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PL 2005, CHAPTER 55
(The Lien Law - Key Provisions)
AN ACT concerning payment for patients in psychiatric
facilities and revising parts of statutory law.
This act shall take effect on the 180th day after enactment
(September 10, 2005); except that the provisions of section
8 (extinguishing all current and prior liens) of this act
shall take effect immediately. The Commissioner of Human Services
may take such anticipatory administrative action in advance
of the effective date as shall be necessary for the implementation
of the act.
All liens filed against a person treated at a state or county
psychiatric facility prior to the effective date of P.L.2005,
c.55, are hereby extinguished and shall have no legal effect.
No new liens shall be filed by a psychiatric facility on or
after the effective date of P.L.2005, c.55, against a person
treated at the facility
The Department of Human Services shall adopt regulations
concerning the establishment of a sliding scale fee schedule
and determination of patient liability to contribute to the
cost of care and maintenance pursuant to R.S.30:4-60.
In the case of a person with mental illness who is married,
the department shall establish a spousal share of the combined
assets of the couple that shall be preserved for the noninstitutionalized
spouse and immune from execution to satisfy the person's liability
to contribute toward the cost of treatment, maintenance and
all necessary and related expenses of the person's hospitalization.
In order to determine the spousal share of the combined assets
to be preserved, the Commissioner of Human Services shall
employ the same methodology used by the State Medicaid program
to determine the resources that are preserved for the needs
of the community spouse of an institutionalized individual
in accordance with N.J.A.C.10:71-4.8.
Upon the request of a person treated at a psychiatric facility
or that person's legally responsible relative, against whom
a lien was recorded prior to the effective date of P.L.2005,
c.55, the Department of Human Services shall arrange for the
discharge of the lien by the clerk of the county, register
of deeds and mortgages or clerk of the Superior Court, as
the case may be
The Commissioner of Human Services shall act on any request
by a person with mental illness who is 18 years of age or
older, or the parent of a person with mental illness under
the age of 18, to compromise for settlement of the obligation
established pursuant to this section. With respect to the
request, the commissioner shall allow the person or parent
to retain adequate funds to:
(a) maintain the person's or parent's
housing and usual standard of living in the community;
(b) provide for any necessary medical
expenses or special needs;
(c) support any minor, disabled, elderly
or other dependent;
(e) provide for any other genuine
financial needs.
Requests to compromise for settlement of the obligation shall
be liberally granted by the commissioner and shall promote
the person's or his parent's opportunity to obtain and maintain
employment, purchase property, both real and personal, and
achieve full reintegration into the community, as applicable.
The commissioner shall ensure that all persons and parents
are notified of their right to request a compromise and the
procedure for doing so.
 Full
text of the Lien Law, PL 2005, c.55 http://www.njleg.state.nj.us/2004/Bills/PL05/55_.HTM
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