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Assembly Bill No. 445–Committee on
Health and Human Services

 

(On Behalf of the Department of Human Resources, Health Care Financing and Policy Division)

 

March 20, 2003

____________

 

Referred to Committee on Health and Human Services

 

SUMMARY—Makes various changes related to Medicaid. (BDR 38‑482)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: Yes.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to welfare; transferring certain duties relating to Medicaid from the Welfare Division of the Department of Human Resources to the Department of Human Resources and from the State Welfare Administrator to the Director of the Department of Human Resources; revising the definition of the “undivided estate” of a deceased recipient of Medicaid; requiring the Director of the Department of Human Resources to adopt certain regulations; providing that certain provisions of law do not apply to the recovery of money owed to the Department of Human Resources as a result of the payment of benefits for Medicaid; repealing the requirement that the State Plan for Medicaid include a requirement that certain senior citizens are eligible for Medicaid for long-term care; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

 

2-1  Section 1. Chapter 422 of NRS is hereby amended by adding

2-2  thereto a new section to read as follows:

2-3  The Director:

2-4  1.  Shall administer the provisions of NRS 422.2935 to

2-5  422.2936, inclusive;

2-6  2.  May adopt such regulations as are necessary for the

2-7  administration of those provisions; and

2-8  3.  May invoke any legal, equitable or special procedures for

2-9  the enforcement of those provisions.

2-10      Sec. 2.  NRS 422.054 is hereby amended to read as follows:

2-11      422.054  “Undivided estate” means all real and personal

2-12  property and other assets included in the estate of a deceased

2-13  recipient of Medicaid and any other real and personal property and

2-14  other assets in or to which he had an interest or legal title

2-15  immediately before or at the time of his death, to the extent of that

2-16  interest or title. The term includes, without limitation, assets

2-17  conveyed to a survivor, heir or assign of the deceased recipient

2-18  through or as the result of any joint tenancy, tenancy in common,

2-19  survivorship, life estate, living trust , annuity, declaration of

2-20  homestead or other arrangement . [, including, without limitation,

2-21  any of the decedent’s separate property and his interest in

2-22  community property that was transferred to a community spouse

2-23  pursuant to NRS 123.259 or pursuant to an order of a district court

2-24  under any other provision of law.]

2-25      Sec. 3.  NRS 422.222 is hereby amended to read as follows:

2-26      422.222  The State Welfare Administrator may adopt such

2-27  regulations as are necessary for the administration of NRS 422.160

2-28  to 422.2345, inclusive, 422.2931 to [422.2936,] 422.29324,

2-29  inclusive, and 422.310 to 422.3754, inclusive, and any program of

2-30  the Welfare Division.

2-31      Sec. 4.  NRS 422.230 is hereby amended to read as follows:

2-32      422.230  The State Welfare Administrator shall:

2-33      1.  Supply the Director with material on which to base proposed

2-34  legislation.

2-35      2.  Cooperate with the Federal Government and state

2-36  governments for the more effective attainment of the purposes of

2-37  this chapter.

2-38      3.  Coordinate the activities of the Welfare Division with other

2-39  agencies, both public and private, with related or similar activities.

2-40      4.  Keep a complete and accurate record of all proceedings,

2-41  record and file all bonds and contracts, and assume responsibility for

2-42  the custody and preservation of all papers and documents pertaining

2-43  to his office.

3-1  5.  Inform the public in regard to the activities and operation of

3-2  the Welfare Division, and provide other information which will

3-3  acquaint the public with problems relating to welfare.

3-4  6.  Conduct studies into the causes of the social problems with

3-5  which the Welfare Division is concerned.

3-6  7.  Provide leadership in the community in order that all welfare

3-7  activities are pointed toward the single goal of improving the public

3-8  welfare.

3-9  8.  Invoke any legal, equitable or special procedures for the

3-10  enforcement of his orders or the enforcement of the provisions of

3-11  NRS 422.160 to 422.2345, inclusive, 422.2931 to [422.2936,]

3-12  422.29324, inclusive, and 422.310 to 422.3754, inclusive.

3-13      9.  Exercise any other powers that are necessary and proper for

3-14  the standardization of state work, to expedite business, to ensure fair

3-15  consideration of applications for aid, and to promote the efficiency

3-16  of the service provided by the Welfare Division.

3-17      Sec. 5.  NRS 422.240 is hereby amended to read as follows:

3-18      422.240  1.  Money to carry out the provisions of NRS

3-19  422.001 to 422.410, inclusive, and section 1 of this act and

3-20  422.580, including, without limitation, any federal money allotted to

3-21  the State of Nevada pursuant to the program to provide Temporary

3-22  Assistance for Needy Families and the Program for Child Care and

3-23  Development, must be provided by appropriation by the Legislature

3-24  from the State General Fund.

3-25      2.  Disbursements for the purposes of NRS 422.001 to 422.410,

3-26  inclusive, and section 1 of this act and 422.580 must be made upon

3-27  claims duly filed, audited and allowed in the same manner as other

3-28  money in the State Treasury is disbursed.

3-29      Sec. 6.  NRS 422.272 is hereby amended to read as follows:

3-30      422.272  1.  [Except as otherwise provided in NRS 422.2725,

3-31  the] The Director shall include in the State Plan for Medicaid a

3-32  requirement that the State shall pay the nonfederal share of

3-33  expenditures for the medical, administrative and transactional costs,

3-34  to the extent not covered by private insurance, of a person:

3-35      (a) Who is admitted to a hospital, facility for intermediate care

3-36  or facility for skilled nursing for not less than 30 consecutive days;

3-37      (b) Who is covered by the State Plan for Medicaid; and

3-38      (c) Whose net countable income per month is not more than

3-39  $775 or 156 percent of the supplemental security income benefit

3-40  rate established pursuant to 42 U.S.C. § 1382(b)(1), whichever is

3-41  greater.

3-42      2.  As used in this section:

3-43      (a) “Facility for intermediate care” has the meaning ascribed to

3-44  it in NRS 449.0038.

4-1  (b) “Facility for skilled nursing” has the meaning ascribed to it

4-2  in NRS 449.0039.

4-3  (c) “Hospital” has the meaning ascribed to it in NRS 449.012.

