Office of the Revisor of Statutes
Minnesota Session Laws - 2000, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 400-S.F.No. 1896
An act relating to human services; changing provisions
for erroneous payment of medical assistance money;
changing probate provisions for estates subject to
medical assistance claims and medical assistance
liens; directing the commissioners of human services,
revenue, and finance to develop recommendations on the
funding transfer for day services programs; amending
Minnesota Statutes 1998, sections 256B.064; 256B.15,
subdivisions 1a and 4; 514.981, subdivision 6;
524.3-801; and 525.312; proposing coding for new law
in Minnesota Statutes, chapters 524; and 525.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1998, section 256B.064, is
amended to read:
256B.064 [INELIGIBLE PROVIDER SANCTIONS; MONETARY
RECOVERY.]
Subdivision 1. [TERMINATING PAYMENTS TO INELIGIBLE
VENDORS.] The commissioner may terminate payments under this
chapter to any person or facility providing medical assistance
which that, under applicable federal law or regulation, has been
determined to be ineligible for payments under Title XIX of the
Social Security Act.
Subd. 1a. [GROUNDS FOR MONETARY RECOVERY AND SANCTIONS
AGAINST VENDORS.] The commissioner may seek monetary recovery
and impose sanctions against vendors a vendor of medical care
for any of the following: (1) fraud, theft, or abuse in
connection with the provision of medical care to recipients of
public assistance; (2) a pattern of presentment of false or
duplicate claims or claims for services not medically
necessary; (3) a pattern of making false statements of material
facts for the purpose of obtaining greater compensation than
that to which the vendor is legally entitled; (4) suspension or
termination as a Medicare vendor; (5) refusal to grant the state
agency access during regular business hours to examine all
records necessary to disclose the extent of services provided to
program recipients and appropriateness of claims for payment;
(6) failure to repay an overpayment finally established under
this section; and (7) any reason for which a vendor could be
excluded from participation in the Medicare program under
section 1128, 1128A, or 1866(b)(2) of the Social Security Act.
The determination of services not medically necessary may be
made by the commissioner in consultation with a peer advisory
task force appointed by the commissioner on the recommendation
of appropriate professional organizations. The task force
expires as provided in section 15.059, subdivision 5.
Subd. 1b. [SANCTIONS AVAILABLE.] The commissioner may
impose the following sanctions for the conduct described in
subdivision 1a: referral to the appropriate state licensing
board, suspension or withholding of payments to a vendor, and
suspending or terminating participation in the
program. Regardless of imposition of sanctions, the
commissioner may make a referral to the appropriate state
licensing board.
Subd. 1c. [GROUNDS FOR AND METHODS OF MONETARY RECOVERY.]
(a) The commissioner may obtain monetary recovery from a vendor
who has been improperly paid either as a result of conduct
described in subdivision 1a or as a result of a vendor or
department error, regardless of whether the error was
intentional. Patterns need not be proven as a precondition to
monetary recovery of erroneous or false claims, duplicate
claims, claims for services not medically necessary, or claims
based on false statements.
(b) The commissioner may obtain monetary recovery using
methods, including but not limited to the following: assessing
and recovering money improperly paid and debiting from future
payments any money improperly paid. Patterns need not be proven
as a precondition to monetary recovery of erroneous or false
claims, duplicate claims, claims for services not medically
necessary, or claims based on false statements. The
commissioner shall charge interest on money to be recovered if
the recovery is to be made by installment payments or debits,
except when the monetary recovery is of an overpayment that
resulted from a department error. The interest charged shall be
the rate established by the commissioner of revenue under
section 270.75.
Subd. 1d. [INVESTIGATIVE COSTS.] The commissioner may seek
recovery of investigative costs from any vendor of medical care
or services who willfully submits a claim for reimbursement for
services that the vendor knows, or reasonably should have known,
is a false representation and which that results in the payment
of public funds for which the vendor is ineligible. Billing
errors deemed to be unintentional, but which that result in
unintentional overcharges, shall not be considered grounds for
investigative cost recoupment.
Subd. 2. [IMPOSITION OF MONETARY RECOVERY AND SANCTIONS.]
