HF 2173

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to human services; changing the effective 
  1.3             date for certain medical assistance provisions; 
  1.4             repealing liens on life estates and joint tenancy 
  1.5             interests for medical assistance; amending Minnesota 
  1.6             Statutes 2003 Supplement, section 514.981, subdivision 
  1.7             6; Laws 2003, First Special Session chapter 14, 
  1.8             article 2, sections 27, 28, 29; article 12, sections 
  1.9             40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.12  514.981, subdivision 6, is amended to read: 
  1.13     Subd. 6.  [TIME LIMITS; CLAIM LIMITS; LIENS ON LIFE ESTATES 
  1.14  AND JOINT TENANCIES.] (a) A medical assistance lien is a lien on 
  1.15  the real property it describes for a period of ten years from 
  1.16  the date it attaches according to section 514.981, subdivision 
  1.17  2, paragraph (a), except as otherwise provided for in sections 
  1.18  514.980 to 514.985.  The agency may renew a medical assistance 
  1.19  lien for an additional ten years from the date it would 
  1.20  otherwise expire by recording or filing a certificate of renewal 
  1.21  before the lien expires.  The certificate shall be recorded or 
  1.22  filed in the office of the county recorder or registrar of 
  1.23  titles for the county in which the lien is recorded or filed.  
  1.24  The certificate must refer to the recording or filing data for 
  1.25  the medical assistance lien it renews.  The certificate need not 
  1.26  be attested, certified, or acknowledged as a condition for 
  1.27  recording or filing.  The registrar of titles or the recorder 
  2.1   shall file, record, index, and return the certificate of renewal 
  2.2   in the same manner as provided for medical assistance liens in 
  2.3   section 514.982, subdivision 2. 
  2.4      (b) A medical assistance lien is not enforceable against 
  2.5   the real property of an estate to the extent there is a 
  2.6   determination by a court of competent jurisdiction, or by an 
  2.7   officer of the court designated for that purpose, that there are 
  2.8   insufficient assets in the estate to satisfy the agency's 
  2.9   medical assistance lien in whole or in part because of the 
  2.10  homestead exemption under section 256B.15, subdivision 4, the 
  2.11  rights of the surviving spouse or minor children under section 
  2.12  524.2-403, paragraphs (a) and (b), or claims with a priority 
  2.13  under section 524.3-805, paragraph (a), clauses (1) to (4).  For 
  2.14  purposes of this section, the rights of the decedent's adult 
  2.15  children to exempt property under section 524.2-403, paragraph 
  2.16  (b), shall not be considered costs of administration under 
  2.17  section 524.3-805, paragraph (a), clause (1). 
  2.18     (c) Notwithstanding any law or rule to the contrary, the 
  2.19  provisions in clauses (1) to (7) apply if a life estate subject 
  2.20  to a medical assistance lien ends according to its terms, or if 
  2.21  a medical assistance recipient who owns a life estate or any 
  2.22  interest in real property as a joint tenant that is subject to a 
  2.23  medical assistance lien dies. 
  2.24     (1) The medical assistance recipient's life estate or joint 
  2.25  tenancy interest in the real property shall not end upon the 
  2.26  recipient's death but shall merge into the remainder interest or 
  2.27  other interest in real property the medical assistance recipient 
  2.28  owned in joint tenancy with others.  The medical assistance lien 
  2.29  shall attach to and run with the remainder or other interest in 
  2.30  the real property to the extent of the medical assistance 
  2.31  recipient's interest in the property at the time of the 
  2.32  recipient's death as determined under this section. 
  2.33     (2) If the medical assistance recipient's interest was a 
  2.34  life estate in real property, the lien shall be a lien against 
  2.35  the portion of the remainder equal to the percentage factor for 
  2.36  the life estate of a person the medical assistance recipient's 
  3.1   age on the date the life estate ended according to its terms or 
  3.2   the date of the medical assistance recipient's death as listed 
  3.3   in the Life Estate Mortality Table in the health care program's 
  3.4   manual. 
  3.5      (3) If the medical assistance recipient owned the interest 
  3.6   in real property in joint tenancy with others, the lien shall be 
  3.7   a lien against the portion of that interest equal to the 
  3.8   fractional interest the medical assistance recipient would have 
  3.9   owned in the jointly owned interest had the medical assistance 
  3.10  recipient and the other owners held title to that interest as 
  3.11  tenants in common on the date the medical assistance recipient 
  3.12  died. 
  3.13     (4) The medical assistance lien shall remain a lien against 
  3.14  the remainder or other jointly owned interest for the length of 
  3.15  time and be renewable as provided in paragraph (a). 
