SF 779

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; increasing the tax on alcoholic beverages; dedicating the
proceeds of the increase to provide grants to counties to provide probation
supervision and treatment services for certain offenders; appropriating money;
amending Minnesota Statutes 2006, sections 254B.01, subdivisions 1, 3;
254B.02, subdivisions 1, 4; 254B.03, subdivisions 1, 2, 5; 254B.04, subdivision
1; 297G.03, subdivisions 1, 2; 297G.04, subdivisions 1, 2; 297G.10; 297G.12,
subdivision 7; proposing coding for new law in Minnesota Statutes, chapters
254B; 401; repealing Minnesota Statutes 2006, sections 254B.02, subdivisions
2, 3; 254B.03, subdivision 4.

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

Section 1.

Minnesota Statutes 2006, section 254B.01, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

The definitions in this section apply to deleted text begin Laws 1986,
chapter 394, sections 8 to 20 deleted text end new text begin sections 254B.01 to 254B.11 new text end .

Sec. 2.

Minnesota Statutes 2006, section 254B.01, subdivision 3, is amended to read:

Subd. 3.

Chemical dependency services.

"Chemical dependency services" means
a planned program of care for the treatment of chemical dependency or chemical abuse
to minimize or prevent further chemical abuse by the person. deleted text begin Diagnostic, evaluation,
prevention, referral, detoxification, and aftercare services that are not part of a program of
care licensable as a residential or nonresidential chemical dependency treatment program
are not chemical dependency services for purposes of this section. deleted text end For pregnant and
postpartum women, chemical dependency services include halfway house services,
aftercare services, psychological services, and case management.

Sec. 3.

Minnesota Statutes 2006, section 254B.02, subdivision 1, is amended to read:

Subdivision 1.

Chemical dependency treatment allocation.

The chemical
dependency funds appropriated for allocation shall be placed in a special revenue account.
The commissioner shall annually transfer funds from the chemical dependency fund to pay
for operation of the drug and alcohol abuse normative evaluation system deleted text begin and to pay for all
costs incurred by adding two positions for licensing of chemical dependency treatment
and rehabilitation programs located in hospitals for which funds are not otherwise
appropriated. For each year of the biennium ending June 30, 1999, the commissioner shall
allocate funds to the American Indian chemical dependency tribal account for treatment
of American Indians by eligible vendors under section 254B.05, equal to the amount
allocated in fiscal year 1997 deleted text end . The commissioner shall annually divide the money available
in the chemical dependency fund that is not deleted text begin held in reserve by counties from a previous
allocation, or deleted text end allocated to the American Indian chemical dependency tribal account. Six
percent of the remaining money must be reserved for the nonreservation American Indian
chemical dependency allocation for treatment of American Indians by eligible vendors
under section 254B.05, subdivision 1. The remainder of the money must be allocated
among the counties according to the following formula, using state demographer data and
other data sources determined by the commissioner:

(a) For purposes of this formula, American Indians and children under age 14 are
subtracted from the population of each county to determine the restricted population.

(b) The amount of chemical dependency fund expenditures for entitled persons for
services not covered by prepaid plans governed by section 256B.69 in the previous year is
divided by the amount of chemical dependency fund expenditures for entitled persons for
all services to determine the proportion of exempt service expenditures for each county.

(c) The prepaid plan months of eligibility is multiplied by the proportion of exempt
service expenditures to determine the adjusted prepaid plan months of eligibility for
each county.

(d) The adjusted prepaid plan months of eligibility is added to the number of
restricted population fee for service months of eligibility for the Minnesota family
investment program, general assistance, and medical assistance and divided by the county
restricted population to determine county per capita months of covered service eligibility.

(e) The number of adjusted prepaid plan months of eligibility for the state is added
to the number of fee for service months of eligibility for the Minnesota family investment
program, general assistance, and medical assistance for the state restricted population and
divided by the state restricted population to determine state per capita months of covered
service eligibility.

(f) The county per capita months of covered service eligibility is divided by the
state per capita months of covered service eligibility to determine the county welfare
caseload factor.

(g) The median married couple income for the most recent three-year period
available for the state is divided by the median married couple income for the same period
for each county to determine the income factor for each county.

(h) The county restricted population is multiplied by the sum of the county welfare
caseload factor and the county income factor to determine the adjusted population.

(i) $15,000 shall be allocated to each county.

(j) The remaining funds shall be allocated proportional to the county adjusted
population.

Sec. 4.

