HF 1876

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to health; reducing the nursing home license
surcharge; increasing the cigarette tax; amending
Minnesota Statutes 2004, sections 256.9657,
subdivision 1; 256B.431, subdivision 38; 297F.05,
subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 256.9657,
subdivision 1, is amended to read:

Subdivision 1.

Nursing home license surcharge.

(a)
Effective July 1, 1993, each non-state-operated nursing home
licensed under chapter 144A shall pay to the commissioner an
annual surcharge according to the schedule in subdivision 4.
The surcharge shall be calculated as $620 per licensed bed. If
the number of licensed beds is reduced, the surcharge shall be
based on the number of remaining licensed beds the second month
following the receipt of timely notice by the commissioner of
human services that beds have been delicensed. The nursing home
must notify the commissioner of health in writing when beds are
delicensed. The commissioner of health must notify the
commissioner of human services within ten working days after
receiving written notification. If the notification is received
by the commissioner of human services by the 15th of the month,
the invoice for the second following month must be reduced to
recognize the delicensing of beds. Beds on layaway status
continue to be subject to the surcharge. The commissioner of
human services must acknowledge a medical care surcharge appeal
within 30 days of receipt of the written appeal from the
provider.

(b) Effective July 1, 1994, the surcharge in paragraph (a)
shall be increased to $625.

(c) Effective August 15, 2002, the surcharge under
paragraph (b) shall be increased to $990.

(d) Effective July 15, 2003, new text begin to June 15, 2005, new text end the
surcharge under paragraph (c) shall be increased to $2,815.

(e) The commissioner may reduce, and may subsequently
restore, the surcharge under paragraph (d) based on the
commissioner's determination of a permissible surcharge.

(f) Between April 1, 2002, and August 15, 2004, a facility
governed by this subdivision may elect to assume full
participation in the medical assistance program by agreeing to
comply with all of the requirements of the medical assistance
program, including the rate equalization law in section 256B.48,
subdivision 1, paragraph (a), and all other requirements
established in law or rule, and to begin intake of new medical
assistance recipients. Rates will be determined under Minnesota
Rules, parts 9549.0010 to 9549.0080. Notwithstanding section
256B.431, subdivision 27, paragraph (i), rate calculations will
be subject to limits as prescribed in rule and law. Other than
the adjustments in sections 256B.431, subdivisions 30 and 32;
256B.437, subdivision 3, paragraph (b), Minnesota Rules, part
9549.0057, and any other applicable legislation enacted prior to
the finalization of rates, facilities assuming full
participation in medical assistance under this paragraph are not
eligible for any rate adjustments until the July 1 following
their settle-up period.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2004, section 256B.431,
subdivision 38, is amended to read:

Subd. 38.

Nursing home rate increases effective in fiscal
year 2003.

Effective June 1, 2003, new text begin to May 31, 2005, new text end the
commissioner shall provide to each nursing home reimbursed under
this section or section 256B.434, an increase in each case mix
payment rate equal to the increase in the per-bed surcharge paid
under section 256.9657, subdivision 1, paragraph (d), divided by
365 and further divided by .90. The increase shall not be
subject to any annual percentage increase. The 30-day advance
notice requirement in section 256B.47, subdivision 2, shall not
apply to rate increases resulting from this section. The
commissioner shall not adjust the rate increase under this
subdivision unless the adjustment is greater than 1.5 percent of
the monthly surcharge payment amount under section 256.9657,
subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2004, section 297F.05,
subdivision 1, is amended to read:

Subdivision 1.

Rates; cigarettes.

A tax is imposed upon
the sale of cigarettes in this state, upon having cigarettes in
possession in this state with intent to sell, upon any person
engaged in business as a distributor, and upon the use or
storage by consumers, at the following rates:

(1) on cigarettes weighing not more than three pounds per
thousand, deleted text begin 24 deleted text end new text begin 36.5 new text end mills on each such cigarette; and

(2) on cigarettes weighing more than three pounds per
thousand, deleted text begin 48 deleted text end new text begin 73 new text end mills on each such cigarette.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 4. new text begin FLOOR STOCKS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Cigarettes. new text end

new text begin (a) A floor stocks tax is
imposed on every person engaged in business in this state as a
distributor, retailer, subjobber, vendor, manufacturer, or
manufacturer's representative of cigarettes, on the stamped
cigarettes and unaffixed stamps in the person's possession or
under the person's control at 12:01 a.m. on July 1, 2005. The
tax is imposed at the following rates, subject to the discount
in Minnesota Statutes, section 297F.08, subdivision 7:
new text end

new text begin (1) on cigarettes weighing not more than three pounds per
thousand, 12.5 mills on each cigarette; and
new text end

new text begin (2) on cigarettes weighing more than three pounds per
thousand, 25 mills on each cigarette.
new text end

new text begin (b) Each distributor, by July 8, 2005, shall file a report
with the commissioner of revenue, in the form the commissioner
prescribes, showing the stamped cigarettes and unaffixed stamps
on hand at 12:01 a.m. on July 1, 2005, and the amount of tax on
the cigarettes and unaffixed stamps. The tax imposed by this
section is due and payable by August 1, 2005, and after that
date bears interest as provided in Minnesota Statutes, section
270.75. Each retailer, subjobber, vendor, manufacturer, or
manufacturer's representative shall file a return with the
commissioner, in the form the commissioner prescribes, showing
the cigarettes on hand at 12:01 a.m. on July 1, 2005, and pay
the tax due on them by August 1, 2005. Tax not paid by the due
date bears interest as provided in Minnesota Statutes, section
270.75.
new text end

new text begin Subd. 2. new text end

new text begin Audit and enforcement. new text end

new text begin The tax imposed by this
section is subject to the audit, assessment, and collection
provisions applicable to the taxes imposed under Minnesota
Statutes, chapter 297F.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end