SF 2302

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to health care; expanding coverage of the 
  1.3             MinnesotaCare program; eliminating MinnesotaCare 
  1.4             taxes; increasing individual income tax rates; 
  1.5             increasing the taxes on cigarettes and tobacco 
  1.6             products; amending Minnesota Statutes 2000, sections 
  1.7             62J.041, subdivision 1; 62Q.095, subdivision 6; 
  1.8             214.16, subdivisions 2, 3; 256L.03, subdivisions 3, 5; 
  1.9             256L.04, subdivision 7; 256L.07, subdivision 1; 
  1.10            270B.01, subdivision 8; 270B.14, subdivision 1; 
  1.11            290.06, subdivision 2c; 290.62; 297F.05, subdivisions 
  1.12            1, 3, 4; 297F.08, subdivision 7; 297F.10; repealing 
  1.13            Minnesota Statutes 2000, sections 13.4967, subdivision 
  1.14            3; 62T.10; 144.1484, subdivision 2; 295.50; 295.51; 
  1.15            295.52; 295.53; 295.54; 295.55; 295.56; 295.57; 
  1.16            295.58; 295.582; 295.59. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 2000, section 62J.041, 
  1.19  subdivision 1, is amended to read: 
  1.20     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  1.21  section, the following definitions apply. 
  1.22     (b) "Health plan company" has the definition provided in 
  1.23  section 62Q.01. 
  1.24     (c) "Total expenditures" means incurred claims or 
  1.25  expenditures on health care services, administrative expenses, 
  1.26  charitable contributions, and all other payments made by health 
  1.27  plan companies out of premium revenues. 
  1.28     (d) "Net expenditures" means total expenditures minus 
  1.29  exempted taxes and assessments and payments or allocations made 
  1.30  to establish or maintain reserves.  
  1.31     (e) "Exempted taxes and assessments" means direct payments 
  2.1   for taxes to government agencies, contributions to the Minnesota 
  2.2   comprehensive health association, the medical assistance 
  2.3   provider's surcharge under section 256.9657, the MinnesotaCare 
  2.4   provider tax under Minnesota Statutes 2000, section 295.52, 
  2.5   assessments by the health coverage reinsurance association, 
  2.6   assessments by the Minnesota life and health insurance guaranty 
  2.7   association, assessments by the Minnesota risk adjustment 
  2.8   association, and any new assessments imposed by federal or state 
  2.9   law. 
  2.10     (f) "Consumer cost-sharing or subscriber liability" means 
  2.11  enrollee coinsurance, copayment, deductible payments, and 
  2.12  amounts in excess of benefit plan maximums. 
  2.13     Sec. 2.  Minnesota Statutes 2000, section 62Q.095, 
  2.14  subdivision 6, is amended to read: 
  2.15     Subd. 6.  [EXEMPTION.] A health plan company, to the extent 
  2.16  that it operates as a staff model health plan company as defined 
  2.17  in section 295.50, subdivision 12b, by employing allied 
  2.18  independent health care providers to deliver health care 
  2.19  services to enrollees, is exempt from this section.  For 
  2.20  purposes of this subdivision, "staff model health plan company" 
  2.21  means a health plan company as defined in section 62Q.01, 
  2.22  subdivision 4, that employs one or more types of health care 
  2.23  provider to deliver health care services to the health plan 
  2.24  company's enrollees. 
  2.25     Sec. 3.  Minnesota Statutes 2000, section 214.16, 
  2.26  subdivision 2, is amended to read: 
  2.27     Subd. 2.  [BOARD COOPERATION REQUIRED.] The board shall 
  2.28  assist the commissioner of health in data collection activities 
  2.29  required under Laws 1992, chapter 549, article 7, and shall 
  2.30  assist the commissioner of revenue in activities related to 
  2.31  collection of the health care provider tax required under Laws 
  2.32  1992, chapter 549, article 9.  Upon the request of the 
  2.33  commissioner or the commissioner of revenue, the board shall 
  2.34  make available names and addresses of current licensees and 
  2.35  provide other information or assistance as needed. 
