1998 Minnesota Statutes

     256B.0595 Prohibitions on transfer; exceptions. 

    Subdivision 1.    Prohibited transfers.  (a) For 
 transfers of assets made on or before August 10, 1993, if a 
 person or the person's spouse has given away, sold, or disposed 
 of, for less than fair market value, any asset or interest 
 therein, except assets other than the homestead that are 
 excluded under the supplemental security program, within 30 
 months before or any time after the date of institutionalization 
 if the person has been determined eligible for medical 
 assistance, or within 30 months before or any time after the 
 date of the first approved application for medical assistance if 
 the person has not yet been determined eligible for medical 
 assistance, the person is ineligible for long-term care services 
 for the period of time determined under subdivision 2.  

    (b) Effective for transfers made after August 10, 1993, a 
 person, a person's spouse, or any person, court, or 
 administrative body with legal authority to act in place of, on 
 behalf of, at the direction of, or upon the request of the 
 person or person's spouse, may not give away, sell, or dispose 
 of, for less than fair market value, any asset or interest 
 therein, except assets other than the homestead that are 
 excluded under the supplemental security income program, for the 
 purpose of establishing or maintaining medical assistance 
 eligibility.  For purposes of determining eligibility for 
 long-term care services, any transfer of such assets within 36 
 months before or any time after an institutionalized person 
 applies for medical assistance, or 36 months before or any time 
 after a medical assistance recipient becomes institutionalized, 
 for less than fair market value may be considered.  Any such 
 transfer is presumed to have been made for the purpose of 
 establishing or maintaining medical assistance eligibility and 
 the person is ineligible for long-term care services for the 
 period of time determined under subdivision 2, unless the person 
 furnishes convincing evidence to establish that the transaction 
 was exclusively for another purpose, or unless the transfer is 
 permitted under subdivision 3 or 4.  Notwithstanding the 
 provisions of this paragraph, in the case of payments from a 
 trust or portions of a trust that are considered transfers of 
 assets under federal law, any transfers made within 60 months 
 before or any time after an institutionalized person applies for 
 medical assistance and within 60 months before or any time after 
 a medical assistance recipient becomes institutionalized, may be 
 considered. 

    (c) This section applies to transfers, for less than fair 
 market value, of income or assets, including assets that are 
 considered income in the month received, such as inheritances, 
 court settlements, and retroactive benefit payments or income to 
 which the person or the person's spouse is entitled but does not 
 receive due to action by the person, the person's spouse, or any 
 person, court, or administrative body with legal authority to 
 act in place of, on behalf of, at the direction of, or upon the 
 request of the person or the person's spouse.  

    (d) This section applies to payments for care or personal 
 services provided by a relative, unless the compensation was 
 stipulated in a notarized, written agreement which was in 
 existence when the service was performed, the care or services 
 directly benefited the person, and the payments made represented 
 reasonable compensation for the care or services provided.  A 
 notarized written agreement is not required if payment for the 
 services was made within 60 days after the service was provided. 

    (e) This section applies to the portion of any asset or 
 interest that a person, a person's spouse, or any person, court, 
 or administrative body with legal authority to act in place of, 
 on behalf of, at the direction of, or upon the request of the 
 person or the person's spouse, transfers to any annuity that 
 exceeds the value of the benefit likely to be returned to the 
 person or spouse while alive, based on estimated life expectancy 
 using the life expectancy tables employed by the supplemental 
 security income program to determine the value of an agreement 
 for services for life.  The commissioner may adopt rules 
 reducing life expectancies based on the need for long-term care. 

    (f) For purposes of this section, long-term care services 
 include services in a nursing facility, services that are 
 eligible for payment according to section 256B.0625, subdivision 
 2, because they are provided in a swing bed, intermediate care 
 facility for persons with mental retardation, and home and 
 community-based services provided pursuant to sections 
 256B.0915, 256B.092, and 256B.49.  For purposes of this 
 subdivision and subdivisions 2, 3, and 4, "institutionalized 
 person" includes a person who is an inpatient in a nursing 
 facility or in a swing bed, or intermediate care facility for 
 persons with mental retardation or who is receiving home and 
 community-based services under sections 256B.0915, 256B.092, and 
 256B.49. 

