1.1                          A bill for an act
  1.2             relating to human services; changing the effective 
  1.3             date for provisions allowing the continuation of a 
  1.4             recipient's life estate or joint tenancy interests for 
  1.5             purposes of medical assistance recoveries; requiring 
  1.6             the commissioner of human services to refund money 
  1.7             recovered; amending Minnesota Statutes 2003 
  1.8             Supplement, sections 256B.15, subdivision 1; 514.981, 
  1.9             subdivision 6. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.12  256B.15, subdivision 1, is amended to read: 
  1.13     Subdivision 1.  [POLICY, APPLICABILITY, PURPOSE, AND 
  1.14  CONSTRUCTION; DEFINITION.] (a) It is the policy of this state 
  1.15  that individuals or couples, either or both of whom participate 
  1.16  in the medical assistance program, use their own assets to pay 
  1.17  their share of the total cost of their care during or after 
  1.18  their enrollment in the program according to applicable federal 
  1.19  law and the laws of this state.  The following provisions apply: 
  1.20     (1) subdivisions 1c to 1k shall not apply to claims arising 
  1.21  under this section which are presented under section 525.313; 
  1.22     (2) the provisions of subdivisions 1c to 1k expanding the 
  1.23  interests included in an estate for purposes of recovery under 
  1.24  this section give effect to the provisions of United States 
  1.25  Code, title 42, section 1396p, governing recoveries, but do not 
  1.26  give rise to any express or implied liens in favor of any other 
  1.27  parties not named in these provisions; 
  2.1      (3) the continuation of a recipient's life estate or joint 
  2.2   tenancy interest in real property after the recipient's death 
  2.3   for the purpose of recovering medical assistance under this 
  2.4   section modifies common law principles holding that these 
  2.5   interests terminate on the death of the holder; 
  2.6      (4) all laws, rules, and regulations governing or involved 
  2.7   with a recovery of medical assistance shall be liberally 
  2.8   construed to accomplish their intended purposes; 
  2.9      (5) a deceased recipient's life estate and joint tenancy 
  2.10  interests continued under this section shall be owned by the 
  2.11  remaindermen or surviving joint tenants as their interests may 
  2.12  appear on the date of the recipient's death.  They shall not be 
  2.13  merged into the remainder interest or the interests of the 
  2.14  surviving joint tenants by reason of ownership.  They shall be 
  2.15  subject to the provisions of this section.  Any conveyance, 
  2.16  transfer, sale, assignment, or encumbrance by a remainderman, a 
  2.17  surviving joint tenant, or their heirs, successors, and assigns 
  2.18  shall be deemed to include all of their interest in the deceased 
  2.19  recipient's life estate or joint tenancy interest continued 
  2.20  under this section; and 
  2.21     (6) the provisions of subdivisions 1c to 1k continuing a 
  2.22  recipient's joint tenancy interests in real property after the 
  2.23  recipient's death do not apply to a homestead owned of record, 
  2.24  on the date the recipient dies, by the recipient and the 
  2.25  recipient's spouse as joint tenants with a right of 
  2.26  survivorship.  Homestead means the real property occupied by the 
  2.27  surviving joint tenant spouse as their sole residence on the 
  2.28  date the recipient dies and classified and taxed to the 
  2.29  recipient and surviving joint tenant spouse as homestead 
  2.30  property for property tax purposes in the calendar year in which 
  2.31  the recipient dies.  For purposes of this exemption, real 
  2.32  property the recipient and their surviving joint tenant spouse 
  2.33  purchase solely with the proceeds from the sale of their prior 
  2.34  homestead, own of record as joint tenants, and qualify as 
  2.35  homestead property under section 273.124 in the calendar year in 
  2.36  which the recipient dies and prior to the recipient's death 
  3.1   shall be deemed to be real property classified and taxed to the 
  3.2   recipient and their surviving joint tenant spouse as homestead 
  3.3   property in the calendar year in which the recipient dies.  The 
  3.4   surviving spouse, or any person with personal knowledge of the 
  3.5   facts, may provide an affidavit describing the homestead 
  3.6   property affected by this clause and stating facts showing 
  3.7   compliance with this clause.  The affidavit shall be prima facie 
  3.8   evidence of the facts it states. 
  3.9      (b) For purposes of this section, "medical assistance" 
  3.10  includes the medical assistance program under this chapter and 
  3.11  the general assistance medical care program under chapter 256D 
  3.12  and alternative care for nonmedical assistance recipients under 
  3.13  section 256B.0913. 