  2.36     Sec. 4.  Minnesota Statutes 2000, section 214.16, 
  3.1   subdivision 3, is amended to read: 
  3.2      Subd. 3.  [GROUNDS FOR DISCIPLINARY ACTION.] The board 
  3.3   shall take disciplinary action, which may include license 
  3.4   revocation, against a regulated person for: 
  3.5      (1) intentional failure to provide the commissioner of 
  3.6   health with the data required under chapter 62J; and 
  3.7      (2) intentional failure to provide the commissioner of 
  3.8   revenue with data on gross revenue and other information 
  3.9   required for the commissioner to implement sections 295.50 to 
  3.10  295.58; 
  3.11     (3) intentional failure to pay the health care provider tax 
  3.12  required under section 295.52; and 
  3.13     (4) entering into a contract or arrangement that is 
  3.14  prohibited under sections 62J.70 to 62J.73. 
  3.15     Sec. 5.  Minnesota Statutes 2000, section 256L.03, 
  3.16  subdivision 3, is amended to read: 
  3.17     Subd. 3.  [INPATIENT HOSPITAL SERVICES.] (a) Covered health 
  3.18  services shall include inpatient hospital services, including 
  3.19  inpatient hospital mental health services and inpatient hospital 
  3.20  and residential chemical dependency treatment, subject to those 
  3.21  limitations necessary to coordinate the provision of these 
  3.22  services with eligibility under the medical assistance 
  3.23  spenddown.  Prior to July 1, 1997, the inpatient hospital 
  3.24  benefit for adult enrollees is subject to an annual benefit 
  3.25  limit of $10,000.  The inpatient hospital benefit for adult 
  3.26  enrollees who qualify under section 256L.04, subdivision 7, or 
  3.27  who qualify under section 256L.04, subdivisions 1 and 2, with 
  3.28  family gross income that exceeds 175 percent of the federal 
  3.29  poverty guidelines and who are not pregnant, is subject to an 
  3.30  annual limit of $10,000.  
  3.31     (b) Admissions for inpatient hospital services paid for 
  3.32  under section 256L.11, subdivision 3, must be certified as 
  3.33  medically necessary in accordance with Minnesota Rules, parts 
  3.34  9505.0500 to 9505.0540, except as provided in clauses (1) and 
  3.35  (2): 
  3.36     (1) all admissions must be certified, except those 
  4.1   authorized under rules established under section 254A.03, 
  4.2   subdivision 3, or approved under Medicare; and 
  4.3      (2) payment under section 256L.11, subdivision 3, shall be 
  4.4   reduced by five percent for admissions for which certification 
  4.5   is requested more than 30 days after the day of admission.  The 
  4.6   hospital may not seek payment from the enrollee for the amount 
  4.7   of the payment reduction under this clause. 
  4.8      Sec. 6.  Minnesota Statutes 2000, section 256L.03, 
  4.9   subdivision 5, is amended to read: 
  4.10     Subd. 5.  [COPAYMENTS AND COINSURANCE.] (a) Except as 
  4.11  provided in paragraphs (b) and (c), the MinnesotaCare benefit 
  4.12  plan shall include the following copayments and coinsurance 
  4.13  requirements for all enrollees:  
  4.14     (1) ten percent of the paid charges for inpatient hospital 
  4.15  services for adult enrollees, subject to an annual inpatient 
  4.16  out-of-pocket maximum of $1,000 per individual and $3,000 per 
  4.17  family; 
  4.18     (2) $3 per prescription for adult enrollees; 
  4.19     (3) $25 for eyeglasses for adult enrollees; and 
  4.20     (4) 50 percent of the fee-for-service rate for adult dental 
  4.21  care services other than preventive care services for persons 
  4.22  eligible under section 256L.04, subdivisions 1 to 7, with income 
  4.23  equal to or less than 175 percent of the federal poverty 
  4.24  guidelines. 
  4.25     (b) Paragraph (a), clause (1), does not apply to parents 
  4.26  and relative caretakers of children under the age of 21 in 
  4.27  households with family income equal to or less than 175 percent 
  4.28  of the federal poverty guidelines.  Paragraph (a), clause (1), 
  4.29  does not apply to parents and relative caretakers of children 
  4.30  under the age of 21 in households with family income greater 
  4.31  than 175 percent of the federal poverty guidelines for inpatient 
  4.32  hospital admissions occurring on or after January 1, 2001.  
  4.33     (c) Paragraph (a), clauses (1) to (4), do not apply to 
  4.34  pregnant women and children under the age of 21.  
