2007 Legislation
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SENATE BILL NO. 1103 – Public assistance, asset transfer

SENATE BILL NO. 1103

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Bill Status



S1103.................................................by HEALTH AND WELFARE
PUBLIC ASSISTANCE - Amends existing law relating to public assistance law
to reference a transfer of assets specifically permitted by department
rule; to delete language referencing a transfer between spouses or to
another for the benefit of a spouse.
                                                                        
02/08    Senate intro - 1st rdg - to printing
02/09    Rpt prt - to Health/Wel
02/16    Rpt out - rec d/p - to 2nd rdg
02/19    2nd rdg - to 3rd rdg
02/22    3rd rdg - PASSED - 32-0-3
      AYES -- Bair, Bastian, Bilyeu, Broadsword, Burkett, Cameron, Coiner,
      Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hammond,
      Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Lodge, Malepeai,
      McGee, McKague, McKenzie, Richardson, Schroeder, Siddoway, Stegner,
      Stennett, Werk
      NAYS -- None
      Absent and excused -- Andreason, Little, Pearce
    Floor Sponsor - Bair
    Title apvd - to House
02/23    House intro - 1st rdg - to Health/Wel
03/09    Rpt out - ref'd to St Aff
03/13    Rpt out - rec d/p - to 2nd rdg
03/14    2nd rdg - to 3rd rdg
03/19    3rd rdg - PASSED - 64-0-6
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bilbao, Black,
      Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chew, Clark,
      Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Henbest,
      Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Nielsen,
      Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo, Ruchti,
      Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Shively,
      Smith(30), Smith(24), Snodgrass, Stevenson, Thayn, Trail, Vander
      Woude, Wills, Wood(27), Wood(35)
      NAYS -- None
      Absent and excused -- Bell, Chavez, Harwood, Moyle, Roberts, Mr.
      Speaker
    Floor Sponsor - Rusche
    Title apvd - to Senate
03/20    To enrol
03/21    Rpt enrol - Pres signed - Sp signed
03/22    To Governor
03/28    Governor signed
         Session Law Chapter 248
         Effective: 01/01/07

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1103
                                                                        
                              BY HEALTH AND WELFARE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PUBLIC ASSISTANCE LAW; AMENDING SECTION  56-214,  IDAHO  CODE,  TO
  3        REFERENCE  A  TRANSFER OF ASSETS SPECIFICALLY PERMITTED BY DEPARTMENT RULE
  4        AND TO DELETE LANGUAGE  REFERENCING  A  TRANSFER  BETWEEN  SPOUSES  OR  TO
  5        ANOTHER  FOR THE BENEFIT OF A SPOUSE; DECLARING AN EMERGENCY AND PROVIDING
  6        RETROACTIVE APPLICATION.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION 1.  That Section 56-214, Idaho Code, be, and the  same  is  hereby
  9    amended to read as follows:
                                                                        
 10        56-214.  AWARD  OF  PUBLIC  ASSISTANCE  --  INELIGIBILITY UPON TRANSFER OF
 11    PROPERTY. Upon the completion of the investigation, the state department shall
 12    determine whether the applicant is eligible for public  assistance  under  the
 13    provisions  of  this  act,  the  type and amount of public assistance he shall
 14    receive, and the date upon which such public assistance  shall  begin.  Public
 15    assistance shall be paid in the manner prescribed by the state department.
 16        (1)  Assistance  to families with children shall not be granted under this
 17    act to any person who within six (6) months prior to applying for  or  at  any
 18    time  during  which such assistance is received, has either made an assignment
 19    or transfer of property for the purpose  of  rendering  himself  eligible  for
 20    assistance  under  this  act,  or  who has divested himself of any interest in
 21    property without adequate consideration which interest or  proceeds  therefrom
 22    could  reasonably  be expected to contribute to the support and maintenance of
 23    such person and his family, except that any person who is ineligible for  pub-
 24    lic assistance due solely to such assignment or transfer shall become eligible
 25    provided:
 26        (a)  There  is  a  showing that such person has caused such property to be
 27        assigned or transferred back to him; or
 28        (b)  There is a showing that the person to whom such property is  assigned
 29        or transferred has, subsequent to such assignment or transfer, met subsis-
 30        tence  and  medical care costs exclusive of any obligation for support, of
 31        such person or family, according to the department's assistance  standard,
 32        equal to, or in excess of, the market value of the property so assigned or
 33        transferred; or
 34        (c)  There  is  a  showing  that the subsistence and medical care costs of
 35        such person, according to the department's assistance standard, subsequent
 36        to such assignment or transfer, equal or exceed the market  value  of  the
 37        property so assigned or transferred.
 38        (2)  Eligibility  for old age assistance under section 56-207, Idaho Code,
 39    or aid to the blind under section 56-208, Idaho Code, or aid to  the  disabled
 40    under  section  56-209a, Idaho Code, shall be determined by continuing to con-
 41    sider as available any resource that was transferred prior to  July  1,  1988,
 42    until  such  resource  is  fully accounted for under the provisions of section
 43    1613(c) of the social security act as such section read on June 30, 1988.
                                                                        
