SB596,6,9 705.04 (2) (intro.) If Except as provided in s. 705.06 (2m), if the account is a P.O.D. account, on the death of the original payee or the survivor of 2 or more original payees, all of the following apply:

SB596,7 Section 7 . 705.04 (2g) of the statutes is amended to read:

SB596,6,18 705.04 (2g) Notwithstanding subs. (1) and (2) and s. 705.06 (2m), the department of health services may collect, from funds of a decedent that are held by the decedent immediately before death in a joint account or a P.O.D. account, an amount equal to the medical assistance that is recoverable under s. 49.496 (3) (a), an amount equal to aid under s. 49.68, 49.683, 49.685, or 49.785 that is recoverable under s. 49.682 (2) (a) or (am), or an amount equal to long-term community support services under s. 46.27, 2017 stats., that is recoverable under s. 46.27 (7g) (c) 1., 2017 stats., and that was paid on behalf of the decedent or the decedent's spouse.

SB596,8 Section 8. 705.06 (2m) of the statutes is created to read:

SB596,7,4 705.06 (2m) If a financial institution has any lien right, right to setoff, or security interest in a P.O.D. account resulting from the financial institution's loan or other extension of credit to an original payee, on the death of the original payee or the survivor of 2 or more original payees, the financial institution may retain control of all sums on deposit in the P.O.D. account to the extent necessary to exercise its lien right or right to setoff or to protect its security interest or may tender such sums to a court and seek a court determination, but shall pay any remaining balance of the sums on deposit to the P.O.D. beneficiary or beneficiaries as provided in s. 705.04 (2). This subsection applies notwithstanding any limitation on the rights of creditors under s. 705.07 (1).

SB596,9 Section 9. 705.06 (3) of the statutes is amended to read:

SB596,7,8 705.06 (3) The protection provided by this section subs. (1) and (2) shall have no bearing on the rights of parties or their successors in disputes concerning the beneficial ownership of funds in or withdrawn from an account.

SB596,10 Section 10 . DFI-Bkg 14.03 of the administrative code is repealed.

SB596,11 Section 11 . DFI-CU 63.03 of the administrative code is repealed.

SB596,12 Section 12 . DFI-SB 12.03 of the administrative code is repealed.

SB596,13 Section 13 . DFI-SL 12.03 of the administrative code is repealed.

SB596,14 Section 14 . Initial applicability.

SB596,7,15 (1) Public deposit losses. The treatment of s. 34.08 (2) first applies to losses, as defined in s. 34.01 (2), occurring on the effective date of this subsection.

SB596,15 Section 15 . Effective dates. This act takes effect on the day after publication, except as follows:

SB596,7,20 (1) Administrative rules. The repeal of sections DFI-Bkg 14.03, DFI-CU 63.03, DFI-SB 12.03, and DFI-SL 12.03 of the administrative code takes effect as provided in s. 227.265.

SB596,7,21 (End)