AB40,608,3 23(3) Recording of request for notice and termination of request for notice.
24(a) 1. Whenever an individual becomes eligible for public assistance, and at any time
25during the time that an individual is eligible for public assistance, the department

1may record a REQUEST FOR NOTICE OF TRANSFER OR ENCUMBRANCE AND
2NOTICE OF POTENTIAL CLAIM if the individual has any of the following
3ownership interests in real property:
AB40,608,54 a. A current ownership interest in real property, including a marital property
5interest.
AB40,608,96 b. At any time within 5 years before the individual applied for public assistance
7or during the time that the individual is eligible for public assistance, a marital
8property interest in real property with his or her current spouse, if that spouse
9currently holds title to the real property.
AB40,608,1210 2. The department shall record the document in the office of the register of
11deeds of the county in which the real property under subd. 1. a. or b., whichever is
12applicable, is located.
AB40,608,1413 3. In this paragraph, an interest in real property includes a vendee's or vendor's
14interest in a land contract or an interest in real property held in a revocable trust.
AB40,608,2415 (b) Whenever the department determines that, with respect to property
16against which a REQUEST FOR NOTICE OF TRANSFER OR ENCUMBRANCE
17AND NOTICE OF POTENTIAL CLAIM has been recorded, the department no
18longer requires notice when title to the property is transferred, an encumbrance is
19placed on the property, or an interest in the property is terminated, the department
20shall record a TERMINATION OF REQUEST FOR NOTICE OF TRANSFER OR
21ENCUMBRANCE AND NOTICE OF POTENTIAL CLAIM in the office of the
22register of deeds of the county in which the REQUEST FOR NOTICE OF
23TRANSFER OR ENCUMBRANCE AND NOTICE OF POTENTIAL CLAIM with
24respect to the property was recorded.
AB40,609,10
1(3m) Disclosure of request for notice. If, in the course of a title search on
2real property, a title insurance company or agent finds that a REQUEST FOR
3NOTICE OF TRANSFER OR ENCUMBRANCE AND NOTICE OF POTENTIAL
4CLAIM has been recorded against the property but a TERMINATION OF
5REQUEST FOR NOTICE OF TRANSFER OR ENCUMBRANCE AND NOTICE OF
6POTENTIAL CLAIM has not been recorded against the property, the title insurance
7company or agent shall disclose that a REQUEST FOR NOTICE OF TRANSFER OR
8ENCUMBRANCE AND NOTICE OF POTENTIAL CLAIM has been recorded
9against the property in any report submitted preliminary to issuing, or in any
10commitment to offer, a certificate of title insurance for the real property.
AB40,609,18 11(4) Transferring, encumbering, or terminating an interest in property;
12clearance by the department.
(a) Any person transferring title to, encumbering, or
13terminating an interest in, property against which a REQUEST FOR NOTICE OF
14TRANSFER OR ENCUMBRANCE AND NOTICE OF POTENTIAL CLAIM has
15been recorded, but against which a TERMINATION OF REQUEST FOR NOTICE
16OF TRANSFER OR ENCUMBRANCE AND NOTICE OF POTENTIAL CLAIM has
17not been recorded, shall notify the department of the proposed transfer,
18encumbrance, or termination of interest.
AB40,609,2319 (b) If, on the date that the person sends the notice under par. (a), the recipient
20who had the ownership interest in the property when the department recorded the
21REQUEST FOR NOTICE OF TRANSFER OR ENCUMBRANCE AND NOTICE OF
22POTENTIAL CLAIM is alive, the person may transfer title to, encumber, or
23terminate an interest in, the property with no further action by the department.
AB40,610,224 (c) If, on the date that the person sends the notice under par. (a), the recipient
25who had the ownership interest in the property when the department recorded the

1REQUEST FOR NOTICE OF TRANSFER OR ENCUMBRANCE AND NOTICE OF
2POTENTIAL CLAIM is deceased, all of the following apply:
AB40,610,53 1. The department shall determine whether it has a claim against the property
4for amounts paid on behalf of the recipient that are recoverable under s. 46.27 (7g)
5(c) 1., 49.496 (3) (a), or 49.682 (2) (a).