4-4  Sec. 7.  NRS 422.291 is hereby amended to read as follows:

4-5  422.291  Assistance awarded pursuant to the provisions of this

4-6  chapter is not transferable or assignable at law or in equity and ,

4-7  except as otherwise provided in section 17 of this act or NRS

4-8  108.850, 108.860, 108.870, or 422.2935 to 422.2936, inclusive,

4-9  none of the money paid or payable under this chapter is subject to

4-10  execution, levy, attachment, garnishment or other legal process, or

4-11  to the operation of any bankruptcy or insolvency law.

4-12      Sec. 8.  NRS 422.2931 is hereby amended to read as follows:

4-13      422.2931  The State Welfare Administrator and the Welfare

4-14  Division shall administer the provisions of NRS 422.160 to

4-15  422.2345, inclusive, 422.2931 to [422.2936,] 422.29324, inclusive,

4-16  and 422.310 to 422.3754, inclusive, subject to administrative

4-17  supervision by the Director.

4-18      Sec. 9.  NRS 422.2935 is hereby amended to read as follows:

4-19      422.2935  1.  Except as otherwise provided in this section and

4-20  to the extent it is not prohibited by federal law and when

4-21  circumstances allow, the [Welfare Division] Department shall

4-22  recover benefits correctly paid for Medicaid from:

4-23      (a) The undivided estate of the person who received those

4-24  benefits; and

4-25      (b) Any recipient of money or property from the undivided

4-26  estate of the person who received those benefits.

4-27      2.  The [Welfare Division] Department shall not recover

4-28  benefits pursuant to subsection 1, except from a person who is

4-29  neither a surviving spouse nor a child, until after the death of the

4-30  surviving spouse, if any, and only at a time when the person who

4-31  received the benefits has no surviving child who is under 21 years of

4-32  age , [or is] blind or [permanently and totally] disabled.

4-33      3.  Except as otherwise provided by federal law, if a transfer of

4-34  real or personal property by a recipient of Medicaid is made for less

4-35  than fair market value, the [Welfare Division] Department may

4-36  pursue any remedy available pursuant to chapter 112 of NRS with

4-37  respect to the transfer.

4-38      4.  The amount of Medicaid paid to or on behalf of a person is a

4-39  claim against the estate in any probate proceeding only at a time

4-40  when there is no surviving spouse or surviving child who is under

4-41  21 years of age , [or is] blind or [permanently and totally] disabled.

4-42      5.  The [State Welfare Administrator] Director may elect not to

4-43  file a claim against the estate of a recipient of Medicaid or his

4-44  spouse if [he] the Director determines that the filing of the claim

4-45  will cause an undue hardship for the spouse or other survivors of the

5-1  recipient. The [State Welfare Administrator] Director shall adopt

5-2  regulations defining the circumstances that constitute an undue

5-3  hardship.

5-4  6.  Any recovery of money obtained pursuant to this section

5-5  must be applied first to the cost of recovering the money. Any

5-6  remaining money must be divided among the Federal Government,

5-7  the Department and the county in the proportion that the amount of

5-8  assistance each contributed to the recipient bears to the total amount

5-9  of the assistance contributed.

5-10      7.  Any recovery by the [Welfare Division] Department from

5-11  the undivided estate of a recipient pursuant to this section must be

5-12  paid in cash to the extent of:

5-13      (a) The amount of Medicaid paid to or on behalf of the recipient

5-14  after October 1, 1993; or

5-15      (b) The value of the remaining assets in the undivided

5-16  estate,

5-17  whichever is less.

5-18      Sec. 10.  NRS 422.29353 is hereby amended to read as

5-19  follows:

5-20      422.29353  1.  Except as otherwise provided in this section,

5-21  the [Welfare Division] Department shall, to the extent that it is not

5-22  prohibited by federal law, recover from a recipient of public

5-23  assistance, the estate of the recipient, the undivided estate of a

5-24  recipient of Medicaid or a person who signed the application for

5-25  public assistance on behalf of the recipient an amount not to exceed

5-26  the amount of public assistance incorrectly paid to the recipient, if

5-27  the person who signed the application:

5-28      (a) Failed to report any required information to the [Welfare

5-29  Division] Department that the person knew at the time he signed the

5-30  application; or

5-31      (b) Failed to report to the [Welfare Division] Department within

5-32  the period allowed by the [Welfare Division] Department any

5-33  required information that the person obtained after he filed the

5-34  application.

5-35      2.  Except as otherwise provided in this section, a recipient of

5-36  incorrectly paid public assistance, the undivided estate of a recipient

5-37  of Medicaid or a person who signed the application for public

5-38  benefits on behalf of the recipient shall reimburse the [Division]

5-39  Department or appropriate state agency for the value of the

5-40  incorrectly paid public assistance.

5-41      3.  The [State Welfare Administrator] Director or his designee

5-42  may, to the extent that it is not prohibited by federal law, determine

5-43  the amount of, and settle, adjust, compromise or deny a claim

5-44  against a recipient of public assistance, the estate of the recipient,

5-45  the undivided estate of a recipient of Medicaid or a person who

6-1  signed the application for public assistance on behalf of the

6-2  recipient.

6-3  4.  The [State Welfare Administrator] Director may, to the

6-4  extent that it is not prohibited by federal law, waive the repayment

6-5  of public assistance incorrectly paid to a recipient if the incorrect

6-6  payment was not the result of an intentional misrepresentation or

6-7  omission by the recipient and if repayment would cause an undue

6-8  hardship to the recipient. The [State Welfare Administrator]

6-9  Director shall, by regulation, establish the terms and conditions of

6-10  such a waiver, including, without limitation, the circumstances that

6-11  constitute undue hardship.

6-12      Sec. 11.  NRS 422.29355 is hereby amended to read as

6-13  follows:

6-14      422.29355  1.  The [Welfare Division] Department may, to

6-15  the extent not prohibited by federal law, petition for the imposition

6-16  of a lien pursuant to the provisions of NRS 108.850 against real or

6-17  personal property of a recipient of Medicaid as follows:

6-18      (a) The [Welfare Division] Department may obtain a lien

6-19  against a recipient’s property, both real or personal, before or after

6-20  his death in the amount of assistance paid or to be paid on his behalf

6-21  if the court determines that assistance was incorrectly paid for the

6-22  recipient.

