HF 3125

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to human services funding; modifying parental 
  1.3             contributions for the cost of children's services; 
  1.4             modifying income tax rates; amending Minnesota 
  1.5             Statutes 2002, sections 252.27, by adding a 
  1.6             subdivision; 290.06, subdivision 2d; Minnesota 
  1.7             Statutes 2003 Supplement, section 290.06, subdivision 
  1.8             2c; repealing Minnesota Statutes 2003 Supplement, 
  1.9             section 252.27, subdivision 2a. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2002, section 252.27, is 
  1.12  amended by adding a subdivision to read: 
  1.13     Subd. 2d.  [CONTRIBUTION AMOUNT.] (a) The natural or 
  1.14  adoptive parents of a minor child, including a child determined 
  1.15  eligible for medical assistance without consideration of 
  1.16  parental income, must contribute monthly to the cost of 
  1.17  services, unless the child is married or has been married, 
  1.18  parental rights have been terminated, or the child's adoption is 
  1.19  subsidized according to section 259.67 or through title IV-E of 
  1.20  the Social Security Act. 
  1.21     (b) The parental contribution shall be the greater of a 
  1.22  minimum monthly fee of $25 for households with adjusted gross 
  1.23  income of $30,000 and over, or an amount to be computed by 
  1.24  applying to the adjusted gross income of the natural or adoptive 
  1.25  parents that exceeds 150 percent of the federal poverty 
  1.26  guidelines for the applicable household size, the following 
  1.27  schedule of rates: 
  2.1      (1) on the amount of adjusted gross income over 150 percent 
  2.2   of poverty, but not over $50,000, ten percent; 
  2.3      (2) on the amount of adjusted gross income over 150 percent 
  2.4   of poverty and over $50,000 but not over $60,000, 12 percent; 
  2.5      (3) on the amount of adjusted gross income over 150 percent 
  2.6   of poverty, and over $60,000 but not over $75,000, 14 percent; 
  2.7   and 
  2.8      (4) on all adjusted gross income amounts over 150 percent 
  2.9   of poverty, and over $75,000, 15 percent. 
  2.10     If the child lives with the parent, the parental 
  2.11  contribution is reduced by $200, except that the parent must pay 
  2.12  the minimum monthly $25 fee under this paragraph.  If the child 
  2.13  resides in an institution specified in section 256B.35, the 
  2.14  parent is responsible for the personal needs allowance specified 
  2.15  under that section in addition to the parental contribution 
  2.16  determined under this section.  The parental contribution is 
  2.17  reduced by any amount required to be paid directly to the child 
  2.18  pursuant to a court order, but only if actually paid. 
  2.19     (c) The household size to be used in determining the amount 
  2.20  of contribution under paragraph (b) includes natural and 
  2.21  adoptive parents and their dependents under age 21, including 
  2.22  the child receiving services.  Adjustments in the contribution 
  2.23  amount due to annual changes in the federal poverty guidelines 
  2.24  shall be implemented on the first day of July following 
  2.25  publication of the changes. 
  2.26     (d) For purposes of paragraph (b), "income" means the 
  2.27  adjusted gross income of the natural or adoptive parents 
  2.28  determined according to the previous year's federal tax form. 
  2.29     (e) The contribution shall be explained in writing to the 
  2.30  parents at the time eligibility for services is being 
  2.31  determined.  The contribution shall be made on a monthly basis 
  2.32  effective with the first month in which the child receives 
  2.33  services.  Annually upon redetermination or at termination of 
  2.34  eligibility, if the contribution exceeded the cost of services 
  2.35  provided, the local agency or the state shall reimburse that 
  2.36  excess amount to the parents, either by direct reimbursement if 
  3.1   the parent is no longer required to pay a contribution, or by a 
  3.2   reduction in or waiver of parental fees until the excess amount 
  3.3   is exhausted. 
  3.4      (f) The monthly contribution amount must be reviewed at 
  3.5   least every 12 months, when there is a change in household size, 
  3.6   and when there is a loss of or gain in income from one month to 
  3.7   another in excess of ten percent.  The local agency shall mail a 
  3.8   written notice 30 days in advance of the effective date of a 
  3.9   change in the contribution amount.  A decrease in the 
  3.10  contribution amount is effective in the month that the parent 
  3.11  verifies a reduction in income or change in household size. 
  3.12     (g) Parents of a minor child who do not live with each 
  3.13  other shall each pay the contribution required under paragraph 
  3.14  (a), except that a court-ordered child support payment actually 
  3.15  paid on behalf of the child receiving services shall be deducted 
  3.16  from the contribution of the parent making the payment. 