AB40,610,106 2. If the department determines that it has no claim under subd. 1., the
7department shall issue to the person seeking to transfer title to, encumber, or
8terminate an interest in, the real property a CERTIFICATE OF CLEARANCE,
9which the person shall record along with the instrument transferring title to,
10encumbering, or terminating the interest in, the property.
AB40,610,1211 3. If the department determines that it has a claim under subd. 1., the
12department shall follow the procedure under sub. (5).
AB40,610,1513 4. Transferring title to, encumbering, or terminating an interest in, the
14property is not valid unless the department issues to the person, and the person
15records, a CERTIFICATE OF CLEARANCE.
AB40,610,17 16(5) Procedure if department has a claim against real property. (a) This
17subsection applies in any of the following situations:
AB40,610,1918 1. If the department determines that it has a claim against real property under
19sub. (4) (c) 1.
AB40,611,220 2. Upon the death of a recipient who, immediately before death, had an
21ownership interest in real property, including a marital property interest, or whose
22surviving spouse has an ownership interest in real property in which the recipient
23had a marital property interest with that spouse at any time within 5 years before
24the recipient applied for public assistance or during the time that the recipient was
25eligible for public assistance, regardless of whether the department recorded a

1REQUEST FOR NOTICE OF TRANSFER OR ENCUMBRANCE AND NOTICE OF
2POTENTIAL CLAIM with respect to the property.
AB40,611,73 (b) Unless the property is being transferred under s. 867.03 or through formal
4or informal administration of the recipient's estate, the department shall send to the
5person providing the notice to the department under sub. (4) (a), or to the surviving
6owner of the property, whichever is applicable, a statement of claim that states all
7of the following:
AB40,611,98 1. That the department has a claim against the property that it intends to
9recover from the property.
AB40,611,1010 2. The amount of and basis for the claim.
AB40,611,1411 3. That the person has a right to an administrative hearing under par. (bm),
12which must be requested within 45 days after the department sent the statement of
13claim, on the extent and fair market value of the recipient's interest in the property
14and how to request an administrative hearing.
AB40,611,1715 4. That the transferee of the recipient's interest in the property or the surviving
16owner of the property may request from the department a hardship waiver and how
17to request a hardship waiver.
AB40,611,2218 (bm) A person who receives a statement of claim from the department under
19par. (b) is entitled to and may, within 45 days after the department sent the
20statement of claim, request a departmental fair hearing on the value of the property
21and the extent of the recipient's interest in the property. The value of the recipient's
22interest in the property shall be determined in the manner provided in s. 49.849 (5c).
AB40,612,223 (c) The department may recover against the property in the manner
24determined by the department to be appropriate, including by placing a lien on the

1property. Subject to par. (d), the department may enforce a lien on the property by
2foreclosure in the same manner as a mortgage on real property.
AB40,612,43 (d) The department may not enforce a lien under par. (c) as long as any of the
4following is alive:
AB40,612,55 1. The recipient's spouse.
AB40,612,76 2. The recipient's child who is under age 21 or disabled, as defined in s. 49.468
7(1) (a) 1.
AB40,612,108 (e) If the recipient's surviving spouse or child who is under age 21 or disabled
9refinances a mortgage on the property, any lien under par. (c) is subordinate to the
10new encumbrance.
AB40,612,1211 (f) The department shall release a lien under par. (c) that the department could
12not enforce because of par. (d), if any of the following applies:
AB40,612,1513 1. The recipient's surviving spouse or child who is under age 21 or disabled sells
14the property for fair market value, as described in s. 49.849 (5c) (d), during the
15spouse's or child's lifetime.
AB40,612,2216 2. The recipient's surviving spouse or child who is under age 21 or disabled
17transfers the property for less than fair market value, as described in s. 49.849 (5c)
18(d), during the spouse's or child's lifetime, the transferee sells the property during the
19spouse's or child's lifetime and places proceeds equal to the lesser of the department's
20lien or the sale proceeds due to the seller in a trust or bond, and the department is
21paid the secured amount upon the death of the recipient's spouse or disabled child
22or when the recipient's child who is not disabled reaches age 21.