6-23      (b) The [Welfare Division] Department may seek a lien against

6-24  the real property of a recipient at any age before his death in the

6-25  amount of assistance paid or to be paid for him if he is an inpatient

6-26  in a nursing facility, intermediate care facility for the mentally

6-27  retarded or other medical institution and the [Welfare Division]

6-28  Department determines, after notice and opportunity for a hearing

6-29  in accordance with [its] applicable regulations, that [he] the

6-30  recipient cannot reasonably be expected to be discharged and return

6-31  home.

6-32      2.  No lien may be placed on a recipient’s home pursuant to

6-33  paragraph (b) of subsection 1 for assistance correctly paid if:

6-34      (a) His spouse;

6-35      (b) His child who is under 21 years of age , [or] blind or

6-36  [permanently and totally] disabled as determined in accordance with

6-37  42 U.S.C. § 1382c; or

6-38      (c) His brother or sister who is an owner or part owner of the

6-39  home and who was residing in the home for at least 1 year

6-40  immediately before the date the recipient was admitted to the

6-41  medical institution,

6-42  is lawfully residing in the home.

6-43      3.  Upon the death of a recipient , the [Welfare Division]

6-44  Department may seek a lien upon [his] the recipient’s undivided

6-45  estate as defined in NRS 422.054.

7-1  4.  The [State Welfare Administrator] Director shall release a

7-2  lien pursuant to this section:

7-3  (a) Upon notice by the recipient or his representative to the

7-4  [Administrator] Director that the recipient has been discharged from

7-5  the medical institution and has returned home;

7-6  (b) If the lien was incorrectly determined; or

7-7  (c) Upon satisfaction of the claim of the [Welfare Division.]

7-8  Department.

7-9  Sec. 12.  NRS 422.2936 is hereby amended to read as follows:

7-10      422.2936  Each application for Medicaid must include:

7-11      1.  A statement that any assistance paid to a recipient may be

7-12  recovered in an action filed against the estate of the recipient or his

7-13  spouse; and

7-14      2.  A statement that any person who signs an application for

7-15  Medicaid and fails to report:

7-16      (a) Any required information to the [Welfare Division]

7-17  Department which he knew at the time he signed the application; or

7-18      (b) Within the period allowed by the [Welfare Division,]

7-19  Department, any required information to the [Welfare Division]

7-20  Department which he obtained after he filed the application,

7-21  may be personally liable for any money incorrectly paid to the

7-22  recipient.

7-23      Sec. 13.  NRS 40.525 is hereby amended to read as follows:

7-24      40.525  1.  If title or an interest in real or personal property is

7-25  affected by the death of any person, any other person who claims

7-26  any interest in the real or personal property, if his interest is affected

7-27  by the death of that person, or the State of Nevada, may file in the

7-28  district court of any county in which any part of the real or personal

7-29  property is situated a verified petition setting forth those facts and

7-30  particularly describing the real or personal property, the interest of

7-31  the petitioner and the interest of the deceased therein.

7-32      2.  The clerk shall set the petition for hearing by the court.

7-33  Notice of hearing of the petition must be mailed, by certified mail,

7-34  return receipt requested, postage prepaid, to the heirs at law of the

7-35  deceased person at their places of business or residences, if known,

7-36  and if not, by publication for at least 3 successive weeks in such

7-37  newspaper as the court orders. The clerk shall send a copy of the

7-38  notice of hearing or of the affidavit to the [Welfare Division of the]

7-39  Department of Human Resources by certified mail, return receipt

7-40  requested, postage prepaid, if the State is not the petitioner, at the

7-41  time notice is mailed to the heirs at law or the notice is published.

7-42  Failure on the part of any such heir at law to contest the petition

7-43  precludes any such heir at law from thereafter contesting the validity

7-44  of the joint interest or its creation or termination.

8-1  3.  The court shall take evidence for or against the petition, and

8-2  may render judgment thereon establishing the fact of the death and

8-3  the termination of the interest of the deceased in the real or personal

8-4  property described in the petition.

8-5  4.  A certified copy of the decree may be recorded in the office

8-6  of the recorder of each county in which any part of the real or

8-7  personal property is situated.

8-8  5.  As an alternative method of terminating the interest of the

8-9  deceased person, if title or an interest in real or personal property

8-10  held in joint tenancy or as community property with right of

8-11  survivorship is affected by the death of a joint tenant or spouse, any

8-12  person who has knowledge of the facts may record in the office of

8-13  the county recorder in the county where the property is situated an

8-14  affidavit meeting the requirements of NRS 111.365, accompanied

8-15  by a certified copy of the death certificate of the deceased person.

8-16      Sec. 14.  NRS 108.860 is hereby amended to read as follows:

8-17      108.860  1.  A petition for the imposition of a lien must be

8-18  signed by or on behalf of the [State Welfare Administrator] Director

8-19  of the Department of Human Resources or the Attorney General

8-20  and filed with the clerk of the court, who shall set the petition for

8-21  hearing.

8-22      2.  Notice of a petition for the imposition of a lien must be

8-23  given by registered or certified mail, postage prepaid, at least 10

8-24  days before the date set for hearing or other action by the court.

8-25  Each such notice must be addressed to the intended recipient at his

8-26  last address known to the [Administrator,] Director, receipt for

8-27  delivery requested. The [Administrator] Director shall cause the

8-28  notice to be published, at least once a week for 3 successive weeks,

8-29  in one newspaper published in the county, and if there is no

8-30  newspaper published in the county, then in such mode as the court

8-31  may determine, notifying all persons claiming any interest in the

8-32  property of the filing of the petition, the object and the location, date

8-33  and time of the hearing.

8-34      3.  Notice of a petition for the imposition of a lien must be

8-35  given to:

8-36      (a) Each person who has requested notice;

8-37      (b) The person who is receiving or has received benefits for

8-38  Medicaid;

8-39      (c) The legal guardian or representative of a person who is

8-40  receiving or has received benefits for Medicaid, if any;

8-41      (d) Each executor, administrator or trustee of the estate of a

8-42  decedent who received benefits for Medicaid, if any;

8-43      (e) The heirs of such a decedent known to the [Administrator;]

8-44  Director; and

9-1  (f) Each person who is claiming any interest in the property or

9-2  who is listed as having any interest in the subject property,

9-3  and must state the filing of the petition, the object, and the time set

9-4  for hearing.