  3.16     (5) Subdivision 5, paragraph (a), clause (4), paragraph 
  3.17  (b), clauses (1) and (2); and subdivision 6, paragraph (b), do 
  3.18  not apply to medical assistance liens which attach to interests 
  3.19  in real property as provided under this subdivision. 
  3.20     (6) The continuation of a medical assistance recipient's 
  3.21  life estate or joint tenancy interest in real property after the 
  3.22  medical assistance recipient's death for the purpose of 
  3.23  recovering medical assistance provided for in sections 514.980 
  3.24  to 514.985 modifies common law principles holding that these 
  3.25  interests terminate on the death of the holder. 
  3.26     (7) Notwithstanding any law or rule to the contrary, no 
  3.27  release, satisfaction, discharge, or affidavit under section 
  3.28  256B.15 shall extinguish or terminate the life estate or joint 
  3.29  tenancy interest of a medical assistance recipient subject to a 
  3.30  lien under sections 514.980 to 514.985 on the date the recipient 
  3.31  dies. 
  3.32     (8) The provisions of clauses (1) to (7) do not apply to a 
  3.33  homestead owned of record, on the date the recipient dies, by 
  3.34  the recipient and the recipient's spouse as joint tenants with a 
  3.35  right of survivorship.  Homestead means the real property 
  3.36  occupied by the surviving joint tenant spouse as their sole 
  4.1   residence on the date the recipient dies and classified and 
  4.2   taxed to the recipient and surviving joint tenant spouse as 
  4.3   homestead property for property tax purposes in the calendar 
  4.4   year in which the recipient dies.  For purposes of this 
  4.5   exemption, real property the recipient and their surviving joint 
  4.6   tenant spouse purchase solely with the proceeds from the sale of 
  4.7   their prior homestead, own of record as joint tenants, and 
  4.8   qualify as homestead property under section 273.124 in the 
  4.9   calendar year in which the recipient dies and prior to the 
  4.10  recipient's death shall be deemed to be real property classified 
  4.11  and taxed to the recipient and their surviving joint tenant 
  4.12  spouse as homestead property in the calendar year in which the 
  4.13  recipient dies.  The surviving spouse, or any person with 
  4.14  personal knowledge of the facts, may provide an affidavit 
  4.15  describing the homestead property affected by this clause and 
  4.16  stating facts showing compliance with this clause.  The 
  4.17  affidavit shall be prima facie evidence of the facts it states. 
  4.18     [EFFECTIVE DATE.] This section is effective retroactive to 
  4.19  August 1, 2003. 
  4.20     Sec. 2.  Laws 2003, First Special Session chapter 14, 
  4.21  article 2, section 27, the effective date, is amended to read: 
  4.22     [EFFECTIVE DATE.] This section is effective July 1, 2003, 
  4.23  for decedents dying on or after that date who have not 
  4.24  established a life estate or joint tenancy interest prior to 
  4.25  July 1, 2003. 
  4.26     Sec. 3.  Laws 2003, First Special Session chapter 14, 
  4.27  article 2, section 28, the effective date, is amended to read: 
  4.28     [EFFECTIVE DATE.] The amendments in this section relating 
  4.29  to the alternative care program are effective July 1, 2003, and 
  4.30  apply to the estates of decedents who die on or after that 
  4.31  date who have not established a life estate or joint tenancy 
  4.32  interest prior to July 1, 2003.  The remaining amendments in 
  4.33  this section are effective August 1, 2003, and apply to the 
  4.34  estates of decedents who die on and after that date who have not 
  4.35  established a life estate or joint tenancy interest prior to 
  4.36  August 1, 2003. 
  5.1      Sec. 4.  Laws 2003, First Special Session chapter 14, 
  5.2   article 2, section 29, the effective date, is amended to read: 
  5.3      [EFFECTIVE DATE.] This section is effective July 1, 2003, 
  5.4   for decedents dying on or after that date who have not 
  5.5   established a life estate or joint tenancy prior to July 1, 2003.
  5.6      Sec. 5.  Laws 2003, First Special Session chapter 14, 
  5.7   article 12, section 40, the effective date, is amended to read: 
  5.8      [EFFECTIVE DATE.] This section is effective August 1, 2003, 
  5.9   and applies to estates of decedents who die on or after that 
  5.10  date who have not established a life estate or joint tenancy 
  5.11  interest prior to July 1, 2003. 