  4.35     (d) Adult enrollees with family gross income that exceeds 
  4.36  175 percent of the federal poverty guidelines and who are not 
  5.1   pregnant shall be financially responsible for the coinsurance 
  5.2   amount, if applicable, and amounts which exceed the $10,000 
  5.3   inpatient hospital benefit limit. 
  5.4      (e) When a MinnesotaCare enrollee becomes a member of a 
  5.5   prepaid health plan, or changes from one prepaid health plan to 
  5.6   another during a calendar year, any charges submitted towards 
  5.7   the $10,000 annual inpatient benefit limit, and any 
  5.8   out-of-pocket expenses incurred by the enrollee for inpatient 
  5.9   services, that were submitted or incurred prior to enrollment, 
  5.10  or prior to the change in health plans, shall be disregarded. 
  5.11     Sec. 7.  Minnesota Statutes 2000, section 256L.04, 
  5.12  subdivision 7, is amended to read: 
  5.13     Subd. 7.  [SINGLE ADULTS AND HOUSEHOLDS WITH NO CHILDREN.] 
  5.14  The definition of eligible persons includes all individuals and 
  5.15  households with no children who have gross family incomes that 
  5.16  are equal to or less than 175 275 percent of the federal poverty 
  5.17  guidelines. 
  5.18     Sec. 8.  Minnesota Statutes 2000, section 256L.07, 
  5.19  subdivision 1, is amended to read: 
  5.20     Subdivision 1.  [GENERAL REQUIREMENTS.] (a) Children 
  5.21  enrolled in the original children's health plan as of September 
  5.22  30, 1992, children who enrolled in the MinnesotaCare program 
  5.23  after September 30, 1992, pursuant to Laws 1992, chapter 549, 
  5.24  article 4, section 17, and children who have family gross 
  5.25  incomes that are equal to or less than 150 percent of the 
  5.26  federal poverty guidelines are eligible without meeting the 
  5.27  requirements of subdivision 2, as long as they maintain 
  5.28  continuous coverage in the MinnesotaCare program or medical 
  5.29  assistance.  Children who apply for MinnesotaCare on or after 
  5.30  the implementation date of the employer-subsidized health 
  5.31  coverage program as described in Laws 1998, chapter 407, article 
  5.32  5, section 45, who have family gross incomes that are equal to 
  5.33  or less than 150 percent of the federal poverty guidelines, must 
  5.34  meet the requirements of subdivision 2 to be eligible for 
  5.35  MinnesotaCare. 
  5.36     (b) Families enrolled in MinnesotaCare under section 
  6.1   256L.04, subdivision 1, and individuals enrolled in 
  6.2   MinnesotaCare under section 256L.04, subdivision 7, whose income 
  6.3   increases above 275 percent of the federal poverty guidelines, 
  6.4   are no longer eligible for the program and shall be disenrolled 
  6.5   by the commissioner.  Individuals enrolled in MinnesotaCare 
  6.6   under section 256L.04, subdivision 7, whose income increases 
  6.7   above 175 percent of the federal poverty guidelines are no 
  6.8   longer eligible for the program and shall be disenrolled by the 
  6.9   commissioner.  For persons disenrolled under this subdivision, 
  6.10  MinnesotaCare coverage terminates the last day of the calendar 
  6.11  month following the month in which the commissioner determines 
  6.12  that the income of a family or individual exceeds program income 
  6.13  limits.  
  6.14     (c) Notwithstanding paragraph (b), individuals and families 
  6.15  may remain enrolled in MinnesotaCare if ten percent of their 
  6.16  annual income is less than the annual premium for a policy with 
  6.17  a $500 deductible available through the Minnesota comprehensive 
  6.18  health association.  Individuals and families who are no longer 
  6.19  eligible for MinnesotaCare under this subdivision shall be given 
  6.20  an 18-month notice period from the date that ineligibility is 
  6.21  determined before disenrollment.  
  6.22     Sec. 9.  Minnesota Statutes 2000, section 270B.01, 
  6.23  subdivision 8, is amended to read: 
  6.24     Subd. 8.  [MINNESOTA TAX LAWS.] For purposes of this 
  6.25  chapter only, unless expressly stated otherwise, "Minnesota tax 
  6.26  laws" means the taxes, refunds, and fees administered by or paid 
  6.27  to the commissioner under chapters 115B (except taxes imposed 
  6.28  under sections 115B.21 to 115B.24), 289A (except taxes imposed 
  6.29  under sections 298.01, 298.015, and 298.24), 290, 290A, 291, 
  6.30  297A, and 297H and sections 295.50 to 295.59, or any similar 
  6.31  Indian tribal tax administered by the commissioner pursuant to 
  6.32  any tax agreement between the state and the Indian tribal 
  6.33  government, and includes any laws for the assessment, 
  6.34  collection, and enforcement of those taxes, refunds, and fees. 
