1.1    .................... moves to amend H.F. No. 3134 as follows:
1.2Page 1, before line 14, insert

1.3    "Section 1. Minnesota Statutes 2006, section 256B.15, subdivision 1h, is amended to
1.4read:
1.5    Subd. 1h. Estates of specific persons receiving medical assistance. (a) For
1.6purposes of this section, paragraphs (b) to (k) apply if a person received medical assistance
1.7for which a claim may be filed under this section and died single, or the surviving spouse
1.8of the couple and was not survived by any of the persons described in subdivisions 3 and 4.
1.9    (b) For purposes of this section, the person's estate consists of: (1) their probate
1.10estate; (2) all of the person's interests or proceeds of those interests in real property the
1.11person owned as a life tenant or as a joint tenant with a right of survivorship at the time of
1.12the person's death; (3) all of the person's interests or proceeds of those interests in securities
1.13the person owned in beneficiary form as provided under sections 524.6-301 to 524.6-311
1.14at the time of the person's death, to the extent they become part of the probate estate under
1.15section 524.6-307; and (4) all of the person's interests in joint accounts, multiple party
1.16accounts, and pay on death accounts, or the proceeds of those accounts, as provided
1.17under sections 524.6-201 to 524.6-214 at the time of the person's death to the extent they
1.18become part of the probate estate under section 524.6-207; and (5) the person's legal title
1.19or interest at the time of the person's death in real property transferred under a transfer on
1.20death deed under section 507.071, or in the proceeds from subsequent sale of the person's
1.21interest in real property.. Notwithstanding any law or rule to the contrary, a state or county
1.22agency with a claim under this section shall be a creditor under section 524.6-307.
1.23    (c) Notwithstanding any law or rule to the contrary, the person's life estate or joint
1.24tenancy interest in real property not subject to a medical assistance lien under sections
1.25514.980 to 514.985 on the date of the person's death shall not end upon the person's death
1.26and shall continue as provided in this subdivision. The life estate in the person's estate
1.27shall be that portion of the interest in the real property subject to the life estate that is equal
2.1to the life estate percentage factor for the life estate as listed in the Life Estate Mortality
2.2Table of the health care program's manual for a person who was the age of the medical
2.3assistance recipient on the date of the person's death. The joint tenancy interest in real
2.4property in the estate shall be equal to the fractional interest the person would have owned
2.5in the jointly held interest in the property had they and the other owners held title to the
2.6property as tenants in common on the date the person died.
2.7    (d) The court upon its own motion, or upon motion by the personal representative or
2.8any interested party, may enter an order directing the remaindermen or surviving joint
2.9tenants and their spouses, if any, to sign all documents, take all actions, and otherwise
2.10fully cooperate with the personal representative and the court to liquidate the decedent's
2.11life estate or joint tenancy interests in the estate and deliver the cash or the proceeds of
2.12those interests to the personal representative and provide for any legal and equitable
2.13sanctions as the court deems appropriate to enforce and carry out the order, including an
2.14award of reasonable attorney fees.
2.15    (e) The personal representative may make, execute, and deliver any conveyances or
2.16other documents necessary to convey the decedent's life estate or joint tenancy interest
2.17in the estate that are necessary to liquidate and reduce to cash the decedent's interest or
2.18for any other purposes.
2.19    (f) Subject to administration, all costs, including reasonable attorney fees, directly
2.20and immediately related to liquidating the decedent's life estate or joint tenancy interest in
2.21the decedent's estate, shall be paid from the gross proceeds of the liquidation allocable
2.22to the decedent's interest and the net proceeds shall be turned over to the personal
2.23representative and applied to payment of the claim presented under this section.
2.24    (g) The personal representative shall bring a motion in the district court in which
2.25the estate is being probated to compel the remaindermen or surviving joint tenants to
2.26account for and deliver to the personal representative all or any part of the proceeds of any
2.27sale, mortgage, transfer, conveyance, or any disposition of real property allocable to the
2.28decedent's life estate or joint tenancy interest in the decedent's estate, and do everything
2.29necessary to liquidate and reduce to cash the decedent's interest and turn the proceeds of
2.30the sale or other disposition over to the personal representative. The court may grant any
2.31legal or equitable relief including, but not limited to, ordering a partition of real estate
2.32under chapter 558 necessary to make the value of the decedent's life estate or joint tenancy
2.33interest available to the estate for payment of a claim under this section.
2.34    (h) Subject to administration, the personal representative shall use all of the cash
2.35or proceeds of interests to pay an allowable claim under this section. The remaindermen
2.36or surviving joint tenants and their spouses, if any, may enter into a written agreement
3.1with the personal representative or the claimant to settle and satisfy obligations imposed at
3.2any time before or after a claim is filed.
