1.1 	A bill for an act
1.2 	relating to human services; modifying certain
1.3 	provisions regarding medical assistance liens;
1.4 	eliminating recovery efforts for alternative care
1.5 	services; appropriating money; amending Minnesota
1.6 	Statutes 2004, sections 256B.15, subdivisions 1, 1a,
1.7 	1d, 1e, 1f, 1h, 1i, 1j, 2, 3, 4; 514.981, subdivision
1.8 	6; 524.3-805; repealing Minnesota Statutes 2004,
1.9 	sections 256B.15, subdivision 1g; 514.991; 514.992;
1.10 	514.993; 514.994; 514.995.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2004, section 256B.15,
1.13 	subdivision 1, is amended to read:
1.14 		Subdivision 1.policy, applicability, purpose, and
1.15 	construction;definition.  (a) It is the policy of this state
1.16 	that individuals or couples, either or both of whom participate
1.17 	in the medical assistance program, use their own assets to pay
1.18 	their share of the total cost of their care during or after
1.19 	their enrollment in the program according to applicable federal
1.20 	law and the laws of this state.  The following provisions apply:
1.21 	(1) subdivisions 1c to 1k shall not apply to claims arising
1.22 	under this section which are presented under section 525.313;
1.23 	(2) the provisions of subdivisions 1c to 1k expanding the
1.24 	interests included in an estate for purposes of recovery under
1.25 	this section give effect to the provisions of United States
1.26 	Code, title 42, section 1396p, governing recoveries, but do not
1.27 	give rise to any express or implied liens in favor of any other
1.28 	parties not named in these provisions; and 
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) (2) all laws, rules, and regulations governing or
2.7 	involved with a recovery of medical assistance shall must be
2.8 	liberally 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 but does not include the alternative care program for
3.13 	nonmedical assistance recipients under section 256B.0913.
3.14 	
EFFECTIVE DATE. The amendments in this section relating
3.15 	to the alternative care program are effective retroactively from
3.16 	July 1, 2003, and apply to the estates of decedents who die on
3.17 	or after that date.  The remaining amendments in this section
3.18 	are effective retroactively from August 1, 2003, and apply to
3.19 	the estates of decedents who die on or after that date.

3.20 	Sec. 2. Minnesota Statutes 2004, section 256B.15,
3.21 	subdivision 1a, is amended to read:
3.22 		Subd. 1a.Estates subject to claims.  If a person
3.23 	receives any medical assistance hereunder, on the person's
3.24 	death, if single, or on the death of the survivor of a married
3.25 	couple, either or both of whom received medical assistance, or
3.26 	as otherwise provided for in this section,the total amount paid
3.27 	for medical assistance rendered for the person and spouse shall
3.28 	be filed as a claim against the estate of the person or the
3.29 	estate of the surviving spouse in the court having jurisdiction
3.30 	to probate the estate or to issue a decree of descent according
3.31 	to sections 525.31 to 525.313.
3.32 	A claim shall be filed if medical assistance was rendered
3.33 	for either or both persons under one of the following
3.34 	circumstances:
3.35 	(a) the person was over 55 years of age, and received
3.36 	services under this chapter, excluding alternative care;
4.1 	(b) the person resided in a medical institution for six
4.2 	months or longer, received services under this chapter,
4.3 	excluding alternative care, and, at the time of
4.4 	institutionalization or application for medical assistance,
4.5 	whichever is later, the person could not have reasonably been
4.6 	expected to be discharged and returned home, as certified in
4.7 	writing by the person's treating physician.  For purposes of
4.8 	this section only, a "medical institution" means a skilled
4.9 	nursing facility, intermediate care facility, intermediate care
4.10 	facility for persons with mental retardation, nursing facility,
4.11 	or inpatient hospital; or
4.12 	(c) the person received general assistance medical care
4.13 	services under chapter 256D.
4.14 	The claim shall be considered an expense of the last
4.15 	illness of the decedent for the purpose of section 524.3-805.
4.16 	Any statute of limitations that purports to limit any county
4.17 	agency or the state agency, or both, to recover for medical
4.18 	assistance granted hereunder shall not apply to any claim made
4.19 	hereunder for reimbursement for any medical assistance granted
4.20 	hereunder.  Notice of the claim shall be given to all heirs and
4.21 	devisees of the decedent whose identity can be ascertained with
4.22 	reasonable diligence.  The notice must include procedures and
4.23 	instructions for making an application for a hardship waiver
4.24 	under subdivision 5; time frames for submitting an application
4.25 	and determination; and information regarding appeal rights and
4.26 	procedures.  Counties are entitled to one-half of the nonfederal
4.27 	share of medical assistance collections from estates that are
4.28 	directly attributable to county effort. Counties are entitled
4.29 	to ten percent of the collections for alternative care directly
4.30 	attributable to county effort.
4.31 	
EFFECTIVE DATE. The amendments in this section relating
4.32 	to the alternative care program are effective retroactively from
4.33 	July 1, 2003, and apply to the estates of decedents who die on
4.34 	or after that date.  The remaining amendments in this section
4.35 	are effective retroactively from August 1, 2003, and apply to
4.36 	the estates of decedents who die on or after that date.

5.1 	Sec. 3. Minnesota Statutes 2004, section 256B.15,
5.2 	subdivision 1d, is amended to read:
5.3 		Subd. 1d.Effect of notice.  From the time it takes
5.4 	effect, the notice shall be notice to remaindermen, joint
5.5 	tenants, or to anyone else owning or acquiring an interest in or
5.6 	encumbrance against the property described in the notice that
5.7 	the medical assistance recipient's life estate, joint tenancy,
5.8 	or other interests in the real estate described in the notice:
5.9 	(1) shall, in the case of life estate and joint tenancy
5.10 	interests, continue to exist for purposes of this section, and
5.11 	be subject to liens and claims as provided in this section;
5.12 	(2) shall be subject to a lien in favor of the claimant
5.13 	effective upon the death of the recipient and dealt with as
5.14 	provided in this section;
5.15 	(3) (2) may be included in the recipient's estate, as
5.16 	defined in this section; and
5.17 	(4) (3) may be subject to administration and all other
5.18 	provisions of chapter 524 and may be sold, assigned,
5.19 	transferred, or encumbered free and clear of their interest or
5.20 	encumbrance to satisfy claims under this section.
5.21 	
EFFECTIVE DATE. This section is effective retroactively
5.22 	from August 1, 2003.