(a) The commissioner shall determine any monetary amounts to be
recovered and the sanction sanctions to be imposed upon a vendor
of medical care for conduct described by subdivision 1a under
this section. Except as provided in paragraph (b), neither a
monetary recovery nor a sanction will be imposed by the
commissioner without prior notice and an opportunity for a
hearing, according to chapter 14, on the commissioner's proposed
action, provided that the commissioner may suspend or reduce
payment to a vendor of medical care, except a nursing home or
convalescent care facility, after notice and prior to the
hearing if in the commissioner's opinion that action is
necessary to protect the public welfare and the interests of the
program.
(b) Except for a nursing home or convalescent care
facility, the commissioner may withhold or reduce payments to a
vendor of medical care without providing advance notice of such
withholding or reduction if either of the following occurs:
(1) the vendor is convicted of a crime involving the
conduct described in subdivision 1a; or
(2) the commissioner receives reliable evidence of fraud or
willful misrepresentation by the vendor.
(c) The commissioner must send notice of the withholding or
reduction of payments under paragraph (b) within five days of
taking such action. The notice must:
(1) state that payments are being withheld according to
paragraph (b);
(2) except in the case of a conviction for conduct
described in subdivision 1a, state that the withholding is for a
temporary period and cite the circumstances under which
withholding will be terminated;
(3) identify the types of claims to which the withholding
applies; and
(4) inform the vendor of the right to submit written
evidence for consideration by the commissioner.
The withholding or reduction of payments will not continue
after the commissioner determines there is insufficient evidence
of fraud or willful misrepresentation by the vendor, or after
legal proceedings relating to the alleged fraud or willful
misrepresentation are completed, unless the commissioner has
sent notice of intention to impose monetary recovery or
sanctions under paragraph (a).
(d) Upon receipt of a notice under paragraph (a) that a
monetary recovery or sanction is to be imposed, a vendor may
request a contested case, as defined in section 14.02,
subdivision 3, by filing with the commissioner a written request
of appeal. The appeal request must be received by the
commissioner no later than 30 days after the date the
notification of monetary recovery or sanction was mailed to the
vendor. The appeal request must specify:
(1) each disputed item, the reason for the dispute, and an
estimate of the dollar amount involved for each disputed item;
(2) the computation that the vendor believes is correct;
(3) the authority in statute or rule upon which the vendor
relies for each disputed item;
(4) the name and address of the person or entity with whom
contacts may be made regarding the appeal; and
(5) other information required by the commissioner.
Sec. 2. Minnesota Statutes 1998, section 256B.15,
subdivision 1a, is amended to read:
Subd. 1a. [ESTATES SUBJECT TO CLAIMS.] If a person
receives any medical assistance hereunder, on the person's
death, if single, or on the death of the survivor of a married
couple, either or both of whom received medical assistance, the
total amount paid for medical assistance rendered for the person
and spouse shall be filed as a claim against the estate of the
person or the estate of the surviving spouse in the court having
jurisdiction to probate the estate or to issue a decree of
descent according to sections 525.31 to 525.313.
A claim shall be filed if medical assistance was rendered
for either or both persons under one of the following
circumstances:
(a) the person was over 55 years of age, and received
services under this chapter, excluding alternative care;
(b) the person resided in a medical institution for six
months or longer, received services under this chapter excluding
alternative care, and, at the time of institutionalization or
application for medical assistance, whichever is later, the
person could not have reasonably been expected to be discharged
and returned home, as certified in writing by the person's
treating physician. For purposes of this section only, a
"medical institution" means a skilled nursing facility,
intermediate care facility, intermediate care facility for
persons with mental retardation, nursing facility, or inpatient
hospital; or
(c) the person received general assistance medical care
services under chapter 256D.
The claim shall be considered an expense of the last
illness of the decedent for the purpose of section 524.3-805.
Any statute of limitations that purports to limit any county
agency or the state agency, or both, to recover for medical
assistance granted hereunder shall not apply to any claim made
hereunder for reimbursement for any medical assistance granted
hereunder. Notice of the claim shall be given to all heirs and
devisees of the decedent whose identity can be ascertained with
reasonable diligence. The notice must include procedures and
instructions for making an application for a hardship waiver
under subdivision 5; time frames for submitting an application
and determination; and information regarding appeal rights and
procedures. Counties are entitled to one-half of the nonfederal
share of medical assistance collections from estates that are
directly attributable to county effort.