AB40,613,423 3. The surviving owner or transferee of the property, who is not the recipient's
24surviving spouse or child who is under age 21 or disabled, sells the property during
25the lifetime of the recipient's surviving spouse or child who is under age 21 or

1disabled and places proceeds equal to the lesser of the department's lien or the sale
2proceeds due to the seller in a trust or bond, and the department is paid the secured
3amount upon the death of the recipient's spouse or disabled child or when the
4recipient's child who is not disabled reaches age 21.
AB40,1222 5Section 1222. 49.849 of the statutes is created to read:
AB40,613,7 649.849 Recovery of correct payments under certain public assistance
7programs.
(1) Definitions. In this section:
AB40,613,98 (a) "Decedent" means a deceased recipient or a deceased nonrecipient surviving
9spouse, whichever is applicable.
AB40,613,1010 (b) "Department" means the department of health services.
AB40,613,1311 (c) "Nonrecipient surviving spouse" means any person who was married to a
12recipient while the recipient was receiving public assistance and who survived the
13recipient.
AB40,613,1814 (d) 1. "Property of a decedent" means all real and personal property to which
15the recipient held any legal title or in which the recipient had any legal interest
16immediately before death, to the extent of that title or interest, including assets
17transferred to a survivor, heir, or assignee through joint tenancy, tenancy in common,
18survivorship, life estate, living trust, or any other arrangement.
AB40,613,2419 2. Notwithstanding subd. 1., "property of a decedent" includes all real and
20personal property in which the nonrecipient surviving spouse had an ownership
21interest at the recipient's death and in which the recipient had a marital property
22interest with that nonrecipient surviving spouse at any time within 5 years before
23the recipient applied for public assistance or during the time that the recipient was
24eligible for public assistance.
AB40,614,4
1(e) "Public assistance" means any services provided as a benefit under a
2long-term care program, as defined in s. 49.496 (1) (bk), medical assistance under
3subch. IV, long-term community support services funded under s. 46.27 (7), or aid
4under s. 49.68, 49.683, or 49.685.
AB40,614,55 (f) "Recipient" means a person who received public assistance.
AB40,614,10 6(2) Recoverable amounts. (c) There is a presumption, which may be rebutted
7by clear and convincing evidence, that all property of the deceased nonrecipient
8surviving spouse was marital property held with the recipient and that 100 percent
9of the property of the deceased nonrecipient surviving spouse is subject to the
10department's claim under par. (a).
AB40,614,17 11(3) Transmittal of property upon receipt of affidavit. (a) Any property of a
12decedent that is transferred by a person who has possession of the property at the
13time of the decedent's death is subject to the right of the department to recover the
14amounts specified in sub. (2) (a). Upon request, the person who transferred the
15property shall provide to the department information about the property of the
16decedent that the person has transferred and information about the persons to whom
17the property was transferred.
AB40,614,1918 (c) An affidavit under this subsection shall contain all of the following
19information:
AB40,614,2120 1. That the department has a claim against the property that it intends to
21recover from the property.
AB40,614,2222 2. The amount of and basis for the claim.
AB40,615,223 3. That the person may have a right to an administrative hearing under sub.
24(5m), which must be requested within 45 days after the department sent the

1affidavit, on the extent and fair market value of the recipient's interest in the
2property.
AB40,615,33 4. How to request an administrative hearing under sub. (5m).
AB40,615,54 5. That the person may request from the department a hardship waiver, if the
5person co-owned the property with the decedent or is a beneficiary of the property.
AB40,615,66 6. How to request a hardship waiver under subd. 5.
AB40,615,8 7(4) Recovery against real property. (c) All of the following apply to a lien
8under par. (a) that the department may not enforce because of par. (b):
AB40,615,119 1. If the decedent's surviving spouse or child who is under age 21 or disabled
10refinances a mortgage on the real property, the lien is subordinate to the new
11encumbrance.
AB40,615,1312 2. The department shall release the lien in the circumstances described in s.
1349.848 (5) (f).