Minnesota Statutes 2006, section 254B.02, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Allocation spending limits deleted text end new text begin Reallocation of unspent funds new text end .

Money
allocated according to subdivision 1 and section 254B.09, subdivision 4, is available for
payments for up to two years. deleted text begin The commissioner shall deduct payments from the most
recent year allocation in which money is available. deleted text end Allocations under this section that are
not used within two years deleted text begin must deleted text end new text begin may new text end be reallocated to deleted text begin the reserve account for payments
under subdivision 3. Allocations under section 254B.09, subdivision 4, that are not used
within two years must be reallocated for payments under section 254B.09, subdivision 5 deleted text end new text begin
other counties under subdivision 1 new text end .

Sec. 5.

Minnesota Statutes 2006, section 254B.03, subdivision 1, is amended to read:

Subdivision 1.

Local agency duties.

(a) Every local agency shall provide
chemical dependency services to persons residing within its jurisdiction who meet new text begin the new text end
criteria established by the commissioner for deleted text begin placement in a deleted text end chemical dependency
deleted text begin residential or nonresidential treatment service deleted text end new text begin services new text end . Chemical dependency money
must be administered by the local agencies according to law and rules adopted by the
commissioner under sections 14.001 to 14.69.

(b) In order to contain costs, the county board shall, with the approval of the
commissioner of human services, select eligible vendors of chemical dependency services
who can provide economical and appropriate treatment. Unless the local agency is a social
services department directly administered by a county or human services board, the local
agency shall not be an eligible vendor under section 254B.05. The commissioner may
approve proposals from county boards to provide services in an economical manner or to
control utilization, with safeguards to ensure that necessary services are provided. If a
county implements a demonstration or experimental medical services funding plan, the
commissioner shall transfer the money as appropriate. If a county selects a vendor located
in another state, the county shall ensure that the vendor is in compliance with the rules
governing licensure of programs located in the state.

(c) The calendar year 2002 rate for vendors may not increase more than three
percent above the rate approved in effect on January 1, 2001. The calendar year 2003
rate for vendors may not increase more than three percent above the rate in effect on
January 1, 2002. The calendar years 2004 and 2005 rates may not exceed the rate in
effect on January 1, 2003.

(d) A culturally specific vendor that provides assessments under a variance under
Minnesota Rules, part 9530.6610, shall be allowed to provide assessment services to
persons not covered by the variance.

Sec. 6.

Minnesota Statutes 2006, section 254B.03, subdivision 2, is amended to read:

Subd. 2.

Chemical dependency fund payment.

(a) Payment from the chemical
dependency fund is limited to payments for services deleted text begin other than detoxification deleted text end that, if
located outside of federally recognized tribal lands, would be required to be licensed by
the commissioner as a chemical dependency treatment or rehabilitation program under
sections 245A.01 to 245A.16, and services deleted text begin other than detoxification deleted text end provided in another
state that would be required to be licensed as a chemical dependency program if the
program were in the state. Out of state vendors must also provide the commissioner with
assurances that the program complies substantially with state licensing requirements and
possesses all licenses and certifications required by the host state to provide chemical
dependency treatment. Except for chemical dependency transitional rehabilitation
programs, vendors receiving payments from the chemical dependency fund must
not require co-payment from a recipient of benefits for services provided under this
subdivision. Payment from the chemical dependency fund shall be made for necessary
room and board costs provided by vendors certified according to section 254B.05, or in a
community hospital licensed by the commissioner of health according to sections 144.50
to 144.56 to a client who is:

(1) determined to meet the criteria for placement in a residential chemical
dependency treatment program according to rules adopted under section 254A.03,
subdivision 3; and

(2) concurrently receiving a chemical dependency treatment service in a program
licensed by the commissioner and reimbursed by the chemical dependency fund.

(b) A county may, from its own resources, provide chemical dependency services
for which state payments are not made. A county may elect to use the same invoice
procedures and obtain the same state payment services as are used for chemical
dependency services for which state payments are made under this section if county
payments are made to the state in advance of state payments to vendors. When a county
uses the state system for payment, the commissioner shall make monthly billings to the
county using the most recent available information to determine the anticipated services
for which payments will be made in the coming month. Adjustment of any overestimate or
underestimate based on actual expenditures shall be made by the state agency by adjusting
the estimate for any succeeding month.