  5.12     Sec. 6.  Laws 2003, First Special Session chapter 14, 
  5.13  article 12, section 41, the effective date, is amended to read: 
  5.14     [EFFECTIVE DATE.] The amendments in this section relating 
  5.15  to the alternative care program are effective July 1, 2003, and 
  5.16  apply to the estates of decedents who die on or after that 
  5.17  date who have not established a life estate or joint tenancy 
  5.18  interest prior to July 1, 2003.  The remaining amendments in 
  5.19  this section are effective August 1, 2003, and apply to the 
  5.20  estates of decedents who die on and after that date who have not 
  5.21  established a life estate or joint tenancy interest prior to 
  5.22  August 1, 2003. 
  5.23     Sec. 7.  Laws 2003, First Special Session chapter 14, 
  5.24  article 12, section 42, the effective date, is amended to read: 
  5.25     [EFFECTIVE DATE.] This section is effective August 1, 2003, 
  5.26  and applies to the estates of decedents who die on or after that 
  5.27  date who have not established a life estate or joint tenancy 
  5.28  interest prior to August 1, 2003. 
  5.29     Sec. 8.  Laws 2003, First Special Session chapter 14, 
  5.30  article 12, section 43, the effective date, is amended to read: 
  5.31     [EFFECTIVE DATE.] This section is effective August 1, 2003, 
  5.32  and applies to the estates of decedents who die on or after that 
  5.33  date who have not established a life estate or joint tenancy 
  5.34  interest prior to August 1, 2003. 
  5.35     Sec. 9.  Laws 2003, First Special Session chapter 14, 
  5.36  article 12, section 44, the effective date, is amended to read: 
  6.1      [EFFECTIVE DATE.] This section is effective August 1, 2003, 
  6.2   and applies to the estates of decedents who die on or after that 
  6.3   date who have not established a life estate or joint tenancy 
  6.4   interest prior to August 1, 2003. 
  6.5      Sec. 10.  Laws 2003, First Special Session chapter 14, 
  6.6   article 12, section 45, the effective date, is amended to read: 
  6.7      [EFFECTIVE DATE.] This section takes effect on August 1, 
  6.8   2003, and applies to the estates of decedents who die on or 
  6.9   after that date who have not established a life estate or joint 
  6.10  tenancy interest prior to August 1, 2003. 
  6.11     Sec. 11.  Laws 2003, First Special Session chapter 14, 
  6.12  article 12, section 46, the effective date, is amended to read: 
  6.13     [EFFECTIVE DATE.] This section takes effect on August 1, 
  6.14  2003, and applies to the estates of decedents who die on or 
  6.15  after that date who have not established a life estate or joint 
  6.16  tenancy interest prior to August 1, 2003. 
  6.17     Sec. 12.  Laws 2003, First Special Session chapter 14, 
  6.18  article 12, section 47, the effective date, is amended to read: 
  6.19     [EFFECTIVE DATE.] This section takes effect on August 1, 
  6.20  2003, and applies to the estates of decedents who die on or 
  6.21  after that date who have not established a life estate or joint 
  6.22  tenancy interest prior to August 1, 2003. 
  6.23     Sec. 13.  Laws 2003, First Special Session chapter 14, 
  6.24  article 12, section 48, the effective date, is amended to read:  
  6.25     [EFFECTIVE DATE.] This section takes effect August 1, 2003, 
  6.26  and applies to estates of decedents who die on or after that 
  6.27  date who have not established a life estate or joint tenancy 
  6.28  interest prior to August 1, 2003. 
  6.29     Sec. 14.  Laws 2003, First Special Session chapter 14, 
  6.30  article 12, section 49, the effective date, is amended to read: 
  6.31     [EFFECTIVE DATE.] This section takes effect on August 1, 
  6.32  2003, and applies to the estates of decedents who die on or 
  6.33  after that date who have not established a life estate or joint 
  6.34  tenancy interest prior to August 1, 2003. 
  6.35     Sec. 15.  Laws 2003, First Special Session chapter 14, 
  6.36  article 12, section 50, the effective date, is amended to read: 
  7.1      [EFFECTIVE DATE.] This section takes effect on August 1, 
  7.2   2003, and applies to the estates of decedents who die on or 
  7.3   after that date who have not established a life estate or joint 
  7.4   tenancy interest prior to August 1, 2003. 
  7.5      Sec. 16.  Laws 2003, First Special Session chapter 14, 
  7.6   article 12, section 51, the effective date, is amended to read: 
  7.7      [EFFECTIVE DATE.] This section is effective August 1, 2003, 
  7.8   and applies to decedents who die on or after that date who have 
  7.9   not established a life estate or joint tenancy interest prior to 
  7.10  August 1, 2003. 
  7.11     Sec. 17.  Laws 2003, First Special Session chapter 14, 
  7.12  article 12, section 52, the effective date, is amended to read: 
  7.13     [EFFECTIVE DATE.] This section is effective August 1, 2003, 
  7.14  and applies to decedents who die on or after that date who have 
  7.15  not established a life estate or joint tenancy interest prior to 
  7.16  August 1, 2003.