SF 1896

1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to human services; changing provisions for 
  1.3             erroneous payment of medical assistance money; 
  1.4             changing probate provisions for estates subject to 
  1.5             medical assistance claims and medical assistance 
  1.6             liens; amending Minnesota Statutes 1998, sections 
  1.7             256B.064; 256B.15, subdivisions 1a and 4; 514.981, 
  1.8             subdivision 6; 524.3-801; and 525.312; proposing 
  1.9             coding for new law in Minnesota Statutes, chapters 
  1.10            524; and 525. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1998, section 256B.064, is 
  1.13  amended to read: 
  1.14     256B.064 [INELIGIBLE PROVIDER SANCTIONS; MONETARY 
  1.15  RECOVERY.] 
  1.16     Subdivision 1.  [TERMINATING PAYMENTS TO INELIGIBLE 
  1.17  VENDORS.] The commissioner may terminate payments under this 
  1.18  chapter to any person or facility providing medical assistance 
  1.19  which that, under applicable federal law or regulation, has been 
  1.20  determined to be ineligible for payments under Title XIX of the 
  1.21  Social Security Act. 
  1.22     Subd. 1a.  [GROUNDS FOR MONETARY RECOVERY AND SANCTIONS 
  1.23  AGAINST VENDORS.] The commissioner may seek monetary recovery 
  1.24  and impose sanctions against vendors a vendor of medical care 
  1.25  for any of the following:  (1) fraud, theft, or abuse in 
  1.26  connection with the provision of medical care to recipients of 
  1.27  public assistance; (2) a pattern of presentment of false or 
  1.28  duplicate claims or claims for services not medically 
  2.1   necessary; (3) a pattern of making false statements of material 
  2.2   facts for the purpose of obtaining greater compensation than 
  2.3   that to which the vendor is legally entitled; (4) suspension or 
  2.4   termination as a Medicare vendor; (5) refusal to grant the state 
  2.5   agency access during regular business hours to examine all 
  2.6   records necessary to disclose the extent of services provided to 
  2.7   program recipients and appropriateness of claims for payment; 
  2.8   (6) failure to repay an overpayment finally established under 
  2.9   this section; and (7) any reason for which a vendor could be 
  2.10  excluded from participation in the Medicare program under 
  2.11  section 1128, 1128A, or 1866(b)(2) of the Social Security Act.  
  2.12  The determination of services not medically necessary may be 
  2.13  made by the commissioner in consultation with a peer advisory 
  2.14  task force appointed by the commissioner on the recommendation 
  2.15  of appropriate professional organizations.  The task force 
  2.16  expires as provided in section 15.059, subdivision 5. 
  2.17     Subd. 1b.  [SANCTIONS AVAILABLE.] The commissioner may 
  2.18  impose the following sanctions for the conduct described in 
  2.19  subdivision 1a:  referral to the appropriate state licensing 
  2.20  board, suspension or withholding of payments to a vendor, and 
  2.21  suspending or terminating participation in the 
  2.22  program.  Regardless of imposition of sanctions, the 
  2.23  commissioner may make a referral to the appropriate state 
  2.24  licensing board. 
  2.25     Subd. 1c.  [GROUNDS FOR AND METHODS OF MONETARY RECOVERY.] 
  2.26  (a) The commissioner may obtain monetary recovery from a vendor 
  2.27  who has been improperly paid either as a result of conduct 
  2.28  described in subdivision 1a or as a result of a vendor or 
  2.29  department error, regardless of whether the error was 
  2.30  intentional.  Patterns need not be proven as a precondition to 
  2.31  monetary recovery of erroneous or false claims, duplicate 
  2.32  claims, claims for services not medically necessary, or claims 
  2.33  based on false statements.  
  2.34     (b) The commissioner may obtain monetary recovery using 
  2.35  methods, including but not limited to the following:  assessing 
  2.36  and recovering money improperly paid and debiting from future 
  3.1   payments any money improperly paid.  Patterns need not be proven 
  3.2   as a precondition to monetary recovery of erroneous or false 
  3.3   claims, duplicate claims, claims for services not medically 
  3.4   necessary, or claims based on false statements.  The 
  3.5   commissioner shall charge interest on money to be recovered if 
  3.6   the recovery is to be made by installment payments or debits, 
  3.7   except when the monetary recovery is of an overpayment that 
  3.8   resulted from a department error.  The interest charged shall be 
  3.9   the rate established by the commissioner of revenue under 
  3.10  section 270.75.  
  3.11     Subd. 1d.  [INVESTIGATIVE COSTS.] The commissioner may seek 
  3.12  recovery of investigative costs from any vendor of medical care 
  3.13  or services who willfully submits a claim for reimbursement for 
  3.14  services that the vendor knows, or reasonably should have known, 
  3.15  is a false representation and which that results in the payment 
  3.16  of public funds for which the vendor is ineligible.  Billing 
  3.17  errors deemed to be unintentional, but which that result in 
  3.18  unintentional overcharges, shall not be considered grounds for 
  3.19  investigative cost recoupment. 