    (g) Effective for transfers made on or after July 1, 1995, 
 or upon federal approval, whichever is later, a person, a 
 person's spouse, or any person, court, or administrative body 
 with legal authority to act in place of, on behalf of, at the 
 direction of, or upon the request of the person or person's 
 spouse, may not give away, sell, or dispose of, for less than 
 fair market value, any asset or interest therein, for the 
 purpose of establishing or maintaining medical assistance 
 eligibility.  For purposes of determining eligibility for 
 long-term care services, any transfer of such assets within 60 
 months before, or any time after, an institutionalized person 
 applies for medical assistance, or 60 months before, or any time 
 after, a medical assistance recipient becomes institutionalized, 
 for less than fair market value may be considered.  Any such 
 transfer is presumed to have been made for the purpose of 
 establishing or maintaining medical assistance eligibility and 
 the person is ineligible for long-term care services for the 
 period of time determined under subdivision 2, unless the person 
 furnishes convincing evidence to establish that the transaction 
 was exclusively for another purpose, or unless the transfer is 
 permitted under subdivision 3 or 4. 

    Subd. 1a.    Prohibited transfers.  (a) Notwithstanding 
 any contrary provisions of this section, this subdivision 
 applies to transfers involving recipients of medical assistance 
 that are made on or after April 13, 1996, to the extent 
 permitted by federal law, and to all transfers involving persons 
 who apply for medical assistance on or after April 13, 1996, to 
 the extent permitted by federal law, if the transfer occurred 
 within 72 months before the person applies for medical 
 assistance, except that this subdivision does not apply to 
 transfers made prior to March 1, 1996.  A person, a person's 
 spouse, or any person, court, or administrative body with legal 
 authority to act in place of, on behalf of, at the direction of, 
 or upon the request of the person or the person's spouse, may 
 not give away, sell, dispose of, or reduce ownership or control 
 of any income, asset, or interest therein for less than fair 
 market value for the purpose of establishing or maintaining 
 medical assistance eligibility for the person.  For purposes of 
 determining eligibility for medical assistance services, any 
 transfer of such income or assets for less than fair market 
 value within 72 months before or any time after a person applies 
 for medical assistance may be considered.  Any such transfer is 
 presumed to have been made for the purpose of establishing or 
 maintaining medical assistance eligibility, and the person is 
 ineligible for medical assistance services for the period of 
 time determined under subdivision 2a, unless the person 
 furnishes convincing evidence to establish that the transaction 
 was exclusively for another purpose, or unless the transfer is 
 permitted under subdivision 3a or 4a. 

    (b) This section applies to transfers of income or assets 
 for less than fair market value, including assets that are 
 considered income in the month received, such as inheritances, 
 court settlements, and retroactive benefit payments or income to 
 which the person or the person's spouse is entitled but does not 
 receive due to action by the person, the person's spouse, or any 
 person, court, or administrative body with legal authority to 
 act in place of, on behalf of, at the direction of, or upon the 
 request of the person or the person's spouse.  

    (c) This section applies to payments for care or personal 
 services provided by a relative, unless the compensation was 
 stipulated in a notarized, written agreement which was in 
 existence when the service was performed, the care or services 
 directly benefited the person, and the payments made represented 
 reasonable compensation for the care or services provided.  A 
 notarized written agreement is not required if payment for the 
 services was made within 60 days after the service was provided. 

    (d) This section applies to the portion of any income, 
 asset, or interest therein that a person, a person's spouse, or 
 any person, court, or administrative body with legal authority 
 to act in place of, on behalf of, at the direction of, or upon 
 the request of the person or the person's spouse, transfers to 
 any annuity that exceeds the value of the benefit likely to be 
 returned to the person or spouse while alive, based on estimated 
 life expectancy of adults entering long-term care.  The 
 commissioner shall adopt rules establishing life expectancies of 
 adults entering long-term care. 