  3.17     (h) The contribution under paragraph (b) shall be increased 
  3.18  by an additional five percent if the local agency determines 
  3.19  that insurance coverage is available but not obtained for the 
  3.20  child.  For purposes of this section, "available" means the 
  3.21  insurance is a benefit of employment for a family member at an 
  3.22  annual cost of no more than five percent of the family's annual 
  3.23  income.  For purposes of this section, "insurance" means health 
  3.24  and accident insurance coverage, enrollment in a nonprofit 
  3.25  health service plan, health maintenance organization, 
  3.26  self-insured plan, or preferred provider organization. 
  3.27     Parents who have more than one child receiving services 
  3.28  shall not be required to pay more than the amount for the child 
  3.29  with the highest expenditures.  There shall be no resource 
  3.30  contribution from the parents.  The parent shall not be required 
  3.31  to pay a contribution in excess of the cost of the services 
  3.32  provided to the child, not counting payments made to school 
  3.33  districts for education-related services.  Notice of an increase 
  3.34  in fee payment must be given at least 30 days before the 
  3.35  increased fee is due. 
  3.36     (i) The contribution under paragraph (b) shall be reduced 
  4.1   by $300 per fiscal year if, in the 12 months prior to July 1: 
  4.2      (1) the parent applied for insurance for the child; 
  4.3      (2) the insurer denied insurance; 
  4.4      (3) the parents submitted a complaint or appeal, in 
  4.5   writing, to the insurer; submitted a complaint or appeal, in 
  4.6   writing, to the commissioner of health or the commissioner of 
  4.7   commerce; or litigated the complaint or appeal; and 
  4.8      (4) as a result of the dispute, the insurer reversed its 
  4.9   decision and granted insurance. 
  4.10     For purposes of this section, "insurance" has the meaning 
  4.11  given in paragraph (h). 
  4.12     A parent who has requested a reduction in the contribution 
  4.13  amount under this paragraph shall submit proof in the form and 
  4.14  manner prescribed by the commissioner or county agency, 
  4.15  including, but not limited to, the insurer's denial of 
  4.16  insurance, the written letter or complaint of the parents, court 
  4.17  documents, and the written response of the insurer approving 
  4.18  insurance.  The determinations of the commissioner or county 
  4.19  agency under this paragraph are not rules subject to chapter 14. 
  4.20     [EFFECTIVE DATE.] This section is effective July 1, 2004. 
  4.21     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  4.22  290.06, subdivision 2c, is amended to read: 
  4.23     Subd. 2c.  [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES, 
  4.24  AND TRUSTS.] (a) The income taxes imposed by this chapter upon 
  4.25  married individuals filing joint returns and surviving spouses 
  4.26  as defined in section 2(a) of the Internal Revenue Code must be 
  4.27  computed by applying to their taxable net income the following 
  4.28  schedule of rates: 
  4.29     (1) on the first $25,680 $28,420, 5.35 percent; 
  4.30     (2) on all over $25,680 $28,420, but not 
  4.31  over $102,030 $112,910, 7.05 percent; 
  4.32     (3) on all over $102,030 $112,910, but not over $1,000,000, 
  4.33  7.85 percent; and 
  4.34     (4) on all over $1,000,000, 7.9 percent. 
  4.35     Married individuals filing separate returns, estates, and 
  4.36  trusts must compute their income tax by applying the above rates 
  5.1   to their taxable income, except that the income brackets will be 
  5.2   one-half of the above amounts.  
  5.3      (b) The income taxes imposed by this chapter upon unmarried 
  5.4   individuals must be computed by applying to taxable net income 
  5.5   the following schedule of rates: 
  5.6      (1) on the first $17,570 $19,440, 5.35 percent; 
  5.7      (2) on all over $17,570 $19,440, but not 
  5.8   over $57,710 $63,860, 7.05 percent; 
  5.9      (3) on all over $57,710 $63,860, but not over $500,000, 
  5.10  7.85 percent; and 
  5.11     (4) on all over $500,000, 7.9 percent. 
  5.12     (c) The income taxes imposed by this chapter upon unmarried 
  5.13  individuals qualifying as a head of household as defined in 
  5.14  section 2(b) of the Internal Revenue Code must be computed by 
  5.15  applying to taxable net income the following schedule of rates: 
  5.16     (1) on the first $21,630 $23,940, 5.35 percent; 
  5.17     (2) on all over $21,630 $23,940, but not over 
  5.18  $86,910 $96,180, 7.05 percent; 
  5.19     (3) on all over $86,910 $96,180, but not over $500,000, 
  5.20  7.85 percent; and 
  5.21     (4) on all over $500,000, 7.9 percent. 
