HF 1201

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to human services; providing for medical 
  1.3             assistance asset recovery; providing for recovery of 
  1.4             expenditures for alternative care for nonmedical 
  1.5             assistance recipients; establishing an alternative 
  1.6             care lien; changing the funding source for activities 
  1.7             under the health care access fund to the general fund; 
  1.8             changing the funding for MinnesotaCare to the general 
  1.9             fund; mandating a children's mental health screening 
  1.10            in certain circumstances; amending Minnesota Statutes 
  1.11            2002, sections 16A.724; 256B.15, subdivisions 1, 1a, 
  1.12            2, 3, 4, by adding subdivisions; 256L.02, by adding a 
  1.13            subdivision; 260B.157, subdivision 1; 260B.176, 
  1.14            subdivision 2; 260B.178, subdivision 1; 260B.193, 
  1.15            subdivision 2; 260B.235, subdivision 6; 261.063; 
  1.16            295.58; 514.981, subdivision 6; 524.3-805; proposing 
  1.17            coding for new law in Minnesota Statutes, chapter 514. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19                             ARTICLE 1
  1.20                          JUDICIARY ISSUES
  1.21     Section 1.  Minnesota Statutes 2002, section 256B.15, 
  1.22  subdivision 1, is amended to read: 
  1.23     Subdivision 1.  [POLICY, APPLICABILITY, PURPOSE, AND 
  1.24  CONSTRUCTION; DEFINITION.] (a) It is the policy of this state 
  1.25  that individuals or couples, either or both of whom participate 
  1.26  in the medical assistance program, use their own assets to pay 
  1.27  their share of the total cost of their care during or after 
  1.28  their enrollment in the program according to applicable federal 
  1.29  law and the laws of this state.  The following provisions apply: 
  1.30     (1) subdivisions 1c to 1k shall not apply to claims arising 
  1.31  under this section which are presented under section 525.313; 
  2.1      (2) the provisions of subdivisions 1c to 1k expanding the 
  2.2   interests included in an estate for purposes of recovery under 
  2.3   this section give effect to the provisions of United States 
  2.4   Code, title 42, section 1396p, governing recoveries, but do not 
  2.5   give rise to any express or implied liens in favor of any other 
  2.6   parties not named in these provisions; 
  2.7      (3) the continuation of a recipient's life estate or joint 
  2.8   tenancy interest in real property after the recipient's death 
  2.9   for the purpose of recovering medical assistance under this 
  2.10  section modifies common law principles holding that these 
  2.11  interests terminate on the death of the holder; 
  2.12     (4) all laws, rules, and regulations governing or involved 
  2.13  with a recovery of medical assistance shall be liberally 
  2.14  construed to accomplish their intended purposes; 
  2.15     (5) a deceased recipient's life estate and joint tenancy 
  2.16  interests continued under this section shall be owned by the 
  2.17  remaindermen or surviving joint tenants as their interests may 
  2.18  appear on the date of the recipient's death.  They shall not be 
  2.19  merged into the remainder interest or the interests of the 
  2.20  surviving joint tenants by reason of ownership.  They shall be 
  2.21  subject to the provisions of this section.  Any conveyance, 
  2.22  transfer, sale, assignment, or encumbrance by a remainderman, a 
  2.23  surviving joint tenant, or their heirs, successors, and assigns 
  2.24  shall be deemed to include all of their interest in the deceased 
  2.25  recipient's life estate or joint tenancy interest continued 
  2.26  under this section; and 
  2.27     (6) the provisions of sections 1c to 1k continuing a 
  2.28  recipient's joint tenancy interests in real property after the 
  2.29  recipient's death do not apply to a homestead owned of record, 
  2.30  on the date the recipient dies, by the recipient and the 
  2.31  recipient's spouse as joint tenants with a right of survivorship.
  2.32     (b) For purposes of this section, "medical assistance" 
  2.33  includes the medical assistance program under this chapter and 
  2.34  the general assistance medical care program under chapter 256D, 
  2.35  but does not include the alternative care program for nonmedical 
  2.36  assistance recipients under section 256B.0913, subdivision 4. 
  3.1      [EFFECTIVE DATE.] This section is effective August 1, 2003, 
  3.2   and applies to estates of decedents who die on or after that 
  3.3   date. 
  3.4      Sec. 2.  Minnesota Statutes 2002, section 256B.15, 
  3.5   subdivision 1a, is amended to read: 
  3.6      Subd. 1a.  [ESTATES SUBJECT TO CLAIMS.] If a person 
  3.7   receives any medical assistance hereunder, on the person's 
  3.8   death, if single, or on the death of the survivor of a married 
  3.9   couple, either or both of whom received medical assistance, or 
  3.10  as otherwise provided for in this section, the total amount paid 
  3.11  for medical assistance rendered for the person and spouse shall 
  3.12  be filed as a claim against the estate of the person or the 
  3.13  estate of the surviving spouse in the court having jurisdiction 
  3.14  to probate the estate or to issue a decree of descent according 
  3.15  to sections 525.31 to 525.313.  
  3.16     A claim shall be filed if medical assistance was rendered 
  3.17  for either or both persons under one of the following 
  3.18  circumstances: 
  3.19     (a) the person was over 55 years of age, and received 
  3.20  services under this chapter, excluding alternative care; 
  3.21     (b) the person resided in a medical institution for six 
  3.22  months or longer, received services under this chapter excluding 
  3.23  alternative care, and, at the time of institutionalization or 
  3.24  application for medical assistance, whichever is later, the 
  3.25  person could not have reasonably been expected to be discharged 
  3.26  and returned home, as certified in writing by the person's 
  3.27  treating physician.  For purposes of this section only, a 
  3.28  "medical institution" means a skilled nursing facility, 
  3.29  intermediate care facility, intermediate care facility for 
  3.30  persons with mental retardation, nursing facility, or inpatient 
  3.31  hospital; or 
  3.32     (c) the person received general assistance medical care 
  3.33  services under chapter 256D.  
  3.34     The claim shall be considered an expense of the last 
  3.35  illness of the decedent for the purpose of section 524.3-805.  
  3.36  Any statute of limitations that purports to limit any county 
  4.1   agency or the state agency, or both, to recover for medical 
  4.2   assistance granted hereunder shall not apply to any claim made 
  4.3   hereunder for reimbursement for any medical assistance granted 
  4.4   hereunder.  Notice of the claim shall be given to all heirs and 
  4.5   devisees of the decedent whose identity can be ascertained with 
  4.6   reasonable diligence.  The notice must include procedures and 
  4.7   instructions for making an application for a hardship waiver 
  4.8   under subdivision 5; time frames for submitting an application 
  4.9   and determination; and information regarding appeal rights and 
  4.10  procedures.  Counties are entitled to one-half of the nonfederal 
  4.11  share of medical assistance collections from estates that are 
  4.12  directly attributable to county effort.  
  4.13     [EFFECTIVE DATE.] This section is effective August 1, 2003, 
  4.14  and applies to the estates of decedents who die on and after 
  4.15  that date. 
  4.16     Sec. 3.  Minnesota Statutes 2002, section 256B.15, is 
  4.17  amended by adding a subdivision to read: 
  4.18     Subd. 1c.  [NOTICE OF POTENTIAL CLAIM.] (a) A state agency 
  4.19  with a claim or potential claim under this section may file a 
  4.20  notice of potential claim under this subdivision anytime before 
  4.21  or after a medical assistance recipient dies.  The claimant 
  4.22  shall be the state agency.  A notice filed prior to the 
  4.23  recipient's death shall not take effect and shall not be 
  4.24  effective as notice until the recipient dies.  A notice filed 
  4.25  after a recipient dies shall be effective from the time of 
  4.26  filing.  
  4.27     (b) The notice of claim shall be filed or recorded in the 
  4.28  real estate records in the office of the county recorder or 
  4.29  registrar of titles for each county in which any part of the 
  4.30  property is located.  The recorder shall accept the notice for 
  4.31  recording or filing.  The registrar of titles shall accept the 
  4.32  notice for filing if the recipient has a recorded interest in 
  4.33  the property.  The notice must be filed within one year after 
  4.34  the date of the recipient's death.  The registrar of titles 
  4.35  shall not carry forward to a new certificate of title any notice 
  4.36  filed more than one year from the date of the recipient's death. 
  5.1      (c) The notice must be dated, state the name of the 
  5.2   claimant, the medical assistance recipient's name and social 
  5.3   security number if filed before their death and their date of 
  5.4   death if filed after they die, the name and date of death of any 
  5.5   predeceased spouse of the medical assistance recipient for whom 
  5.6   a claim may exist, a statement that the claimant may have a 
  5.7   claim arising under this section, generally identify the 
  5.8   recipient's interest in the property, contain a legal 
  5.9   description for the property and whether it is abstract or 
  5.10  registered property, a statement of when the notice becomes 
  5.11  effective and the effect of the notice, be signed by an 
  5.12  authorized representative of the state agency, and may include 
  5.13  such other contents as the state or county agency may deem 
  5.14  appropriate. 
  5.15     Sec. 4.  Minnesota Statutes 2002, section 256B.15, is 
  5.16  amended by adding a subdivision to read: 
  5.17     Subd. 1d.  [EFFECT OF NOTICE.] From the time it takes 
  5.18  effect, the notice shall be notice to remaindermen, joint 
  5.19  tenants, or to anyone else owning or acquiring an interest in or 
  5.20  encumbrance against the property described in the notice that 
  5.21  the medical assistance recipient's life estate, joint tenancy, 
  5.22  or other interests in the real estate described in the notice: 
  5.23     (1) shall, in the case of life estate and joint tenancy 
  5.24  interests, continue to exist for purposes of this section, and 
  5.25  be subject to liens and claims as provided in this section; 
  5.26     (2) shall be subject to a lien in favor of the claimant 
  5.27  effective upon the death of the recipient and dealt with as 
  5.28  provided in this section; 
  5.29     (3) may be included in the recipient's estate, as defined 
  5.30  in this section; and 
  5.31     (4) may be subject to administration and all other 
  5.32  provisions of chapter 524 and may be sold, assigned, 
  5.33  transferred, or encumbered free and clear of their interest or 
  5.34  encumbrance to satisfy claims under this section. 
  5.35     Sec. 5.  Minnesota Statutes 2002, section 256B.15, is 
  5.36  amended by adding a subdivision to read: 
  6.1      Subd. 1e.  [FULL OR PARTIAL RELEASE OF NOTICE.] (a) The 
  6.2   claimant may fully or partially release the notice and the lien 
  6.3   arising out of the notice of record in the real estate records 
  6.4   where the notice is filed or recorded at any time.  The claimant 
  6.5   may give a full or partial release to extinguish any life 
  6.6   estates or joint tenancy interests which are or may be continued 
  6.7   under this section or whose existence or nonexistence may create 
  6.8   a cloud on the title to real property at any time whether or not 
  6.9   a notice has been filed.  The recorder or registrar of titles 
  6.10  shall accept the release for recording or filing.  If the 
  6.11  release is a partial release, it must include a legal 
  6.12  description of the property being released. 
