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HF 3060

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

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/17/2004

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to human services; limiting medical 
  1.3             assistance liens and claims against certain joint 
  1.4             tenancies; amending Minnesota Statutes 2003 
  1.5             Supplement, sections 256B.15, subdivision 1; 514.981, 
  1.6             subdivision 6; 514.992, subdivision 6. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.9   256B.15, subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [POLICY, APPLICABILITY, PURPOSE, AND 
  1.11  CONSTRUCTION; DEFINITION.] (a) It is the policy of this state 
  1.12  that individuals or couples, either or both of whom participate 
  1.13  in the medical assistance program, use their own assets to pay 
  1.14  their share of the total cost of their care during or after 
  1.15  their enrollment in the program according to applicable federal 
  1.16  law and the laws of this state.  The following provisions apply: 
  1.17     (1) subdivisions 1c to 1k shall not apply to claims arising 
  1.18  under this section which are presented under section 525.313; 
  1.19     (2) the provisions of subdivisions 1c to 1k expanding the 
  1.20  interests included in an estate for purposes of recovery under 
  1.21  this section give effect to the provisions of United States 
  1.22  Code, title 42, section 1396p, governing recoveries, but do not 
  1.23  give rise to any express or implied liens in favor of any other 
  1.24  parties not named in these provisions; 
  1.25     (3) the continuation of a recipient's life estate or joint 
  1.26  tenancy interest in real property after the recipient's death 
  2.1   for the purpose of recovering medical assistance under this 
  2.2   section modifies common law principles holding that these 
  2.3   interests terminate on the death of the holder; 
  2.4      (4) all laws, rules, and regulations governing or involved 
  2.5   with a recovery of medical assistance shall be liberally 
  2.6   construed to accomplish their intended purposes; 
  2.7      (5) a deceased recipient's life estate and joint tenancy 
  2.8   interests continued under this section shall be owned by the 
  2.9   remaindermen or surviving joint tenants as their interests may 
  2.10  appear on the date of the recipient's death.  They shall not be 
  2.11  merged into the remainder interest or the interests of the 
  2.12  surviving joint tenants by reason of ownership.  They shall be 
  2.13  subject to the provisions of this section.  Any conveyance, 
  2.14  transfer, sale, assignment, or encumbrance by a remainderman, a 
  2.15  surviving joint tenant, or their heirs, successors, and assigns 
  2.16  shall be deemed to include all of their interest in the deceased 
  2.17  recipient's life estate or joint tenancy interest continued 
  2.18  under this section; and 
  2.19     (6) the provisions of subdivisions 1c to 1k continuing a 
  2.20  recipient's joint tenancy interests in real property after the 
  2.21  recipient's death do not apply to a homestead owned of record, 
  2.22  on the date the recipient dies, by the recipient and the 
  2.23  recipient's spouse as joint tenants with a right of 
  2.24  survivorship.  Homestead means the real property occupied by the 
  2.25  surviving joint tenant spouse as their sole residence on the 
  2.26  date the recipient dies and classified and taxed to the 
  2.27  recipient and surviving joint tenant spouse as homestead 
  2.28  property for property tax purposes in the calendar year in which 
  2.29  the recipient dies.  For purposes of this exemption, real 
  2.30  property the recipient and their surviving joint tenant spouse 
  2.31  purchase solely with the proceeds from the sale of their prior 
  2.32  homestead, own of record as joint tenants, and qualify as 
  2.33  homestead property under section 273.124 in the calendar year in 
  2.34  which the recipient dies and prior to the recipient's death 
  2.35  shall be deemed to be real property classified and taxed to the 
  2.36  recipient and their surviving joint tenant spouse as homestead 
  3.1   property in the calendar year in which the recipient dies.  The 
  3.2   surviving spouse, or any person with personal knowledge of the 
  3.3   facts, may provide an affidavit describing the homestead 
  3.4   property affected by this clause and stating facts showing 
  3.5   compliance with this clause.  The affidavit shall be prima facie 
  3.6   evidence of the facts it states; and 
  3.7      (7) no action shall be taken to enforce or collect any 
  3.8   claim under this section or any lien arising under sections 
  3.9   514.980 to 514.985 and sections 514.991 to 514.995 with respect 
  3.10  to a homestead owned of record, on the date the recipient dies, 
  3.11  by the recipient and a joint tenant with a right of 
  3.12  survivorship, until the joint tenant sells the homestead, ceases 
  3.13  to reside in the homestead, or dies.  Homestead means the real 
  3.14  property occupied by the surviving joint tenant as the sole 
  3.15  residence on the date the recipient dies and classified and 
  3.16  taxed to the recipient and surviving joint tenant as homestead 
  3.17  property for property tax purposes in the calendar year in which 
  3.18  the recipient dies.  For purposes of this exemption, real 
  3.19  property the recipient and the surviving joint tenant purchase 
  3.20  solely with the proceeds from the sale of the prior homestead, 
  3.21  own of record as joint tenants, and qualify as homestead 
  3.22  property under section 273.124 in the calendar year in which the 
  3.23  recipient dies and prior to the recipient's death shall be 
  3.24  deemed to be real property classified and taxed to the recipient 
  3.25  and the surviving joint tenant as homestead property in the 
  3.26  calendar year in which the recipient dies.  The surviving joint 
  3.27  tenant, or any person with personal knowledge of the facts, may 
  3.28  provide an affidavit describing the homestead property affected 
  3.29  by this clause and stating facts showing compliance with this 
  3.30  clause.  The affidavit shall be prima facie evidence of the 
  3.31  facts it states. 
