1.1                          A bill for an act 
  1.2             relating to human services; proposing an amendment to 
  1.3             the Minnesota Constitution, article XI, by adding a 
  1.4             section; dedicating the sales tax receipts equal to a 
  1.5             sales tax of 3/16 of one percent on taxable sales for 
  1.6             human services purposes; amending Minnesota Statutes 
  1.7             2000, section 297A.94. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9                              ARTICLE 1
  1.10                      CONSTITUTIONAL AMENDMENT
  1.11     Section 1.  [CONSTITUTIONAL AMENDMENT.] 
  1.12     An amendment to the Minnesota Constitution is proposed to 
  1.13  the people.  If the amendment is adopted, a section will be 
  1.14  added to article XI to read: 
  1.15     Sec. 15.  Beginning July 1, 2005, the sales and use tax 
  1.16  receipts equal to the state sales and use tax of 3/16 of one 
  1.17  percent on sales and uses taxable under the general state sales 
  1.18  and use tax law, plus penalties and interest and reduced by any 
  1.19  refunds, are dedicated to be used to provide annual 
  1.20  reimbursement rate increases of no less than 3.5 percent to 
  1.21  nursing facilities, intermediate care facilities for persons 
  1.22  with mental retardation, and other human service providers as 
  1.23  defined by the legislature. 
  1.24     The money dedicated under this section shall be 
  1.25  appropriated by law and shall not be used as a substitute for 
  1.26  traditional funding sources for the purposes specified, but the 
  2.1   dedicated money must supplement traditional sources of funding 
  2.2   for those purposes. 
  2.3      Sec. 2.  [SUBMISSION TO VOTERS.] 
  2.4      The proposed amendment shall be submitted to the people at 
  2.5   the 2002 general election.  The question submitted to the people 
  2.6   shall be: 
  2.7      "Shall the Minnesota Constitution be amended to provide 
  2.8   funding beginning July 1, 2005, to provide annual reimbursement 
  2.9   rate increases to nursing facilities, intermediate care 
  2.10  facilities for persons with mental retardation and related 
  2.11  conditions, and other human service providers by dedicating the 
  2.12  sales and use tax receipts equal to the state sales and use tax 
  2.13  of 3/16 of one percent or taxable sales? 
  2.14                                     Yes .......
  2.15                                     No ........"
  2.16                             ARTICLE 2
  2.17                         CONFORMING CHANGES
  2.18     Section 1.  Minnesota Statutes 2000, section 297A.94, is 
  2.19  amended to read: 
  2.20     297A.94 [DEPOSIT OF REVENUES.] 
  2.21     (a) Except as provided in this section and the Minnesota 
  2.22  Constitution, article XI, section 15, the commissioner shall 
  2.23  deposit the revenues, including interest and penalties, derived 
  2.24  from the taxes imposed by this chapter in the state treasury and 
  2.25  credit them to the general fund.  
  2.26     (b) The commissioner shall deposit taxes in the Minnesota 
  2.27  agricultural and economic account in the special revenue fund if:
  2.28     (1) the taxes are derived from sales and use of property 
  2.29  and services purchased for the construction and operation of an 
  2.30  agricultural resource project; and 
  2.31     (2) the purchase was made on or after the date on which a 
  2.32  conditional commitment was made for a loan guaranty for the 
  2.33  project under section 41A.04, subdivision 3. 
  2.34  The commissioner of finance shall certify to the commissioner 
  2.35  the date on which the project received the conditional 
  2.36  commitment.  The amount deposited in the loan guaranty account 
  3.1   must be reduced by any refunds and by the costs incurred by the 
  3.2   department of revenue to administer and enforce the assessment 
  3.3   and collection of the taxes.  
