1.1                          A bill for an act 
  1.2             relating to medical assistance; limiting the burial 
  1.3             expense exclusion to $5,000; prohibiting certain asset 
  1.4             transfers within 60 months of application for 
  1.5             assistance; establishing a penalty period that begins 
  1.6             with the month of application; requiring approval of 
  1.7             the commissioner of human services for certain 
  1.8             hardship waivers; prohibiting certain asset transfers 
  1.9             prior to 60 months before application; amending 
  1.10            Minnesota Statutes 1994, sections 149.11; 256B.056, 
  1.11            subdivision 3; 256B.0595, by adding subdivisions; 
  1.12            524.2-403; and 524.3-801; Minnesota Statutes 1995 
  1.13            Supplement, section 256B.0595, subdivisions 3 and 4; 
  1.14            repealing Minnesota Statutes 1995 Supplement, section 
  1.15            256B.15, subdivision 5. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1994, section 149.11, is 
  1.18  amended to read: 
  1.19     149.11 [PREARRANGED FUNERAL PLANS; CONTRACTS; TRUST FUNDS.] 
  1.20     (a) When prior to the death of any person, that person or 
  1.21  another enters into any transaction, makes a contract, or any 
  1.22  series or combination of transactions or contracts with another 
  1.23  person, partnership, association, or corporation, other than an 
  1.24  insurance company licensed to do business in the state of 
  1.25  Minnesota, by the terms of which, certain personal property 
  1.26  related to the funeral services or the burial, cremation, or 
  1.27  other disposition of human remains will be used upon the death 
  1.28  of the person for whom the property is to be used, or when the 
  1.29  professional services of a funeral director or embalmer will 
  1.30  then be furnished, or both, then the total of all money paid by 
  2.1   the terms of the transaction, contract, or series or combination 
  2.2   of transactions or contracts shall be held in trust for the 
  2.3   purpose for which it has been paid until the death of the person 
  2.4   for whose benefit the money was paid, or refunded to the person 
  2.5   who made the payment or payments, upon demand.  A prearranged 
  2.6   funeral or burial contract buyer may, at the buyer's option, 
  2.7   declare the funeral or burial trust to be irrevocable up to an 
  2.8   amount equivalent to the current allowable supplemental security 
  2.9   income asset exclusion used for determining eligibility for 
  2.10  public assistance the amount permitted under section 256B.056, 
  2.11  subdivision 3, paragraph (d).  The contract buyer may, at the 
  2.12  buyer's option, also declare the interest to be irrevocable to 
  2.13  the extent permitted by federal laws and rules governing public 
  2.14  assistance.  The buyer of either a revocable or an irrevocable 
  2.15  prearranged funeral or burial contract retains the right to 
  2.16  designate as trustee a different funeral establishment at any 
  2.17  time before the death of the person for whose benefit the money 
  2.18  was paid.  Upon the death of that person, the next of kin or 
  2.19  other legal representative of that person's estate retains the 
  2.20  right to designate as trustee a different funeral 
  2.21  establishment.  Accruals of interest or dividends declared upon 
  2.22  the sum of money held in trust are subject to the same trust.  
  2.23  The person, partnership, association, or corporation holding the 
  2.24  money in trust shall inform the person on whose behalf the money 
  2.25  is held that all money paid plus all accrued earnings will be 
  2.26  held in trust until the death of that person or until a request 
  2.27  for a refund is made if made prior to death, except for a 
  2.28  prearranged funeral or burial trust declared irrevocable by the 
  2.29  buyer under this section.  The location of the trust account 
  2.30  including the name and address of the institution in which the 
  2.31  money is being held and any identifying account numbers, and any 
  2.32  subsequent changes in that information must be disclosed in 
  2.33  writing to the person on whose behalf the money is being held, 
  2.34  at the time the funds are deposited into the trust account and 
  2.35  at the time of any subsequent changes in the information.  The 
  2.36  personal property shall include but not be limited to a casket, 
  3.1   burial vault not interred in a grave, combination casket-vault, 
  3.2   or other receptacle not described in paragraph (b) for the 
  3.3   interment, entombment, cremation, or other disposition of human 
  3.4   remains.  