  3.32  The estate, any owner of an interest in the property that is or 
  3.33  may be subject to the lien, or any other interested party, may 
  3.34  voluntarily pay off, settle, or otherwise satisfy the claim 
  3.35  secured or to be secured by the lien at any time before or after 
  3.36  the lien is filed or recorded.  Such payoffs, settlements, and 
  4.1   satisfactions shall be deemed to be voluntary repayments of past 
  4.2   medical assistance payments for the benefit of the deceased 
  4.3   recipient, and neither the process of settling the claim, the 
  4.4   payment of the claim, or the acceptance of a payment shall 
  4.5   constitute an adjustment or recovery that is prohibited under 
  4.6   this section. 
  4.7      (b) For purposes of this section, "medical assistance" 
  4.8   includes the medical assistance program under this chapter and 
  4.9   the general assistance medical care program under chapter 256D 
  4.10  and alternative care for nonmedical assistance recipients under 
  4.11  section 256B.0913. 
  4.12     [EFFECTIVE DATE.] (a) This section is effective July 1, 
  4.13  2004, to the extent permitted by federal law.  If any provision 
  4.14  of this section is prohibited by federal law, the provision 
  4.15  shall become effective when federal law is changed to permit its 
  4.16  application or a waiver is received.  The commissioner of human 
  4.17  services shall notify the revisor of statutes when federal law 
  4.18  is enacted or a waiver or other federal approval is received and 
  4.19  publish a notice in the State Register.  The commissioner must 
  4.20  include the notice in the first State Register published after 
  4.21  the effective date of the federal changes.  
  4.22     (b) If, by July 1, 2004, any provision of this section is 
  4.23  not effective because of prohibitions in federal law, the 
  4.24  commissioner of human services shall apply to the federal 
  4.25  government by August 1, 2004, for a waiver of those prohibitions 
  4.26  or other federal authority, and that provision shall become 
  4.27  effective upon receipt of a federal waiver or other federal 
  4.28  approval, notification to the revisor of statutes, and 
  4.29  publication of a notice in the State Register to that effect. 
  4.30     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  4.31  514.981, subdivision 6, is amended to read: 
  4.32     Subd. 6.  [TIME LIMITS; CLAIM LIMITS; LIENS ON LIFE ESTATES 
  4.33  AND JOINT TENANCIES.] (a) A medical assistance lien is a lien on 
  4.34  the real property it describes for a period of ten years from 
  4.35  the date it attaches according to section 514.981, subdivision 
  4.36  2, paragraph (a), except as otherwise provided for in sections 
  5.1   514.980 to 514.985.  The agency may renew a medical assistance 
  5.2   lien for an additional ten years from the date it would 
  5.3   otherwise expire by recording or filing a certificate of renewal 
  5.4   before the lien expires.  The certificate shall be recorded or 
  5.5   filed in the office of the county recorder or registrar of 
  5.6   titles for the county in which the lien is recorded or filed.  
  5.7   The certificate must refer to the recording or filing data for 
  5.8   the medical assistance lien it renews.  The certificate need not 
  5.9   be attested, certified, or acknowledged as a condition for 
  5.10  recording or filing.  The registrar of titles or the recorder 
  5.11  shall file, record, index, and return the certificate of renewal 
  5.12  in the same manner as provided for medical assistance liens in 
  5.13  section 514.982, subdivision 2. 