  6.13     (b) At any time, the claimant may, at the claimant's 
  6.14  discretion, wholly or partially release, subordinate, modify, or 
  6.15  amend the recorded notice and the lien arising out of the notice.
  6.16     Sec. 6.  Minnesota Statutes 2002, section 256B.15, is 
  6.17  amended by adding a subdivision to read: 
  6.18     Subd. 1f.  [AGENCY LIEN.] (a) The notice shall constitute a 
  6.19  lien in favor of the department of human services against the 
  6.20  recipient's interests in the real estate it describes for a 
  6.21  period of 20 years from the date of filing or the date of the 
  6.22  recipient's death, whichever is later.  Notwithstanding any law 
  6.23  or rule to the contrary, a recipient's life estate and joint 
  6.24  tenancy interests shall not end upon the recipient's death but 
  6.25  shall continue according to subdivisions 1h, 1i, and 1j.  The 
  6.26  amount of the lien shall be equal to the total amount of the 
  6.27  claims that could be presented in the recipient's estate under 
  6.28  this section. 
  6.29     (b) If no estate has been opened for the deceased 
  6.30  recipient, any holder of an interest in the property may apply 
  6.31  to the lien holder for a statement of the amount of the lien or 
  6.32  for a full or partial release of the lien.  The application 
  6.33  shall include the applicant's name, current mailing address, 
  6.34  current home and work telephone numbers, and a description of 
  6.35  their interest in the property, a legal description of the 
  6.36  recipient's interest in the property, and the deceased 
  7.1   recipient's name, date of birth, and social security number.  
  7.2   The lien holder shall send the applicant by certified mail, 
  7.3   return receipt requested, a written statement showing the amount 
  7.4   of the lien, whether the lien holder is willing to release the 
  7.5   lien and under what conditions, and inform them of the right to 
  7.6   a hearing under section 256.045.  The lien holder shall have the 
  7.7   discretion to compromise and settle the lien upon any terms and 
  7.8   conditions the lien holder deems appropriate. 
  7.9      (c) Any holder of an interest in property subject to the 
  7.10  lien has a right to request a hearing under section 256.045 to 
  7.11  determine the validity, extent, or amount of the lien.  The 
  7.12  request must be in writing, and must include the names, current 
  7.13  addresses, and home and business telephone numbers for all other 
  7.14  parties holding an interest in the property.  A request for a 
  7.15  hearing by any holder of an interest in the property shall be 
  7.16  deemed to be a request for a hearing by all parties owning 
  7.17  interests in the property.  Notice of the hearing shall be given 
  7.18  to the lien holder, the party filing the appeal, and all of the 
  7.19  other holders of interests in the property at the addresses 
  7.20  listed in the appeal by certified mail, return receipt 
  7.21  requested, or by ordinary mail.  Any owner of an interest in the 
  7.22  property to whom notice of the hearing is mailed shall be deemed 
  7.23  to have waived any and all claims or defenses in respect to the 
  7.24  lien unless they appear and assert any claims or defenses at the 
  7.25  hearing. 
  7.26     (d) If the claim the lien secures could be filed under 
  7.27  subdivision 1h, the lien holder may collect, compromise, settle, 
  7.28  or release the lien upon any terms and conditions it deems 
  7.29  appropriate.  If the claim the lien secures could be filed under 
  7.30  subdivision 1i or 1j, the lien may be adjusted or enforced to 
  7.31  the same extent had it been filed under subdivisions 1i and 1j, 
  7.32  and the provisions of subdivisions 1i, clause (f), and lj, 
  7.33  clause (d), shall apply to voluntary payment, settlement, or 
  7.34  satisfaction of the lien. 
  7.35     (e) If no probate proceedings have been commenced for the 
  7.36  recipient as of the date the lien holder executes a release of 
  8.1   the lien on a recipient's life estate or joint tenancy interest, 
  8.2   created for purposes of this section, the release shall 
  8.3   terminate the life estate or joint tenancy interest created 
  8.4   under this section as of the date it is recorded or filed to the 
  8.5   extent of the release.  If the claimant executes a release for 
  8.6   purposes of extinguishing a life estate or a joint tenancy 
  8.7   interest created under this section to remove a cloud on title 
  8.8   to real property, the release shall have the effect of 
  8.9   extinguishing any life estate or joint tenancy interests in the 
  8.10  property it describes which may have been continued by reason of 
  8.11  this section retroactive to the date of death of the deceased 
  8.12  life tenant or joint tenant except as provided for in section 
  8.13  514.981, subdivision 6. 
  8.14     (f) If the deceased recipient's estate is probated, a claim 
  8.15  shall be filed under this section.  The amount of the lien shall 
  8.16  be limited to the amount of the claim as finally allowed.  If 
  8.17  the claim the lien secures is filed under subdivision 1h, the 
  8.18  lien may be released in full after any allowance of the claim 
  8.19  becomes final or according to any agreement to settle and 
  8.20  satisfy the claim.  The release shall release the lien but shall 
  8.21  not extinguish or terminate the interest being released.  If the 
  8.22  claim the lien secures is filed under subdivision 1i or 1j, the 
  8.23  lien shall be released after the lien under subdivision 1i or 1j 
  8.24  is filed or recorded, or settled according to any agreement to 
  8.25  settle and satisfy the claim.  The release shall not extinguish 
  8.26  or terminate the interest being released.  If the claim is 
  8.27  finally disallowed in full, the claimant shall release the 
  8.28  claimant's lien at the claimant's expense. 
  8.29     [EFFECTIVE DATE.] This section takes effect on August 1, 
  8.30  2003, and applies to the estates of decedents who die on or 
  8.31  after that date. 
  8.32     Sec. 7.  Minnesota Statutes 2002, section 256B.15, is 
  8.33  amended by adding a subdivision to read: 
  8.34     Subd. 1g.  [ESTATE PROPERTY.] Notwithstanding any law or 
  8.35  rule to the contrary, if a claim is presented under this 
  8.36  section, interests or the proceeds of interests in real property 
  9.1   a decedent owned as a life tenant or a joint tenant with a right 
  9.2   of survivorship shall be part of the decedent's estate, subject 
  9.3   to administration, and shall be dealt with as provided in this 
  9.4   section. 
  9.5      [EFFECTIVE DATE.] This section takes effect on August 1, 
  9.6   2003, and applies to the estates of decedents who die on or 
  9.7   after that date. 
  9.8      Sec. 8.  Minnesota Statutes 2002, section 256B.15, is 
  9.9   amended by adding a subdivision to read: 
  9.10     Subd. 1h.  [ESTATES OF SPECIFIC PERSONS RECEIVING MEDICAL 
  9.11  ASSISTANCE.] (a) For purposes of this section, paragraphs (b) to 
  9.12  (k) apply if a person received medical assistance for which a 
  9.13  claim may be filed under this section and died single, or the 
  9.14  surviving spouse of the couple and was not survived by any of 
  9.15  the persons described in subdivisions 3 and 4. 
  9.16     (b) For purposes of this section, the person's estate 
  9.17  consists of:  (1) their probate estate; (2) all of the person's 
  9.18  interests or proceeds of those interests in real property the 
  9.19  person owned as a life tenant or as a joint tenant with a right 
  9.20  of survivorship at the time of the person's death; (3) all of 
  9.21  the person's interests or proceeds of those interests in 
  9.22  securities the person owned in beneficiary form as provided 
  9.23  under sections 524.6-301 to 524.6-311 at the time of the 
  9.24  person's death, to the extent they become part of the probate 
  9.25  estate under section 524.6-307; and (4) all of the person's 
  9.26  interests in joint accounts, multiple party accounts, and pay on 
  9.27  death accounts, or the proceeds of those accounts, as provided 
  9.28  under sections 524.6-201 to 524.6-214 at the time of the 
  9.29  person's death to the extent they become part of the probate 
  9.30  estate under section 524.6-207.  Notwithstanding any law or rule 
  9.31  to the contrary, a state or county agency with a claim under 
  9.32  this section shall be a creditor under section 524.6-307. 
  9.33     (c) Notwithstanding any law or rule to the contrary, the 
  9.34  person's life estate or joint tenancy interest in real property 
  9.35  not subject to a medical assistance lien under sections 514.980 
  9.36  to 514.985 on the date of the person's death shall not end upon 
 10.1   the person's death and shall continue as provided in this 
 10.2   subdivision.  The life estate in the person's estate shall be 
 10.3   that portion of the interest in the real property subject to the 
 10.4   life estate which is equal to the percentage factor for the life 
 10.5   estate of the person and the medical assistance recipient's age 
 10.6   on the date of the person's death as listed in the Life Estate 
 10.7   Mortality Table of the health care program's manual.  The joint 
 10.8   tenancy interest in real property in the estate shall be equal 
 10.9   to the fractional interest the person would have owned in the 
 10.10  jointly held interest in the property had they and the other 
 10.11  owners held title to the property as tenants in common on the 
 10.12  date the person died. 
 10.13     (d) The court upon its own motion, or upon motion by the 
 10.14  personal representative or any interested party, may enter an 
 10.15  order directing the remaindermen or surviving joint tenants and 
 10.16  their spouses, if any, to sign all documents, take all actions, 
 10.17  and otherwise fully cooperate with the personal representative 
 10.18  and the court to liquidate the decedent's life estate or joint 
 10.19  tenancy interests in the estate and deliver the cash or the 
 10.20  proceeds of those interests to the personal representative and 
 10.21  provide for any legal and equitable sanctions as the court deems 
 10.22  appropriate to enforce and carry out the order, including an 
 10.23  award of reasonable attorney fees. 
 10.24     (e) The personal representative may make, execute, and 
 10.25  deliver any conveyances or other documents necessary to convey 
 10.26  the decedent's life estate or joint tenancy interest in the 
 10.27  estate that are necessary to liquidate and reduce to cash the 
 10.28  decedent's interest or for any other purposes. 
 10.29     (f) Subject to administration, all costs, including 
 10.30  reasonable attorney fees, directly and immediately related to 
 10.31  liquidating the decedent's life estate or joint tenancy interest 
 10.32  in the decedent's estate, shall be paid from the gross proceeds 
 10.33  of the liquidation allocable to the decedent's interest and the 
 10.34  net proceeds shall be turned over to the personal representative 
 10.35  and applied to payment of the claim presented under this section.