3.3    (i) The personal representative may, at their discretion, provide any or all of the
3.4other owners, remaindermen, or surviving joint tenants with an affidavit terminating the
3.5decedent's estate's interest in real property the decedent owned as a life tenant or as a joint
3.6tenant with others, if the personal representative determines in good faith that neither the
3.7decedent nor any of the decedent's predeceased spouses received any medical assistance
3.8for which a claim could be filed under this section, or if the personal representative has
3.9filed an affidavit with the court that the estate has other assets sufficient to pay a claim, as
3.10presented, or if there is a written agreement under paragraph (h), or if the claim, as allowed,
3.11has been paid in full or to the full extent of the assets the estate has available to pay it. The
3.12affidavit may be recorded in the office of the county recorder or filed in the Office of the
3.13Registrar of Titles for the county in which the real property is located. Except as provided
3.14in section 514.981, subdivision 6, when recorded or filed, the affidavit shall terminate the
3.15decedent's interest in real estate the decedent owned as a life tenant or a joint tenant with
3.16others. The affidavit shall: (1) be signed by the personal representative; (2) identify the
3.17decedent and the interest being terminated; (3) give recording information sufficient to
3.18identify the instrument that created the interest in real property being terminated; (4)
3.19legally describe the affected real property; (5) state that the personal representative has
3.20determined that neither the decedent nor any of the decedent's predeceased spouses
3.21received any medical assistance for which a claim could be filed under this section; (6)
3.22state that the decedent's estate has other assets sufficient to pay the claim, as presented, or
3.23that there is a written agreement between the personal representative and the claimant and
3.24the other owners or remaindermen or other joint tenants to satisfy the obligations imposed
3.25under this subdivision; and (7) state that the affidavit is being given to terminate the
3.26estate's interest under this subdivision, and any other contents as may be appropriate.
3.27The recorder or registrar of titles shall accept the affidavit for recording or filing. The
3.28affidavit shall be effective as provided in this section and shall constitute notice even if it
3.29does not include recording information sufficient to identify the instrument creating the
3.30interest it terminates. The affidavit shall be conclusive evidence of the stated facts.
3.31    (j) The holder of a lien arising under subdivision 1c shall release the lien at the
3.32holder's expense against an interest terminated under paragraph (h) to the extent of the
3.33termination.
3.34    (k) If a lien arising under subdivision 1c is not released under paragraph (j), prior to
3.35closing the estate, the personal representative shall deed the interest subject to the lien to
3.36the remaindermen or surviving joint tenants as their interests may appear. Upon recording
4.1or filing, the deed shall work a merger of the recipient's life estate or joint tenancy interest,
4.2subject to the lien, into the remainder interest or interest the decedent and others owned
4.3jointly. The lien shall attach to and run with the property to the extent of the decedent's
4.4interest at the time of the decedent's death.

4.5    Sec. 2. Minnesota Statutes 2006, section 256B.15, subdivision 1i, is amended to read:
4.6    Subd. 1i. Estates of persons receiving medical assistance and survived by
4.7others. (a) For purposes of this subdivision, the person's estate consists of the person's
4.8probate estate and all of the person's interests in real property the person owned as a life
4.9tenant or a joint tenant at the time of the person's deathand the person's legal title or
4.10interest at the time of the person's death in real property transferred to a beneficiary under
4.11a transfer on death deed under section 507.071, or in the proceeds from subsequent sale of
4.12the person's interest in the transferred real property.
4.13    (b) Notwithstanding any law or rule to the contrary, this subdivision applies if a
4.14person received medical assistance for which a claim could be filed under this section but
4.15for the fact the person was survived by a spouse or by a person listed in subdivision 3, or if
4.16subdivision 4 applies to a claim arising under this section.
4.17    (c) The person's life estate or joint tenancy interests in real property not subject to a
4.18medical assistance lien under sections 514.980 to 514.985 on the date of the person's death
4.19shall not end upon death and shall continue as provided in this subdivision. The life estate
4.20in the estate shall be the portion of the interest in the property subject to the life estate that
4.21is equal to the life estate percentage factor for the life estate as listed in the Life Estate
4.22Mortality Table of the health care program's manual for a person who was the age of the
4.23medical assistance recipient on the date of the person's death. The joint tenancy interest in
4.24the estate shall be equal to the fractional interest the medical assistance recipient would
4.25have owned in the jointly held interest in the property had they and the other owners held
4.26title to the property as tenants in common on the date the medical assistance recipient died.
