Connecticut 2022 Regular Session

Connecticut House Bill HB05226 Compare Versions

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77 General Assembly Raised Bill No. 5226
88 February Session, 2022
99 LCO No. 1457
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1212 Referred to Committee on HUMAN SERVICES
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1515 Introduced by:
1616 (HS)
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2020 AN ACT LIMITING STATE RECOVERY OF PUBLIC ASSISTANCE
2121 PAYMENTS.
2222 Be it enacted by the Senate and House of Representatives in General
2323 Assembly convened:
2424
2525 Section 1. Section 17b-93 of the 2022 supplement to the general 1
2626 statutes is repealed and the following is substituted in lieu thereof 2
2727 (Effective July 1, 2022): 3
2828 (a) If a beneficiary of aid under the state supplement program, 4
2929 medical assistance program, aid to families with dependent children 5
3030 program, temporary family assistance program or state-administered 6
3131 general assistance program has or acquires property of any kind or 7
3232 interest in any property, estate or claim of any kind, except moneys 8
3333 received for the replacement of real or personal property, the state of 9
3434 Connecticut shall have a claim subject to subsections (b) and (c) of this 10
3535 section, which shall have priority over all other unsecured claims and 11
3636 unrecorded encumbrances, against such beneficiary for the amount 12
3737 paid, subject to the provisions of section 17b-94, as amended by this act, 13
3838 to the beneficiary or on the beneficiary's behalf under said programs but 14
3939 only to the extent that the state is required to recover such amount under 15 Raised Bill No. 5226
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4646 federal law. [; and, in] In addition thereto, the parents of an aid to 16
4747 dependent children beneficiary, a state-administered general assistance 17
4848 beneficiary or a temporary family assistance beneficiary shall be liable 18
4949 to repay, subject to the provisions of section 17b-94, as amended by this 19
5050 act, to the state the full amount of any such aid paid to or on behalf of 20
5151 either parent, his or her spouse, and his or her dependent child or 21
5252 children, as defined in section 17b-75, but only to the extent that the state 22
5353 is required to recover such amount under federal law. The state of 23
5454 Connecticut shall have a lien against property of any kind or interest in 24
5555 any property, estate or claim of any kind of the parents of an aid to 25
5656 dependent children, temporary family assistance or state administered 26
5757 general assistance beneficiary, in addition and not in substitution of any 27
5858 other state claim, for amounts owing under any order for support of any 28
5959 court or any family support magistrate, including any arrearage under 29
6060 such order, provided household goods and other personal property 30
6161 identified in section 52-352b, real property pursuant to section 17b-79, 31
6262 as long as such property is used as a home for the beneficiary and money 32
6363 received for the replacement of real or personal property, shall be 33
6464 exempt from such lien. 34
6565 (b) Any person who received cash benefits under the aid to families 35
6666 with dependent children program, the temporary family assistance 36
6767 program or the state-administered general assistance program, when 37
6868 such person was under eighteen years of age, shall not be liable to repay 38
6969 the state for such assistance. 39
7070 (c) No claim, except a claim required to be made under federal law, 40
7171 shall be made, or lien applied, against any payment made pursuant to 41
7272 chapter 135, any payment made pursuant to section 47-88d or 47-287, 42
7373 any moneys received as a settlement or award in a housing or 43
7474 employment or public accommodation discrimination case or in any 44
7575 action brought by a tenant or occupant or former tenant or occupant 45
7676 against an owner or lessor of a residential premises or manufactured 46
7777 mobile home park, any court-ordered retroactive rent abatement, 47
7878 including any made pursuant to subsection (e) of section 47a-14h or 48 Raised Bill No. 5226
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8585 section 47a-4a, 47a-5 or 47a-57, or any security deposit refund pursuant 49
8686 to subsection (d) of section 47a-21 paid to a beneficiary of assistance 50
8787 under the state supplement program, medical assistance program, aid 51
8888 to families with dependent children program, temporary family 52
8989 assistance program or state-administered general assistance program or 53
9090 paid to any person who has been supported wholly, or in part, by the 54
9191 state, in accordance with section 17b-223, in a humane institution. 55
9292 (d) Notwithstanding any provision of the general statutes, whenever 56
9393 funds are collected pursuant to this section or section 17b-94, as 57
9494 amended by this act, and the person who otherwise would have been 58
9595 entitled to such funds is subject to a court-ordered current or arrearage 59
9696 child support payment obligation in a IV-D support case, such funds 60
9797 shall first be paid to the state for reimbursement of Medicaid funds 61
9898 granted to such person for medical expenses incurred for injuries related 62
9999 to a legal claim by such person which was the subject of the state's lien 63
