HF 3736

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to human services; making changes to child care provider rates and
parent fees; eliminating certain health care co-pays; increasing the MFIP
transitional standard; reinstating health care benefits for certain noncitizens;
repealing MFIP housing and SSI penalties; modifying foreign operating
corporation tax provision; appropriating money from the tax relief account;
amending Minnesota Statutes 2004, sections 119B.13, by adding a subdivision;
256J.24, by adding a subdivision; 290.34, subdivision 1; Minnesota Statutes
2005 Supplement, sections 119B.09, subdivision 1; 256D.03, subdivisions 3,
4; 256J.21, subdivision 2; 289A.38, subdivision 6; 290.01, subdivisions 6b,
19c, 19d; proposing coding for new law in Minnesota Statutes, chapter 119B;
repealing Minnesota Statutes 2004, sections 256B.0631, subdivisions 2, 4;
256J.37, subdivision 3a; 256L.04, subdivision 10; Minnesota Statutes 2005
Supplement, sections 256B.0631, subdivisions 1, 3; 256J.37, subdivision 3b;
Laws 2005, First Special Session chapter 4, article 3, section 19.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

WELFARE REFORM ARTICLE

Section 1.

Minnesota Statutes 2005 Supplement, section 119B.09, subdivision 1, is
amended to read:

Subdivision 1.

General eligibility requirements for all applicants for child
care assistance.

(a) Child care services must be available to families who need child
care to find or keep employment or to obtain the training or education necessary to find
employment and who:

(1) have household income less than or equal to 250 percent of the federal poverty
guidelines, adjusted for family size, and meet the requirements of section 119B.05;
receive MFIP assistance; and are participating in employment and training services under
chapter 256J or 256K; or

(2) have household income less than or equal to deleted text begin 175 deleted text end new text begin 200 new text end percent of the federal
poverty guidelines, adjusted for family size, at program entry and less than 250 percent of
the federal poverty guidelines, adjusted for family size, at program exit.

(b) Child care services must be made available as in-kind services.

(c) All applicants for child care assistance and families currently receiving child care
assistance must be assisted and required to cooperate in establishment of paternity and
enforcement of child support obligations for all children in the family as a condition
of program eligibility. For purposes of this section, a family is considered to meet the
requirement for cooperation when the family complies with the requirements of section
256.741.

Sec. 2.

new text begin [119B.095] CO-PAYMENT FEE FOR FAMILIES WITH ANNUAL
INCOMES THAT EXCEED THE FEDERAL POVERTY LEVEL.
new text end

new text begin (a) The monthly family co-payment fee for families with annual incomes greater than
the federal poverty level, adjusted for family size, is determined in paragraphs (b) and (c):
new text end

new text begin (b) The family's annual gross income is converted into a percentage of state median
income (SMI) for a family of four, adjusted for family size, by dividing the family's
annual gross income by 100 percent of the SMI for a family of four, adjusted for family
size. The percentage must be carried out to the nearest 100th of a percent.
new text end

new text begin (c) If the family's annual gross income is less than or equal to 75 percent of the
SMI for a family of four, adjusted for family size, the family's monthly co-payment fee
is the fixed percentage established for the family's income range in clauses (1) to (60),
multiplied by the highest possible income within that income range, divided by 12, and
rounded to the nearest whole dollar.
new text end