9-5  4.  At the time appointed, or at any other time to which the

9-6  hearing may be continued, upon proof being made by affidavit or

9-7  otherwise to the satisfaction of the court that notice has been given

9-8  as required by this chapter, the court shall proceed to hear the

9-9  testimony in support of the petition. Each witness who appears and

9-10  is sworn shall testify orally.

9-11      5.  The court shall make findings as to the appropriateness of

9-12  the lien and the amount of the lien.

9-13      6.  At the time of the filing of the petition for imposition of a

9-14  lien , the [Administrator] Director shall file a notice of pendency of

9-15  the action in the manner provided in NRS 14.010.

9-16      7.  Upon imposition of the lien by the court, the [Administrator]

9-17  Director shall serve the notice of lien upon the owner by certified or

9-18  registered mail and file it with the office of the county recorder of

9-19  each county where real property subject to the lien is located.

9-20      8.  The notice of lien must contain:

9-21      (a) The amount due;

9-22      (b) The name of the owner of record of the property; and

9-23      (c) A description of the property sufficient for identification.

9-24      9.  If the amount due as stated in the notice of lien is reduced by

9-25  a payment, the [Administrator] Director shall amend the notice of

9-26  lien, stating the amount then due, within 20 days after receiving the

9-27  payment.

9-28      Sec. 15.  NRS 108.870 is hereby amended to read as follows:

9-29      108.870  The [State Welfare Administrator] Director of the

9-30  Department of Human Resources may, to the extent not prohibited

9-31  by 42 U.S.C. § 1396p(b), foreclose upon a lien for money owed to

9-32  the Department of Human Resources as a result of the payment of

9-33  benefits for Medicaid by action in the district court in the same

9-34  manner as for foreclosure of any other lien.

9-35      Sec. 16.  NRS 111.365 is hereby amended to read as follows:

9-36      111.365  1.  In the case of real property owned by two or more

9-37  persons as joint tenants or as community property with right of

9-38  survivorship, it is presumed that all title or interest in and to that real

9-39  property of each of one or more deceased joint tenants or the

9-40  deceased spouse has terminated, and vested solely in the surviving

9-41  joint tenant or spouse or vested jointly in the surviving joint tenants,

9-42  if there has been recorded in the office of the recorder of the county

9-43  or counties in which the real property is situate an affidavit,

9-44  subscribed and sworn to by a person who has knowledge of the facts

9-45  required in this subsection, which sets forth the following:

10-1      (a) The family relationship, if any, of the affiant to each

10-2  deceased joint tenant or the deceased spouse;

10-3      (b) A description of the instrument or conveyance by which the

10-4  joint tenancy or right of survivorship was created;

10-5      (c) A description of the property subject to the joint tenancy or

10-6  right of survivorship; and

10-7      (d) The date and place of death of each deceased joint tenant or

10-8  the deceased spouse.

10-9      2.  Each month, a county recorder shall send all the information

10-10  contained in each affidavit received by him pursuant to subsection 1

10-11  during the immediately preceding month to the [Welfare Division of

10-12  the] Department of Human Resources in any format and by any

10-13  medium approved by the [Welfare Division.] Department.

10-14     Sec. 17.  Chapter 115 of NRS is hereby amended by adding

10-15  thereto a new section to read as follows:

10-16     Nothing in this chapter exempts any real or personal property

10-17  from any statute of this state that authorizes the recovery of money

10-18  owed to the Department of Human Resources as a result of the

10-19  payment of benefits from Medicaid through the imposition or

10-20  foreclosure of a lien against the property of a recipient of

10-21  Medicaid in the manner set forth in NRS 422.2935 to 422.2936,

10-22  inclusive.

10-23     Sec. 18.  NRS 115.005 is hereby amended to read as follows:

10-24     115.005  As used in this chapter, unless the context otherwise

10-25  requires:

10-26     1.  “Equity” means the amount that is determined by subtracting

10-27  from the fair market value of the property[,] the value of any liens

10-28  excepted from the homestead exemption pursuant to subsection 3 of

10-29  NRS 115.010[.] or section 17 of this act.

10-30     2.  “Homestead” means the property consisting of:

10-31     (a) A quantity of land, together with the dwelling house thereon

10-32  and its appurtenances;

10-33     (b) A mobile home whether or not the underlying land is owned

10-34  by the claimant; or

10-35     (c) A unit, whether real or personal property, existing pursuant

10-36  to chapter 116 or 117 of NRS, with any appurtenant limited

10-37  common elements and its interest in the common elements of the

10-38  common-interest community,

10-39  to be selected by the husband and wife, or either of them, or a single

10-40  person claiming the homestead.

10-41     Sec. 19.  NRS 115.010 is hereby amended to read as follows:

10-42     115.010  1.  The homestead is not subject to forced sale on

10-43  execution or any final process from any court, except as otherwise

10-44  provided by subsections 2, 3 and 5[.] , and section 17 of this act.

11-1      2.  The exemption provided in subsection 1 extends only to that

11-2  amount of equity in the property held by the claimant which does

11-3  not exceed $125,000 in value, unless allodial title has been

11-4  established and not relinquished, in which case the exemption

11-5  provided in subsection 1 extends to all equity in the dwelling, its

11-6  appurtenances and the land on which it is located.

11-7      3.  Except as otherwise provided in subsection 4, the exemption

11-8  provided in subsection 1 does not extend to process to enforce the

11-9  payment of obligations contracted for the purchase of the property,

11-10  or for improvements made thereon, including any mechanic’s lien

11-11  lawfully obtained, or for legal taxes, or for:

11-12     (a) Any mortgage or deed of trust thereon executed and given;

11-13  or

11-14     (b) Any lien to which prior consent has been given through the

11-15  acceptance of property subject to any recorded declaration of

11-16  restrictions, deed restriction, restrictive covenant or equitable

11-17  servitude, specifically including any lien in favor of an association

11-18  pursuant to NRS 116.3116 or 117.070,

11-19  by both husband and wife, when that relation exists.

11-20     4.  If allodial title has been established and not relinquished, the

11-21  exemption provided in subsection 1 extends to process to enforce

11-22  the payment of obligations contracted for the purchase of the

11-23  property, and for improvements made thereon, including any

11-24  mechanic’s lien lawfully obtained, and for legal taxes levied by a

11-25  state or local government, and for:

11-26     (a) Any mortgage or deed of trust thereon; and

11-27     (b) Any lien even if prior consent has been given through the

11-28  acceptance of property subject to any recorded declaration of

11-29  restrictions, deed restriction, restrictive covenant or equitable

11-30  servitude, specifically including any lien in favor of an association

11-31  pursuant to NRS 116.3116 or 117.070,

11-32  unless a waiver for the specific obligation to which the judgment

11-33  relates has been executed by all allodial titleholders of the property.

