Banking Committee

JOINT FAVORABLE REPORT

Bill No.:

SB-390

Title:

AN ACT PRESERVING THE INTERESTS OF PRIOR TITLE HOLDERS.

Vote Date:

3/20/2018

Vote Action:

Joint Favorable Substitute

PH Date:

3/6/2018

File No.:

Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose.

SPONSORS OF BILL:

Banking committee

REASONS FOR BILL:

Individuals who benefit from state aid programs are generally prohibited from buying, selling, assigning, transferring, encumbering or disposing of their property without consent from the DSS commissioner. This can make it difficult for senior citizens to finance their care if they are locked out of the mortgage market. This bill ensures that senior citizens living in their homes and receiving Medicaid benefits will be able to access the mortgage market.

SUBSTITUTE LANGUAGE:

The substitute language made a change to section 2 of the bill, which clarified that the bill is retroactive, but does not invalidate claims already collected by the state.

RESPONSE FROM ADMINISTRATION/AGENCY:

CT Department of Social Services

The Department of Social Services came out against this bill, and stated that section 1 is unnecessary and the proposed section (e) is misplaced. Section 2 should be removed, as the department's ability to recapture assets fraudulently transferred by recipients of public assistance will be hindered without the commissioner's consent. They claim that the latter will result in a negative fiscal impact and impede on the Department's performance.

NATURE AND SOURCES OF SUPPORT:

Lisa Nachmias Davis- CT Elder Law Attorneys

Ms. Davis supports the bill, and asserted in her testimony that it ensures hundreds of thousands of CT residents are not excluded from the mortgage market while receiving Medicaid benefits, as well as being in compliance with federal medicaid laws respecting liens on real estate. She gave extensive background on the past and current state of applying for government benefits in conjunction with seeking a mortgage or loan.

NATURE AND SOURCES OF OPPOSITION:

None expressed (in opposition to SB 390).

Reported by: Andrew Guistwite

Date: 3/27/2018