  5.14     (b) A medical assistance lien is not enforceable against 
  5.15  the real property of an estate to the extent there is a 
  5.16  determination by a court of competent jurisdiction, or by an 
  5.17  officer of the court designated for that purpose, that there are 
  5.18  insufficient assets in the estate to satisfy the agency's 
  5.19  medical assistance lien in whole or in part because of the 
  5.20  homestead exemption under section 256B.15, subdivision 4, the 
  5.21  rights of the surviving spouse or minor children under section 
  5.22  524.2-403, paragraphs (a) and (b), or claims with a priority 
  5.23  under section 524.3-805, paragraph (a), clauses (1) to (4).  For 
  5.24  purposes of this section, the rights of the decedent's adult 
  5.25  children to exempt property under section 524.2-403, paragraph 
  5.26  (b), shall not be considered costs of administration under 
  5.27  section 524.3-805, paragraph (a), clause (1). 
  5.28     (c) Notwithstanding any law or rule to the contrary, the 
  5.29  provisions in clauses (1) to (7) (8) apply if a life estate 
  5.30  subject to a medical assistance lien ends according to its 
  5.31  terms, or if a medical assistance recipient who owns a life 
  5.32  estate or any interest in real property as a joint tenant that 
  5.33  is subject to a medical assistance lien dies. 
  5.34     (1) The medical assistance recipient's life estate or joint 
  5.35  tenancy interest in the real property shall not end upon the 
  5.36  recipient's death but shall merge into the remainder interest or 
  6.1   other interest in real property the medical assistance recipient 
  6.2   owned in joint tenancy with others.  The medical assistance lien 
  6.3   shall attach to and run with the remainder or other interest in 
  6.4   the real property to the extent of the medical assistance 
  6.5   recipient's interest in the property at the time of the 
  6.6   recipient's death as determined under this section. 
  6.7      (2) If the medical assistance recipient's interest was a 
  6.8   life estate in real property, the lien shall be a lien against 
  6.9   the portion of the remainder equal to the percentage factor for 
  6.10  the life estate of a person the medical assistance recipient's 
  6.11  age on the date the life estate ended according to its terms or 
  6.12  the date of the medical assistance recipient's death as listed 
  6.13  in the Life Estate Mortality Table in the health care program's 
  6.14  manual. 
  6.15     (3) If the medical assistance recipient owned the interest 
  6.16  in real property in joint tenancy with others, the lien shall be 
  6.17  a lien against the portion of that interest equal to the 
  6.18  fractional interest the medical assistance recipient would have 
  6.19  owned in the jointly owned interest had the medical assistance 
  6.20  recipient and the other owners held title to that interest as 
  6.21  tenants in common on the date the medical assistance recipient 
  6.22  died. 
  6.23     (4) The medical assistance lien shall remain a lien against 
  6.24  the remainder or other jointly owned interest for the length of 
  6.25  time and be renewable as provided in paragraph (a). 
  6.26     (5) Subdivision 5, paragraph (a), clause (4), paragraph 
  6.27  (b), clauses (1) and (2); and subdivision 6, paragraph (b), do 
  6.28  not apply to medical assistance liens which attach to interests 
  6.29  in real property as provided under this subdivision. 
  6.30     (6) The continuation of a medical assistance recipient's 
  6.31  life estate or joint tenancy interest in real property after the 
  6.32  medical assistance recipient's death for the purpose of 
  6.33  recovering medical assistance provided for in sections 514.980 
  6.34  to 514.985 modifies common law principles holding that these 
  6.35  interests terminate on the death of the holder. 
  6.36     (7) Notwithstanding any law or rule to the contrary, no 
  7.1   release, satisfaction, discharge, or affidavit under section 
  7.2   256B.15 shall extinguish or terminate the life estate or joint 
  7.3   tenancy interest of a medical assistance recipient subject to a 
  7.4   lien under sections 514.980 to 514.985 on the date the recipient 
  7.5   dies. 
  7.6      (8) No action shall be taken to enforce or collect any 
  7.7   claim under section 256B.15 or any lien arising under sections 
  7.8   514.980 to 514.985 and sections 514.991 to 514.995 with respect 
  7.9   to a homestead owned of record, on the date the recipient dies, 
  7.10  by the recipient and a joint tenant with a right of 
  7.11  survivorship, until the joint tenant sells the homestead, ceases 
  7.12  to reside in the homestead, or dies.  Homestead means the real 
  7.13  property occupied by the surviving joint tenant as the sole 
  7.14  residence on the date the recipient dies and classified and 
  7.15  taxed to the recipient and surviving joint tenant as homestead 
  7.16  property for property tax purposes in the calendar year in which 
  7.17  the recipient dies.  For purposes of this exemption, real 
  7.18  property the recipient and the surviving joint tenant purchase 
  7.19  solely with the proceeds from the sale of the prior homestead, 
  7.20  own of record as joint tenants, and qualify as homestead 
  7.21  property under section 273.124 in the calendar year in which the 
  7.22  recipient dies and prior to the recipient's death shall be 
  7.23  deemed to be real property classified and taxed to the recipient 
  7.24  and the surviving joint tenant as homestead property in the 
  7.25  calendar year in which the recipient dies.  The surviving joint 
  7.26  tenant, or any person with personal knowledge of the facts, may 
  7.27  provide an affidavit describing the homestead property affected 
  7.28  by this clause and stating facts showing compliance with this 
  7.29  clause.  The affidavit shall be prima facie evidence of the 
  7.30  facts it states. 
