Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 1341

as introduced - 88th Legislature (2013 - 2014) Posted on 03/07/2013 02:12pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4
1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12
4.13 4.14 4.15 4.16 4.17 4.18

A bill for an act
relating to taxation; sales and use; medical devices; amending Minnesota Statutes
2012, section 297A.67, subdivision 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 297A.67, subdivision 7, is amended to read:


Subd. 7.

Drugs; medical devices.

(a) Sales of the following drugs and medical
devices for human use are exempt:

(1) drugs, including over-the-counter drugs;

(2) single-use finger-pricking devices for the extraction of blood and other single-use
devices and single-use diagnostic agents used in diagnosing, monitoring, or treating
diabetes;

(3) insulin and medical oxygen for human use, regardless of whether prescribed
or sold over the counter;

(4) prosthetic devices;

(5) durable medical equipment for home use only;

(6) mobility enhancing equipment;

(7) prescription corrective eyeglasses; and

(8) kidney dialysis equipment, including repair and replacement parts.

new text begin (b) Items purchased in transactions covered by:
new text end

new text begin (1) Medicare as defined under title XVIII of the Social Security Act, United States
Code, title 42, sections 1395, et seq.;
new text end

new text begin (2) Medicaid as defined under title XIX of the Social Security Act, United States
Code, title 42, sections 1396, et seq.; or
new text end

new text begin (3) a health plan as defined in paragraph (c), clause (9),
new text end

new text begin are exempt.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end For purposes of this subdivision:

(1) "Drug" means a compound, substance, or preparation, and any component of
a compound, substance, or preparation, other than food and food ingredients, dietary
supplements, or alcoholic beverages that is:

(i) recognized in the official United States Pharmacopoeia, official Homeopathic
Pharmacopoeia of the United States, or official National Formulary, and supplement
to any of them;

(ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention
of disease; or

(iii) intended to affect the structure or any function of the body.

(2) "Durable medical equipment" means equipment, including repair and
replacement partsnew text begin and all accessories and supplies, including single patient use items
required for the effective use of the durable medical equipment device
new text end , but not including
mobility enhancing equipment, that:

(i) can withstand repeated use;

(ii) is primarily and customarily used to serve a medical purpose;

(iii) generally is not useful to a person in the absence of illness or injury; and

(iv) is not worn in or on the body.

For purposes of this clause, "repair and replacement parts" includes all components
or attachments used in conjunction with the durable medical equipment, deleted text begin but does not
include
deleted text end new text begin includingnew text end repair and replacement parts which are for single patient use only.

(3) "Mobility enhancing equipment" means equipment, including repair and
replacement parts, but not including durable medical equipment, that:

(i) is primarily and customarily used to provide or increase the ability to move from
one place to another and that is appropriate for use either in a home or a motor vehicle;

(ii) is not generally used by persons with normal mobility; and

(iii) does not include any motor vehicle or equipment on a motor vehicle normally
provided by a motor vehicle manufacturer.

(4) "Over-the-counter drug" means a drug that contains a label that identifies the
product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The
label must include a "drug facts" panel or a statement of the active ingredients with a list of
those ingredients contained in the compound, substance, or preparation. Over-the-counter
drugs do not include grooming and hygiene products, regardless of whether they otherwise
meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.

(5) "Prescribed" and "prescription" means a direction in the form of an order,
formula, or recipe issued in any form of oral, written, electronic, or other means of
transmission by a duly licensed health care professional.

(6) "Prosthetic device" means a replacement, corrective, or supportive device,
including repair and replacement partsnew text begin , new text end new text begin and all necessary accessories, supplies, and items
required for the effective use of the prosthetic device
new text end , worn on or in the body to:

(i) artificially replace a missing portion of the body;

(ii) prevent or correct physical deformity or malfunction; or

(iii) support a weak or deformed portion of the body.

Prosthetic device does not include corrective eyeglasses.

(7) "Kidney dialysis equipment" means equipment that:

(i) is used to remove waste products that build up in the blood when the kidneys are
not able to do so on their own; and

(ii) can withstand repeated use, including multiple use by a single patient,
notwithstanding the provisions of clause (2).

new text begin (8) A transaction is covered by Medicare or Medicaid if any portion of the cost of
the item purchased in the transaction is paid for or reimbursed by the federal government
or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private
insurance company administering the Medicare or Medicaid program on behalf of the
federal government or the state of Minnesota, or by a managed care organization for the
benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu
of conventional Medicare or Medicaid coverage pursuant to agreement with the federal
government or the state of Minnesota.
new text end

new text begin (9) "Health plan" means a policy or certificate of accident and sickness insurance as
defined in section 62A.01 offered by an insurance company licensed under chapter 60A; a
subscriber contract or certificate offered by a nonprofit health service plan corporation
operating under chapter 62C; a health maintenance contract or certificate offered by a
health maintenance organization operating under chapter 62D; a health benefit certificate
offered by a fraternal benefit society operating under chapter 64B; or health coverage
offered by a joint self-insurance employee health plan operating under chapter 62H.
Health plan means individual and group coverage, unless otherwise specified. Health
plan also includes coverage that is:
new text end

new text begin (1) limited to disability protection coverage;
new text end

new text begin (2) automobile medical payment coverage;
new text end

new text begin (3) credit accident and health insurance as defined in section 62B.02;
new text end

new text begin (4) designed solely to provide hearing, dental, or vision care;
new text end

new text begin (5) blanket accident and sickness insurance as defined in section 62A.11;
new text end

new text begin (6) accident-only coverage;
new text end

new text begin (7) a long-term care policy as defined in section 62A.46 or 62S.01;
new text end

new text begin (8) issued as a supplement to Medicare, as defined in sections 62A.3099 to
62A.44, or policies, contracts, or certificates that supplement Medicare issued by health
maintenance organizations or those policies, contracts, or certificates governed by section
1833 or 1876 of the federal Social Security Act, United States Code, title 42, section
1395, et seq., as amended;
new text end

new text begin (9) workers' compensation insurance;
new text end

new text begin (10) a self insurance policy; and
new text end

new text begin (11) issued solely as a companion to a health maintenance contract as described in
section 62D.12, subdivision 1a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after April 1, 2009. Purchasers may apply for a refund of tax paid for qualifying
purchases under this subdivision made after April 1, 2009, and before July 1, 2013, in the
manner provided in Minnesota Statutes, section 297A.75. Notwithstanding limitations
on claims for refunds under Minnesota Statutes, section 289A.40, claims may be filed
with the commissioner until June 30, 2014.
new text end