5.23 	Sec. 4. Minnesota Statutes 2004, section 256B.15,
5.24 	subdivision 1e, is amended to read:
5.25 		Subd. 1e.Full or partial release of notice.  (a) The
5.26 	claimant may fully or partially release the notice and the lien
5.27 	arising out of the notice of record in the real estate records
5.28 	where the notice is filed or recorded at any time. The claimant
5.29 	may give a full or partial release to extinguish any life
5.30 	estates or joint tenancy interests which are or may be continued
5.31 	under this section or whose existence or nonexistence may create
5.32 	a cloud on the title to real property at any time whether or not
5.33 	a notice has been filed.The recorder or registrar of titles
5.34 	shall accept the release for recording or filing.  If the
5.35 	release is a partial release, it must include a legal
5.36 	description of the property being released.
6.1 	(b) At any time, the claimant may, at the claimant's
6.2 	discretion, wholly or partially release, subordinate, modify, or
6.3 	amend the recorded notice and the lien arising out of the notice.
6.4 	
EFFECTIVE DATE. This section is effective retroactively
6.5 	from August 1, 2003.

6.6 	Sec. 5. Minnesota Statutes 2004, section 256B.15,
6.7 	subdivision 1f, is amended to read:
6.8 		Subd. 1f.Agency lien.  (a) The notice shall constitute a
6.9 	lien in favor of the Department of Human Services against the
6.10 	recipient's interests in the real estate it describes for a
6.11 	period of 20 years from the date of filing or the date of the
6.12 	recipient's death, whichever is later. Notwithstanding any law
6.13 	or rule to the contrary, a recipient's life estate and joint
6.14 	tenancy interests shall not end upon the recipient's death but
6.15 	shall continue according to subdivisions 1h, 1i, and 1j.The
6.16 	amount of the lien shall be equal to the total amount of the
6.17 	claims that could be presented in the recipient's estate under
6.18 	this section.
6.19 	(b) If no estate has been opened for the deceased
6.20 	recipient, any holder of an interest in the property may apply
6.21 	to the lien holder for a statement of the amount of the lien or
6.22 	for a full or partial release of the lien.  The application
6.23 	shall include the applicant's name, current mailing address,
6.24 	current home and work telephone numbers, and a description of
6.25 	their interest in the property, a legal description of the
6.26 	recipient's interest in the property, and the deceased
6.27 	recipient's name, date of birth, and Social Security number.
6.28 	The lien holder shall send the applicant by certified mail,
6.29 	return receipt requested, a written statement showing the amount
6.30 	of the lien, whether the lien holder is willing to release the
6.31 	lien and under what conditions, and inform them of the right to
6.32 	a hearing under section 256.045.  The lien holder shall have the
6.33 	discretion to compromise and settle the lien upon any terms and
6.34 	conditions the lien holder deems appropriate.
6.35 	(c) Any holder of an interest in property subject to the
6.36 	lien has a right to request a hearing under section 256.045 to
7.1 	determine the validity, extent, or amount of the lien.  The
7.2 	request must be in writing, and must include the names, current
7.3 	addresses, and home and business telephone numbers for all other
7.4 	parties holding an interest in the property.  A request for a
7.5 	hearing by any holder of an interest in the property shall be
7.6 	deemed to be a request for a hearing by all parties owning
7.7 	interests in the property.  Notice of the hearing shall be given
7.8 	to the lien holder, the party filing the appeal, and all of the
7.9 	other holders of interests in the property at the addresses
7.10 	listed in the appeal by certified mail, return receipt
7.11 	requested, or by ordinary mail.  Any owner of an interest in the
7.12 	property to whom notice of the hearing is mailed shall be deemed
7.13 	to have waived any and all claims or defenses in respect to the
7.14 	lien unless they appear and assert any claims or defenses at the
7.15 	hearing.
7.16 	(d) If the claim the lien secures could be filed under
7.17 	subdivision 1h, the lien holder may collect, compromise, settle,
7.18 	or release the lien upon any terms and conditions it deems
7.19 	appropriate.  If the claim the lien secures could be filed under
7.20 	subdivision 1i or 1j, the lien may be adjusted or enforced to
7.21 	the same extent had it been filed under subdivisions 1i and 1j,
7.22 	and the provisions of subdivisions 1i, clause (f) (e), and lj,
7.23 	clause (d), shall apply to voluntary payment, settlement, or
7.24 	satisfaction of the lien.
7.25 	(e) If no probate proceedings have been commenced for the
7.26 	recipient as of the date the lien holder executes a release of
7.27 	the lien on a recipient's life estate or joint tenancy interest,
7.28 	created for purposes of this section, the release shall
7.29 	terminate the life estate or joint tenancy interest created
7.30 	under this section as of the date it is recorded or filed to the
7.31 	extent of the release.  If the claimant executes a release for
7.32 	purposes of extinguishing a life estate or a joint tenancy
7.33 	interest created under this section to remove a cloud on title
7.34 	to real property, the release shall have the effect of
7.35 	extinguishing any life estate or joint tenancy interests in the
7.36 	property it describes which may have been continued by reason of
8.1 	this section retroactive to the date of death of the deceased
8.2 	life tenant or joint tenant except as provided for in section
8.3 	514.981, subdivision 6.
8.4 	(f) If the deceased recipient's estate is probated, a claim
8.5 	shall be filed under this section.  The amount of the lien shall
8.6 	be limited to the amount of the claim as finally allowed.  If
8.7 	the claim the lien secures is filed under subdivision 1h, the
8.8 	lien may be released in full after any allowance of the claim
8.9 	becomes final or according to any agreement to settle and
8.10 	satisfy the claim.  The release shall release the lien but shall
8.11 	not extinguish or terminate the interest being released.  If the
8.12 	claim the lien secures is filed under subdivision 1i or 1j, the
8.13 	lien shall be released after the lien under subdivision 1i or 1j
8.14 	is filed or recorded, or settled according to any agreement to
8.15 	settle and satisfy the claim.  The release shall not extinguish
8.16 	or terminate the interest being released.  If the claim is
8.17 	finally disallowed in full, the claimant shall release the
8.18 	claimant's lien at the claimant's expense.
8.19 	
EFFECTIVE DATE. This section is effective retroactively
8.20 	from August 1, 2003.

