LCO 1457 \\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05226-R01- HB.docx 1 of 9 General Assembly Raised Bill No. 5226 February Session, 2022 LCO No. 1457 Referred to Committee on HUMAN SERVICES Introduced by: (HS) AN ACT LIMITING STATE RECOVERY OF PUBLIC ASSISTANCE PAYMENTS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 17b-93 of the 2022 supplement to the general 1 statutes is repealed and the following is substituted in lieu thereof 2 (Effective July 1, 2022): 3 (a) If a beneficiary of aid under the state supplement program, 4 medical assistance program, aid to families with dependent children 5 program, temporary family assistance program or state-administered 6 general assistance program has or acquires property of any kind or 7 interest in any property, estate or claim of any kind, except moneys 8 received for the replacement of real or personal property, the state of 9 Connecticut shall have a claim subject to subsections (b) and (c) of this 10 section, which shall have priority over all other unsecured claims and 11 unrecorded encumbrances, against such beneficiary for the amount 12 paid, subject to the provisions of section 17b-94, as amended by this act, 13 to the beneficiary or on the beneficiary's behalf under said programs but 14 only to the extent that the state is required to recover such amount under 15 Raised Bill No. 5226 LCO 1457 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05226- R01-HB.docx } 2 of 9 federal law. [; and, in] In addition thereto, the parents of an aid to 16 dependent children beneficiary, a state-administered general assistance 17 beneficiary or a temporary family assistance beneficiary shall be liable 18 to repay, subject to the provisions of section 17b-94, as amended by this 19 act, to the state the full amount of any such aid paid to or on behalf of 20 either parent, his or her spouse, and his or her dependent child or 21 children, as defined in section 17b-75, but only to the extent that the state 22 is required to recover such amount under federal law. The state of 23 Connecticut shall have a lien against property of any kind or interest in 24 any property, estate or claim of any kind of the parents of an aid to 25 dependent children, temporary family assistance or state administered 26 general assistance beneficiary, in addition and not in substitution of any 27 other state claim, for amounts owing under any order for support of any 28 court or any family support magistrate, including any arrearage under 29 such order, provided household goods and other personal property 30 identified in section 52-352b, real property pursuant to section 17b-79, 31 as long as such property is used as a home for the beneficiary and money 32 received for the replacement of real or personal property, shall be 33 exempt from such lien. 34 (b) Any person who received cash benefits under the aid to families 35 with dependent children program, the temporary family assistance 36 program or the state-administered general assistance program, when 37 such person was under eighteen years of age, shall not be liable to repay 38 the state for such assistance. 39 (c) No claim, except a claim required to be made under federal law, 40 shall be made, or lien applied, against any payment made pursuant to 41 chapter 135, any payment made pursuant to section 47-88d or 47-287, 42 any moneys received as a settlement or award in a housing or 43 employment or public accommodation discrimination case or in any 44 action brought by a tenant or occupant or former tenant or occupant 45 against an owner or lessor of a residential premises or manufactured 46 mobile home park, any court-ordered retroactive rent abatement, 47 including any made pursuant to subsection (e) of section 47a-14h or 48 Raised Bill No. 5226 LCO 1457 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05226- R01-HB.docx } 3 of 9 section 47a-4a, 47a-5 or 47a-57, or any security deposit refund pursuant 49 to subsection (d) of section 47a-21 paid to a beneficiary of assistance 50 under the state supplement program, medical assistance program, aid 51 to families with dependent children program, temporary family 52 assistance program or state-administered general assistance program or 53 paid to any person who has been supported wholly, or in part, by the 54 state, in accordance with section 17b-223, in a humane institution. 