100100 and such funds shall then be paid to the Office of Child Support Services 64
101101 for distribution pursuant to the federally mandated child support 65
102102 distribution system implemented pursuant to subsection (j) of section 66
103103 17b-179. The remainder, if any, shall be paid to the state for payment of 67
104104 previously provided assistance through the state supplement program, 68
105105 medical assistance program, aid to families with dependent children 69
106106 program, temporary family assistance program or state-administered 70
107107 general assistance program but only to the extent that the state is 71
108108 required to recover such assistance under federal law. 72
109109 (e) The Commissioner of Social Services shall adopt regulations, in 73
110110 accordance with chapter 54, establishing criteria and procedures for 74
111111 adjustment of the claim of the state of Connecticut under subsection (a) 75
112112 of this section. The purpose of any such adjustment shall be to 76
113113 encourage the positive involvement of noncustodial parents in the lives 77
114114 of their children and to encourage noncustodial parents to begin making 78
115115 regular support payments. 79
116116 (f) On and after July 1, [2021] 2022, the state shall not recover cash 80
117117 assistance or medical assistance from a lien filed on any real property, 81 Raised Bill No. 5226
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124124 or a claim filed against property, a property interest or estate or claim of 82
125125 any kind, unless the state is required to recover such assistance under 83
126126 federal law or the provisions of this section. Any lien on real property 84
127127 or state claim against property, a property interest or estate or claim of 85
128128 any kind filed under this section by or on behalf of the state prior to July 86
129129 1, [2021] 2022, shall be deemed released by the state if the recovery of 87
130130 such assistance is not required under federal law or the provisions of 88
131131 this section. As used in this subsection, "cash assistance" means 89
132132 payments made to a beneficiary of the aid to families with dependent 90
133133 children program, the state-administered general assistance program, 91
134134 the state supplement program or the temporary family assistance 92
135135 program. 93
136136 Sec. 2. Section 17b-94 of the 2022 supplement to the general statutes 94
137137 is repealed and the following is substituted in lieu thereof (Effective July 95
138138 1, 2022): 96
139139 (a) In the case of causes of action of beneficiaries of aid under the state 97
140140 supplement program, medical assistance program, aid to families with 98
141141 dependent children program, temporary family assistance program or 99
142142 state-administered general assistance program, subject to subsections 100
143143 (b) and (c) of section 17b-93, as amended by this act, or of a parent liable 101
144144 to repay the state under the provisions of section 17b-93, as amended by 102
145145 this act, the claim of the state shall be a lien against the proceeds 103
146146 therefrom in the amount of the assistance paid but only to the extent that 104
147147 the state is required to recover such assistance under federal law, or, in 105
148148 the case of a parent subject to any order for support of any court or any 106
149149 family support magistrate, including any arrearage under such order, 107
150150 liable to repay the state under the provisions of section 17b-93, as 108
151151 amended by this act, whose proceeds from the cause of action are not 109
152152 subject to recovery under federal law, fifty per cent of the proceeds 110
153153 received by such parent or the amount owed by such parent after 111
154154 payment of all expenses connected with the cause of action, whichever 112
155155 is less, for repayment under section 17b-93, as amended by this act, and 113
156156 shall have priority over all other claims except attorney's fees for said 114 Raised Bill No. 5226
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163163 causes, expenses of suit, costs of hospitalization connected with the 115
164164 cause of action by whomever paid over and above hospital insurance or 116
165165 other such benefits, and, for such period of hospitalization as was not 117
166166 paid for by the state, physicians' fees for services during any such period 118
167167 as are connected with the cause of action over and above medical 119
168168 insurance or other such benefits. The proceeds of such causes of action 120
169169 shall be assignable to the state for payment of the amount due under 121
170170 this section and section 17b-93, as amended by this act, irrespective of 122
171171 any other provision of law. Upon presentation to the attorney for the 123
172172 beneficiary of an assignment of such proceeds executed by the 124
173173 beneficiary or his conservator or guardian, such assignment shall 125
174174 constitute an irrevocable direction to the attorney to pay the 126
175175 Commissioner of Administrative Services in accordance with its terms, 127
176176 except if, after settlement of the cause of action or judgment thereon, the 128
177177 Commissioner of Administrative Services does not inform the attorney 129
178178 for the beneficiary of the amount of lien which is to be paid to the 130
179179 Commissioner of Administrative Services within forty-five days of 131