(c) The commissioner shall coordinate chemical dependency services and determine
whether there is a need for any proposed expansion of chemical dependency treatment
services. The commissioner shall deny vendor certification to any provider that has not
received prior approval from the commissioner for the creation of new programs or the
expansion of existing program capacity. The commissioner shall consider the provider's
capacity to obtain clients from outside the state based on plans, agreements, and previous
utilization history, when determining the need for new treatment services.

Sec. 7.

Minnesota Statutes 2006, section 254B.03, subdivision 5, is amended to read:

Subd. 5.

Rules; appeal.

The commissioner shall adopt rules as necessary to
implement deleted text begin Laws 1986, chapter 394, sections 8 to 20. The commissioner shall ensure that
the rules are effective on July 1, 1987 deleted text end new text begin sections 254B.02 to 254B.11 new text end . The commissioner
shall establish an appeals process for use by recipients when services certified by the
county are disputed. The commissioner shall adopt rules and standards for the appeal
process to assure adequate redress for persons referred to inappropriate services.

Sec. 8.

Minnesota Statutes 2006, section 254B.04, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

(a) Persons eligible for new text begin Tier I new text end benefits under Code of
Federal Regulations, title 25, part 20, persons eligible for medical assistance benefits
under sections 256B.055, 256B.056, and 256B.057, subdivisions 1, 2, 5, and 6, or who
meet the income standards of section 256B.056, subdivision 4, and persons eligible for
general assistance medical care under section 256D.03, subdivision 3, are entitled to
chemical dependency fund services. State money appropriated for this paragraph must be
placed in a separate account established for this purpose.

Persons with dependent children who are determined to be in need of chemical
dependency treatment pursuant to an assessment under section 626.556, subdivision 10, or
a case plan under section 260C.201, subdivision 6, or 260C.212, shall be assisted by the
local agency to access needed treatment services. Treatment services must be appropriate
for the individual or family, which may include long-term care treatment or treatment in a
facility that allows the dependent children to stay in the treatment facility. The county
shall pay for out-of-home placement costs, if applicable.

(b) A person not entitled to services under paragraph (a), but with family income
that is less than 215 percent of the federal poverty guidelines for the applicable family
size, shall be eligible to receive new text begin Tier II new text end chemical dependency fund services within the limit
of funds appropriated for this group for the fiscal year. If notified by the state agency
of limited funds, a county must give preferential treatment to persons with dependent
children who are in need of chemical dependency treatment pursuant to an assessment
under section 626.556, subdivision 10, or a case plan under section 260C.201, subdivision
6, or 260C.212. A county may spend money from its own sources to serve persons under
this paragraph. State money appropriated for this paragraph must be placed in a separate
account established for this purpose.

(c) Persons whose income is between 215 percent and 412 percent of the federal
poverty guidelines for the applicable family size shall be eligible for new text begin Tier III new text end chemical
dependency services on a sliding fee basis, within the limit of funds appropriated for this
group for the fiscal year. Persons eligible under this paragraph must contribute to the
cost of services according to the sliding fee scale established under subdivision 3. A
county may spend money from its own sources to provide services to persons under this
paragraph. State money appropriated for this paragraph must be placed in a separate
account established for this purpose.

Sec. 9.

new text begin [254B.11] TREATMENT SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Distribution of appropriated funds. new text end

new text begin Funds appropriated to the
commissioners of human services, health, and public safety under section 297G.11 must
be distributed as provided in subdivisions 2 to 6.
new text end

new text begin Subd. 2. new text end

new text begin Treatment services. new text end

new text begin Sixty-two percent must be deposited in the
chemical dependency fund under section 254B.02 for allocation and distribution by
the commissioner of human services to counties under the formula provided in section
254B.02, subdivision 1. Notwithstanding any other law, funds distributed under this
section must be used by the counties to fund Tier I and Tier II benefits under section
254B.04, subdivision 1, paragraphs (a) and (b), for treatment of alcohol and all controlled
substances dependencies, including detoxification and long-term treatments, including
inpatient treatment for longer than 28 days, when necessary for successful treatment. No
county maintenance effort is required to receive funding under this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Treatment support services. new text end

new text begin 18 percent is appropriated to the
commissioner of human services to make grants to counties for treatment support
including local relapse programs and supportive housing and transportation initiatives for
alcohol or controlled substances offenders.
new text end

new text begin Subd. 4. new text end

new text begin Detoxification. new text end

new text begin Sixteen percent is appropriated to the commissioner
of human services to make grants to counties for detoxification services, including
transportation. To receive a grant under this section, a county must contribute funding
of at least 50 percent of the grant for the same purposes.
new text end

new text begin Subd. 5. new text end

new text begin Health assessments. new text end

new text begin (a) .5 percent is appropriated to the commissioner
of health for grants to local community health boards to provide health assessments and
supportive services to children and vulnerable adults who reside or are otherwise subjected
to health risks at the site where methamphetamine is manufactured or used.
new text end

new text begin (b) 2.0 percent is appropriated to the commissioner of health for the Youth Risk
Behavior Account.
new text end

new text begin Subd. 6. new text end

new text begin DWI education. new text end

new text begin 1.5 percent is appropriated to the commissioner of public
safety for DWI education.
new text end

Sec. 10.