8.21 	Sec. 6. Minnesota Statutes 2004, section 256B.15,
8.22 	subdivision 1h, is amended to read:
8.23 		Subd. 1h.Estates of specific persons receiving medical
8.24 	assistance.  (a) For purposes of this section, paragraphs (b) to
8.25 	(k) and (c) apply if a person received medical assistance for
8.26 	which a claim may be filed under this section and died single,
8.27 	or the surviving spouse of the couple and was not survived by
8.28 	any of the persons described in subdivisions 3 and 4.
8.29 	(b) For purposes of this section, the person's estate
8.30 	consists of:  (1) their probate estate; (2) all of the person's
8.31 	interests or proceeds of those interests in real property the
8.32 	person owned as a life tenant or as a joint tenant with a right
8.33 	of survivorship at the time of the person's death; (3) all of
8.34 	the person's interests or proceeds of those interests in
8.35 	securities the person owned in beneficiary form as provided
8.36 	under sections 524.6-301 to 524.6-311 at the time of the
9.1 	person's death, to the extent they become part of the probate
9.2 	estate under section 524.6-307; and (4) (3) all of the person's
9.3 	interests in joint accounts, multiple party accounts, and pay on
9.4 	death accounts, or the proceeds of those accounts, as provided
9.5 	under sections 524.6-201 to 524.6-214 at the time of the
9.6 	person's death to the extent they become part of the probate
9.7 	estate under section 524.6-207.  Notwithstanding any law or rule
9.8 	to the contrary, a state or county agency with a claim under
9.9 	this section shall be a creditor under section 524.6-307.
9.10 	(c) Notwithstanding any law or rule to the contrary, the
9.11 	person's life estate or joint tenancy interest in real property
9.12 	not subject to a medical assistance lien under sections 514.980
9.13 	to 514.985 on the date of the person's death shall not end upon
9.14 	the person's death and shall continue as provided in this
9.15 	subdivision.  The life estate in the person's estate shall be
9.16 	that portion of the interest in the real property subject to the
9.17 	life estate that is equal to the life estate percentage factor
9.18 	for the life estate as listed in the Life Estate Mortality Table
9.19 	of the health care program's manual for a person who was the age
9.20 	of the medical assistance recipient on the date of the person's
9.21 	death.  The joint tenancy interest in real property in the
9.22 	estate shall be equal to the fractional interest the person
9.23 	would have owned in the jointly held interest in the property
9.24 	had they and the other owners held title to the property as
9.25 	tenants in common on the date the person died.
9.26 	(d) The court upon its own motion, or upon motion by the
9.27 	personal representative or any interested party, may enter an
9.28 	order directing the remaindermen or surviving joint tenants and
9.29 	their spouses, if any, to sign all documents, take all actions,
9.30 	and otherwise fully cooperate with the personal representative
9.31 	and the court to liquidate the decedent's life estate or joint
9.32 	tenancy interests in the estate and deliver the cash or the
9.33 	proceeds of those interests to the personal representative and
9.34 	provide for any legal and equitable sanctions as the court deems
9.35 	appropriate to enforce and carry out the order, including an
9.36 	award of reasonable attorney fees.
10.1 	(e) The personal representative may make, execute, and
10.2 	deliver any conveyances or other documents necessary to convey
10.3 	the decedent's life estate or joint tenancy interest in the
10.4 	estate that are necessary to liquidate and reduce to cash the
10.5 	decedent's interest or for any other purposes.
10.6 	(f) Subject to administration, all costs, including
10.7 	reasonable attorney fees, directly and immediately related to
10.8 	liquidating the decedent's life estate or joint tenancy interest
10.9 	in the decedent's estate, shall be paid from the gross proceeds
10.10 	of the liquidation allocable to the decedent's interest and the
10.11 	net proceeds shall be turned over to the personal representative
10.12 	and applied to payment of the claim presented under this section.
10.13 	(g) The personal representative shall bring a motion in the
10.14 	district court in which the estate is being probated to compel
10.15 	the remaindermen or surviving joint tenants to account for and
10.16 	deliver to the personal representative all or any part of the
10.17 	proceeds of any sale, mortgage, transfer, conveyance, or any
10.18 	disposition of real property allocable to the decedent's life
10.19 	estate or joint tenancy interest in the decedent's estate, and
10.20 	do everything necessary to liquidate and reduce to cash the
10.21 	decedent's interest and turn the proceeds of the sale or other
10.22 	disposition over to the personal representative.  The court may
10.23 	grant any legal or equitable relief including, but not limited
10.24 	to, ordering a partition of real estate under chapter 558
10.25 	necessary to make the value of the decedent's life estate or
10.26 	joint tenancy interest available to the estate for payment of a
10.27 	claim under this section.
10.28 	(h) Subject to administration, the personal representative
10.29 	shall use all of the cash or proceeds of interests to pay an
10.30 	allowable claim under this section.  The remaindermen or
10.31 	surviving joint tenants and their spouses, if any, may enter
10.32 	into a written agreement with the personal representative or the
10.33 	claimant to settle and satisfy obligations imposed at any time
10.34 	before or after a claim is filed.
10.35 	(i) The personal representative may, at their discretion,
10.36 	provide any or all of the other owners, remaindermen, or
11.1 	surviving joint tenants with an affidavit terminating the
11.2 	decedent's estate's interest in real property the decedent owned
11.3 	as a life tenant or as a joint tenant with others, if the
11.4 	personal representative determines in good faith that neither
11.5 	the decedent nor any of the decedent's predeceased spouses
11.6 	received any medical assistance for which a claim could be filed
11.7 	under this section, or if the personal representative has filed
11.8 	an affidavit with the court that the estate has other assets
11.9 	sufficient to pay a claim, as presented, or if there is a
11.10 	written agreement under paragraph (h), or if the claim, as
11.11 	allowed, has been paid in full or to the full extent of the
11.12 	assets the estate has available to pay it.  The affidavit may be
11.13 	recorded in the office of the county recorder or filed in the
11.14 	Office of the Registrar of Titles for the county in which the
11.15 	real property is located.  Except as provided in section
11.16 	514.981, subdivision 6, when recorded or filed, the affidavit
11.17 	shall terminate the decedent's interest in real estate the
11.18 	decedent owned as a life tenant or a joint tenant with others.
11.19 	The affidavit shall:  (1) be signed by the personal
11.20 	representative; (2) identify the decedent and the interest being
11.21 	terminated; (3) give recording information sufficient to
11.22 	identify the instrument that created the interest in real
11.23 	property being terminated; (4) legally describe the affected
11.24 	real property; (5) state that the personal representative has
11.25 	determined that neither the decedent nor any of the decedent's
11.26 	predeceased spouses received any medical assistance for which a
11.27 	claim could be filed under this section; (6) state that the
11.28 	decedent's estate has other assets sufficient to pay the claim,
11.29 	as presented, or that there is a written agreement between the
11.30 	personal representative and the claimant and the other owners or
11.31 	remaindermen or other joint tenants to satisfy the obligations
11.32 	imposed under this subdivision; and (7) state that the affidavit
11.33 	is being given to terminate the estate's interest under this
11.34 	subdivision, and any other contents as may be appropriate.
11.35 	The recorder or registrar of titles shall accept the affidavit
11.36 	for recording or filing.  The affidavit shall be effective as
12.1 	provided in this section and shall constitute notice even if it
12.2 	does not include recording information sufficient to identify
12.3 	the instrument creating the interest it terminates.  The
12.4 	affidavit shall be conclusive evidence of the stated facts.
12.5 	(j) The holder of a lien arising under subdivision 1c shall
12.6 	release the lien at the holder's expense against an interest
12.7 	terminated under paragraph (h) to the extent of the termination.
12.8 	(k) (c) If a lien arising under subdivision 1c is not
12.9 	released under paragraph (j),prior to closing the estate, the
12.10 	personal representative shall deed the interest subject to the
12.11 	lien to the remaindermen or surviving joint tenants as their
12.12 	interests may appear.  Upon recording or filing, the deed shall
12.13 	work a merger of the recipient's life estate or joint tenancy
12.14 	interest, subject to the lien, into the remainder interest or
12.15 	interest the decedent and others owned jointly heirs or devisees
12.16 	subject to the lien.  The lien shall attach to and run with the
12.17 	property to the extent of the decedent's interest at the time of
12.18 	the decedent's death.
12.19 	
EFFECTIVE DATE. This section is effective retroactively
12.20 	from August 1, 2003.