180180 receipt of the written request of such attorney for such information, such 132
181181 attorney may distribute such proceeds to such beneficiary and shall not 133
182182 be liable for any loss the state may sustain thereby. 134
183183 (b) In the case of an inheritance of an estate by a beneficiary of aid 135
184184 under the state supplement program, medical assistance program, aid 136
185185 to families with dependent children program, temporary family 137
186186 assistance program or state-administered general assistance program, 138
187187 subject to subsections (b) and (c) of section 17b-93, as amended by this 139
188188 act, or [by a parent] by the parent of such beneficiary, liable to repay the 140
189189 state under the provisions of section 17b-93, as amended by this act, the 141
190190 amount of such assets equal to the amount of assistance paid but only 142
191191 to the extent that the state is required to recover such amount under 143
192192 federal law, or in the case of a parent subject to any order for support of 144
193193 any court or any family support magistrate, including any arrearage 145
194194 under such order, and liable to repay the state under the provisions of 146
195195 section 17b-93, as amended by this act, whose inheritance is not subject 147
196196 to recovery under federal law, fifty per cent of the assets of the estate 148 Raised Bill No. 5226
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203203 payable to such parent, or the amount owed by such parent, whichever 149
204204 is less, shall be assignable to the state for payment of the amount due 150
205205 under section 17b-93, as amended by this act. The state shall have a lien 151
206206 against such assets in the applicable amount specified in this subsection. 152
207207 The Court of Probate shall accept any such assignment executed by the 153
208208 beneficiary or parent or any such lien notice if such assignment or lien 154
209209 notice is filed by the Commissioner of Administrative Services with the 155
210210 court prior to the distribution of such inheritance, and to the extent of 156
211211 such inheritance not already distributed, the court shall order 157
212212 distribution in accordance with such assignment or lien notice. If the 158
213213 Commissioner of Administrative Services receives any assets of an 159
214214 estate pursuant to any such assignment, the commissioner shall be 160
215215 subject to the same duties and liabilities concerning such assigned assets 161
216216 as the beneficiary or parent. 162
217217 (c) On and after July 1, [2021] 2022, the state shall not recover cash 163
218218 assistance or medical assistance from a claim filed on any property, 164
219219 property interest, proceeds from a cause of action or estate, unless the 165
220220 state is required to recover such assistance under federal law or the 166
221221 provisions of section 17b-93, as amended by this act. Any claim filed 167
222222 under this section by or on behalf of the state on such property, property 168
223223 interest, proceeds from a cause of action or estate prior to July 1, [2021] 169
224224 2022, shall be released by the state if the recovery of such assistance is 170
225225 not required under federal law or the provisions of section 17b-93, as 171
226226 amended by this act. As used in this subsection, "cash assistance" means 172
227227 payments made to a beneficiary of the aid to families with dependent 173
228228 children program, the state-administered general assistance program, 174
229229 the state supplement program or the temporary family assistance 175
230230 program. 176
231231 Sec. 3. Section 17b-95 of the 2022 supplement to the general statutes 177
232232 is repealed and the following is substituted in lieu thereof (Effective July 178
233233 1, 2022): 179
234234 (a) Subject to the provisions of subsection (b) of this section, upon the 180
235235 death of a parent of a child who has, at any time, been a beneficiary 181 Raised Bill No. 5226
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242242 under the program of aid to families with dependent children, the 182
243243 temporary family assistance program or the state-administered general 183
244244 assistance program, or upon the death of any person who has at any 184
245245 time been a beneficiary of aid under the state supplement program, 185
246246 medical assistance program, aid to families with dependent children 186
247247 program, temporary family assistance program or state-administered 187
248248 general assistance program, except as provided in subsection (b) of 188
249249 section 17b-93, as amended by this act, the state shall have a claim 189
250250 against such parent's or person's estate for all amounts paid on behalf of 190
251251 each such child but only to the extent that the state is required to recover 191
252252 such amounts under federal law, or the provisions of section 17b-93, as 192
253253 amended by this act, or for the support of either parent or such child or 193
254254 such person under the state supplement program, medical assistance 194
255255 program, aid to families with dependent children program, temporary 195
256256 family assistance program or state-administered general assistance 196
257257 program for which the state has not been reimbursed and that the state 197
258258 is required to recover under federal law or the provisions of section 17b-198
259259 93, as amended by this act, to the extent that the amount which the 199
