical
12.24 	assistance granted hereunder shall not apply to any claim made
12.25 	hereunder for reimbursement for any medical assistance granted
12.26 	hereunder.  Notice of the claim shall be given to all heirs and
12.27 	devisees of the decedent whose identity can be ascertained with
12.28 	reasonable diligence.  The notice must include procedures and
12.29 	instructions for making an application for a hardship waiver
12.30 	under subdivision 5; time frames for submitting an application
12.31 	and determination; and information regarding appeal rights and
12.32 	procedures.  Counties are entitled to one-half of the nonfederal
12.33 	share of medical assistance collections from estates that are
12.34 	directly attributable to county effort. Counties are entitled
12.35 	to ten percent of the collections for alternative care directly
12.36 	attributable to county effort.
13.1 	
EFFECTIVE DATE. The amendments in this section relating
13.2 	to the alternative care program are effective retroactively from
13.3 	July 1, 2003, and apply to the estates of decedents who die on
13.4 	or after that date.  The remaining amendments in this section
13.5 	are effective retroactively from August 1, 2003, and apply to
13.6 	the estates of decedents who die on or after that date.

13.7 	Sec. 3. Minnesota Statutes 2004, section 256B.15,
13.8 	subdivision 1d, is amended to read:
13.9 		Subd. 1d.Effect of notice.  From the time it takes
13.10 	effect, the notice shall be notice to remaindermen, joint
13.11 	tenants, or to anyone else owning or acquiring an interest in or
13.12 	encumbrance against the property described in the notice that
13.13 	the medical assistance recipient's life estate, joint tenancy,
13.14 	or other interests in the real estate described in the notice:
13.15 	(1) shall, in the case of life estate and joint tenancy
13.16 	interests, continue to exist for purposes of this section, and
13.17 	be subject to liens and claims as provided in this section;
13.18 	(2) shall be subject to a lien in favor of the claimant
13.19 	effective upon the death of the recipient and dealt with as
13.20 	provided in this section;
13.21 	(3) (2) may be included in the recipient's estate, as
13.22 	defined in this section; and
13.23 	(4) (3) may be subject to administration and all other
13.24 	provisions of chapter 524 and may be sold, assigned,
13.25 	transferred, or encumbered free and clear of their interest or
13.26 	encumbrance to satisfy claims under this section.
13.27 	
EFFECTIVE DATE. This section is effective retroactively
13.28 	from August 1, 2003.

13.29 	Sec. 4. Minnesota Statutes 2004, section 256B.15,
13.30 	subdivision 1e, is amended to read:
13.31 		Subd. 1e.Full or partial release of notice.  (a) The
13.32 	claimant may fully or partially release the notice and the lien
13.33 	arising out of the notice of record in the real estate records
13.34 	where the notice is filed or recorded at any time. The claimant
13.35 	may give a full or partial release to extinguish any life
13.36 	estates or joint tenancy interests which are or may be continued
14.1 	under this section or whose existence or nonexistence may create
14.2 	a cloud on the title to real property at any time whether or not
14.3 	a notice has been filed.The recorder or registrar of titles
14.4 	shall accept the release for recording or filing.  If the
14.5 	release is a partial release, it must include a legal
14.6 	description of the property being released.
14.7 	(b) At any time, the claimant may, at the claimant's
14.8 	discretion, wholly or partially release, subordinate, modify, or
14.9 	amend the recorded notice and the lien arising out of the notice.
14.10 	
EFFECTIVE DATE. This section is effective retroactively
14.11 	from August 1, 2003.

