2004 Minnesota Statutes

     514.992 Alternative care lien. 

    Subdivision 1.    Property subject to lien; lien amount. 
  (a) Subject to sections 514.991 to 514.995, payments made by 
 an alternative care agency to provide benefits to a recipient or 
 to the recipient's spouse who owns property in this state 
 constitute a lien in favor of the agency on all real property 
 the recipient owns at and after the time the benefits are first 
 paid. 

    (b) The amount of the lien is limited to benefits paid for 
 services provided to recipients over 55 years of age and 
 provided on and after July 1, 2003. 

    Subd. 2.    Attachment.  (a) A lien attaches to and 
 becomes enforceable against specific real property as of the 
 date when all of the following conditions are met: 

    (1) the agency has paid benefits for a recipient; 

    (2) the recipient has been given notice and an opportunity 
 for a hearing under paragraph (b); 

    (3) the lien has been filed as provided for in section 
 514.993 or memorialized on the certificate of title for the 
 property it describes; and 

    (4) all restrictions against enforcement have ceased to 
 apply. 

    (b) An agency may not file a lien until it has sent the 
 recipient, their authorized representative, or their legal 
 representative written notice of its lien rights by certified 
 mail, return receipt requested, or registered mail and there has 
 been an opportunity for a hearing under section 256.045.  No 
 person other than the recipient shall have a right to a hearing 
 under section 256.045 prior to the time the lien is filed.  The 
 hearing shall be limited to whether the agency has met all of 
 the prerequisites for filing the lien and whether any of the 
 exceptions in this section apply. 

    (c) An agency may not file a lien against the recipient's 
 homestead when any of the following exceptions apply: 

    (1) while the recipient's spouse is also physically present 
 and lawfully and continuously residing in the homestead; 

    (2) a child of the recipient who is under age 21 or who is 
 blind or totally and permanently disabled according to 
 supplemental security income criteria is also physically present 
 on the property and lawfully and continuously residing on the 
 property from and after the date the recipient first receives 
 benefits; 

    (3) a child of the recipient who has also lawfully and 
 continuously resided on the property for a period beginning at 
 least two years before the first day of the month in which the 
 recipient began receiving alternative care, and who provided 
 uncompensated care to the recipient which enabled the recipient 
 to live without alternative care services for the two-year 
 period; 

    (4) a sibling of the recipient who has an ownership 
 interest in the property of record in the office of the county 
 recorder or registrar of titles for the county in which the real 
 property is located and who has also continuously occupied the 
 homestead for a period of at least one year immediately prior to 
 the first day of the first month in which the recipient received 
 benefits and continuously since that date. 

    (d) A lien only applies to the real property it describes. 

    Subd. 3.    Continuation of lien.  A lien remains 
 effective from the time it is filed until it is paid, satisfied, 
 discharged, or becomes unenforceable under sections 514.991 to 
 514.995. 

    Subd. 4.    Priority of lien.  (a) A lien which attaches 
 to the real property it describes is subject to the rights of 
 anyone else whose interest in the real property is perfected of 
 record before the lien has been recorded or filed under section 
 514.993, including: 

    (1) an owner, other than the recipient or the recipient's 
 spouse; 

    (2) a good faith purchaser for value without notice of the 
 lien; 

    (3) a holder of a mortgage or security interest; or 

    (4) a judgment lien creditor whose judgment lien has 
 attached to the recipient's interest in the real property. 

    (b) The rights of the other person have the same 
 protections against an alternative care lien as are afforded 
 against a judgment lien that arises out of an unsecured 
 obligation and arises as of the time of the filing of an 
 alternative care grant lien under section 514.993.  The lien 
 shall be inferior to a lien for property taxes and special 
 assessments and shall be superior to all other matters first 
 appearing of record after the time and date the lien is filed or 
 recorded. 

    Subd. 5.    Settlement, subordination, and release.  (a) 
 An agency may, with absolute discretion, settle or subordinate 
 the lien to any other lien or encumbrance of record upon the 
 terms and conditions it deems appropriate. 

    (b) The agency filing the lien shall release and discharge 
 the lien: 

    (1) if it has been paid, discharged, or satisfied; 

    (2) if it has received reimbursement for the amounts 
 secured by the lien, has entered into a binding and legally 
 enforceable agreement under which it is reimbursed for the 
 amount of the lien, or receives other collateral sufficient to 
 secure payment of the lien; 

    (3) against some, but not all, of the property it describes 
 upon the terms, conditions, and circumstances the agency deems 
 appropriate; 

    (4) to the extent it cannot be lawfully enforced against 
 the property it describes because of an error, omission, or 
 other material defect in the legal description contained in the 
 lien or a necessary prerequisite to enforcement of the lien; and 

    (5) if, in its discretion, it determines the filing or 
 enforcement of the lien is contrary to the public interest. 

    (c) The agency executing the lien shall execute and file 
 the release as provided for in section 514.993, subdivision 2. 

    Subd. 6.    Length of lien.  (a) A lien shall be a lien 
 on the real property it describes for a period of ten years from 
 the date it attaches according to subdivision 2, paragraph (a), 
 except as otherwise provided for in sections 514.992 to 
 514.995.  The agency filing the lien may renew the lien for one 
 additional ten-year period from the date it would otherwise 
 expire by recording or filing a certificate of renewal before 
 the lien expires.  The certificate of renewal 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 lien it renews.  The certificate need not be attested, 
 certified, or acknowledged as a condition for recording or 
 filing.  The recorder or registrar of titles shall record, file, 
 index, and return the certificate of renewal in the same manner 
 provided for liens in section 514.993, subdivision 2. 

    (b) An alternative care 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 lien in whole 
 or in part because of the homestead exemption under section 
 256B.15, subdivision 4, the rights of a surviving spouse or a 
 minor child 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). 

    HIST: 1Sp2003 c 14 art 2 s 48