1.1 	A bill for an act
1.2 	relating to taxation; gross receipts; prohibiting
1.3 	state referrals to pharmacies that are not collecting
1.4 	the MinnesotaCare tax on prescription drugs; amending
1.5 	Minnesota Statutes 2004, section 295.57, by adding a
1.6 	subdivision.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 295.57, is
1.9 	amended by adding a subdivision to read:
1.10 		Subd. 6.Referrals to foreign pharmacies. No state
1.11 	agency or other entity may make referrals, whether through links
1.12 	on a state Web site or otherwise, to a pharmacy that allows or
1.13 	enables the purchase of prescription drugs, unless the pharmacy
1.14 	for purchases by Minnesota residents or other Minnesota entities
1.15 	either:
1.16 	(1) is selling only prescription drugs on which the tax
1.17 	under section 295.52, subdivision 3, has been paid; or 
1.18 	(2) has registered with the commissioner and agreed, in
1.19 	writing, to collect the use tax under section 295.52,
1.20 	subdivision 4, on the sale of the prescription drugs.
1.21 	
EFFECTIVE DATE. This section is effective August 1, 2005.