  3.4      (c) The commissioner shall deposit the revenues, including 
  3.5   interest and penalties, derived from the taxes imposed on sales 
  3.6   and purchases included in section 297A.61, subdivision 16, 
  3.7   paragraphs (b) and (f), in the state treasury, and credit them 
  3.8   as follows: 
  3.9      (1) first to the general obligation special tax bond debt 
  3.10  service account in each fiscal year the amount required by 
  3.11  section 16A.661, subdivision 3, paragraph (b); and 
  3.12     (2) after the requirements of clause (1) have been met, the 
  3.13  balance to the general fund. 
  3.14     (d) The commissioner shall deposit the revenues, including 
  3.15  interest and penalties, collected under section 297A.64, 
  3.16  subdivision 5, in the state treasury and credit them to the 
  3.17  general fund.  By July 15 of each year the commissioner shall 
  3.18  transfer to the highway user tax distribution fund an amount 
  3.19  equal to the excess fees collected under section 297A.64, 
  3.20  subdivision 5, for the previous calendar year. 
  3.21     (e) For fiscal year 2001, 97 percent, and for fiscal year 
  3.22  2002 and thereafter, 87 percent of the revenues, including 
  3.23  interest and penalties, transmitted to the commissioner under 
  3.24  section 297A.65, must be deposited by the commissioner in the 
  3.25  state treasury as follows: 
  3.26     (1) 50 percent of the receipts must be deposited in the 
  3.27  heritage enhancement account in the game and fish fund, and may 
  3.28  be spent only on activities that improve, enhance, or protect 
  3.29  fish and wildlife resources, including conservation, 
  3.30  restoration, and enhancement of land, water, and other natural 
  3.31  resources of the state; 
  3.32     (2) 22.5 percent of the receipts must be deposited in the 
  3.33  natural resources fund, and may be spent only for state parks 
  3.34  and trails; 
  3.35     (3) 22.5 percent of the receipts must be deposited in the 
  3.36  natural resources fund, and may be spent only on metropolitan 
  4.1   park and trail grants; 
  4.2      (4) three percent of the receipts must be deposited in the 
  4.3   natural resources fund, and may be spent only on local trail 
  4.4   grants; and 
  4.5      (5) two percent of the receipts must be deposited in the 
  4.6   natural resources fund, and may be spent only for the Minnesota 
  4.7   zoological garden, the Como park zoo and conservatory, and the 
  4.8   Duluth zoo. 
  4.9      (f) The revenue dedicated under paragraph (e) may not be 
  4.10  used as a substitute for traditional sources of funding for the 
  4.11  purposes specified, but the dedicated revenue shall supplement 
  4.12  traditional sources of funding for those purposes.  Land 
  4.13  acquired with money deposited in the game and fish fund under 
  4.14  paragraph (e) must be open to public hunting and fishing during 
  4.15  the open season.  At least 87 percent of the money deposited in 
  4.16  the game and fish fund for improvement, enhancement, or 
  4.17  protection of fish and wildlife resources under paragraph (e) 
  4.18  must be allocated for field operations. 