  3.14     (c) All provisions in this subdivision, and subdivisions 
  3.15  1d, 1f, 1g, 1h, 1i, and 1j, related to the continuation of a 
  3.16  recipient's life estate or joint tenancy interests in real 
  3.17  property after the recipient's death for the purpose of 
  3.18  recovering medical assistance, are effective only for life 
  3.19  estates and joint tenancy interests established on or after 
  3.20  August 1, 2003. 
  3.21     <b>[EFFECTIVE DATE.]</b> This section is effective retroactive to 
  3.22  August 1, 2003. 
  3.23     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  3.24  514.981, subdivision 6, is amended to read: 
  3.25     Subd. 6.  [TIME LIMITS; CLAIM LIMITS; LIENS ON LIFE ESTATES 
  3.26  AND JOINT TENANCIES.] (a) A medical assistance lien is a lien on 
  3.27  the real property it describes for a period of ten years from 
  3.28  the date it attaches according to section 514.981, subdivision 
  3.29  2, paragraph (a), except as otherwise provided for in sections 
  3.30  514.980 to 514.985.  The agency may renew a medical assistance 
  3.31  lien for an additional ten years from the date it would 
  3.32  otherwise expire by recording or filing a certificate of renewal 
  3.33  before the lien expires.  The certificate shall be recorded or 
  3.34  filed in the office of the county recorder or registrar of 
  3.35  titles for the county in which the lien is recorded or filed.  
  3.36  The certificate must refer to the recording or filing data for 
  4.1   the medical assistance lien it renews.  The certificate need not 
  4.2   be attested, certified, or acknowledged as a condition for 
  4.3   recording or filing.  The registrar of titles or the recorder 
  4.4   shall file, record, index, and return the certificate of renewal 
  4.5   in the same manner as provided for medical assistance liens in 
  4.6   section 514.982, subdivision 2. 
  4.7      (b) A medical assistance lien is not enforceable against 
  4.8   the real property of an estate to the extent there is a 
  4.9   determination by a court of competent jurisdiction, or by an 
  4.10  officer of the court designated for that purpose, that there are 
  4.11  insufficient assets in the estate to satisfy the agency's 
  4.12  medical assistance lien in whole or in part because of the 
  4.13  homestead exemption under section 256B.15, subdivision 4, the 
  4.14  rights of the surviving spouse or minor children under section 
  4.15  524.2-403, paragraphs (a) and (b), or claims with a priority 
  4.16  under section 524.3-805, paragraph (a), clauses (1) to (4).  For 
  4.17  purposes of this section, the rights of the decedent's adult 
  4.18  children to exempt property under section 524.2-403, paragraph 
  4.19  (b), shall not be considered costs of administration under 
  4.20  section 524.3-805, paragraph (a), clause (1). 
  4.21     (c) Notwithstanding any law or rule to the contrary, the 
  4.22  provisions in clauses (1) to (7) apply if a life estate subject 
  4.23  to a medical assistance lien ends according to its terms, or if 
  4.24  a medical assistance recipient who owns a life estate or any 
  4.25  interest in real property as a joint tenant that is subject to a 
  4.26  medical assistance lien dies. 
  4.27     (1) The medical assistance recipient's life estate or joint 
  4.28  tenancy interest in the real property shall not end upon the 
  4.29  recipient's death but shall merge into the remainder interest or 
  4.30  other interest in real property the medical assistance recipient 
  4.31  owned in joint tenancy with others.  The medical assistance lien 
  4.32  shall attach to and run with the remainder or other interest in 
  4.33  the real property to the extent of the medical assistance 
  4.34  recipient's interest in the property at the time of the 
  4.35  recipient's death as determined under this section. 
  4.36     (2) If the medical assistance recipient's interest was a 
  5.1   life estate in real property, the lien shall be a lien against 
  5.2   the portion of the remainder equal to the percentage factor for 
  5.3   the life estate of a person the medical assistance recipient's 
  5.4   age on the date the life estate ended according to its terms or 
  5.5   the date of the medical assistance recipient's death as listed 
  5.6   in the Life Estate Mortality Table in the health care program's 
  5.7   manual. 
  5.8      (3) If the medical assistance recipient owned the interest 
  5.9   in real property in joint tenancy with others, the lien shall be 
  5.10  a lien against the portion of that interest equal to the 
  5.11  fractional interest the medical assistance recipient would have 
  5.12  owned in the jointly owned interest had the medical assistance 
  5.13  recipient and the other owners held title to that interest as 
  5.14  tenants in common on the date the medical assistance recipient 
  5.15  died. 
  5.16     (4) The medical assistance lien shall remain a lien against 
  5.17  the remainder or other jointly owned interest for the length of 
  5.18  time and be renewable as provided in paragraph (a). 
  5.19     (5) Subdivision 5, paragraph (a), clause (4), paragraph 
  5.20  (b), clauses (1) and (2); and subdivision 6, paragraph (b), do 
  5.21  not apply to medical assistance liens which attach to interests 
  5.22  in real property as provided under this subdivision. 
  5.23     (6) The continuation of a medical assistance recipient's 
  5.24  life estate or joint tenancy interest in real property after the 
  5.25  medical assistance recipient's death for the purpose of 
  5.26  recovering medical assistance provided for in sections 514.980 
  5.27  to 514.985 modifies common law principles holding that these 
  5.28  interests terminate on the death of the holder. 
  5.29     (7) Notwithstanding any law or rule to the contrary, no 
  5.30  release, satisfaction, discharge, or affidavit under section 
  5.31  256B.15 shall extinguish or terminate the life estate or joint 
  5.32  tenancy interest of a medical assistance recipient subject to a 
  5.33  lien under sections 514.980 to 514.985 on the date the recipient 
  5.34  dies. 