55 (d) Notwithstanding any provision of the general statutes, whenever 56 funds are collected pursuant to this section or section 17b-94, as 57 amended by this act, and the person who otherwise would have been 58 entitled to such funds is subject to a court-ordered current or arrearage 59 child support payment obligation in a IV-D support case, such funds 60 shall first be paid to the state for reimbursement of Medicaid funds 61 granted to such person for medical expenses incurred for injuries related 62 to a legal claim by such person which was the subject of the state's lien 63 and such funds shall then be paid to the Office of Child Support Services 64 for distribution pursuant to the federally mandated child support 65 distribution system implemented pursuant to subsection (j) of section 66 17b-179. The remainder, if any, shall be paid to the state for payment of 67 previously provided assistance through the state supplement program, 68 medical assistance program, aid to families with dependent children 69 program, temporary family assistance program or state-administered 70 general assistance program but only to the extent that the state is 71 required to recover such assistance under federal law. 72 (e) The Commissioner of Social Services shall adopt regulations, in 73 accordance with chapter 54, establishing criteria and procedures for 74 adjustment of the claim of the state of Connecticut under subsection (a) 75 of this section. The purpose of any such adjustment shall be to 76 encourage the positive involvement of noncustodial parents in the lives 77 of their children and to encourage noncustodial parents to begin making 78 regular support payments. 79 (f) On and after July 1, [2021] 2022, the state shall not recover cash 80 assistance or medical assistance from a lien filed on any real property, 81 Raised Bill No. 5226 LCO 1457 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05226- R01-HB.docx } 4 of 9 or a claim filed against property, a property interest or estate or claim of 82 any kind, unless the state is required to recover such assistance under 83 federal law or the provisions of this section. Any lien on real property 84 or state claim against property, a property interest or estate or claim of 85 any kind filed under this section by or on behalf of the state prior to July 86 1, [2021] 2022, shall be deemed released by the state if the recovery of 87 such assistance is not required under federal law or the provisions of 88 this section. As used in this subsection, "cash assistance" means 89 payments made to a beneficiary of the aid to families with dependent 90 children program, the state-administered general assistance program, 91 the state supplement program or the temporary family assistance 92 program. 93 Sec. 2. Section 17b-94 of the 2022 supplement to the general statutes 94 is repealed and the following is substituted in lieu thereof (Effective July 95 1, 2022): 96 (a) In the case of causes of action of beneficiaries of aid under the state 97 supplement program, medical assistance program, aid to families with 98 dependent children program, temporary family assistance program or 99 state-administered general assistance program, subject to subsections 100 (b) and (c) of section 17b-93, as amended by this act, or of a parent liable 101 to repay the state under the provisions of section 17b-93, as amended by 102 this act, the claim of the state shall be a lien against the proceeds 103 therefrom in the amount of the assistance paid but only to the extent that 104 the state is required to recover such assistance under federal law, or, in 105 the case of a parent subject to any order for support of any court or any 106 family support magistrate, including any arrearage under such order, 107 liable to repay the state under the provisions of section 17b-93, as 108 amended by this act, whose proceeds from the cause of action are not 109 subject to recovery under federal law, fifty per cent of the proceeds 110 received by such parent or the amount owed by such parent after 111 payment of all expenses connected with the cause of action, whichever 112 is less, for repayment under section 17b-93, as amended by this act, and 113 shall have priority over all other claims except attorney's fees for said 114 Raised Bill No. 5226 LCO 1457 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05226- R01-HB.docx } 5 of 9 causes, expenses of suit, costs of hospitalization connected with the 115 cause of action by whomever paid over and above hospital insurance or 116 other such benefits, and, for such period of hospitalization as was not 117 paid for by the state, physicians' fees for services during any such period 118 as are connected with the cause of action over and above medical 119 insurance or other such benefits. The proceeds of such causes of action 120 shall be assignable to the state for payment of the amount due under 121 this section and section 17b-93, as amended by this act, irrespective of 122 any other provision of law. Upon presentation to the attorney for the 123 beneficiary of an assignment of such proceeds executed by the 124 beneficiary or his conservator or guardian, such assignment shall 125 constitute an irrevocable direction to the attorney to pay the 126 Commissioner of Administrative Services in accordance with its terms, 127 except if, after settlement of the cause of action or judgment thereon, the 128 Commissioner of Administrative Services does not inform the attorney 129 for the beneficiary of the amount of lien which is to be paid to the 130 Commissioner of Administrative Services within forty-five days of 131 receipt of the written request of such attorney for such information, such 132 attorney may distribute such proceeds to such beneficiary and shall not 133 be liable for any loss the state may sustain thereby. 