  4.19     Sec. 2.  [PROVIDER RATE INCREASES.] 
  4.20     (a) The commissioner of human services shall increase 
  4.21  reimbursement rates by at least 3.5 percent each year of the 
  4.22  biennium for the providers listed in paragraph (b), using 
  4.23  revenue dedicated for that purpose under the Minnesota 
  4.24  Constitution, article XI, section 15, for that purpose.  The 
  4.25  increases shall be effective for services rendered on or after 
  4.26  July 1, 2005, and each year thereafter. 
  4.27     (b) The rate increases described in this section shall be 
  4.28  provided to nursing facilities reimbursed under Minnesota 
  4.29  Statutes, section 256B.431 or 256B.434, or any other applicable 
  4.30  law; intermediate care facilities for persons with mental 
  4.31  retardation and related conditions reimbursed under Minnesota 
  4.32  Statutes, section 256B.5012; home and community-based waivered 
  4.33  services for persons with mental retardation or related 
  4.34  conditions under Minnesota Statutes, section 256B.501; home and 
  4.35  community-based waivered services for the elderly under 
  4.36  Minnesota Statutes, section 256B.0915; waivered services under 
  5.1   community alternatives for disabled individuals under Minnesota 
  5.2   Statutes, section 256B.49; community alternative care waivered 
  5.3   services under Minnesota Statutes, section 256B.49; traumatic 
  5.4   brain injury waivered services under Minnesota Statutes, section 
  5.5   256B.49; nursing services and home health services under 
  5.6   Minnesota Statutes, section 256B.0625, subdivision 6a; personal 
  5.7   care services and nursing supervision of personal care services 
  5.8   under Minnesota Statutes, section 256B.0625, subdivision 19a; 
  5.9   private-duty nursing services under Minnesota Statutes, section 
  5.10  256B.0625, subdivision 7; day training and habilitation services 
  5.11  for adults with mental retardation or related conditions under 
  5.12  Minnesota Statutes, sections 252.40 to 252.46; alternative care 
  5.13  services under Minnesota Statutes, section 256B.0913; adult 
  5.14  residential program grants under Minnesota Rules, parts 
  5.15  9535.2000 to 9535.3000; adult and family community support 
  5.16  grants under Minnesota Rules, parts 9535.1700 to 9535.1760; the 
  5.17  group residential housing supplementary service rate under 
  5.18  Minnesota Statutes, section 256I.05, subdivision 1a; adult 
  5.19  mental health integrated fund grants under Minnesota Statutes, 
  5.20  section 245.4661; semi-independent living services under 
  5.21  Minnesota Statutes, section 252.275, including SILS funding 
  5.22  under county social services grants formerly funded under 
  5.23  Minnesota Statutes, chapter 256I; community support services for 
  5.24  deaf and hard-of-hearing adults with mental illness who use or 
  5.25  wish to use sign language as their primary means of 
  5.26  communication; and living skills training programs for persons 
  5.27  with intractable epilepsy who need assistance in the transition 
  5.28  to independent living. 
  5.29     (c) Providers that receive a rate increase under this 
  5.30  section shall use 80 percent of the additional revenue to 
  5.31  increase the wages and benefits, including health insurance, of 
  5.32  all employees other than the administrator and central office 
  5.33  staff and to pay associated costs for FICA, the Medicare tax, 
  5.34  workers' compensation premiums, and federal and state 
  5.35  unemployment insurance; ten percent of the additional revenue 
  5.36  for employee recruitment, training, transportation, and 
  6.1   administration; and ten percent for other operations costs.  For 
  6.2   public employees, the portion of this increase reserved to 
  6.3   increase compensation for certain staff shall be available and 
  6.4   pay rates shall be increased only to the extent that they comply 
  6.5   with laws governing public employees collective bargaining.  
  6.6   Money for wage increases received by a provider as a result of 
  6.7   the additional rate increase described in this paragraph shall 
  6.8   be used only for wage increases implemented on or after the 
  6.9   first day of the state fiscal year in which the increase is 
  6.10  available and shall not be used for wage increases implemented 
  6.11  prior to that date. 
  6.12     (d) A copy of the provider's plan for complying with 
  6.13  paragraph (c) must be made available to all employees.  This 
  6.14  must be done by giving each employee a copy or by posting it in 
  6.15  an area of the provider's operation to which all employees have 
  6.16  access.  If an employee does not receive the compensation 
  6.17  adjustment described in the plan and is unable to resolve the 
  6.18  problem with the provider, the employee may contact the 
  6.19  employee's union representative.  If the employee is not covered 
  6.20  by a collective bargaining agreement, the employee may contact 
  6.21  the commissioner at a phone number provided by the commissioner 
  6.22  and included in the provider's plan. 
  6.23     Sec. 3.  [EFFECTIVE DATE.] 
  6.24     Sections 1 and 2 are effective July 1, 2005, if the 
  6.25  constitutional amendment proposed in article 1 is adopted by the 
  6.26  voters.