  6.35     Sec. 10.  Minnesota Statutes 2000, section 270B.14, 
  6.36  subdivision 1, is amended to read: 
  7.1      Subdivision 1.  [DISCLOSURE TO COMMISSIONER OF HUMAN 
  7.2   SERVICES.] (a) On the request of the commissioner of human 
  7.3   services, the commissioner shall disclose return information 
  7.4   regarding taxes imposed by chapter 290, and claims for refunds 
  7.5   under chapter 290A, to the extent provided in paragraph (b) and 
  7.6   for the purposes set forth in paragraph (c). 
  7.7      (b) Data that may be disclosed are limited to data relating 
  7.8   to the identity, whereabouts, employment, income, and property 
  7.9   of a person owing or alleged to be owing an obligation of child 
  7.10  support. 
  7.11     (c) The commissioner of human services may request data 
  7.12  only for the purposes of carrying out the child support 
  7.13  enforcement program and to assist in the location of parents who 
  7.14  have, or appear to have, deserted their children.  Data received 
  7.15  may be used only as set forth in section 256.978. 
  7.16     (d) The commissioner shall provide the records and 
  7.17  information necessary to administer the supplemental housing 
  7.18  allowance to the commissioner of human services.  
  7.19     (e) At the request of the commissioner of human services, 
  7.20  the commissioner of revenue shall electronically match the 
  7.21  social security numbers and names of participants in the 
  7.22  telephone assistance plan operated under sections 237.69 to 
  7.23  237.711, with those of property tax refund filers, and determine 
  7.24  whether each participant's household income is within the 
  7.25  eligibility standards for the telephone assistance plan. 
  7.26     (f) The commissioner may provide records and information 
  7.27  collected under Minnesota Statutes 2000, sections 295.50 to 
  7.28  295.59 to the commissioner of human services for purposes of the 
  7.29  Medicaid Voluntary Contribution and Provider-Specific Tax 
  7.30  Amendments of 1991, Public Law Number 102-234.  Upon the written 
  7.31  agreement by the United States Department of Health and Human 
  7.32  Services to maintain the confidentiality of the data, the 
  7.33  commissioner may provide records and information collected under 
  7.34  Minnesota Statutes 2000, sections 295.50 to 295.59 to the Health 
  7.35  Care Financing Administration section of the United States 
  7.36  Department of Health and Human Services for purposes of meeting 
  8.1   federal reporting requirements.  
  8.2      (g) The commissioner may provide records and information to 
  8.3   the commissioner of human services as necessary to administer 
  8.4   the early refund of refundable tax credits. 
  8.5      (h) The commissioner may disclose information to the 
  8.6   commissioner of human services necessary to verify income for 
  8.7   eligibility and premium payment under the MinnesotaCare program, 
  8.8   under section 256L.05, subdivision 2. 
  8.9      (i) The commissioner may disclose information to the 
  8.10  commissioner of human services necessary to verify whether 
  8.11  applicants or recipients for the Minnesota family investment 
  8.12  program, general assistance, food stamps, and Minnesota 
  8.13  supplemental aid program have claimed refundable tax credits 
  8.14  under chapter 290 and the property tax refund under chapter 
  8.15  290A, and the amounts of the credits. 
  8.16     Sec. 11.  Minnesota Statutes 2000, section 290.06, 
  8.17  subdivision 2c, is amended to read: 
  8.18     Subd. 2c.  [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES, 
  8.19  AND TRUSTS.] (a) The income taxes imposed by this chapter upon 
  8.20  married individuals filing joint returns and surviving spouses 
  8.21  as defined in section 2(a) of the Internal Revenue Code must be 
  8.22  computed by applying to their taxable net income the following 
  8.23  schedule of rates: 
  8.24     (1) on the first $25,680, 5.35 5.45 percent; 
  8.25     (2) on all over $25,680, but not over $102,030, 7.05 7.15 
  8.26  percent; and 
  8.27     (3) on all over $102,030, 7.85 7.95 percent. 