AB40,615,18 14(4m) Allowable costs of sale of real property. (a) Subject to par. (b), if any
15property of a decedent that is real property has been sold after the death of the
16decedent, only the following reasonable expenses, if any, incurred in preserving or
17disposing of the real property may be deducted from the sale proceeds that the
18department may recover:
AB40,615,2019 1. Closing costs of sale, including reasonable attorney fees of the seller, the cost
20of title insurance, and recording costs.
AB40,615,2121 2. Property insurance premiums.
AB40,615,2222 3. Property taxes due.
AB40,615,2323 4. Utility costs necessary to preserve the property.
AB40,616,3
15. Expenses incurred in providing necessary maintenance or making necessary
2repairs, without which the salability of the property would be substantially
3impaired.
AB40,616,64 (b) Any expense under par. (a) may be deducted from the sale proceeds only if
5it is documented and approved by the department and it was not incurred while any
6other individual was living on the property.
AB40,616,8 7(5c) Value of recipient's interest. For purposes of determining the value of
8the recipient's interest in property of the decedent, all of the following apply:
AB40,616,129 (a) If the recipient held title to real property jointly with one or more persons
10other than his or her spouse, the recipient's interest in the real property is equal to
11the fractional interest that the recipient would have had in the property if the
12property had been held with the other owner or owners as tenants in common.
AB40,616,1513 (b) If the recipient held title to personal property jointly with one or more
14persons other than his or her spouse, the recipient's interest in the personal property
15is equal to either of the following:
AB40,616,1716 1. The percentage interest that was attributed to the recipient when his or her
17eligibility for public assistance was determined.
AB40,616,2018 2. If the percentage interest was not determined as provided in subd. 1., the
19fractional interest that the recipient would have had in the property if the property
20had been held with the other co-owner or co-owners as tenants in common.
AB40,616,2521 (c) If the recipient held a life estate in real property, the recipient's interest is
22equal to the recipient's percentage of ownership in the property based on the
23recipient's age on the date of death and calculated using the fair market value of the
24property and life estate-remainderman tables used by the department to value life
25estates for purposes of determining eligibility for Medical Assistance.
AB40,617,5
1(d) A property's fair market value is the price that a willing buyer would pay
2a willing seller for the purchase of the property. The burden of proof for establishing
3a property's fair market value is on the surviving owners or beneficiaries, or their
4representatives. Fair market value must be established through a credible
5methodology, which may include an appraisal performed by a licensed appraiser.
AB40,617,12 6(5m) Fair hearing. A person who has possession of any property of the
7decedent, or who receives an affidavit from the department under sub. (3) (c) for
8transmittal of any property of the decedent, is entitled to and may, within 45 days
9after the affidavit was sent, request a departmental fair hearing on the value of the
10property and the extent of the recipient's interest in the property, if the property is
11not being transferred under s. 867.03 or through formal or informal administration
12of the decedent's estate.
AB40,617,25 13(5r) Action or order to enforce recovery. (a) If, after receipt of an affidavit
14under sub. (3), a person who possesses property of a decedent does not transmit the
15property to the department or timely request a hearing, the department may bring
16an action to enforce its right to collect amounts specified in sub. (2) (a) from the
17property or may issue an order to compel transmittal of the property. Any person
18aggrieved by an order issued by the department under this paragraph may appeal
19the order as a class 3 proceeding, as defined in s. 227.01 (3) (c), under ch. 227 by filing
20a request for appeal, within 30 days after the date of the order, with the division of
21hearings and appeals created under s. 15.103 (1). The date on which the division of
22hearings and appeals receives the request for appeal shall be the date of service. The
23only issue at the hearing shall be whether the person has transmitted the property
24to the department. The decision of the division of hearing and appeals shall be the
25final decision of the department.
AB40,618,12
1(b) If any person named in an order to compel transmittal of property issued
2under par. (a) fails to transmit the property under the terms of the order and no
3contested case to review the order is pending and the time for filing for a contested
4case review has expired, the department may present a certified copy of the order to
5the circuit court for any county. The sworn statement of the secretary shall be
6evidence of the department's right to collect amounts specified in sub. (2) (a) from the
7property and of the person's failure to transmit the property to the department. The
8circuit court shall, without notice, render judgment in accordance with the order. A
9judgment rendered under this paragraph shall have the same effect and shall be
10entered in the judgment and lien docket and may be enforced in the same manner
11as if the judgment had been rendered in an action tried and determined by the circuit
12court.