    Subd. 2.    Period of ineligibility.  (a) For any 
 uncompensated transfer occurring on or before August 10, 1993, 
 the number of months of ineligibility for long-term care 
 services shall be the lesser of 30 months, or the uncompensated 
 transfer amount divided by the average medical assistance rate 
 for nursing facility services in the state in effect on the date 
 of application.  The amount used to calculate the average 
 medical assistance payment rate shall be adjusted each July 1 to 
 reflect payment rates for the previous calendar year.  The 
 period of ineligibility begins with the month in which the 
 assets were transferred.  If the transfer was not reported to 
 the local agency at the time of application, and the applicant 
 received long-term care services during what would have been the 
 period of ineligibility if the transfer had been reported, a 
 cause of action exists against the transferee for the cost of 
 long-term care services provided during the period of 
 ineligibility, or for the uncompensated amount of the transfer, 
 whichever is less.  The action may be brought by the state or 
 the local agency responsible for providing medical assistance 
 under chapter 256G.  The uncompensated transfer amount is the 
 fair market value of the asset at the time it was given away, 
 sold, or disposed of, less the amount of compensation received.  

    (b) For uncompensated transfers made after August 10, 1993, 
 the number of months of ineligibility for long-term care 
 services shall be the total uncompensated value of the resources 
 transferred divided by the average medical assistance rate for 
 nursing facility services in the state in effect on the date of 
 application.  The amount used to calculate the average medical 
 assistance payment rate shall be adjusted each July 1 to reflect 
 payment rates for the previous calendar year.  The period of 
 ineligibility begins with the month in which the assets were 
 transferred except that if one or more uncompensated transfers 
 are made during a period of ineligibility, the total assets 
 transferred during the ineligibility period shall be combined 
 and a penalty period calculated to begin in the month the first 
 uncompensated transfer was made.  If the transfer was not 
 reported to the local agency at the time of application, and the 
 applicant received medical assistance services during what would 
 have been the period of ineligibility if the transfer had been 
 reported, a cause of action exists against the transferee for 
 the cost of medical assistance services provided during the 
 period of ineligibility, or for the uncompensated amount of the 
 transfer, whichever is less.  The action may be brought by the 
 state or the local agency responsible for providing medical 
 assistance under chapter 256G.  The uncompensated transfer 
 amount is the fair market value of the asset at the time it was 
 given away, sold, or disposed of, less the amount of 
 compensation received.  

    (c) If a calculation of a penalty period results in a 
 partial month, payments for long-term care services shall be 
 reduced in an amount equal to the fraction, except that in 
 calculating the value of uncompensated transfers, if the total 
 value of all uncompensated transfers made in a month not 
 included in an existing penalty period does not exceed $500, 
 then such transfers shall be disregarded for each month prior to 
 the month of application for or during receipt of medical 
 assistance. 

    Subd. 2a.    Period of ineligibility.  (a) 
 Notwithstanding any contrary provisions of this section, this 
 subdivision applies to transfers involving recipients of medical 
 assistance that are made on or after April 13, 1996, to the 
 extent permitted by federal law, and to all transfers involving 
 persons who apply for medical assistance on or after April 13, 
 1996, to the extent permitted by federal law, regardless of when 
 the transfer occurred, except that this subdivision does not 
 apply to transfers made prior to March 1, 1996.  For any 
 uncompensated transfer occurring within 72 months prior to the 
 date of application, at any time after application, or while 
 eligible, the number of months of cumulative ineligibility for 
 medical assistance services shall be the total uncompensated 
 value of the assets and income transferred divided by the 
 statewide average per person nursing facility payment made by 
 the state in effect on the date of application.  The amount used 
 to calculate the average per person payment shall be adjusted 
 each July 1 to reflect average payments for the previous 
 calendar year.  For applicants, the period of ineligibility 
 begins with the month in which the person applied for medical 
 assistance and satisfied all other requirements for eligibility, 
 or the month the local agency becomes aware of the transfer, if 
 later.  For recipients, the period of ineligibility begins in 
 the month the agency becomes aware of the transfer, except that 
 penalty periods for transfers made during a period of 
 ineligibility as determined under this section shall begin in 
 the month following the existing period of ineligibility.  If 
 the transfer was not reported to the local agency at the time of 
 application, and the applicant received medical assistance 
 services during what would have been the period of ineligibility 
 if the transfer had been reported, a cause of action exists 
 against the transferee for the cost of medical assistance 
 services provided during the period of ineligibility, or for the 
 uncompensated amount of the transfer that was not recovered from 
 the transferor through the implementation of a penalty period 
 under this subdivision, whichever is less.  The action may be 
 brought by the state or the local agency responsible for 
 providing medical assistance under chapter 256G.  The total 
 uncompensated value is the fair market value of the income or 
 asset at the time it was given away, sold, or disposed of, less 
 the amount of compensation received.  No cause of action exists 
 for a transfer, unless:  

