Illinois General Assembly - Full Text of HB4979
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Full Text of HB4979  102nd General Assembly


Rep. Natalie A. Manley

Filed: 2/10/2022





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2    AMENDMENT NO. ______. Amend House Bill 4979 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Public Aid Code is amended by
5changing Section 3-1.2 as follows:
6    (305 ILCS 5/3-1.2)  (from Ch. 23, par. 3-1.2)
7    Sec. 3-1.2. Need. Income available to the person, when
8added to contributions in money, substance, or services from
9other sources, including contributions from legally
10responsible relatives, must be insufficient to equal the grant
11amount established by Department regulation for such person.
12    In determining earned income to be taken into account,
13consideration shall be given to any expenses reasonably
14attributable to the earning of such income. If federal law or
15regulations permit or require exemption of earned or other
16income and resources, the Illinois Department shall provide by



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1rule and regulation that the amount of income to be
2disregarded be increased (1) to the maximum extent so required
3and (2) to the maximum extent permitted by federal law or
4regulation in effect as of the date this amendatory Act
5becomes law. The Illinois Department may also provide by rule
6and regulation that the amount of resources to be disregarded
7be increased to the maximum extent so permitted or required.
8Subject to federal approval, resources (for example, land,
9buildings, equipment, supplies, or tools), including farmland
10property and personal property used in the income-producing
11operations related to the farmland (for example, equipment and
12supplies, motor vehicles, or tools), necessary for
13self-support, up to $6,000 of the person's equity in the
14income-producing property, provided that the property produces
15a net annual income of at least 6% of the excluded equity value
16of the property, are exempt. Equity value in excess of $6,000
17shall not be excluded. If the activity produces income that is
18less than 6% of the exempt equity due to reasons beyond the
19person's control (for example, the person's illness or crop
20failure) and there is a reasonable expectation that the
21property will again produce income equal to or greater than 6%
22of the equity value (for example, a medical prognosis that the
23person is expected to respond to treatment or that
24drought-resistant corn will be planted), the equity value in
25the property up to $6,000 is exempt. If the person owns more
26than one piece of property and each produces income, each



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1piece of property shall be looked at to determine whether the
26% rule is met, and then the amounts of the person's equity in
3all of those properties shall be totaled to determine whether
4the total equity is $6,000 or less. The total equity value of
5all properties that is exempt shall be limited to $6,000.
6    In determining the resources of an individual or any
7dependents, the Department shall exclude from consideration
8the value of funeral and burial spaces, funeral and burial
9insurance the proceeds of which can only be used to pay the
10funeral and burial expenses of the insured and funds
11specifically set aside for the funeral and burial arrangements
12of the individual or his or her dependents, including prepaid
13funeral and burial plans, to the same extent that such items
14are excluded from consideration under the federal Supplemental
15Security Income program (SSI). At any time after submitting an
16application for medical assistance and before a final
17determination of eligibility has been made by the Department,
18an applicant may use available resources to purchase one of
19the prepaid funeral or burial contracts exempted under this
21    Prepaid funeral or burial contracts are exempt to the
22following extent:
23        (1) Funds in a revocable prepaid funeral or burial
24    contract are exempt up to $1,500, except that any portion
25    of a contract that clearly represents the purchase of
26    burial space, as that term is defined for purposes of the



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1    Supplemental Security Income program, is exempt regardless
2    of value.
3        (2) Funds in an irrevocable prepaid funeral or burial
4    contract are exempt up to $5,874, except that any portion
5    of a contract that clearly represents the purchase of
6    burial space, as that term is defined for purposes of the
7    Supplemental Security Income program, is exempt regardless
8    of value. This amount shall be adjusted annually for any
9    increase in the Consumer Price Index. The amount exempted
10    shall be limited to the price of the funeral goods and
11    services to be provided upon death. The contract must
12    provide a complete description of the funeral goods and
13    services to be provided and the price thereof. Any amount
14    in the contract not so specified shall be treated as a
15    transfer of assets for less than fair market value.
16        (3) A prepaid, guaranteed-price funeral or burial
17    contract, funded by an irrevocable assignment of a
18    person's life insurance policy to a trust, is exempt. The
19    amount exempted shall be limited to the amount of the
20    insurance benefit designated for the cost of the funeral
21    goods and services to be provided upon the person's death.
22    The contract must provide a complete description of the
23    funeral goods and services to be provided and the price
24    thereof. Any amount in the contract not so specified shall
25    be treated as a transfer of assets for less than fair
26    market value. The trust must include a statement that,