14.12 	Sec. 5. Minnesota Statutes 2004, section 256B.15,
14.13 	subdivision 1f, is amended to read:
14.14 		Subd. 1f.Agency lien.  (a) The notice shall constitute a
14.15 	lien in favor of the Department of Human Services against the
14.16 	recipient's interests in the real estate it describes for a
14.17 	period of 20 years from the date of filing or the date of the
14.18 	recipient's death, whichever is later. Notwithstanding any law
14.19 	or rule to the contrary, a recipient's life estate and joint
14.20 	tenancy interests shall not end upon the recipient's death but
14.21 	shall continue according to subdivisions 1h, 1i, and 1j.The
14.22 	amount of the lien shall be equal to the total amount of the
14.23 	claims that could be presented in the recipient's estate under
14.24 	this section.
14.25 	(b) If no estate has been opened for the deceased
14.26 	recipient, any holder of an interest in the property may apply
14.27 	to the lien holder for a statement of the amount of the lien or
14.28 	for a full or partial release of the lien.  The application
14.29 	shall include the applicant's name, current mailing address,
14.30 	current home and work telephone numbers, and a description of
14.31 	their interest in the property, a legal description of the
14.32 	recipient's interest in the property, and the deceased
14.33 	recipient's name, date of birth, and Social Security number.
14.34 	The lien holder shall send the applicant by certified mail,
14.35 	return receipt requested, a written statement showing the amount
14.36 	of the lien, whether the lien holder is willing to release the
15.1 	lien and under what conditions, and inform them of the right to
15.2 	a hearing under section 256.045.  The lien holder shall have the
15.3 	discretion to compromise and settle the lien upon any terms and
15.4 	conditions the lien holder deems appropriate.
15.5 	(c) Any holder of an interest in property subject to the
15.6 	lien has a right to request a hearing under section 256.045 to
15.7 	determine the validity, extent, or amount of the lien.  The
15.8 	request must be in writing, and must include the names, current
15.9 	addresses, and home and business telephone numbers for all other
15.10 	parties holding an interest in the property.  A request for a
15.11 	hearing by any holder of an interest in the property shall be
15.12 	deemed to be a request for a hearing by all parties owning
15.13 	interests in the property.  Notice of the hearing shall be given
15.14 	to the lien holder, the party filing the appeal, and all of the
15.15 	other holders of interests in the property at the addresses
15.16 	listed in the appeal by certified mail, return receipt
15.17 	requested, or by ordinary mail.  Any owner of an interest in the
15.18 	property to whom notice of the hearing is mailed shall be deemed
15.19 	to have waived any and all claims or defenses in respect to the
15.20 	lien unless they appear and assert any claims or defenses at the
15.21 	hearing.
15.22 	(d) If the claim the lien secures could be filed under
15.23 	subdivision 1h, the lien holder may collect, compromise, settle,
15.24 	or release the lien upon any terms and conditions it deems
15.25 	appropriate.  If the claim the lien secures could be filed under
15.26 	subdivision 1i or 1j, the lien may be adjusted or enforced to
15.27 	the same extent had it been filed under subdivisions 1i and 1j,
15.28 	and the provisions of subdivisions 1i, clause (f) (e), and lj,
15.29 	clause (d), shall apply to voluntary payment, settlement, or
15.30 	satisfaction of the lien.
15.31 	(e) If no probate proceedings have been commenced for the
15.32 	recipient as of the date the lien holder executes a release of
15.33 	the lien on a recipient's life estate or joint tenancy interest,
15.34 	created for purposes of this section, the release shall
15.35 	terminate the life estate or joint tenancy interest created
15.36 	under this section as of the date it is recorded or filed to the
16.1 	extent of the release.  If the claimant executes a release for
16.2 	purposes of extinguishing a life estate or a joint tenancy
16.3 	interest created under this section to remove a cloud on title
16.4 	to real property, the release shall have the effect of
16.5 	extinguishing any life estate or joint tenancy interests in the
16.6 	property it describes which may have been continued by reason of
16.7 	this section retroactive to the date of death of the deceased
16.8 	life tenant or joint tenant except as provided for in section
16.9 	514.981, subdivision 6.
16.10 	(f) If the deceased recipient's estate is probated, a claim
16.11 	shall be filed under this section.  The amount of the lien shall
16.12 	be limited to the amount of the claim as finally allowed.  If
16.13 	the claim the lien secures is filed under subdivision 1h, the
16.14 	lien may be released in full after any allowance of the claim
16.15 	becomes final or according to any agreement to settle and
16.16 	satisfy the claim.  The release shall release the lien but shall
16.17 	not extinguish or terminate the interest being released.  If the
16.18 	claim the lien secures is filed under subdivision 1i or 1j, the
16.19 	lien shall be released after the lien under subdivision 1i or 1j
16.20 	is filed or recorded, or settled according to any agreement to
16.21 	settle and satisfy the claim.  The release shall not extinguish
16.22 	or terminate the interest being released.  If the claim is
16.23 	finally disallowed in full, the claimant shall release the
16.24 	claimant's lien at the claimant's expense.
16.25 	
EFFECTIVE DATE. This section is effective retroactively
16.26 	from August 1, 2003.