    (1) the transferee knew or should have known that the 
 transfer was being made by a person who was a resident of a 
 long-term care facility or was receiving that level of care in 
 the community at the time of the transfer; 

    (2) the transferee knew or should have known that the 
 transfer was being made to assist the person to qualify for or 
 retain medical assistance eligibility; or 

    (3) the transferee actively solicited the transfer with 
 intent to assist the person to qualify for or retain eligibility 
 for medical assistance. 

    (b) If a calculation of a penalty period results in a 
 partial month, payments for medical assistance services shall be 
 reduced in an amount equal to the fraction, except that in 
 calculating the value of uncompensated transfers, if the total 
 value of all uncompensated transfers made in a month not 
 included in an existing penalty period does not exceed $500, 
 then such transfers shall be disregarded for each month prior to 
 the month of application for or during receipt of medical 
 assistance. 

    Subd. 3.    Homestead exception to transfer prohibition. 
  (a) An institutionalized person is not ineligible for 
 long-term care services due to a transfer of assets for less 
 than fair market value if the asset transferred was a homestead 
 and: 

    (1) title to the homestead was transferred to the 
 individual's 

    (i) spouse; 

    (ii) child who is under age 21; 

    (iii) blind or permanently and totally disabled child as 
 defined in the supplemental security income program; 

    (iv) sibling who has equity interest in the home and who 
 was residing in the home for a period of at least one year 
 immediately before the date of the individual's admission to the 
 facility; or 

    (v) son or daughter who was residing in the individual's 
 home for a period of at least two years immediately before the 
 date of the individual's admission to the facility, and who 
 provided care to the individual that, as certified by the 
 individual's attending physician, permitted the individual to 
 reside at home rather than in an institution or facility; 

    (2) a satisfactory showing is made that the individual 
 intended to dispose of the homestead at fair market value or for 
 other valuable consideration; or 

    (3) the local agency grants a waiver of a penalty resulting 
 from a transfer for less than fair market value because denial 
 of eligibility would cause undue hardship for the individual, 
 based on imminent threat to the individual's health and 
 well-being.  Whenever an applicant or recipient is denied 
 eligibility because of a transfer for less than fair market 
 value, the local agency shall notify the applicant or recipient 
 that the applicant or recipient may request a waiver of the 
 penalty if the denial of eligibility will cause undue hardship.  
 In evaluating a waiver, the local agency shall take into account 
 whether the individual was the victim of financial exploitation, 
 whether the individual has made reasonable efforts to recover 
 the transferred property or resource, and other factors relevant 
 to a determination of hardship.  If the local agency does not 
 approve a hardship waiver, the local agency shall issue a 
 written notice to the individual stating the reasons for the 
 denial and the process for appealing the local agency's decision.

    (b) When a waiver is granted under paragraph (a), clause 
 (3), a cause of action exists against the person to whom the 
 homestead was transferred for that portion of long-term care 
 services granted within: 

    (1) 30 months of a transfer made on or before August 10, 
 1993; 

    (2) 60 months if the homestead was transferred after August 
 10, 1993, to a trust or portion of a trust that is considered a 
 transfer of assets under federal law; or 

    (3) 36 months if transferred in any other manner after 
 August 10, 1993, 

 or the amount of the uncompensated transfer, whichever is less, 
 together with the costs incurred due to the action.  The action 
 shall be brought by the state unless the state delegates this 
 responsibility to the local agency responsible for providing 
 medical assistance under chapter 256G. 