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1    upon the death of the person, the State will receive all
2    amounts remaining in the trust, including any remaining
3    payable proceeds under the insurance policy up to an
4    amount equal to the total medical assistance paid on
5    behalf of the person. The trust is responsible for
6    ensuring that the provider of funeral services under the
7    contract receives the proceeds of the policy when it
8    provides the funeral goods and services specified under
9    the contract. The irrevocable assignment of ownership of
10    the insurance policy must be acknowledged by the insurance
11    company.
12    Notwithstanding any other provision of this Code to the
13contrary, an irrevocable trust containing the resources of a
14person who is determined to have a disability shall be
15considered exempt from consideration. A pooled trust must be
16established and managed by a non-profit association that pools
17funds but maintains a separate account for each beneficiary.
18The trust may be established by the person, a parent,
19grandparent, legal guardian, or court. It must be established
20for the sole benefit of the person and language contained in
21the trust shall stipulate that any amount remaining in the
22trust (up to the amount expended by the Department on medical
23assistance) that is not retained by the trust for reasonable
24administrative costs related to wrapping up the affairs of the
25subaccount shall be paid to the Department upon the death of
26the person. After a person reaches age 65, any funding by or on



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1behalf of the person to the trust shall be treated as a
2transfer of assets for less than fair market value unless the
3person is a ward of a county public guardian or the State
4Guardian pursuant to Section 13-5 of the Probate Act of 1975 or
5Section 30 of the Guardianship and Advocacy Act and lives in
6the community, or the person is a ward of a county public
7guardian or the State Guardian pursuant to Section 13-5 of the
8Probate Act of 1975 or Section 30 of the Guardianship and
9Advocacy Act and a court has found that any expenditures from
10the trust will maintain or enhance the person's quality of
11life. If the trust contains proceeds from a personal injury
12settlement, any Department charge must be satisfied in order
13for the transfer to the trust to be treated as a transfer for
14fair market value.
15    The homestead shall be exempt from consideration except to
16the extent that it meets the income and shelter needs of the
17person. "Homestead" means the dwelling house and contiguous
18real estate owned and occupied by the person, regardless of
19its value. Subject to federal approval, a person shall not be
20eligible for long-term care services, however, if the person's
21equity interest in his or her homestead exceeds the minimum
22home equity as allowed and increased annually under federal
23law. Subject to federal approval, on and after the effective
24date of this amendatory Act of the 97th General Assembly,
25homestead property transferred to a trust shall no longer be
26considered homestead property.



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1    Occasional or irregular gifts in cash, goods or services
2from persons who are not legally responsible relatives which
3are of nominal value or which do not have significant effect in
4meeting essential requirements shall be disregarded. The
5eligibility of any applicant for or recipient of public aid
6under this Article is not affected by the payment of any grant
7under the "Senior Citizens and Disabled Persons Property Tax
8Relief Act" or any distributions or items of income described
9under subparagraph (X) of paragraph (2) of subsection (a) of
10Section 203 of the Illinois Income Tax Act.
11    The Illinois Department may, after appropriate
12investigation, establish and implement a consolidated standard
13to determine need and eligibility for and amount of benefits
14under this Article or a uniform cash supplement to the federal
15Supplemental Security Income program for all or any part of
16the then current recipients under this Article; provided,
17however, that the establishment or implementation of such a
18standard or supplement shall not result in reductions in
19benefits under this Article for the then current recipients of
20such benefits.
21(Source: P.A. 97-689, eff. 6-14-12; 98-104, eff. 7-22-13.)".