  8.28     Married individuals filing separate returns, estates, and 
  8.29  trusts must compute their income tax by applying the above rates 
  8.30  to their taxable income, except that the income brackets will be 
  8.31  one-half of the above amounts.  
  8.32     (b) The income taxes imposed by this chapter upon unmarried 
  8.33  individuals must be computed by applying to taxable net income 
  8.34  the following schedule of rates: 
  8.35     (1) on the first $17,570, 5.35 5.45 percent; 
  8.36     (2) on all over $17,570, but not over $57,710, 7.05 7.15 
  9.1   percent; and 
  9.2      (3) on all over $57,710, 7.85 7.95 percent. 
  9.3      (c) The income taxes imposed by this chapter upon unmarried 
  9.4   individuals qualifying as a head of household as defined in 
  9.5   section 2(b) of the Internal Revenue Code must be computed by 
  9.6   applying to taxable net income the following schedule of rates: 
  9.7      (1) on the first $21,630, 5.35 5.45 percent; 
  9.8      (2) on all over $21,630, but not over $86,910, 7.05 7.15 
  9.9   percent; and 
  9.10     (3) on all over $86,910, 7.85 7.95 percent. 
  9.11     For tax years beginning after December 31, 2001, and before 
  9.12  January 1, 2004, the lowest percentage rates in this section are 
  9.13  increased by 1/20 of a percent, and all remaining rates are 
  9.14  increased by one-tenth of a percent.  For tax years beginning 
  9.15  after December 31, 2003, the lowest percentage rates in this 
  9.16  section are increased by one-tenth of a percent, the middle 
  9.17  percentage rates are increased by two-tenths of a percent, and 
  9.18  the highest percentage rates are increased by one-fourth of a 
  9.19  percent. 
  9.20     (d) In lieu of a tax computed according to the rates set 
  9.21  forth in this subdivision, the tax of any individual taxpayer 
  9.22  whose taxable net income for the taxable year is less than an 
  9.23  amount determined by the commissioner must be computed in 
  9.24  accordance with tables prepared and issued by the commissioner 
  9.25  of revenue based on income brackets of not more than $100.  The 
  9.26  amount of tax for each bracket shall be computed at the rates 
  9.27  set forth in this subdivision, provided that the commissioner 
  9.28  may disregard a fractional part of a dollar unless it amounts to 
  9.29  50 cents or more, in which case it may be increased to $1. 
  9.30     (e) An individual who is not a Minnesota resident for the 
  9.31  entire year must compute the individual's Minnesota income tax 
  9.32  as provided in this subdivision.  After the application of the 
  9.33  nonrefundable credits provided in this chapter, the tax 
  9.34  liability must then be multiplied by a fraction in which:  
  9.35     (1) the numerator is the individual's Minnesota source 
  9.36  federal adjusted gross income as defined in section 62 of the 
 10.1   Internal Revenue Code and increased by the additions required 
 10.2   under section 290.01, subdivision 19a, clauses (1) and (6), 
 10.3   after applying the allocation and assignability provisions of 
 10.4   section 290.081, clause (a), or 290.17; and 
 10.5      (2) the denominator is the individual's federal adjusted 
 10.6   gross income as defined in section 62 of the Internal Revenue 
 10.7   Code of 1986, increased by the amounts specified in section 
 10.8   290.01, subdivision 19a, clauses (1) and (6), and reduced by the 
 10.9   amounts specified in section 290.01, subdivision 19b, clause (1).
 10.10     [EFFECTIVE DATE.] This section is effective for tax years 
 10.11  beginning after December 31, 2000. 
 10.12     Sec. 12.  Minnesota Statutes 2000, section 290.62, is 
 10.13  amended to read: 
 10.14     290.62 [DISTRIBUTION DEPOSIT OF REVENUES; REFUNDS.] 
 10.15     Subdivision 1.  [DEPOSIT OF REVENUES.] All revenues derived 
 10.16  from the taxes, interest, penalties and charges under this 
 10.17  chapter shall, notwithstanding any other provisions of law, be 
 10.18  paid into the state treasury and credited as follows: 
 10.19     (1) All revenues derived from the increase in individual 
 10.20  income tax rates under section 11 must be credited to the health 
 10.21  care access fund; and 
 10.22     (2) All other revenues must be credited to the general fund 
 10.23  , and be distributed as follows:. 