    Subd. 3a.    Homestead exception to transfer prohibition. 
  (a) This subdivision applies to transfers involving 
 recipients of medical assistance that are made on or after April 
 13, 1996, to the extent permitted by federal law, and to all 
 transfers involving persons who apply for medical assistance on 
 or after April 13, 1996, to the extent permitted by federal law, 
 regardless of when the transfer occurred, except that this 
 subdivision does not apply to transfers made prior to March 1, 
 1996.  A person is not ineligible for medical assistance 
 services due to a transfer of assets for less than fair market 
 value as described in subdivision 1a if the asset transferred 
 was a homestead and: 

    (1) title to the homestead was transferred to the 
 individual's relatives who are residing in the homestead and are 
 the individual's: 

    (i) spouse; 

    (ii) child who is under age 21; 

    (iii) blind or permanently and totally disabled child as 
 defined in the supplemental security income program; 

    (iv) sibling who has equity interest in the home and who 
 was residing in the home for a period of at least one year 
 immediately before the date of the individual's admission to the 
 facility; or 

    (v) son or daughter who was residing in the individual's 
 home for a period of at least two years immediately before the 
 date of the individual's admission to the facility, and who 
 provided care to the individual that, as certified by the 
 individual's attending physician, permitted the individual to 
 reside at home rather than in an institution or facility; 

    (2) a satisfactory showing is made that the individual 
 intended to dispose of the homestead at fair market value or for 
 other valuable consideration; or 

    (3) the local agency grants a waiver of a penalty resulting 
 from a transfer for less than fair market value because denial 
 of eligibility would cause undue hardship for the individual and 
 there exists an imminent threat to the individual's health and 
 well-being.  Whenever an applicant or recipient is denied 
 eligibility because of a transfer for less than fair market 
 value, the local agency shall notify the applicant or recipient 
 that the applicant or recipient may request a waiver of the 
 penalty if the denial of eligibility will cause undue hardship.  
 In evaluating a waiver, the local agency shall take into account 
 whether the individual was the victim of financial exploitation, 
 whether the individual has made reasonable efforts to recover 
 the transferred property or resource, and other factors relevant 
 to a determination of hardship.  If the local agency does not 
 approve a hardship waiver, the local agency shall issue a 
 written notice to the individual stating the reasons for the 
 denial and the process for appealing the local agency's decision.

    (b) When a waiver is granted under paragraph (a), clause 
 (3), a cause of action exists against the person to whom the 
 homestead was transferred for that portion of medical assistance 
 services granted within 72 months of the date the transferor 
 applied for medical assistance and satisfied all other 
 requirements for eligibility, or the amount of the uncompensated 
 transfer, whichever is less, together with the costs incurred 
 due to the action.  The action shall be brought by the state 
 unless the state delegates this responsibility to the local 
 agency responsible for providing medical assistance under 
 chapter 256G. 

    Subd. 4.    Other exceptions to transfer prohibition.  
 An institutionalized person who has made, or whose spouse has 
 made a transfer prohibited by subdivision 1, is not ineligible 
 for long-term care services if one of the following conditions 
 applies: 

    (1) the assets were transferred to the individual's spouse 
 or to another for the sole benefit of the spouse; or 

    (2) the institutionalized spouse, prior to being 
 institutionalized, transferred assets to a spouse, provided that 
 the spouse to whom the assets were transferred does not then 
 transfer those assets to another person for less than fair 
 market value.  (At the time when one spouse is 
 institutionalized, assets must be allocated between the spouses 
 as provided under section 256B.059); or 

    (3) the assets were transferred to the individual's child 
 who is blind or permanently and totally disabled as determined 
 in the supplemental security income program; or 

