The bill amends the Social Welfare Act of 1939 by adding Section 112l, which establishes guidelines for personal services agreements between individuals (or their legally authorized representatives) and service providers, including household members and relatives. It specifies that payments made under qualified and affirmed personal services agreements are not considered divestments, provided they are at fair market value. Additionally, the Department of Health and Human Services is prohibited from presuming that services provided under these agreements are gratuitous, thus preventing divestment penalties for such payments.

The bill defines key terms related to personal services agreements, including "affirmed personal services agreement," "qualified personal services agreement," and "divestment." It outlines the requirements for these agreements, such as the necessity for them to be made before services are rendered, the description of services, and the payment terms. The bill aims to clarify the conditions under which individuals can receive assistance without facing penalties for asset transfers, thereby facilitating access to necessary services while ensuring compliance with fair market value standards.

Statutes affected:
House Introduced Bill: 400.1, 400.119