Minnesota Statutes 2006, section 297G.03, subdivision 1, is amended to read:

Subdivision 1.

General rate; distilled spirits and wine.

The following excise tax is
imposed on all distilled spirits and wine manufactured, imported, sold, or possessed in
this state:

			Standard			Metric
(a) Distilled spirits, liqueurs, cordials, and specialties regardless of alcohol content (excluding ethyl alcohol)		$	deleted text begin 5.03 deleted text end new text begin 11.36 new text end per gallon		$	deleted text begin 1.33 deleted text end new text begin 3.03 new text end per liter
(b) Wine containing 14 percent or less alcohol by volume (except cider as defined in section 297G.01, subdivision 3a)		$	deleted text begin .30 deleted text end new text begin 1.35 new text end per gallon		$	deleted text begin .08 deleted text end new text begin .36 new text end per liter
(c) Wine containing more than 14 percent but not more than 21 percent alcohol by volume		$	deleted text begin .95 deleted text end new text begin 1.98 new text end per gallon		$	deleted text begin .25 deleted text end new text begin .53 new text end per liter
(d) Wine containing more than 21 percent but not more than 24 percent alcohol by volume		$	deleted text begin 1.82 deleted text end new text begin 2.85 new text end per gallon		$	deleted text begin .48 deleted text end new text begin .76 new text end per liter
(e) Wine containing more than 24 percent alcohol by volume		$	deleted text begin 3.52 deleted text end new text begin 4.54 new text end per gallon		$	deleted text begin .93 deleted text end new text begin 1.21 new text end per liter
(f) Natural and artificial sparkling wines containing alcohol		$	deleted text begin 1.82 deleted text end new text begin 2.85 new text end per gallon		$	deleted text begin .48 deleted text end new text begin .76 new text end per liter
(g) Cider as defined in section 297G.01, subdivision 3a		$	deleted text begin .15 deleted text end new text begin 1.20 new text end per gallon		$	deleted text begin .04 deleted text end new text begin .32 new text end per liter
(h) Low alcohol dairy cocktails		$	.08 per gallon		$	.02 per liter

In computing the tax on a package of distilled spirits or wine, a proportional tax at a
like rate on all fractional parts of a gallon or liter must be paid, except that the tax on a
fractional part of a gallon less than 1/16 of a gallon is the same as for 1/16 of a gallon.

Sec. 11.

Minnesota Statutes 2006, section 297G.03, subdivision 2, is amended to read:

Subd. 2.

Tax on miniatures; distilled spirits.

The tax on miniatures is deleted text begin 14 deleted text end new text begin 19 new text end
cents per bottle.

Sec. 12.

Minnesota Statutes 2006, section 297G.04, subdivision 1, is amended to read:

Subdivision 1.

Tax imposed.

The following excise tax is imposed on all fermented
malt beverages that are imported, directly or indirectly sold, or possessed in this state:

(1) on fermented malt beverages containing not more than 3.2 percent alcohol by
weight, deleted text begin $2.40 deleted text end new text begin $18.86 new text end per 31-gallon barrel; and

(2) on fermented malt beverages containing more than 3.2 percent alcohol by
weight, deleted text begin $4.60 deleted text end new text begin $21.06 new text end per 31-gallon barrel.

For fractions of a 31-gallon barrel, the tax rate is calculated proportionally.

Sec. 13.

Minnesota Statutes 2006, section 297G.04, subdivision 2, is amended to read:

Subd. 2.

Tax credit.

A qualified brewer producing fermented malt beverages is
entitled to a tax credit of deleted text begin $4.60 deleted text end new text begin $21.06 new text end per barrel on 25,000 barrels sold in any fiscal year
beginning July 1, regardless of the alcohol content of the product. Qualified brewers may
take the credit on the 18th day of each month, but the total credit allowed may not exceed
in any fiscal year the lesser of:

(1) the liability for tax; or

(2) $115,000.

