Connecticut 2022 2022 Regular Session

Connecticut House Bill HB05226 Comm Sub / Bill

Filed 04/20/2022

                     
 
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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statutes is repealed and the following is substituted in lieu thereof 2 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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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 
 
 
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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  
FIN Joint Favorable