HF 3109

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

  1.1                          A bill for an act 
  1.2             relating to alternative care program funding; 
  1.3             modifying alternative care program client premiums; 
  1.4             modifying income tax rates; amending Minnesota 
  1.5             Statutes 2002, section 290.06, subdivision 2d; 
  1.6             Minnesota Statutes 2003 Supplement, sections 
  1.7             256B.0913, subdivision 12; 290.06, subdivision 2c. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.10  256B.0913, subdivision 12, is amended to read: 
  1.11     Subd. 12.  [CLIENT FEES PREMIUMS.] (a) A fee premium is 
  1.12  required for all alternative care eligible clients to help pay 
  1.13  for the cost of participating in the program.  The amount of the 
  1.14  fee premium for the alternative care client shall be determined 
  1.15  as follows: 
  1.16     (1) when the alternative care client's income less 
  1.17  recurring and predictable medical expenses is greater than the 
  1.18  recipient's maintenance needs allowance as defined in section 
  1.19  256B.0915, subdivision 1d, but less than 100 150 percent of the 
  1.20  federal poverty guideline effective on July 1 of the state 
  1.21  fiscal year in which the fee premium is being computed, and 
  1.22  total assets are less than $10,000, the fee is zero; 
  1.23     (2) when the alternative care client's income less 
  1.24  recurring and predictable medical expenses is equal to or 
  1.25  greater than 100 percent but less than 150 percent of the 
  1.26  federal poverty guideline effective on July 1 of the state 
  2.1   fiscal year in which the fee premium is being computed, and 
  2.2   total assets are less than $10,000, the fee is five 25 percent 
  2.3   of the cost of alternative care services or the difference 
  2.4   between 150 percent of the federal poverty guideline effective 
  2.5   on July 1 of the state fiscal year in which the premium is being 
  2.6   computed and the client's income less recurring and predictable 
  2.7   medical expenses, whichever is less; and 
  2.8      (3) when the alternative care client's income less 
  2.9   recurring and predictable medical expenses is equal to or 
  2.10  greater than 150 percent but less than 200 percent of the 
  2.11  federal poverty guidelines effective on July 1 of the state 
  2.12  fiscal year in which the fee is being computed and assets are 
  2.13  less total assets are greater than $10,000, the fee is 15 25 
  2.14  percent of the cost of alternative care services; 
  2.15     (4) when the alternative care client's income less 
  2.16  recurring and predictable medical expenses is equal to or 
  2.17  greater than 200 percent of the federal poverty guidelines 
  2.18  effective on July 1 of the state fiscal year in which the fee is 
  2.19  being computed and assets are less than $10,000, the fee is 30 
  2.20  percent of the cost of alternative care services; and 
  2.21     (5) when the alternative care client's assets are equal to 
  2.22  or greater than $10,000, the fee is 30 percent of the cost of 
  2.23  alternative care services.  
  2.24     For married persons, total assets are defined as the total 
  2.25  marital assets less the estimated community spouse asset 
  2.26  allowance, under section 256B.059, if applicable.  For married 
  2.27  persons, total income is defined as the client's income less the 
  2.28  monthly spousal allotment, under section 256B.058. 
  2.29     All alternative care services except case management shall 
  2.30  be included in the estimated costs for the purpose of 
  2.31  determining 25 percent of the fee costs. 
  2.32     Fees Premiums are due and payable each month alternative 
  2.33  care services are received unless the actual cost of the 
  2.34  services is less than the fee, in which case the fee is the 
  2.35  lesser amount premium. 
  2.36     (b) The fee shall be waived by the commissioner when: 
  3.1      (1) a person who is residing in a nursing facility is 
  3.2   receiving case management only; 
  3.3      (2) a person is applying for medical assistance; 
  3.4      (3) a married couple is requesting an asset assessment 
  3.5   under the spousal impoverishment provisions; 
  3.6      (3) (4) a person is found eligible for alternative care, 
  3.7   but is not yet receiving alternative care services; or 
  3.8      (4) a person has chosen to participate in a 
  3.9   consumer-directed service plan for which the cost is no greater 
  3.10  than the total cost of the person's alternative care service 
  3.11  plan less the monthly fee amount that would otherwise be 
  3.12  assessed (5) a person's fee under paragraph (a) is less than $25.