  5.22     (d) In lieu of a tax computed according to the rates set 
  5.23  forth in this subdivision, the tax of any individual taxpayer 
  5.24  whose taxable net income for the taxable year is less than an 
  5.25  amount determined by the commissioner must be computed in 
  5.26  accordance with tables prepared and issued by the commissioner 
  5.27  of revenue based on income brackets of not more than $100.  The 
  5.28  amount of tax for each bracket shall be computed at the rates 
  5.29  set forth in this subdivision, provided that the commissioner 
  5.30  may disregard a fractional part of a dollar unless it amounts to 
  5.31  50 cents or more, in which case it may be increased to $1. 
  5.32     (e) An individual who is not a Minnesota resident for the 
  5.33  entire year must compute the individual's Minnesota income tax 
  5.34  as provided in this subdivision.  After the application of the 
  5.35  nonrefundable credits provided in this chapter, the tax 
  5.36  liability must then be multiplied by a fraction in which:  
  6.1      (1) the numerator is the individual's Minnesota source 
  6.2   federal adjusted gross income as defined in section 62 of the 
  6.3   Internal Revenue Code and increased by the additions required 
  6.4   under section 290.01, subdivision 19a, clauses (1), (5), and 
  6.5   (6), and reduced by the subtraction under section 290.01, 
  6.6   subdivision 19b, clause (11), and the Minnesota assignable 
  6.7   portion of the subtraction for United States government interest 
  6.8   under section 290.01, subdivision 19b, clause (1), after 
  6.9   applying the allocation and assignability provisions of section 
  6.10  290.081, clause (a), or 290.17; and 
  6.11     (2) the denominator is the individual's federal adjusted 
  6.12  gross income as defined in section 62 of the Internal Revenue 
  6.13  Code of 1986, increased by the amounts specified in section 
  6.14  290.01, subdivision 19a, clauses (1), (5), and (6), and reduced 
  6.15  by the amounts specified in section 290.01, subdivision 19b, 
  6.16  clauses (1) and (11). 
  6.17     [EFFECTIVE DATE.] This section is effective for taxable 
  6.18  years beginning after December 31, 2003. 
  6.19     Sec. 3.  Minnesota Statutes 2002, section 290.06, 
  6.20  subdivision 2d, is amended to read: 
  6.21     Subd. 2d.  [INFLATION ADJUSTMENT OF BRACKETS.] (a) For 
  6.22  taxable years beginning after December 31, 2000 2004, the 
  6.23  minimum and maximum dollar amounts for each rate bracket for 
  6.24  which a tax is imposed in subdivision 2c shall be adjusted for 
  6.25  inflation by the percentage determined under paragraph (b).  For 
  6.26  the purpose of making the adjustment as provided in this 
  6.27  subdivision all of the rate brackets provided in subdivision 2c 
  6.28  shall be the rate brackets as they existed for taxable years 
  6.29  beginning after December 31, 1999 2003, and before January 
  6.30  1, 2001 2005.  The rate applicable to any rate bracket must not 
  6.31  be changed.  The dollar amounts setting forth the tax shall be 
  6.32  adjusted to reflect the changes in the rate brackets.  The rate 
  6.33  brackets as adjusted must be rounded to the nearest $10 amount.  
  6.34  If the rate bracket ends in $5, it must be rounded up to the 
  6.35  nearest $10 amount.  
  6.36     (b) The commissioner shall adjust the rate brackets and by 
  7.1   the percentage determined pursuant to the provisions of section 
  7.2   1(f) of the Internal Revenue Code, except that in section 
  7.3   1(f)(3)(B) the word "1999" "2003" shall be substituted for the 
  7.4   word "1992."  For 2001 2005, the commissioner shall then 
  7.5   determine the percent change from the 12 months ending on August 
  7.6   31, 1999 2003, to the 12 months ending on August 31, 2000 2004, 
  7.7   and in each subsequent year, from the 12 months ending on August 
  7.8   31, 1999 2003, to the 12 months ending on August 31 of the year 
  7.9   preceding the taxable year.  The determination of the 
  7.10  commissioner pursuant to this subdivision shall not be 
  7.11  considered a "rule" and shall not be subject to the 
  7.12  Administrative Procedure Act contained in chapter 14.  
  7.13     No later than December 15 of each year, the commissioner 
  7.14  shall announce the specific percentage that will be used to 
  7.15  adjust the tax rate brackets. 
  7.16     [EFFECTIVE DATE.] This section is effective for taxable 
  7.17  years beginning after December 31, 2004. 
  7.18     Sec. 4.  [REPEALER.] 
  7.19     Minnesota Statutes 2003 Supplement, section 252.27, 
  7.20  subdivision 2a, is repealed effective July 1, 2004.