 10.36     (g) The personal representative shall bring a motion in the 
 11.1   district court in which the estate is being probated to compel 
 11.2   the remaindermen or surviving joint tenants to account for and 
 11.3   deliver to the personal representative all or any part of the 
 11.4   proceeds of any sale, mortgage, transfer, conveyance, or any 
 11.5   disposition of real property allocable to the decedent's life 
 11.6   estate or joint tenancy interest in the decedent's estate, and 
 11.7   do everything necessary to liquidate and reduce to cash the 
 11.8   decedent's interest and turn the proceeds of the sale or other 
 11.9   disposition over to the personal representative.  The court may 
 11.10  grant any legal or equitable relief including, but not limited 
 11.11  to, ordering a partition of real estate under chapter 558 
 11.12  necessary to make the value of the decedent's life estate or 
 11.13  joint tenancy interest available to the estate for payment of a 
 11.14  claim under this section. 
 11.15     (h) Subject to administration, the personal representative 
 11.16  shall use all of the cash or proceeds of interests to pay an 
 11.17  allowable claim under this section.  The remaindermen or 
 11.18  surviving joint tenants and their spouses, if any, may enter 
 11.19  into a written agreement with the personal representative or the 
 11.20  claimant to settle and satisfy obligations imposed at any time 
 11.21  before or after a claim is filed. 
 11.22     (i) The personal representative may provide any or all of 
 11.23  the other owners, remaindermen, or surviving joint tenants with 
 11.24  an affidavit terminating the decedent's estate's interest in 
 11.25  real property the decedent owned as a life tenant or as a joint 
 11.26  tenant with others, if the personal representative determines 
 11.27  that neither the decedent nor any of the decedent's predeceased 
 11.28  spouses received any medical assistance for which a claim could 
 11.29  be filed under this section, or if the personal representative 
 11.30  has filed an affidavit with the court that the estate has other 
 11.31  assets sufficient to pay a claim, as presented, or if there is a 
 11.32  written agreement under paragraph (h), or if the claim, as 
 11.33  allowed, has been paid in full or to the full extent of the 
 11.34  assets the estate has available to pay it.  The affidavit may be 
 11.35  recorded in the office of the county recorder or filed in the 
 11.36  office of the registrar of titles for the county in which the 
 12.1   real property is located.  Except as provided in section 
 12.2   514.981, subdivision 6, when recorded or filed, the affidavit 
 12.3   shall terminate the decedent's interest in real estate the 
 12.4   decedent owned as a life tenant or a joint tenant with others.  
 12.5   The affidavit shall:  (1) be signed by the personal 
 12.6   representative; (2) identify the decedent and the interest being 
 12.7   terminated; (3) give recording information sufficient to 
 12.8   identify the instrument that created the interest in real 
 12.9   property being terminated; (4) legally describe the affected 
 12.10  real property; (5) state that the personal representative has 
 12.11  determined that neither the decedent nor any of the decedent's 
 12.12  predeceased spouses received any medical assistance for which a 
 12.13  claim could be filed under this section; (6) state that the 
 12.14  decedent's estate has other assets sufficient to pay the claim, 
 12.15  as presented, or that there is a written agreement between the 
 12.16  personal representative and the claimant and the other owners or 
 12.17  remaindermen or other joint tenants to satisfy the obligations 
 12.18  imposed under this subdivision; and (7) state that the affidavit 
 12.19  is being given to terminate the estate's interest under this 
 12.20  subdivision, and any other contents as may be appropriate.  
 12.21  The recorder or registrar of titles shall accept the affidavit 
 12.22  for recording or filing.  The affidavit shall be effective as 
 12.23  provided in this section and shall constitute notice even if it 
 12.24  does not include recording information sufficient to identify 
 12.25  the instrument creating the interest it terminates.  The 
 12.26  affidavit shall be conclusive evidence of the stated facts. 
 12.27     (j) The holder of a lien arising under subdivision 1c shall 
 12.28  release the lien at the holder's expense against an interest 
 12.29  terminated under paragraph (h) to the extent of the termination. 
 12.30     (k) If a lien arising under subdivision 1c is not released 
 12.31  under paragraph (j), prior to closing the estate, the personal 
 12.32  representative shall deed the interest subject to the lien to 
 12.33  the remaindermen or surviving joint tenants as their interests 
 12.34  may appear.  Upon recording or filing, the deed shall work a 
 12.35  merger of the recipient's life estate or joint tenancy interest, 
 12.36  subject to the lien, into the remainder interest or interest the 
 13.1   decedent and others owned jointly.  The lien shall attach to and 
 13.2   run with the property to the extent of the decedent's interest 
 13.3   at the time of the decedent's death. 
 13.4      [EFFECTIVE DATE.] This section takes effect on August 1, 
 13.5   2003, and applies to the estates of decedents who die on or 
 13.6   after that date. 
 13.7      Sec. 9.  Minnesota Statutes 2002, section 256B.15, is 
 13.8   amended by adding a subdivision to read: 
 13.9      Subd. 1i.  [ESTATES OF PERSONS RECEIVING MEDICAL ASSISTANCE 
 13.10  AND SURVIVED BY OTHERS.] (a) For purposes of this subdivision, 
 13.11  the person's estate consists of the person's probate estate and 
 13.12  all of the person's interests in real property the person owned 
 13.13  as a life tenant or a joint tenant at the time of the person's 
 13.14  death. 
 13.15     (b) Notwithstanding any law or rule to the contrary, this 
 13.16  subdivision applies if a person received medical assistance for 
 13.17  which a claim could be filed under this section but for the fact 
 13.18  the person was survived by a spouse or by a person listed in 
 13.19  subdivision 3, or if subdivision 4 applies to a claim arising 
 13.20  under this section. 
 13.21     (c) The person's life estate or joint tenancy interests in 
 13.22  real property not subject to a medical assistance lien under 
 13.23  sections 514.980 to 514.985 on the date of the person's death 
 13.24  shall not end upon death and shall continue as provided in this 
 13.25  subdivision.  The life estate in the estate shall be the portion 
 13.26  of the interest in the property subject to the life estate that 
 13.27  is equal to the percentage factor for the life estate of the 
 13.28  medical assistance recipient's age on the date of the person's 
 13.29  death as listed in the Life Estate Mortality Table in the health 
 13.30  care program's manual.  The joint tenancy interest in the estate 
 13.31  shall be equal to the fractional interest the medical assistance 
 13.32  recipient would have owned in the jointly held interest in the 
 13.33  property had they and the other owners held title to the 
 13.34  property as tenants in common on the date the medical assistance 
 13.35  recipient died. 
 13.36     (d) The county agency shall file a claim in the estate 
 14.1   under this section on behalf of the claimant who shall be the 
 14.2   commissioner of human services, notwithstanding that the 
 14.3   decedent is survived by a spouse or a person listed in 
 14.4   subdivision 3.  The claim, as allowed, shall not be paid by the 
 14.5   estate and shall be disposed of as provided in this paragraph.  
 14.6   The personal representative or the court shall make, execute, 
 14.7   and deliver a lien in favor of the claimant on the decedent's 
 14.8   interest in real property in the estate in the amount of the 
 14.9   allowed claim on forms provided by the commissioner to the 
 14.10  county agency filing the lien.  The lien shall bear interest as 
 14.11  provided under section 524.3-806, shall attach to the property 
 14.12  it describes upon filing or recording, and shall remain a lien 
 14.13  on the real property it describes for a period of 20 years from 
 14.14  the date it is filed or recorded.  The lien shall be a 
 14.15  disposition of the claim sufficient to permit the estate to 
 14.16  close. 
 14.17     (e) The state or county agency shall file or record the 
 14.18  lien in the office of the county recorder or registrar of titles 
 14.19  for each county in which any of the real property is located.  
 14.20  The recorder or registrar of titles shall accept the lien for 
 14.21  filing or recording.  All recording or filing fees shall be paid 
 14.22  by the department of human services.  The recorder or registrar 
 14.23  of titles shall mail the recorded lien to the department of 
 14.24  human services.  The lien need not be attested, certified, or 
 14.25  acknowledged as a condition of recording or filing.  Upon 
 14.26  recording or filing of a lien against a life estate or a joint 
 14.27  tenancy interest, the interest subject to the lien shall merge 
 14.28  into the remainder interest or the interest the recipient and 
 14.29  others owned jointly.  The lien shall attach to and run with the 
 14.30  property to the extent of the decedent's interest in the 
 14.31  property at the time of the decedent's death as determined under 
 14.32  this section.  
 14.33     (f) The department shall make no adjustment or recovery 
 14.34  under the lien until after the decedent's spouse, if any, has 
 14.35  died, and only at a time when the decedent has no surviving 
 14.36  child described in subdivision 3.  The estate, any owner of an 
 15.1   interest in the property which is or may be subject to the lien, 
 15.2   or any other interested party, may voluntarily pay off, settle, 
 15.3   or otherwise satisfy the claim secured or to be secured by the 
 15.4   lien at any time before or after the lien is filed or recorded.  
 15.5   Such payoffs, settlements, and satisfactions shall be deemed to 
 15.6   be voluntary repayments of past medical assistance payments for 
 15.7   the benefit of the deceased recipient, and neither the process 
 15.8   of settling the claim, the payment of the claim, or the 
 15.9   acceptance of a payment shall constitute an adjustment or 
 15.10  recovery that is prohibited under this subdivision. 
 15.11     (g) The lien under this subdivision may be enforced or 
 15.12  foreclosed in the manner provided by law for the enforcement of 
 15.13  judgment liens against real estate or by a foreclosure by action 
 15.14  under chapter 581.  When the lien is paid, satisfied, or 
 15.15  otherwise discharged, the state or county agency shall prepare 
 15.16  and file a release of lien at its own expense.  No action to 
 15.17  foreclose the lien shall be commenced unless the lien holder has 
 15.18  first given 30 days' prior written notice to pay the lien to the 
 15.19  owners and parties in possession of the property subject to the 
 15.20  lien.  The notice shall:  (1) include the name, address, and 
 15.21  telephone number of the lien holder; (2) describe the lien; (3) 
 15.22  give the amount of the lien; (4) inform the owner or party in 
 15.23  possession that payment of the lien in full must be made to the 
 15.24  lien holder within 30 days after service of the notice or the 
 15.25  lien holder may begin proceedings to foreclose the lien; and (5) 
 15.26  be served by personal service, certified mail, return receipt 
 15.27  requested, ordinary first class mail, or by publishing it once 
 15.28  in a newspaper of general circulation in the county in which any 
 15.29  part of the property is located.  Service of the notice shall be 
 15.30  complete upon mailing or publication. 