134 (b) In the case of an inheritance of an estate by a beneficiary of aid 135 under the state supplement program, medical assistance program, aid 136 to families with dependent children program, temporary family 137 assistance program or state-administered general assistance program, 138 subject to subsections (b) and (c) of section 17b-93, as amended by this 139 act, or [by a parent] by the parent of such beneficiary, liable to repay the 140 state under the provisions of section 17b-93, as amended by this act, the 141 amount of such assets equal to the amount of assistance paid but only 142 to the extent that the state is required to recover such amount under 143 federal law, or in the case of a parent subject to any order for support of 144 any court or any family support magistrate, including any arrearage 145 under such order, and liable to repay the state under the provisions of 146 section 17b-93, as amended by this act, whose inheritance is not subject 147 to recovery under federal law, fifty per cent of the assets of the estate 148 Raised Bill No. 5226 LCO 1457 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05226- R01-HB.docx } 6 of 9 payable to such parent, or the amount owed by such parent, whichever 149 is less, shall be assignable to the state for payment of the amount due 150 under section 17b-93, as amended by this act. The state shall have a lien 151 against such assets in the applicable amount specified in this subsection. 152 The Court of Probate shall accept any such assignment executed by the 153 beneficiary or parent or any such lien notice if such assignment or lien 154 notice is filed by the Commissioner of Administrative Services with the 155 court prior to the distribution of such inheritance, and to the extent of 156 such inheritance not already distributed, the court shall order 157 distribution in accordance with such assignment or lien notice. If the 158 Commissioner of Administrative Services receives any assets of an 159 estate pursuant to any such assignment, the commissioner shall be 160 subject to the same duties and liabilities concerning such assigned assets 161 as the beneficiary or parent. 162 (c) On and after July 1, [2021] 2022, the state shall not recover cash 163 assistance or medical assistance from a claim filed on any property, 164 property interest, proceeds from a cause of action or estate, unless the 165 state is required to recover such assistance under federal law or the 166 provisions of section 17b-93, as amended by this act. Any claim filed 167 under this section by or on behalf of the state on such property, property 168 interest, proceeds from a cause of action or estate prior to July 1, [2021] 169 2022, shall be released by the state if the recovery of such assistance is 170 not required under federal law or the provisions of section 17b-93, as 171 amended by this act. As used in this subsection, "cash assistance" means 172 payments made to a beneficiary of the aid to families with dependent 173 children program, the state-administered general assistance program, 174 the state supplement program or the temporary family assistance 175 program. 176 Sec. 3. Section 17b-95 of the 2022 supplement to the general statutes 177 is repealed and the following is substituted in lieu thereof (Effective July 178 1, 2022): 179 (a) Subject to the provisions of subsection (b) of this section, upon the 180 death of a parent of a child who has, at any time, been a beneficiary 181 Raised Bill No. 5226 LCO 1457 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05226- R01-HB.docx } 7 of 9 under the program of aid to families with dependent children, the 182 temporary family assistance program or the state-administered general 183 assistance program, or upon the death of any person who has at any 184 time been a beneficiary of aid under the state supplement program, 185 medical assistance program, aid to families with dependent children 186 program, temporary family assistance program or state-administered 187 general assistance program, except as provided in subsection (b) of 188 section 17b-93, as amended by this act, the state shall have a claim 189 against such parent's or person's estate for all amounts paid on behalf of 190 each such child but only to the extent that the state is required to recover 191 such amounts under federal law, or the provisions of section 17b-93, as 192 amended by this act, or for the support of either parent or such child or 193 such person under the state supplement program, medical assistance 194 program, aid to families with dependent children program, temporary 195 family assistance program or state-administered general assistance 196 program for which the state has not been reimbursed and that the state 197 is required to recover under federal law or the provisions of section 17b-198 93, as amended by this act, to the extent that the amount which the 199 surviving spouse, parent or dependent children of the decedent would 200 otherwise take from such estate is not needed for their support. 