12.21 	Sec. 7. Minnesota Statutes 2004, section 256B.15,
12.22 	subdivision 1i, is amended to read:
12.23 		Subd. 1i.Estates of persons receiving medical assistance
12.24 	and survived by others.  (a) For purposes of this subdivision,
12.25 	the person's estate consists of the person's probate estate and
12.26 	all of the person's interests in real property the person owned
12.27 	as a life tenant or a joint tenant at the time of the person's
12.28 	death is as defined in subdivision 1h, paragraph (b).
12.29 	(b) Notwithstanding any law or rule to the contrary, this
12.30 	subdivision applies if a person received medical assistance for
12.31 	which a claim could be filed under this section but for the fact
12.32 	the person was survived by a spouse or by a person listed in
12.33 	subdivision 3, or if subdivision 4 applies to a claim arising
12.34 	under this section.
12.35 	(c) The person's life estate or joint tenancy interests in
12.36 	real property not subject to a medical assistance lien under
13.1 	sections 514.980 to 514.985 on the date of the person's death
13.2 	shall not end upon death and shall continue as provided in this
13.3 	subdivision.  The life estate in the estate shall be the portion
13.4 	of the interest in the property subject to the life estate that
13.5 	is equal to the life estate percentage factor for the life
13.6 	estate as listed in the Life Estate Mortality Table of the
13.7 	health care program's manual for a person who was the age of the
13.8 	medical assistance recipient on the date of the person's death.
13.9 	The joint tenancy interest in the estate shall be equal to the
13.10 	fractional interest the medical assistance recipient would have
13.11 	owned in the jointly held interest in the property had they and
13.12 	the other owners held title to the property as tenants in common
13.13 	on the date the medical assistance recipient died.
13.14 	(d) The county agency shall file a claim in the estate
13.15 	under this section on behalf of the claimant who shall be the
13.16 	commissioner of human services, notwithstanding that the
13.17 	decedent is survived by a spouse or a person listed in
13.18 	subdivision 3.  The claim, as allowed, shall not be paid by the
13.19 	estate and shall be disposed of as provided in this paragraph.
13.20 	The personal representative or the court shall make, execute,
13.21 	and deliver a lien in favor of the claimant on the decedent's
13.22 	interest in real property in the estate in the amount of the
13.23 	allowed claim on forms provided by the commissioner to the
13.24 	county agency filing the lien.  The lien shall bear interest as
13.25 	provided under section 524.3-806, shall attach to the property
13.26 	it describes upon filing or recording, and shall remain a lien
13.27 	on the real property it describes for a period of 20 years from
13.28 	the date it is filed or recorded.  The lien shall be a
13.29 	disposition of the claim sufficient to permit the estate to
13.30 	close.
13.31 	(e) (d) The state or county agency shall file or record the
13.32 	lien in the office of the county recorder or registrar of titles
13.33 	for each county in which any of the real property is located.
13.34 	The recorder or registrar of titles shall accept the lien for
13.35 	filing or recording.  All recording or filing fees shall be paid
13.36 	by the Department of Human Services.  The recorder or registrar
14.1 	of titles shall mail the recorded lien to the Department of
14.2 	Human Services.  The lien need not be attested, certified, or
14.3 	acknowledged as a condition of recording or filing. Upon
14.4 	recording or filing of a lien against a life estate or a joint
14.5 	tenancy interest, the interest subject to the lien shall merge
14.6 	into the remainder interest or the interest the recipient and
14.7 	others owned jointly.  The lien shall attach to and run with the
14.8 	property to the extent of the decedent's interest in the
14.9 	property at the time of the decedent's death as determined under
14.10 	this section.
14.11 	(f) (e) The department shall make no adjustment or recovery
14.12 	under the lien until after the decedent's spouse, if any, has
14.13 	died, and only at a time when the decedent has no surviving
14.14 	child described in subdivision 3.  The estate, any owner of an
14.15 	interest in the property which is or may be subject to the lien,
14.16 	or any other interested party, may voluntarily pay off, settle,
14.17 	or otherwise satisfy the claim secured or to be secured by the
14.18 	lien at any time before or after the lien is filed or recorded.
14.19 	Such payoffs, settlements, and satisfactions shall be deemed to
14.20 	be voluntary repayments of past medical assistance payments for
14.21 	the benefit of the deceased recipient, and neither the process
14.22 	of settling the claim, the payment of the claim, or the
14.23 	acceptance of a payment shall constitute an adjustment or
14.24 	recovery that is prohibited under this subdivision.
14.25 	(g) (f) The lien under this subdivision may be enforced or
14.26 	foreclosed in the manner provided by law for the enforcement of
14.27 	judgment liens against real estate or by a foreclosure by action
14.28 	under chapter 581.  When the lien is paid, satisfied, or
14.29 	otherwise discharged, the state or county agency shall prepare
14.30 	and file a release of lien at its own expense.  No action to
14.31 	foreclose the lien shall be commenced unless the lien holder has
14.32 	first given 30 days' prior written notice to pay the lien to the
14.33 	owners and parties in possession of the property subject to the
14.34 	lien.  The notice shall:  (1) include the name, address, and
14.35 	telephone number of the lien holder; (2) describe the lien; (3)
14.36 	give the amount of the lien; (4) inform the owner or party in
15.1 	possession that payment of the lien in full must be made to the
15.2 	lien holder within 30 days after service of the notice or the
15.3 	lien holder may begin proceedings to foreclose the lien; and (5)
15.4 	be served by personal service, certified mail, return receipt
15.5 	requested, ordinary first class mail, or by publishing it once
15.6 	in a newspaper of general circulation in the county in which any
15.7 	part of the property is located.  Service of the notice shall be
15.8 	complete upon mailing or publication.
15.9 	
EFFECTIVE DATE. This section is effective retroactively
15.10 	from August 1, 2003.

