Bill Text: IA HF648 | 2015-2016 | 86th General Assembly | Amended
Bill Title: A bill for an act relating to Medicaid special needs trusts. (Formerly HF 198)
Sponsorship: Committee Bill
Status: (Engrossed - Dead) 2015-05-14 - Subcommittee, Bolkcom, Ragan, and Segebart. S.J. 1033. [HF648 Detail]
Download: Iowa-2015-HF648-Amended.html
House File 648 - Reprinted HOUSE FILE BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 198) (As Amended and Passed by the House May 12, 2015) A BILL FOR 1 An Act relating to Medicaid special needs trusts. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: HF 648 (3) 86 pf/nh/md PAG LIN 1 1 Section 1. Section 633C.1, subsection 8, Code 2015, is 1 2 amended by striking the subsection. 1 3 Sec. 2. Section 633C.2, Code 2015, is amended by striking 1 4 the section and inserting in lieu thereof the following: 1 5 633C.2 Disposition of medical assistance special needs 1 6 trusts. 1 7 Any income or assets added to or received by and any income 1 8 or principal retained in a medical assistance special needs 1 9 trust shall be used in accordance with a standard that is 1 10 no more restrictive than specified under federal law. All 1 11 distributions from a medical assistance special needs trust 1 12 shall be for the sole benefit of the beneficiary to enhance 1 13 the quality of life of the beneficiary, and the trustee shall 1 14 have sole discretion regarding such disbursements to ensure 1 15 compliance with beneficiary eligibility requirements. Any 1 16 distinct disbursement in excess of one thousand dollars shall 1 17 be subject to review by the district court sitting in probate. 1 18 The department shall adopt rules pursuant to chapter 17A for 1 19 the establishment and disposition of medical assistance special 1 20 needs trusts in accordance with this section. 1 21 Sec. 3. Section 633C.4, subsection 2, Code 2015, is amended 1 22 to read as follows: 1 23 2. The trustee of a medical assistance income trust or 1 24 a medical assistance special needs trust is a fiduciary for 1 25 purposes of chapter 633A and, in the exercise of the trustee's 1 26 fiduciary duties, the state shall be considered a beneficiary 1 27 of the trust. Regardless of the terms of the trust, the 1 28 trustee shall not take any action that is not prudent in light 1 29 of the state's interest in the trust. Notwithstanding any 1 30 provision of chapter 633A to the contrary, the trustee of a 1 31 medical assistance special needs trust shall be subject to the 1 32 jurisdiction of the district court sitting in probate and shall 1 33 submit an accounting of the disposition of the trust to the 1 34 district court sitting in probate on an annual basis. HF 648 (3) 86 pf/nh/md