AB40,618,1413 (c) The recovery procedure under this subsection is in addition to any other
14recovery procedure authorized by law.
AB40,618,15 15(6) Payments from recovered amounts.
AB40,1223 16Section 1223. 49.85 (title) of the statutes is amended to read:
AB40,618,18 1749.85 (title) Certification of certain public assistance overpayments,
18payment recoveries,
and delinquent loan repayments.
AB40,1224 19Section 1224. 49.85 (2) (a) (intro.) of the statutes is amended to read:
AB40,619,220 49.85 (2) (a) (intro.) At least annually, the department of health services shall
21certify to the department of revenue the amounts that, based on the notifications
22received under sub. (1) and on other information received by the department of
23health services, the department of health services has determined that it may
24recover under s. 49.45 (2) (a) 10., 49.497, 49.793, or , 49.847, or 49.849, except that the

1department of health services may not certify an amount under this subsection
2unless all of the following apply:
AB40,1225 3Section 1225. 49.85 (2) (a) 4. of the statutes is created to read:
AB40,619,54 49.85 (2) (a) 4. If the determination relates to recovery of an amount under s.
549.849, the determination was rendered to a judgment under s. 49.849 (5r) (b).
AB40,1226 6Section 1226. 49.85 (3) (a) 1. of the statutes is amended to read:
AB40,619,107 49.85 (3) (a) 1. Inform the person that the department of health services
8intends to certify to the department of revenue an amount that the department of
9health services has determined to be due under s. 49.45 (2) (a) 10., 49.497, 49.793,
10or, 49.847, or 49.849, for setoff from any state tax refund that may be due the person.
AB40,1227 11Section 1227. 49.857 (1) (d) 14m. of the statutes is created to read:
AB40,619,1212 49.857 (1) (d) 14m. A registration issued under ss. 202.12 to 202.14 or 202.22.
AB40,1228 13Section 1228. 50.01 (1g) (h) of the statutes is created to read:
AB40,619,1614 50.01 (1g) (h) A private residence that is the home to adults who independently
15arrange for and receive care, treatment, or services for themselves from a person or
16agency that has no authority to exercise direction or control over the residence.
AB40,1229 17Section 1229. 50.03 (4m) (b) of the statutes is amended to read:
AB40,620,1018 50.03 (4m) (b) If the applicant for licensure as a community-based residential
19facility has not been previously licensed under this subchapter or if the
20community-based residential facility is not in operation at the time application is
21made, the department shall issue a probationary license, except that the department
22may deny licensure to any person who conducted, maintained, operated or permitted
23to be maintained or operated a community-based residential facility for which
24licensure was revoked within 5 years before application is made. A probationary
25license shall be valid for up to 12 months from the date of issuance unless sooner

1suspended or revoked under sub. (5g). Prior to the expiration of a probationary
2license, the department shall inspect evaluate the community-based residential
3facility and, if. In evaluating the community-based residential facility, the
4department may conduct an inspection of the community-based residential facility.
5If, after the department evaluates the community-based residential facility, the
6department finds that
the community-based residential facility meets the
7applicable requirements for licensure, the department shall issue a regular license
8under sub. (4) (a) 1. b. If the department finds that the community-based residential
9facility does not meet the requirements for licensure, the department may not issue
10a regular license under sub. (4) (a) 1. b.
AB40,1230 11Section 1230. 50.14 (2) (bm) of the statutes is amended to read:
AB40,620,1712 50.14 (2) (bm) For intermediate care facilities for persons with an intellectual
13disability, an amount calculated by multiplying the projected annual gross revenues
14of all intermediate care facilities for persons with an intellectual disability in this
15state by 0.055, dividing the product by the number of licensed beds of intermediate
16care facilities for persons with an intellectual disability in this state and dividing the
17quotient by 12
$910.
AB40,1231 18Section 1231. 50.14 (2m) of the statutes is repealed.
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