260260 surviving spouse, parent or dependent children of the decedent would 200
261261 otherwise take from such estate is not needed for their support. 201
262262 Notwithstanding the provisions of this subsection, effective for services 202
263263 provided on or after January 1, 2014, no state claim pursuant to this 203
264264 section shall be made against the estate of a recipient of medical 204
265265 assistance under the Medicaid Coverage for the Lowest Income 205
266266 Populations program, established pursuant to Section 206
267267 1902(a)(10)(A)(i)(VIII) of the Social Security Act, as amended from time 207
268268 to time, except to the extent required by federal law. 208
269269 (b) In the case of any person dying after October 1, 1959, the claim for 209
270270 medical payments, even though such payments were made prior 210
271271 thereto, shall be restricted to medical disbursements actually made for 211
272272 care of such deceased beneficiary. 212
273273 (c) Claims pursuant to this section shall have priority over all 213
274274 unsecured claims against such estate, except (1) expenses of last sickness 214 Raised Bill No. 5226
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281281 not to exceed three hundred seventy-five dollars, (2) funeral and burial 215
282282 expenses in accordance with sections 17b-84 and 17b-131, and (3) 216
283283 administrative expenses, including probate fees and taxes, and 217
284284 including fiduciary fees not exceeding the following commissions on the 218
285285 value of the whole estates accounted for by such fiduciaries: On the first 219
286286 two thousand dollars or portion thereof, five per cent; on the next eight 220
287287 thousand dollars or portion thereof, four per cent; on the excess over ten 221
288288 thousand dollars, three per cent. Upon petition by any fiduciary, the 222
289289 Probate Court, after a hearing thereon, may authorize compensation in 223
290290 excess of the above schedule for extraordinary services. Notice of any 224
291291 such petition and hearing shall be given to the Commissioner of 225
292292 Administrative Services in Hartford at least ten days in advance of such 226
293293 hearing. The allowable funeral and burial payment herein shall be 227
294294 reduced by the amount of any prepaid funeral arrangement. Any 228
295295 amount paid from the estate under this section to any person which 229
296296 exceeds the limits provided herein shall be repaid to the estate by such 230
297297 person, and such amount may be recovered in a civil action with interest 231
298298 at six per cent from the date of demand. 232
299299 (d) For purposes of this section, all sums due on or after July 1, 2003, 233
300300 to any individual after the death of a public assistance beneficiary 234
301301 pursuant to the terms of an annuity contract purchased at any time with 235
302302 assets of a public assistance beneficiary, shall be deemed to be part of 236
303303 the estate of the deceased beneficiary and shall be payable to the state 237
304304 by the recipient of such annuity payments to the extent necessary to 238
305305 achieve full reimbursement of any public assistance benefits paid to, or 239
306306 on behalf of, the deceased beneficiary but only to the extent that the state 240
307307 is required to recover such benefits under federal law or for support 241
308308 payments due from parents under the provisions of section 17b-93, as 242
309309 amended by this act, irrespective of any provision of law. The recipient 243
310310 of beneficiary payments from any such annuity contract shall be solely 244
311311 liable to the state of Connecticut for reimbursement of public assistance 245
312312 benefits paid to, or on behalf of, the deceased beneficiary but only to the 246
313313 extent that the state is required to recover such benefits under federal 247
314314 law or for support payments due from parents under the provisions of 248 Raised Bill No. 5226
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321321 section 17b-93, as amended by this act, to the extent of any payments 249
322322 received by such recipient pursuant to the annuity contract. 250
323323 (e) On and after July 1, [2021] 2022, the state shall not recover cash 251
324324 assistance or medical assistance from a claim filed on any property, 252
325325 property interest, proceeds from a cause of action or estate, unless the 253
326326 state is required to recover such assistance under federal law or the 254
327327 provisions of section 17b-93, as amended by this act. Any claim filed 255
328328 under this section by or on behalf of the state on such property, property 256
329329 interest, proceeds from a cause of action or estate prior to July 1, [2021] 257
330330 2022, shall be released by the state if the recovery of such assistance is 258
331331 not required under federal law or the provisions of section 17b-93, as 259
332332 amended by this act. As used in this subsection, "cash assistance" means 260
333333 payments made to a beneficiary of the aid to families with dependent 261
334334 children program, the state-administered general assistance program, 262
335335 the state supplement program or the temporary family assistance 263
336336 program. 264
337337 This act shall take effect as follows and shall amend the following
338338 sections:
339339
340340 Section 1 July 1, 2022 17b-93
341341 Sec. 2 July 1, 2022 17b-94
342342 Sec. 3 July 1, 2022 17b-95
343343
344344 HS Joint Favorable
345-FIN Joint Favorable
346345