15.11 	Sec. 8. Minnesota Statutes 2004, section 256B.15,
15.12 	subdivision 1j, is amended to read:
15.13 		Subd. 1j.Claims in estates of decedents survived by
15.14 	other survivors.  For purposes of this subdivision, the
15.15 	provisions in subdivision 1i, paragraphs (a) to (c) and (b) 
15.16 	apply.
15.17 	(a) If payment of a claim filed under this section is
15.18 	limited as provided in subdivision 4, and if the estate does not
15.19 	have other assets sufficient to pay the claim in full, as
15.20 	allowed, the personal representative or the court shall make,
15.21 	execute, and deliver a lien on the property in the estate that
15.22 	is exempt from the claim under subdivision 4 in favor of the
15.23 	commissioner of human services on forms provided by the
15.24 	commissioner to the county agency filing the claim.  If the
15.25 	estate pays a claim filed under this section in full from other
15.26 	assets of the estate, no lien shall be filed against the
15.27 	property described in subdivision 4.
15.28 	(b) The lien shall be in an amount equal to the unpaid
15.29 	balance of the allowed claim under this section remaining after
15.30 	the estate has applied all other available assets of the estate
15.31 	to pay the claim.  The property exempt under subdivision 4 shall
15.32 	not be sold, assigned, transferred, conveyed, encumbered, or
15.33 	distributed until after the personal representative has
15.34 	determined the estate has other assets sufficient to pay the
15.35 	allowed claim in full, or until after the lien has been filed or
15.36 	recorded.  The lien shall bear interest as provided under
16.1 	section 524.3-806, shall attach to the property it describes
16.2 	upon filing or recording, and shall remain a lien on the real
16.3 	property it describes for a period of 20 years from the date it
16.4 	is filed or recorded.  The lien shall be a disposition of the
16.5 	claim sufficient to permit the estate to close.
16.6 	(c) The state or county agency shall file or record the
16.7 	lien in the office of the county recorder or registrar of titles
16.8 	in each county in which any of the real property is located.
16.9 	The department shall pay the filing fees.  The lien need not be
16.10 	attested, certified, or acknowledged as a condition of recording
16.11 	or filing.  The recorder or registrar of titles shall accept the
16.12 	lien for filing or recording.
16.13 	(d) The commissioner shall make no adjustment or recovery
16.14 	under the lien until none of the persons listed in subdivision 4
16.15 	are residing on the property or until the property is sold or
16.16 	transferred.  The estate or any owner of an interest in the
16.17 	property that is or may be subject to the lien, or any other
16.18 	interested party, may voluntarily pay off, settle, or otherwise
16.19 	satisfy the claim secured or to be secured by the lien at any
16.20 	time before or after the lien is filed or recorded.  The
16.21 	payoffs, settlements, and satisfactions shall be deemed to be
16.22 	voluntary repayments of past medical assistance payments for the
16.23 	benefit of the deceased recipient and neither the process of
16.24 	settling the claim, the payment of the claim, or acceptance of a
16.25 	payment shall constitute an adjustment or recovery that is
16.26 	prohibited under this subdivision.
16.27 	(e) A lien under this subdivision may be enforced or
16.28 	foreclosed in the manner provided for by law for the enforcement
16.29 	of judgment liens against real estate or by a foreclosure by
16.30 	action under chapter 581.  When the lien has been paid,
16.31 	satisfied, or otherwise discharged, the claimant shall prepare
16.32 	and file a release of lien at the claimant's expense.  No action
16.33 	to foreclose the lien shall be commenced unless the lien holder
16.34 	has first given 30 days prior written notice to pay the lien to
16.35 	the record owners of the property and the parties in possession
16.36 	of the property subject to the lien.  The notice shall:  (1)
17.1 	include the name, address, and telephone number of the lien
17.2 	holder; (2) describe the lien; (3) give the amount of the lien;
17.3 	(4) inform the owner or party in possession that payment of the
17.4 	lien in full must be made to the lien holder within 30 days
17.5 	after service of the notice or the lien holder may begin
17.6 	proceedings to foreclose the lien; and (5) be served by personal
17.7 	service, certified mail, return receipt requested, ordinary
17.8 	first class mail, or by publishing it once in a newspaper of
17.9 	general circulation in the county in which any part of the
17.10 	property is located.  Service shall be complete upon mailing or
17.11 	publication.
17.12 	(f) Upon filing or recording of a lien against a life
17.13 	estate or joint tenancy interest under this subdivision, the
17.14 	interest subject to the lien shall merge into the remainder
17.15 	interest or the interest the decedent and others owned jointly,
17.16 	effective on the date of recording and filing.  The lien shall
17.17 	attach to and run with the property to the extent of the
17.18 	decedent's interest in the property at the time of the
17.19 	decedent's death as determined under this section.
17.20 	(g) (1) An affidavit may be provided by a personal
17.21 	representative, at their discretion, stating the personal
17.22 	representative has determined in good faith that a decedent
17.23 	survived by a spouse or a person listed in subdivision 3, or by
17.24 	a person listed in subdivision 4, or the decedent's predeceased
17.25 	spouse did not receive any medical assistance giving rise to a
17.26 	claim under this section, or that the real property described in
17.27 	subdivision 4 is not needed to pay in full a claim arising under
17.28 	this section.
17.29 	(2) The affidavit shall:
17.30 	(i) describe the property and the interest being
17.31 	extinguished;
17.32 	(ii) name the decedent and give the date of death;
17.33 	(iii) state the facts listed in clause (1);
17.34 	(iv) state that the affidavit is being filed to terminate
17.35 	the life estate or joint tenancy interest created under this
17.36 	subdivision;
18.1 	(v) be signed by the personal representative; and
18.2 	(vi) contain any other information that the affiant deems
18.3 	appropriate.
18.4 	(3) Except as provided in section 514.981, subdivision 6,
18.5 	when the affidavit is filed or recorded, the life estate or
18.6 	joint tenancy interest in real property that the affidavit
18.7 	describes shall be terminated effective as of the date of filing
18.8 	or recording.  The termination shall be final and may not be set
18.9 	aside for any reason.
18.10 	
EFFECTIVE DATE. This section is effective retroactively
18.11 	from August 1, 2003.