    (4) a satisfactory showing is made that the individual 
 intended to dispose of the assets either at fair market value or 
 for other valuable consideration; or 

    (5) the local agency determines that denial of eligibility 
 for long-term care services would work an undue hardship and 
 grants a waiver of a penalty resulting from a transfer for less 
 than fair market value based on an imminent threat to the 
 individual's health and well-being.  Whenever an applicant or 
 recipient is denied eligibility because of a transfer for less 
 than fair market value, the local agency shall notify the 
 applicant or recipient that the applicant or recipient may 
 request a waiver of the penalty if the denial of eligibility 
 will cause undue hardship.  In evaluating a waiver, the local 
 agency shall take into account whether the individual was the 
 victim of financial exploitation, whether the individual has 
 made reasonable efforts to recover the transferred property or 
 resource, and other factors relevant to a determination of 
 hardship.  If the local agency does not approve a hardship 
 waiver, the local agency shall issue a written notice to the 
 individual stating the reasons for the denial and the process 
 for appealing the local agency's decision.  When a waiver is 
 granted, a cause of action exists against the person to whom the 
 assets were transferred for that portion of long-term care 
 services granted within: 

    (i) 30 months of a transfer made on or before August 10, 
 1993; 

    (ii) 60 months of a transfer if the assets were transferred 
 after August 30, 1993, to a trust or portion of a trust that is 
 considered a transfer of assets under federal law; or 

    (iii) 36 months of a transfer if transferred in any other 
 manner after August 10, 1993, 

 or the amount of the uncompensated transfer, whichever is less, 
 together with the costs incurred due to the action.  The action 
 shall be brought by the state unless the state delegates this 
 responsibility to the local agency responsible for providing 
 medical assistance under this chapter; or 

    (6) for transfers occurring after August 10, 1993, the 
 assets were transferred by the person or person's spouse:  (i) 
 into a trust established solely for the benefit of a son or 
 daughter of any age who is blind or disabled as defined by the 
 Supplemental Security Income program; or (ii) into a trust 
 established solely for the benefit of an individual who is under 
 65 years of age who is disabled as defined by the Supplemental 
 Security Income program. 

    Subd. 4a.    Other exceptions to transfer prohibition.  
 This subdivision applies to transfers involving recipients of 
 medical assistance that are made on or after April 13, 1996, to 
 the extent permitted by federal law, and to all transfers 
 involving persons who apply for medical assistance on or after 
 April 13, 1996, to the extent permitted by federal law, 
 regardless of when the transfer occurred, except that this 
 subdivision does not apply to transfers made prior to March 1, 
 1996.  A person or a person's spouse who has made a transfer 
 prohibited by subdivision 1a is not ineligible for medical 
 assistance services if one of the following conditions applies: 

    (1) the assets or income were transferred to the 
 individual's spouse or to another for the sole benefit of the 
 spouse, except that after eligibility is established, transfers 
 to a spouse are permitted only to comply with the provisions of 
 section 256B.059; or 

    (2) the institutionalized spouse, prior to being 
 institutionalized, transferred assets or income to a spouse, 
 provided that the spouse to whom the assets or income were 
 transferred does not then transfer those assets or income to 
 another person for less than fair market value.  (At the time 
 when one spouse is institutionalized, assets must be allocated 
 between the spouses as provided under section 256B.059); or 

    (3) the assets or income were transferred to a trust for 
 the sole benefit of the individual's child who is blind or 
 permanently and totally disabled as determined in the 
 supplemental security income program and the trust reverts to 
 the state upon the disabled child's death to the extent medical 
 assistance has paid for services for the child.  This clause 
 applies to a trust established after the commissioner publishes 
 a notice in the State Register that the commissioner has been 
 authorized to implement this clause due to a change in federal 
 law or the approval of a federal waiver; or 

    (4) a satisfactory showing is made that the individual 
 intended to dispose of the assets or income either at fair 
 market value or for other valuable consideration; or 