16.27 	Sec. 6. Minnesota Statutes 2004, section 256B.15,
16.28 	subdivision 1h, is amended to read:
16.29 		Subd. 1h.Estates of specific persons receiving medical
16.30 	assistance.  (a) For purposes of this section, paragraphs (b) to
16.31 	(k) and (c) apply if a person received medical assistance for
16.32 	which a claim may be filed under this section and died single,
16.33 	or the surviving spouse of the couple and was not survived by
16.34 	any of the persons described in subdivisions 3 and 4.
16.35 	(b) For purposes of this section, the person's estate
16.36 	consists of:  (1) their probate estate; (2) all of the person's
17.1 	interests or proceeds of those interests in real property the
17.2 	person owned as a life tenant or as a joint tenant with a right
17.3 	of survivorship at the time of the person's death; (3) all of
17.4 	the person's interests or proceeds of those interests in
17.5 	securities the person owned in beneficiary form as provided
17.6 	under sections 524.6-301 to 524.6-311 at the time of the
17.7 	person's death, to the extent they become part of the probate
17.8 	estate under section 524.6-307; and (4) (3) all of the person's
17.9 	interests in joint accounts, multiple party accounts, and pay on
17.10 	death accounts, or the proceeds of those accounts, as provided
17.11 	under sections 524.6-201 to 524.6-214 at the time of the
17.12 	person's death to the extent they become part of the probate
17.13 	estate under section 524.6-207.  Notwithstanding any law or rule
17.14 	to the contrary, a state or county agency with a claim under
17.15 	this section shall be a creditor under section 524.6-307.
17.16 	(c) Notwithstanding any law or rule to the contrary, the
17.17 	person's life estate or joint tenancy interest in real property
17.18 	not subject to a medical assistance lien under sections 514.980
17.19 	to 514.985 on the date of the person's death shall not end upon
17.20 	the person's death and shall continue as provided in this
17.21 	subdivision.  The life estate in the person's estate shall be
17.22 	that portion of the interest in the real property subject to the
17.23 	life estate that is equal to the life estate percentage factor
17.24 	for the life estate as listed in the Life Estate Mortality Table
17.25 	of the health care program's manual for a person who was the age
17.26 	of the medical assistance recipient on the date of the person's
17.27 	death.  The joint tenancy interest in real property in the
17.28 	estate shall be equal to the fractional interest the person
17.29 	would have owned in the jointly held interest in the property
17.30 	had they and the other owners held title to the property as
17.31 	tenants in common on the date the person died.
17.32 	(d) The court upon its own motion, or upon motion by the
17.33 	personal representative or any interested party, may enter an
17.34 	order directing the remaindermen or surviving joint tenants and
17.35 	their spouses, if any, to sign all documents, take all actions,
17.36 	and otherwise fully cooperate with the personal representative
18.1 	and the court to liquidate the decedent's life estate or joint
18.2 	tenancy interests in the estate and deliver the cash or the
18.3 	proceeds of those interests to the personal representative and
18.4 	provide for any legal and equitable sanctions as the court deems
18.5 	appropriate to enforce and carry out the order, including an
18.6 	award of reasonable attorney fees.
18.7 	(e) The personal representative may make, execute, and
18.8 	deliver any conveyances or other documents necessary to convey
18.9 	the decedent's life estate or joint tenancy interest in the
18.10 	estate that are necessary to liquidate and reduce to cash the
18.11 	decedent's interest or for any other purposes.
18.12 	(f) Subject to administration, all costs, including
18.13 	reasonable attorney fees, directly and immediately related to
18.14 	liquidating the decedent's life estate or joint tenancy interest
18.15 	in the decedent's estate, shall be paid from the gross proceeds
18.16 	of the liquidation allocable to the decedent's interest and the
18.17 	net proceeds shall be turned over to the personal representative
18.18 	and applied to payment of the claim presented under this section.
18.19 	(g) The personal representative shall bring a motion in the
18.20 	district court in which the estate is being probated to compel
18.21 	the remaindermen or surviving joint tenants to account for and
18.22 	deliver to the personal representative all or any part of the
18.23 	proceeds of any sale, mortgage, transfer, conveyance, or any
18.24 	disposition of real property allocable to the decedent's life
18.25 	estate or joint tenancy interest in the decedent's estate, and
18.26 	do everything necessary to liquidate and reduce to cash the
18.27 	decedent's interest and turn the proceeds of the sale or other
18.28 	disposition over to the personal representative.  The court may
18.29 	grant any legal or equitable relief including, but not limited
18.30 	to, ordering a partition of real estate under chapter 558
18.31 	necessary to make the value of the decedent's life estate or
18.32 	joint tenancy interest available to the estate for payment of a
18.33 	claim under this section.
18.34 	(h) Subject to administration, the personal representative
18.35 	shall use all of the cash or proceeds of interests to pay an
18.36 	allowable claim under this section.  The remaindermen or
19.1 	surviving joint tenants and their spouses, if any, may enter
19.2 	into a written agreement with the personal representative or the
19.3 	claimant to settle and satisfy obligations imposed at any time
19.4 	before or after a claim is filed.
19.5 	(i) The personal representative may, at their discretion,
19.6 	provide any or all of the other owners, remaindermen, or
19.7 	surviving joint tenants with an affidavit terminating the
19.8 	decedent's estate's interest in real property the decedent owned
19.9 	as a life tenant or as a joint tenant with others, if the
19.10 	personal representative determines in good faith that neither
19.11 	the decedent nor any of the decedent's predeceased spouses
19.12 	received any medical assistance for which a claim could be filed
19.13 	under this section, or if the personal representative has filed
19.14 	an affidavit with the court that the estate has other assets
19.15 	sufficient to pay a claim, as presented, or if there is a
19.16 	written agreement under paragraph (h), or if the claim, as
19.17 	allowed, has been paid in full or to the full extent of the
19.18 	assets the estate has available to pay it.  The affidavit may be
19.19 	recorded in the office of the county recorder or filed in the
19.20 	Office of the Registrar of Titles for the county in which the
19.21 	real property is located.  Except as provided in section
19.22 	514.981, subdivision 6, when recorded or filed, the affidavit
19.23 	shall terminate the decedent's interest in real estate the
19.24 	decedent owned as a life tenant or a joint tenant with others.
19.25 	The affidavit shall:  (1) be signed by the personal
19.26 	representative; (2) identify the decedent and the interest being
19.27 	terminated; (3) give recording information sufficient to
19.28 	identify the instrument that created the interest in real
19.29 	property being terminated; (4) legally describe the affected
19.30 	real property; (5) state that the personal representative has
19.31 	determined that neither the decedent nor any of the decedent's
19.32 	predeceased spouses received any medical assistance for which a
19.33 	claim could be filed under this section; (6) state that the
19.34 	decedent's estate has other assets sufficient to pay the claim,
19.35 	as presented, or that there is a written agreement between the
19.36 	personal representative and the claimant and the other owners or
20.1 	remaindermen or other joint tenants to satisfy the obligations
20.2 	imposed under this subdivision; and (7) state that the affidavit
20.3 	is being given to terminate the estate's interest under this
20.4 	subdivision, and any other contents as may be appropriate.
20.5 	The recorder or registrar of titles shall accept the affidavit
20.6 	for recording or filing.  The affidavit shall be effective as
20.7 	provided in this section and shall constitute notice even if it
20.8 	does not include recording information sufficient to identify
20.9 	the instrument creating the interest it terminates.  The
20.10 	affidavit shall be conclusive evidence of the stated facts.
20.11 	(j) The holder of a lien arising under subdivision 1c shall
20.12 	release the lien at the holder's expense against an interest
20.13 	terminated under paragraph (h) to the extent of the termination.
20.14 	(k) (c) If a lien arising under subdivision 1c is not
20.15 	released under paragraph (j),prior to closing the estate, the
20.16 	personal representative shall deed the interest subject to the
20.17 	lien to the remaindermen or surviving joint tenants as their
20.18 	interests may appear.  Upon recording or filing, the deed shall
20.19 	work a merger of the recipient's life estate or joint tenancy
20.20 	interest, subject to the lien, into the remainder interest or
20.21 	interest the decedent and others owned jointly heirs or devisees
20.22 	subject to the lien.  The lien shall attach to and run with the
20.23 	property to the extent of the decedent's interest at the time of
20.24 	the decedent's death.
20.25 	
EFFECTIVE DATE. This section is effective retroactively
20.26 	from August 1, 2003.