  3.5      (b) Nothing in this section shall prevent the sale and 
  3.6   delivery of cemetery lots, graves, burial vaults preinterred in 
  3.7   a grave, cremation urns, crypt spaces, niches, or grave or lot 
  3.8   markers or monuments before their use is required.  Nothing in 
  3.9   this section prevents the preconstruction sale of crypt spaces 
  3.10  to be permanently installed except that any seller of mausoleum 
  3.11  space or columbarium space, selling burial space in a mausoleum 
  3.12  or columbarium that is not completely constructed and usable, 
  3.13  must comply with section 306.90.  
  3.14     (c) It is the intent of the legislature that the provisions 
  3.15  of this section shall be construed as a limitation upon the 
  3.16  manner in which a person or legal entity is permitted to accept 
  3.17  funds in prepayment of funeral services to be performed in the 
  3.18  future or in prepayment of funeral or burial goods to be used in 
  3.19  connection with the funeral or final disposition of human 
  3.20  remains.  It is further intended to allow members of the public 
  3.21  to arrange and pay for funerals, final dispositions, funeral 
  3.22  services, and funeral and burial goods for themselves and their 
  3.23  families in advance of need while at the same time providing all 
  3.24  possible safeguards so that the prepaid funds cannot be 
  3.25  dissipated, whether intentionally or not, so as to be available 
  3.26  for the payment of the services and goods selected. 
  3.27     Sec. 2.  Minnesota Statutes 1994, section 256B.056, 
  3.28  subdivision 3, is amended to read: 
  3.29     Subd. 3.  [ASSET LIMITATIONS.] To be eligible for medical 
  3.30  assistance, a person must not individually own more than $3,000 
  3.31  in assets, or if a member of a household with two family members 
  3.32  (husband and wife, or parent and child), the household must not 
  3.33  own more than $6,000 in assets, plus $200 for each additional 
  3.34  legal dependent.  In addition to these maximum amounts, an 
  3.35  eligible individual or family may accrue interest on these 
  3.36  amounts, but they must be reduced to the maximum at the time of 
  4.1   an eligibility redetermination.  The accumulation of the 
  4.2   clothing and personal needs allowance pursuant to section 
  4.3   256B.35 must also be reduced to the maximum at the time of the 
  4.4   eligibility redetermination.  The value of assets that are not 
  4.5   considered in determining eligibility for medical assistance is 
  4.6   the value of those assets that are excluded by the aid to 
  4.7   families with dependent children program for families and 
  4.8   children, and the supplemental security income program for aged, 
  4.9   blind, and disabled persons, with the following exceptions: 
  4.10     (a) Household goods and personal effects are not considered.
  4.11     (b) Capital and operating assets of a trade or business 
  4.12  that the local agency determines are necessary to the person's 
  4.13  ability to earn an income are not considered. 
  4.14     (c) Motor vehicles are excluded to the same extent excluded 
  4.15  by the supplemental security income program. 
  4.16     (d) Assets designated as burial expenses are excluded to 
  4.17  the same extent excluded by the supplemental security income 
  4.18  program up to a maximum total amount of $5,000, provided that 
  4.19  the assets must be placed in a prepaid burial account or in an 
  4.20  irrevocable burial trust in order to qualify for this exemption. 