  3.20     Subd. 2.  [IMPOSITION OF MONETARY RECOVERY AND SANCTIONS.] 
  3.21  (a) The commissioner shall determine any monetary amounts to be 
  3.22  recovered and the sanction sanctions to be imposed upon a vendor 
  3.23  of medical care for conduct described by subdivision 1a under 
  3.24  this section.  Except as provided in paragraph (b), neither a 
  3.25  monetary recovery nor a sanction will be imposed by the 
  3.26  commissioner without prior notice and an opportunity for a 
  3.27  hearing, according to chapter 14, on the commissioner's proposed 
  3.28  action, provided that the commissioner may suspend or reduce 
  3.29  payment to a vendor of medical care, except a nursing home or 
  3.30  convalescent care facility, after notice and prior to the 
  3.31  hearing if in the commissioner's opinion that action is 
  3.32  necessary to protect the public welfare and the interests of the 
  3.33  program. 
  3.34     (b) Except for a nursing home or convalescent care 
  3.35  facility, the commissioner may withhold or reduce payments to a 
  3.36  vendor of medical care without providing advance notice of such 
  4.1   withholding or reduction if either of the following occurs: 
  4.2      (1) the vendor is convicted of a crime involving the 
  4.3   conduct described in subdivision 1a; or 
  4.4      (2) the commissioner receives reliable evidence of fraud or 
  4.5   willful misrepresentation by the vendor. 
  4.6      (c) The commissioner must send notice of the withholding or 
  4.7   reduction of payments under paragraph (b) within five days of 
  4.8   taking such action.  The notice must: 
  4.9      (1) state that payments are being withheld according to 
  4.10  paragraph (b); 
  4.11     (2) except in the case of a conviction for conduct 
  4.12  described in subdivision 1a, state that the withholding is for a 
  4.13  temporary period and cite the circumstances under which 
  4.14  withholding will be terminated; 
  4.15     (3) identify the types of claims to which the withholding 
  4.16  applies; and 
  4.17     (4) inform the vendor of the right to submit written 
  4.18  evidence for consideration by the commissioner. 
  4.19     The withholding or reduction of payments will not continue 
  4.20  after the commissioner determines there is insufficient evidence 
  4.21  of fraud or willful misrepresentation by the vendor, or after 
  4.22  legal proceedings relating to the alleged fraud or willful 
  4.23  misrepresentation are completed, unless the commissioner has 
  4.24  sent notice of intention to impose monetary recovery or 
  4.25  sanctions under paragraph (a). 
  4.26     (d) Upon receipt of a notice under paragraph (a) that a 
  4.27  monetary recovery or sanction is to be imposed, a vendor may 
  4.28  request a contested case, as defined in section 14.02, 
  4.29  subdivision 3, by filing with the commissioner a written request 
  4.30  of appeal.  The appeal request must be received by the 
  4.31  commissioner no later than 30 days after the date the 
  4.32  notification of monetary recovery or sanction was mailed to the 
  4.33  vendor.  The appeal request must specify: 
  4.34     (1) each disputed item, the reason for the dispute, and an 
  4.35  estimate of the dollar amount involved for each disputed item; 
  4.36     (2) the computation that the vendor believes is correct; 
  5.1      (3) the authority in statute or rule upon which the vendor 
  5.2   relies for each disputed item; 
  5.3      (4) the name and address of the person or entity with whom 
  5.4   contacts may be made regarding the appeal; and 
  5.5      (5) other information required by the commissioner. 
  5.6      Sec. 2.  Minnesota Statutes 1998, section 256B.15, 
  5.7   subdivision 1a, is amended to read: 
  5.8      Subd. 1a.  [ESTATES SUBJECT TO CLAIMS.] If a person 
  5.9   receives any medical assistance hereunder, on the person's 
  5.10  death, if single, or on the death of the survivor of a married 
  5.11  couple, either or both of whom received medical assistance, the 
  5.12  total amount paid for medical assistance rendered for the person 
  5.13  and spouse shall be filed as a claim against the estate of the 
  5.14  person or the estate of the surviving spouse in the court having 
  5.15  jurisdiction to probate the estate or to issue a decree of 
  5.16  descent according to sections 525.31 to 525.313.  
  5.17     A claim shall be filed if medical assistance was rendered 
  5.18  for either or both persons under one of the following 
  5.19  circumstances: 
  5.20     (a) the person was over 55 years of age, and received 
  5.21  services under this chapter, excluding alternative care; 
  5.22     (b) the person resided in a medical institution for six 
  5.23  months or longer, received services under this chapter excluding 
  5.24  alternative care, and, at the time of institutionalization or 
  5.25  application for medical assistance, whichever is later, the 
  5.26  person could not have reasonably been expected to be discharged 
  5.27  and returned home, as certified in writing by the person's 
  5.28  treating physician.  For purposes of this section only, a 
  5.29  "medical institution" means a skilled nursing facility, 
  5.30  intermediate care facility, intermediate care facility for 
  5.31  persons with mental retardation, nursing facility, or inpatient 
  5.32  hospital; or 
  5.33     (c) the person received general assistance medical care 
  5.34  services under chapter 256D.  