4.27    (d) The county agency shall file a claim in the estate under this section on behalf of
4.28the claimant who shall be the commissioner of human services, notwithstanding that the
4.29decedent is survived by a spouse or a person listed in subdivision 3. The claim, as allowed,
4.30shall not be paid by the estate and shall be disposed of as provided in this paragraph.
4.31The personal representative or the court shall make, execute, and deliver a lien in favor
4.32of the claimant on the decedent's interest in real property in the estate in the amount of
4.33the allowed claim on forms provided by the commissioner to the county agency filing the
4.34lien. The lien shall bear interest as provided under section 524.3-806, shall attach to the
4.35property it describes upon filing or recording, and shall remain a lien on the real property
5.1it describes for a period of 20 years from the date it is filed or recorded. The lien shall be a
5.2disposition of the claim sufficient to permit the estate to close.
5.3    (e) The state or county agency shall file or record the lien in the office of the
5.4county recorder or registrar of titles for each county in which any of the real property is
5.5located. The recorder or registrar of titles shall accept the lien for filing or recording. All
5.6recording or filing fees shall be paid by the Department of Human Services. The recorder
5.7or registrar of titles shall mail the recorded lien to the Department of Human Services.
5.8The lien need not be attested, certified, or acknowledged as a condition of recording or
5.9filing. Upon recording or filing of a lien against a life estate or a joint tenancy interest,
5.10the interest subject to the lien shall merge into the remainder interest or the interest the
5.11recipient and others owned jointly. The lien shall attach to and run with the property to
5.12the extent of the decedent's interest in the property at the time of the decedent's death
5.13as determined under this section.
5.14    (f) The department shall make no adjustment or recovery under the lien until after the
5.15decedent's spouse, if any, has died, and only at a time when the decedent has no surviving
5.16child described in subdivision 3. The estate, any owner of an interest in the property
5.17which is or may be subject to the lien, or any other interested party, may voluntarily pay
5.18off, settle, or otherwise satisfy the claim secured or to be secured by the lien at any time
5.19before or after the lien is filed or recorded. Such payoffs, settlements, and satisfactions
5.20shall be deemed to be voluntary repayments of past medical assistance payments for the
5.21benefit of the deceased recipient, and neither the process of settling the claim, the payment
5.22of the claim, or the acceptance of a payment shall constitute an adjustment or recovery
5.23that is prohibited under this subdivision.
5.24    (g) The lien under this subdivision may be enforced or foreclosed in the manner
5.25provided by law for the enforcement of judgment liens against real estate or by a
5.26foreclosure by action under chapter 581. When the lien is paid, satisfied, or otherwise
5.27discharged, the state or county agency shall prepare and file a release of lien at its own
5.28expense. No action to foreclose the lien shall be commenced unless the lien holder has first
5.29given 30 days' prior written notice to pay the lien to the owners and parties in possession
5.30of the property subject to the lien. The notice shall: (1) include the name, address, and
5.31telephone number of the lien holder; (2) describe the lien; (3) give the amount of the lien;
5.32(4) inform the owner or party in possession that payment of the lien in full must be made
5.33to the lien holder within 30 days after service of the notice or the lien holder may begin
5.34proceedings to foreclose the lien; and (5) be served by personal service, certified mail,
5.35return receipt requested, ordinary first class mail, or by publishing it once in a newspaper
6.1of general circulation in the county in which any part of the property is located. Service of
6.2the notice shall be complete upon mailing or publication."
6.3Page 4, line 15, delete "interested" and insert "interests"
6.4Page 4, line 30, delete "transfer" and insert "transfers"
6.5Page 5, line 15, after the period insert "To show compliance with this subdivision
6.6and subdivision 23, a beneficiary must record a clearance certificate issued in accordance
6.7with subdivision 23 in each county in which the real property described in the transfer
6.8on death deed is located."
6.9Page 9, line 17, after the period insert "The application for a clearance certificate
6.10and the clearance certificate itself must contain the legal description of each parcel of real
6.11property to be covered by the clearance certificate. The county agency shall provide
6.12enough clearance certificates to allow a clearance certificate to be recorded in each county
6.13in which the real property described in the transfer on death deed is located. The real
6.14property described in the clearance certificate shall be bound by any conditions or other
6.15requirements imposed by the county agency as specified in the clearance certificate. If the
6.16real property is registered property, a new certificate of title shall not be issued until the
6.17clearance certificate is recorded. If the clearance certificate shows the continuation of a
6.18medical assistance claim or lien after issuance of the clearance certificate, the real property
6.19shall remain subject to the claim or lien, and if the real property is registered property the
6.20clearance certificate shall be carried forward as a memorial in any new certificate of title."
6.21Amend the title accordingly