  4.21     Sec. 3.  Minnesota Statutes 1994, section 256B.0595, is 
  4.22  amended by adding a subdivision to read: 
  4.23     Subd. 1a.  [PROHIBITED TRANSFERS.] (a) Notwithstanding any 
  4.24  contrary provisions of this section, effective for applications 
  4.25  made on or after the effective date of this subdivision, a 
  4.26  person, a person's spouse, or any person, court, or 
  4.27  administrative body with legal authority to act in place of, on 
  4.28  behalf of, at the direction of, or upon the request of the 
  4.29  person or the person's spouse, may not give away, sell, or 
  4.30  dispose of any asset or interest in that asset for less than 
  4.31  fair market value for the purpose of establishing or maintaining 
  4.32  medical assistance eligibility.  For purposes of determining 
  4.33  eligibility for medical assistance services, any transfer of 
  4.34  such assets for less than fair market value within 60 months 
  4.35  before or any time after a person applies for medical assistance 
  4.36  may be considered.  Any such transfer is presumed to have been 
  5.1   made for the purpose of establishing or maintaining medical 
  5.2   assistance eligibility, and the person is ineligible for medical 
  5.3   assistance services for the period of time determined under 
  5.4   subdivision 2a, unless the transfer is permitted under 
  5.5   subdivision 3 or 4. 
  5.6      (b) This section applies to transfers of income or assets 
  5.7   for less than fair market value, including assets that are 
  5.8   considered income in the month received, such as inheritances, 
  5.9   court settlements, and retroactive benefit payments or income to 
  5.10  which the person or the person's spouse is entitled but does not 
  5.11  receive due to action by the person, the person's spouse, or any 
  5.12  person, court, or administrative body with legal authority to 
  5.13  act in place of, on behalf of, at the direction of, or upon the 
  5.14  request of the person or the person's spouse.  
  5.15     (c) This section applies to payments for care or personal 
  5.16  services provided by a relative, unless the compensation was 
  5.17  stipulated in a notarized, written agreement which was in 
  5.18  existence when the service was performed, the care or services 
  5.19  directly benefited the person, and the payments made represented 
  5.20  reasonable compensation for the care or services provided.  A 
  5.21  notarized written agreement is not required if payment for the 
  5.22  services was made within 60 days after the service was provided. 
  5.23     (d) This section applies to the portion of any asset or 
  5.24  interest that a person, a person's spouse, or any person, court, 
  5.25  or administrative body with legal authority to act in place of, 
  5.26  on behalf of, at the direction of, or upon the request of the 
  5.27  person or the person's spouse, to any trust, annuity, or other 
  5.28  instrument, that exceeds the value of the benefit likely to be 
  5.29  returned to the person or spouse while alive, based on estimated 
  5.30  life expectancy using the life expectancy tables employed by the 
  5.31  supplemental security income program to determine the value of 
  5.32  an agreement for services for life.  The commissioner may adopt 
  5.33  rules reducing life expectancies based on the need for long-term 
  5.34  care. 
  5.35     Sec. 4.  Minnesota Statutes 1994, section 256B.0595, is 
  5.36  amended by adding a subdivision to read: 
  6.1      Subd. 2a.  [PERIOD OF INELIGIBILITY.] (a) Notwithstanding 
  6.2   any contrary provisions of this section, effective for 
  6.3   applications made on or after the effective date of this 
  6.4   subdivision, for any uncompensated transfer occurring within 60 
  6.5   months prior to the date of application, the number of months of 
  6.6   ineligibility for medical assistance services shall be the total 
  6.7   uncompensated value of the resources transferred divided by the 
  6.8   average medical assistance rate for nursing facility services in 
  6.9   the state in effect on the date of application.  The amount used 
  6.10  to calculate the average medical assistance payment rate shall 
  6.11  be adjusted each July 1 to reflect payment rates for the 
  6.12  previous calendar year.  The period of ineligibility begins with 
  6.13  the month in which the person applied for medical assistance and 
  6.14  satisfied all other requirements for eligibility.  If the 
  6.15  transfer was not reported to the local agency at the time of 
  6.16  application, and the applicant received medical assistance 
  6.17  services during what would have been the period of ineligibility 
  6.18  if the transfer had been reported, a cause of action exists 
  6.19  against the transferee for the cost of medical assistance 
  6.20  services provided during the period of ineligibility, or for the 
  6.21  uncompensated amount of the transfer, whichever is less.  The 
  6.22  action may be brought by the state or the local agency 
  6.23  responsible for providing medical assistance under chapter 
  6.24  256G.  The total uncompensated value is the fair market value of 
  6.25  the asset at the time it was given away, sold, or disposed of, 
  6.26  less the amount of compensation received.  