For purposes of this subdivision, a "qualified brewer" means a brewer, whether
or not located in this state, manufacturing less than 100,000 barrels of fermented malt
beverages in the calendar year immediately preceding the calendar year for which the
credit under this subdivision is claimed. In determining the number of barrels, all brands
or labels of a brewer must be combined. All facilities for the manufacture of fermented
malt beverages owned or controlled by the same person, corporation, or other entity
must be treated as a single brewer.

Sec. 14.

Minnesota Statutes 2006, section 297G.10, is amended to read:

297G.10 DEPOSIT OF PROCEEDS.

new text begin Subdivision 1. new text end

new text begin General fund. new text end

All tax revenues and other receipts payable to
the state under this chapter must be paid into the state treasury and credited to the
general fund. new text begin The increase in taxes under 2976.03, subdivisions 1 and 2; and 297G.04,
subdivisions 1 and 2, must be deposited in the county alcohol and chemical dependency
costs account in the general fund for the purposes specified in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Alcohol and chemical dependency account; appropriation. new text end

new text begin A county
alcohol and chemical dependency costs account is created in the general fund. The
account consists of liquor tax proceeds deposited in it under subdivision 1. Funds in
the account are annually appropriated as follows: 30 percent to the commissioner of
corrections for the purposes of section 401.25, and 70 percent to the commissioners of
human services and health as provided in section 254B.11.
new text end

Sec. 15.

Minnesota Statutes 2006, section 297G.12, subdivision 7, is amended to read:

Subd. 7.

Source of refund.

There is appropriated annually from the general fund
to the commissioner the sums necessary to make the refunds provided by this section. new text begin
Refunds are appropriated from accounts in the general fund in the same proportions as
they are deposited to it.
new text end

Sec. 16.

new text begin [401.25] COUNTY PROBATION SERVICES GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Use of funds. new text end

new text begin Funds appropriated to the commissioner of corrections
under section 297G.10, subdivision 2, must be used to make grants to counties to increase
probation supervision of all offenders whose offenses involved alcohol or controlled
substance abuse or dependency, including:
new text end

new text begin (1) development of case plans based on assessments and risk/needs instruments;
new text end

new text begin (2) development of continuums of probation supervision levels, including intensive
supervision programs;
new text end

new text begin (3) expansion of electronic home alcohol monitoring for both presentencing and
postsentencing;
new text end

new text begin (4) support of local cognitive restructuring programs; and
new text end

new text begin (5) provision of treatment support services as part of the case plan for probation
supervision.
new text end

new text begin Subd. 2. new text end

new text begin Distribution of funds. new text end

new text begin To determine the amount of the grant to be paid to
each qualifying county, the commissioner of corrections shall apply the formula contained
in section 401.10, subdivision 1, except that each county's "base funding amount" under
section 401.10, subdivision 1, clause (8), and the "aggregate base funding amount" under
section 401.10, subdivision 1, clause (9), must be determined using fiscal year 2006.
For purposes of section 401.10, subdivision 1, clause (8), "fiscal year 2008" must be
used instead of "fiscal year 1997."
new text end

new text begin Subd. 3. new text end

new text begin Requirements for grant. new text end

new text begin To be eligible to receive a grant under this
section, the county must develop and submit to the commissioner a plan for use of the
funds based on the purposes for which funds may be used under subdivision 1 and their
local needs. The plan must incorporate best correctional practices. The plan must
include the planned expenditures. No county may receive a grant unless its plan has been
determined to be in compliance with this section and approved by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Review and approval by commissioner. new text end

new text begin The commissioner shall annually
review the plans submitted by the counties before allocating the grants. The review must
determine whether the plan and the planned expenditures comply with the requirements
of this section. The commissioner may require changes or adjustments to the plan and
to the planned expenditures implementing the plan before approving an annual grant
to the county.
new text end

new text begin Subd. 5. new text end

new text begin Payment of grants. new text end

new text begin The commissioner of corrections shall make payments
of grants in installments, and may make payment adjustments, as provided in sections
401.14, subdivisions 2 and 3, and 401.15.
new text end

new text begin In counties where the probation services under the plan will be provided by
both county and Department of Corrections employees, a collaborative plan must be
developed. The commissioner of corrections shall specify the manner in which the grant
money allocated to the county shall be distributed between the county and Department
of Corrections providers.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 254B.02, subdivisions 2 and 3; and 254B.03,
subdivision 4, new text end new text begin are repealed.
new text end