1.1 	A bill for an act
1.2 	relating to human services; modifying provisions governing medical assistance 
1.3 	claims and liens; amending Minnesota Statutes 2008, sections 256B.15, 
1.4 	subdivisions 1, 1a, 2; 514.983, subdivision 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 256B.15, subdivision 1, is amended to read:
1.7 		Subdivision 1.Policy and applicability. (a) It is the policy of this state that 
1.8 	individuals or couples, either or both of whom participate in the medical assistance 
1.9 	program, use their own assets to pay their share of the total cost of their care during or 
1.10 	after their enrollment in the program according to applicable federal law and the laws of 
1.11 	this state. The following provisions apply:
1.12 	(1) subdivisions 1c to 1k shall not apply to claims arising under this section which 
1.13 	are presented under section 525.313;
1.14 	(2) the provisions of subdivisions 1c to 1k expanding the interests included in an 
1.15 	estate for purposes of recovery under this section give effect to the provisions of United 
1.16 	States Code, title 42, section 1396p, governing recoveries, but do not give rise to any 
1.17 	express or implied liens in favor of any other parties not named in these provisions;
1.18 	(3) the continuation of a recipient's life estate or joint tenancy interest in real 
1.19 	property after the recipient's death for the purpose of recovering medical assistance under 
1.20 	this section modifies common law principles holding that these interests terminate on 
1.21 	the death of the holder;
1.22 	(4) all laws, rules, and regulations governing or involved with a recovery of medical 
1.23 	assistance shall be liberally construed to accomplish their intended purposes;
2.1 	(5) a deceased recipient's life estate and joint tenancy interests continued under this 
2.2 	section shall be owned by the remaindermen or surviving joint tenants as their interests 
2.3 	may appear on the date of the recipient's death. They shall not be merged into the 
2.4 	remainder interest or the interests of the surviving joint tenants by reason of ownership. 
2.5 	They shall be subject to the provisions of this section. Any conveyance, transfer, sale, 
2.6 	assignment, or encumbrance by a remainderman, a surviving joint tenant, or their heirs, 
2.7 	successors, and assigns shall be deemed to include all of their interest in the deceased 
2.8 	recipient's life estate or joint tenancy interest continued under this section; and
2.9 	(6) the provisions of subdivisions 1c to 1k continuing a recipient's joint tenancy
2.10 	or life estate  interests in real property after the recipient's death do not apply to athe 
2.11 	recipient's homestead owned of record, on the date the recipient dies, by the recipient and 
2.12 	the recipient's spouse as joint tenants with a right of survivorship except as provided in 
2.13 	this clause. If the recipient and another person are occupants of the recipient's homestead 
2.14 	on the date of the recipient's death and if the property would qualify as the surviving 
2.15 	occupant's homestead following the recipient's death as a result of the surviving occupant's 
2.16 	continued occupancy of the premises and ownership of the property by reason of devise, 
2.17 	descent, or operation of the surviving occupant's other ownership of the property at the 
2.18 	time of the recipient's death, none of the provisions of subdivisions 1c to 1k continuing a 
2.19 	life estate or joint tenancy interest owned by the recipient at the time of death apply if 
2.20 	the surviving occupant is the recipient's spouse. If the surviving occupant is someone 
2.21 	other than the recipient's spouse, the joint tenancy or life estate is continued as provided 
2.22 	in subdivisions 1c to 1k, but no recovery against the interest as a result of any medical 
2.23 	assistance claim or lien may be made while the surviving occupant remains in actual and 
2.24 	continuous physical occupancy of the property. Homestead of the recipient means the real 
2.25 	property occupied by the surviving joint tenant spouse as their sole residencerecipient 
2.26 	on the date the recipient dies and classified and taxed at least in part to the recipient and 
2.27 	surviving joint tenant spouse as homestead property for property tax purposes in the 
2.28 	calendar year in which the recipient dies. "Homestead of a surviving occupant" means 
2.29 	the same real property as the recipient's homestead if the surviving occupant continues to 
2.30 	actually physically occupy the property and the property would qualify as the surviving 
2.31 	occupant's homestead if proper application for homestead property tax treatment is made. 
2.32 	For purposes of this exemption, real property the recipient and theira surviving joint 
2.33 	tenant spouseoccupant purchase solely with the proceeds from the sale of theira prior 
2.34 	homestead, ownare owners of record as joint tenants co-owners, and qualifyqualifies as 
2.35 	homestead property under section 273.124 in the calendar year in which the recipient dies 
2.36 	and prior to the recipient's death shall be deemed to be real property classified and taxed 
3.1 	to the recipient and their surviving joint tenant spousethe co-owner as fully homestead 
3.2 	property in the calendar year in which the recipient dies. The surviving spouse occupant, 
3.3 	or any person with personal knowledge of the facts, may provide an affidavit describing 
3.4 	the homestead property affected by this clause and stating facts showing compliance 
3.5 	with this clause. The affidavit shall be prima facie evidence of the facts it states and 
3.6 	a registrar of titles may rely on the facts stated in the affidavit to determine whether a 
3.7 	life estate or joint tenancy is continued under the provisions of this section. Continuous 
3.8 	physical occupancy of the homestead is not lost by reason of temporary absences from 
3.9 	the property, provided the occupant intends to return and the occupant claims no other 
3.10 	homestead or domicile in other real property.
3.11 	(b) For purposes of this section, "medical assistance" includes the medical assistance 
3.12 	program under this chapter and the general assistance medical care program under chapter 
3.13 	256D and alternative care for nonmedical assistance recipients under section 256B.0913.
3.14 	(c) All provisions in this subdivision, and subdivisions 1d, 1f, 1g, 1h, 1i, and 1j, 
3.15 	related to the continuation of a recipient's life estate or joint tenancy interests in real 
3.16 	property after the recipient's death for the purpose of recovering medical assistance, are 
3.17 	effective only for life estates and joint tenancy interests established on or after August 1, 
3.18 	2003. For purposes of this paragraph, medical assistance does not include alternative care.