  6.27     (b) If a calculation of a penalty period results in a 
  6.28  partial month, payments for medical assistance services shall be 
  6.29  reduced in an amount equal to the fraction, except that in 
  6.30  calculating the value of uncompensated transfers, if the total 
  6.31  value of all uncompensated transfers made in a month does not 
  6.32  exceed $500, then such transfers shall be disregarded for each 
  6.33  month prior to the month of application for or during receipt of 
  6.34  medical assistance. 
  6.35     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
  6.36  256B.0595, subdivision 3, is amended to read: 
  7.1      Subd. 3.  [HOMESTEAD EXCEPTION TO TRANSFER PROHIBITION.] 
  7.2   (a) An institutionalized A person is not ineligible for 
  7.3   long-term care medical assistance services due to a transfer of 
  7.4   assets for less than fair market value if the asset transferred 
  7.5   was a homestead and: 
  7.6      (1) title to the homestead was transferred to the 
  7.7   individual's 
  7.8      (i) spouse; 
  7.9      (ii) child who is under age 21; 
  7.10     (iii) blind or permanently and totally disabled child as 
  7.11  defined in the supplemental security income program; 
  7.12     (iv) sibling who has equity interest in the home and who 
  7.13  was residing in the home for a period of at least one year 
  7.14  immediately before the date of the individual's admission to the 
  7.15  facility; or 
  7.16     (v) son or daughter who was residing in the individual's 
  7.17  home for a period of at least two years immediately before the 
  7.18  date of the individual's admission to the facility, and who 
  7.19  provided care to the individual that permitted the individual to 
  7.20  reside at home rather than in an institution or facility; 
  7.21     (2) a satisfactory showing is made that the individual 
  7.22  intended to dispose of the homestead at fair market value or for 
  7.23  other valuable consideration; or 
  7.24     (3) the commissioner, following a recommendation from the 
  7.25  local agency, grants a waiver of the excess resources created by 
  7.26  the uncompensated transfer because denial of eligibility would 
  7.27  cause undue hardship for the individual, based on imminent 
  7.28  threat to the individual's health and well-being.  
  7.29     (b) When a waiver is granted under paragraph (a), clause 
  7.30  (3), a cause of action exists against the person to whom the 
  7.31  homestead was transferred for that portion of long-term care 
  7.32  medical assistance services granted within: 
  7.33     (1) 30 months of a transfer made on or before August 10, 
  7.34  1993; 
  7.35     (2) 60 months if the homestead was transferred after August 
  7.36  10, 1993, to a trust or portion of a trust that is considered a 
  8.1   transfer of assets under federal law; or 
  8.2      (3) 36 months if transferred in any other manner after 
  8.3   August 10, 1993,; or 
  8.4      (4) 60 months of the date the recipient applied for medical 
  8.5   assistance and satisfied all other requirements for eligibility, 
  8.6   if the application was made on or after the effective date of 
  8.7   this item, 
  8.8   or the amount of the uncompensated transfer, whichever is less, 
  8.9   together with the costs incurred due to the action.  The action 
  8.10  may be brought by the state or the local agency responsible for 
  8.11  providing medical assistance under chapter 256G. 