  5.35     The claim shall be considered an expense of the last 
  5.36  illness of the decedent for the purpose of section 524.3-805.  
  6.1   Any statute of limitations that purports to limit any county 
  6.2   agency or the state agency, or both, to recover for medical 
  6.3   assistance granted hereunder shall not apply to any claim made 
  6.4   hereunder for reimbursement for any medical assistance granted 
  6.5   hereunder.  Notice of the claim shall be given to all heirs and 
  6.6   devisees of the decedent whose identity can be ascertained with 
  6.7   reasonable diligence.  The notice must include procedures and 
  6.8   instructions for making an application for a hardship waiver 
  6.9   under subdivision 5; time frames for submitting an application 
  6.10  and determination; and information regarding appeal rights and 
  6.11  procedures.  Counties are entitled to one-half of the nonfederal 
  6.12  share of medical assistance collections from estates that are 
  6.13  directly attributable to county effort.  
  6.14     Sec. 3.  Minnesota Statutes 1998, section 256B.15, 
  6.15  subdivision 4, is amended to read: 
  6.16     Subd. 4.  [OTHER SURVIVORS.] If the decedent who was single 
  6.17  or the surviving spouse of a married couple is survived by one 
  6.18  of the following persons, a claim exists against the estate in 
  6.19  an amount not to exceed the value of the nonhomestead property 
  6.20  included in the estate: 
  6.21     (a) a sibling who resided in the decedent medical 
  6.22  assistance recipient's home at least one year before the 
  6.23  decedent's institutionalization and continuously since the date 
  6.24  of institutionalization; or 
  6.25     (b) a son or daughter or, subject to federal approval, a 
  6.26  grandchild, who resided in the decedent medical assistance 
  6.27  recipient's home for at least two years immediately before the 
  6.28  parent's or grandparent's institutionalization and continuously 
  6.29  since the date of institutionalization, and who establishes by a 
  6.30  preponderance of the evidence having provided care to the parent 
  6.31  or grandparent who received medical assistance, that the care 
  6.32  was provided before institutionalization, and that the care 
  6.33  permitted the parent or grandparent to reside at home rather 
  6.34  than in an institution. 
  6.35     Sec. 4.  Minnesota Statutes 1998, section 514.981, 
  6.36  subdivision 6, is amended to read: 
  7.1      Subd. 6.  [TIME LIMITS; CLAIM LIMITS.] (a) A medical 
  7.2   assistance lien is not enforceable against specific real 
  7.3   property if any of the following occurs: 
  7.4      (1) the lien is not satisfied or proceedings are not 
  7.5   lawfully commenced to foreclose the lien within 18 months of the 
  7.6   agency's receipt of notice of the death of the medical 
  7.7   assistance recipient or the death of the surviving spouse, 
  7.8   whichever occurs later; or 
  7.9      (2) the lien is not satisfied or proceedings are not 
  7.10  lawfully commenced to foreclose the lien within three years of 
  7.11  the death of the medical assistance recipient or the death of 
  7.12  the surviving spouse, whichever occurs later.  This limitation 
  7.13  is tolled during any period when the provisions of section 
  7.14  514.983, subdivision 2, apply to delay enforcement of the 
  7.15  lien. a lien on the real property it describes for a period of 
  7.16  ten years from the date it attaches according to section 
  7.17  514.981, subdivision 2, paragraph (a), except as otherwise 
  7.18  provided for in sections 514.980 to 514.985.  The agency may 
  7.19  renew a medical assistance lien for an additional ten years from 
  7.20  the date it would otherwise expire by recording or filing a 
  7.21  certificate of renewal before the lien expires.  The certificate 
  7.22  shall be recorded or filed in the office of the county recorder 
  7.23  or registrar of titles for the county in which the lien is 
  7.24  recorded or filed.  The certificate must refer to the recording 
  7.25  or filing data for the medical assistance lien it renews.  The 
  7.26  certificate need not be attested, certified, or acknowledged as 
  7.27  a condition for recording or filing.  The registrar of titles or 
  7.28  the recorder shall file, record, index, and return the 
  7.29  certificate of renewal in the same manner as provided for 
  7.30  medical assistance liens in section 514.982, subdivision 2. 
  7.31     (b) A medical assistance lien is not enforceable against 
  7.32  the real property of an estate to the extent there is a 
  7.33  determination by a court of competent jurisdiction, or by an 
  7.34  officer of the court designated for that purpose, that there are 
  7.35  insufficient assets in the estate to satisfy the agency's 
  7.36  medical assistance lien in whole or in part in accordance with 
  8.1   the priority of claims established by chapters 256B and 524.  
  8.2   The agency's lien remains enforceable to the extent that assets 
  8.3   are available to satisfy the agency's lien, subject to the 
  8.4   priority of other claims, and to the extent that the agency's 
  8.5   claim is allowed against the estate under chapters 256B and 
  8.6   524 because of the homestead exemption under section 256B.15, 
  8.7   subdivision 4, the rights of the surviving spouse or minor 
  8.8   children under section 524.2-403, paragraphs (a) and (b), or 
  8.9   claims with a priority under section 524.3-805, paragraph (a), 
  8.10  clauses (1) to (4).  For purposes of this section, the rights of 
  8.11  the decedent's adult children to exempt property under section 
  8.12  524.2-403, paragraph (b), shall not be considered costs of 
  8.13  administration under section 524.3-805, paragraph (a), clause 
  8.14  (1). 
  8.15     Sec. 5.  [524.2-215] [SURVIVING SPOUSE RECEIVING MEDICAL 
  8.16  ASSISTANCE.] 
  8.17     (a) Notwithstanding any law to the contrary, if a surviving 
  8.18  spouse is receiving medical assistance under chapter 256B, or 
  8.19  general assistance medical care under chapter 256D, when the 
  8.20  person's spouse dies, then the provisions in paragraphs (b) to 
  8.21  (f) apply. 
  8.22     (b) Any time before an order or decree is entered under 
  8.23  section 524.3-1001 or 524.3-1002 or a closing statement is filed 
  8.24  under section 524.3-1003 the surviving spouse may: 
  8.25     (1) exercise the right to take an elective share amount of 
  8.26  the decedent's estate under section 524.2-211, in which case the 
  8.27  decedent's nonprobate transfers to others shall be included in 
  8.28  the augmented estate for purposes of computing the elective 
  8.29  share and supplemental elective share amounts; 
  8.30     (2) petition the court for an extension of time for 
  8.31  exercising the right to an elective share amount under section 
  8.32  524.2-211, in which case the decedent's nonprobate transfers to 
  8.33  others shall be included in the augmented estate for purposes of 
  8.34  computing the elective share and supplemental elective share 
  8.35  amounts; or 
  8.36     (3) elect statutory rights in the homestead or petition the 
  9.1   court for an extension of time to make the election as provided 
  9.2   in section 524.2-211, paragraph (f). 
  9.3      (c) Notwithstanding any law or rule to the contrary, the 
  9.4   personal representative of the estate of the surviving spouse 
  9.5   may exercise the surviving spouse's right of election and 
  9.6   statutory right to the homestead in the manner provided for 
  9.7   making those elections or petition for an extension of time as 
  9.8   provided for in this section. 
  9.9      (d) If choosing the elective share will result in the 
  9.10  surviving spouse receiving a share of the decedent's estate 
  9.11  greater in value than the share of the estate under the will or 
  9.12  intestate succession, then the guardian or conservator for the 
  9.13  surviving spouse shall exercise the surviving spouse's right to 
  9.14  an elective share amount and a court order is not required. 
  9.15     (e) A party petitioning to establish a guardianship or 
  9.16  conservatorship for the surviving spouse may file a certified 
  9.17  copy of the petition in the decedent's estate proceedings and 
  9.18  serve a copy of the petition on the personal representative or 
  9.19  the personal representative's attorney.  The filing of the 
  9.20  petition shall toll all of the limitations provided in this 
  9.21  section until the entry of a final order granting or denying the 
  9.22  petition.  The decedent's estate may not close until the entry 
  9.23  of a final order granting or denying the petition. 
  9.24     (1) Distributees of the decedent's estate shall be 
  9.25  personally liable to account for and turn over to the ward, the 
  9.26  conservatee, or the estate of the ward or conservatee any and 
  9.27  all amounts which the ward or conservatee is entitled to receive 
  9.28  from the decedent's estate. 
  9.29     (2) No distributee shall be liable for an amount in excess 
  9.30  of the value of the distributee's distribution as of the time of 
  9.31  the distribution. 
  9.32     (3) The ward, conservatee, guardian, conservator, or 
  9.33  personal representative may bring proceedings in district court 
  9.34  to enforce the rights in this section. 
  9.35     (f) Notwithstanding any oral or written contract, 
  9.36  agreement, or waiver made by the surviving spouse to waive in 
 10.1   whole or in part the surviving spouse's right of election 
 10.2   against the decedent's will, statutory right to the homestead, 
 10.3   exempt property, or family allowance, the surviving spouse or 
 10.4   the surviving spouse's guardian or conservator may exercise 
 10.5   these rights to the full extent permitted by law.  The surviving 
 10.6   spouse's rights under this paragraph do not apply to the extent 
 10.7   there is a valid antenuptial agreement between the surviving 
 10.8   spouse and the decedent under which the surviving spouse has 
 10.9   waived some or all of these rights. 
 10.10     Sec. 6.  Minnesota Statutes 1998, section 524.3-801, is 
 10.11  amended to read: 
 10.12     524.3-801 [NOTICE TO CREDITORS.] 
 10.13     (a) Unless notice has already been given under this 
 10.14  section, upon appointment of a general personal representative 
 10.15  in informal proceedings or upon the filing of a petition for 
 10.16  formal appointment of a general personal representative, notice 
 10.17  thereof, in the form prescribed by court rule, shall be given 
 10.18  under the direction of the court administrator by publication 
 10.19  once a week for two successive weeks in a legal newspaper in the 
 10.20  county wherein the proceedings are pending giving the name and 
 10.21  address of the general personal representative and notifying 
 10.22  creditors of the estate to present their claims within four 
 10.23  months after the date of the court administrator's notice which 
 10.24  is subsequently published or be forever barred, unless they are 
 10.25  entitled to further service of notice under paragraph (b) or (c).
 10.26     (b)(1) Within three months after:  (i) the date of the 
 10.27  first publication of the notice; or (ii) June 16, 1989, 
 10.28  whichever is later, the personal representative may determine, 
 10.29  in the personal representative's discretion, that it is or is 
 10.30  not advisable to conduct a reasonably diligent search for 
 10.31  creditors of the decedent who are either not known or not 
 10.32  identified.  If the personal representative determines that a 
 10.33  reasonably diligent search is advisable, the personal 
 10.34  representative shall conduct the search. 
 10.35     (2) If the notice is first published after June 16, 1989, 
 10.36  the personal representative shall, within three months after the 
 11.1   date of the first publication of the notice, serve a copy of the 
 11.2   notice upon each then known and identified creditor in the 
 11.3   manner provided in paragraph (c).  Notice given under paragraph 
 11.4   (d) does not satisfy the notice requirements under this 
 11.5   paragraph and paragraph (c).  If notice was first published 
 11.6   under the applicable provisions of law under the direction of 
 11.7   the court administrator before June 16, 1989, and if a personal 
 11.8   representative is empowered to act at any time after June 16, 
 11.9   1989, the personal representative shall, within three months 
 11.10  after June 16, 1989, serve upon the then known and identified 
 11.11  creditors in the manner provided in paragraph (c) a copy of the 
 11.12  notice as published, together with a supplementary notice 
 11.13  requiring each of the creditors to present any claim within one 
 11.14  month after the date of the service of the notice or be forever 
 11.15  barred. 
 11.16     (3) Under this section, a creditor is "known" if:  (i) the 
 11.17  personal representative knows that the creditor has asserted a 
 11.18  claim that arose during the decedent's life against either the 
 11.19  decedent or the decedent's estate; or (ii) the creditor has 
 11.20  asserted a claim that arose during the decedent's life and the 
 11.21  fact is clearly disclosed in accessible financial records known 
 11.22  and available to the personal representative.  Under this 
 11.23  section, a creditor is "identified" if the personal 
 11.24  representative's knowledge of the name and address of the 
 11.25  creditor will permit service of notice to be made under 
 11.26  paragraph (c).  
 11.27     (c) The personal representative shall serve a copy of any 
 11.28  notice and any supplementary notice required by paragraph (b), 
 11.29  clause (1) or (2), upon each creditor of the decedent who is 
 11.30  then known to the personal representative and identified, except 
 11.31  a creditor whose claim has either been presented to the personal 
 11.32  representative or paid, either by delivery of a copy of the 
 11.33  required notice to the creditor, or by mailing a copy of the 
 11.34  notice to the creditor by certified, registered, or ordinary 
 11.35  first class mail addressed to the creditor at the creditor's 
 11.36  office or place of residence. 
 12.1      (d)(1) Effective for decedents dying on or after July 1, 
 12.2   1997, if the decedent or a predeceased spouse of the decedent 
 12.3   received assistance for which a claim could be filed under 
 12.4   section 246.53, 256B.15, 256D.16, or 261.04, the personal 
 12.5   representative or the attorney for the personal representative 
 12.6   shall serve the commissioner of human services with notice in 
 12.7   the manner prescribed in paragraph (c) as soon as practicable 
 12.8   after the appointment of the personal representative.  The 
 12.9   notice must state the decedent's full name, date of birth, and 
 12.10  social security number and, to the extent then known after 
 12.11  making a reasonably diligent inquiry, the full name, date of 
 12.12  birth, and social security number for each of the decedent's 
 12.13  predeceased spouses.  The notice may also contain a statement 
 12.14  that, after making a reasonably diligent inquiry, the personal 
 12.15  representative has determined that the decedent did not have any 
 12.16  predeceased spouses or that the personal representative has been 
 12.17  unable to determine one or more of the previous items of 
 12.18  information for a predeceased spouse of the decedent.  A copy of 
 12.19  the notice to creditors must be attached to and be a part of the 
 12.20  notice to the commissioner.  
 12.21     (2) Notwithstanding a will or other instrument or law to 
 12.22  the contrary, except as allowed in this paragraph, no property 
 12.23  subject to administration by the estate may be distributed by 
 12.24  the estate or the personal representative until 70 days after 
 12.25  the date the notice is served on the commissioner as provided in 
 12.26  paragraph (c), unless the local agency consents as provided for 
 12.27  in clause (6).  This restriction on distribution does not apply 
 12.28  to the personal representative's sale of real or personal 
 12.29  property, but does apply to the net proceeds the estate receives 
 12.30  from these sales.  The personal representative, or any person 
 12.31  with personal knowledge of the facts, may provide an affidavit 
 12.32  containing the description of any real or personal property 
 12.33  affected by this paragraph and stating facts showing compliance 
 12.34  with this paragraph.  If the affidavit describes real property, 
 12.35  it may be filed or recorded in the office of the county recorder 
 12.36  or registrar of titles for the county where the real property is 
 13.1   located.  This paragraph does not apply to proceedings under 
 13.2   sections 524.3-1203 and 525.31, or when a duly authorized agent 
 13.3   of a county is acting as the personal representative of the 
 13.4   estate. 
 13.5      (3) At any time before an order or decree is entered under 
 13.6   section 524.3-1001 or 524.3-1002, or a closing statement is 
 13.7   filed under section 524.3-1003, the personal representative or 
 13.8   the attorney for the personal representative may serve an 
 13.9   amended notice on the commissioner to add variations or other 
 13.10  names of the decedent or a predeceased spouse named in the 
 13.11  notice, the name of a predeceased spouse omitted from the 
 13.12  notice, to add or correct the date of birth or social security 
 13.13  number of a decedent or predeceased spouse named in the notice, 
 13.14  or to correct any other deficiency in a prior notice.  The 
 13.15  amended notice must state the decedent's name, date of birth, 
 13.16  and social security number, the case name, case number, and 
 13.17  district court in which the estate is pending, and the date the 
 13.18  notice being amended was served on the commissioner.  If the 
 13.19  amendment adds the name of a predeceased spouse omitted from the 
 13.20  notice, it must also state that spouse's full name, date of 
 13.21  birth, and social security number.  The amended notice must be 
 13.22  served on the commissioner in the same manner as the original 
 13.23  notice.  Upon service, the amended notice relates back to and is 
 13.24  effective from the date the notice it amends was served, and the 
 13.25  time for filing claims arising under section 246.53, 256B.15, 
 13.26  256D.16 or 261.04 is extended by 60 days from the date of 
 13.27  service of the amended notice.  Claims filed during the 60-day 
 13.28  period are undischarged and unbarred claims, may be prosecuted 
 13.29  by the entities entitled to file those claims in accordance with 
 13.30  section 524.3-1004, and the limitations in section 524.3-1006 do 
 13.31  not apply.  The personal representative or any person with 
 13.32  personal knowledge of the facts may provide and file or record 
 13.33  an affidavit in the same manner as provided for in clause (1). 
 13.34     (4) Within one year after the date an order or decree is 
 13.35  entered under section 524.3-1001 or 524.3-1002 or a closing 
 13.36  statement is filed under section 524.3-1003, any person who has 
 14.1   an interest in property that was subject to administration by 
 14.2   the estate may serve an amended notice on the commissioner to 
 14.3   add variations or other names of the decedent or a predeceased 
 14.4   spouse named in the notice, the name of a predeceased spouse 
 14.5   omitted from the notice, to add or correct the date of birth or 
 14.6   social security number of a decedent or predeceased spouse named 
 14.7   in the notice, or to correct any other deficiency in a prior 
 14.8   notice.  The amended notice must be served on the commissioner 
 14.9   in the same manner as the original notice and must contain the 
 14.10  information required for amendments under clause (3).  If the 
 14.11  amendment adds the name of a predeceased spouse omitted from the 
 14.12  notice, it must also state that spouse's full name, date of 
 14.13  birth, and social security number.  Upon service, the amended 
 14.14  notice relates back to and is effective from the date the notice 
 14.15  it amends was served.  If the amended notice adds the name of an 
 14.16  omitted predeceased spouse or adds or corrects the social 
 14.17  security number or date of birth of the decedent or a 
 14.18  predeceased spouse already named in the notice, then, 
 14.19  notwithstanding any other laws to the contrary, claims against 
 14.20  the decedent's estate on account of those persons resulting from 
 14.21  the amendment and arising under section 246.53, 256B.15, 
 14.22  256D.16, or 261.04 are undischarged and unbarred claims, may be 
 14.23  prosecuted by the entities entitled to file those claims in 
 14.24  accordance with section 524.3-1004, and the limitations in 
 14.25  section 524.3-1006 do not apply.  The person filing the 
 14.26  amendment or any other person with personal knowledge of the 
 14.27  facts may provide and file or record an affidavit describing 
 14.28  affected real or personal property in the same manner as clause 
 14.29  (1). 
 14.30     (5) After one year from the date an order or decree is 
 14.31  entered under section 524.3-1001 or 524.3-1002, or a closing 
 14.32  statement is filed under section 524.3-1003, no error, omission, 
 14.33  or defect of any kind in the notice to the commissioner required 
 14.34  under this paragraph or in the process of service of the notice 
 14.35  on the commissioner, or the failure to serve the commissioner 
 14.36  with notice as required by this paragraph, makes any 
 15.1   distribution of property by a personal representative void or 
 15.2   voidable.  The distributee's title to the distributed property 
 15.3   shall be free of any claims based upon a failure to comply with 
 15.4   this paragraph. 
 15.5      (6) The local agency may consent to a personal 
 15.6   representative's request to distribute property subject to 
 15.7   administration by the estate to distributees during the 70-day 
 15.8   period after service of notice on the commissioner.  The local 
 15.9   agency may grant or deny the request in whole or in part and may 
 15.10  attach conditions to its consent as it deems appropriate.  When 
 15.11  the local agency consents to a distribution, it shall give the 
 15.12  estate a written certificate evidencing its consent to the early 
 15.13  distribution of assets at no cost.  The certificate must include 
 15.14  the name, case number, and district court in which the estate is 
 15.15  pending, the name of the local agency, describe the specific 
 15.16  real or personal property to which the consent applies, state 
 15.17  that the local agency consents to the distribution of the 
 15.18  specific property described in the consent during the 70-day 
 15.19  period following service of the notice on the commissioner, 
 15.20  state that the consent is unconditional or list all of the terms 
 15.21  and conditions of the consent, be dated, and may include other 
 15.22  contents as may be appropriate.  The certificate must be signed 
 15.23  by the director of the local agency or the director's designees 
 15.24  and is effective as of the date it is dated unless it provides 
 15.25  otherwise.  The signature of the director or the director's 
 15.26  designee does not require any acknowledgment.  The certificate 
 15.27  shall be prima facie evidence of the facts it states, may be 
 15.28  attached to or combined with a deed or any other instrument of 
 15.29  conveyance and, when so attached or combined, shall constitute a 
 15.30  single instrument.  If the certificate describes real property, 
 15.31  it shall be accepted for recording or filing by the county 
 15.32  recorder or registrar of titles in the county in which the 
 15.33  property is located.  If the certificate describes real property 
 15.34  and is not attached to or combined with a deed or other 
 15.35  instrument of conveyance, it shall be accepted for recording or 
 15.36  filing by the county recorder or registrar of titles in the 
 16.1   county in which the property is located.  The certificate 
 16.2   constitutes a waiver of the 70-day period provided for in clause 
 16.3   (2) with respect to the property it describes and is prima facie 
 16.4   evidence of service of notice on the commissioner.  The 
 16.5   certificate is not a waiver or relinquishment of any claims 
 16.6   arising under section 246.53, 256B.15, 256D.16, or 261.04, and 
 16.7   does not otherwise constitute a waiver of any of the personal 
 16.8   representative's duties under this paragraph.  Distributees who 
 16.9   receive property pursuant to a consent to an early distribution 
 16.10  shall remain liable to creditors of the estate as provided for 
 16.11  by law. 
 16.12     (7) All affidavits provided for under this paragraph: 
 16.13     (i) shall be provided by persons who have personal 
 16.14  knowledge of the facts stated in the affidavit; 
 16.15     (ii) may be filed or recorded in the office of the county 
 16.16  recorder or registrar of titles in the county in which the real 
 16.17  property they describe is located for the purpose of 
 16.18  establishing compliance with the requirements of this paragraph; 
 16.19  and 
 16.20     (iii) are prima facie evidence of the facts stated in the 
 16.21  affidavit. 
 16.22     (8) This paragraph applies to the estates of decedents 
 16.23  dying on or after July 1, 1997.  Clause (5) also applies with 
 16.24  respect to all notices served on the commissioner of human 
 16.25  services before July 1, 1997, under Laws 1996, chapter 451, 
 16.26  article 2, section 55.  All notices served on the commissioner 
 16.27  before July 1, 1997, pursuant to Laws 1996, chapter 451, article 
 16.28  2, section 55, shall be deemed to be legally sufficient for the 
 16.29  purposes for which they were intended, notwithstanding any 
 16.30  errors, omissions or other defects. 
 16.31     Sec. 7.  Minnesota Statutes 1998, section 525.312, is 
 16.32  amended to read: 
 16.33     525.312 [DECREE OF DESCENT.] 
 16.34     Upon the filing of such petition, the court shall fix the 
 16.35  time and place for the hearing thereof, notice of which shall be 
 16.36  given pursuant to section 524.1-401.  Notice of the hearing, in 
 17.1   the form prescribed by court rule, shall also be given under 
 17.2   direction of the court administrator by publication once a week 
 17.3   for two consecutive weeks in a legal newspaper in the county 
 17.4   where the hearing is to be held, the last publication of which 
 17.5   is to be at least ten days before the time set for hearing.  
 17.6   Upon proof of the petition and of the will if there be one,; or 
 17.7   upon proof of the petition and of an authenticated copy of a 
 17.8   will duly proved and allowed outside of this state in accordance 
 17.9   with the laws in force in the place where proved, if there be 
 17.10  one,; and if a clearance for medical assistance claims is on 
 17.11  file in the proceeding and any medical assistance claims are 
 17.12  paid or satisfied, the court shall allow the same and enter its 
 17.13  decree of descent assigning the real or personal property, or 
 17.14  any interest therein, to the persons entitled thereto pursuant 
 17.15  to the will or such authenticated copy, if there be one, 
 17.16  otherwise pursuant to the laws of intestate succession in force 
 17.17  at the time of the decedent's death.  The decree of descent 
 17.18  shall operate to assign the property free and clear of any and 
 17.19  all claims for medical assistance arising under section 525.313 
 17.20  without regard to the final disposition of those claims.  The 
 17.21  court may appoint two or more disinterested persons to appraise 
 17.22  the property.  
 17.23     Sec. 8.  [525.313] [CLEARANCE FOR MEDICAL ASSISTANCE 
 17.24  CLAIMS.] 
 17.25     (a) The court shall not enter a decree of descent until the 
 17.26  petitioner has filed a clearance for medical assistance claims 
 17.27  under this section, and until any medical assistance claims 
 17.28  filed under this section have been paid, settled, or otherwise 
 17.29  finally disposed of. 
 17.30     (b) After filing the petition, the petitioner or the 
 17.31  petitioner's attorney shall apply to the county agency in the 
 17.32  county in which the petition is pending for a clearance of 
 17.33  medical assistance claims.  The application must state the 
 17.34  decedent's name, date of birth, and social security number; the 
 17.35  name, date of birth, and social security number of any 
 17.36  predeceased spouse of the decedent; the names and addresses of 
 18.1   the devisees and heirs; and the name, address, and telephone 
 18.2   number of the petitioner or the attorney making the application 
 18.3   on behalf of the petitioner, and include a copy of the notice of 
 18.4   hearing.  
 18.5      (c) The county agency shall determine whether the decedent 
 18.6   or any of the decedent's predeceased spouses received medical 
 18.7   assistance under chapter 256B or general assistance medical care 
 18.8   under chapter 256D giving rise to a claim under section 
 18.9   256B.15.  If there are no claims, the county agency shall issue 
 18.10  the petitioner a clearance for medical assistance claims stating 
 18.11  no medical assistance claims exist.  If there is a claim, the 
 18.12  county agency shall issue the petitioner a clearance for medical 
 18.13  assistance claims stating that a claim exists and the total 
 18.14  amount of the claim.  The county agency shall mail the completed 
 18.15  clearance for medical assistance claims to the applicant within 
 18.16  15 working days after receiving the application without cost to 
 18.17  the applicant or others. 
 18.18     (d) The petitioner or attorney shall file the certificate 
 18.19  in the proceedings for the decree of descent as soon as 
 18.20  practicable after it is received.  Notwithstanding any rule or 
 18.21  law to the contrary, if a medical assistance claim appears in a 
 18.22  clearance for medical assistance claims, then: 
 18.23     (1) the claim shall be a claim against the decedent's 
 18.24  property which is the subject of the petition.  The county 
 18.25  agency issuing the certificate shall be the claimant.  The 
 18.26  filing of the clearance for medical assistance claims in the 
 18.27  proceeding for a decree of descent constitutes presentation of 
 18.28  the claim; 
 18.29     (2) the claim shall be an unbarred and undischarged claim 
 18.30  and shall be payable, in whole or in part, from the decedent's 
 18.31  property which is the subject of the petition, including the net 
 18.32  sale proceeds from any sale of property free and clear of the 
 18.33  claim under this section; 
 18.34     (3) the claim may be allowed, denied, appealed, and bear 
 18.35  interest as provided for claims in estates under chapter 524; 
 18.36  and 
 19.1      (4) the county agency may collect, compromise, or otherwise 
 19.2   settle the claim with the estate, the petitioner, or the 
 19.3   assignees of the property on whatever terms and conditions are 
 19.4   deemed appropriate. 
 19.5      (e) Any of the decedent's devisees, heirs, successors, 
 19.6   assigns, or their successors and assigns, may apply for a 
 19.7   partial decree of descent to facilitate the good faith sale of 
 19.8   their interest in any real or personal property described in the 
 19.9   petition free and clear of any medical assistance claim any time 
 19.10  before the entry of a decree of descent under section 525.312.  
 19.11  The applicant must prove an interest in the property as provided 
 19.12  under section 525.312.  The court may enter a partial decree of 
 19.13  descent any time after it could hear and decide the petition for 
 19.14  a decree of descent.  A partial decree of descent shall assign 
 19.15  the interests in the real and personal property described in the 
 19.16  application to the parties entitled to the property free and 
 19.17  clear of any and all medical assistance claims.  The net sale 
 19.18  proceeds from the sale shall be: 
 19.19     (1) substituted in the estate according to this section for 
 19.20  the property sold; 
 19.21     (2) paid over to and held by the petitioner pending the 
 19.22  entry of a decree of descent; 
 19.23     (3) used for payment of medical assistance claims; and 
 19.24     (4) distributed according to the decree of descent after 
 19.25  any medical assistance claims are paid. 
 19.26     (f) The clearance for medical assistance claims must: 
 19.27     (1) include the case name, case number, and district court 
 19.28  in which the proceeding for a decree of descent is pending; 
 19.29     (2) include the name, date of birth, and social security 
 19.30  number of the decedent and any of the decedent's predeceased 
 19.31  spouses; 
 19.32     (3) state whether there are medical assistance claims 
 19.33  against the decedent, or a predeceased spouse, and the total 
 19.34  amount of each claim; and 
 19.35     (4) include the name, address, and telephone number of the 
 19.36  county agency giving the clearance for medical assistance 
 20.1   claims.  The certificate shall be signed by the director of the 
 20.2   county agency or the director's designee.  The signature of the 
 20.3   director or the director's designee does not require an 
 20.4   acknowledgment. 
 20.5      (g) All recoveries under this section are recoveries under 
 20.6   section 256B.15. 
 20.7      (h) For purposes of this section and chapter 256B, all 
 20.8   property identified in the petition and all subsequent 
 20.9   amendments to the petition shall constitute an estate.