H-3973              _______________________________________________

                                                   HOUSE BILL NO. 1803

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representative J. King

Read first time 1/23/86 and referred to Committee on Ways & Means.

AN ACT Relating to nursing homes; and amending RCW 74.09.532, 74.09.536, and 74.09.538.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 1, chapter 3, Laws of 1981 2nd ex. sess. and RCW 74.09.532 are each amended to read as follows:

          A person is ineligible for medical assistance or the limited casualty program for the medically needy for a period determined under RCW 74.09.534 if the person ((knowingly and wilfully)) assigns or transfers cash or other resources at less than fair market value after December 1, 1981, exclusively for the purpose of qualifying or continuing to qualify for such medical care within two years preceding the date of application for such care:  PROVIDED, That for the purpose of qualifying for such care and notwithstanding the provisions of chapter 26.16 RCW, this section shall not prohibit the voluntary transfer or assignment between spouses of cash or resources not to exceed .......... .

        Sec. 2.  Section 3, chapter 3, Laws of 1981 2nd ex. sess. and RCW 74.09.536 are each amended to read as follows:

          The department, by rule, shall adopt procedures to provide due process for applicants or recipients found not to qualify for medical assistance or the limited casualty program for the medically needy.  ((At any hearing the department shall prove by a preponderance of the evidence that the person knowingly and wilfully assigned or transferred cash or other resources at less than fair market value for the purpose of qualifying or continuing to qualify for the benefits or care.))  If the prevailing party in such an action is the person, the person shall be awarded reasonable attorney fees.

Any transaction described in RCW 74.09.532 is presumed to have been for the purpose of establishing eligibility or qualifying or continuing to qualify for the medical assistance or limited casualty program, unless the individual or recipient proves that the transaction was exclusively for some other purpose.

        Sec. 3.  Section 4, chapter 3, Laws of 1981 2nd ex. sess. and RCW 74.09.538 are each amended to read as follows:

          (1) Any person who ((knowingly and wilfully)) receives cash or resources transferred or assigned for less than  fair market value after December 1, 1981, to enable an applicant or recipient to qualify for assistance under RCW 74.09.510 or 74.09.700 is guilty of a gross misdemeanor.

          (2) Any person who knowingly and wilfully receives cash or resources transferred or assigned for less than fair market value is liable for a civil penalty equal to the uncompensated value of the cash or resources transferred or assigned at less than fair market value.  The civil penalty shall not exceed the cost of assistance rendered by the department to an applicant or recipient.  The person may rebut the presumption that the transfer or assignment was made exclusively for the purpose of enabling the applicant or recipient to qualify or continue to qualify for assistance.  The prevailing party in such an action shall be awarded reasonable attorney fees.