Bar News - February 3, 2006
Text of Bill Criminalizing Public Benefit Asset Transfers
SENATE BILL 356-FN
AN ACT relative to undue hardship knowingly caused by persons aiding in the transfer of assets.
SPONSORS: Sen. Clegg, Dist 14; Sen. Morse, Dist 22; Sen. Gallus, Dist 1; Sen. D’Allesandro, Dist 20; Rep. Kurk, Hills 7; Rep. Newton, Straf 1; Rep. Major, Rock 8; Rep. D. Eaton, Ches 2
COMMITTEE: Judiciary
ANALYSIS
This bill clarifies undue hardship for purposes of public assistance. This bill also prohibits the knowing transfer of assets for purposes of collecting public assistance.
Explanation:
Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and strikethrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
AN ACT relative to undue hardship knowingly caused by persons aiding in the transfer of assets.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraphs; Undue Hardship; Knowing Transfer of Assets. Amend RSA 167:4 by inserting after paragraph III the following new paragraphs:
III-a. Pursuant to section 1917(c)(2)(D) of the federal Social Security Act, a transfer of asset penalty shall not be imposed if the penalty would result in an undue hardship to the transferor under the following conditions:
(a) The asset was transferred by an agent or authorized representative and it can be demonstrated and documented that the individual lacked the mental capacity to comprehend the disqualifying nature of the act; and
(1) A written and signed statement by a licensed physician states that the individual was mentally incapacitated at the time of the transfer; or
(2) An order of findings from a probate court concerning the individual’s competency is provided to the district office.
(b) Application of the penalty would deprive the individual of necessary care such that his or her health or life would be endangered.
III-b. Any person, corporation, limited liability company, professional association, partnership, or other entity who aids in a transfer of assets knowing the transfer would or could subject the transferee to a financial status requiring state, federal, county, or municipal assistance under this chapter or RSA 161 shall be guilty of a misdemeanor. The asset transferred, any proceeds realized from it, or any asset owned by a person who profited in any way from the transfer shall be subject to a lien sufficient to pay for recovery of the public assistance provided under the state, federal, county, or municipal assistance program.
III-c. Notwithstanding any other provision of law, a lien under paragraph III-b shall take precedence over any lien other than a mortgage or tax lien.
2 Effective Date. This act shall take effect January 1, 2007.
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