  3.13     (c) The county agency must record in the state's receivable 
  3.14  system the client's assessed fee premium amount or the reason 
  3.15  the fee premium has been waived.  The commissioner will bill and 
  3.16  collect the fee premium from the client.  Money collected must 
  3.17  be deposited in the general fund and is appropriated to the 
  3.18  commissioner for the alternative care program.  The client must 
  3.19  supply the county with the client's Social Security number at 
  3.20  the time of application.  The county shall supply the 
  3.21  commissioner with the client's Social Security number and other 
  3.22  information the commissioner requires to collect the fee premium 
  3.23  from the client.  The commissioner shall collect unpaid fees 
  3.24  premiums using the Revenue Recapture Act in chapter 270A and 
  3.25  other methods available to the commissioner.  The commissioner 
  3.26  may require counties to inform clients of the collection 
  3.27  procedures that may be used by the state if a fee premium is not 
  3.28  paid.  This paragraph does not apply to alternative care pilot 
  3.29  projects authorized in Laws 1993, First Special Session chapter 
  3.30  1, article 5, section 133, if a county operating under the pilot 
  3.31  project reports the following dollar amounts to the commissioner 
  3.32  quarterly: 
  3.33     (1) total fees premiums billed to clients; 
  3.34     (2) total collections of fees premiums billed; and 
  3.35     (3) balance of fees premiums owed by clients. 
  3.36  If a county does not adhere to these reporting requirements, the 
  4.1   commissioner may terminate the billing, collecting, and 
  4.2   remitting portions of the pilot project and require the county 
  4.3   involved to operate under the procedures set forth in this 
  4.4   paragraph. 
  4.5      [EFFECTIVE DATE.] This section is effective July 1, 2004. 
  4.6      Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  4.7   290.06, subdivision 2c, is amended to read: 
  4.8      Subd. 2c.  [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES, 
  4.9   AND TRUSTS.] (a) The income taxes imposed by this chapter upon 
  4.10  married individuals filing joint returns and surviving spouses 
  4.11  as defined in section 2(a) of the Internal Revenue Code must be 
  4.12  computed by applying to their taxable net income the following 
  4.13  schedule of rates: 
  4.14     (1) On the first $25,680 $28,420, 5.35 percent; 
  4.15     (2) On all over $25,680 $28,420, but not 
  4.16  over $102,030 $112,910, 7.05 percent; 
  4.17     (3) On all over $102,030 $112,910, but not over $1,000,000, 
  4.18  7.85 percent; 
  4.19     (4) On all over $1,000,000, 8.05 percent. 
  4.20     Married individuals filing separate returns, estates, and 
  4.21  trusts must compute their income tax by applying the above rates 
  4.22  to their taxable income, except that the income brackets will be 
  4.23  one-half of the above amounts.  
  4.24     (b) The income taxes imposed by this chapter upon unmarried 
  4.25  individuals must be computed by applying to taxable net income 
  4.26  the following schedule of rates: 
  4.27     (1) On the first $17,570 $19,440, 5.35 percent; 
  4.28     (2) On all over $17,570 $19,440, but not 
  4.29  over $57,710 $63,860, 7.05 percent; 
  4.30     (3) On all over $57,710 $63,860, but not over $500,000, 
  4.31  7.85 percent; 
  4.32     (4) On all over $500,000, 8.05 percent. 
  4.33     (c) The income taxes imposed by this chapter upon unmarried 
  4.34  individuals qualifying as a head of household as defined in 
  4.35  section 2(b) of the Internal Revenue Code must be computed by 
  4.36  applying to taxable net income the following schedule of rates: 
  5.1      (1) On the first $21,630 $23,940, 5.35 percent; 
  5.2      (2) On all over $21,630 $23,940, but not over 
  5.3   $86,910 $96,180, 7.05 percent; 
  5.4      (3) On all over $86,910 $96,180, but not over $500,000, 
  5.5   7.85 percent; 
  5.6      (4) On all over $500,000, 8.05 percent. 