201 Notwithstanding the provisions of this subsection, effective for services 202 provided on or after January 1, 2014, no state claim pursuant to this 203 section shall be made against the estate of a recipient of medical 204 assistance under the Medicaid Coverage for the Lowest Income 205 Populations program, established pursuant to Section 206 1902(a)(10)(A)(i)(VIII) of the Social Security Act, as amended from time 207 to time, except to the extent required by federal law. 208 (b) In the case of any person dying after October 1, 1959, the claim for 209 medical payments, even though such payments were made prior 210 thereto, shall be restricted to medical disbursements actually made for 211 care of such deceased beneficiary. 212 (c) Claims pursuant to this section shall have priority over all 213 unsecured claims against such estate, except (1) expenses of last sickness 214 Raised Bill No. 5226 LCO 1457 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05226- R01-HB.docx } 8 of 9 not to exceed three hundred seventy-five dollars, (2) funeral and burial 215 expenses in accordance with sections 17b-84 and 17b-131, and (3) 216 administrative expenses, including probate fees and taxes, and 217 including fiduciary fees not exceeding the following commissions on the 218 value of the whole estates accounted for by such fiduciaries: On the first 219 two thousand dollars or portion thereof, five per cent; on the next eight 220 thousand dollars or portion thereof, four per cent; on the excess over ten 221 thousand dollars, three per cent. Upon petition by any fiduciary, the 222 Probate Court, after a hearing thereon, may authorize compensation in 223 excess of the above schedule for extraordinary services. Notice of any 224 such petition and hearing shall be given to the Commissioner of 225 Administrative Services in Hartford at least ten days in advance of such 226 hearing. The allowable funeral and burial payment herein shall be 227 reduced by the amount of any prepaid funeral arrangement. Any 228 amount paid from the estate under this section to any person which 229 exceeds the limits provided herein shall be repaid to the estate by such 230 person, and such amount may be recovered in a civil action with interest 231 at six per cent from the date of demand. 232 (d) For purposes of this section, all sums due on or after July 1, 2003, 233 to any individual after the death of a public assistance beneficiary 234 pursuant to the terms of an annuity contract purchased at any time with 235 assets of a public assistance beneficiary, shall be deemed to be part of 236 the estate of the deceased beneficiary and shall be payable to the state 237 by the recipient of such annuity payments to the extent necessary to 238 achieve full reimbursement of any public assistance benefits paid to, or 239 on behalf of, the deceased beneficiary but only to the extent that the state 240 is required to recover such benefits under federal law or for support 241 payments due from parents under the provisions of section 17b-93, as 242 amended by this act, irrespective of any provision of law. The recipient 243 of beneficiary payments from any such annuity contract shall be solely 244 liable to the state of Connecticut for reimbursement of public assistance 245 benefits paid to, or on behalf of, the deceased beneficiary but only to the 246 extent that the state is required to recover such benefits under federal 247 law or for support payments due from parents under the provisions of 248 Raised Bill No. 5226 LCO 1457 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2022HB-05226- R01-HB.docx } 9 of 9 section 17b-93, as amended by this act, to the extent of any payments 249 received by such recipient pursuant to the annuity contract. 250 (e) On and after July 1, [2021] 2022, the state shall not recover cash 251 assistance or medical assistance from a claim filed on any property, 252 property interest, proceeds from a cause of action or estate, unless the 253 state is required to recover such assistance under federal law or the 254 provisions of section 17b-93, as amended by this act. Any claim filed 255 under this section by or on behalf of the state on such property, property 256 interest, proceeds from a cause of action or estate prior to July 1, [2021] 257 2022, shall be released by the state if the recovery of such assistance is 258 not required under federal law or the provisions of section 17b-93, as 259 amended by this act. As used in this subsection, "cash assistance" means 260 payments made to a beneficiary of the aid to families with dependent 261 children program, the state-administered general assistance program, 262 the state supplement program or the temporary family assistance 263 program. 264 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2022 17b-93 Sec. 2 July 1, 2022 17b-94 Sec. 3 July 1, 2022 17b-95 HS Joint Favorable