    (5) the local agency determines that denial of eligibility 
 for medical assistance services would work an undue hardship and 
 grants a waiver of a penalty resulting from a transfer for less 
 than fair market value because there exists an imminent threat 
 to the individual's health and well-being.  Whenever an 
 applicant or recipient is denied eligibility because of a 
 transfer for less than fair market value, the local agency shall 
 notify the applicant or recipient that the applicant or 
 recipient may request a waiver of the penalty if the denial of 
 eligibility will cause undue hardship.  In evaluating a waiver, 
 the local agency shall take into account whether the individual 
 was the victim of financial exploitation, whether the individual 
 has made reasonable efforts to recover the transferred property 
 or resource, and other factors relevant to a determination of 
 hardship.  If the local agency does not approve a hardship 
 waiver, the local agency shall issue a written notice to the 
 individual stating the reasons for the denial and the process 
 for appealing the local agency's decision.  When a waiver is 
 granted, a cause of action exists against the person to whom the 
 assets were transferred for that portion of medical assistance 
 services granted within 72 months of the date the transferor 
 applied for medical assistance and satisfied all other 
 requirements for eligibility, 

 or the amount of the uncompensated transfer, whichever is less, 
 together with the costs incurred due to the action.  The action 
 shall be brought by the state unless the state delegates this 
 responsibility to the local agency responsible for providing 
 medical assistance under this chapter. 

    Subd. 5.    Notice of receipt of federal waiver.  In 
 every instance in which a federal waiver that allows the 
 implementation of a provision in this section is granted, the 
 commissioner shall publish notice of receipt of the waiver in 
 the State Register. 

    Subd. 6.    No bad effect on realty conveyance, 
 encumbrance.  This section does not invalidate or impair the 
 effectiveness of a conveyance or encumbrance of real estate. 

    Subd. 7.    Notice of rights.  If a period of 
 ineligibility is imposed under subdivision 2 or 2a, the local 
 agency shall inform the applicant or recipient subject to the 
 penalty of the person's rights under section 325F.71, 
 subdivision 2. 

    HIST: 1986 c 444; 1989 c 282 art 3 s 52; 1990 c 568 art 3 s 
 40-42; 1992 c 513 art 7 s 42; 1Sp1993 c 1 art 5 s 35; 1994 c 388 
 art 1 s 2; 1995 c 207 art 6 s 34-37; 1996 c 451 art 2 s 11-19 

*   NOTE:  The amendments to subdivisions 1, 2, 3, and 4, by 
*Laws 1995, chapter 207, article 6, sections 34 to 37, are 
*effective retroactive to August 11, 1993, except that portion 
*amending subdivision 2, paragraph (c), is effective retroactive 
*to transfers of income or assets made on or after September 1, 
*1994.  Laws 1995, chapter 207, article 6, section 125, 
*subdivision 2, and Laws 1995, chapter 263, section 6. 

*   NOTE:  (a) Subdivisions 1a, 2a, 3a, and 4a, as added by 
*Laws 1996, chapter 451, article 2, sections 12, 14, 16, and 18, 
*respectively, are effective the day following final enactment to 
*the extent permitted by federal law.  If any provisions of these 
*sections are prohibited by federal law, the provisions shall 
*become effective when federal law is changed to permit their 
*application or a waiver is received.  The commissioner of human 
*services shall notify the revisor of statutes when federal law 
*is enacted or a waiver is received and publish a notice in the 
*State Register.  The commissioner must include the notice in the 
*first State Register published after the effective date of the 
*federal changes.  

*   (b) If, by July 1, 1996, any provisions of the sections 
*mentioned in paragraph (a) are not effective because of 
*prohibitions in federal law, the commissioner shall apply to the 
*federal government for a waiver of those prohibitions, and those 
*provisions shall become effective upon receipt of a federal 
*waiver, notification to the revisor of statutes, and publication 
*of a notice in the State Register to that effect.  If the 
*commissioner applies for a waiver of the lookback period, the 
*commissioner shall seek the longest lookback period the health 
*care financing administration will approve, not to exceed 72 
*months.  Laws 1996, chapter 451, article 2, section 62.