S.B. 454

VETOES

Article - Health - General

Section 15-109.1

Annotated Code of Maryland

(1990 Replacement Volume and 1992 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Estates and Trusts

14-108.

(A)     THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:

(1)      THE STATE MAKES SIGNIFICANT EXPENDITURES FOR NURSING
HOME CARE UNDER THE MARYLAND MEDICAL ASSISTANCE PROGRAM;

(2)      A LARGE NUMBER OF INDIVIDUALS DO NOT HAVE ENOUGH INCOME
TO AFFORD NURSING HOME CARE, BUT HAVE TOO MUCH INCOME TO QUALIFY FOR
STATE MEDICAL ASSISTANCE, A SITUATION POPULARLY REFERRED TO AS THE
"UTAH GAP";

(3)       SOME INDIVIDUALS IN THE UTAH GAP, THROUGH INNOVATIVE
COURT-APPROVED TRUST ARRANGEMENTS, HAVE BECOME QUALIFIED FOR STATE
MEDICAL ASSISTANCE, THEREBY INCREASING STATE MEDICAL ASSISTANCE
EXPENDITURES; AND

(4)      IT IS THEREFORE APPROPRIATE TO ENACT STATE LAWS THAT LIMIT
THESE COURT-APPROVED TRUSTS IN A MANNER THAT IS CONSISTENT WITH TITLE
XIX OF THE FEDERAL SOCIAL SECURITY ACT, 42 U.S.C. §1396 ET SEQ., AS AMENDED,
AND THAT PROVIDE THAT INDIVIDUALS WHO QUALIFY FOR ASSISTANCE AS A
RESULT OF A CREATION OF THESE TRUSTS SHALL BE TREATED THE SAME AS ANY
OTHER RECIPIENT OF MEDICAL ASSISTANCE FOR NURSING FACILITY CARE.

(B)      IN ENACTING THIS SECTION, THE GENERAL ASSEMBLY INTENDS ONLY TO
LIMIT CERTAIN COURT-APPROVED TRUSTS AND COURT-APPROVED TRANSFERS OF
PROPERTY INCOME. IT IS NOT THE GENERAL ASSEMBLY'S INTENT TO APPROVE OR
DISAPPROVE OF PRIVATELY CREATED TRUSTS OR PRIVATE TRANSFERS OF
PROPERTY INCOME MADE UNDER THE SAME OR SIMILAR CIRCUMSTANCES.

(C)      (1) ' UNLESS THE CIRCUMSTANCES SURROUNDING THE CREATION OF
THE TRUST AND THE TRUST PROVISIONS MEET THE CRITERIA DESCRIBED IN §
15-109.1 OF THE HEALTH - GENERAL ARTICLE, A COURT MAY NOT AUTHORIZE,
DIRECT, OR RATIFY ANY TRUST THAT EITHER HAS THE EFFECT OF QUALIFYING OR
PURPORTS TO QUALIFY THE TRUST BENEFICIARY FOR MEDICAL ASSISTANCE FOR
NURSING FACILITY CARE.

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