  8.12     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
  8.13  256B.0595, subdivision 4, is amended to read: 
  8.14     Subd. 4.  [OTHER EXCEPTIONS TO TRANSFER PROHIBITION.] An 
  8.15  institutionalized A person or a person's spouse who has made, or 
  8.16  whose spouse has made a transfer prohibited by subdivision 1, is 
  8.17  not ineligible for long-term care medical assistance services if 
  8.18  one of the following conditions applies: 
  8.19     (1) the assets were transferred to the individual's spouse 
  8.20  or to another for the sole benefit of the spouse; or 
  8.21     (2) the institutionalized spouse, prior to being 
  8.22  institutionalized, transferred assets to a spouse, provided that 
  8.23  the spouse to whom the assets were transferred does not then 
  8.24  transfer those assets to another person for less than fair 
  8.25  market value.  (At the time when one spouse is 
  8.26  institutionalized, assets must be allocated between the spouses 
  8.27  as provided under section 256B.059); or 
  8.28     (3) the assets were transferred to the individual's child 
  8.29  who is blind or permanently and totally disabled as determined 
  8.30  in the supplemental security income program; or 
  8.31     (4) a satisfactory showing is made that the individual 
  8.32  intended to dispose of the assets either at fair market value or 
  8.33  for other valuable consideration; or 
  8.34     (5) the commissioner determines, following a recommendation 
  8.35  from the local agency determines, that denial of eligibility for 
  8.36  long-term care medical assistance services would work an undue 
  9.1   hardship and grants a waiver of excess assets.  When a waiver is 
  9.2   granted, a cause of action exists against the person to whom the 
  9.3   assets were transferred for that portion of long-term care 
  9.4   medical assistance services granted within: 
  9.5      (i) 30 months of a transfer made on or before August 10, 
  9.6   1993; 
  9.7      (ii) 60 months of a transfer if the assets were transferred 
  9.8   after August 30, 1993, to a trust or portion of a trust that is 
  9.9   considered a transfer of assets under federal law; or 
  9.10     (iii) 36 months of a transfer if transferred in any other 
  9.11  manner after August 10, 1993,; or 
  9.12     (iv) 60 months of the date the recipient applied for 
  9.13  medical assistance and satisfied all other requirements for 
  9.14  eligibility, if the application was made on or after the 
  9.15  effective date of this subdivision, 
  9.16  or the amount of the uncompensated transfer, whichever is less, 
  9.17  together with the costs incurred due to the action.  The action 
  9.18  may be brought by the state or the local agency responsible for 
  9.19  providing medical assistance under this chapter; or 
  9.20     (6) for transfers occurring after August 10, 1993, the 
  9.21  assets were transferred by the person or person's spouse:  (i) 
  9.22  into a trust established solely for the benefit of a son or 
  9.23  daughter of any age who is blind or disabled as defined by the 
  9.24  Supplemental Security Income program; or (ii) into a trust 
  9.25  established solely for the benefit of an individual who is under 
  9.26  65 years of age who is disabled as defined by the Supplemental 
  9.27  Security Income program. 
  9.28     Sec. 7.  Minnesota Statutes 1994, section 256B.0595, is 
  9.29  amended by adding a subdivision to read:  
  9.30     Subd. 7.  [CAUSE OF ACTION.] There is a rebuttable 
  9.31  presumption that a transferee acted with the intent and purpose 
  9.32  of assisting a transferor to qualify for medical assistance 
  9.33  services if the person who receives medical assistance services 
  9.34  has transferred any property or resources for less than fair 
  9.35  market value and the transfer was made prior to the 60-month 
  9.36  period under subdivision 1a.  The presumption is not rebuttable 
 10.1   when the transferor is a resident of a long-term care facility 
 10.2   or is receiving that level of care in the community at the time 
 10.3   of the transfer.  A cause of action exists against the 
 10.4   transferee for the cost of medical assistance services provided 
 10.5   to the transferor, or for the uncompensated amount of the 
 10.6   transfer, whichever is less.  The action may be brought by the 
 10.7   state or the local agency responsible for providing medical 
 10.8   assistance under chapter 256G.  There shall be no recovery for 
 10.9   medical assistance payment of medical assistance services as a 
 10.10  result of the transfer of any property or resource that is an 
 10.11  exception to the transfer prohibition listed in subdivisions 3 
 10.12  and 4, or if the transferee is without financial means. 