11-34     5.  Establishment of allodial title does not exempt the property

11-35  from forfeiture pursuant to NRS 179.1156 to 179.119, inclusive, or

11-36  207.350 to 207.520, inclusive.

11-37     6.  Any declaration of homestead which has been filed before

11-38  October 1, 1995, shall be deemed to have been amended on that date

11-39  by extending the homestead exemption commensurate with any

11-40  increase in the amount of equity held by the claimant in the property

11-41  selected and claimed for the exemption up to the amount permitted

11-42  by law on that date, but the increase does not impair the right of any

11-43  creditor to execute upon the property when that right existed before

11-44  October 1, 1995.

 

12-1      Sec. 20.  NRS 136.100 is hereby amended to read as follows:

12-2      136.100  1.  A petition for the probate of a will and for the

12-3  issuance of letters must be signed by the party petitioning, or the

12-4  attorney for the petitioner, and filed with the clerk of the court, who

12-5  shall set the petition for hearing.

12-6      2.  The petitioner shall give notice of the hearing for the period

12-7  and in the manner provided in NRS 155.020 to the heirs of the

12-8  testator and the devisees named in the will, to all persons named as

12-9  personal representatives who are not petitioning and to the

12-10  [Administrator of the Welfare Division] Director of the Department

12-11  of Human Resources. The notice must be substantially in the form

12-12  provided in that section.

12-13     Sec. 21.  NRS 139.100 is hereby amended to read as follows:

12-14     139.100  The clerk shall set the petition for hearing, and notice

12-15  must be given to the heirs of the decedent and to the [Administrator

12-16  of the Welfare Division] Director of the Department of Human

12-17  Resources as provided in NRS 155.020. The notice must state the

12-18  filing of the petition, the object and the time for hearing.

12-19     Sec. 22.  NRS 143.035 is hereby amended to read as follows:

12-20     143.035  1.  A personal representative shall use reasonable

12-21  diligence in performing the duties of the personal representative and

12-22  in pursuing the administration of the estate.

12-23     2.  A personal representative in charge of an estate that has not

12-24  been closed shall:

12-25     (a) Within 6 months after the personal representative’s

12-26  appointment, where no federal estate tax return is required to be

12-27  filed for the estate; or

12-28     (b) Within 15 months after the personal representative’s

12-29  appointment, where a federal estate tax return is required to be filed

12-30  for the estate,

12-31  file with the court a report explaining why the estate has not been

12-32  closed.

12-33     3.  Upon receiving the report, the clerk shall set a time and

12-34  place for a hearing of the report. The personal representative shall

12-35  send a copy of the report and shall give notice of the hearing, for the

12-36  period and in the manner provided in NRS 155.010, to:

12-37     (a) Each person whose interest is affected as an heir or devisee;

12-38  and

12-39     (b) The [Welfare Division of the] Department of Human

12-40  Resources, if the [Welfare Division] Department has filed a claim

12-41  against the estate.

12-42     4.  At the hearing, the court shall determine whether or not the

12-43  personal representative has used reasonable diligence in the

12-44  administration of the estate, and if the personal representative has

12-45  not, the court may:

13-1      (a) Subject to the provisions of NRS 143.037:

13-2          (1) Prescribe the time within which the estate must be closed;

13-3  or

13-4          (2) Allow the personal representative additional time for

13-5  closing and order a subsequent report; or

13-6      (b) Revoke the letters of the personal representative, appoint a

13-7  successor and prescribe a reasonable time within which the

13-8  successor shall close the estate.

13-9      Sec. 23.  NRS 145.060 is hereby amended to read as follows:

13-10     145.060  1.  A personal representative shall publish and mail

13-11  notice to creditors in the manner provided in NRS 155.020.

13-12     2.  Creditors of the estate must file their claims, due or to

13-13  become due, with the clerk, within 60 days after the mailing to the

13-14  creditors for those required to be mailed, or 60 days after the first

13-15  publication of the notice to creditors pursuant to NRS 155.020, and

13-16  within 10 days thereafter the personal representative shall allow or

13-17  reject the claims filed.

13-18     3.  Any claim which is not filed within the 60 days is barred

13-19  forever, except that if it is made to appear, by the affidavit of the

13-20  claimant or by other proof to the satisfaction of the court, that the

13-21  claimant did not have notice as provided in NRS 155.020, the claim

13-22  may be filed at any time before the filing of the final account.

13-23     4.  Every claim which is filed as provided in this section and

13-24  allowed by the personal representative[,] must then, and not until

13-25  then, be ranked as an acknowledged debt of the estate and be paid in

13-26  the course of administration, except that payment of small debts in

13-27  advance may be made pursuant to subsection 3 of NRS 150.230.

13-28     5.  If a claim filed by the [Welfare Division of the] Department

13-29  of Human Resources is rejected by the personal representative, the

13-30  [State Welfare Administrator] Director of the Department may,

13-31  within 20 days after receipt of the written notice of rejection,

13-32  petition the court for summary determination of the claim. A

13-33  petition for summary determination must be filed with the clerk,

13-34  who shall set the petition for hearing, and the petitioner shall give

13-35  notice for the period and in the manner required by NRS 155.010.

13-36  Allowance of the claim by the court is sufficient evidence of its

13-37  correctness, and it must be paid as if previously allowed by the

13-38  personal representative.

13-39     Sec. 24.  NRS 146.070 is hereby amended to read as follows:

13-40     146.070  1.  If a person dies leaving an estate the gross value

13-41  of which, after deducting any encumbrances, does not exceed

13-42  $50,000, and there is a surviving spouse or minor child or minor

13-43  children of the decedent, the estate must not be administered upon,

13-44  but the whole estate, after directing such payments as may be

13-45  deemed just, must be, by an order for that purpose, assigned and set

14-1  apart for the support of the surviving spouse or minor child or minor

14-2  children, or for the support of the minor child or minor children, if

14-3  there is no surviving spouse. Even if there is a surviving spouse, the

14-4  court may, after directing such payments, set aside the whole of the

14-5  estate to the minor child or minor children, if it is in their best

14-6  interests.