3.19 	Sec. 2. Minnesota Statutes 2008, section 256B.15, subdivision 1a, is amended to read:
3.20 		Subd. 1a.Estates subject to claims. If a person receives any medical assistance 
3.21 	hereunder, on the person's death, if single, or on the death of the survivor of a married 
3.22 	couple or a surviving occupant of the recipient's homestead as permitted under subdivision 
3.23 	1, clause (6), either or both of whom received medical assistance, or as otherwise provided 
3.24 	for in this section, the total amount paid for medical assistance rendered for the person and 
3.25 	spouse or the surviving occupant shall be filed as a claim against the estate of the person 
3.26 	or the estate of the surviving spouse or occupant  in the court having jurisdiction to probate 
3.27 	the estate or to issue a decree of descent according to sections 525.31 to 525.313. 
3.28 	A claim shall be filed if medical assistance was rendered for either or both persons 
3.29 	under one of the following circumstances:
3.30 	(a) (1) the person was over 55 years of age, and received services under this chapter;
3.31 	(b) (2) the person resided in a medical institution for six months or longer, received 
3.32 	services under this chapter, and, at the time of institutionalization or application for 
3.33 	medical assistance, whichever is later, the person could not have reasonably been expected 
3.34 	to be discharged and returned home, as certified in writing by the person's treating 
3.35 	physician. For purposes of this section only, a "medical institution" means a skilled 
4.1 	nursing facility, intermediate care facility, intermediate care facility for persons with 
4.2 	developmental disabilities, nursing facility, or inpatient hospital; or
4.3 	(c) (3) the person received general assistance medical care services under chapter 
4.4 	256D.
4.5 	The claim shall be considered an expense of the last illness of the decedent for the 
4.6 	purpose of section 524.3-805. Any statute of limitations that purports to limit any county 
4.7 	agency or the state agency, or both, to recover for medical assistance granted hereunder 
4.8 	shall not apply to any claim made hereunder for reimbursement for any medical assistance 
4.9 	granted hereunder. Notice of the claim shall be given to all heirs and devisees of the 
4.10 	decedent, and to those persons with other ownership interests in the real property owned 
4.11 	by the decedent at the time of the decedent's death,  whose identity can be ascertained with 
4.12 	reasonable diligence. The notice must include procedures and instructions for making an 
4.13 	application for a hardship waiver under subdivision 5; time frames for submitting an 
4.14 	application and determination; and information regarding appeal rights and procedures. 
4.15 	Counties are entitled to one-half of the nonfederal share of medical assistance collections 
4.16 	from estates that are directly attributable to county effort. Counties are entitled to ten 
4.17 	percent of the collections for alternative care directly attributable to county effort. 

4.18 	Sec. 3. Minnesota Statutes 2008, section 256B.15, subdivision 2, is amended to read:
4.19 		Subd. 2.Limitations on claims. The claim shall include only the total amount 
4.20 	of medical assistance rendered after age 55 or during a period of institutionalization 
4.21 	described in subdivision 1a, clause (b) (2), and the total amount of general assistance 
4.22 	medical care rendered, and shall not include interest. Claims that have been allowed 
4.23 	but not paid shall bear interest according to section 524.3-806, paragraph (d). A claim 
4.24 	against the estate of a surviving spouse who did not receive medical assistance, for 
4.25 	medical assistance rendered for the predeceased spouse, is limited to the value of the 
4.26 	assets of the estate that were marital property or jointly owned property at any time during 
4.27 	the marriage. A claim against a surviving occupant of the recipient's homestead or the 
4.28 	occupant's estate is limited to the value of the decedent's interest in the homestead at the 
4.29 	time of the decedent's death. Claims for alternative care shall be net of all premiums paid 
4.30 	under section 256B.0913, subdivision 12, on or after July 1, 2003, and shall be limited to 
4.31 	services provided on or after July 1, 2003. 

4.32 	Sec. 4. Minnesota Statutes 2008, section 514.983, subdivision 2, is amended to read:
4.33 		Subd. 2.Homestead property. (a) A medical assistance lien may not be enforced 
4.34 	against homestead property of the medical assistance recipient or the spouse or of a joint 
5.1 	tenant, tenant in common, or life estate tenant  while it remains the lawful residence of the 
5.2 	medical assistance recipient's spouse, joint tenant, tenant in common, or life estate tenant.
5.3 	(b) A medical assistance lien remains enforceable as provided in sections 514.980 to 
5.4 	514.985, notwithstanding any law limiting the enforceability of a judgment.