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OLR Bill Analysis
HB 5226
AN ACT LIMITING STATE RECOVERY OF PUBLIC ASSISTANCE
PAYMENTS.
SUMMARY
This bill generally limits the state’s claim to recover certain types of
public assistance from liable parents of beneficiaries to amounts federal
law requires the state to recover.
Under current law, when children receive or have received cash
assistance benefits under Aid to Families with Dependent Children
(AFDC), Temporary Family Assistance (TFA, which replaced AFDC), or
State-Administered General Assistance (SAGA), their parents are
generally liable to the state for the full amount of aid paid to or on behalf
of either parent, their spouses, and dependent children. Under the bill,
parents are only liable for amounts federal law requires the state to
recover. The bill makes conforming changes to the state’s claim and
ability to recover assistance (1) when parents receive windfalls through
lawsuit proceeds or inheritances and (2) through annuity contracts
when a beneficiary dies. Existing law, unchanged by the bill, also gives
the state a claim for any child support these parents owe or any child
support arrearage.
Beginning July 1, 2022, the bill prohibits the state from recovering
cash and medical assistance from a lien filed on any property or
property interest, including windfalls, unless the state is required to
recover such assistance under federal law or for child support
payments. The bill also requires the state to release any lien on real
property or any claim previously filed to recover public assistance that
is not required under the bill.
More broadly, when a beneficiary of aid under the State Supplement
Program, Medicaid, AFDC, TFA, or SAGA acquires property or interest 2022HB-05226-R000063-BA.DOCX
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in property, current law gives the state a claim for the amount of
assistance paid that the state is required to recover under federal law.
The bill clarifies that the state’s claim is only to the extent that federal
law requires the state to recover the amount. The bill makes conforming
changes in provisions on recovery of lawsuit proceeds and inheritances,
estate recovery, and annuities.
EFFECTIVE DATE: July 1, 2022
WINDFALLS
Under current law, when a liable parent of an AFDC, TFA, or SAGA
beneficiary receives a windfall from a lawsuit or inheritance, and the
windfall is not subject to recovery under federal law, the state’s claim
for both public assistance recoveries and child support payments is
capped at (1) 50% of the lawsuit proceeds or inheritance received by the
parent or (2) the amount the parent owes, whichever is less. The bill
limits this provision to only apply to the state’s claim for child support
payments.
COMMITTEE ACTION
Human Services Committee
Joint Favorable
Yea 19 Nay 1 (03/08/2022)