18.12 	Sec. 9. Minnesota Statutes 2004, section 256B.15,
18.13 	subdivision 2, is amended to read:
18.14 		Subd. 2.Limitations on claims.  The claim shall include
18.15 	only the total amount of medical assistance rendered after age
18.16 	55 or during a period of institutionalization described in
18.17 	subdivision 1a, clause (b), and the total amount of general
18.18 	assistance medical care rendered, and shall not include
18.19 	interest.  Claims that have been allowed but not paid shall bear
18.20 	interest according to section 524.3-806, paragraph (d).  A claim
18.21 	against the estate of a surviving spouse who did not receive
18.22 	medical assistance, for medical assistance rendered for the
18.23 	predeceased spouse, is limited to the value of the assets of the
18.24 	estate that were marital property or jointly owned property at
18.25 	any time during the marriage. Claims for alternative care shall
18.26 	be net of all premiums paid under section 256B.0913, subdivision
18.27 	12, on or after July 1, 2003, and shall be limited to services
18.28 	provided on or after July 1, 2003.
18.29 	
EFFECTIVE DATE. This section is effective retroactively
18.30 	from July 1, 2003, for decedents dying on or after that date.

18.31 	Sec. 10. Minnesota Statutes 2004, section 256B.15,
18.32 	subdivision 3, is amended to read:
18.33 		Subd. 3.surviving spouse,minor, blind, or disabled
18.34 	children.  If a decedent is survived by a spouse, or who was
18.35 	single or who was the surviving spouse of a married couple and 
18.36 	is survived by a child who is under age 21 or blind or
19.1 	permanently and totally disabled according to the supplemental
19.2 	security income program criteria, a no claim shall be filed
19.3 	against the estate according to this section.
19.4 	
EFFECTIVE DATE. This section is effective retroactively
19.5 	from August 1, 2003.

19.6 	Sec. 11. Minnesota Statutes 2004, section 256B.15,
19.7 	subdivision 4, is amended to read:
19.8 		Subd. 4.Other survivors.  If the decedent who was single
19.9 	or the surviving spouse of a married couple is survived by one
19.10 	of the following persons, a claim exists against the estate in
19.11 	an amount not to exceed the value of the nonhomestead property
19.12 	included in the estate and the personal representative shall
19.13 	make, execute, and deliver to the county agency a lien against
19.14 	the homestead property in the estate for any unpaid balance of
19.15 	the claim to the claimant as provided under this section:
19.16 	(a) (1) a sibling who resided in the decedent medical
19.17 	assistance recipient's home at least one year before the
19.18 	decedent's institutionalization and continuously since the date
19.19 	of institutionalization; or
19.20 	(b) (2) a son or daughter or a grandchild who resided in
19.21 	the decedent medical assistance recipient's home for at least
19.22 	two years immediately before the parent's or grandparent's
19.23 	institutionalization and continuously since the date of
19.24 	institutionalization, and who establishes by a preponderance of
19.25 	the evidence having provided care to the parent or grandparent
19.26 	who received medical assistance, that the care was provided
19.27 	before institutionalization, and that the care permitted the
19.28 	parent or grandparent to reside at home rather than in an
19.29 	institution.
19.30 	
EFFECTIVE DATE. This section is effective retroactively
19.31 	from August 1, 2003, and applies to decedents who die on or
19.32 	after that date.