  5.7      (d) In lieu of a tax computed according to the rates set 
  5.8   forth in this subdivision, the tax of any individual taxpayer 
  5.9   whose taxable net income for the taxable year is less than an 
  5.10  amount determined by the commissioner must be computed in 
  5.11  accordance with tables prepared and issued by the commissioner 
  5.12  of revenue based on income brackets of not more than $100.  The 
  5.13  amount of tax for each bracket shall be computed at the rates 
  5.14  set forth in this subdivision, provided that the commissioner 
  5.15  may disregard a fractional part of a dollar unless it amounts to 
  5.16  50 cents or more, in which case it may be increased to $1. 
  5.17     (e) An individual who is not a Minnesota resident for the 
  5.18  entire year must compute the individual's Minnesota income tax 
  5.19  as provided in this subdivision.  After the application of the 
  5.20  nonrefundable credits provided in this chapter, the tax 
  5.21  liability must then be multiplied by a fraction in which:  
  5.22     (1) the numerator is the individual's Minnesota source 
  5.23  federal adjusted gross income as defined in section 62 of the 
  5.24  Internal Revenue Code and increased by the additions required 
  5.25  under section 290.01, subdivision 19a, clauses (1), (5), and 
  5.26  (6), and reduced by the subtraction under section 290.01, 
  5.27  subdivision 19b, clause (11), and the Minnesota assignable 
  5.28  portion of the subtraction for United States government interest 
  5.29  under section 290.01, subdivision 19b, clause (1), after 
  5.30  applying the allocation and assignability provisions of section 
  5.31  290.081, clause (a), or 290.17; and 
  5.32     (2) the denominator is the individual's federal adjusted 
  5.33  gross income as defined in section 62 of the Internal Revenue 
  5.34  Code of 1986, increased by the amounts specified in section 
  5.35  290.01, subdivision 19a, clauses (1), (5), and (6), and reduced 
  5.36  by the amounts specified in section 290.01, subdivision 19b, 
  6.1   clauses (1) and (11). 
  6.2      [EFFECTIVE DATE.] This section is effective for taxable 
  6.3   years beginning after December 31, 2003. 
  6.4      Sec. 3.  Minnesota Statutes 2002, section 290.06, 
  6.5   subdivision 2d, is amended to read: 
  6.6      Subd. 2d.  [INFLATION ADJUSTMENT OF BRACKETS.] (a) For 
  6.7   taxable years beginning after December 31, 2000 2004, the 
  6.8   minimum and maximum dollar amounts for each rate bracket for 
  6.9   which a tax is imposed in subdivision 2c shall be adjusted for 
  6.10  inflation by the percentage determined under paragraph (b).  For 
  6.11  the purpose of making the adjustment as provided in this 
  6.12  subdivision all of the rate brackets provided in subdivision 2c 
  6.13  shall be the rate brackets as they existed for taxable years 
  6.14  beginning after December 31, 1999 2003, and before January 
  6.15  1, 2001 2005.  The rate applicable to any rate bracket must not 
  6.16  be changed.  The dollar amounts setting forth the tax shall be 
  6.17  adjusted to reflect the changes in the rate brackets.  The rate 
  6.18  brackets as adjusted must be rounded to the nearest $10 amount.  
  6.19  If the rate bracket ends in $5, it must be rounded up to the 
  6.20  nearest $10 amount.  
  6.21     (b) The commissioner shall adjust the rate brackets and by 
  6.22  the percentage determined pursuant to the provisions of section 
  6.23  1(f) of the Internal Revenue Code, except that in section 
  6.24  1(f)(3)(B) the word "1999" "2003" shall be substituted for the 
  6.25  word "1992."  For 2001 2005, the commissioner shall then 
  6.26  determine the percent change from the 12 months ending on August 
  6.27  31, 1999 2003, to the 12 months ending on August 31, 2000 2004, 
  6.28  and in each subsequent year, from the 12 months ending on August 
  6.29  31, 1999 2003, to the 12 months ending on August 31 of the year 
  6.30  preceding the taxable year.  The determination of the 
  6.31  commissioner pursuant to this subdivision shall not be 
  6.32  considered a "rule" and shall not be subject to the 
  6.33  Administrative Procedure Act contained in chapter 14.  
  6.34     No later than December 15 of each year, the commissioner 
  6.35  shall announce the specific percentage that will be used to 
  6.36  adjust the tax rate brackets. 
  7.1      [EFFECTIVE DATE.] This section is effective for taxable 
  7.2   years beginning after December 31, 2004.