14-7      2.  If there is no surviving spouse or minor child of the decedent

14-8  and the gross value of a decedent’s estate, after deducting any

14-9  encumbrances, does not exceed $50,000, upon good cause shown,

14-10  the court shall order that the estate not be administered upon, but the

14-11  whole estate be assigned and set apart in the following order:

14-12     (a) To the payment of funeral expenses, expenses of last illness,

14-13  money owed to the Department of Human Resources as a result of

14-14  payment of benefits for Medicaid and creditors, if there are any; and

14-15     (b) Any balance remaining to the claimant or claimants entitled

14-16  thereto pursuant to a valid will of the decedent, and if there is no

14-17  valid will, pursuant to intestate succession.

14-18     3.  Proceedings taken under this section, whether or not the

14-19  decedent left a valid will, must not begin until at least 30 days after

14-20  the death of the decedent and must be originated by a petition

14-21  containing:

14-22     (a) A specific description of all the decedent’s property.

14-23     (b) A list of all the liens and mortgages of record at the date of

14-24  the decedent’s death.

14-25     (c) An estimate of the value of the property.

14-26     (d) A statement of the debts of the decedent so far as known to

14-27  the petitioner.

14-28     (e) The names and residences of the heirs and devisees of the

14-29  decedent and the age of any who is a minor and the relationship of

14-30  the heirs and devisees to the decedent, so far as known to the

14-31  petitioner.

14-32     4.  The clerk shall set the petition for hearing and the petitioner

14-33  shall give notice of the petition and hearing in the manner provided

14-34  in NRS 155.010 to the decedent’s heirs and devisees and to the

14-35  [State Welfare Administrator.] Director of the Department of

14-36  Human Resources. If a complete copy of the petition is not

14-37  enclosed with the notice, the notice must include a statement setting

14-38  forth to whom the estate is being set aside.

14-39     5.  No court or clerk’s fees may be charged for the filing of any

14-40  petition in, or order of court thereon, or for any certified copy of the

14-41  petition or order in an estate not exceeding $2,500 in value.

14-42     6.  If the court finds that the gross value of the estate, less

14-43  encumbrances, does not exceed the sum of $50,000, the court may

14-44  direct that the estate be distributed to the father or mother of a minor

14-45  heir or devisee, with or without the filing of any bond, or to a

15-1  custodian under chapter 167 of NRS, or may require that a general

15-2  guardian be appointed and that the estate be distributed to the

15-3  guardian, with or without bond, as in the discretion of the court is

15-4  deemed to be in the best interests of the minor. The court may direct

15-5  the manner in which the money may be used for the benefit of the

15-6  minor.

15-7      Sec. 25.  NRS 146.080 is hereby amended to read as follows:

15-8      146.080  1.  If a decedent leaves no real property, nor interest

15-9  therein, nor mortgage or lien thereon, in this state, and the gross

15-10  value of the decedent’s property in this state, over and above any

15-11  amounts due to the decedent for services in the Armed Forces of the

15-12  United States, does not exceed $20,000, a person who has a right to

15-13  succeed to the property of the decedent pursuant to the laws of

15-14  succession for a decedent who died intestate or pursuant to the valid

15-15  will of a decedent who died testate, on behalf of all persons entitled

15-16  to succeed to the property claimed, or the [State Welfare

15-17  Administrator] Director of the Department of Human Resources or

15-18  public administrator on behalf of the State or others entitled to the

15-19  property, may, 40 days after the death of the decedent, without

15-20  procuring letters of administration or awaiting the probate of the

15-21  will, collect any money due the decedent, receive the property of the

15-22  decedent, and have any evidences of interest, indebtedness or right

15-23  transferred to the claimant upon furnishing the person,

15-24  representative, corporation, officer or body owing the money,

15-25  having custody of the property or acting as registrar or transfer agent

15-26  of the evidences of interest, indebtedness or right, with an affidavit

15-27  showing the right of the affiant or affiants to receive the money or

15-28  property or to have the evidence transferred.

15-29     2.  An affidavit made pursuant to this section must state:

15-30     (a) The affiant’s name and address, and that the affiant is

15-31  entitled by law to succeed to the property claimed;

15-32     (b) The date and place of death of the decedent;

15-33     (c) That the gross value of the decedent’s property in this state,

15-34  except amounts due to the decedent for services in the Armed

15-35  Forces of the United States, does not exceed $20,000, and that the

15-36  property does not include any real property nor interest therein, nor

15-37  mortgage or lien thereon;

15-38     (d) That at least 40 days have elapsed since the death of the

15-39  decedent, as shown in a certified copy of the certificate of death of

15-40  the decedent attached to the affidavit;

15-41     (e) That no petition for the appointment of a personal

15-42  representative is pending or has been granted in any jurisdiction;

15-43     (f) That all debts of the decedent, including funeral and burial

15-44  expenses, and money owed to the Department of Human Resources

16-1  as a result of the payment of benefits for Medicaid, have been paid

16-2  or provided for;

16-3      (g) A description of the personal property and the portion

16-4  claimed;

16-5      (h) That the affiant has given written notice, by personal service

16-6  or by certified mail, identifying the affiant’s claim and describing

16-7  the property claimed, to every person whose right to succeed to the

16-8  decedent’s property is equal or superior to that of the affiant, and

16-9  that at least 14 days have elapsed since the notice was served or

16-10  mailed;

16-11     (i) That the affiant is personally entitled, or the Department of

16-12  Human Resources is entitled, to full payment or delivery of the

16-13  property claimed or is entitled to payment or delivery on behalf of

16-14  and with the written authority of all other successors who have an

16-15  interest in the property; and

16-16     (j) That the affiant acknowledges an understanding that filing a

16-17  false affidavit constitutes a felony in this state.

16-18     3.  If the affiant:

16-19     (a) Submits an affidavit which does not meet the requirements

16-20  of subsection 2 or which contains statements which are not entirely

16-21  true, any money or property the affiant receives is subject to all

16-22  debts of the decedent.

16-23     (b) Fails to give notice to other successors as required by

16-24  subsection 2, any money or property the affiant receives is held by

16-25  the affiant in trust for all other successors who have an interest in

16-26  the property.