 10.13     Sec. 8.  Minnesota Statutes 1994, section 524.2-403, is 
 10.14  amended to read: 
 10.15     524.2-403 [EXEMPT PROPERTY.] 
 10.16     (a) If there is a surviving spouse, then, in addition to 
 10.17  the homestead and family allowance, the surviving spouse is 
 10.18  entitled from the estate to: 
 10.19     (1) property not exceeding $10,000 in value in excess of 
 10.20  any security interests therein, in household furniture, 
 10.21  furnishings, appliances, and personal effects, subject to an 
 10.22  award of sentimental value property under section 525.152; and 
 10.23     (2) one automobile, if any, without regard to value. 
 10.24     (b) If there is no surviving spouse, the decedent's 
 10.25  children are entitled jointly to the same property as provided 
 10.26  in paragraph (a). 
 10.27     (c) If encumbered chattels are selected and the value in 
 10.28  excess of security interests, plus that of other exempt 
 10.29  property, is less than $10,000, or if there is not $10,000 worth 
 10.30  of exempt property in the estate, the surviving spouse or 
 10.31  children are entitled to other personal property of the estate, 
 10.32  if any, to the extent necessary to make up the $10,000 value. 
 10.33     (d) Rights to exempt property and assets needed to make up 
 10.34  a deficiency of exempt property have priority over all claims 
 10.35  against the estate, but the right to any assets to make up a 
 10.36  deficiency of exempt property abates as necessary to permit 
 11.1   earlier payment of the family allowance. 
 11.2      (e) The rights granted by this section are in addition to 
 11.3   any benefit or share passing to the surviving spouse or children 
 11.4   by the decedent's will, unless otherwise provided by intestate 
 11.5   succession or by way of elective share.  
 11.6      (f) A claim under section 256B.15 takes precedence over any 
 11.7   rights granted to a decedent's adult children under this section.
 11.8      Sec. 9.  Minnesota Statutes 1994, section 524.3-801, is 
 11.9   amended to read: 
 11.10     524.3-801 [NOTICE TO CREDITORS.] 
 11.11     (a) Unless notice has already been given under this 
 11.12  section, upon appointment of a general personal representative 
 11.13  in informal proceedings or upon the filing of a petition for 
 11.14  formal appointment of a general personal representative, notice 
 11.15  thereof, in the form prescribed by court rule, shall be given 
 11.16  under the direction of the court administrator by publication 
 11.17  once a week for two successive weeks in a legal newspaper in the 
 11.18  county wherein the proceedings are pending giving the name and 
 11.19  address of the general personal representative and notifying 
 11.20  creditors of the estate to present their claims within four 
 11.21  months after the date of the court administrator's notice which 
 11.22  is subsequently published or be forever barred, unless they are 
 11.23  entitled to further service of notice under paragraph (b) or (c).
 11.24     (b)(1) Within three months after:  (i) the date of the 
 11.25  first publication of the notice; or (ii) June 16, 1989, 
 11.26  whichever is later, the personal representative may determine, 
 11.27  in the personal representative's discretion, that it is or is 
 11.28  not advisable to conduct a reasonably diligent search for 
 11.29  creditors of the decedent who are either not known or not 
 11.30  identified.  If the personal representative determines that a 
 11.31  reasonably diligent search is advisable, the personal 
 11.32  representative shall conduct the search. 