  5.35     (8) The provisions of clauses (1) to (7) do not apply to a 
  5.36  homestead owned of record, on the date the recipient dies, by 
  6.1   the recipient and the recipient's spouse as joint tenants with a 
  6.2   right of survivorship.  Homestead means the real property 
  6.3   occupied by the surviving joint tenant spouse as their sole 
  6.4   residence on the date the recipient dies and classified and 
  6.5   taxed to the recipient and surviving joint tenant spouse as 
  6.6   homestead property for property tax purposes in the calendar 
  6.7   year in which the recipient dies.  For purposes of this 
  6.8   exemption, real property the recipient and their surviving joint 
  6.9   tenant spouse purchase solely with the proceeds from the sale of 
  6.10  their prior homestead, own of record as joint tenants, and 
  6.11  qualify as homestead property under section 273.124 in the 
  6.12  calendar year in which the recipient dies and prior to the 
  6.13  recipient's death shall be deemed to be real property classified 
  6.14  and taxed to the recipient and their surviving joint tenant 
  6.15  spouse as homestead property in the calendar year in which the 
  6.16  recipient dies.  The surviving spouse, or any person with 
  6.17  personal knowledge of the facts, may provide an affidavit 
  6.18  describing the homestead property affected by this clause and 
  6.19  stating facts showing compliance with this clause.  The 
  6.20  affidavit shall be prima facie evidence of the facts it states.  
  6.21  All provisions in this paragraph related to the continuation of 
  6.22  a recipient's life estate or joint tenancy interests in real 
  6.23  property after the recipient's death, for the purpose of 
  6.24  recovering medical assistance, are effective only for life 
  6.25  estates and joint tenancy interests established on or after 
  6.26  August 1, 2003. 
  6.27     <b>[EFFECTIVE DATE.]</b> This section is effective retroactive to 
  6.28  August 1, 2003. 
  6.29     Sec. 3.  [GENERAL PROVISIONS GOVERNING THE CHANGE IN 
  6.30  EFFECTIVE DATE FOR LIFE ESTATE AND JOINT TENANCY INTEREST 
  6.31  PROVISIONS.] 
  6.32     Subdivision 1.  [ESTABLISHMENT OF A LIFE ESTATE OR JOINT 
  6.33  TENANCY INTEREST.] For purposes of sections 1 and 2, a life 
  6.34  estate or joint tenancy interest is established upon the earlier 
  6.35  of:  (1) the date the instrument creating the interest is 
  6.36  recorded or filed in the office of the county recorder or 
  7.1   registrar of titles where the real estate interest it describes 
  7.2   is located; (2) the date of delivery by the grantor to the 
  7.3   grantee of the signed instrument as stated in an affidavit of 
  7.4   transfer; (3) the date on which the judicial order creating the 
  7.5   interest was issued by the court; or (4) the date upon which the 
  7.6   interest devolves under section 524.3-101. 
  7.7      Subd. 2.  [MEDICAL ASSISTANCE.] For purposes of sections 1 
  7.8   and 2, the term medical assistance means medical assistance as 
  7.9   defined in Laws 2003, First Special Session chapter 14, article 
  7.10  2, section 27.  
  7.11     Subd. 3.  [LIEN NOTICES.] Lien notices of record against 
  7.12  life estate or joint tenancy interests in existence prior to 
  7.13  August 1, 2003, have no effect beyond the death of the life 
  7.14  tenant or joint tenant and shall be disregarded by examiners of 
  7.15  title after the death of the life tenant or joint tenant. 
  7.16     <b>[EFFECTIVE DATE.]</b> This section is effective retroactive to 
  7.17  August 1, 2003. 
  7.18     Sec. 4.  [COMMISSIONER'S DUTIES RELATED TO THE CHANGE IN 
  7.19  EFFECTIVE DATE FOR LIFE ESTATE AND JOINT TENANCY INTEREST 
  7.20  PROVISIONS.] 
  7.21     The commissioner of human services and any county agency 
  7.22  which has collected any sum attributable to a life estate or 
  7.23  joint tenancy interest in real estate which was continued under 
  7.24  Laws 2003, First Special Session chapter 14, article 12, 
  7.25  sections 47 to 51 and 90, as those sections existed prior to the 
  7.26  amendments in this act, shall promptly refund the amount 
  7.27  collected to the person or persons who paid the amount 
  7.28  collected, in proportion to each person's contribution to the 
  7.29  amount. 
  7.30     <b>[EFFECTIVE DATE.]</b> This section is effective retroactive to 
  7.31  August 1, 2003. 
  7.32     Sec. 5.  [IMMUNITY.] 
  7.33     The commissioner of human services, county agencies, and 
  7.34  elected officials and their employees are immune from all 
  7.35  liability for actions taken pursuant to Laws 2003, First Special 
  7.36  Session chapter 14, article 12, sections 40 to 52 and 90, as 
  8.1   those laws existed at the time the action was taken, and 
  8.2   sections 1 to 4 of this act. 
  8.3      <b>[EFFECTIVE DATE.]</b> This section is effective retroactive to 
  8.4   August 1, 2003.