 15.31     [EFFECTIVE DATE.] This section takes effect August 1, 2003, 
 15.32  and applies to estates of decedents who die on and after that 
 15.33  date. 
 15.34     Sec. 10.  Minnesota Statutes 2002, section 256B.15, is 
 15.35  amended by adding a subdivision to read: 
 15.36     Subd. 1j.  [CLAIMS IN ESTATES OF DECEDENTS SURVIVED BY 
 16.1   OTHER SURVIVORS.] For purposes of this subdivision, the 
 16.2   provisions in subdivision 1i, paragraphs (a) to (c) apply. 
 16.3      (a) If payment of a claim filed under this section is 
 16.4   limited as provided in subdivision 4, and if the estate does not 
 16.5   have other assets sufficient to pay the claim in full, as 
 16.6   allowed, the personal representative or the court shall make, 
 16.7   execute, and deliver a lien on the property in the estate that 
 16.8   is exempt from the claim under subdivision 4 in favor of the 
 16.9   commissioner of human services on forms provided by the 
 16.10  commissioner to the county agency filing the claim.  If the 
 16.11  estate pays a claim filed under this section in full from other 
 16.12  assets of the estate, no lien shall be filed against the 
 16.13  property described in subdivision 4. 
 16.14     (b) The lien shall be in an amount equal to the unpaid 
 16.15  balance of the allowed claim under this section remaining after 
 16.16  the estate has applied all other available assets of the estate 
 16.17  to pay the claim.  The property exempt under subdivision 4 shall 
 16.18  not be sold, assigned, transferred, conveyed, encumbered, or 
 16.19  distributed until after the personal representative has 
 16.20  determined the estate has other assets sufficient to pay the 
 16.21  allowed claim in full, or until after the lien has been filed or 
 16.22  recorded.  The lien shall bear interest as provided under 
 16.23  section 524.3-806, shall attach to the property it describes 
 16.24  upon filing or recording, and shall remain a lien on the real 
 16.25  property it describes for a period of 20 years from the date it 
 16.26  is filed or recorded.  The lien shall be a disposition of the 
 16.27  claim sufficient to permit the estate to close. 
 16.28     (c) The state or county agency shall file or record the 
 16.29  lien in the office of the county recorder or registrar of titles 
 16.30  in each county in which any of the real property is located.  
 16.31  The department shall pay the filing fees.  The lien need not be 
 16.32  attested, certified, or acknowledged as a condition of recording 
 16.33  or filing.  The recorder or registrar of titles shall accept the 
 16.34  lien for filing or recording. 
 16.35     (d) The commissioner shall make no adjustment or recovery 
 16.36  under the lien until none of the persons listed in subdivision 4 
 17.1   are residing on the property or until the property is sold or 
 17.2   transferred.  The estate or any owner of an interest in the 
 17.3   property that is or may be subject to the lien, or any other 
 17.4   interested party, may voluntarily pay off, settle, or otherwise 
 17.5   satisfy the claim secured or to be secured by the lien at any 
 17.6   time before or after the lien is filed or recorded.  The 
 17.7   payoffs, settlements, and satisfactions shall be deemed to be 
 17.8   voluntary repayments of past medical assistance payments for the 
 17.9   benefit of the deceased recipient and neither the process of 
 17.10  settling the claim, the payment of the claim, or acceptance of a 
 17.11  payment shall constitute an adjustment or recovery that is 
 17.12  prohibited under this subdivision. 
 17.13     (e) A lien under this subdivision may be enforced or 
 17.14  foreclosed in the manner provided for by law for the enforcement 
 17.15  of judgment liens against real estate or by a foreclosure by 
 17.16  action under chapter 581.  When the lien has been paid, 
 17.17  satisfied, or otherwise discharged, the claimant shall prepare 
 17.18  and file a release of lien at the claimant's expense.  No action 
 17.19  to foreclose the lien shall be commenced unless the lien holder 
 17.20  has first given 30 days prior written notice to pay the lien to 
 17.21  the record owners of the property and the parties in possession 
 17.22  of the property subject to the lien.  The notice shall:  (1) 
 17.23  include the name, address, and telephone number of the lien 
 17.24  holder; (2) describe the lien; (3) give the amount of the lien; 
 17.25  (4) inform the owner or party in possession that payment of the 
 17.26  lien in full must be made to the lien holder within 30 days 
 17.27  after service of the notice or the lien holder may begin 
 17.28  proceedings to foreclose the lien; and (5) be served by personal 
 17.29  service, certified mail, return receipt requested, ordinary 
 17.30  first class mail, or by publishing it once in a newspaper of 
 17.31  general circulation in the county in which any part of the 
 17.32  property is located.  Service shall be complete upon mailing or 
 17.33  publication. 
 17.34     (f) Upon filing or recording of a lien against a life 
 17.35  estate or joint tenancy interest under this subdivision, the 
 17.36  interest subject to the lien shall merge into the remainder 
 18.1   interest or the interest the decedent and others owned jointly, 
 18.2   effective on the date of recording and filing.  The lien shall 
 18.3   attach to and run with the property to the extent of the 
 18.4   decedent's interest in the property at the time of the 
 18.5   decedent's death as determined under this section. 
 18.6      (g)(1) An affidavit may be provided by a personal 
 18.7   representative stating the personal representative has 
 18.8   determined in good faith that a decedent survived by a spouse or 
 18.9   a person listed in subdivision 3, or by a person listed in 
 18.10  subdivision 4, or the decedent's predeceased spouse did not 
 18.11  receive any medical assistance giving rise to a claim under this 
 18.12  section, or that the real property described in subdivision 4 is 
 18.13  not needed to pay in full a claim arising under this section. 
 18.14     (2) The affidavit shall:  (i) describe the property and the 
 18.15  interest being extinguished; (ii) name the decedent and give the 
 18.16  date of death; (iii) state the facts listed in clause (1); (iv) 
 18.17  state that the affidavit is being filed to terminate the life 
 18.18  estate or joint tenancy interest created under this subdivision; 
 18.19  (v) be signed by the personal representative; and (vi) contain 
 18.20  any other information that the affiant deems appropriate. 
 18.21     (3) Except as provided in section 514.981, subdivision 6, 
 18.22  when the affidavit is filed or recorded, the life estate or 
 18.23  joint tenancy interest in real property that the affidavit 
 18.24  describes shall be terminated effective as of the date of filing 
 18.25  or recording.  The termination shall be final and may not be set 
 18.26  aside for any reason. 
 18.27     [EFFECTIVE DATE.] This section takes effect on August 1, 
 18.28  2003, and applies to the estates of decedents who die on or 
 18.29  after that date. 
 18.30     Sec. 11.  Minnesota Statutes 2002, section 256B.15, is 
 18.31  amended by adding a subdivision to read: 
 18.32     Subd. 1k.  [FILING.] Any notice, lien, release, or other 
 18.33  document filed under subdivisions 1c to 1l, and any lien, 
 18.34  release of lien, or other documents relating to a lien filed 
 18.35  under subdivisions 1h and 1i must be filed or recorded in the 
 18.36  office of the county recorder or registrar of titles, as 
 19.1   appropriate, in the county where the affected real property is 
 19.2   located.  Notwithstanding section 386.77, the state or county 
 19.3   agency shall pay any applicable filing fee.  An attestation, 
 19.4   certification, or acknowledgment is not required as a condition 
 19.5   of filing.  If the property described in the filing is 
 19.6   registered property, the registrar of titles shall record the 
 19.7   filing on the certificate of title for each parcel of property 
 19.8   described in the filing.  If the property described in the 
 19.9   filing is abstract property, the recorder shall file and index 
 19.10  the property in the county's grantor-grantee indexes and any 
 19.11  tract indexes the county maintains for each parcel of property 
 19.12  described in the filing.  The recorder or registrar of titles 
 19.13  shall return the filed document to the party filing it at no 
 19.14  cost.  If the party making the filing provides a duplicate copy 
 19.15  of the filing, the recorder or registrar of titles shall show 
 19.16  the recording or filing data on the copy and return it to the 
 19.17  party at no extra cost. 
 19.18     [EFFECTIVE DATE.] This section takes effect on August 1, 
 19.19  2003, and applies to the estates of decedents who die on or 
 19.20  after that date. 
 19.21     Sec. 12.  Minnesota Statutes 2002, section 256B.15, 
 19.22  subdivision 3, is amended to read: 
 19.23     Subd. 3.  [SURVIVING SPOUSE, MINOR, BLIND, OR DISABLED 
 19.24  CHILDREN.] If a decedent who is survived by a spouse, or was 
 19.25  single, or who was the surviving spouse of a married couple, and 
 19.26  is survived by a child who is under age 21 or blind or 
 19.27  permanently and totally disabled according to the supplemental 
 19.28  security income program criteria, no a claim shall be filed 
 19.29  against the estate according to this section. 
 19.30     [EFFECTIVE DATE.] This section is effective August 1, 2003, 
 19.31  and applies to decedents who die on or after that date. 
 19.32     Sec. 13.  Minnesota Statutes 2002, section 256B.15, 
 19.33  subdivision 4, is amended to read: 
 19.34     Subd. 4.  [OTHER SURVIVORS.] If the decedent who was single 
 19.35  or the surviving spouse of a married couple is survived by one 
 19.36  of the following persons, a claim exists against the estate in 
 20.1   an amount not to exceed the value of the nonhomestead property 
 20.2   included in the estate and the personal representative shall 
 20.3   make, execute, and deliver to the county agency a lien against 
 20.4   the homestead property in the estate for any unpaid balance of 
 20.5   the claim to the claimant as provided under this section: 
 20.6      (a) a sibling who resided in the decedent medical 
 20.7   assistance recipient's home at least one year before the 
 20.8   decedent's institutionalization and continuously since the date 
 20.9   of institutionalization; or 
 20.10     (b) a son or daughter or a grandchild who resided in the 
 20.11  decedent medical assistance recipient's home for at least two 
 20.12  years immediately before the parent's or grandparent's 
 20.13  institutionalization and continuously since the date of 
 20.14  institutionalization, and who establishes by a preponderance of 
 20.15  the evidence having provided care to the parent or grandparent 
 20.16  who received medical assistance, that the care was provided 
 20.17  before institutionalization, and that the care permitted the 
 20.18  parent or grandparent to reside at home rather than in an 
 20.19  institution. 
 20.20     [EFFECTIVE DATE.] This section is effective August 1, 2003, 
 20.21  and applies to decedents who die on or after that date. 
