SB 301-1_ Filed 02/19/2009, 11:28 Miller
Adopted 2/19/2009

SENATE MOTION


MADAM PRESIDENT:

    I move
that Senate Bill 301 be amended to read as follows:

SOURCE: Page 1, line 3; (09)MO030101.1. -->     Page 1, line 3, after "(a)" insert " This section is effective beginning October 1, 2009.
    (b)
".
    Page 1, line 3, delete "(b)," and insert " (c),".
    Page 1, line 12, delete "(b)" and insert " (c)".
    Page 1, line 16, delete "(c)" and insert " (d)".
    Page 1, after line 18, begin a new paragraph and insert:
SOURCE: IC 12-15-2-23.5; (09)MO030101.2. -->     "SECTION 2. IC 12-15-2-23.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 23.5. (a) This section is effective beginning October 1, 2009.
    (b) The office may not implement the optional provision allowed in 42 U.S.C 1396p(c)(1)(A) to apply penalties specified in 42 U.S.C. 1396p(c)(1)(A) to a noninstitutionalized individual or the spouse of the noninstitutionalized individual for the disposal of assets for less than fair market value.
    (c) In implementing the federal Deficit Reduction Act of 2005, the office shall comply with the following:
        (1) A rule adopted may not apply to the transfer of property or another transaction that occurred before the passage of the rule.
        (2) The office may not require an individual to return all assets in order to reduce a penalty period for the transfer of assets. The office shall allow a penalty period to be proportionally reduced for a partial return of assets.

SOURCE: IC 30-4-3-25.5; (09)MO030101.3. -->     SECTION 3. IC 30-4-3-25.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 25.5. (a) This section applies beginning October 1, 2009.
    (b) Except as provided in subsection (d), when a trust created to comply with 42 U.S.C. 1396p(d)(4)(A) is terminated, the trustee

shall not distribute trust property to any person entitled to payment from the trust until the office of Medicaid policy and planning has been fully reimbursed for assistance rendered to the person for whom the trust was created.
    (c) The primary purpose of a trust described in subsection (b) is to ensure that the state is repaid Medicaid benefits provided in return for excepting the trust from the general requirements of 42 U.S.C. 1396(d).
    (d) A trustee may pay federal and state taxes from the trust before reimbursing the office of Medicaid policy and planning.
".
    Renumber all SECTIONS consecutively.
    (Reference is to SB 301 as printed February 13, 2009.)

________________________________________

Senator MILLER


MO030101/DI 104
2009