20.27 	Sec. 7. Minnesota Statutes 2004, section 256B.15,
20.28 	subdivision 1i, is amended to read:
20.29 		Subd. 1i.Estates of persons receiving medical assistance
20.30 	and survived by others.  (a) For purposes of this subdivision,
20.31 	the person's estate consists of the person's probate estate and
20.32 	all of the person's interests in real property the person owned
20.33 	as a life tenant or a joint tenant at the time of the person's
20.34 	death is as defined in subdivision 1h, paragraph (b).
20.35 	(b) Notwithstanding any law or rule to the contrary, this
20.36 	subdivision applies if a person received medical assistance for
21.1 	which a claim could be filed under this section but for the fact
21.2 	the person was survived by a spouse or by a person listed in
21.3 	subdivision 3, or if subdivision 4 applies to a claim arising
21.4 	under this section.
21.5 	(c) The person's life estate or joint tenancy interests in
21.6 	real property not subject to a medical assistance lien under
21.7 	sections 514.980 to 514.985 on the date of the person's death
21.8 	shall not end upon death and shall continue as provided in this
21.9 	subdivision.  The life estate in the estate shall be the portion
21.10 	of the interest in the property subject to the life estate that
21.11 	is equal to the life estate percentage factor for the life
21.12 	estate as listed in the Life Estate Mortality Table of the
21.13 	health care program's manual for a person who was the age of the
21.14 	medical assistance recipient on the date of the person's death.
21.15 	The joint tenancy interest in the estate shall be equal to the
21.16 	fractional interest the medical assistance recipient would have
21.17 	owned in the jointly held interest in the property had they and
21.18 	the other owners held title to the property as tenants in common
21.19 	on the date the medical assistance recipient died.
21.20 	(d) The county agency shall file a claim in the estate
21.21 	under this section on behalf of the claimant who shall be the
21.22 	commissioner of human services, notwithstanding that the
21.23 	decedent is survived by a spouse or a person listed in
21.24 	subdivision 3.  The claim, as allowed, shall not be paid by the
21.25 	estate and shall be disposed of as provided in this paragraph.
21.26 	The personal representative or the court shall make, execute,
21.27 	and deliver a lien in favor of the claimant on the decedent's
21.28 	interest in real property in the estate in the amount of the
21.29 	allowed claim on forms provided by the commissioner to the
21.30 	county agency filing the lien.  The lien shall bear interest as
21.31 	provided under section 524.3-806, shall attach to the property
21.32 	it describes upon filing or recording, and shall remain a lien
21.33 	on the real property it describes for a period of 20 years from
21.34 	the date it is filed or recorded.  The lien shall be a
21.35 	disposition of the claim sufficient to permit the estate to
21.36 	close.
22.1 	(e) (d) The state or county agency shall file or record the
22.2 	lien in the office of the county recorder or registrar of titles
22.3 	for each county in which any of the real property is located.
22.4 	The recorder or registrar of titles shall accept the lien for
22.5 	filing or recording.  All recording or filing fees shall be paid
22.6 	by the Department of Human Services.  The recorder or registrar
22.7 	of titles shall mail the recorded lien to the Department of
22.8 	Human Services.  The lien need not be attested, certified, or
22.9 	acknowledged as a condition of recording or filing. Upon
22.10 	recording or filing of a lien against a life estate or a joint
22.11 	tenancy interest, the interest subject to the lien shall merge
22.12 	into the remainder interest or the interest the recipient and
22.13 	others owned jointly.  The lien shall attach to and run with the
22.14 	property to the extent of the decedent's interest in the
22.15 	property at the time of the decedent's death as determined under
22.16 	this section.
22.17 	(f) (e) The department shall make no adjustment or recovery
22.18 	under the lien until after the decedent's spouse, if any, has
22.19 	died, and only at a time when the decedent has no surviving
22.20 	child described in subdivision 3.  The estate, any owner of an
22.21 	interest in the property which is or may be subject to the lien,
22.22 	or any other interested party, may voluntarily pay off, settle,
22.23 	or otherwise satisfy the claim secured or to be secured by the
22.24 	lien at any time before or after the lien is filed or recorded.
22.25 	Such payoffs, settlements, and satisfactions shall be deemed to
22.26 	be voluntary repayments of past medical assistance payments for
22.27 	the benefit of the deceased recipient, and neither the process
22.28 	of settling the claim, the payment of the claim, or the
22.29 	acceptance of a payment shall constitute an adjustment or
22.30 	recovery that is prohibited under this subdivision.
22.31 	(g) (f) The lien under this subdivision may be enforced or
22.32 	foreclosed in the manner provided by law for the enforcement of
22.33 	judgment liens against real estate or by a foreclosure by action
22.34 	under chapter 581.  When the lien is paid, satisfied, or
22.35 	otherwise discharged, the state or county agency shall prepare
22.36 	and file a release of lien at its own expense.  No action to
23.1 	foreclose the lien shall be commenced unless the lien holder has
23.2 	first given 30 days' prior written notice to pay the lien to the
23.3 	owners and parties in possession of the property subject to the
23.4 	lien.  The notice shall:  (1) include the name, address, and
23.5 	telephone number of the lien holder; (2) describe the lien; (3)
23.6 	give the amount of the lien; (4) inform the owner or party in
23.7 	possession that payment of the lien in full must be made to the
23.8 	lien holder within 30 days after service of the notice or the
23.9 	lien holder may begin proceedings to foreclose the lien; and (5)
23.10 	be served by personal service, certified mail, return receipt
23.11 	requested, ordinary first class mail, or by publishing it once
23.12 	in a newspaper of general circulation in the county in which any
23.13 	part of the property is located.  Service of the notice shall be
23.14 	complete upon mailing or publication.
23.15 	
EFFECTIVE DATE. This section is effective retroactively
23.16 	from August 1, 2003.