16-27     4.  A person who receives an affidavit containing the

16-28  information required by subsection 2 is entitled to rely upon that

16-29  information, and if the person relies in good faith, the person is

16-30  immune from civil liability for actions based on that reliance.

16-31     5.  Upon receiving proof of the death of the decedent and an

16-32  affidavit containing the information required by this section:

16-33     (a) A transfer agent of any security shall change the registered

16-34  ownership of the security claimed from the decedent to the person

16-35  claiming to succeed to ownership of that security.

16-36     (b) A governmental agency required to issue certificates of

16-37  ownership or registration to personal property shall issue a new

16-38  certificate of ownership or registration to the person claiming to

16-39  succeed to ownership of the property.

16-40     6.  If any property of the estate not exceeding $20,000 is

16-41  located in a state which requires an order of a court for the transfer

16-42  of the property, or if the estate consists of stocks or bonds which

16-43  must be transferred by an agent outside this state, any person

16-44  qualified pursuant to the provisions of subsection 1 to have the

16-45  stocks or bonds or other property transferred may do so by obtaining

17-1  a court order directing the transfer. The person desiring the transfer

17-2  must file a petition, which may be ex parte, containing:

17-3      (a) A specific description of all the property of the decedent.

17-4      (b) A list of all the liens and mortgages of record at the date of

17-5  the decedent’s death.

17-6      (c) An estimate of the value of the property of the decedent.

17-7      (d) The names, ages of any minors, and residences of the

17-8  decedent’s heirs and devisees.

17-9      (e) A request for the court to issue an order directing the transfer

17-10  of the stocks or bonds or other property if the court finds the gross

17-11  value of the estate does not exceed $20,000.

17-12     (f) An attached copy of the executed affidavit made pursuant to

17-13  subsection 2.

17-14  If the court finds that the gross value of the estate does not exceed

17-15  $20,000 and the person requesting the transfer is entitled to it, the

17-16  court may enter an order directing the transfer.

17-17     Sec. 26.  NRS 147.070 is hereby amended to read as follows:

17-18     147.070  1.  A claim for an amount of $250 or more filed with

17-19  the clerk must be supported by the affidavit of the claimant that:

17-20     (a) The amount is justly due (or if the claim is not yet due, that

17-21  the amount is a just demand and will be due on the ..... day of ........).

17-22     (b) No payments have been made thereon which are not

17-23  credited.

17-24     (c) There are no offsets to the amount demanded to the

17-25  knowledge of the claimant or other affiant.

17-26     2.  Every claim filed with the clerk must contain the mailing

17-27  address of the claimant. Any written notice mailed by a personal

17-28  representative to the claimant at the address furnished is proper

17-29  notice.

17-30     3.  When the affidavit is made by any other person than the

17-31  claimant, the reasons why it is not made by the claimant must be set

17-32  forth in the affidavit.

17-33     4.  The oath may be taken before any person authorized to

17-34  administer oaths.

17-35     5.  The amount of interest must be computed and included in

17-36  the statement of the claim and the rate of interest determined.

17-37     6.  Except as otherwise provided in subsection 7, the court may,

17-38  for good cause shown, allow a defective claim or affidavit to be

17-39  corrected or amended on application made at any time before the

17-40  filing of the final account, but an amendment may not be made to

17-41  increase the amount of a claim after the time for filing a claim has

17-42  expired.

17-43     7.  The court shall allow the [Welfare Division of the]

17-44  Department of Human Resources to amend at any time before the

17-45  filing of the final account a claim for the payment of benefits for

18-1  Medicaid that the [Division] Department identifies after the original

18-2  claim has been filed.

18-3      Sec. 27.  NRS 147.130 is hereby amended to read as follows:

18-4      147.130  1.  If a claim is rejected by the personal

18-5  representative or the court, in whole or in part, the claimant must be

18-6  immediately notified by the personal representative, and the

18-7  claimant must bring suit in the proper court against the personal

18-8  representative within 60 days after the notice or file a timely petition

18-9  for summary determination pursuant to subsection 2, whether the

18-10  claim is due or not, or the claim is forever barred. A claimant must

18-11  be informed of the rejection of the claim by written notice

18-12  forwarded to the claimant’s mailing address by registered or

18-13  certified mail.

18-14     2.  If a claim filed by the [Welfare Division of the] Department

18-15  of Human Resources is rejected by the personal representative, the

18-16  [State Welfare Administrator] Director of the Department may,

18-17  within 20 days after receipt of the written notice of rejection,

18-18  petition the court for summary determination of the claim. A

18-19  petition for summary determination must be filed with the clerk,

18-20  who shall set the petition for hearing, and notice must be given for

18-21  the period and in the manner required by NRS 155.010. Allowance

18-22  of the claim by the court is sufficient evidence of its correctness, and

18-23  it must be paid as if previously allowed by the personal

18-24  representative.

18-25     3.  In any action brought upon a claim rejected in whole or in

18-26  part by the personal representative, if he resides out of the State or

18-27  has departed from the State, or cannot, after due diligence, be found

18-28  within the State, or conceals himself to avoid the service of

18-29  summons, the summons, together with a copy of the complaint,

18-30  must be mailed directly to the last address given by him, with a copy

18-31  to the attorney for the estate, and proof of the mailing must be filed

18-32  with the clerk where the administration of the estate is pending. This

18-33  service is the equivalent of personal service upon the personal

18-34  representative, but he has 30 days from the date of service within

18-35  which to answer.

18-36     4.  If the personal representative defaults after such service, the

18-37  default is sufficient grounds for his removal as personal

18-38  representative by the court without notice. Upon petition and notice,

18-39  in the manner provided for an application for letters of

18-40  administration, an administrator or an administrator with the will

18-41  annexed must be appointed by the court and, upon his qualification

18-42  as such, letters of administration or letters of administration with the

18-43  will annexed must be issued.

 

 

19-1      Sec. 28.  NRS 155.020 is hereby amended to read as follows:

19-2      155.020  1.  Notice of a petition for the probate of a will and

19-3  the issuance of letters and the notice to creditors must be given to:

19-4      (a) The persons respectively entitled thereto, including the [State

19-5  Welfare Administrator,] Director of the Department of Human

19-6  Resources, as provided in NRS 155.010; and

19-7      (b) The public, including creditors whose names and addresses

19-8  are not readily ascertainable, by publication on three dates of

19-9  publication before the hearing, and if the newspaper is published

19-10  more than once each week, there must be at least 10 days from the

19-11  first to last dates of publication, including both the first and last

19-12  days.