19.33 	Sec. 12. Minnesota Statutes 2004, section 514.981,
19.34 	subdivision 6, is amended to read:
19.35 		Subd. 6.Time limits; claim limits; liens on life estates
19.36 	and joint tenancies.  (a) A medical assistance lien is a lien on
20.1 	the real property it describes for a period of ten years from
20.2 	the date it attaches according to section 514.981, subdivision
20.3 	2, paragraph (a), except as otherwise provided for in sections
20.4 	514.980 to 514.985.  The agency may renew a medical assistance
20.5 	lien for an additional ten years from the date it would
20.6 	otherwise expire by recording or filing a certificate of renewal
20.7 	before the lien expires.  The certificate shall be recorded or
20.8 	filed in the office of the county recorder or registrar of
20.9 	titles for the county in which the lien is recorded or filed.
20.10 	The certificate must refer to the recording or filing data for
20.11 	the medical assistance lien it renews.  The certificate need not
20.12 	be attested, certified, or acknowledged as a condition for
20.13 	recording or filing.  The registrar of titles or the recorder
20.14 	shall file, record, index, and return the certificate of renewal
20.15 	in the same manner as provided for medical assistance liens in
20.16 	section 514.982, subdivision 2.
20.17 	(b) A medical assistance lien is not enforceable against
20.18 	the real property of an estate to the extent there is a
20.19 	determination by a court of competent jurisdiction, or by an
20.20 	officer of the court designated for that purpose, that there are
20.21 	insufficient assets in the estate to satisfy the agency's
20.22 	medical assistance lien in whole or in part because of the
20.23 	homestead exemption under section 256B.15, subdivision 4, the
20.24 	rights of the surviving spouse or minor children under section
20.25 	524.2-403, paragraphs (a) and (b), or claims with a priority
20.26 	under section 524.3-805, paragraph (a), clauses (1) to (4).  For
20.27 	purposes of this section, the rights of the decedent's adult
20.28 	children to exempt property under section 524.2-403, paragraph
20.29 	(b), shall not be considered costs of administration under
20.30 	section 524.3-805, paragraph (a), clause (1).
20.31 	(c) Notwithstanding any law or rule to the contrary, the
20.32 	provisions in clauses (1) to (7) apply if a life estate subject
20.33 	to a medical assistance lien ends according to its terms, or if
20.34 	a medical assistance recipient who owns a life estate or any
20.35 	interest in real property as a joint tenant that is subject to a
20.36 	medical assistance lien dies.
21.1 	(1) The medical assistance recipient's life estate or joint
21.2 	tenancy interest in the real property shall not end upon the
21.3 	recipient's death but shall merge into the remainder interest or
21.4 	other interest in real property the medical assistance recipient
21.5 	owned in joint tenancy with others.  The medical assistance lien
21.6 	shall attach to and run with the remainder or other interest in
21.7 	the real property to the extent of the medical assistance
21.8 	recipient's interest in the property at the time of the
21.9 	recipient's death as determined under this section.
21.10 	(2) If the medical assistance recipient's interest was a
21.11 	life estate in real property, the lien shall be a lien against
21.12 	the portion of the remainder equal to the percentage factor for
21.13 	the life estate of a person the medical assistance recipient's
21.14 	age on the date the life estate ended according to its terms or
21.15 	the date of the medical assistance recipient's death as listed
21.16 	in the Life Estate Mortality Table in the health care program's
21.17 	manual.
21.18 	(3) If the medical assistance recipient owned the interest
21.19 	in real property in joint tenancy with others, the lien shall be
21.20 	a lien against the portion of that interest equal to the
21.21 	fractional interest the medical assistance recipient would have
21.22 	owned in the jointly owned interest had the medical assistance
21.23 	recipient and the other owners held title to that interest as
21.24 	tenants in common on the date the medical assistance recipient
21.25 	died.
21.26 	(4) The medical assistance lien shall remain a lien against
21.27 	the remainder or other jointly owned interest for the length of
21.28 	time and be renewable as provided in paragraph (a).
21.29 	(5) Subdivision 5, paragraph (a), clause (4), paragraph
21.30 	(b), clauses (1) and (2); and subdivision 6, paragraph (b), do
21.31 	not apply to medical assistance liens which attach to interests
21.32 	in real property as provided under this subdivision.
21.33 	(6) The continuation of a medical assistance recipient's
21.34 	life estate or joint tenancy interest in real property after the
21.35 	medical assistance recipient's death for the purpose of
21.36 	recovering medical assistance provided for in sections 514.980
22.1 	to 514.985 modifies common law principles holding that these
22.2 	interests terminate on the death of the holder.
22.3 	(7) Notwithstanding any law or rule to the contrary, no
22.4 	release, satisfaction, discharge, or affidavit under section
22.5 	256B.15 shall extinguish or terminate the life estate or joint
22.6 	tenancy interest of a medical assistance recipient subject to a
22.7 	lien under sections 514.980 to 514.985 on the date the recipient
22.8 	dies.
22.9 	(8) The provisions of clauses (1) to (7) do not apply to a
22.10 	homestead owned of record, on the date the recipient dies, by
22.11 	the recipient and the recipient's spouse as joint tenants with a
22.12 	right of survivorship.  Homestead means the real property
22.13 	occupied by the surviving joint tenant spouse as their sole
22.14 	residence on the date the recipient dies and classified and
22.15 	taxed to the recipient and surviving joint tenant spouse as
22.16 	homestead property for property tax purposes in the calendar
22.17 	year in which the recipient dies.  For purposes of this
22.18 	exemption, real property the recipient and their surviving joint
22.19 	tenant spouse purchase solely with the proceeds from the sale of
22.20 	their prior homestead, own of record as joint tenants, and
22.21 	qualify as homestead property under section 273.124 in the
22.22 	calendar year in which the recipient dies and prior to the
22.23 	recipient's death shall be deemed to be real property classified
22.24 	and taxed to the recipient and their surviving joint tenant
22.25 	spouse as homestead property in the calendar year in which the
22.26 	recipient dies.  The surviving spouse, or any person with
22.27 	personal knowledge of the facts, may provide an affidavit
22.28 	describing the homestead property affected by this clause and
22.29 	stating facts showing compliance with this clause.  The
22.30 	affidavit shall be prima facie evidence of the facts it states.
22.31 	
EFFECTIVE DATE. This section is effective retroactively
22.32 	from August 1, 2003.