23.17 	Sec. 8. Minnesota Statutes 2004, section 256B.15,
23.18 	subdivision 1j, is amended to read:
23.19 		Subd. 1j.Claims in estates of decedents survived by
23.20 	other survivors.  For purposes of this subdivision, the
23.21 	provisions in subdivision 1i, paragraphs (a) to (c) and (b) 
23.22 	apply.
23.23 	(a) If payment of a claim filed under this section is
23.24 	limited as provided in subdivision 4, and if the estate does not
23.25 	have other assets sufficient to pay the claim in full, as
23.26 	allowed, the personal representative or the court shall make,
23.27 	execute, and deliver a lien on the property in the estate that
23.28 	is exempt from the claim under subdivision 4 in favor of the
23.29 	commissioner of human services on forms provided by the
23.30 	commissioner to the county agency filing the claim.  If the
23.31 	estate pays a claim filed under this section in full from other
23.32 	assets of the estate, no lien shall be filed against the
23.33 	property described in subdivision 4.
23.34 	(b) The lien shall be in an amount equal to the unpaid
23.35 	balance of the allowed claim under this section remaining after
23.36 	the estate has applied all other available assets of the estate
24.1 	to pay the claim.  The property exempt under subdivision 4 shall
24.2 	not be sold, assigned, transferred, conveyed, encumbered, or
24.3 	distributed until after the personal representative has
24.4 	determined the estate has other assets sufficient to pay the
24.5 	allowed claim in full, or until after the lien has been filed or
24.6 	recorded.  The lien shall bear interest as provided under
24.7 	section 524.3-806, shall attach to the property it describes
24.8 	upon filing or recording, and shall remain a lien on the real
24.9 	property it describes for a period of 20 years from the date it
24.10 	is filed or recorded.  The lien shall be a disposition of the
24.11 	claim sufficient to permit the estate to close.
24.12 	(c) The state or county agency shall file or record the
24.13 	lien in the office of the county recorder or registrar of titles
24.14 	in each county in which any of the real property is located.
24.15 	The department shall pay the filing fees.  The lien need not be
24.16 	attested, certified, or acknowledged as a condition of recording
24.17 	or filing.  The recorder or registrar of titles shall accept the
24.18 	lien for filing or recording.
24.19 	(d) The commissioner shall make no adjustment or recovery
24.20 	under the lien until none of the persons listed in subdivision 4
24.21 	are residing on the property or until the property is sold or
24.22 	transferred.  The estate or any owner of an interest in the
24.23 	property that is or may be subject to the lien, or any other
24.24 	interested party, may voluntarily pay off, settle, or otherwise
24.25 	satisfy the claim secured or to be secured by the lien at any
24.26 	time before or after the lien is filed or recorded.  The
24.27 	payoffs, settlements, and satisfactions shall be deemed to be
24.28 	voluntary repayments of past medical assistance payments for the
24.29 	benefit of the deceased recipient and neither the process of
24.30 	settling the claim, the payment of the claim, or acceptance of a
24.31 	payment shall constitute an adjustment or recovery that is
24.32 	prohibited under this subdivision.
24.33 	(e) A lien under this subdivision may be enforced or
24.34 	foreclosed in the manner provided for by law for the enforcement
24.35 	of judgment liens against real estate or by a foreclosure by
24.36 	action under chapter 581.  When the lien has been paid,
25.1 	satisfied, or otherwise discharged, the claimant shall prepare
25.2 	and file a release of lien at the claimant's expense.  No action
25.3 	to foreclose the lien shall be commenced unless the lien holder
25.4 	has first given 30 days prior written notice to pay the lien to
25.5 	the record owners of the property and the parties in possession
25.6 	of the property subject to the lien.  The notice shall:  (1)
25.7 	include the name, address, and telephone number of the lien
25.8 	holder; (2) describe the lien; (3) give the amount of the lien;
25.9 	(4) inform the owner or party in possession that payment of the
25.10 	lien in full must be made to the lien holder within 30 days
25.11 	after service of the notice or the lien holder may begin
25.12 	proceedings to foreclose the lien; and (5) be served by personal
25.13 	service, certified mail, return receipt requested, ordinary
25.14 	first class mail, or by publishing it once in a newspaper of
25.15 	general circulation in the county in which any part of the
25.16 	property is located.  Service shall be complete upon mailing or
25.17 	publication.
25.18 	(f) Upon filing or recording of a lien against a life
25.19 	estate or joint tenancy interest under this subdivision, the
25.20 	interest subject to the lien shall merge into the remainder
25.21 	interest or the interest the decedent and others owned jointly,
25.22 	effective on the date of recording and filing.  The lien shall
25.23 	attach to and run with the property to the extent of the
25.24 	decedent's interest in the property at the time of the
25.25 	decedent's death as determined under this section.
25.26 	(g) (1) An affidavit may be provided by a personal
25.27 	representative, at their discretion, stating the personal
25.28 	representative has determined in good faith that a decedent
25.29 	survived by a spouse or a person listed in subdivision 3, or by
25.30 	a person listed in subdivision 4, or the decedent's predeceased
25.31 	spouse did not receive any medical assistance giving rise to a
25.32 	claim under this section, or that the real property described in
25.33 	subdivision 4 is not needed to pay in full a claim arising under
25.34 	this section.
25.35 	(2) The affidavit shall:
25.36 	(i) describe the property and the interest being
26.1 	extinguished;
26.2 	(ii) name the decedent and give the date of death;
26.3 	(iii) state the facts listed in clause (1);
26.4 	(iv) state that the affidavit is being filed to terminate
26.5 	the life estate or joint tenancy interest created under this
26.6 	subdivision;
26.7 	(v) be signed by the personal representative; and
26.8 	(vi) contain any other information that the affiant deems
26.9 	appropriate.
26.10 	(3) Except as provided in section 514.981, subdivision 6,
26.11 	when the affidavit is filed or recorded, the life estate or
26.12 	joint tenancy interest in real property that the affidavit
26.13 	describes shall be terminated effective as of the date of filing
26.14 	or recording.  The termination shall be final and may not be set
26.15 	aside for any reason.
26.16 	
EFFECTIVE DATE. This section is effective retroactively
26.17 	from August 1, 2003.