 20.22     Sec. 14.  Minnesota Statutes 2002, section 514.981, 
 20.23  subdivision 6, is amended to read: 
 20.24     Subd. 6.  [TIME LIMITS; CLAIM LIMITS; LIENS ON LIFE ESTATES 
 20.25  AND JOINT TENANCIES.] (a) A medical assistance lien is a lien on 
 20.26  the real property it describes for a period of ten years from 
 20.27  the date it attaches according to section 514.981, subdivision 
 20.28  2, paragraph (a), except as otherwise provided for in sections 
 20.29  514.980 to 514.985.  The agency may renew a medical assistance 
 20.30  lien for an additional ten years from the date it would 
 20.31  otherwise expire by recording or filing a certificate of renewal 
 20.32  before the lien expires.  The certificate shall be recorded or 
 20.33  filed in the office of the county recorder or registrar of 
 20.34  titles for the county in which the lien is recorded or filed.  
 20.35  The certificate must refer to the recording or filing data for 
 20.36  the medical assistance lien it renews.  The certificate need not 
 21.1   be attested, certified, or acknowledged as a condition for 
 21.2   recording or filing.  The registrar of titles or the recorder 
 21.3   shall file, record, index, and return the certificate of renewal 
 21.4   in the same manner as provided for medical assistance liens in 
 21.5   section 514.982, subdivision 2. 
 21.6      (b) A medical assistance lien is not enforceable against 
 21.7   the real property of an estate to the extent there is a 
 21.8   determination by a court of competent jurisdiction, or by an 
 21.9   officer of the court designated for that purpose, that there are 
 21.10  insufficient assets in the estate to satisfy the agency's 
 21.11  medical assistance lien in whole or in part because of the 
 21.12  homestead exemption under section 256B.15, subdivision 4, the 
 21.13  rights of the surviving spouse or minor children under section 
 21.14  524.2-403, paragraphs (a) and (b), or claims with a priority 
 21.15  under section 524.3-805, paragraph (a), clauses (1) to (4).  For 
 21.16  purposes of this section, the rights of the decedent's adult 
 21.17  children to exempt property under section 524.2-403, paragraph 
 21.18  (b), shall not be considered costs of administration under 
 21.19  section 524.3-805, paragraph (a), clause (1). 
 21.20     (c) Notwithstanding any law or rule to the contrary, the 
 21.21  provisions in clauses (1) to (7) apply if a life estate subject 
 21.22  to a medical assistance lien ends according to its terms, or if 
 21.23  a medical assistance recipient who owns a life estate or any 
 21.24  interest in real property as a joint tenant that is subject to a 
 21.25  medical assistance lien dies. 
 21.26     (1) The medical assistance recipient's life estate or joint 
 21.27  tenancy interest in the real property shall not end upon the 
 21.28  recipient's death but shall merge into the remainder interest or 
 21.29  other interest in real property the medical assistance recipient 
 21.30  owned in joint tenancy with others.  The medical assistance lien 
 21.31  shall attach to and run with the remainder or other interest in 
 21.32  the real property to the extent of the medical assistance 
 21.33  recipient's interest in the property at the time of the 
 21.34  recipient's death as determined under this section. 
 21.35     (2) If the medical assistance recipient's interest was a 
 21.36  life estate in real property, the lien shall be a lien against 
 22.1   the portion of the remainder equal to the percentage factor for 
 22.2   the life estate of a person the medical assistance recipient's 
 22.3   age on the date the life estate ended according to its terms or 
 22.4   the date of the medical assistance recipient's death as listed 
 22.5   in the Life Estate Mortality Table in the health care program's 
 22.6   manual. 
 22.7      (3) If the medical assistance recipient owned the interest 
 22.8   in real property in joint tenancy with others, the lien shall be 
 22.9   a lien against the portion of that interest equal to the 
 22.10  fractional interest the medical assistance recipient would have 
 22.11  owned in the jointly owned interest had the medical assistance 
 22.12  recipient and the other owners held title to that interest as 
 22.13  tenants in common on the date the medical assistance recipient 
 22.14  died. 
 22.15     (4) The medical assistance lien shall remain a lien against 
 22.16  the remainder or other jointly owned interest for the length of 
 22.17  time and be renewable as provided in paragraph (a). 
 22.18     (5) Section 514.981, subdivision 5, paragraphs (a), clause 
 22.19  (4), (b), clauses (1) and (2); and subdivision 6, paragraph (b), 
 22.20  do not apply to medical assistance liens which attach to 
 22.21  interests in real property as provided under this subdivision. 
 22.22     (6) The continuation of a medical assistance recipient's 
 22.23  life estate or joint tenancy interest in real property after the 
 22.24  medical assistance recipient's death for the purpose of 
 22.25  recovering medical assistance provided for in sections 514.980 
 22.26  to 514.985 modifies common law principles holding that these 
 22.27  interests terminate on the death of the holder. 
 22.28     (7) Notwithstanding any law or rule to the contrary, no 
 22.29  release, satisfaction, discharge, or affidavit under section 
 22.30  256B.15 shall extinguish or terminate the life estate or joint 
 22.31  tenancy interest of a medical assistance recipient subject to a 
 22.32  lien under sections 514.980 to 514.985 on the date the recipient 
 22.33  dies. 
 22.34     (8) The provisions of clauses (1) to (7) do not apply to a 
 22.35  homestead owned of record, on the date the recipient dies, by 
 22.36  the recipient and the recipient's spouse as joint tenants with a 
 23.1   right of survivorship. 
 23.2      [EFFECTIVE DATE.] This section is effective August 1, 2003, 
 23.3   and applies to all medical assistance liens recorded or filed on 
 23.4   or after that date. 
 23.5                              ARTICLE 2
 23.6                     ADDITIONAL JUDICIARY ISSUES
 23.7      Section 1.  Minnesota Statutes 2002, section 256B.15, 
 23.8   subdivision 1, is amended to read: 
 23.9      Subdivision 1.  [DEFINITION.] For purposes of this section, 
 23.10  "medical assistance" includes the medical assistance program 
 23.11  under this chapter and the general assistance medical care 
 23.12  program under chapter 256D, but does not include the alternative 
 23.13  care program for nonmedical assistance recipients under section 
 23.14  256B.0913, subdivision 4 and alternative care for nonmedical 
 23.15  assistance recipients under section 256B.0913. 
 23.16     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 23.17  for decedents dying on or after that date. 
 23.18     Sec. 2.  Minnesota Statutes 2002, section 256B.15, 
 23.19  subdivision 1a, is amended to read: 
 23.20     Subd. 1a.  [ESTATES SUBJECT TO CLAIMS.] If a person 
 23.21  receives any medical assistance hereunder, on the person's 
 23.22  death, if single, or on the death of the survivor of a married 
 23.23  couple, either or both of whom received medical assistance, the 
 23.24  total amount paid for medical assistance rendered for the person 
 23.25  and spouse shall be filed as a claim against the estate of the 
 23.26  person or the estate of the surviving spouse in the court having 
 23.27  jurisdiction to probate the estate or to issue a decree of 
 23.28  descent according to sections 525.31 to 525.313.  
 23.29     A claim shall be filed if medical assistance was rendered 
 23.30  for either or both persons under one of the following 
 23.31  circumstances: 
 23.32     (a) the person was over 55 years of age, and received 
 23.33  services under this chapter, excluding alternative care; 
 23.34     (b) the person resided in a medical institution for six 
 23.35  months or longer, received services under this chapter excluding 
 23.36  alternative care, and, at the time of institutionalization or 
 24.1   application for medical assistance, whichever is later, the 
 24.2   person could not have reasonably been expected to be discharged 
 24.3   and returned home, as certified in writing by the person's 
 24.4   treating physician.  For purposes of this section only, a 
 24.5   "medical institution" means a skilled nursing facility, 
 24.6   intermediate care facility, intermediate care facility for 
 24.7   persons with mental retardation, nursing facility, or inpatient 
 24.8   hospital; or 
 24.9      (c) the person received general assistance medical care 
 24.10  services under chapter 256D.  
 24.11     The claim shall be considered an expense of the last 
 24.12  illness of the decedent for the purpose of section 524.3-805.  
 24.13  Any statute of limitations that purports to limit any county 
 24.14  agency or the state agency, or both, to recover for medical 
 24.15  assistance granted hereunder shall not apply to any claim made 
 24.16  hereunder for reimbursement for any medical assistance granted 
 24.17  hereunder.  Notice of the claim shall be given to all heirs and 
 24.18  devisees of the decedent whose identity can be ascertained with 
 24.19  reasonable diligence.  The notice must include procedures and 
 24.20  instructions for making an application for a hardship waiver 
 24.21  under subdivision 5; time frames for submitting an application 
 24.22  and determination; and information regarding appeal rights and 
 24.23  procedures.  Counties are entitled to one-half of the nonfederal 
 24.24  share of medical assistance collections from estates that are 
 24.25  directly attributable to county effort.  Counties are entitled 
 24.26  to ten percent of the collections for alternative care directly 
 24.27  attributable to county effort. 
 24.28     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 24.29  for decedents dying on or after that date. 
 24.30     Sec. 3.  Minnesota Statutes 2002, section 256B.15, 
 24.31  subdivision 2, is amended to read: 
 24.32     Subd. 2.  [LIMITATIONS ON CLAIMS.] The claim shall include 
 24.33  only the total amount of medical assistance rendered after age 
 24.34  55 or during a period of institutionalization described in 
 24.35  subdivision 1a, clause (b), and the total amount of general 
 24.36  assistance medical care rendered, and shall not include 
 25.1   interest.  Claims that have been allowed but not paid shall bear 
 25.2   interest according to section 524.3-806, paragraph (d).  A claim 
 25.3   against the estate of a surviving spouse who did not receive 
 25.4   medical assistance, for medical assistance rendered for the 
 25.5   predeceased spouse, is limited to the value of the assets of the 
 25.6   estate that were marital property or jointly owned property at 
 25.7   any time during the marriage.  Claims for alternative care shall 
 25.8   be net of all premiums paid under section 256B.0913, subdivision 
 25.9   12, on or after July 1, 2003, and shall be limited to services 
 25.10  provided on or after July 1, 2003. 
 25.11     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 25.12  for decedents dying on or after that date. 
 25.13     Sec. 4.  [514.991] [ALTERNATIVE CARE LIENS; DEFINITIONS.] 
 25.14     Subdivision 1.  [APPLICABILITY.] The definitions in this 
 25.15  section apply to sections 514.991 to 514.995. 
 25.16     Subd. 2.  [ALTERNATIVE CARE AGENCY, AGENCY, OR 
 25.17  DEPARTMENT.] "Alternative care agency," "agency," or "department"
 25.18  means the department of human services when it pays for or 
 25.19  provides alternative care benefits for a nonmedical assistance 
 25.20  recipient directly or through a county social services agency 
 25.21  under chapter 256B according to section 256B.0913. 