                                       2
                                                                        
  1        (3)  Eligibility for medical assistance under section 56-209b, Idaho Code,
  2    shall continue to apply the rules of the director of the department of  health
  3    and  welfare concerning transfer of property as such rules read on October 29,
  4    1988, to transfers that occur prior to July 1, 1989, to persons other than  to
  5    the spouse of the person receiving or applying for medical  assistance, and to
  6    interspousal transfers that occur prior to October 1, 1989.
  7        (4)  The  provisions  of  section  1917(c)  of  the social security act as
  8    amended by public law 100-360 and further amended by public law 100-485 and as
  9    hereafter amended shall apply as of July 1, 1989, to transfers of assets other
 10    than to the spouse, and as of October 1, 1989, to transfers  between  spouses,
 11    except  that such provisions shall not apply either to transfers that occurred
 12    before July 1, 1988, or to transfers that have been fully accounted for  under
 13    subsection (3) of this section. Notwithstanding the foregoing, any transfer of
 14    assets  not  otherwise  specifically  permitted  by federal law or rule of the
 15    department, whether or not for fair market value including,  but  not  limited
 16    to,  a  transfer  in the form of an annuity, between spouses or to another for
 17    the benefit of a spouse, is presumed to  be  for  the  purpose  of  sheltering
 18    assets  to  qualify  for  medical assistance. Such assets transferred shall be
 19    counted as available in determining eligibility, and will subject  the  appli-
 20    cant  to penalties prescribed by the director, unless the applicant for assis-
 21    tance can demonstrate by clear and convincing evidence that the  transfer  was
 22    intended for another purpose.
 23        (5)  Any  funds,  securities,  accounts,  contracts and all other property
 24    held in or transferred to a special needs trust as  provided  in  chapter  14,
 25    title  68,  Idaho  Code,  section 15-5-409, Idaho Code, and section 15-5-409a,
 26    Idaho Code, shall not be considered by the  state  department  in  determining
 27    whether  the  applicant is eligible for public assistance under the provisions
 28    of this act, so long as the action is permitted under the provisions  of  sec-
 29    tion 1917(c) and (d) of the social security act, as amended.
 30        (6)  If  any  provision  of this section or the application thereof to any
 31    person or circumstance is held invalid, such invalidity shall not affect other
 32    provisions or applications of the section that can be given effect without the
 33    invalid provisions or applications, and to this end  the  provisions  of  this
 34    section are severable.
                                                                        
 35        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 36    declared to exist, this act shall be in full force and effect on and after its
 37    passage and approval, and retroactively to January 1, 2007.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE

                            RS 16847

This bill brings Idaho law into compliance with federal Medicaid
law and especially with the provisions of the Deficit Reduction
Act, effective February 8, 2006, as specifically set forth in 42
U.S.C. 1396pp(c)(F) and (G), and therefore will allow Medicaid to
promulgate regulations which are in compliance with the federal
law.  This area will be the subject of continued negotiated rule
making.

                                   
                          FISCAL NOTE

This bill will have no fiscal impact.





CONTACT:
Name:     Robert L. Aldridge, Trust & Estate Professionals of
          Idaho, Inc.
Telephone: office: (208) 336-9880  Cell: (208) 631-2481




STATEMENT OF PURPOSE/FISCAL NOTE                          S 1103