 11.33     (2) If the notice is first published after June 16, 1989, 
 11.34  the personal representative shall, within three months after the 
 11.35  date of the first publication of the notice, serve a copy of the 
 11.36  notice in the manner provided in paragraph (c) upon:  (i) each 
 12.1   then known and identified creditor in the manner provided in 
 12.2   paragraph (c); and (ii) the local agency for purposes of section 
 12.3   256B.15, if the decedent or a spouse who predeceased the 
 12.4   decedent received medical assistance.  If notice was first 
 12.5   published under the applicable provisions of law under the 
 12.6   direction of the court administrator before June 16, 1989, and 
 12.7   if a personal representative is empowered to act at any time 
 12.8   after June 16, 1989, the personal representative shall, within 
 12.9   three months after June 16, 1989, serve upon the then known and 
 12.10  identified creditors in the manner provided in paragraph (c) a 
 12.11  copy of the notice as published, together with a supplementary 
 12.12  notice requiring each of the creditors to present any claim 
 12.13  within one month after the date of the service of the notice or 
 12.14  be forever barred. 
 12.15     (3) Under this section, a creditor is "known" if:  (i) the 
 12.16  personal representative knows that the creditor has asserted a 
 12.17  claim that arose during the decedent's life against either the 
 12.18  decedent or the decedent's estate; or (ii) the creditor has 
 12.19  asserted a claim that arose during the decedent's life and the 
 12.20  fact is clearly disclosed in accessible financial records known 
 12.21  and available to the personal representative.  Under this 
 12.22  section, a creditor is "identified" if the personal 
 12.23  representative's knowledge of the name and address of the 
 12.24  creditor will permit service of notice to be made under 
 12.25  paragraph (c).  
 12.26     (c) The personal representative shall serve a copy of any 
 12.27  notice and any supplementary notice required by paragraph (b), 
 12.28  clause (1) or (2), upon each creditor of the decedent who is 
 12.29  then known to the personal representative and identified, except 
 12.30  a creditor whose claim has either been presented to the personal 
 12.31  representative or paid, either by delivery of a copy of the 
 12.32  required notice to the creditor, or by mailing a copy of the 
 12.33  notice to the creditor by certified, registered, or ordinary 
 12.34  first class mail addressed to the creditor at the creditor's 
 12.35  office or place of residence. 
 12.36     Sec. 10.  [REPEALER.] 
 13.1      Minnesota Statutes 1995 Supplement, section 256B.15, 
 13.2   subdivision 5, is repealed. 
 13.3      Sec. 11.  [EFFECTIVE DATE; APPLICATION.] 
 13.4      (a) Sections 1 to 7 and 10 are effective the day following 
 13.5   final enactment to the extent permitted by federal law.  If any 
 13.6   provisions of sections 1 to 7 and 10 are prohibited by federal 
 13.7   law, those provisions shall become effective when federal law is 
 13.8   changed to permit their application or a waiver is received.  
 13.9   The commissioner of human services shall notify the revisor of 
 13.10  statutes when federal law is enacted or a waiver is received and 
 13.11  publish a notice in the State Register.  The commissioner must 
 13.12  include the notice in the first State Register published after 
 13.13  the effective date of the federal changes.  
 13.14     (b) If, by July 1, 1996, any provisions of sections 1 to 7 
 13.15  and 10 are not effective because of prohibitions in federal law, 
 13.16  the commissioner shall apply to the federal government for a 
 13.17  waiver of those prohibitions, and those provisions of sections 1 
 13.18  to 7 and 10 shall become effective upon receipt of a federal 
 13.19  waiver, notification to the revisor of statutes, and publication 
 13.20  of a notice in the State Register to that effect. 
 13.21     (c) Section 8 applies to estates of decedents dying on or 
 13.22  after its effective date.  Section 9 applies to estates where 
 13.23  the notice under Minnesota Statutes, section 524.3-801, 
 13.24  paragraph (a), was first published on or after its effective 
 13.25  date.  Section 9 does not affect any right or duty to provide 
 13.26  notice to known creditors, including a local agency, before its 
 13.27  effective date. 
 13.28     (d) Sections 8 and 9 are effective the day following final 
 13.29  enactment.