Connecticut Seal

General Assembly

File No. 293

    February Session, 2018

Substitute Senate Bill No. 390

Senate, April 5, 2018

The Committee on Banking reported through SEN. WINFIELD of the 10th Dist. and SEN. MARTIN of the 31st Dist., Chairpersons of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT PRESERVING THE INTERESTS OF PRIOR TITLE HOLDERS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 17b-93 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2018):

(a) If a beneficiary of aid under the state supplement program, medical assistance program, aid to families with dependent children program, temporary family assistance program or state-administered general assistance program has or acquires property of any kind or interest in any property, estate or claim of any kind, except moneys received for the replacement of real or personal property, the state of Connecticut shall have a claim subject to subsections (b) and (c) of this section, which shall have priority over all other unsecured claims and unrecorded encumbrances, against such beneficiary for the full amount paid, subject to the provisions of section 17b-94, to the beneficiary or on the beneficiary's behalf under said programs; and, in addition thereto, the parents of an aid to dependent children beneficiary, a state-administered general assistance beneficiary or a temporary family assistance beneficiary shall be liable to repay, subject to the provisions of section 17b-94, to the state the full amount of any such aid paid to or on behalf of either parent, his or her spouse, and his or her dependent child or children, as defined in section 17b-75. The state of Connecticut shall have a lien against property of any kind or interest in any property, estate or claim of any kind of the parents of an aid to dependent children, temporary family assistance or state administered general assistance beneficiary, in addition and not in substitution of its claim, for amounts owing under any order for support of any court or any family support magistrate, including any arrearage under such order, provided household goods and other personal property identified in section 52-352b, real property pursuant to section 17b-79, as long as such property is used as a home for the beneficiary and money received for the replacement of real or personal property, shall be exempt from such lien.

(b) Any person who received cash benefits under the aid to families with dependent children program, the temporary family assistance program or the state-administered general assistance program, when such person was under eighteen years of age, shall not be liable to repay the state for such assistance.

(c) No claim shall be made, or lien applied, against any payment made pursuant to chapter 135, any payment made pursuant to section 47-88d or 47-287, any moneys received as a settlement or award in a housing or employment or public accommodation discrimination case, any court-ordered retroactive rent abatement, including any made pursuant to subsection (e) of section 47a-14h or section 47a-4a, 47a-5 or 47a-57, or any security deposit refund pursuant to subsection (d) of section 47a-21 paid to a beneficiary of assistance under the state supplement program, medical assistance program, aid to families with dependent children program, temporary family assistance program or state-administered general assistance program or paid to any person who has been supported wholly, or in part, by the state, in accordance with section 17b-223, in a humane institution.

(d) Notwithstanding any provision of the general statutes, whenever funds are collected pursuant to this section or section 17b-94, and the person who otherwise would have been entitled to such funds is subject to a court-ordered current or arrearage child support payment obligation in a IV-D support case, such funds shall first be paid to the state for reimbursement of Medicaid funds granted to such person for medical expenses incurred for injuries related to a legal claim by such person which was the subject of the state's lien and such funds shall then be paid to the Office of Child Support Services for distribution pursuant to the federally mandated child support distribution system implemented pursuant to subsection (j) of section 17b-179. The remainder, if any, shall be paid to the state for payment of previously provided assistance through the state supplement program, medical assistance program, aid to families with dependent children program, temporary family assistance program or state-administered general assistance program.

(e) No lien by the state of Connecticut under subsection (a) of this section, against an interest in land, shall be effective against any other person unless recorded on the land records of the municipality in which the land is located, and no such recorded lien shall be effective against any holder of any prior recorded interest in such land.

[(e)] (f) The Commissioner of Social Services shall adopt regulations, in accordance with chapter 54, establishing criteria and procedures for adjustment of the claim of the state of Connecticut under subsection (a) of this section. The purpose of any such adjustment shall be to encourage the positive involvement of noncustodial parents in the lives of their children and to encourage noncustodial parents to begin making regular support payments.

Sec. 2. Section 17b-85 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2018):

If any person receiving an award for the care of any dependent child or children, or any person legally liable for the support of such child or children, or any other person being supported wholly or in part under the provisions of the state supplement program, medical assistance program, temporary family assistance program or state-administered general assistance program or any beneficiary under such provisions or any legally liable relative of such beneficiary, receives property, wages, income or resources of any kind, such person or beneficiary, within ten days after obtaining knowledge of or receiving such property, wages, income or resources, shall notify the commissioner thereof, orally or in writing, unless good cause is established for failure to provide such notice, as determined by the commissioner. No such person or beneficiary shall sell, assign, transfer, encumber or otherwise dispose of any property without the consent of the commissioner, provided (1) any sale, assignment, transfer, encumbrance or other disposition of real property before, on or after October 1, 2018, without the consent of the commissioner, shall not invalidate the disposition of such real property or otherwise impair any title or interest in such real property, and (2) nothing in this section shall be construed to invalidate any claim collected in accordance with section 17b-93, as amended by this act, before October 1, 2018. The provisions of section 17b-137 shall be applicable with respect to any person applying for or receiving an award under such provisions. Except for the supplemental nutrition assistance program, any change in the information which has been furnished on an application form or a redetermination of eligibility form shall also be reported to the commissioner, orally or in writing, within ten days of the occurrence of such change, unless good cause is established for failure to provide such notice, as determined by the commissioner. For participants in the supplemental nutrition assistance program, the commissioner shall establish reporting requirements regarding such changes in information in accordance with applicable federal law, as may be amended from time to time.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2018

17b-93

Sec. 2

October 1, 2018

17b-85

BA

Joint Favorable Subst.

 

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 19 $

FY 20 $

Social Services, Dept.

GF - Revenue Loss

See Below

See Below

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill results in a revenue loss associated with limiting the ability of the Department of Social Services (DSS) to collect on claims or liens on real property. DSS collected an average of approximately $8.9 million on related property over the past three fiscal years.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to the amount of related claims or liens.

OLR Bill Analysis

sSB 390

AN ACT PRESERVING THE INTERESTS OF PRIOR TITLE HOLDERS.

SUMMARY

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:

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

COMMITTEE ACTION

Banking Committee

Joint Favorable Substitute

Yea

18

Nay

0

(03/20/2018)

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