Sec.17b-198-18. Methods of recovery

(a) Recovering from interests assigned to the department. (1) Subject to the provisions of subdivision (2) of this subsection, the department shall, pursuant to the assignment of interest required under subsection (f) of section 17b-198-6 of the Regulations of Connecticut State Agencies, recover an assistance unit's interest in:

(A) The settlement of a decedent's estate, provided the department shall recover from the assistance unit's interest in such estate an amount not to exceed the amount of SAGA benefits paid to such assistance unit as of the date the assistance unit became entitled to use assets from such estate for his or her benefit, or fifty per cent of the assets from the estate that are payable to such member, whichever is less;

(B) The net proceeds of any monetary damages or settlement received by such assistance unit in connection with a cause of action, provided the department shall recover such proceeds in an amount not to exceed the amount of SAGA benefits paid to such assistance unit as of the date of the award of such proceeds, or fifty per cent of such proceeds after payment of all expenses connected with such cause of action, whichever is less; and

(C) A retroactive SSI benefits award, provided that the portion of such award recovered by the department shall be prorated by the number of members in such assistance unit's SSI assistance unit and shall not exceed the amount of SAGA benefits paid during the period the retroactive SSI benefits award is intended to cover.

(2) In no event shall the department make a recovery under subdivision (1) of this subsection from a person who is under eighteen years of age. Notwithstanding the provisions of said subdivision, the department shall not recover (A) attorney's fees paid by the department on behalf of an assistance unit in connection with a successful appeal of a Social Security Administration denial of SSI benefits, or (B) any portion of a monetary award or settlement constituting a retroactive rent abatement, refund of a security deposit or relocation assistance following displacement from a condominium conversion.

(b) Recovery by lien. (1) The department shall place a lien on any property situated in Connecticut that is owned by the assistance unit member or such member's spouse. The effective date of such lien shall be the date of the initial award of benefits. Such lien shall be in an amount equal to the amount of benefits paid to the assistance unit pursuant to SAGA. If such property is jointly owned by such member or such member's spouse and another person, such lien shall be placed only on the share of the property owned by such member or such member's spouse. In addition, whenever the department pays for repairs to a property pursuant to subsection (d) of section 17b-198-11 of the Regulations of Connecticut State Agencies, the department shall place a lien on such property in an amount equal to the amount paid by the department for such repairs. Except as provided in subdivision (2) of this subsection, if the assistance unit member sells property used as his or her principal residence that is encumbered by a lien authorized pursuant to this subsection, the department shall collect an amount not to exceed the amount secured by such lien from the proceeds of such sale and release such lien. The department shall determine whether the assistance unit member remains eligible for assistance pursuant to SAGA following the sale of any such property.

(2) If an assistance unit member (A) sells property used as his or her principal residence that is encumbered by a lien authorized pursuant to this subsection, (B) intends to use the proceeds of such sale to purchase a different property to be used as his or her new principal residence, and (C) remains eligible for assistance pursuant to SAGA following such sale and purchase, the department shall release such lien, postpone collection of the amount secured by such lien and immediately place a separate lien on the newly purchased property in an amount calculated by adding to the amount of the former lien the amount of any additional benefits paid to or on behalf of such assistance unit pursuant to SAGA.

(c) Voluntary recovery. Legal action. The department may require an assistance unit member who (1) loses an exclusion for a previously excluded asset or form of income, (2) receives a lump-sum payment, such as, but not limited to, lottery winnings, or (3) converts a previously excluded asset to cash, to voluntarily repay the department in an amount not to exceed the total amount of SAGA benefits previously issued to or on behalf of such assistance unit if such asset, income or payment has not been assigned to the department or secured by a lien, as described in subsections (a) and (b) of this section. If such a member refuses to voluntarily repay the department, the department may, in conjunction with the Office of the Attorney General, initiate a legal action to recover from any such asset, income or payment an amount not to exceed the total amount of SAGA benefits previously issued to or on behalf of such member. In lieu of pursuing recovery pursuant to this subsection, the department may establish a period of ineligibility for such member.

(d) Recovery from former spouses obligated to provide alimony or support. If an assistance unit member's former spouse fails or refuses to make alimony or support payments to such member as required by a court order, the department shall recover from such former spouse an amount not to exceed (1) the amount of SAGA benefits paid to such member, or (2) the amount of alimony or support owed by such former spouse to such member, if less than the amount of SAGA benefits paid to such member. Whenever the department determines that, based on the financial information before it, a former spouse is able to contribute more to the assistance unit member than required by court order, the department shall assist such member in pursuing a modification of such order increasing the amount of alimony or support owed.

(e) Recovery from a beneficiary's estate. (1) Except as provided in subdivision (2) of this subsection, upon the death of any person who received assistance pursuant to SAGA, the department shall recover from the estate of such person an amount not to exceed the total amount of benefits paid to such person. The department shall pursue recovery from such person's estate by filing a claim in probate court against such estate. The department's claim against any such estate shall have priority over all claims except:

(A) Expenses of last sickness not to exceed an amount established by state law;

(B) Funeral and burial expenses not to exceed an amount established by state law, provided such amount shall be reduced by the amount of any revocable or irrevocable burial fund held by such person;

(C) Administrative expenses, including, but not limited to, probate fees and taxes, and fiduciary fees, in an amount not to exceed that permitted by state law; and

(D) Any other claim given priority by state or federal law in an amount not to exceed that permitted by applicable state or federal law.

(2) In no event shall the department make a recovery from a decedent's estate under subdivision (1) of this subsection:

(A) Of benefits paid to or on behalf of the decedent while he or she was under eighteen years of age;

(B) Of benefits previously issued to or on behalf of the decedent that were recovered by any other means during such decedent's lifetime;

(C) Of attorney's fees paid by the department on behalf of the decedent in connection with a successful appeal of a Social Security Administration denial of SSI benefits; and

(D) Of benefits paid to or on behalf of the decedent if the probate court administering such estate rules that the amount that would otherwise be recovered from the estate is necessary for the support of the decedent's dependent child who is under twenty-one years of age, surviving spouse or parent.

(f) Recovery of benefits obtained by fraud or improper transfer of assets. Whenever the department discovers that an assistance unit obtained SAGA benefits through fraud, the department shall act in conjunction with the Office of the Chief State’s Attorney to initiate a legal action to recover the full amount of such benefits. Whenever the department discovers that an assistance unit transferred an asset in order to establish eligibility for assistance pursuant to SAGA, as described in subsection (f) of section 17b-198-5 of the Regulations of Connecticut State Agencies, and the transferee refuses to return such asset to the assistance unit, the department, in conjunction with the Office of the Attorney General, shall initiate a legal action against such transferee seeking either to recover an amount not to exceed the amount of benefits paid on behalf of the assistance unit or to void the transfer of such asset.

(Effective October 11, 2016)