26.18 	Sec. 9. Minnesota Statutes 2004, section 256B.15,
26.19 	subdivision 2, is amended to read:
26.20 		Subd. 2.Limitations on claims.  The claim shall include
26.21 	only the total amount of medical assistance rendered after age
26.22 	55 or during a period of institutionalization described in
26.23 	subdivision 1a, clause (b), and the total amount of general
26.24 	assistance medical care rendered, and shall not include
26.25 	interest.  Claims that have been allowed but not paid shall bear
26.26 	interest according to section 524.3-806, paragraph (d).  A claim
26.27 	against the estate of a surviving spouse who did not receive
26.28 	medical assistance, for medical assistance rendered for the
26.29 	predeceased spouse, is limited to the value of the assets of the
26.30 	estate that were marital property or jointly owned property at
26.31 	any time during the marriage. Claims for alternative care shall
26.32 	be net of all premiums paid under section 256B.0913, subdivision
26.33 	12, on or after July 1, 2003, and shall be limited to services
26.34 	provided on or after July 1, 2003.
26.35 	
EFFECTIVE DATE. This section is effective retroactively
26.36 	from July 1, 2003, for decedents dying on or after that date.

27.1 	Sec. 10. Minnesota Statutes 2004, section 256B.15,
27.2 	subdivision 3, is amended to read:
27.3 		Subd. 3.surviving spouse,minor, blind, or disabled
27.4 	children.  If a decedent is survived by a spouse, or who was
27.5 	single or who was the surviving spouse of a married couple and 
27.6 	is survived by a child who is under age 21 or blind or
27.7 	permanently and totally disabled according to the supplemental
27.8 	security income program criteria, a no claim shall be filed
27.9 	against the estate according to this section.
27.10 	
EFFECTIVE DATE. This section is effective retroactively
27.11 	from August 1, 2003.

27.12 	Sec. 11. Minnesota Statutes 2004, section 256B.15,
27.13 	subdivision 4, is amended to read:
27.14 		Subd. 4.Other survivors.  If the decedent who was single
27.15 	or the surviving spouse of a married couple is survived by one
27.16 	of the following persons, a claim exists against the estate in
27.17 	an amount not to exceed the value of the nonhomestead property
27.18 	included in the estate and the personal representative shall
27.19 	make, execute, and deliver to the county agency a lien against
27.20 	the homestead property in the estate for any unpaid balance of
27.21 	the claim to the claimant as provided under this section:
27.22 	(a) (1) a sibling who resided in the decedent medical
27.23 	assistance recipient's home at least one year before the
27.24 	decedent's institutionalization and continuously since the date
27.25 	of institutionalization; or
27.26 	(b) (2) a son or daughter or a grandchild who resided in
27.27 	the decedent medical assistance recipient's home for at least
27.28 	two years immediately before the parent's or grandparent's
27.29 	institutionalization and continuously since the date of
27.30 	institutionalization, and who establishes by a preponderance of
27.31 	the evidence having provided care to the parent or grandparent
27.32 	who received medical assistance, that the care was provided
27.33 	before institutionalization, and that the care permitted the
27.34 	parent or grandparent to reside at home rather than in an
27.35 	institution.
27.36 	
EFFECTIVE DATE. This section is effective retroactively
28.1 	from August 1, 2003, and applies to decedents who die on or
28.2 	after that date.