Sec. 3. Minnesota Statutes 1998, section 256B.15,
subdivision 4, is amended to read:
Subd. 4. [OTHER SURVIVORS.] If the decedent who was single
or the surviving spouse of a married couple is survived by one
of the following persons, a claim exists against the estate in
an amount not to exceed the value of the nonhomestead property
included in the estate:
(a) a sibling who resided in the decedent medical
assistance recipient's home at least one year before the
decedent's institutionalization and continuously since the date
of institutionalization; or
(b) a son or daughter or, subject to federal approval, a
grandchild, who resided in the decedent medical assistance
recipient's home for at least two years immediately before the
parent's or grandparent's institutionalization and continuously
since the date of institutionalization, and who establishes by a
preponderance of the evidence having provided care to the parent
or grandparent who received medical assistance, that the care
was provided before institutionalization, and that the care
permitted the parent or grandparent to reside at home rather
than in an institution.
Sec. 4. Minnesota Statutes 1998, section 514.981,
subdivision 6, is amended to read:
Subd. 6. [TIME LIMITS; CLAIM LIMITS.] (a) A medical
assistance lien is not enforceable against specific real
property if any of the following occurs:
(1) the lien is not satisfied or proceedings are not
lawfully commenced to foreclose the lien within 18 months of the
agency's receipt of notice of the death of the medical
assistance recipient or the death of the surviving spouse,
whichever occurs later; or
(2) the lien is not satisfied or proceedings are not
lawfully commenced to foreclose the lien within three years of
the death of the medical assistance recipient or the death of
the surviving spouse, whichever occurs later. This limitation
is tolled during any period when the provisions of section
514.983, subdivision 2, apply to delay enforcement of the
lien. 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 in accordance with
the priority of claims established by chapters 256B and 524.
The agency's lien remains enforceable to the extent that assets
are available to satisfy the agency's lien, subject to the
priority of other claims, and to the extent that the agency's
claim is allowed against the estate under chapters 256B and
524 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).
Sec. 5. [524.2-215] [SURVIVING SPOUSE RECEIVING MEDICAL
ASSISTANCE.]
(a) Notwithstanding any law to the contrary, if a surviving
spouse is receiving medical assistance under chapter 256B, or
general assistance medical care under chapter 256D, when the
person's spouse dies, then the provisions in paragraphs (b) to
(f) apply.
(b) Any time before an order or decree is entered under
section 524.3-1001 or 524.3-1002 or a closing statement is filed
under section 524.3-1003 the surviving spouse may:
(1) exercise the right to take an elective share amount of
the decedent's estate under section 524.2-211, in which case the
decedent's nonprobate transfers to others shall be included in
the augmented estate for purposes of computing the elective
share and supplemental elective share amounts;
(2) petition the court for an extension of time for
exercising the right to an elective share amount under section
524.2-211, in which case the decedent's nonprobate transfers to
others shall be included in the augmented estate for purposes of
computing the elective share and supplemental elective share
amounts; or
(3) elect statutory rights in the homestead or petition the
court for an extension of time to make the election as provided
in section 524.2-211, paragraph (f).
(c) Notwithstanding any law or rule to the contrary, the
personal representative of the estate of the surviving spouse
may exercise the surviving spouse's right of election and
statutory right to the homestead in the manner provided for
making those elections or petition for an extension of time as
provided for in this section.
(d) If choosing the elective share will result in the
surviving spouse receiving a share of the decedent's estate
greater in value than the share of the estate under the will or
intestate succession, then the guardian or conservator for the
surviving spouse shall exercise the surviving spouse's right to
an elective share amount and a court order is not required.
(e) A party petitioning to establish a guardianship or
conservatorship for the surviving spouse may file a certified
copy of the petition in the decedent's estate proceedings and
serve a copy of the petition on the personal representative or
the personal representative's attorney. The filing of the
petition shall toll all of the limitations provided in this
section until the entry of a final order granting or denying the
petition. The decedent's estate may not close until the entry
of a final order granting or denying the petition.
(1) Distributees of the decedent's estate shall be
personally liable to account for and turn over to the ward, the
conservatee, or the estate of the ward or conservatee any and
all amounts which the ward or conservatee is entitled to receive
from the decedent's estate.
(2) No distributee shall be liable for an amount in excess
of the value of the distributee's distribution as of the time of
the distribution.
