HF 214

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to human services; changing the effective
date for provisions allowing the continuation of a
recipient's life estate or joint tenancy interests for
purposes of medical assistance recoveries; requiring
the commissioner of human services to refund money
recovered; amending Minnesota Statutes 2004, sections
256B.15, subdivision 1; 514.981, subdivision 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 256B.15,
subdivision 1, is amended to read:

Subdivision 1.

Policy, applicability, purpose, and
construction; definition.

(a) It is the policy of this state
that individuals or couples, either or both of whom participate
in the medical assistance program, use their own assets to pay
their share of the total cost of their care during or after
their enrollment in the program according to applicable federal
law and the laws of this state. The following provisions apply:

(1) subdivisions 1c to 1k shall not apply to claims arising
under this section which are presented under section 525.313;

(2) the provisions of subdivisions 1c to 1k expanding the
interests included in an estate for purposes of recovery under
this section give effect to the provisions of United States
Code, title 42, section 1396p, governing recoveries, but do not
give rise to any express or implied liens in favor of any other
parties not named in these provisions;

(3) the continuation of a recipient's life estate or joint
tenancy interest in real property after the recipient's death
for the purpose of recovering medical assistance under this
section modifies common law principles holding that these
interests terminate on the death of the holder;

(4) all laws, rules, and regulations governing or involved
with a recovery of medical assistance shall be liberally
construed to accomplish their intended purposes;

(5) a deceased recipient's life estate and joint tenancy
interests continued under this section shall be owned by the
remaindermen or surviving joint tenants as their interests may
appear on the date of the recipient's death. They shall not be
merged into the remainder interest or the interests of the
surviving joint tenants by reason of ownership. They shall be
subject to the provisions of this section. Any conveyance,
transfer, sale, assignment, or encumbrance by a remainderman, a
surviving joint tenant, or their heirs, successors, and assigns
shall be deemed to include all of their interest in the deceased
recipient's life estate or joint tenancy interest continued
under this section; and

(6) the provisions of subdivisions 1c to 1k continuing a
recipient's joint tenancy interests in real property after the
recipient's death do not apply to a homestead owned of record,
on the date the recipient dies, by the recipient and the
recipient's spouse as joint tenants with a right of
survivorship. Homestead means the real property occupied by the
surviving joint tenant spouse as their sole residence on the
date the recipient dies and classified and taxed to the
recipient and surviving joint tenant spouse as homestead
property for property tax purposes in the calendar year in which
the recipient dies. For purposes of this exemption, real
property the recipient and their surviving joint tenant spouse
purchase solely with the proceeds from the sale of their prior
homestead, own of record as joint tenants, and qualify as
homestead property under section 273.124 in the calendar year in
which the recipient dies and prior to the recipient's death
shall be deemed to be real property classified and taxed to the
recipient and their surviving joint tenant spouse as homestead
property in the calendar year in which the recipient dies. The
surviving spouse, or any person with personal knowledge of the
facts, may provide an affidavit describing the homestead
property affected by this clause and stating facts showing
compliance with this clause. The affidavit shall be prima facie
evidence of the facts it states.

(b) For purposes of this section, "medical assistance"
includes the medical assistance program under this chapter and
the general assistance medical care program under chapter 256D
and alternative care for nonmedical assistance recipients under
section 256B.0913.

new text begin (c) All provisions in this subdivision, and subdivisions
1d, 1f, 1g, 1h, 1i, and 1j, related to the continuation of a
recipient's life estate or joint tenancy interests in real
property after the recipient's death for the purpose of
recovering medical assistance, are effective only for life
estates and joint tenancy interests established on or after
August 1, 2003.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from August 1, 2003.
new text end

Sec. 2.

Minnesota Statutes 2004, section 514.981,
subdivision 6, is amended to read:

Subd. 6.

Time limits; claim limits; liens on life estates
and joint tenancies.

(a) A medical assistance lien is a lien on
the real property it describes for a period of ten years from
the date it attaches according to section 514.981, subdivision
2, paragraph (a), except as otherwise provided for in sections
514.980 to 514.985. The agency may renew a medical assistance
lien for an additional ten years from the date it would
otherwise expire by recording or filing a certificate of renewal
before the lien expires. The certificate shall be recorded or
filed in the office of the county recorder or registrar of
titles for the county in which the lien is recorded or filed.
The certificate must refer to the recording or filing data for
the medical assistance lien it renews. The certificate need not
be attested, certified, or acknowledged as a condition for
recording or filing. The registrar of titles or the recorder
shall file, record, index, and return the certificate of renewal
in the same manner as provided for medical assistance liens in
section 514.982, subdivision 2.

(b) A medical assistance lien is not enforceable against
the real property of an estate to the extent there is a
determination by a court of competent jurisdiction, or by an
officer of the court designated for that purpose, that there are
insufficient assets in the estate to satisfy the agency's
medical assistance lien in whole or in part because of the
homestead exemption under section 256B.15, subdivision 4, the
rights of the surviving spouse or minor children under section
524.2-403, paragraphs (a) and (b), or claims with a priority
under section 524.3-805, paragraph (a), clauses (1) to (4). For
purposes of this section, the rights of the decedent's adult
children to exempt property under section 524.2-403, paragraph
(b), shall not be considered costs of administration under
section 524.3-805, paragraph (a), clause (1).

(c) Notwithstanding any law or rule to the contrary, the
provisions in clauses (1) to (7) apply if a life estate subject
to a medical assistance lien ends according to its terms, or if
a medical assistance recipient who owns a life estate or any
interest in real property as a joint tenant that is subject to a
medical assistance lien dies.

