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