  7.31  The estate, any owner of an interest in the property that is or 
  7.32  may be subject to the lien, or any other interested party, may 
  7.33  voluntarily pay off, settle, or otherwise satisfy the claim 
  7.34  secured or to be secured by the lien at any time before or after 
  7.35  the lien is filed or recorded.  Such payoffs, settlements, and 
  7.36  satisfactions shall be deemed to be voluntary repayments of past 
  8.1   medical assistance payments for the benefit of the deceased 
  8.2   recipient, and neither the process of settling the claim, the 
  8.3   payment of the claim, or the acceptance of a payment shall 
  8.4   constitute an adjustment or recovery that is prohibited under 
  8.5   this section. 
  8.6      (9) The provisions of clauses (1) to (7) (8) do not apply 
  8.7   to a homestead owned of record, on the date the recipient dies, 
  8.8   by the recipient and the recipient's spouse as joint tenants 
  8.9   with a right of survivorship.  Homestead means the real property 
  8.10  occupied by the surviving joint tenant spouse as their sole 
  8.11  residence on the date the recipient dies and classified and 
  8.12  taxed to the recipient and surviving joint tenant spouse as 
  8.13  homestead property for property tax purposes in the calendar 
  8.14  year in which the recipient dies.  For purposes of this 
  8.15  exemption, real property the recipient and their surviving joint 
  8.16  tenant spouse purchase solely with the proceeds from the sale of 
  8.17  their prior homestead, own of record as joint tenants, and 
  8.18  qualify as homestead property under section 273.124 in the 
  8.19  calendar year in which the recipient dies and prior to the 
  8.20  recipient's death shall be deemed to be real property classified 
  8.21  and taxed to the recipient and their surviving joint tenant 
  8.22  spouse as homestead property in the calendar year in which the 
  8.23  recipient dies.  The surviving spouse, or any person with 
  8.24  personal knowledge of the facts, may provide an affidavit 
  8.25  describing the homestead property affected by this clause and 
  8.26  stating facts showing compliance with this clause.  The 
  8.27  affidavit shall be prima facie evidence of the facts it states. 
  8.28     [EFFECTIVE DATE.] (a) This section is effective July 1, 
  8.29  2004, to the extent permitted by federal law.  If any provision 
  8.30  of this section is prohibited by federal law, the provision 
  8.31  shall become effective when federal law is changed to permit its 
  8.32  application or a waiver is received.  The commissioner of human 
  8.33  services shall notify the revisor of statutes when federal law 
  8.34  is enacted or a waiver or other federal approval is received and 
  8.35  publish a notice in the State Register.  The commissioner must 
  8.36  include the notice in the first State Register published after 
  9.1   the effective date of the federal changes.  
  9.2      (b) If, by July 1, 2004, any provision of this section is 
  9.3   not effective because of prohibitions in federal law, the 
  9.4   commissioner of human services shall apply to the federal 
  9.5   government by August 1, 2004, for a waiver of those prohibitions 
  9.6   or other federal authority, and that provision shall become 
  9.7   effective upon receipt of a federal waiver or other federal 
  9.8   approval, notification to the revisor of statutes, and 
  9.9   publication of a notice in the State Register to that effect. 
  9.10     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  9.11  514.992, subdivision 6, is amended to read: 
  9.12     Subd. 6.  [LENGTH OF LIEN.] (a) A lien shall be a lien on 
  9.13  the real property it describes for a period of ten years from 
  9.14  the date it attaches according to subdivision 2, paragraph (a), 
  9.15  except as otherwise provided for in sections 514.992 to 
  9.16  514.995.  The agency filing the lien may renew the lien for one 
  9.17  additional ten-year period from the date it would otherwise 
  9.18  expire by recording or filing a certificate of renewal before 
  9.19  the lien expires.  The certificate of renewal shall be recorded 
  9.20  or filed in the office of the county recorder or registrar of 
  9.21  titles for the county in which the lien is recorded or filed.  