(1) The medical assistance recipient's life estate or joint
tenancy interest in the real property shall not end upon the
recipient's death but shall merge into the remainder interest or
other interest in real property the medical assistance recipient
owned in joint tenancy with others. The medical assistance lien
shall attach to and run with the remainder or other interest in
the real property to the extent of the medical assistance
recipient's interest in the property at the time of the
recipient's death as determined under this section.

(2) If the medical assistance recipient's interest was a
life estate in real property, the lien shall be a lien against
the portion of the remainder equal to the percentage factor for
the life estate of a person the medical assistance recipient's
age on the date the life estate ended according to its terms or
the date of the medical assistance recipient's death as listed
in the Life Estate Mortality Table in the health care program's
manual.

(3) If the medical assistance recipient owned the interest
in real property in joint tenancy with others, the lien shall be
a lien against the portion of that interest equal to the
fractional interest the medical assistance recipient would have
owned in the jointly owned interest had the medical assistance
recipient and the other owners held title to that interest as
tenants in common on the date the medical assistance recipient
died.

(4) The medical assistance lien shall remain a lien against
the remainder or other jointly owned interest for the length of
time and be renewable as provided in paragraph (a).

(5) Subdivision 5, paragraph (a), clause (4), paragraph
(b), clauses (1) and (2); and subdivision 6, paragraph (b), do
not apply to medical assistance liens which attach to interests
in real property as provided under this subdivision.

(6) The continuation of a medical assistance recipient's
life estate or joint tenancy interest in real property after the
medical assistance recipient's death for the purpose of
recovering medical assistance provided for in sections 514.980
to 514.985 modifies common law principles holding that these
interests terminate on the death of the holder.

(7) Notwithstanding any law or rule to the contrary, no
release, satisfaction, discharge, or affidavit under section
256B.15 shall extinguish or terminate the life estate or joint
tenancy interest of a medical assistance recipient subject to a
lien under sections 514.980 to 514.985 on the date the recipient
dies.

(8) The provisions of clauses (1) to (7) do not apply to a
homestead owned of record, on the date the recipient dies, by
the recipient and the recipient's spouse as joint tenants with a
right of survivorship. Homestead means the real property
occupied by the surviving joint tenant spouse as their sole
residence on the date the recipient dies and classified and
taxed to the recipient and surviving joint tenant spouse as
homestead property for property tax purposes in the calendar
year in which the recipient dies. For purposes of this
exemption, real property the recipient and their surviving joint
tenant spouse purchase solely with the proceeds from the sale of
their prior homestead, own of record as joint tenants, and
qualify as homestead property under section 273.124 in the
calendar year in which the recipient dies and prior to the
recipient's death shall be deemed to be real property classified
and taxed to the recipient and their surviving joint tenant
spouse as homestead property in the calendar year in which the
recipient dies. The surviving spouse, or any person with
personal knowledge of the facts, may provide an affidavit
describing the homestead property affected by this clause and
stating facts showing compliance with this clause. The
affidavit shall be prima facie evidence of the facts it states.
new text begin All provisions in this paragraph related to the continuation of
a recipient's life estate or joint tenancy interests in real
property after the recipient's death, for the purpose of
recovering medical assistance, are effective only for life
estates and joint tenancy interests established on or after
August 1, 2003.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from August 1, 2003.
new text end

Sec. 3. new text begin GENERAL PROVISIONS GOVERNING CHANGE IN EFFECTIVE
DATE FOR LIFE ESTATE AND JOINT TENANCY INTEREST PROVISIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of life estate or joint
tenancy interest. new text end

new text begin For purposes of sections 1 and 2, a life
estate or joint tenancy interest is established upon the earlier
of:
new text end

new text begin (1) the date the instrument creating the interest is
recorded or filed in the office of the county recorder or
registrar of titles where the real estate interest it describes
is located;
new text end

new text begin (2) the date of delivery by the grantor to the grantee of
the signed instrument as stated in an affidavit made by a person
with knowledge of the facts;
new text end

new text begin (3) the date on which the judicial order creating the
interest was issued by the court; or
new text end

new text begin (4) the date upon which the interest devolves under
Minnesota Statutes, section 524.3-101.
new text end

new text begin Subd. 2. new text end

new text begin Medical assistance. new text end

new text begin For purposes of sections 1
and 2, the term medical assistance means medical assistance as
defined in Minnesota Statutes 2004, section 256B.15, subdivision
1.
new text end

new text begin Subd. 3. new text end

new text begin Lien notices. new text end

new text begin Lien notices of record against
life estate or joint tenancy interests in existence prior to
August 1, 2003, have no effect beyond the death of the life
tenant or joint tenant and shall be disregarded by examiners of
title after the death of the life tenant or joint tenant.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from August 1, 2003.
new text end

Sec. 4. new text begin COMMISSIONER'S DUTIES RELATED TO CHANGE IN
EFFECTIVE DATE FOR LIFE ESTATE AND JOINT TENANCY INTEREST
PROVISIONS.
new text end

new text begin The commissioner of human services and any county agency
which has collected any sum attributable to a life estate or
joint tenancy interest in real estate which was continued under
Minnesota Statutes 2004, sections 256B.15, subdivisions 1h, 1i,
1j, 1k, and 3, and 514.981, subdivision 6, as those provisions
existed prior to the amendments in this act, shall promptly
refund the amount collected to the person or persons who paid
the amount collected, in proportion to each person's
contribution to the amount.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from August 1, 2003.
new text end

Sec. 5. new text begin IMMUNITY.
new text end

new text begin The commissioner of human services, county agencies, and
elected officials and their employees are immune from all
liability for any action taken implementing Laws 2003, First
Special Session chapter 14, article 12, sections 40 to 52 and
90, as those laws existed at the time the action was taken, and
sections 1 to 4 of this act.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively
from August 1, 2003.
new text end