 25.22     Subd. 3.  [ALTERNATIVE CARE BENEFIT OR 
 25.23  BENEFITS.] "Alternative care benefit" or "benefits" means a 
 25.24  benefit provided to a nonmedical assistance recipient under 
 25.25  chapter 256B according to section 256B.0913. 
 25.26     Subd. 4.  [ALTERNATIVE CARE RECIPIENT OR 
 25.27  RECIPIENT.] "Alternative care recipient" or "recipient" means a 
 25.28  person who receives alternative care grant benefits. 
 25.29     Subd. 5.  [ALTERNATIVE CARE LIEN OR LIEN.] "Alternative 
 25.30  care lien" or "lien" means a lien filed under sections 514.992 
 25.31  to 514.995. 
 25.32     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 25.33  for services for persons first enrolling in the alternative care 
 25.34  program on or after that date and on the first day of the first 
 25.35  eligibility renewal period for persons enrolled in the 
 25.36  alternative care program prior to July 1, 2003. 
 26.1      Sec. 5.  [514.992] [ALTERNATIVE CARE LIEN.] 
 26.2      Subdivision 1.  [PROPERTY SUBJECT TO LIEN; LIEN AMOUNT.] (a)
 26.3   Subject to sections 514.991 to 514.995, payments made by an 
 26.4   alternative care agency to provide benefits to a recipient or to 
 26.5   the recipient's spouse who owns property in this state 
 26.6   constitute a lien in favor of the agency on all real property 
 26.7   the recipient owns at and after the time the benefits are first 
 26.8   paid. 
 26.9      (b) The amount of the lien is limited to benefits paid for 
 26.10  services provided to recipients over 55 years of age and 
 26.11  provided on and after July 1, 2003. 
 26.12     Subd. 2.  [ATTACHMENT.] (a) A lien attaches to and becomes 
 26.13  enforceable against specific real property as of the date when 
 26.14  all of the following conditions are met: 
 26.15     (1) the agency has paid benefits for a recipient; 
 26.16     (2) the recipient has been given notice and an opportunity 
 26.17  for a hearing under paragraph (b); 
 26.18     (3) the lien has been filed as provided for in section 
 26.19  514.993 or memorialized on the certificate of title for the 
 26.20  property it describes; and 
 26.21     (4) all restrictions against enforcement have ceased to 
 26.22  apply. 
 26.23     (b) An agency may not file a lien until it has sent the 
 26.24  recipient, their authorized representative, or their legal 
 26.25  representative written notice of its lien rights by certified 
 26.26  mail, return receipt requested, or registered mail and there has 
 26.27  been an opportunity for a hearing under section 256.045.  No 
 26.28  person other than the recipient shall have a right to a hearing 
 26.29  under section 256.045 prior to the time the lien is filed.  The 
 26.30  hearing shall be limited to whether the agency has met all of 
 26.31  the prerequisites for filing the lien and whether any of the 
 26.32  exceptions in this section apply. 
 26.33     (c) An agency may not file a lien against the recipient's 
 26.34  homestead when any of the following exceptions apply: 
 26.35     (1) while the recipient's spouse is also physically present 
 26.36  and lawfully and continuously residing in the homestead; 
 27.1      (2) a child of the recipient who is under age 21 or who is 
 27.2   blind or totally and permanently disabled according to 
 27.3   supplemental security income criteria is also physically present 
 27.4   on the property and lawfully and continuously residing on the 
 27.5   property from and after the date the recipient first receives 
 27.6   benefits; 
 27.7      (3) a child of the recipient who has also lawfully and 
 27.8   continuously resided on the property for a period beginning at 
 27.9   least two years before the first day of the month in which the 
 27.10  recipient began receiving alternative care, and who provided 
 27.11  uncompensated care to the recipient which enabled the recipient 
 27.12  to live without alternative care services for the two-year 
 27.13  period; 
 27.14     (4) a sibling of the recipient who has an ownership 
 27.15  interest in the property of record in the office of the county 
 27.16  recorder or registrar of titles for the county in which the real 
 27.17  property is located and who has also continuously occupied the 
 27.18  homestead for a period of at least one year immediately prior to 
 27.19  the first day of the first month in which the recipient received 
 27.20  benefits and continuously since that date. 
 27.21     (d) A lien only applies to the real property it describes. 
 27.22     Subd. 3.  [CONTINUATION OF LIEN.] A lien remains effective 
 27.23  from the time it is filed until it is paid, satisfied, 
 27.24  discharged, or becomes unenforceable under sections 514.991 to 
 27.25  514.995. 
 27.26     Subd. 4.  [PRIORITY OF LIEN.] (a) A lien which attaches to 
 27.27  the real property it describes is subject to the rights of 
 27.28  anyone else whose interest in the real property is perfected of 
 27.29  record before the lien has been recorded or filed under section 
 27.30  514.993, including: 
 27.31     (1) an owner, other than the recipient or the recipient's 
 27.32  spouse; 
 27.33     (2) a good faith purchaser for value without notice of the 
 27.34  lien; 
 27.35     (3) a holder of a mortgage or security interest; or 
 27.36     (4) a judgment lien creditor whose judgment lien has 
 28.1   attached to the recipient's interest in the real property. 
 28.2      (b) The rights of the other person have the same 
 28.3   protections against an alternative care lien as are afforded 
 28.4   against a judgment lien that arises out of an unsecured 
 28.5   obligation and arises as of the time of the filing of an 
 28.6   alternative care grant lien under section 514.993.  The lien 
 28.7   shall be inferior to a lien for property taxes and special 
 28.8   assessments and shall be superior to all other matters first 
 28.9   appearing of record after the time and date the lien is filed or 
 28.10  recorded. 
 28.11     Subd. 5.  [SETTLEMENT, SUBORDINATION, AND RELEASE.] (a) An 
 28.12  agency may, with absolute discretion, settle or subordinate the 
 28.13  lien to any other lien or encumbrance of record upon the terms 
 28.14  and conditions it deems appropriate. 
 28.15     (b) The agency filing the lien shall release and discharge 
 28.16  the lien: 
 28.17     (1) if it has been paid, discharged, or satisfied; 
 28.18     (2) if it has received reimbursement for the amounts 
 28.19  secured by the lien, has entered into a binding and legally 
 28.20  enforceable agreement under which it is reimbursed for the 
 28.21  amount of the lien, or receives other collateral sufficient to 
 28.22  secure payment of the lien; 
 28.23     (3) against some, but not all, of the property it describes 
 28.24  upon the terms, conditions, and circumstances the agency deems 
 28.25  appropriate; 
 28.26     (4) to the extent it cannot be lawfully enforced against 
 28.27  the property it describes because of an error, omission, or 
 28.28  other material defect in the legal description contained in the 
 28.29  lien or a necessary prerequisite to enforcement of the lien; and 
 28.30     (5) if, in its discretion, it determines the filing or 
 28.31  enforcement of the lien is contrary to the public interest. 
 28.32     (c) The agency executing the lien shall execute and file 
 28.33  the release as provided for in section 514.993, subdivision 2. 
 28.34     Subd. 6.  [LENGTH OF LIEN.] (a) A lien shall be a lien on 
 28.35  the real property it describes for a period of ten years from 
 28.36  the date it attaches according to subdivision 2, paragraph (a), 
 29.1   except as otherwise provided for in sections 514.992 to 
 29.2   514.995.  The agency filing the lien may renew the lien for one 
 29.3   additional ten-year period from the date it would otherwise 
 29.4   expire by recording or filing a certificate of renewal before 
 29.5   the lien expires.  The certificate of renewal shall be recorded 
 29.6   or filed in the office of the county recorder or registrar of 
 29.7   titles for the county in which the lien is recorded or filed.  
 29.8   The certificate must refer to the recording or filing data for 
 29.9   the lien it renews.  The certificate need not be attested, 
 29.10  certified, or acknowledged as a condition for recording or 
 29.11  filing.  The recorder or registrar of titles shall record, file, 
 29.12  index, and return the certificate of renewal in the same manner 
 29.13  provided for liens in section 514.993, subdivision 2. 
 29.14     (b) An alternative care lien is not enforceable against the 
 29.15  real property of an estate to the extent there is a 
 29.16  determination by a court of competent jurisdiction, or by an 
 29.17  officer of the court designated for that purpose, that there are 
 29.18  insufficient assets in the estate to satisfy the lien in whole 
 29.19  or in part because of the homestead exemption under section 
 29.20  256B.15, subdivision 4, the rights of a surviving spouse or a 
 29.21  minor child under section 524.2-403, paragraphs (a) and (b), or 
 29.22  claims with a priority under section 524.3-805, paragraph (a), 
 29.23  clauses (1) to (4).  For purposes of this section, the rights of 
 29.24  the decedent's adult children to exempt property under section 
 29.25  524.2-403, paragraph (b), shall not be considered costs of 
 29.26  administration under section 524.3-805, paragraph (a), clause 
 29.27  (1). 
 29.28     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 29.29  for services for persons first enrolling in the alternative care 
 29.30  program on or after that date and on the first day of the first 
 29.31  eligibility renewal period for persons enrolled in the 
 29.32  alternative care program prior to July 1, 2003. 
 29.33     Sec. 6.  [514.993] [LIEN; CONTENTS AND FILING.] 
 29.34     Subdivision 1.  [CONTENTS.] A lien shall be dated and must 
 29.35  contain: 
 29.36     (1) the recipient's full name, last known address, and 
 30.1   social security number; 
 30.2      (2) a statement that benefits have been paid to or for the 
 30.3   recipient's benefit; 
 30.4      (3) a statement that all of the recipient's interests in 
 30.5   the in the real property described in the lien may be subject to 
 30.6   or affected by the agency's right to reimbursement for benefits; 
 30.7      (4) a legal description of the real property subject to the 
 30.8   lien and whether it is registered or abstract property; 
 30.9      (5) such other contents, if any, as the agency deems 
 30.10  appropriate. 
 30.11     Subd. 2.  [FILING.] Any lien, release, or other document 
 30.12  required or permitted to be filed under sections 514.991 to 
 30.13  514.995 must be recorded or filed in the office of the county 
 30.14  recorder or registrar of titles, as appropriate, in the county 
 30.15  where the real property is located.  Notwithstanding section 
 30.16  386.77, the agency shall pay the applicable filing fee for any 
 30.17  documents filed under sections 514.991 to 514.995.  An 
 30.18  attestation, certification, or acknowledgment is not required as 
 30.19  a condition of filing.  If the property described in the lien is 
 30.20  registered property, the registrar of titles shall record it on 
 30.21  the certificate of title for each parcel of property described 
 30.22  in the lien.  If the property described in the lien is abstract 
 30.23  property, the recorder shall file the lien in the county's 
 30.24  grantor-grantee indexes and any tract indexes the county 
 30.25  maintains for each parcel of property described in the lien.  