28.3 	Sec. 12. Minnesota Statutes 2004, section 514.981,
28.4 	subdivision 6, is amended to read:
28.5 		Subd. 6.Time limits; claim limits; liens on life estates
28.6 	and joint tenancies.  (a) A medical assistance lien is a lien on
28.7 	the real property it describes for a period of ten years from
28.8 	the date it attaches according to section 514.981, subdivision
28.9 	2, paragraph (a), except as otherwise provided for in sections
28.10 	514.980 to 514.985.  The agency may renew a medical assistance
28.11 	lien for an additional ten years from the date it would
28.12 	otherwise expire by recording or filing a certificate of renewal
28.13 	before the lien expires.  The certificate shall be recorded or
28.14 	filed in the office of the county recorder or registrar of
28.15 	titles for the county in which the lien is recorded or filed.
28.16 	The certificate must refer to the recording or filing data for
28.17 	the medical assistance lien it renews.  The certificate need not
28.18 	be attested, certified, or acknowledged as a condition for
28.19 	recording or filing.  The registrar of titles or the recorder
28.20 	shall file, record, index, and return the certificate of renewal
28.21 	in the same manner as provided for medical assistance liens in
28.22 	section 514.982, subdivision 2.
28.23 	(b) A medical assistance lien is not enforceable against
28.24 	the real property of an estate to the extent there is a
28.25 	determination by a court of competent jurisdiction, or by an
28.26 	officer of the court designated for that purpose, that there are
28.27 	insufficient assets in the estate to satisfy the agency's
28.28 	medical assistance lien in whole or in part because of the
28.29 	homestead exemption under section 256B.15, subdivision 4, the
28.30 	rights of the surviving spouse or minor children under section
28.31 	524.2-403, paragraphs (a) and (b), or claims with a priority
28.32 	under section 524.3-805, paragraph (a), clauses (1) to (4).  For
28.33 	purposes of this section, the rights of the decedent's adult
28.34 	children to exempt property under section 524.2-403, paragraph
28.35 	(b), shall not be considered costs of administration under
28.36 	section 524.3-805, paragraph (a), clause (1).
29.1 	(c) Notwithstanding any law or rule to the contrary, the
29.2 	provisions in clauses (1) to (7) apply if a life estate subject
29.3 	to a medical assistance lien ends according to its terms, or if
29.4 	a medical assistance recipient who owns a life estate or any
29.5 	interest in real property as a joint tenant that is subject to a
29.6 	medical assistance lien dies.
29.7 	(1) The medical assistance recipient's life estate or joint
29.8 	tenancy interest in the real property shall not end upon the
29.9 	recipient's death but shall merge into the remainder interest or
29.10 	other interest in real property the medical assistance recipient
29.11 	owned in joint tenancy with others.  The medical assistance lien
29.12 	shall attach to and run with the remainder or other interest in
29.13 	the real property to the extent of the medical assistance
29.14 	recipient's interest in the property at the time of the
29.15 	recipient's death as determined under this section.
29.16 	(2) If the medical assistance recipient's interest was a
29.17 	life estate in real property, the lien shall be a lien against
29.18 	the portion of the remainder equal to the percentage factor for
29.19 	the life estate of a person the medical assistance recipient's
29.20 	age on the date the life estate ended according to its terms or
29.21 	the date of the medical assistance recipient's death as listed
29.22 	in the Life Estate Mortality Table in the health care program's
29.23 	manual.
29.24 	(3) If the medical assistance recipient owned the interest
29.25 	in real property in joint tenancy with others, the lien shall be
29.26 	a lien against the portion of that interest equal to the
29.27 	fractional interest the medical assistance recipient would have
29.28 	owned in the jointly owned interest had the medical assistance
29.29 	recipient and the other owners held title to that interest as
29.30 	tenants in common on the date the medical assistance recipient
29.31 	died.
29.32 	(4) The medical assistance lien shall remain a lien against
29.33 	the remainder or other jointly owned interest for the length of
29.34 	time and be renewable as provided in paragraph (a).
29.35 	(5) Subdivision 5, paragraph (a), clause (4), paragraph
29.36 	(b), clauses (1) and (2); and subdivision 6, paragraph (b), do
30.1 	not apply to medical assistance liens which attach to interests
30.2 	in real property as provided under this subdivision.
30.3 	(6) The continuation of a medical assistance recipient's
30.4 	life estate or joint tenancy interest in real property after the
30.5 	medical assistance recipient's death for the purpose of
30.6 	recovering medical assistance provided for in sections 514.980
30.7 	to 514.985 modifies common law principles holding that these
30.8 	interests terminate on the death of the holder.
30.9 	(7) Notwithstanding any law or rule to the contrary, no
30.10 	release, satisfaction, discharge, or affidavit under section
30.11 	256B.15 shall extinguish or terminate the life estate or joint
30.12 	tenancy interest of a medical assistance recipient subject to a
30.13 	lien under sections 514.980 to 514.985 on the date the recipient
30.14 	dies.
30.15 	(8) The provisions of clauses (1) to (7) do not apply to a
30.16 	homestead owned of record, on the date the recipient dies, by
30.17 	the recipient and the recipient's spouse as joint tenants with a
30.18 	right of survivorship.  Homestead means the real property
30.19 	occupied by the surviving joint tenant spouse as their sole
30.20 	residence on the date the recipient dies and classified and
30.21 	taxed to the recipient and surviving joint tenant spouse as
30.22 	homestead property for property tax purposes in the calendar
30.23 	year in which the recipient dies.  For purposes of this
30.24 	exemption, real property the recipient and their surviving joint
30.25 	tenant spouse purchase solely with the proceeds from the sale of
30.26 	their prior homestead, own of record as joint tenants, and
30.27 	qualify as homestead property under section 273.124 in the
30.28 	calendar year in which the recipient dies and prior to the
30.29 	recipient's death shall be deemed to be real property classified
30.30 	and taxed to the recipient and their surviving joint tenant
30.31 	spouse as homestead property in the calendar year in which the
30.32 	recipient dies.  The surviving spouse, or any person with
30.33 	personal knowledge of the facts, may provide an affidavit
30.34 	describing the homestead property affected by this clause and
30.35 	stating facts showing compliance with this clause.  The
30.36 	affidavit shall be prima facie evidence of the facts it states.
31.1 	
EFFECTIVE DATE. This section is effective retroactively
31.2 	from August 1, 2003.

