1.1                          A bill for an act 
  1.2             relating to health; establishing the senior citizen 
  1.3             health benefit fund; modifying the use of funds in the 
  1.4             tobacco prevention and local public health endowment; 
  1.5             requiring recommendations for providing prescription 
  1.6             drug assistance to senior citizens; appropriating 
  1.7             money; amending Minnesota Statutes 2002, section 
  1.8             144.395, subdivision 2; proposing coding for new law 
  1.9             in Minnesota Statutes, chapter 16A. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [16A.725] [SENIOR CITIZEN HEALTH BENEFIT FUND.] 
  1.12     Subdivision 1.  [ESTABLISHMENT.] The senior citizen health 
  1.13  benefit fund is created in the state treasury.  The fund is a 
  1.14  direct appropriated special revenue fund.  The commissioner 
  1.15  shall deposit to the credit of the fund money made available to 
  1.16  the fund.  Notwithstanding section 11A.20, all investment income 
  1.17  and all investment losses attributable to the investment of the 
  1.18  senior citizen health benefit fund not currently needed shall be 
  1.19  credited to the senior citizen health benefit fund. 
  1.20     Subd. 2.  [ACCOUNTS IN THE FUND.] The commissioner shall 
  1.21  establish a prescription drug program account and a prescription 
  1.22  drug assistance account within the senior citizen health benefit 
  1.23  fund.  The commissioner shall divide all money made available to 
  1.24  the fund, and all investment losses, equally between the two 
  1.25  accounts. 
  1.26     Sec. 2.  Minnesota Statutes 2002, section 144.395, 
  1.27  subdivision 2, is amended to read: 
  2.1      Subd. 2.  [EXPENDITURES.] (a) Up to five percent of the 
  2.2   fair market value of the fund on the preceding July 1, must be 
  2.3   spent to reduce the human and economic consequences of tobacco 
  2.4   use among the youth of this state through state and local 
  2.5   tobacco prevention measures and efforts, and for other public 
  2.6   health initiatives. 
  2.7      (b) Notwithstanding paragraph (a), on January 1, 2000, up 
  2.8   to five percent of the fair market value of the fund is 
  2.9   appropriated to the commissioner of health to distribute as 
  2.10  grants under section 144.396, subdivisions 5 and 6, in 
  2.11  accordance with allocations in paragraph (c), clauses (1) and 
  2.12  (2).  Up to $200,000 of this appropriation is available to the 
  2.13  commissioner to conduct the statewide assessments described in 
  2.14  section 144.396, subdivision 3. 
  2.15     (c) Beginning July 1, 2000, and on July 1 of each year 
  2.16  thereafter, the money in paragraph (a) is appropriated as 
  2.17  follows, except as provided in paragraphs (d) and (e):  
  2.18     (1) 67 percent to the commissioner of health to distribute 
  2.19  as grants under section 144.396, subdivision 5, to fund 
  2.20  statewide tobacco use prevention initiatives aimed at youth; 
  2.21     (2) 16.5 percent to the commissioner of health to 
  2.22  distribute as grants under section 144.396, subdivision 6, to 
  2.23  fund local public health initiatives aimed at tobacco use 
  2.24  prevention in coordination with other local health-related 
  2.25  efforts to achieve measurable improvements in health among 
  2.26  youth; and 
  2.27     (3) 16.5 percent to the commissioner of health to 
  2.28  distribute in accordance with section 144.396, subdivision 7.  
  2.29     (d) A maximum of $150,000 of each annual appropriation to 
  2.30  the commissioner of health in paragraphs (b) and (c) may be used 
  2.31  by the commissioner for administrative expenses associated with 
  2.32  implementing this section. 
  2.33     (e) Beginning July 1, 2001, $1,250,000 of each annual 
  2.34  appropriation to the commissioner under paragraph (c), clause 
  2.35  (1), may be used to provide base level funding for the 
  2.36  commissioner's tobacco prevention and control programs and 
  3.1   activities.  This appropriation must occur before any other 
  3.2   appropriation under this subdivision. 
  3.3      (f) Beginning July 1, 2003, and each July 1 thereafter, in 
  3.4   addition to the allocation in paragraph (a), the commissioner of 
  3.5   finance shall transfer one percent of the fair market value of 
  3.6   the fund on the preceding July 1 to the senior citizen health 
  3.7   benefit fund established in section 16A.725. 
  3.8      Sec. 3.  [RECOMMENDATIONS FOR PRESCRIPTION DRUG 
  3.9   ASSISTANCE.] 
  3.10     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
  3.11  health, in consultation with the commissioner of human services, 
  3.12  shall establish a task force to develop recommendations to 
  3.13  provide financial assistance to senior citizens in obtaining 
  3.14  prescription drugs.  The task force membership must include, but 
  3.15  is not limited to, senior citizens and representatives of senior 
  3.16  organizations, the Minnesota board on aging, pharmacy 
  3.17  organizations, the commissioner of health, and the commissioner 
  3.18  of human services.  In making appointments to the task force, 
  3.19  the commissioner of health shall ensure that at least one-half 
  3.20  of task force members reside outside the seven-county 
  3.21  metropolitan area, as defined in Minnesota Statutes, section 
  3.22  473.121, subdivision 2.  The commissioner of health shall 
  3.23  provide staff and administrative support to the task force.  The 
  3.24  task force is governed by Minnesota Statutes, section 15.059, 
  3.25  except that members do not receive per diems and the task force 
  3.26  expires on June 30, 2004. 
  3.27     Subd. 2.  [DUTIES.] The task force shall examine approaches 
  3.28  to provide senior citizens with financial assistance in 
  3.29  obtaining prescription drugs using money available in the 
  3.30  prescription drug assistance account established in Minnesota 
  3.31  Statutes, section 16A.725.  These approaches must include, but 
  3.32  are not limited to:  the provision of discounts off the retail 
  3.33  price of prescription drugs, the provision of premium subsidies 
  3.34  for Medicare supplement policies and other forms of prescription 
  3.35  drug coverage, and the expansion of eligibility for the 
  3.36  prescription drug program established in Minnesota Statutes, 
  4.1   section 256.955.  The task force shall coordinate its 
  4.2   recommendations with federal and other state initiatives 
  4.3   designed to reduce prescription drug costs.  The task force 
  4.4   shall submit recommendations and draft legislation to the 
  4.5   legislature by January 15, 2004. 
  4.6      Sec. 4.  [APPROPRIATION.] 
  4.7      Subdivision 1.  [PRESCRIPTION DRUG PROGRAM.] $....... is 
  4.8   appropriated from the prescription drug program account within 
  4.9   the senior citizen health benefit fund to the commissioner of 
  4.10  human services, for the biennium ending June 30, 2005.  
  4.11     Subd. 2.  [PRESCRIPTION DRUG ASSISTANCE.] $....... is 
  4.12  appropriated from the prescription drug assistance account 
  4.13  within the senior citizen health benefit fund to the 
  4.14  commissioner of health, for the fiscal year ending June 30, 
  4.15  2004, to provide staff and administrative support to the 
  4.16  prescription drug assistance task force established under 
  4.17  section 3.