OLR Bill Analysis
AN ACT PRESERVING THE INTERESTS OF PRIOR TITLE HOLDERS.
Existing law grants the state a claim against, among other things, property a state aid program (e.g., Medicaid) beneficiary has or receives for the amount of aid paid to the beneficiary. The state's claim has priority over all other unsecured and unrecorded encumbrances.
This bill prevents a previously recorded interest in property from losing its priority to an unrecorded or subsequently recorded lien by the state against a person for repayment of state aid. It does so by specifying that the state's lien against an interest in land is:
1. not effective unless it is recorded on the land records in the municipality where the land is located and
2. subordinate to previously recorded interests in the land.
Existing law also prohibits anyone who receives aid under a state aid program from selling, assigning, transferring, encumbering, or disposing of property without the Department of Social Services (DSS) commissioner's approval. Under the bill, a recorded title or interest in real property is not affected if the owner disposed of it without the commissioner's consent, regardless of when the disposition occurred. But the bill provides that claims DSS collected prior to October 1, 2018 are still valid.
This applies to beneficiaries of the state supplement, medical assistance, aid to families with dependent children, temporary family assistance, or state-administered general assistance programs.
EFFECTIVE DATE: October 1, 2018
Joint Favorable Substitute