(3) The ward, conservatee, guardian, conservator, or
personal representative may bring proceedings in district court
to enforce the rights in this section.
(f) Notwithstanding any oral or written contract,
agreement, or waiver made by the surviving spouse to waive in
whole or in part the surviving spouse's right of election
against the decedent's will, statutory right to the homestead,
exempt property, or family allowance, the surviving spouse or
the surviving spouse's guardian or conservator may exercise
these rights to the full extent permitted by law. The surviving
spouse's rights under this paragraph do not apply to the extent
there is a valid antenuptial agreement between the surviving
spouse and the decedent under which the surviving spouse has
waived some or all of these rights.
Sec. 6. Minnesota Statutes 1998, section 524.3-801, is
amended to read:
524.3-801 [NOTICE TO CREDITORS.]
(a) Unless notice has already been given under this
section, upon appointment of a general personal representative
in informal proceedings or upon the filing of a petition for
formal appointment of a general personal representative, notice
thereof, in the form prescribed by court rule, shall be given
under the direction of the court administrator by publication
once a week for two successive weeks in a legal newspaper in the
county wherein the proceedings are pending giving the name and
address of the general personal representative and notifying
creditors of the estate to present their claims within four
months after the date of the court administrator's notice which
is subsequently published or be forever barred, unless they are
entitled to further service of notice under paragraph (b) or (c).
(b)(1) Within three months after: (i) the date of the
first publication of the notice; or (ii) June 16, 1989,
whichever is later, the personal representative may determine,
in the personal representative's discretion, that it is or is
not advisable to conduct a reasonably diligent search for
creditors of the decedent who are either not known or not
identified. If the personal representative determines that a
reasonably diligent search is advisable, the personal
representative shall conduct the search.
(2) If the notice is first published after June 16, 1989,
the personal representative shall, within three months after the
date of the first publication of the notice, serve a copy of the
notice upon each then known and identified creditor in the
manner provided in paragraph (c). Notice given under paragraph
(d) does not satisfy the notice requirements under this
paragraph and paragraph (c). If notice was first published
under the applicable provisions of law under the direction of
the court administrator before June 16, 1989, and if a personal
representative is empowered to act at any time after June 16,
1989, the personal representative shall, within three months
after June 16, 1989, serve upon the then known and identified
creditors in the manner provided in paragraph (c) a copy of the
notice as published, together with a supplementary notice
requiring each of the creditors to present any claim within one
month after the date of the service of the notice or be forever
barred.
(3) Under this section, a creditor is "known" if: (i) the
personal representative knows that the creditor has asserted a
claim that arose during the decedent's life against either the
decedent or the decedent's estate; or (ii) the creditor has
asserted a claim that arose during the decedent's life and the
fact is clearly disclosed in accessible financial records known
and available to the personal representative. Under this
section, a creditor is "identified" if the personal
representative's knowledge of the name and address of the
creditor will permit service of notice to be made under
paragraph (c).
(c) The personal representative shall serve a copy of any
notice and any supplementary notice required by paragraph (b),
clause (1) or (2), upon each creditor of the decedent who is
then known to the personal representative and identified, except
a creditor whose claim has either been presented to the personal
representative or paid, either by delivery of a copy of the
required notice to the creditor, or by mailing a copy of the
notice to the creditor by certified, registered, or ordinary
first class mail addressed to the creditor at the creditor's
office or place of residence.
(d)(1) Effective for decedents dying on or after July 1,
1997, if the decedent or a predeceased spouse of the decedent
received assistance for which a claim could be filed under
section 246.53, 256B.15, 256D.16, or 261.04, the personal
representative or the attorney for the personal representative
shall serve the commissioner of human services with notice in
the manner prescribed in paragraph (c) as soon as practicable
after the appointment of the personal representative. The
notice must state the decedent's full name, date of birth, and
social security number and, to the extent then known after
making a reasonably diligent inquiry, the full name, date of
birth, and social security number for each of the decedent's
predeceased spouses. The notice may also contain a statement
that, after making a reasonably diligent inquiry, the personal
representative has determined that the decedent did not have any
predeceased spouses or that the personal representative has been
unable to determine one or more of the previous items of
information for a predeceased spouse of the decedent. A copy of
the notice to creditors must be attached to and be a part of the
notice to the commissioner.