 30.26  The recorder or registrar shall return the recorded or filed 
 30.27  lien to the agency at no cost.  If the agency provides a 
 30.28  duplicate copy of the lien, the recorder or registrar of titles 
 30.29  shall show the recording or filing data on the copy and return 
 30.30  it to the agency at no cost.  The agency is responsible for 
 30.31  filing any lien, release, or other documents under sections 
 30.32  514.991 to 514.995. 
 30.33     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 30.34  for services for persons first enrolling in the alternative care 
 30.35  program on or after that date and on the first day of the first 
 30.36  eligibility renewal period for persons enrolled in the 
 31.1   alternative care program prior to July 1, 2003. 
 31.2      Sec. 7.  [514.994] [ENFORCEMENT; OTHER REMEDIES.] 
 31.3      Subdivision 1.  [FORECLOSURE OR ENFORCEMENT OF LIEN.] The 
 31.4   agency may enforce or foreclose a lien filed under sections 
 31.5   514.991 to 514.995 in the manner provided for by law for 
 31.6   enforcement of judgment liens against real estate or by a 
 31.7   foreclosure by action under chapter 581.  The lien shall remain 
 31.8   enforceable as provided for in sections 514.991 to 514.995 
 31.9   notwithstanding any laws limiting the enforceability of 
 31.10  judgments. 
 31.11     Subd. 2.  [HOMESTEAD EXEMPTION.] The lien may not be 
 31.12  enforced against the homestead property of the recipient or the 
 31.13  spouse while they physically occupy it as their lawful residence.
 31.14     Subd. 3.  [AGENCY CLAIM OR REMEDY.] Sections 514.992 to 
 31.15  514.995 do not limit the agency's right to file a claim against 
 31.16  the recipient's estate or the estate of the recipient's spouse, 
 31.17  do not limit any other claims for reimbursement the agency may 
 31.18  have, and do not limit the availability of any other remedy to 
 31.19  the agency. 
 31.20     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 31.21  for services for persons first enrolling in the alternative care 
 31.22  program on or after that date and on the first day of the first 
 31.23  eligibility renewal period for persons enrolled in the 
 31.24  alternative care program prior to July 1, 2003. 
 31.25     Sec. 8.  [514.995] [AMOUNTS RECEIVED TO SATISFY LIEN.] 
 31.26     Amounts the agency receives to satisfy the lien must be 
 31.27  deposited in the state treasury and credited to the fund from 
 31.28  which the benefits were paid. 
 31.29     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 31.30  for services for persons first enrolling in the alternative care 
 31.31  program on or after that date and on the first day of the first 
 31.32  eligibility renewal period for persons enrolled in the 
 31.33  alternative care program prior to July 1, 2003. 
 31.34     Sec. 9.  Minnesota Statutes 2002, section 524.3-805, is 
 31.35  amended to read: 
 31.36     524.3-805 [CLASSIFICATION OF CLAIMS.] 
 32.1      (a) If the applicable assets of the estate are insufficient 
 32.2   to pay all claims in full, the personal representative shall 
 32.3   make payment in the following order: 
 32.4      (1) costs and expenses of administration; 
 32.5      (2) reasonable funeral expenses; 
 32.6      (3) debts and taxes with preference under federal law; 
 32.7      (4) reasonable and necessary medical, hospital, or nursing 
 32.8   home expenses of the last illness of the decedent, including 
 32.9   compensation of persons attending the decedent, a claim filed 
 32.10  under section 256B.15 for recovery of expenditures for 
 32.11  alternative care for nonmedical assistance recipients under 
 32.12  section 256B.0913, and including a claim filed pursuant to 
 32.13  section 256B.15; 
 32.14     (5) reasonable and necessary medical, hospital, and nursing 
 32.15  home expenses for the care of the decedent during the year 
 32.16  immediately preceding death; 
 32.17     (6) debts with preference under other laws of this state, 
 32.18  and state taxes; 
 32.19     (7) all other claims. 
 32.20     (b) No preference shall be given in the payment of any 
 32.21  claim over any other claim of the same class, and a claim due 
 32.22  and payable shall not be entitled to a preference over claims 
 32.23  not due, except that if claims for expenses of the last illness 
 32.24  involve only claims filed under section 256B.15 for recovery of 
 32.25  expenditures for alternative care for nonmedical assistance 
 32.26  recipients under section 256B.0913, section 246.53 for costs of 
 32.27  state hospital care and claims filed under section 256B.15, 
 32.28  claims filed to recover expenditures for alternative care for 
 32.29  nonmedical assistance recipients under section 256B.0913 shall 
 32.30  have preference over claims filed under both sections 246.53 and 
 32.31  other claims filed under section 256B.15, and claims filed under 
 32.32  section 246.53 have preference over claims filed under section 
 32.33  256B.15 for recovery of amounts other than those for 
 32.34  expenditures for alternative care for nonmedical assistance 
 32.35  recipients under section 256B.0913. 
 32.36     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
 33.1   for decedents dying on or after that date. 
 33.2                              ARTICLE 3
 33.3                            TAX LAW ISSUES
 33.4      Section 1.  Minnesota Statutes 2002, section 16A.724, is 
 33.5   amended to read: 
 33.6      16A.724 [HEALTH CARE ACCESS FUND.] 
 33.7      A health care access fund is created in the state 
 33.8   treasury.  The fund is a direct appropriated special revenue 
 33.9   fund.  The commissioner shall deposit to the credit of the fund 
 33.10  money made available to the fund.  Notwithstanding section 
 33.11  11A.20, after June 30, 1997, all investment income and all 
 33.12  investment losses attributable to the investment of the health 
 33.13  care access fund not currently needed shall be credited to the 
 33.14  health care access fund.  The health care access fund shall 
 33.15  sunset on June 30, 2005, and all remaining funds shall be 
 33.16  deposited in the general fund.  Beginning July 1, 2005, all 
 33.17  activities which would otherwise receive funding from the health 
 33.18  care access fund shall be funded out of the general fund. 
 33.19     Sec. 2.  Minnesota Statutes 2002, section 256L.02, is 
 33.20  amended by adding a subdivision to read: 
 33.21     Subd. 3a.  [FUNDING SOURCE.] Beginning July 1, 2005, all 
 33.22  MinnesotaCare obligations shall be funded out of the general 
 33.23  fund. 
 33.24     Sec. 3.  Minnesota Statutes 2002, section 261.063, is 
 33.25  amended to read: 
 33.26     261.063 [TAX LEVY FOR SOCIAL SERVICES; BOARD DUTY; 
 33.27  PENALTY.] 
 33.28     (a) The board of county commissioners of each county shall 
 33.29  annually levy taxes and fix a rate sufficient to produce the 
 33.30  full amount required for poor relief, general assistance, 
 33.31  Minnesota family investment program, diversionary work program, 
 33.32  county share of county and state supplemental aid to 
 33.33  supplemental security income applicants or recipients, and any 
 33.34  other social security measures wherein there is now or may 
 33.35  hereafter be county participation, sufficient to produce the 
 33.36  full amount necessary for each such item, including 
 34.1   administrative expenses, for the ensuing year, within the time 
 34.2   fixed by law in addition to all other tax levies and tax rates, 
 34.3   however fixed or determined, and any commissioner who shall fail 
 34.4   to comply herewith shall be guilty of a gross misdemeanor and 
 34.5   shall be immediately removed from office by the governor.  For 
 34.6   the purposes of this paragraph, "poor relief" means county 
 34.7   services provided under sections 261.035, 261.04, and 261.21 to 
 34.8   261.231. 
 34.9      (b) Nothing within the provisions of this section shall be 
 34.10  construed as requiring a county agency to provide income support 
 34.11  or cash assistance to needy persons when they are no longer 
 34.12  eligible for assistance under general assistance, the Minnesota 
 34.13  family investment program chapter 256J, or Minnesota 
 34.14  supplemental aid. 
 34.15     Sec. 4.  Minnesota Statutes 2002, section 295.58, is 
 34.16  amended to read: 
 34.17     295.58 [DEPOSIT OF REVENUES AND PAYMENT OF REFUNDS.] 
 34.18     The commissioner shall deposit all revenues, including 
 34.19  penalties and interest, derived from the taxes imposed by 
 34.20  sections 295.50 to 295.57 and from the insurance premiums tax 
 34.21  imposed by section 297I.05, subdivision 5, on health maintenance 
 34.22  organizations, community integrated service networks, and 
 34.23  nonprofit health service plan corporations in the health care 
 34.24  access fund.  There is annually appropriated from the health 
 34.25  care access fund to the commissioner of revenue the amount 
 34.26  necessary to make refunds under this chapter.  Beginning July 1, 
 34.27  2005, the commissioner shall deposit all revenues, including 
 34.28  penalties and interest, derived from the taxes imposed by 
 34.29  sections 295.50 to 295.57 and from the insurance premiums tax 
 34.30  imposed by section 297I.05, subdivision 5, on health maintenance 
 34.31  organizations, community integrated service networks, and 
 34.32  nonprofit health service plan corporations in the general fund.  
 34.33  There is annually appropriated from the general fund to the 
 34.34  commissioner of revenue the amount necessary to make refunds 
 34.35  under this chapter. 
 34.36                             ARTICLE 4
 35.1                       CRIME PREVENTION ISSUES
 35.2      Section 1.  Minnesota Statutes 2002, section 260B.157, 
 35.3   subdivision 1, is amended to read: 
 35.4      Subdivision 1.  [INVESTIGATION.] Upon request of the court 
 35.5   the local social services agency or probation officer shall 
 35.6   investigate the personal and family history and environment of 
 35.7   any minor coming within the jurisdiction of the court under 
 35.8   section 260B.101 and shall report its findings to the court.  
 35.9   The court may order any minor coming within its jurisdiction to 
 35.10  be examined by a duly qualified physician, psychiatrist, or 
 35.11  psychologist appointed by the court.  
 35.12     The court shall have a chemical use assessment conducted 
 35.13  when a child is (1) found to be delinquent for violating a 
 35.14  provision of chapter 152, or for committing a felony-level 
 35.15  violation of a provision of chapter 609 if the probation officer 
 35.16  determines that alcohol or drug use was a contributing factor in 
 35.17  the commission of the offense, or (2) alleged to be delinquent 
 35.18  for violating a provision of chapter 152, if the child is being 
 35.19  held in custody under a detention order.  The assessor's 
 35.20  qualifications and the assessment criteria shall comply with 
 35.21  Minnesota Rules, parts 9530.6600 to 9530.6655.  If funds under 
 35.22  chapter 254B are to be used to pay for the recommended 
 35.23  treatment, the assessment and placement must comply with all 
 35.24  provisions of Minnesota Rules, parts 9530.6600 to 9530.6655 and 
 35.25  9530.7000 to 9530.7030.  The commissioner of human services 
 35.26  shall reimburse the court for the cost of the chemical use 
 35.27  assessment, up to a maximum of $100. 