	new text begin Percent of SMI new text end	new text begin Percent new text end
new text begin (1) new text end	new text begin less than 35.01 new text end	new text begin 2.20 new text end
new text begin (2) new text end	new text begin 35.01 to 42.00 new text end	new text begin 2.70 new text end
new text begin (3) new text end	new text begin 42.01 to 43.00 new text end	new text begin 3.75 new text end
new text begin (4) new text end	new text begin 43.01 to 44.00 new text end	new text begin 4.00 new text end
new text begin (5) new text end	new text begin 44.01 to 45.00 new text end	new text begin 4.25 new text end
new text begin (6) new text end	new text begin 45.01 to 46.00 new text end	new text begin 4.50 new text end
new text begin (7) new text end	new text begin 46.01 to 47.00 new text end	new text begin 4.75 new text end
new text begin (8) new text end	new text begin 47.01 to 48.00 new text end	new text begin 5.00 new text end
new text begin (9) new text end	new text begin 48.01 to 49.00 new text end	new text begin 5.25 new text end
new text begin (10) new text end	new text begin 49.01 to 50.00 new text end	new text begin 5.50 new text end
new text begin (11) new text end	new text begin 50.01 to 50.50 new text end	new text begin 5.75 new text end
new text begin (12) new text end	new text begin 50.51 to 51.00 new text end	new text begin 6.00 new text end
new text begin (13) new text end	new text begin 51.01 to 51.50 new text end	new text begin 6.25 new text end
new text begin (14) new text end	new text begin 51.51 to 52.00 new text end	new text begin 6.50 new text end
new text begin (15) new text end	new text begin 52.01 to 52.50 new text end	new text begin 6.75 new text end
new text begin (16) new text end	new text begin 52.51 to 53.00 new text end	new text begin 7.00 new text end
new text begin (17) new text end	new text begin 53.01 to 53.50 new text end	new text begin 7.25 new text end
new text begin (18) new text end	new text begin 53.51 to 54.00 new text end	new text begin 7.50 new text end
new text begin (19) new text end	new text begin 54.01 to 54.50 new text end	new text begin 7.75 new text end
new text begin (20) new text end	new text begin 54.51 to 55.00 new text end	new text begin 8.00 new text end
new text begin (21) new text end	new text begin 55.01 to 55.50 new text end	new text begin 8.30 new text end
new text begin (22) new text end	new text begin 55.51 to 56.00 new text end	new text begin 8.60 new text end
new text begin (23) new text end	new text begin 56.01 to 56.50 new text end	new text begin 8.90 new text end
new text begin (24) new text end	new text begin 56.51 to 57.00 new text end	new text begin 9.20 new text end
new text begin (25) new text end	new text begin 57.01 to 57.50 new text end	new text begin 9.50 new text end
new text begin (26) new text end	new text begin 57.51 to 58.00 new text end	new text begin 9.80 new text end
new text begin (27) new text end	new text begin 58.01 to 58.50 new text end	new text begin 10.10 new text end
new text begin (28) new text end	new text begin 58.51 to 59.00 new text end	new text begin 10.40 new text end
new text begin (29) new text end	new text begin 59.01 to 59.50 new text end	new text begin 10.70 new text end
new text begin (30) new text end	new text begin 59.51 to 60.00 new text end	new text begin 11.00 new text end
new text begin (31) new text end	new text begin 60.01 to 60.50 new text end	new text begin 11.30 new text end
new text begin (32) new text end	new text begin 60.51 to 61.00 new text end	new text begin 11.60 new text end
new text begin (33) new text end	new text begin 61.01 to 61.50 new text end	new text begin 11.90 new text end
new text begin (34) new text end	new text begin 61.51 to 62.00 new text end	new text begin 12.20 new text end
new text begin (35) new text end	new text begin 62.01 to 62.50 new text end	new text begin 12.50 new text end
new text begin (36) new text end	new text begin 62.51 to 63.00 new text end	new text begin 12.80 new text end
new text begin (37) new text end	new text begin 63.01 to 63.50 new text end	new text begin 13.10 new text end
new text begin (38) new text end	new text begin 63.51 to 64.00 new text end	new text begin 13.40 new text end
new text begin (39) new text end	new text begin 64.01 to 64.50 new text end	new text begin 13.70 new text end
new text begin (40) new text end	new text begin 64.51 to 65.00 new text end	new text begin 14.00 new text end
new text begin (41) new text end	new text begin 65.01 to 65.50 new text end	new text begin 14.30 new text end
new text begin (42) new text end	new text begin 65.51 to 66.00 new text end	new text begin 14.60 new text end
new text begin (43) new text end	new text begin 66.01 to 66.50 new text end	new text begin 14.90 new text end
new text begin (44) new text end	new text begin 66.51 to 67.00 new text end	new text begin 15.20 new text end
new text begin (45) new text end	new text begin 67.01 to 67.50 new text end	new text begin 15.50 new text end
new text begin (46) new text end	new text begin 67.51 to 68.00 new text end	new text begin 15.80 new text end
new text begin (47) new text end	new text begin 68.01 to 68.50 new text end	new text begin 16.10 new text end
new text begin (48) new text end	new text begin 68.51 to 69.00 new text end	new text begin 16.40 new text end
new text begin (49) new text end	new text begin 69.01 to 69.50 new text end	new text begin 16.70 new text end
new text begin (50) new text end	new text begin 69.51 to 70.00 new text end	new text begin 17.00 new text end
new text begin (51) new text end	new text begin 70.01 to 70.50 new text end	new text begin 17.30 new text end
new text begin (52) new text end	new text begin 70.51 to 71.00 new text end	new text begin 17.60 new text end
new text begin (53) new text end	new text begin 71.01 to 71.50 new text end	new text begin 17.90 new text end
new text begin (54) new text end	new text begin 71.51 to 72.00 new text end	new text begin 18.20 new text end
new text begin (55) new text end	new text begin 72.01 to 72.50 new text end	new text begin 18.50 new text end
new text begin (56) new text end	new text begin 72.51 to 73.00 new text end	new text begin 18.80 new text end
new text begin (57) new text end	new text begin 73.01 to 73.50 new text end	new text begin 19.10 new text end
new text begin (58) new text end	new text begin 73.51 to 74.00 new text end	new text begin 19.40 new text end
new text begin (59) new text end	new text begin 74.01 to 74.50 new text end	new text begin 19.70 new text end
new text begin (60) new text end	new text begin 74.51 to 75.00 new text end	new text begin 20.00 new text end

Sec. 3.

Minnesota Statutes 2004, section 119B.13, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Cost of living increase. new text end

new text begin In addition to the provider rates specified under
this section, the commissioner shall provide a two percent cost of living rate increase to
providers.
new text end

Sec. 4.

Minnesota Statutes 2005 Supplement, section 256D.03, subdivision 3, is
amended to read:

Subd. 3.

General assistance medical care; eligibility.

(a) General assistance
medical care may be paid for any person who is not eligible for medical assistance under
chapter 256B, including eligibility for medical assistance based on a spenddown of excess
income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in
paragraph (b), except as provided in paragraph (c), and:

(1) who is receiving assistance under section 256D.05, except for families with
children who are eligible under Minnesota family investment program (MFIP), or who is
having a payment made on the person's behalf under sections 256I.01 to 256I.06; or

(2) who is a resident of Minnesota; and

(i) who has gross countable income not in excess of 75 percent of the federal poverty
guidelines for the family size, using a six-month budget period and whose equity in assets
is not in excess of $1,000 per assistance unit. Exempt assets, the reduction of excess
assets, and the waiver of excess assets must conform to the medical assistance program in
section 256B.056, subdivision 3, with the following exception: the maximum amount of
undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by
the trustee, assuming the full exercise of the trustee's discretion under the terms of the
trust, must be applied toward the asset maximum;

(ii) who has gross countable income above 75 percent of the federal poverty
guidelines but not in excess of 175 percent of the federal poverty guidelines for the
family size, using a six-month budget period, whose equity in assets is not in excess
of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient
hospitalization; or

(iii) the commissioner shall adjust the income standards under this section each July
1 by the annual update of the federal poverty guidelines following publication by the
United States Department of Health and Human Services.

(b) Effective for applications and renewals processed on or after September 1, 2006,
general assistance medical care may not be paid for applicants or recipients who are adults
with dependent children under 21 whose gross family income is equal to or less than 275
percent of the federal poverty guidelines who are not described in paragraph (e).

(c) Effective for applications and renewals processed on or after September 1, 2006,
general assistance medical care may be paid for applicants and recipients who meet all
eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period
beginning the date of application. Immediately following approval of general assistance
medical care, enrollees shall be enrolled in MinnesotaCare under section 256L.04,
subdivision 7, with covered services as provided in section 256L.03 for the rest of the
six-month eligibility period, until their six-month renewal.

(d) To be eligible for general assistance medical care following enrollment in
MinnesotaCare as required by paragraph (c), an individual must complete a new
application.

(e) Applicants and recipients eligible under paragraph (a), clause (1), or who have
applied for and are awaiting a determination of blindness or disability by the state medical
review team or a determination of eligibility for Supplemental Security Income or Social
Security Disability Insurance by the Social Security Administration, or who fail to meet
the requirements of section 256L.09, subdivision 2, are exempt from the MinnesotaCare
enrollment requirements of this subdivision.

(f) For applications received on or after October 1, 2003, eligibility may begin no
earlier than the date of application. For individuals eligible under paragraph (a), clause
(2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are
eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but
may reapply if there is a subsequent period of inpatient hospitalization.

(g) Beginning September 1, 2006, Minnesota health care program applications and
renewals completed by recipients and applicants who are persons described in paragraph
(c) and submitted to the county agency shall be determined for MinnesotaCare eligibility
by the county agency. If all other eligibility requirements of this subdivision are met,
eligibility for general assistance medical care shall be available in any month during which
MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare,
notice of termination for eligibility for general assistance medical care shall be sent to
an applicant or recipient. If all other eligibility requirements of this subdivision are
met, eligibility for general assistance medical care shall be available until enrollment in
MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).

(h) The date of an initial Minnesota health care program application necessary to
begin a determination of eligibility shall be the date the applicant has provided a name,
address, and Social Security number, signed and dated, to the county agency or the
Department of Human Services. If the applicant is unable to provide a name, address,
Social Security number, and signature when health care is delivered due to a medical
condition or disability, a health care provider may act on an applicant's behalf to establish
the date of an initial Minnesota health care program application by providing the county
agency or Department of Human Services with provider identification and a temporary
unique identifier for the applicant. The applicant must complete the remainder of the
application and provide necessary verification before eligibility can be determined. The
county agency must assist the applicant in obtaining verification if necessary.

(i) County agencies are authorized to use all automated databases containing
information regarding recipients' or applicants' income in order to determine eligibility
for general assistance medical care or MinnesotaCare. Such use shall be considered
sufficient in order to determine eligibility and premium payments by the county agency.

(j) General assistance medical care is not available for a person in a correctional
facility unless the person is detained by law for less than one year in a county correctional
or detention facility as a person accused or convicted of a crime, or admitted as an
inpatient to a hospital on a criminal hold order, and the person is a recipient of general
assistance medical care at the time the person is detained by law or admitted on a criminal
hold order and as long as the person continues to meet other eligibility requirements
of this subdivision.

(k) General assistance medical care is not available for applicants or recipients who
do not cooperate with the county agency to meet the requirements of medical assistance.

(l) In determining the amount of assets of an individual eligible under paragraph
(a), clause (2), item (i), there shall be included any asset or interest in an asset, including
an asset excluded under paragraph (a), that was given away, sold, or disposed of for
less than fair market value within the 60 months preceding application for general
assistance medical care or during the period of eligibility. Any transfer described in this
paragraph shall be presumed to have been for the purpose of establishing eligibility for
general assistance medical care, unless the individual furnishes convincing evidence to
establish that the transaction was exclusively for another purpose. For purposes of this
paragraph, the value of the asset or interest shall be the fair market value at the time it
was given away, sold, or disposed of, less the amount of compensation received. For any
uncompensated transfer, the number of months of ineligibility, including partial months,
shall be calculated by dividing the uncompensated transfer amount by the average monthly
per person payment made by the medical assistance program to skilled nursing facilities
for the previous calendar year. The individual shall remain ineligible until this fixed period
has expired. The period of ineligibility may exceed 30 months, and a reapplication for
benefits after 30 months from the date of the transfer shall not result in eligibility unless
and until the period of ineligibility has expired. The period of ineligibility begins in the
month the transfer was reported to the county agency, or if the transfer was not reported,
the month in which the county agency discovered the transfer, whichever comes first. For
applicants, the period of ineligibility begins on the date of the first approved application.

(m) When determining eligibility for any state benefits under this subdivision,
the income and resources of all noncitizens shall be deemed to include their sponsor's
income and resources as defined in the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and
subsequently set out in federal rules.

(n) new text begin (1) An new text end undocumented deleted text begin noncitizens and nonimmigrants are deleted text end new text begin noncitizen or a
nonimmigrant is new text end ineligible for general assistance medical care new text begin other than emergency
services new text end . For purposes of this subdivision, a nonimmigrant is an individual in one or
more of the classes listed in United States Code, title 8, section 1101(a)(15), and an
undocumented noncitizen is an individual who resides in the United States without the
approval or acquiescence of the Immigration and Naturalization Service.

new text begin (2) This paragraph does not apply to a child under age 18; to a Cuban or Haitian
entrant as defined in Public Law 96-422, section 501(e)(1) or (2)(a); or to a noncitizen
who is aged, blind, or disabled as defined in Code of Federal Regulations, title 42,
sections 435.520, 435.530, 435.531, 435.540, and 435.541, who cooperates with United
States Citizenship and Immigration Services to pursue any applicable immigration status,
including citizenship, that would qualify the individual for medical assistance with federal
financial participation.
new text end

new text begin (3) For purposes of this paragraph, "emergency services" has the meaning given in
Code of Federal Regulations, title 42, section 440.255(b)(1), except that it also means
services rendered because of suspected or actual pesticide poisoning.
new text end

(o) Notwithstanding any other provision of law, a noncitizen who is ineligible for
medical assistance due to the deeming of a sponsor's income and resources, is ineligible
for general assistance medical care.

deleted text begin (p) Effective July 1, 2003, general assistance medical care emergency services end.
deleted text end

Sec. 5.

Minnesota Statutes 2005 Supplement, section 256D.03, subdivision 4, is
amended to read:

Subd. 4.

General assistance medical care; services.

(a)(i) For a person who is
eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical
care covers, except as provided in paragraph (c):

(1) inpatient hospital services;

(2) outpatient hospital services;

(3) services provided by Medicare certified rehabilitation agencies;

(4) prescription drugs and other products recommended through the process
established in section 256B.0625, subdivision 13;

(5) equipment necessary to administer insulin and diagnostic supplies and equipment
for diabetics to monitor blood sugar level;

(6) eyeglasses and eye examinations provided by a physician or optometrist;

(7) hearing aids;

(8) prosthetic devices;

(9) laboratory and X-ray services;

(10) physician's services;

(11) medical transportation except special transportation;

(12) chiropractic services as covered under the medical assistance program;

(13) podiatric services;

(14) dental services as covered under the medical assistance program;

(15) outpatient services provided by a mental health center or clinic that is under
contract with the county board and is established under section 245.62;

(16) day treatment services for mental illness provided under contract with the
county board;

(17) prescribed medications for persons who have been diagnosed as mentally ill as
necessary to prevent more restrictive institutionalization;

(18) psychological services, medical supplies and equipment, and Medicare
premiums, coinsurance and deductible payments;

(19) medical equipment not specifically listed in this paragraph when the use of
the equipment will prevent the need for costlier services that are reimbursable under
this subdivision;

(20) services performed by a certified pediatric nurse practitioner, a certified family
nurse practitioner, a certified adult nurse practitioner, a certified obstetric/gynecological
nurse practitioner, a certified neonatal nurse practitioner, or a certified geriatric nurse
practitioner in independent practice, if (1) the service is otherwise covered under this
chapter as a physician service, (2) the service provided on an inpatient basis is not included
as part of the cost for inpatient services included in the operating payment rate, and (3) the
service is within the scope of practice of the nurse practitioner's license as a registered
nurse, as defined in section 148.171;

(21) services of a certified public health nurse or a registered nurse practicing in
a public health nursing clinic that is a department of, or that operates under the direct
authority of, a unit of government, if the service is within the scope of practice of the
public health nurse's license as a registered nurse, as defined in section 148.171;

(22) telemedicine consultations, to the extent they are covered under section
256B.0625, subdivision 3b; and

(23) mental health telemedicine and psychiatric consultation as covered under
section 256B.0625, subdivisions 46 and 48.

(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3,
paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited
to inpatient hospital services, including physician services provided during the inpatient
hospital stay. A $1,000 deductible is required for each inpatient hospitalization.

(b) Effective August 1, 2005, sex reassignment surgery is not covered under this
subdivision.

(c) In order to contain costs, the commissioner of human services shall select
vendors of medical care who can provide the most economical care consistent with high
medical standards and shall where possible contract with organizations on a prepaid
capitation basis to provide these services. The commissioner shall consider proposals by
counties and vendors for prepaid health plans, competitive bidding programs, block grants,
or other vendor payment mechanisms designed to provide services in an economical
manner or to control utilization, with safeguards to ensure that necessary services are
provided. Before implementing prepaid programs in counties with a county operated or
affiliated public teaching hospital or a hospital or clinic operated by the University of
Minnesota, the commissioner shall consider the risks the prepaid program creates for the
hospital and allow the county or hospital the opportunity to participate in the program in a
manner that reflects the risk of adverse selection and the nature of the patients served by
the hospital, provided the terms of participation in the program are competitive with the
terms of other participants considering the nature of the population served. Payment for
services provided pursuant to this subdivision shall be as provided to medical assistance
vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For
payments made during fiscal year 1990 and later years, the commissioner shall consult
with an independent actuary in establishing prepayment rates, but shall retain final control
over the rate methodology.

deleted text begin (d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following
co-payments for services provided on or after October 1, 2003:
deleted text end

deleted text begin (1) $25 for eyeglasses;
deleted text end

deleted text begin (2) $25 for nonemergency visits to a hospital-based emergency room;
deleted text end

deleted text begin (3) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $12 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness; and
deleted text end

deleted text begin (4) 50 percent coinsurance on restorative dental services.
deleted text end

deleted text begin (e) Co-payments shall be limited to one per day per provider for nonpreventive visits,
eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of
general assistance medical care are responsible for all co-payments in this subdivision.
The general assistance medical care reimbursement to the provider shall be reduced by
the amount of the co-payment, except that reimbursement for prescription drugs shall not
be reduced once a recipient has reached the $12 per month maximum for prescription
drug co-payments. The provider collects the co-payment from the recipient. Providers
may not deny services to recipients who are unable to pay the co-payment, except as
provided in paragraph (f).
deleted text end

deleted text begin (f) If it is the routine business practice of a provider to refuse service to an individual
with uncollected debt, the provider may include uncollected co-payments under this
section. A provider must give advance notice to a recipient with uncollected debt before
services can be denied.
deleted text end

deleted text begin (g) deleted text end new text begin (d) new text end Any county may, from its own resources, provide medical payments for
which state payments are not made.

deleted text begin (h) deleted text end new text begin (e) new text end Chemical dependency services that are reimbursed under chapter 254B must
not be reimbursed under general assistance medical care.

deleted text begin (i) deleted text end new text begin (f) new text end The maximum payment for new vendors enrolled in the general assistance
medical care program after the base year shall be determined from the average usual and
customary charge of the same vendor type enrolled in the base year.

deleted text begin (j) deleted text end new text begin (g) new text end The conditions of payment for services under this subdivision are the same
as the conditions specified in rules adopted under chapter 256B governing the medical
assistance program, unless otherwise provided by statute or rule.

deleted text begin (k) deleted text end new text begin (h) new text end Inpatient and outpatient payments shall be reduced by five percent, effective
July 1, 2003. This reduction is in addition to the five percent reduction effective July 1,
2003, and incorporated by reference in paragraph deleted text begin (i) deleted text end new text begin (f) new text end .

deleted text begin (l) deleted text end new text begin (i) new text end Payments for all other health services except inpatient, outpatient, and
pharmacy services shall be reduced by five percent, effective July 1, 2003.

deleted text begin (m) deleted text end new text begin (j) new text end Payments to managed care plans shall be reduced by five percent for services
provided on or after October 1, 2003.

deleted text begin (n) deleted text end new text begin (k) new text end A hospital receiving a reduced payment as a result of this section may apply
the unpaid balance toward satisfaction of the hospital's bad debts.

deleted text begin (o) Fee-for-service payments for nonpreventive visits shall be reduced by $3
for services provided on or after January 1, 2006. For purposes of this subdivision, a
visit means an episode of service which is required because of a recipient's symptoms,
diagnosis, or established illness, and which is delivered in an ambulatory setting by
a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse,
audiologist, optician, or optometrist.
deleted text end

deleted text begin (p) Payments to managed care plans shall not be increased as a result of the removal
of the $3 nonpreventive visit co-payment effective January 1, 2006.
deleted text end

Sec. 6.

Minnesota Statutes 2005 Supplement, section 256J.21, subdivision 2, is
amended to read:

Subd. 2.

Income exclusions.

The following must be excluded in determining a
family's available income:

(1) payments for basic care, difficulty of care, and clothing allowances received for
providing family foster care to children or adults under Minnesota Rules, parts 9555.5050
to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, and payments received and used
for care and maintenance of a third-party beneficiary who is not a household member;

(2) reimbursements for employment training received through the Workforce
Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;

(3) reimbursement for out-of-pocket expenses incurred while performing volunteer
services, jury duty, employment, or informal carpooling arrangements directly related to
employment;

(4) all educational assistance, except the county agency must count graduate student
teaching assistantships, fellowships, and other similar paid work as earned income and,
after allowing deductions for any unmet and necessary educational expenses, shall
count scholarships or grants awarded to graduate students that do not require teaching
or research as unearned income;

(5) loans, regardless of purpose, from public or private lending institutions,
governmental lending institutions, or governmental agencies;

(6) loans from private individuals, regardless of purpose, provided an applicant or
participant documents that the lender expects repayment;

(7)(i) state income tax refunds; and

(ii) federal income tax refunds;

(8)(i) federal earned income credits;

(ii) Minnesota working family credits;

(iii) state homeowners and renters credits under chapter 290A; and

(iv) federal or state tax rebates;

(9) funds received for reimbursement, replacement, or rebate of personal or real
property when these payments are made by public agencies, awarded by a court, solicited
through public appeal, or made as a grant by a federal agency, state or local government,
or disaster assistance organizations, subsequent to a presidential declaration of disaster;

(10) the portion of an insurance settlement that is used to pay medical, funeral, and
burial expenses, or to repair or replace insured property;

(11) reimbursements for medical expenses that cannot be paid by medical assistance;

(12) payments by a vocational rehabilitation program administered by the state
under chapter 268A, except those payments that are for current living expenses;

(13) in-kind income, including any payments directly made by a third party to a
provider of goods and services;

(14) assistance payments to correct underpayments, but only for the month in which
the payment is received;

(15) payments for short-term emergency needs under section 256J.626, subdivision
2;

(16) funeral and cemetery payments as provided by section 256.935;

(17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in
a calendar month;

(18) any form of energy assistance payment made through Public Law 97-35,
Low-Income Home Energy Assistance Act of 1981, payments made directly to energy
providers by other public and private agencies, and any form of credit or rebate payment
issued by energy providers;

(19) Supplemental Security Income (SSI), including retroactive SSI payments and
other income of an SSI recipient deleted text begin , except as described in section 256J.37, subdivision 3b deleted text end ;

(20) Minnesota supplemental aid, including retroactive payments;

(21) proceeds from the sale of real or personal property;

(22) state adoption assistance payments under section 259.67, and up to an equal
amount of county adoption assistance payments;

(23) state-funded family subsidy program payments made under section 252.32 to
help families care for children with mental retardation or related conditions, consumer
support grant funds under section 256.476, and resources and services for a disabled
household member under one of the home and community-based waiver services
programs under chapter 256B;

(24) interest payments and dividends from property that is not excluded from and
that does not exceed the asset limit;

(25) rent rebates;

(26) income earned by a minor caregiver, minor child through age 6, or a minor
child who is at least a half-time student in an approved elementary or secondary education
program;

(27) income earned by a caregiver under age 20 who is at least a half-time student in
an approved elementary or secondary education program;

(28) MFIP child care payments under section 119B.05;

(29) all other payments made through MFIP to support a caregiver's pursuit of
greater economic stability;

(30) income a participant receives related to shared living expenses;

(31) reverse mortgages;

(32) benefits provided by the Child Nutrition Act of 1966, United States Code, title
42, chapter 13A, sections 1771 to 1790;

(33) benefits provided by the women, infants, and children (WIC) nutrition program,
United States Code, title 42, chapter 13A, section 1786;

(34) benefits from the National School Lunch Act, United States Code, title 42,
chapter 13, sections 1751 to 1769e;

(35) relocation assistance for displaced persons under the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title
42, chapter 61, subchapter II, section 4636, or the National Housing Act, United States
Code, title 12, chapter 13, sections 1701 to 1750jj;

(36) benefits from the Trade Act of 1974, United States Code, title 19, chapter
12, part 2, sections 2271 to 2322;

(37) war reparations payments to Japanese Americans and Aleuts under United
States Code, title 50, sections 1989 to 1989d;

(38) payments to veterans or their dependents as a result of legal settlements
regarding Agent Orange or other chemical exposure under Public Law 101-239, section
10405, paragraph (a)(2)(E);

(39) income that is otherwise specifically excluded from MFIP consideration in
federal law, state law, or federal regulation;

(40) security and utility deposit refunds;

(41) American Indian tribal land settlements excluded under Public Laws 98-123,
98-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech
Lake, and Mille Lacs reservations and payments to members of the White Earth Band,
under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;

(42) all income of the minor parent's parents and stepparents when determining the
grant for the minor parent in households that include a minor parent living with parents or
stepparents on MFIP with other children;

(43) income of the minor parent's parents and stepparents equal to 200 percent of the
federal poverty guideline for a family size not including the minor parent and the minor
parent's child in households that include a minor parent living with parents or stepparents
not on MFIP when determining the grant for the minor parent. The remainder of income is
deemed as specified in section 256J.37, subdivision 1b;

(44) payments made to children eligible for relative custody assistance under section
257.85;

(45) vendor payments for goods and services made on behalf of a client unless the
client has the option of receiving the payment in cash; and

(46) the principal portion of a contract for deed payment.

Sec. 7.

Minnesota Statutes 2004, section 256J.24, is amended by adding a subdivision
to read:

new text begin Subd. 5b. new text end

new text begin Cost of living increase. new text end

new text begin The commissioner shall provide a ten percent
cost of living increase to the cash portion of the transitional standard.
new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2004, sections 256B.0631, subdivisions 2 and 4; 256J.37,
subdivision 3a; and 256L.04, subdivision 10, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2005 Supplement, sections 256B.0631, subdivisions 1 and 3;
and 256J.37, subdivision 3b, new text end new text begin are repealed.
new text end

new text begin (c) new text end new text begin Laws 2005, First Special Session chapter 4, article 3, section 19, new text end new text begin is repealed.
new text end

ARTICLE 2

TAX ARTICLE

Section 1.

Minnesota Statutes 2005 Supplement, section 289A.38, subdivision 6,
is amended to read:

Subd. 6.

Omission in excess of 25 percent.

Additional taxes may be assessed
within 6-1/2 years after the due date of the return or the date the return was filed,
whichever is later, if:

(1) the taxpayer omits from deleted text begin gross deleted text end new text begin taxable new text end income an amount properly includable
in it that is in excess of 25 percent of the amount of deleted text begin gross deleted text end new text begin taxable new text end income deleted text begin stated in the
return deleted text end new text begin that would have been reported but for the omission new text end ;

(2) the taxpayer omits from a sales, use, or withholding tax return an amount of taxes
in excess of 25 percent of the taxes reported in the return; or

(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the
gross estate reported in the return.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2005 Supplement, section 290.01, subdivision 6b, is
amended to read:

Subd. 6b.

Foreign operating corporation.

The term "foreign operating
corporation," when applied to a corporation, means a domestic corporation with the
following characteristics:

(1) it is part of a unitary business at least one member of which is taxable in this state;

(2) it is not a foreign sales corporation under section 922 of the Internal Revenue
Code, as amended through December 31, 1999, for the taxable year;

(3) new text begin either new text end (i) deleted text begin the average of the percentages of its property and payrolls, including
the pro rata share of its unitary partnerships' property and payrolls, assigned to locations
outside the United States, where the United States includes the District of Columbia and
excludes the commonwealth of Puerto Rico and possessions of the United States, as
determined under section 290.191 or 290.20, is 80 percent or more; or (ii) deleted text end it has in effect a
valid election under section 936 of the Internal Revenue Code; new text begin or (ii) at least 80 percent
of the gross income from all sources of the corporation in the tax year is active foreign
business income; new text end and

(4) deleted text begin it has $1,000,000 of payroll and $2,000,000 of property, as determined under
section 290.191 or 290.20, that are located outside the United States. If the domestic
corporation does not have payroll as determined under section 290.191 or 290.20, but it
or its partnerships have paid $1,000,000 for work, performed directly for the domestic
corporation or the partnerships, outside the United States, then paragraph (3)(i) shall not
require payrolls to be included in the average calculation deleted text end new text begin for purposes of this subdivision,
active foreign business income means gross income that is (i) derived from sources
without the United States, as defined in subtitle A, chapter 1, subchapter N, part 1, of the
Internal Revenue Code; and (ii) attributable to the active conduct of a trade or business in
a foreign country new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2005.
new text end

Sec. 3.

Minnesota Statutes 2005 Supplement, section 290.01, subdivision 19c, is
amended to read:

Subd. 19c.

Corporations; additions to federal taxable income.

For corporations,
there shall be added to federal taxable income:

(1) the amount of any deduction taken for federal income tax purposes for income,
excise, or franchise taxes based on net income or related minimum taxes, including but not
limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of Columbia, or any
foreign country or possession of the United States;

(2) interest not subject to federal tax upon obligations of: the United States, its
possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
state, any of its political or governmental subdivisions, any of its municipalities, or any
of its governmental agencies or instrumentalities; the District of Columbia; or Indian
tribal governments;

(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
Revenue Code;

(4) the amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
deduction under section 810 of the Internal Revenue Code;

(5) the amount of any special deductions taken for federal income tax purposes
under sections 241 to 247 of the Internal Revenue Code;

(6) losses from the business of mining, as defined in section 290.05, subdivision 1,
clause (a), that are not subject to Minnesota income tax;

(7) the amount of any capital losses deducted for federal income tax purposes under
sections 1211 and 1212 of the Internal Revenue Code;

(8) the exempt foreign trade income of a foreign sales corporation under sections
921(a) and 291 of the Internal Revenue Code;

(9) the amount of percentage depletion deducted under sections 611 through 614 and
291 of the Internal Revenue Code;

(10) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;

(11) the amount of any deemed dividend from a foreign operating corporation
determined pursuant to section 290.17, subdivision 4, paragraph (g) new text begin . The deemed dividend
shall be reduced by the amount of the addition to income required by clauses (19), (20),
(21), and (22) new text end ;

(12) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(13) the amount of net income excluded under section 114 of the Internal Revenue
Code;

(14) any increase in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard
to the provisions of section 614 of Public Law 107-147;

(15) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
has an activity that in the taxable year generates a deduction for depreciation under
section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k)(1)(A) and (k)(4)(A) is allowed;

(16) 80 percent of the amount by which the deduction allowed by section 179 of the
Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
Revenue Code of 1986, as amended through December 31, 2003;

(17) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code; deleted text begin and
deleted text end

(18) the exclusion allowed under section 139A of the Internal Revenue Code for
federal subsidies for prescription drug plans deleted text begin . deleted text end new text begin ;
new text end

new text begin (19) an amount equal to the interest and intangible expenses, losses, and costs paid,
accrued, or incurred by any member of the taxpayer's unitary group to or for the benefit
of a corporation that is a member of the taxpayer's unitary business group that qualifies
as a foreign operating corporation. For purposes of this clause, intangible expenses and
costs include:
new text end

new text begin (i) expenses, losses, and costs for, or related to, the direct or indirect acquisition,
use, maintenance or management, ownership, sale, exchange, or any other disposition of
intangible property;
new text end

new text begin (ii) losses incurred, directly or indirectly, from factoring transactions or discounting
transactions;
new text end

new text begin (iii) royalty, patent, technical, and copyright fees;
new text end

new text begin (iv) licensing fees; and
new text end

new text begin (v) other similar expenses and costs.
new text end

new text begin For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.
new text end

new text begin This clause does not apply to any item of interest or intangible expenses or costs paid,
accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect
to such item of income to the extent that the income to the foreign operating corporation
is income from sources without the United States as defined in subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code;
new text end

new text begin (20) except as already included in the taxpayer's taxable income pursuant to clause
(19), any interest income and income generated from intangible property received or
accrued by a foreign operating corporation that is a member of the taxpayer's unitary
group. For purposes of this clause, income generated from intangible property includes:
new text end

new text begin (i) income related to the direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange, or any other disposition of intangible property;
new text end

new text begin (ii) income from factoring transactions or discounting transactions;
new text end

new text begin (iii) royalty, patent, technical, and copyright fees;
new text end

new text begin (iv) licensing fees; and
new text end

new text begin (v) other similar income.
new text end

new text begin For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
applications, trade names, trademarks, service marks, copyrights, mask works, trade
secrets, and similar types of intangible assets.
new text end

new text begin This clause does not apply to any item of interest or intangible income received or accrued
by a foreign operating corporation with respect to such item of income to the extent that
the income is income from sources without the United States as defined in subtitle A,
chapter 1, subchapter N, part 1, of the Internal Revenue Code;
new text end

new text begin (21) the dividends attributable to the income of a foreign operating corporation that
is a member of the taxpayer's unitary group in an amount that is equal to the dividends
paid deduction of a real estate investment trust under section 561(a) of the Internal
Revenue Code for amounts paid or accrued by the real estate investment trust to the
foreign operating corporation; and
new text end

new text begin (22) the income of a foreign operating corporation that is a member of the taxpayer's
unitary group in an amount that is equal to gains derived from the sale of real or personal
property located in the United States.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2005.
new text end

Sec. 4.

Minnesota Statutes 2005 Supplement, section 290.01, subdivision 19d, is
amended to read:

Subd. 19d.

Corporations; modifications decreasing federal taxable income.

For
corporations, there shall be subtracted from federal taxable income after the increases
provided in subdivision 19c:

(1) the amount of foreign dividend gross-up added to gross income for federal
income tax purposes under section 78 of the Internal Revenue Code;

(2) the amount of salary expense not allowed for federal income tax purposes due to
claiming the federal jobs credit under section 51 of the Internal Revenue Code;

(3) any dividend (not including any distribution in liquidation) paid within the
taxable year by a national or state bank to the United States, or to any instrumentality of
the United States exempt from federal income taxes, on the preferred stock of the bank
owned by the United States or the instrumentality;

(4) amounts disallowed for intangible drilling costs due to differences between
this chapter and the Internal Revenue Code in taxable years beginning before January
1, 1987, as follows:

(i) to the extent the disallowed costs are represented by physical property, an amount
equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09,
subdivision 7, subject to the modifications contained in subdivision 19e; and

(ii) to the extent the disallowed costs are not represented by physical property, an
amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
290.09, subdivision 8;

(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
Internal Revenue Code, except that:

(i) for capital losses incurred in taxable years beginning after December 31, 1986,
capital loss carrybacks shall not be allowed;

(ii) for capital losses incurred in taxable years beginning after December 31, 1986,
a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
allowed;

(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
capital loss carryback to each of the three taxable years preceding the loss year, subject to
the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and

(iv) for capital losses incurred in taxable years beginning before January 1, 1987,
a capital loss carryover to each of the five taxable years succeeding the loss year to the
extent such loss was not used in a prior taxable year and subject to the provisions of
Minnesota Statutes 1986, section 290.16, shall be allowed;

(6) an amount for interest and expenses relating to income not taxable for federal
income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
291 of the Internal Revenue Code in computing federal taxable income;

(7) in the case of mines, oil and gas wells, other natural deposits, and timber for
which percentage depletion was disallowed pursuant to subdivision 19c, clause (11), a
reasonable allowance for depletion based on actual cost. In the case of leases the deduction
must be apportioned between the lessor and lessee in accordance with rules prescribed
by the commissioner. In the case of property held in trust, the allowable deduction must
be apportioned between the income beneficiaries and the trustee in accordance with the
pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
of the trust's income allocable to each;

(8) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
1986, section 290.09, subdivision 7;

(9) amounts included in federal taxable income that are due to refunds of income,
excise, or franchise taxes based on net income or related minimum taxes paid by the
corporation to Minnesota, another state, a political subdivision of another state, the
District of Columbia, or a foreign country or possession of the United States to the extent
that the taxes were added to federal taxable income under section 290.01, subdivision 19c,
clause (1), in a prior taxable year;

(10) 80 percent of royalties, fees, or other like income accrued or received from a
foreign operating corporation or a foreign corporation which is part of the same unitary
business as the receiving corporation new text begin , unless the income resulting from such payments or
accruals is income from sources within the United States as defined in subtitle A, chapter
1, subchapter N, part 1, of the Internal Revenue Code new text end ;

(11) income or gains from the business of mining as defined in section 290.05,
subdivision 1, clause (a), that are not subject to Minnesota franchise tax;

(12) the amount of handicap access expenditures in the taxable year which are not
allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;

(13) the amount of qualified research expenses not allowed for federal income tax
purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that
the amount exceeds the amount of the credit allowed under section 290.068;

(14) the amount of salary expenses not allowed for federal income tax purposes due
to claiming the Indian employment credit under section 45A(a) of the Internal Revenue
Code;

(15) the amount of any refund of environmental taxes paid under section 59A of the
Internal Revenue Code;

(16) for taxable years beginning before January 1, 2008, the amount of the federal
small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
which is included in gross income under section 87 of the Internal Revenue Code;

(17) for a corporation whose foreign sales corporation, as defined in section 922
of the Internal Revenue Code, constituted a foreign operating corporation during any
taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
claiming the deduction under section 290.21, subdivision 4, for income received from
the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of
income excluded under section 114 of the Internal Revenue Code, provided the income is
not income of a foreign operating company;

(18) any decrease in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard
to the provisions of section 614 of Public Law 107-147;

(19) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause (15), an amount equal to one-fifth of
the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
amount of the addition made by the taxpayer under subdivision 19c, clause (15). The
resulting delayed depreciation cannot be less than zero; and

(20) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause (16), an amount equal to one-fifth of the
amount of the addition.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2005.
new text end

Sec. 5.

Minnesota Statutes 2004, section 290.34, subdivision 1, is amended to read:

Subdivision 1.

Business conducted in such a way as to create losses or improper
taxable net income.

new text begin (a) new text end When any corporation liable to taxation under this chapter
conducts its business in such a manner as, directly or indirectly, to benefit its members
or stockholders or any person or corporation interested in such business or to reduce the
income attributable to this state by selling the commodities or services in which it deals
at less than the fair price which might be obtained therefor, or buying such commodities
or services at more than the fair price for which they might have been obtained, or when
any corporation, a substantial portion of whose shares is owned directly or indirectly by
another corporation, deals in the commodities or services of the latter corporation in such
a manner as to create a loss or improper net income or to reduce the taxable net income
attributable to this state, the commissioner of revenue may determine the amount of its
income so as to reflect what would have been its reasonable taxable net income but for the
arrangements causing the understatement of its taxable net income or the overstatement of
its losses, having regard to the fair profits which, but for any agreement, arrangement, or
understanding, might have been or could have been obtained from such business.

new text begin (b) When any corporation engages in a transaction or series of transactions whose
primary business purpose is the avoidance of tax, or engages in a transaction or series of
transactions without economic substance, that transaction or series of transactions shall be
disregarded and the commissioner shall determine taxable net income without regard for
any such transaction or series of transactions.
new text end

Sec. 6. new text begin INTENT OF LEGISLATURE.
new text end

new text begin Section 5 does not change Minnesota law, but merely clarifies the legislature's
intention with respect to transactions without economic substance or business purpose.
new text end