(2) Notwithstanding a will or other instrument or law to
the contrary, except as allowed in this paragraph, no property
subject to administration by the estate may be distributed by
the estate or the personal representative until 70 days after
the date the notice is served on the commissioner as provided in
paragraph (c), unless the local agency consents as provided for
in clause (6). This restriction on distribution does not apply
to the personal representative's sale of real or personal
property, but does apply to the net proceeds the estate receives
from these sales. The personal representative, or any person
with personal knowledge of the facts, may provide an affidavit
containing the description of any real or personal property
affected by this paragraph and stating facts showing compliance
with this paragraph. If the affidavit describes real property,
it may be filed or recorded in the office of the county recorder
or registrar of titles for the county where the real property is
located. This paragraph does not apply to proceedings under
sections 524.3-1203 and 525.31, or when a duly authorized agent
of a county is acting as the personal representative of the
estate.
(3) At any time before an order or decree is entered under
section 524.3-1001 or 524.3-1002, or a closing statement is
filed under section 524.3-1003, the personal representative or
the attorney for the personal representative may serve an
amended notice on the commissioner to add variations or other
names of the decedent or a predeceased spouse named in the
notice, the name of a predeceased spouse omitted from the
notice, to add or correct the date of birth or social security
number of a decedent or predeceased spouse named in the notice,
or to correct any other deficiency in a prior notice. The
amended notice must state the decedent's name, date of birth,
and social security number, the case name, case number, and
district court in which the estate is pending, and the date the
notice being amended was served on the commissioner. If the
amendment adds the name of a predeceased spouse omitted from the
notice, it must also state that spouse's full name, date of
birth, and social security number. The amended notice must be
served on the commissioner in the same manner as the original
notice. Upon service, the amended notice relates back to and is
effective from the date the notice it amends was served, and the
time for filing claims arising under section 246.53, 256B.15,
256D.16 or 261.04 is extended by 60 days from the date of
service of the amended notice. Claims filed during the 60-day
period are undischarged and unbarred claims, may be prosecuted
by the entities entitled to file those claims in accordance with
section 524.3-1004, and the limitations in section 524.3-1006 do
not apply. The personal representative or any person with
personal knowledge of the facts may provide and file or record
an affidavit in the same manner as provided for in clause (1).
(4) Within one year after the date an order or decree is
entered under section 524.3-1001 or 524.3-1002 or a closing
statement is filed under section 524.3-1003, any person who has
an interest in property that was subject to administration by
the estate may serve an amended notice on the commissioner to
add variations or other names of the decedent or a predeceased
spouse named in the notice, the name of a predeceased spouse
omitted from the notice, to add or correct the date of birth or
social security number of a decedent or predeceased spouse named
in the notice, or to correct any other deficiency in a prior
notice. The amended notice must be served on the commissioner
in the same manner as the original notice and must contain the
information required for amendments under clause (3). If the
amendment adds the name of a predeceased spouse omitted from the
notice, it must also state that spouse's full name, date of
birth, and social security number. Upon service, the amended
notice relates back to and is effective from the date the notice
it amends was served. If the amended notice adds the name of an
omitted predeceased spouse or adds or corrects the social
security number or date of birth of the decedent or a
predeceased spouse already named in the notice, then,
notwithstanding any other laws to the contrary, claims against
the decedent's estate on account of those persons resulting from
the amendment and arising under section 246.53, 256B.15,
256D.16, or 261.04 are undischarged and unbarred claims, may be
prosecuted by the entities entitled to file those claims in
accordance with section 524.3-1004, and the limitations in
section 524.3-1006 do not apply. The person filing the
amendment or any other person with personal knowledge of the
facts may provide and file or record an affidavit describing
affected real or personal property in the same manner as clause
(1).
(5) After one year from the date an order or decree is
entered under section 524.3-1001 or 524.3-1002, or a closing
statement is filed under section 524.3-1003, no error, omission,
or defect of any kind in the notice to the commissioner required
under this paragraph or in the process of service of the notice
on the commissioner, or the failure to serve the commissioner
with notice as required by this paragraph, makes any
distribution of property by a personal representative void or
voidable. The distributee's title to the distributed property
shall be free of any claims based upon a failure to comply with
this paragraph.