 35.28     The court shall have a children's mental health screening 
 35.29  conducted when a child is alleged to be delinquent or is found 
 35.30  to be delinquent.  The screening shall be conducted with a 
 35.31  screening instrument approved by the commissioner of human 
 35.32  services and shall be conducted by a mental health practitioner 
 35.33  as defined in section 245.4871, subdivision 26, or a probation 
 35.34  officer who is trained in the use of the screening instrument.  
 35.35  If the screening indicates a need for assessment, the local 
 35.36  social services agency, in consultation with the child's family, 
 36.1   shall have a diagnostic assessment conducted, including a 
 36.2   functional assessment, as defined in section 245.4871. 
 36.3      With the consent of the commissioner of corrections and 
 36.4   agreement of the county to pay the costs thereof, the court may, 
 36.5   by order, place a minor coming within its jurisdiction in an 
 36.6   institution maintained by the commissioner for the detention, 
 36.7   diagnosis, custody and treatment of persons adjudicated to be 
 36.8   delinquent, in order that the condition of the minor be given 
 36.9   due consideration in the disposition of the case.  Any funds 
 36.10  received under the provisions of this subdivision shall not 
 36.11  cancel until the end of the fiscal year immediately following 
 36.12  the fiscal year in which the funds were received.  The funds are 
 36.13  available for use by the commissioner of corrections during that 
 36.14  period and are hereby appropriated annually to the commissioner 
 36.15  of corrections as reimbursement of the costs of providing these 
 36.16  services to the juvenile courts.  
 36.17     Sec. 2.  Minnesota Statutes 2002, section 260B.176, 
 36.18  subdivision 2, is amended to read: 
 36.19     Subd. 2.  [REASONS FOR DETENTION.] (a) If the child is not 
 36.20  released as provided in subdivision 1, the person taking the 
 36.21  child into custody shall notify the court as soon as possible of 
 36.22  the detention of the child and the reasons for detention.  
 36.23     (b) No child may be detained in a juvenile secure detention 
 36.24  facility or shelter care facility longer than 36 hours, 
 36.25  excluding Saturdays, Sundays, and holidays, after being taken 
 36.26  into custody for a delinquent act as defined in section 
 36.27  260B.007, subdivision 6, unless a petition has been filed and 
 36.28  the judge or referee determines pursuant to section 260B.178 
 36.29  that the child shall remain in detention.  
 36.30     (c) No child may be detained in an adult jail or municipal 
 36.31  lockup longer than 24 hours, excluding Saturdays, Sundays, and 
 36.32  holidays, or longer than six hours in an adult jail or municipal 
 36.33  lockup in a standard metropolitan statistical area, after being 
 36.34  taken into custody for a delinquent act as defined in section 
 36.35  260B.007, subdivision 6, unless: 
 36.36     (1) a petition has been filed under section 260B.141; and 
 37.1      (2) a judge or referee has determined under section 
 37.2   260B.178 that the child shall remain in detention. 
 37.3      After August 1, 1991, no child described in this paragraph 
 37.4   may be detained in an adult jail or municipal lockup longer than 
 37.5   24 hours, excluding Saturdays, Sundays, and holidays, or longer 
 37.6   than six hours in an adult jail or municipal lockup in a 
 37.7   standard metropolitan statistical area, unless the requirements 
 37.8   of this paragraph have been met and, in addition, a motion to 
 37.9   refer the child for adult prosecution has been made under 
 37.10  section 260B.125.  Notwithstanding this paragraph, continued 
 37.11  detention of a child in an adult detention facility outside of a 
 37.12  standard metropolitan statistical area county is permissible if: 
 37.13     (i) the facility in which the child is detained is located 
 37.14  where conditions of distance to be traveled or other ground 
 37.15  transportation do not allow for court appearances within 24 
 37.16  hours.  A delay not to exceed 48 hours may be made under this 
 37.17  clause; or 
 37.18     (ii) the facility is located where conditions of safety 
 37.19  exist.  Time for an appearance may be delayed until 24 hours 
 37.20  after the time that conditions allow for reasonably safe 
 37.21  travel.  "Conditions of safety" include adverse life-threatening 
 37.22  weather conditions that do not allow for reasonably safe travel. 
 37.23     The continued detention of a child under clause (i) or (ii) 
 37.24  must be reported to the commissioner of corrections. 
 37.25     (d) If a child described in paragraph (c) is to be detained 
 37.26  in a jail beyond 24 hours, excluding Saturdays, Sundays, and 
 37.27  holidays, the judge or referee, in accordance with rules and 
 37.28  procedures established by the commissioner of corrections, shall 
 37.29  notify the commissioner of the place of the detention and the 
 37.30  reasons therefor.  The commissioner shall thereupon assist the 
 37.31  court in the relocation of the child in an appropriate juvenile 
 37.32  secure detention facility or approved jail within the county or 
 37.33  elsewhere in the state, or in determining suitable 
 37.34  alternatives.  The commissioner shall direct that a child 
 37.35  detained in a jail be detained after eight days from and 
 37.36  including the date of the original detention order in an 
 38.1   approved juvenile secure detention facility with the approval of 
 38.2   the administrative authority of the facility.  If the court 
 38.3   refers the matter to the prosecuting authority pursuant to 
 38.4   section 260B.125, notice to the commissioner shall not be 
 38.5   required.  
 38.6      (e) When a child is detained for an alleged delinquent act 
 38.7   in a state licensed juvenile facility or program, or when a 
 38.8   child is detained in an adult jail or municipal lockup as 
 38.9   provided in paragraph (c), the supervisor of the facility shall, 
 38.10  if the child's parent or legal guardian consents, have a 
 38.11  children's mental health screening conducted with a screening 
 38.12  instrument approved by the commissioner of human services, 
 38.13  unless a screening has been performed within the previous 180 
 38.14  days or the child is currently under the care of a mental health 
 38.15  professional.  The screening shall be conducted by a mental 
 38.16  health practitioner as defined in section 245.4871, subdivision 
 38.17  26, or a probation officer who is trained in the use of the 
 38.18  screening instrument.  The screening shall be conducted after 
 38.19  the initial detention hearing has been held and the court has 
 38.20  ordered the child continued in detention.  The results of the 
 38.21  screening may only be presented to the court at the 
 38.22  dispositional phase of the court proceedings on the matter.  If 
 38.23  the screening indicates a need for assessment, the local social 
 38.24  services agency or probation officer, with the approval of the 
 38.25  child's parent or legal guardian, shall have a diagnostic 
 38.26  assessment conducted, including a functional assessment, as 
 38.27  defined in section 245.4871. 
 38.28     Sec. 3.  Minnesota Statutes 2002, section 260B.178, 
 38.29  subdivision 1, is amended to read: 
 38.30     Subdivision 1.  [HEARING AND RELEASE REQUIREMENTS.] (a) The 
 38.31  court shall hold a detention hearing: 
 38.32     (1) within 36 hours of the time the child was taken into 
 38.33  custody, excluding Saturdays, Sundays, and holidays, if the 
 38.34  child is being held at a juvenile secure detention facility or 
 38.35  shelter care facility; or 
 38.36     (2) within 24 hours of the time the child was taken into 
 39.1   custody, excluding Saturdays, Sundays, and holidays, if the 
 39.2   child is being held at an adult jail or municipal lockup.  
 39.3      (b) Unless there is reason to believe that the child would 
 39.4   endanger self or others, not return for a court hearing, run 
 39.5   away from the child's parent, guardian, or custodian or 
 39.6   otherwise not remain in the care or control of the person to 
 39.7   whose lawful custody the child is released, or that the child's 
 39.8   health or welfare would be immediately endangered, the child 
 39.9   shall be released to the custody of a parent, guardian, 
 39.10  custodian, or other suitable person, subject to reasonable 
 39.11  conditions of release including, but not limited to, a 
 39.12  requirement that the child undergo a chemical use assessment as 
 39.13  provided in section 260B.157, subdivision 1, and a children's 
 39.14  mental health screening as provided in section 260B.176, 
 39.15  subdivision 2, paragraph (e).  In determining whether the 
 39.16  child's health or welfare would be immediately endangered, the 
 39.17  court shall consider whether the child would reside with a 
 39.18  perpetrator of domestic child abuse.  
 39.19     Sec. 4.  Minnesota Statutes 2002, section 260B.193, 
 39.20  subdivision 2, is amended to read: 
 39.21     Subd. 2.  [CONSIDERATION OF REPORTS.] Before making a 
 39.22  disposition in a case, or appointing a guardian for a child, the 
 39.23  court may consider any report or recommendation made by the 
 39.24  local social services agency, probation officer, licensed 
 39.25  child-placing agency, foster parent, guardian ad litem, tribal 
 39.26  representative, or other authorized advocate for the child or 
 39.27  child's family, a school district concerning the effect on 
 39.28  student transportation of placing a child in a school district 
 39.29  in which the child is not a resident, or any other information 
 39.30  deemed material by the court.  In addition, the court may 
 39.31  consider the results of the children's mental health screening 
 39.32  provided in section 260B.157, subdivision 1. 
 39.33     Sec. 5.  Minnesota Statutes 2002, section 260B.235, 
 39.34  subdivision 6, is amended to read: 
 39.35     Subd. 6.  [ALTERNATIVE DISPOSITION.] In addition to 
 39.36  dispositional alternatives authorized by subdivision 3 4, in the 
 40.1   case of a third or subsequent finding by the court pursuant to 
 40.2   an admission in court or after trial that a child has committed 
 40.3   a juvenile alcohol or controlled substance offense, the juvenile 
 40.4   court shall order a chemical dependency evaluation of the child 
 40.5   and if warranted by the evaluation, the court may order 
 40.6   participation by the child in an inpatient or outpatient 
 40.7   chemical dependency treatment program, or any other treatment 
 40.8   deemed appropriate by the court.  In the case of a third or 
 40.9   subsequent finding that a child has committed any juvenile petty 
 40.10  offense, the court shall order a children's mental health 
 40.11  screening be conducted as provided in section 260B.157, 
 40.12  subdivision 1, and if indicated by the screening, to undergo a 
 40.13  diagnostic assessment, including a functional assessment, as 
 40.14  defined in section 245.4871.