  9.22  The certificate must refer to the recording or filing data for 
  9.23  the lien it renews.  The certificate need not be attested, 
  9.24  certified, or acknowledged as a condition for recording or 
  9.25  filing.  The recorder or registrar of titles shall record, file, 
  9.26  index, and return the certificate of renewal in the same manner 
  9.27  provided for liens in section 514.993, subdivision 2. 
  9.28     (b) An alternative care lien is not enforceable against the 
  9.29  real property of an estate to the extent there is a 
  9.30  determination by a court of competent jurisdiction, or by an 
  9.31  officer of the court designated for that purpose, that there are 
  9.32  insufficient assets in the estate to satisfy the lien in whole 
  9.33  or in part because of the homestead exemption under section 
  9.34  256B.15, subdivision 4, the rights of a surviving spouse or a 
  9.35  minor child under section 524.2-403, paragraphs (a) and (b), or 
  9.36  claims with a priority under section 524.3-805, paragraph (a), 
 10.1   clauses (1) to (4).  For purposes of this section, the rights of 
 10.2   the decedent's adult children to exempt property under section 
 10.3   524.2-403, paragraph (b), shall not be considered costs of 
 10.4   administration under section 524.3-805, paragraph (a), clause 
 10.5   (1). 
 10.6      (c) No action shall be taken to enforce or collect any 
 10.7   claim under section 256B.15 or any lien arising under sections 
 10.8   514.980 to 514.985 and sections 514.991 to 514.995 with respect 
 10.9   to a homestead owned of record, on the date the recipient dies, 
 10.10  by the recipient and a joint tenant with a right of 
 10.11  survivorship, until the joint tenant sells the homestead, ceases 
 10.12  to reside in the homestead, or dies.  Homestead means the real 
 10.13  property occupied by the surviving joint tenant as the sole 
 10.14  residence on the date the recipient dies and classified and 
 10.15  taxed to the recipient and surviving joint tenant as homestead 
 10.16  property for property tax purposes in the calendar year in which 
 10.17  the recipient dies.  For purposes of this exemption, real 
 10.18  property the recipient and the surviving joint tenant purchase 
 10.19  solely with the proceeds from the sale of the prior homestead, 
 10.20  own of record as joint tenants, and qualify as homestead 
 10.21  property under section 273.124 in the calendar year in which the 
 10.22  recipient dies and prior to the recipient's death shall be 
 10.23  deemed to be real property classified and taxed to the recipient 
 10.24  and the surviving joint tenant as homestead property in the 
 10.25  calendar year in which the recipient dies.  The surviving joint 
 10.26  tenant, or any person with personal knowledge of the facts, may 
 10.27  provide an affidavit describing the homestead property affected 
 10.28  by this clause and stating facts showing compliance with this 
 10.29  clause.  The affidavit shall be prima facie evidence of the 
 10.30  facts it states. 
 10.31  The estate, any owner of an interest in the property that is or 
 10.32  may be subject to the lien, or any other interested party, may 
 10.33  voluntarily pay off, settle, or otherwise satisfy the claim 
 10.34  secured or to be secured by the lien at any time before or after 
 10.35  the lien is filed or recorded.  Such payoffs, settlements, and 
 10.36  satisfactions shall be deemed to be voluntary repayments of past 
 11.1   medical assistance payments for the benefit of the deceased 
 11.2   recipient, and neither the process of settling the claim, the 
 11.3   payment of the claim, or the acceptance of a payment shall 
 11.4   constitute an adjustment or recovery that is prohibited under 
 11.5   this section. 
 11.6      [EFFECTIVE DATE.] (a) This section is effective July 1, 
 11.7   2004, to the extent permitted by federal law.  If any provision 
 11.8   of this section is prohibited by federal law, the provision 
 11.9   shall become effective when federal law is changed to permit its 
 11.10  application or a waiver is received.  The commissioner of human 
 11.11  services shall notify the revisor of statutes when federal law 
 11.12  is enacted or a waiver or other federal approval is received and 
 11.13  publish a notice in the State Register.  The commissioner must 
 11.14  include the notice in the first State Register published after 
 11.15  the effective date of the federal changes.  
 11.16     (b) If, by July 1, 2004, any provision of this section is 
 11.17  not effective because of prohibitions in federal law, the 
 11.18  commissioner of human services shall apply to the federal 
 11.19  government by August 1, 2004, for a waiver of those prohibitions 
 11.20  or other federal authority, and that provision shall become 
 11.21  effective upon receipt of a federal waiver or other federal 
 11.22  approval, notification to the revisor of statutes, and 
 11.23  publication of a notice in the State Register to that effect.