19-13     2.  Every publication required by this section must be made in a

19-14  newspaper published in the county where the proceedings are

19-15  pending, but if there is not such a newspaper, then in one having

19-16  general circulation in that county.

19-17     3.  The notice of the hearing upon the petition to administer the

19-18  estate must be in substantially the following form:

 

19-19  NOTICE OF THE HEARING UPON THE PETITION TO

19-20  ADMINISTER THE ESTATE

 

19-21     Notice is hereby given that ................................ has filed in this

19-22  court a petition for the probate of a will and for letters testamentary,

19-23  or for letters of administration, of the estate of ................................,

19-24  deceased, and a hearing has been set for the .......... day of the month

19-25  of................, of the year......, at .......... (a.m. or p.m.) at the

19-26  courthouse of the above-entitled court. All persons interested in the

19-27  estate are notified to appear and show cause why the petition should

19-28  not be granted.

19-29     Dated .......

 

19-30     4.  As soon as practicable after appointment, a personal

19-31  representative shall, in addition to publishing the notice to creditors,

19-32  mail a copy of the notice to those creditors whose names and

19-33  addresses are readily ascertainable as of the date of first publication

19-34  of the notice and who have not already filed a claim. The notice

19-35  must be in substantially the following form:

 

19-36  NOTICE TO CREDITORS

 

19-37     Notice is hereby given that the undersigned has been appointed

19-38  and qualified by the (giving the title of the court and the date of

19-39  appointment) as personal representative of the estate of

19-40  ................................, deceased. All creditors having claims against

20-1  the estate are required to file the claims with the clerk of the court

20-2  within .......... (60 or 90) days after the mailing or the first

20-3  publication (as the case may be) of this notice.

20-4      Dated .......

 

20-5      5.  If before the last day for the filing of a creditor’s claim under

20-6  NRS 147.040, the personal representative discovers the existence of

20-7  a creditor who was not readily ascertainable at the time of first

20-8  publication of the notice to creditors, the personal representative

20-9  shall immediately mail a copy of the notice to the creditor.

20-10     Sec. 29.  NRS 164.025 is hereby amended to read as follows:

20-11     164.025  1.  The trustee of a nontestamentary trust may after

20-12  the death of the settlor of the trust cause to be published a notice in

20-13  the manner specified in paragraph (b) of subsection 1 of NRS

20-14  155.020 and mail a copy of the notice to known or readily

20-15  ascertainable creditors.

20-16     2.  The notice must be in substantially the following form:

 

20-17  NOTICE TO CREDITORS

 

20-18     Notice is hereby given that the undersigned is the duly appointed

20-19  and qualified trustee of the ................ trust. ................, the settlor of

20-20  that trust died on ................. A creditor having a claim against the

20-21  trust estate must file his claim with the undersigned at the address

20-22  given below within 90 days after the first publication of this notice.

 

20-23     Dated........

 

20-24                                                                              ...............................

20-25                                                           Trustee

20-26                                                                              ...............................

20-27                                                           Address

 

20-28     3.  A person having a claim, due or to become due, against a

20-29  settlor or the trust must file the claim with the trustee within 90 days

20-30  after the mailing, for those required to be mailed, or 90 days after

20-31  publication of the first notice to creditors. Any claim against the

20-32  trust estate not filed within that time is forever barred. After

20-33  the expiration of the time, the trustee may distribute the assets of the

20-34  trust to its beneficiaries without personal liability to any creditor

20-35  who has failed to file a claim with the trustee.

20-36     4.  If the trustee knows or has reason to believe that the settlor

20-37  received public assistance during his lifetime, the trustee shall,

20-38  whether or not he gives notice to other creditors, give notice within

20-39  30 days after the death to the [Welfare Division of the] Department

21-1  of Human Resources in the manner provided in NRS 155.010. If

21-2  notice to the [Welfare Division] Department is required by this

21-3  subsection but is not given, the trust estate and any assets transferred

21-4  to a beneficiary remain subject to the right of the [Welfare Division]

21-5  Department to recover public assistance received.

21-6      5.  If a claim is rejected by the trustee, in whole or in part, the

21-7  trustee must, within 10 days [of] after the rejection, notify the

21-8  claimant of the rejection by written notice forwarded by registered

21-9  or certified mail to the mailing address of the claimant. The claimant

21-10  must bring suit in the proper court against the trustee within 60 days

21-11  after the notice is given, whether the claim is due or not, or the

21-12  claim is barred forever and the trustee may distribute the assets of

21-13  the trust to its beneficiaries without personal liability to any creditor

21-14  whose claim is barred forever.

21-15     Sec. 30.  NRS 422.2725 is hereby repealed.

21-16     Sec. 31.  Notwithstanding the provisions of sections 1, 3, 9 and

21-17  10 of this act that transfer the authority to adopt certain regulations

21-18  from the State Welfare Administrator to the Director of the

21-19  Department of Human Resources, any regulations adopted by the

21-20  State Welfare Administrator pursuant to sections 3, 9 or 10 of this

21-21  act before July 1, 2003, remain in effect and may be enforced by the

21-22  Director of the Department of Human Resources until the Director

21-23  adopts regulations to replace those regulations of the State Welfare

21-24  Administrator.

21-25     Sec. 32.  1.  This section and section 30 of this act become

21-26  effective upon passage and approval.

21-27     2.  Sections 1 to 29, inclusive, and 31 of this act become

21-28  effective on July 1, 2003.

 

21-29  TEXT OF REPEALED SECTION

 

21-30     422.2725  State Plan for Medicaid: Inclusion of requirement

21-31   that certain senior citizens are eligible for Medicaid for long

21-32  -term care.

21-33     1.  The Director shall include in the State Plan for Medicaid a

21-34   requirement that any senior citizen who purchases and receives

21-35   benefits for at least 3 years pursuant to a policy of health insurance

21-36   for long-term care that is approved by the Director and whose

21-37   annual household income is less than $200,000 is eligible for

21-38   Medicaid for long-term care.

21-39     2.  As used in this section:

22-1      (a) “Household income” has the meaning ascribed to it in

22-2  NRS 427A.480.

22-3      (b) “Senior citizen” means a person who is domiciled in this

22-4   state and is 55 years of age or older.

 

22-5  H