(6) The local agency may consent to a personal
representative's request to distribute property subject to
administration by the estate to distributees during the 70-day
period after service of notice on the commissioner. The local
agency may grant or deny the request in whole or in part and may
attach conditions to its consent as it deems appropriate. When
the local agency consents to a distribution, it shall give the
estate a written certificate evidencing its consent to the early
distribution of assets at no cost. The certificate must include
the name, case number, and district court in which the estate is
pending, the name of the local agency, describe the specific
real or personal property to which the consent applies, state
that the local agency consents to the distribution of the
specific property described in the consent during the 70-day
period following service of the notice on the commissioner,
state that the consent is unconditional or list all of the terms
and conditions of the consent, be dated, and may include other
contents as may be appropriate. The certificate must be signed
by the director of the local agency or the director's designees
and is effective as of the date it is dated unless it provides
otherwise. The signature of the director or the director's
designee does not require any acknowledgment. The certificate
shall be prima facie evidence of the facts it states, may be
attached to or combined with a deed or any other instrument of
conveyance and, when so attached or combined, shall constitute a
single instrument. If the certificate describes real property,
it shall be accepted for recording or filing by the county
recorder or registrar of titles in the county in which the
property is located. If the certificate describes real property
and is not attached to or combined with a deed or other
instrument of conveyance, it shall be accepted for recording or
filing by the county recorder or registrar of titles in the
county in which the property is located. The certificate
constitutes a waiver of the 70-day period provided for in clause
(2) with respect to the property it describes and is prima facie
evidence of service of notice on the commissioner. The
certificate is not a waiver or relinquishment of any claims
arising under section 246.53, 256B.15, 256D.16, or 261.04, and
does not otherwise constitute a waiver of any of the personal
representative's duties under this paragraph. Distributees who
receive property pursuant to a consent to an early distribution
shall remain liable to creditors of the estate as provided for
by law.
(7) All affidavits provided for under this paragraph:
(i) shall be provided by persons who have personal
knowledge of the facts stated in the affidavit;
(ii) may be filed or recorded in the office of the county
recorder or registrar of titles in the county in which the real
property they describe is located for the purpose of
establishing compliance with the requirements of this paragraph;
and
(iii) are prima facie evidence of the facts stated in the
affidavit.
(8) This paragraph applies to the estates of decedents
dying on or after July 1, 1997. Clause (5) also applies with
respect to all notices served on the commissioner of human
services before July 1, 1997, under Laws 1996, chapter 451,
article 2, section 55. All notices served on the commissioner
before July 1, 1997, pursuant to Laws 1996, chapter 451, article
2, section 55, shall be deemed to be legally sufficient for the
purposes for which they were intended, notwithstanding any
errors, omissions or other defects.
Sec. 7. Minnesota Statutes 1998, section 525.312, is
amended to read:
525.312 [DECREE OF DESCENT.]
Upon the filing of such petition, the court shall fix the
time and place for the hearing thereof, notice of which shall be
given pursuant to section 524.1-401. Notice of the hearing, in
the form prescribed by court rule, shall also be given under
direction of the court administrator by publication once a week
for two consecutive weeks in a legal newspaper in the county
where the hearing is to be held, the last publication of which
is to be at least ten days before the time set for hearing.
Upon proof of the petition and of the will if there be one,; or
upon proof of the petition and of an authenticated copy of a
will duly proved and allowed outside of this state in accordance
with the laws in force in the place where proved, if there be
one,; and if a clearance for medical assistance claims is on
file in the proceeding and any medical assistance claims are
paid or satisfied, the court shall allow the same and enter its
decree of descent assigning the real or personal property, or
any interest therein, to the persons entitled thereto pursuant
to the will or such authenticated copy, if there be one,
otherwise pursuant to the laws of intestate succession in force
at the time of the decedent's death. The decree of descent
shall operate to assign the property free and clear of any and
all claims for medical assistance arising under section 525.313
without regard to the final disposition of those claims. The
court may appoint two or more disinterested persons to appraise
the property.
Sec. 8. [525.313] [CLEARANCE FOR MEDICAL ASSISTANCE
CLAIMS.]
(a) The court shall not enter a decree of descent until the
petitioner has filed a clearance for medical assistance claims
under this section, and until any medical assistance claims
filed under this section have been paid, settled, or otherwise
finally disposed of.