 10.24     Subd. 2.  [PAYMENT OF REFUNDS; APPROPRIATION.] (1) There 
 10.25  shall, notwithstanding any other provision of the law, be paid 
 10.26  from this general the fund or account in the state treasury, in 
 10.27  the same proportion in which the money was credited, all refunds 
 10.28  of taxes erroneously collected from taxpayers under this chapter 
 10.29  as provided herein;. 
 10.30     (2) There is hereby appropriated to the persons entitled to 
 10.31  payment herein, from the fund or account in the state treasury 
 10.32  to which the money was credited, an amount sufficient to make 
 10.33  the refund and payment. 
 10.34     [EFFECTIVE DATE.] This section is effective for revenues 
 10.35  derived from tax years beginning after December 31, 2000. 
 10.36     Sec. 13.  Minnesota Statutes 2000, section 297F.05, 
 11.1   subdivision 1, is amended to read: 
 11.2      Subdivision 1.  [RATES; CIGARETTES.] A tax is imposed upon 
 11.3   the sale of cigarettes in this state, upon having cigarettes in 
 11.4   possession in this state with intent to sell, upon any person 
 11.5   engaged in business as a distributor, and upon the use or 
 11.6   storage by consumers, at the following rates, subject to the 
 11.7   discount provided in this chapter: 
 11.8      (1) on cigarettes weighing not more than three pounds per 
 11.9   thousand, 24 39 mills on each such cigarette; and 
 11.10     (2) on cigarettes weighing more than three pounds per 
 11.11  thousand, 48 78 mills on each such cigarette. 
 11.12     [EFFECTIVE DATE.] This section is effective July 1, 2001. 
 11.13     Sec. 14.  Minnesota Statutes 2000, section 297F.05, 
 11.14  subdivision 3, is amended to read: 
 11.15     Subd. 3.  [RATES; TOBACCO PRODUCTS.] A tax is imposed upon 
 11.16  all tobacco products in this state and upon any person engaged 
 11.17  in business as a distributor, at the rate of 35 57 percent of 
 11.18  the wholesale sales price of the tobacco products.  The tax is 
 11.19  imposed at the time the distributor: 
 11.20     (1) brings, or causes to be brought, into this state from 
 11.21  outside the state tobacco products for sale; 
 11.22     (2) makes, manufactures, or fabricates tobacco products in 
 11.23  this state for sale in this state; or 
 11.24     (3) ships or transports tobacco products to retailers in 
 11.25  this state, to be sold by those retailers. 
 11.26     [EFFECTIVE DATE.] This section is effective July 1, 2001. 
 11.27     Sec. 15.  Minnesota Statutes 2000, section 297F.05, 
 11.28  subdivision 4, is amended to read: 
 11.29     Subd. 4.  [USE TAX; TOBACCO PRODUCTS.] A tax is imposed 
 11.30  upon the use or storage by consumers of tobacco products in this 
 11.31  state, and upon such consumers, at the rate of 35 57 percent of 
 11.32  the cost to the consumer of the tobacco products. 
 11.33     [EFFECTIVE DATE.] This section is effective July 1, 2001. 
 11.34     Sec. 16.  Minnesota Statutes 2000, section 297F.08, 
 11.35  subdivision 7, is amended to read: 
 11.36     Subd. 7.  [PRICE OF STAMPS.] The commissioner shall sell 
 12.1   stamps to any person licensed as a distributor at a discount 
 12.2   of 1.0 0.62 percent from the face amount of the stamps for the 
 12.3   first $1,500,000 of such stamps purchased in any fiscal year; 
 12.4   and at a discount of 0.6 0.37 percent on the remainder of such 
 12.5   stamps purchased in any fiscal year.  The commissioner shall not 
 12.6   sell stamps to any other person.  The commissioner may prescribe 
 12.7   the method of shipment of the stamps to the distributor as well 
 12.8   as the quantities of stamps purchased. 
 12.9      Sec. 17.  Minnesota Statutes 2000, section 297F.10, is 
 12.10  amended to read: 
 12.11     297F.10 [DEPOSIT OF PROCEEDS.] 