22.33 	Sec. 13. Minnesota Statutes 2004, section 524.3-805, is
22.34 	amended to read:
22.35 	524.3-805 CLASSIFICATION OF CLAIMS.
22.36 	(a) If the applicable assets of the estate are insufficient
23.1 	to pay all claims in full, the personal representative shall
23.2 	make payment in the following order:
23.3 	(1) costs and expenses of administration;
23.4 	(2) reasonable funeral expenses;
23.5 	(3) debts and taxes with preference under federal law;
23.6 	(4) reasonable and necessary medical, hospital, or nursing
23.7 	home expenses of the last illness of the decedent, including
23.8 	compensation of persons attending the decedent, a claim filed
23.9 	under section 256B.15 for recovery of expenditures for
23.10 	alternative care for nonmedical assistance recipients under
23.11 	section 256B.0913,and including a claim filed pursuant to
23.12 	section 256B.15;
23.13 	(5) reasonable and necessary medical, hospital, and nursing
23.14 	home expenses for the care of the decedent during the year
23.15 	immediately preceding death;
23.16 	(6) debts with preference under other laws of this state,
23.17 	and state taxes;
23.18 	(7) all other claims.
23.19 	(b) No preference shall be given in the payment of any
23.20 	claim over any other claim of the same class, and a claim due
23.21 	and payable shall not be entitled to a preference over claims
23.22 	not due, except that if claims for expenses of the last illness
23.23 	involve only claims filed under section 256B.15 for recovery of
23.24 	expenditures for alternative care for nonmedical assistance
23.25 	recipients under section 256B.0913, section 246.53 for costs of
23.26 	state hospital care and claims filed under section 256B.15,
23.27 	claims filed to recover expenditures for alternative care for
23.28 	nonmedical assistance recipients under section 256B.0913 shall
23.29 	have preference over claims filed under both sections 246.53 and
23.30 	other claims filed under section 256B.15, and .Claims filed
23.31 	under section 246.53 have preference over claims filed under
23.32 	section 256B.15for recovery of amounts other than those for
23.33 	expenditures for alternative care for nonmedical assistance
23.34 	recipients under section 256B.0913.

23.35 	EFFECTIVE DATE. This section is effective retroactively
23.36 	from July 1, 2003, for decedents dying on or after that date.

24.1 	Sec. 14. REFUNDS; NOTICES, AND IMMUNITY.
 24.2 	(a) The commissioner of human services and any county
24.3 	agency that, after a recipient's death, has collected any sum
24.4 	(1) from the estate of a recipient of alternative case services,
24.5 	or (2) attributable to a life estate or joint tenancy interest
24.6 	in real estate that was continued after the death of the
24.7 	recipient, shall promptly refund the amount collected to the
24.8 	person or persons who paid the amount collected, in proportion
24.9 	to each person's contribution to the amount.
24.10 	(b) If the commissioner determines a person entitled to a
24.11 	refund is dead, the commissioner shall pay the refund to the
24.12 	person's estate if it is open, or to their heirs or devisees as
24.13 	finally determined in any completed probate proceedings or under
24.14 	a final decree of descent.  In all other cases, the refund shall
24.15 	be deemed to be abandoned property and the commissioner shall
24.16 	pay and deliver the refund to the commissioner of commerce.  The
24.17 	commissioner of commerce shall administer and dispose of the
24.18 	refund in accordance with Minnesota Statutes, sections 345.42
24.19 	through 345.60.  The commissioner of human services shall not be
24.20 	liable to anyone with respect to the refund after paying or
24.21 	delivering the refund as provided for in this paragraph.
24.22 	(c) Lien notices of record against life estate or joint
24.23 	tenancy interests filed on and after August 1, 2003, shall have
24.24 	no effect and shall not constitute record notice after the death
24.25 	of the person named in the lien or notice unless continued after
24.26 	that time by the terms of the instrument creating the interest,
24.27 	shall be disregarded by examiners of title, and shall not be
24.28 	carried forward to subsequent certificates of title.
24.29 	(d) The commissioner of human services, county agencies,
24.30 	elected officials, and their employees are immune from all
24.31 	liability for actions taken or not taken in accordance with Laws
24.32 	2003, First Special Session chapter 14, article 2, sections 47
24.33 	to 52; article 12, sections 40 to 52 and 90; and sections 1 to
24.34 	14 of this act.

24.35 	EFFECTIVE DATE. This section is effective the day
24.36 	following final enactment.

25.1 	Sec. 15. APPROPRIATIONS.
 25.2 	$....... is appropriated from the general fund to the
25.3 	commissioner of human services for fiscal years 2004 and 2005
25.4 	for the purposes of sections 1 to 14.  $....... is appropriated
25.5 	from the general fund to the commissioner of human services for
25.6 	fiscal years 2006 and 2007 for the purposes of sections 1 to 14.

25.7 	Sec. 16. REPEALER.
 25.8 	Minnesota Statutes 2004, sections 256B.15, subdivision 1g;
25.9 	514.991; 514.992; 514.993; 514.994; and 514.995, are repealed
25.10 	retroactively from July 1, 2003.