(b) After filing the petition, the petitioner or the
petitioner's attorney shall apply to the county agency in the
county in which the petition is pending for a clearance of
medical assistance claims. The application must state the
decedent's name, date of birth, and social security number; the
name, date of birth, and social security number of any
predeceased spouse of the decedent; the names and addresses of
the devisees and heirs; and the name, address, and telephone
number of the petitioner or the attorney making the application
on behalf of the petitioner, and include a copy of the notice of
hearing.
(c) The county agency shall determine whether the decedent
or any of the decedent's predeceased spouses received medical
assistance under chapter 256B or general assistance medical care
under chapter 256D giving rise to a claim under section
256B.15. If there are no claims, the county agency shall issue
the petitioner a clearance for medical assistance claims stating
no medical assistance claims exist. If there is a claim, the
county agency shall issue the petitioner a clearance for medical
assistance claims stating that a claim exists and the total
amount of the claim. The county agency shall mail the completed
clearance for medical assistance claims to the applicant within
15 working days after receiving the application without cost to
the applicant or others.
(d) The petitioner or attorney shall file the certificate
in the proceedings for the decree of descent as soon as
practicable after it is received. Notwithstanding any rule or
law to the contrary, if a medical assistance claim appears in a
clearance for medical assistance claims, then:
(1) the claim shall be a claim against the decedent's
property which is the subject of the petition. The county
agency issuing the certificate shall be the claimant. The
filing of the clearance for medical assistance claims in the
proceeding for a decree of descent constitutes presentation of
the claim;
(2) the claim shall be an unbarred and undischarged claim
and shall be payable, in whole or in part, from the decedent's
property which is the subject of the petition, including the net
sale proceeds from any sale of property free and clear of the
claim under this section;
(3) the claim may be allowed, denied, appealed, and bear
interest as provided for claims in estates under chapter 524;
and
(4) the county agency may collect, compromise, or otherwise
settle the claim with the estate, the petitioner, or the
assignees of the property on whatever terms and conditions are
deemed appropriate.
(e) Any of the decedent's devisees, heirs, successors,
assigns, or their successors and assigns, may apply for a
partial decree of descent to facilitate the good faith sale of
their interest in any real or personal property described in the
petition free and clear of any medical assistance claim any time
before the entry of a decree of descent under section 525.312.
The applicant must prove an interest in the property as provided
under section 525.312. The court may enter a partial decree of
descent any time after it could hear and decide the petition for
a decree of descent. A partial decree of descent shall assign
the interests in the real and personal property described in the
application to the parties entitled to the property free and
clear of any and all medical assistance claims. The net sale
proceeds from the sale shall be:
(1) substituted in the estate according to this section for
the property sold;
(2) paid over to and held by the petitioner pending the
entry of a decree of descent;
(3) used for payment of medical assistance claims; and
(4) distributed according to the decree of descent after
any medical assistance claims are paid.
(f) The clearance for medical assistance claims must:
(1) include the case name, case number, and district court
in which the proceeding for a decree of descent is pending;
(2) include the name, date of birth, and social security
number of the decedent and any of the decedent's predeceased
spouses;
(3) state whether there are medical assistance claims
against the decedent, or a predeceased spouse, and the total
amount of each claim; and
(4) include the name, address, and telephone number of the
county agency giving the clearance for medical assistance
claims. The certificate shall be signed by the director of the
county agency or the director's designee. The signature of the
director or the director's designee does not require an
acknowledgment.
(g) All recoveries under this section are recoveries under
section 256B.15.
(h) For purposes of this section and chapter 256B, all
property identified in the petition and all subsequent
amendments to the petition shall constitute an estate.
Sec. 9. [DAY SERVICES PROGRAMS.]
The commissioners of human services, revenue, and finance,
in consultation with representatives of interested groups,
including family members, advocacy organizations, counties,
service providers, and others, shall develop specific
legislative recommendations on the transfer from county funds to
the state general fund for the responsibility for funding day
training and habilitation services under Minnesota Statutes,
section 252.41, including a proposal for a home and
community-based waiver for day services programs. The
recommendation shall include estimated cost of the nonfederal
share of medical assistance day services. The recommendations,
including cost estimates, shall be provided to the chairs of the
house health and human services policy and finance committees
and the senate health and family security committee and budget
division by January 1, 2001.
Presented to the governor April 11, 2000
Signed by the governor April 14, 2000, 2:45 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes