SF 114

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

  1.1                          A bill for an act 
  1.2             relating to health; repealing MinnesotaCare provider 
  1.3             taxes; requiring pass-through of savings to 
  1.4             purchasers; providing for increases in cigarette and 
  1.5             tobacco taxes; amending Minnesota Statutes 2002, 
  1.6             sections 13.4963, subdivision 2; 62J.041, subdivision 
  1.7             1; 62Q.095, subdivision 6; 214.16, subdivisions 2, 3; 
  1.8             270B.14, subdivision 1; 297F.05, subdivisions 1, 3, 4; 
  1.9             297F.08, subdivision 7; 297F.09, subdivision 2; 
  1.10            297F.10; proposing coding for new law in Minnesota 
  1.11            Statutes, chapter 62Q; repealing Minnesota Statutes 
  1.12            2002, sections 13.4967, subdivision 3; 144.1484, 
  1.13            subdivision 2; 295.50; 295.51; 295.52; 295.53; 295.54; 
  1.14            295.55; 295.56; 295.57; 295.58; 295.581; 295.582; 
  1.15            295.59. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 2002, section 13.4963, 
  1.18  subdivision 2, is amended to read: 
  1.19     Subd. 2.  [GENERALLY.] Classification and disclosure of tax 
  1.20  data created, collected, or maintained by the department of 
  1.21  revenue under chapter 115B (except taxes imposed under sections 
  1.22  115B.21 to 115B.24), 289A (except for taxes imposed under 
  1.23  sections 298.01, 298.015, and 298.24), 290, 290A, 291, 297A, or 
  1.24  297H, and sections 295.50 to 295.59 or any similar Indian tribal 
  1.25  tax administered by the commissioner according to a tax 
  1.26  agreement between the state and an Indian tribal government are 
  1.27  governed by chapter 270B. 
  1.28     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  1.29     Sec. 2.  Minnesota Statutes 2002, section 62J.041, 
  1.30  subdivision 1, is amended to read: 
  2.1      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  2.2   section, the following definitions apply. 
  2.3      (b) "Health plan company" has the definition provided in 
  2.4   section 62Q.01. 
  2.5      (c) "Total expenditures" means incurred claims or 
  2.6   expenditures on health care services, administrative expenses, 
  2.7   charitable contributions, and all other payments made by health 
  2.8   plan companies out of premium revenues. 
  2.9      (d) "Net expenditures" means total expenditures minus 
  2.10  exempted taxes and assessments and payments or allocations made 
  2.11  to establish or maintain reserves.  
  2.12     (e) "Exempted taxes and assessments" means direct payments 
  2.13  for taxes to government agencies, contributions to the Minnesota 
  2.14  comprehensive health association, the medical assistance 
  2.15  provider's surcharge under section 256.9657, the MinnesotaCare 
  2.16  provider tax under Minnesota Statutes 2002, section 295.52, 
  2.17  assessments by the health coverage reinsurance association, 
  2.18  assessments by the Minnesota life and health insurance guaranty 
  2.19  association, assessments by the Minnesota risk adjustment 
  2.20  association, and any new assessments imposed by federal or state 
  2.21  law. 
  2.22     (f) "Consumer cost-sharing or subscriber liability" means 
  2.23  enrollee coinsurance, copayment, deductible payments, and 
  2.24  amounts in excess of benefit plan maximums. 
  2.25     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  2.26     Sec. 3.  Minnesota Statutes 2002, section 62Q.095, 
  2.27  subdivision 6, is amended to read: 
  2.28     Subd. 6.  [EXEMPTION.] A health plan company, to the extent 
  2.29  that it operates as a staff model health plan company as defined 
  2.30  in section 295.50, subdivision 12b, by employing allied 
  2.31  independent health care providers to deliver health care 
  2.32  services to enrollees, is exempt from this section.  For 
  2.33  purposes of this subdivision, "staff model health plan company" 
  2.34  means a health plan company as defined in section 62Q.01, 
  2.35  subdivision 4, that employs one or more types of health care 
  2.36  provider to deliver health care services to the health plan 
  3.1   company's enrollees.  
  3.2      [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  3.3      Sec. 4.  [62Q.752] [PASS-THROUGH OF SAVINGS TO PURCHASERS.] 
  3.4      Subdivision 1.  [REDUCED PREMIUMS.] All health plan 
  3.5   companies shall pass on to purchasers, in the form of reduced 
  3.6   premium rates, all savings resulting from the repeal of the 
  3.7   MinnesotaCare provider taxes imposed under Minnesota Statutes 
  3.8   2002, section 295.52, and the resulting reduction in the 
  3.9   transfer of additional expenses generated by provider tax 
  3.10  obligations to third-party contracts under Minnesota Statutes 
  3.11  2002, section 295.582. 
  3.12     Subd. 2.  [DOCUMENTING COMPLIANCE.] Each health plan 
  3.13  company shall annually submit documentation indicating 
  3.14  compliance with subdivision 1 to the appropriate commissioner. 
  3.15     Subd. 3.  [ENFORCEMENT.] If the appropriate commissioner 
  3.16  finds that a health plan company has not complied with 
  3.17  subdivision 1, the commissioner may take enforcement action 
  3.18  against the health plan company. 
  3.19     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  3.20     Sec. 5.  Minnesota Statutes 2002, section 214.16, 
  3.21  subdivision 2, is amended to read: 
  3.22     Subd. 2.  [BOARD COOPERATION REQUIRED.] The board shall 
  3.23  assist the commissioner of health in data collection activities 
  3.24  required under Laws 1992, chapter 549, article 7, and shall 
  3.25  assist the commissioner of revenue in activities related to 
  3.26  collection of the health care provider tax required under Laws 
  3.27  1992, chapter 549, article 9.  Upon the request of the 
  3.28  commissioner or the commissioner of revenue, the board shall 
  3.29  make available names and addresses of current licensees and 
  3.30  provide other information or assistance as needed. 
  3.31     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  3.32     Sec. 6.  Minnesota Statutes 2002, section 214.16, 
  3.33  subdivision 3, is amended to read: 
  3.34     Subd. 3.  [GROUNDS FOR DISCIPLINARY ACTION.] The board 
  3.35  shall take disciplinary action, which may include license 
  3.36  revocation, against a regulated person for: 
  4.1      (1) intentional failure to provide the commissioner of 
  4.2   health with the data required under chapter 62J; and 
  4.3      (2) intentional failure to provide the commissioner of 
  4.4   revenue with data on gross revenue and other information 
  4.5   required for the commissioner to implement sections 295.50 to 
  4.6   295.58; 
  4.7      (3) intentional failure to pay the health care provider tax 
  4.8   required under section 295.52; and 
  4.9      (4) entering into a contract or arrangement that is 
  4.10  prohibited under sections 62J.70 to 62J.73. 
  4.11     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  4.12     Sec. 7.  Minnesota Statutes 2002, section 270B.14, 
  4.13  subdivision 1, is amended to read: 
  4.14     Subdivision 1.  [DISCLOSURE TO COMMISSIONER OF HUMAN 
  4.15  SERVICES.] (a) On the request of the commissioner of human 
  4.16  services, the commissioner shall disclose return information 
  4.17  regarding taxes imposed by chapter 290, and claims for refunds 
  4.18  under chapter 290A, to the extent provided in paragraph (b) and 
  4.19  for the purposes set forth in paragraph (c). 
  4.20     (b) Data that may be disclosed are limited to data relating 
  4.21  to the identity, whereabouts, employment, income, and property 
  4.22  of a person owing or alleged to be owing an obligation of child 
  4.23  support. 
  4.24     (c) The commissioner of human services may request data 
  4.25  only for the purposes of carrying out the child support 
  4.26  enforcement program and to assist in the location of parents who 
  4.27  have, or appear to have, deserted their children.  Data received 
  4.28  may be used only as set forth in section 256.978. 
  4.29     (d) The commissioner shall provide the records and 
  4.30  information necessary to administer the supplemental housing 
  4.31  allowance to the commissioner of human services.  
  4.32     (e) At the request of the commissioner of human services, 
  4.33  the commissioner of revenue shall electronically match the 
  4.34  social security numbers and names of participants in the 
  4.35  telephone assistance plan operated under sections 237.69 to 
  4.36  237.711, with those of property tax refund filers, and determine 
  5.1   whether each participant's household income is within the 
  5.2   eligibility standards for the telephone assistance plan. 
  5.3      (f) The commissioner may provide records and information 
  5.4   collected under Minnesota Statutes 2002, sections 295.50 to 
  5.5   295.59 to the commissioner of human services for purposes of the 
  5.6   Medicaid Voluntary Contribution and Provider-Specific Tax 
  5.7   Amendments of 1991, Public Law Number 102-234.  Upon the written 
  5.8   agreement by the United States Department of Health and Human 
  5.9   Services to maintain the confidentiality of the data, the 
  5.10  commissioner may provide records and information collected under 
  5.11  Minnesota Statutes 2002, sections 295.50 to 295.59 to the 
  5.12  Centers for Medicare and Medicaid Services section of the United 
  5.13  States Department of Health and Human Services for purposes of 
  5.14  meeting federal reporting requirements. 
  5.15     (g) The commissioner may provide records and information to 
  5.16  the commissioner of human services as necessary to administer 
  5.17  the early refund of refundable tax credits. 
  5.18     (h) The commissioner may disclose information to the 
  5.19  commissioner of human services necessary to verify income for 
  5.20  eligibility and premium payment under the MinnesotaCare program, 
  5.21  under section 256L.05, subdivision 2. 
  5.22     (i) The commissioner may disclose information to the 
  5.23  commissioner of human services necessary to verify whether 
  5.24  applicants or recipients for the Minnesota family investment 
  5.25  program, general assistance, food stamps, and Minnesota 
  5.26  supplemental aid program have claimed refundable tax credits 
  5.27  under chapter 290 and the property tax refund under chapter 
  5.28  290A, and the amounts of the credits. 
  5.29     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  5.30     Sec. 8.  Minnesota Statutes 2002, section 297F.05, 
  5.31  subdivision 1, is amended to read: 
  5.32     Subdivision 1.  [RATES; CIGARETTES.] A tax is imposed upon 
  5.33  the sale of cigarettes in this state, upon having cigarettes in 
  5.34  possession in this state with intent to sell, upon any person 
  5.35  engaged in business as a distributor, and upon the use or 
  5.36  storage by consumers, at the following rates, subject to the 
  6.1   discount provided in this chapter: 
  6.2      (1) on cigarettes weighing not more than three pounds per 
  6.3   thousand, 24 74 mills on each such cigarette; and 
  6.4      (2) on cigarettes weighing more than three pounds per 
  6.5   thousand, 48 148 mills on each such cigarette. 
  6.6      [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  6.7      Sec. 9.  Minnesota Statutes 2002, section 297F.05, 
  6.8   subdivision 3, is amended to read: 
  6.9      Subd. 3.  [RATES; TOBACCO PRODUCTS.] A tax is imposed upon 
  6.10  all tobacco products in this state and upon any person engaged 
  6.11  in business as a distributor, at the rate of 35 108 percent of 
  6.12  the wholesale sales price of the tobacco products.  The tax is 
  6.13  imposed at the time the distributor: 
  6.14     (1) brings, or causes to be brought, into this state from 
  6.15  outside the state tobacco products for sale; 
  6.16     (2) makes, manufactures, or fabricates tobacco products in 
  6.17  this state for sale in this state; or 
  6.18     (3) ships or transports tobacco products to retailers in 
  6.19  this state, to be sold by those retailers. 
  6.20     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  6.21     Sec. 10.  Minnesota Statutes 2002, section 297F.05, 
  6.22  subdivision 4, is amended to read: 
  6.23     Subd. 4.  [USE TAX; TOBACCO PRODUCTS.] A tax is imposed 
  6.24  upon the use or storage by consumers of tobacco products in this 
  6.25  state, and upon such consumers, at the rate of 35 108 percent of 
  6.26  the cost to the consumer of the tobacco products. 
  6.27     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  6.28     Sec. 11.  Minnesota Statutes 2002, section 297F.08, 
  6.29  subdivision 7, is amended to read: 
  6.30     Subd. 7.  [PRICE OF STAMPS.] The commissioner shall sell 
  6.31  stamps to any person licensed as a distributor at a discount 
  6.32  of 1.0 .32 percent from the face amount of the stamps for the 
  6.33  first $1,500,000 of such stamps purchased in any fiscal year; 
  6.34  and at a discount of 0.6 .19 percent on the remainder of such 
  6.35  stamps purchased in any fiscal year.  The commissioner shall not 
  6.36  sell stamps to any other person.  The commissioner may prescribe 
  7.1   the method of shipment of the stamps to the distributor as well 
  7.2   as the quantities of stamps purchased. 
  7.3      [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  7.4      Sec. 12.  Minnesota Statutes 2002, section 297F.09, 
  7.5   subdivision 2, is amended to read: 
  7.6      Subd. 2.  [MONTHLY RETURN; TOBACCO PRODUCTS DISTRIBUTOR.] 
  7.7   On or before the 18th day of each calendar month, a distributor 
  7.8   with a place of business in this state shall file a return with 
  7.9   the commissioner showing the quantity and wholesale sales price 
  7.10  of each tobacco product: 
  7.11     (1) brought, or caused to be brought, into this state for 
  7.12  sale; and 
  7.13     (2) made, manufactured, or fabricated in this state for 
  7.14  sale in this state, during the preceding calendar month.  
  7.15  Every licensed distributor outside this state shall in like 
  7.16  manner file a return showing the quantity and wholesale sales 
  7.17  price of each tobacco product shipped or transported to 
  7.18  retailers in this state to be sold by those retailers, during 
  7.19  the preceding calendar month.  Returns must be made in the form 
  7.20  and manner prescribed by the commissioner and must contain any 
  7.21  other information required by the commissioner.  The return must 
  7.22  be accompanied by a remittance for the full tax liability shown, 
  7.23  less 1.5 .49 percent of the liability as compensation to 
  7.24  reimburse the distributor for expenses incurred in the 
  7.25  administration of this chapter.  
  7.26     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  7.27     Sec. 13.  Minnesota Statutes 2002, section 297F.10, is 
  7.28  amended to read: 
  7.29     297F.10 [DEPOSIT OF PROCEEDS.] 
  7.30     Subdivision 1.  [TAX AND USE TAX ON CIGARETTES.] Revenue 
  7.31  received from cigarette taxes, as well as related penalties, 
  7.32  interest, license fees, and miscellaneous sources of revenue 
  7.33  shall be deposited by the commissioner in the state treasury and 
  7.34  credited as follows: 
  7.35     (a) first to the general obligation special tax bond debt 
  7.36  service account in each fiscal year the amount required to 
  8.1   increase the balance on hand in the account on each December 1 
  8.2   to an amount equal to the full amount of principal and interest 
  8.3   to come due on all outstanding bonds whose debt service is 
  8.4   payable primarily from the proceeds of the tax to and including 
  8.5   the second following July 1; and 
  8.6      (b) after the requirements of paragraph (a) have been met: 
  8.7      (1) the revenue produced by one mill of the tax on 
  8.8   cigarettes weighing not more than three pounds a thousand and 
  8.9   two mills of the tax on cigarettes weighing more than three 
  8.10  pounds a thousand must be credited to the Minnesota future 
  8.11  resources fund; and 
  8.12     (2) the balance of the revenues derived from taxes, 
  8.13  penalties, and interest (under this chapter) and from license 
  8.14  fees and miscellaneous sources of revenue shall be credited to 
  8.15  the general fund, except that the portion of tax revenue 
  8.16  resulting from the increase in the tax on cigarettes weighing 
  8.17  not more than three pounds per thousand from 24 to 74 mills and 
  8.18  the increase in the tax on cigarettes weighing more than three 
  8.19  pounds per thousand from 48 to 148 mills shall be deposited in 
  8.20  the health care access fund. 
  8.21     Subd. 2.  [TAX AND USE TAX ON TOBACCO PRODUCTS.] Revenue 
  8.22  received from taxes on tobacco products, as well as related 
  8.23  penalties, interest, and license fees shall be deposited by the 
  8.24  commissioner in the state treasury and credited to the general 
  8.25  fund, except that the portion of tax revenue resulting from the 
  8.26  increase in the tax on the wholesale sales price of tobacco 
  8.27  products from 35 to 108 percent shall be deposited in the health 
  8.28  care access fund. 
  8.29     [EFFECTIVE DATE.] This section is effective July 1, 2003. 
  8.30     Sec. 14.  [FLOOR STOCKS TAX.] 
  8.31     Subdivision 1.  [CIGARETTES.] (a) A floor stocks tax is 
  8.32  imposed on every person engaged in business in this state as a 
  8.33  distributor, retailer, subjobber, vendor, manufacturer, or 
  8.34  manufacturer's representative of cigarettes, on the stamped 
  8.35  cigarettes and unaffixed stamps in the person's possession or 
  8.36  under the person's control at 12:01 a.m. on July 1, 2003.  The 
  9.1   tax is imposed at the following rates, subject to the discounts 
  9.2   in Minnesota Statutes, section 297F.08, subdivision 7: 
  9.3      (1) on cigarettes weighing not more than three pounds per 
  9.4   thousand, 50 mills on each cigarette; and 
  9.5      (2) on cigarettes weighing more than three pounds per 
  9.6   thousand, 100 mills on each cigarette. 
  9.7      (b) Each distributor, by July 8, 2003, shall file a report 
  9.8   with the commissioner of revenue, in the form the commissioner 
  9.9   prescribes, showing the stamped cigarettes and unaffixed stamps 
  9.10  on hand at 12:01 a.m. on July 1, 2003, and the amount of tax due 
  9.11  on the cigarettes and unaffixed stamps.  The tax imposed by this 
  9.12  section is due and payable by August 1, 2003, and after that 
  9.13  date bears interest as provided in Minnesota Statutes, section 
  9.14  270.75.  Each retailer, subjobber, vendor, manufacturer, or 
  9.15  manufacturer's representative shall file a return with the 
  9.16  commissioner, in the form the commissioner prescribes, showing 
  9.17  the cigarettes on hand at 12:01 a.m. on July 1, 2003, and pay 
  9.18  the tax due on them by August 1, 2003.  Tax not paid by the due 
  9.19  date bears interest as provided in Minnesota Statutes, section 
  9.20  270.75. 
  9.21     Subd. 2.  [TOBACCO PRODUCTS.] A floor stocks tax is imposed 
  9.22  on every person engaged in business in this state as a 
  9.23  distributor of tobacco products, at the rate of 73 percent of 
  9.24  the wholesale sales price of each tobacco product in the 
  9.25  person's possession or under the person's control at 12:01 a.m. 
  9.26  on July 1, 2003, and the amount of tax due on them.  The tax 
  9.27  imposed by this section, less the discount provided in Minnesota 
  9.28  Statutes, section 297F.09, subdivision 2, is due and payable by 
  9.29  August 1, 2003, and thereafter bears interest as provided in 
  9.30  Minnesota Statutes, section 270.75. 
  9.31     Subd. 3.  [AUDIT AND ENFORCEMENT.] The tax imposed by this 
  9.32  section is subject to the audit, assessment, and collection 
  9.33  provisions applicable to the taxes imposed under Minnesota 
  9.34  Statutes, chapter 297F.  The commissioner of revenue shall 
  9.35  deposit the revenue from the tax imposed under this section in 
  9.36  the health care access fund in the state treasury. 
 10.1      [EFFECTIVE DATE.] This section is effective July 1, 2003. 
 10.2      Sec. 15.  [REPEALER; MINNESOTACARE PROVIDER TAXES.] 
 10.3      Minnesota Statutes 2002, sections 13.4967, subdivision 3; 
 10.4   144.1484, subdivision 2; 295.50; 295.51; 295.52; 295.53; 295.54; 
 10.5   295.55; 295.56; 295.57; 295.58; 295.581; 295.582; and 295.59 are 
 10.6   repealed effective July 1, 2003, for tax periods beginning on or 
 10.7   after that date.