 12.12     Subdivision 1.  [TAX AND USE TAX ON CIGARETTES.] Revenue 
 12.13  received from cigarette taxes, as well as related penalties, 
 12.14  interest, license fees, and miscellaneous sources of revenue 
 12.15  shall be deposited by the commissioner in the state treasury and 
 12.16  credited as follows: 
 12.17     (a) first to the general obligation special tax bond debt 
 12.18  service account in each fiscal year the amount required to 
 12.19  increase the balance on hand in the account on each December 1 
 12.20  to an amount equal to the full amount of principal and interest 
 12.21  to come due on all outstanding bonds whose debt service is 
 12.22  payable primarily from the proceeds of the tax to and including 
 12.23  the second following July 1; and 
 12.24     (b) after the requirements of paragraph (a) have been met: 
 12.25     (1) the revenue produced by one mill of the tax on 
 12.26  cigarettes weighing not more than three pounds a thousand and 
 12.27  two mills of the tax on cigarettes weighing more than three 
 12.28  pounds a thousand must be credited to the Minnesota future 
 12.29  resources fund; and 
 12.30     (2) the revenue produced by 15 mills of the tax on 
 12.31  cigarettes weighing not more than three pounds a thousand and 30 
 12.32  mills of the tax on cigarettes weighing more than three pounds a 
 12.33  thousand must be credited to the health care access fund; and 
 12.34     (3) the balance of the revenues derived from taxes, 
 12.35  penalties, and interest (under this chapter) and from license 
 12.36  fees and miscellaneous sources of revenue shall be credited to 
 13.1   the general fund. 
 13.2      Subd. 2.  [TAX AND USE TAX ON TOBACCO PRODUCTS.] 
 13.3   Thirty-eight and one-half percent of the revenue received from 
 13.4   taxes on tobacco products shall be deposited by the commissioner 
 13.5   in the state treasury and credited to the health care access 
 13.6   fund.  The balance of the revenues, as well as related 
 13.7   penalties, interest, and license fees, shall be deposited by the 
 13.8   commissioner in the state treasury and credited to the general 
 13.9   fund. 
 13.10     Sec. 18.  [CIGARETTES; FLOOR STOCKS TAX.] 
 13.11     (a) A floor stocks tax is imposed on every person engaged 
 13.12  in business in this state as a distributor, retailer, subjobber, 
 13.13  vendor, manufacturer, or manufacturer's representative of 
 13.14  cigarettes on the stamped cigarettes in the person's possession 
 13.15  or under the person's control at 12:01 a.m. on July 1, 2001.  
 13.16  The tax is imposed at the following rates, subject to the 
 13.17  discounts in Minnesota Statutes, section 297F.08, subdivision 7: 
 13.18     (1) on cigarettes weighing not more than three pounds per 
 13.19  thousand, 15 mills on each cigarette; and 
 13.20     (2) on cigarettes weighing more than three pounds per 
 13.21  thousand, 30 mills on each cigarette. 
 13.22     By July 8, 2001, each distributor shall file a report with 
 13.23  the commissioner, in the form the commissioner prescribes, 
 13.24  showing the cigarettes on hand at 12:01 a.m. on July 1, 2001, 
 13.25  and the amount of tax due on the cigarettes.  The tax imposed by 
 13.26  this section is due and payable by August 1, 2001, and after 
 13.27  that date bears interest at the rate specified by Minnesota 
 13.28  Statutes, section 297F.18. 
 13.29     By July 15, 2001, each retailer, subjobber, vendor, 
 13.30  manufacturer, or manufacturer's representative of cigarettes 
 13.31  shall file a return with the commissioner, in the form the 
 13.32  commissioner prescribes, showing the cigarettes on hand at 12:01 
 13.33  a.m. on July 1, 2001, and the amount of tax due on the 
 13.34  cigarettes.  The tax imposed by this section is due and payable 
 13.35  by August 1, 2001, and after that date bears interest at the 
 13.36  rate specified by Minnesota Statutes, section 297F.18. 
 14.1      (b) The revenue from the tax imposed under this section, as 
 14.2   well as related penalties and interest, shall be deposited by 
 14.3   the commissioner in the state treasury and credited to the 
 14.4   health care access fund. 
 14.5      [EFFECTIVE DATE.] This section is effective July 1, 2001. 
 14.6      Sec. 19.  [REPEALER.] 
 14.7      Minnesota Statutes 2000, sections 13.4967, subdivision 3; 
 14.8   62T.10; 144.1484, subdivision 2; 295.50; 295.51; 295.52; 295.53; 
 14.9   295.54; 295.55; 295.56; 295.57; 295.58; 295.582; and 295.59, are 
 14.10  repealed.