SF 1926

as introduced - 84th Legislature (2005 - 2006) 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 2004, 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 2004, 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 2004, 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 2004, 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 2004, 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 2004, 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 2004, 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 2004, 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 2004, 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 2004, 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 and health
under section 297G.11 must be distributed as provided in
subdivisions 2 to 5.
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 18.5 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 3.5 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.
new text end

Sec. 10.

Minnesota Statutes 2004, 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, deleted text begin $5.03 deleted text end new text begin $11.36 new text end deleted text begin $1.33 deleted text end new text begin $3.03
new text end liqueurs, cordials, per gallon per liter
and specialties regardless
of alcohol content
(excluding ethyl alcohol)
(b) Wine containing deleted text begin $ .30 deleted text end new text begin $1.35 new text end deleted text begin $ .08 deleted text end new text begin $ .36
new text end 14 percent or less per gallon per liter
alcohol by volume
(except cider as defined
in section 297G.01,
subdivision 3a)
(c) Wine containing deleted text begin $ .95 deleted text end new text begin $1.98 new text end deleted text begin $ .25 deleted text end new text begin $ .53
new text end more than 14 percent per gallon per liter
but not more than 21
percent alcohol by volume
(d) Wine containing more deleted text begin $1.82 deleted text end new text begin $2.85 new text end deleted text begin $ .48 deleted text end new text begin $ .76
new text end than 21 percent but not per gallon per liter
more than 24 percent
alcohol by volume
(e) Wine containing more deleted text begin $3.52 deleted text end new text begin $4.54 new text end deleted text begin $ .93 deleted text end new text begin $1.21
new text end than 24 percent alcohol per gallon per liter
by volume
(f) Natural and deleted text begin $1.82 deleted text end new text begin $2.85 new text end deleted text begin $ .48 deleted text end new text begin $ .76
new text end artificial sparkling wines per gallon per liter
containing alcohol
(g) Cider as defined in deleted text begin $ .15 deleted text end new text begin $1.20 new text end deleted text begin $ .04 deleted text end new text begin $ .32
new text end section 297G.01, per gallon per liter
subdivision 3a
(h) Low alcohol dairy $ .08 per gallon $ .02 per liter
cocktails

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 2004, 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 2004, 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 2004, 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 2004, 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 sections 10 to 13 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 2004, 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 2007" 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 2004, sections 254B.02, subdivisions 2,
3; and 254B.03, subdivision 4, are repealed.
new text end