31.3 	Sec. 13. Minnesota Statutes 2004, section 524.3-805, is
31.4 	amended to read:
31.5 	524.3-805 CLASSIFICATION OF CLAIMS.
31.6 	(a) If the applicable assets of the estate are insufficient
31.7 	to pay all claims in full, the personal representative shall
31.8 	make payment in the following order:
31.9 	(1) costs and expenses of administration;
31.10 	(2) reasonable funeral expenses;
31.11 	(3) debts and taxes with preference under federal law;
31.12 	(4) reasonable and necessary medical, hospital, or nursing
31.13 	home expenses of the last illness of the decedent, including
31.14 	compensation of persons attending the decedent, a claim filed
31.15 	under section 256B.15 for recovery of expenditures for
31.16 	alternative care for nonmedical assistance recipients under
31.17 	section 256B.0913,and including a claim filed pursuant to
31.18 	section 256B.15;
31.19 	(5) reasonable and necessary medical, hospital, and nursing
31.20 	home expenses for the care of the decedent during the year
31.21 	immediately preceding death;
31.22 	(6) debts with preference under other laws of this state,
31.23 	and state taxes;
31.24 	(7) all other claims.
31.25 	(b) No preference shall be given in the payment of any
31.26 	claim over any other claim of the same class, and a claim due
31.27 	and payable shall not be entitled to a preference over claims
31.28 	not due, except that if claims for expenses of the last illness
31.29 	involve only claims filed under section 256B.15 for recovery of
31.30 	expenditures for alternative care for nonmedical assistance
31.31 	recipients under section 256B.0913, section 246.53 for costs of
31.32 	state hospital care and claims filed under section 256B.15,
31.33 	claims filed to recover expenditures for alternative care for
31.34 	nonmedical assistance recipients under section 256B.0913 shall
31.35 	have preference over claims filed under both sections 246.53 and
31.36 	other claims filed under section 256B.15, and .Claims filed
32.1 	under section 246.53 have preference over claims filed under
32.2 	section 256B.15for recovery of amounts other than those for
32.3 	expenditures for alternative care for nonmedical assistance
32.4 	recipients under section 256B.0913.

32.5 	EFFECTIVE DATE. This section is effective retroactively
32.6 	from July 1, 2003, for decedents dying on or after that date.

32.7 	Sec. 14. REFUNDS; NOTICES, AND IMMUNITY.
 32.8 	(a) The commissioner of human services and any county
32.9 	agency that, after a recipient's death, has collected any sum
32.10 	(1) from the estate of a recipient of alternative case services,
32.11 	or (2) attributable to a life estate or joint tenancy interest
32.12 	in real estate that was continued after the death of the
32.13 	recipient, shall promptly refund the amount collected to the
32.14 	person or persons who paid the amount collected, in proportion
32.15 	to each person's contribution to the amount.
32.16 	(b) If the commissioner determines a person entitled to a
32.17 	refund is dead, the commissioner shall pay the refund to the
32.18 	person's estate if it is open, or to their heirs or devisees as
32.19 	finally determined in any completed probate proceedings or under
32.20 	a final decree of descent.  In all other cases, the refund shall
32.21 	be deemed to be abandoned property and the commissioner shall
32.22 	pay and deliver the refund to the commissioner of commerce.  The
32.23 	commissioner of commerce shall administer and dispose of the
32.24 	refund in accordance with Minnesota Statutes, sections 345.42
32.25 	through 345.60.  The commissioner of human services shall not be
32.26 	liable to anyone with respect to the refund after paying or
32.27 	delivering the refund as provided for in this paragraph.
32.28 	(c) Lien notices of record against life estate or joint
32.29 	tenancy interests filed on and after August 1, 2003, shall have
32.30 	no effect and shall not constitute record notice after the death
32.31 	of the person named in the lien or notice unless continued after
32.32 	that time by the terms of the instrument creating the interest,
32.33 	shall be disregarded by examiners of title, and shall not be
32.34 	carried forward to subsequent certificates of title.
32.35 	(d) The commissioner of human services, county agencies,
32.36 	elected officials, and their employees are immune from all
33.1 	liability for actions taken or not taken in accordance with Laws
33.2 	2003, First Special Session chapter 14, article 2, sections 47
33.3 	to 52; article 12, sections 40 to 52 and 90; and sections 1 to
33.4 	14 of this act.

33.5 	EFFECTIVE DATE. This section is effective the day
33.6 	following final enactment.

33.7 	Sec. 15. APPROPRIATIONS.
 33.8 	$....... is appropriated from the general fund to the
33.9 	commissioner of human services for fiscal years 2004 and 2005
33.10 	and $....... is appropriated from the general fund to the
33.11 	commissioner of human services for fiscal years 2006 and 2007
33.12 	for the purposes of sections 1 to 14.

33.13 	Sec. 16. REPEALER.
 33.14 	Minnesota Statutes 2004, sections 256B.15, subdivision 1g;
33.15 	514.991; 514.992; 514.993; 514.994; and 514.995, are repealed
33.16 	retroactively from July 1, 2003.