HSB 215

If such a request for notice of transfer or encumbrance is filed by DHS, a title examiner shall provide DHS with a notice of transfer or encumbrance as specified in the bill. _____ real property is located. The bill requires DHS to adopt administrative rules regarding the requirements and the forms to be used for the request for notice of transfer or encumbrance, the notice of transfer or encumbrance, and the termination of request for notice of transfer or encumbrance. The bill provides that a request for notice of transfer or encumbrance does not affect the title to real property and is not a lien on, or an encumbrance of, any interest in the real property. Under the bill, DHS may impose a lien against the property of any individual prior to the person’s death due to medical assistance paid or to be paid on the person’s behalf if the lien is imposed pursuant to a judgment of a court based on benefits incorrectly paid on behalf of such person, or if the person is a resident of a nursing facility, intermediate care facility for persons with an intellectual disability, or a mental health institute, if such person is required, as a condition of receiving services in such institution, to spend for costs of medical care all but a minimal amount of the person’s income required for personal needs, and DHS determines, after notice and opportunity for a hearing, that the person cannot reasonably be expected to be discharged from the facility or mental health institute and return to the person’s home. However, a lien shall not be imposed on the home of a recipient of medical assistance if certain individuals including a spouse, certain children, or certain siblings are lawfully residing in the home. The bill provides for discharge of a lien imposed if the person does return to the person’s home after being discharged from a facility or mental health institute. Under the bill, DHS may file and enforce a lien against the real property of a deceased recipient when there is no estate subject to probate and no person specified in the bill is lawfully residing in the home. _____ to all prior liens of record and transfers for value to a bona fide purchaser of record. The lien shall be filed in the county where the real property is located within one year from the date of death of the recipient and shall contain the legal description of all real property in the county subject to the lien. The bill requires that if a title examiner discovers the presence of a request for notice of transfer or encumbrance when performing a title search, the title examiner shall provide DHS with a notice of transfer or encumbrance of the real property prior to the transfer or encumbrance, and report the request for notice of transfer or encumbrance in any title opinion or other report preliminary to the sale of the property. However, if DHS has recorded a termination of request for notice of transfer or encumbrance, the examiner is not required to provide the notice of transfer or encumbrance otherwise required. The title examiner is required to use the notice of transfer or encumbrance form approved by DHS, but is not required to record the notice with the county recorder. The request for notice of transfer or encumbrance, termination of request for notice of transfer or encumbrance, and any lien authorized under the bill is required to be recorded, and the county recorder shall charge and collect fees for the recordation of these instruments as provided in existing law to be paid by the department.