SF 2545

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the MinnesotaCare tax; requiring 
  1.3             third-party purchasers to withhold the MinnesotaCare 
  1.4             tax from payment to hospitals, surgical centers, and 
  1.5             health care providers; amending Minnesota Statutes 
  1.6             1998, sections 295.50, subdivisions 3, 9b, and by 
  1.7             adding subdivisions; 295.52, subdivisions 1, 1a, 2, 3, 
  1.8             and by adding a subdivision; 295.53, subdivisions 2 
  1.9             and 3; 295.54, subdivision 1; 295.55, by adding a 
  1.10            subdivision; 295.57, subdivision 1; and 295.59; 
  1.11            Minnesota Statutes 1999 Supplement, sections 295.50, 
  1.12            subdivision 4; 295.53, subdivision 1; and 295.55, 
  1.13            subdivisions 2 and 3; repealing Minnesota Statutes 
  1.14            1998, sections 295.52, subdivision 6; 295.53, 
  1.15            subdivisions 4 and 4a; 295.55, subdivisions 5 and 6; 
  1.16            and 295.582; Minnesota Statutes 1999 Supplement, 
  1.17            section 295.52, subdivision 7. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 1998, section 295.50, is 
  1.20  amended by adding a subdivision to read: 
  1.21     Subd. 2b.  [ENROLLEE.] "Enrollee" means an enrollee as 
  1.22  defined in section 62J.70, subdivision 4, and includes 
  1.23  recipients of health care services covered under medical 
  1.24  assistance, general assistance medical care, or the 
  1.25  MinnesotaCare program. 
  1.26     Sec. 2.  Minnesota Statutes 1998, section 295.50, 
  1.27  subdivision 3, is amended to read: 
  1.28     Subd. 3.  [GROSS HEALTH CARE REVENUES.] "Gross Health care 
  1.29  revenues" are total amounts received in money or otherwise by: 
  1.30     (1) a hospital, surgical center, or health care provider 
  1.31  from an enrollee in the form of a deductible, copayment, or 
  2.1   coinsurance or a third-party purchaser for patient health care 
  2.2   services provided to an enrollee.  Health care revenues include 
  2.3   any remuneration paid to a hospital, surgical center, or health 
  2.4   care provider for health care services performed pursuant to an 
  2.5   agreement, directive, or contract with the third-party purchaser 
  2.6   to provide health care services to an enrollee; 
  2.7      (2) a surgical center for patient services; 
  2.8      (3) a health care provider, other than a staff model health 
  2.9   carrier, for patient services; 
  2.10     (4) a wholesale drug distributor for sale or distribution 
  2.11  of legend drugs that are delivered in Minnesota by the wholesale 
  2.12  drug distributor, by common carrier, or by mail, to a person 
  2.13  other than a hospital or staff model health plan company, unless 
  2.14  the legend drugs are delivered to another wholesale drug 
  2.15  distributor who sells legend drugs exclusively at wholesale.  
  2.16  Legend drugs do not include nutritional products as defined in 
  2.17  Minnesota Rules, part 9505.0325; and 
  2.18     (5) (3) a staff model health plan company as gross premiums 
  2.19  for enrollees, copayments, deductibles, coinsurance, and fees 
  2.20  for patient health care services covered under its contracts 
  2.21  with groups and enrollees. 
  2.22     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  2.23  295.50, subdivision 4, is amended to read: 
  2.24     Subd. 4.  [HEALTH CARE PROVIDER.] (a) "Health care 
  2.25  provider" means: 
  2.26     (1) a person whose health care occupation is regulated or 
  2.27  required to be regulated by the state of Minnesota furnishing 
  2.28  any or all of the following goods or services directly to a 
  2.29  patient or consumer:  medical, surgical, optical, visual, 
  2.30  dental, hearing, nursing services, drugs, laboratory, diagnostic 
  2.31  or therapeutic services; 
  2.32     (2) a person who provides goods and services not listed in 
  2.33  clause (1) that qualify for reimbursement under the medical 
  2.34  assistance program provided under chapter 256B; or 
  2.35     (3) a staff model health plan company; 
  2.36     (4) an ambulance service required to be licensed; or 
  3.1      (5) a person who sells or repairs hearing aids and related 
  3.2   equipment or prescription eyewear. 
  3.3      (b) Health care provider does not include: 
  3.4      (1) hospitals; medical supplies distributors, except as 
  3.5   specified under paragraph (a), clause (5); nursing homes 
  3.6   licensed under chapter 144A or licensed in any other 
  3.7   jurisdiction; pharmacies; surgical centers; bus and taxicab 
  3.8   transportation, or any other providers of transportation 
  3.9   services other than ambulance services required to be licensed; 
  3.10  supervised living facilities for persons with mental retardation 
  3.11  or related conditions, licensed under Minnesota Rules, parts 
  3.12  4665.0100 to 4665.9900; residential care homes licensed under 
  3.13  chapter 144B; board and lodging establishments providing only 
  3.14  custodial services that are licensed under chapter 157 and 
  3.15  registered under section 157.17 to provide supportive services 
  3.16  or health supervision services; adult foster homes as defined in 
  3.17  Minnesota Rules, part 9555.5105; day training and habilitation 
  3.18  services for adults with mental retardation and related 
  3.19  conditions as defined in section 252.41, subdivision 3; and 
  3.20  boarding care homes, as defined in Minnesota Rules, part 
  3.21  4655.0100; 
  3.22     (2) home health agencies as defined in Minnesota Rules, 
  3.23  part 9505.0175, subpart 15; a person providing personal care 
  3.24  services and supervision of personal care services as defined in 
  3.25  Minnesota Rules, part 9505.0335; a person providing private duty 
  3.26  nursing services as defined in Minnesota Rules, part 9505.0360; 
  3.27  and home care providers required to be licensed under chapter 
  3.28  144A; 
  3.29     (3) a person who employs health care providers solely for 
  3.30  the purpose of providing patient health care services to its 
  3.31  employees; and 
  3.32     (4) an educational institution that employs health care 
  3.33  providers solely for the purpose of providing patient health 
  3.34  care services to its students if the institution does not 
  3.35  receive fee for service payments or payments for extended 
  3.36  coverage; or 
  4.1      (5) a staff model health plan company. 
  4.2      Sec. 4.  Minnesota Statutes 1998, section 295.50, 
  4.3   subdivision 9b, is amended to read: 
  4.4      Subd. 9b.  [PATIENT HEALTH CARE SERVICES.] "Patient Health 
  4.5   care services" means inpatient and outpatient services and other 
  4.6   goods and services provided in Minnesota by hospitals a 
  4.7   hospital, surgical centers center, or health care providers 
  4.8   provider.  They include the following health care goods and 
  4.9   services provided to a patient or consumer: 
  4.10     (1) bed and board; 
  4.11     (2) nursing services and other related services; 
  4.12     (3) use of hospitals, surgical centers, or health care 
  4.13  provider facilities; 
  4.14     (4) medical social services; 
  4.15     (5) drugs, biologicals, supplies, appliances, and 
  4.16  equipment; 
  4.17     (6) other diagnostic or therapeutic items or services; 
  4.18     (7) medical or surgical services; 
  4.19     (8) items and services furnished to ambulatory patients not 
  4.20  requiring emergency care; 
  4.21     (9) emergency services; and 
  4.22     (10) covered services listed in section 256B.0625 and in 
  4.23  Minnesota Rules, parts 9505.0170 to 9505.0475. 
  4.24     Sec. 5.  Minnesota Statutes 1998, section 295.50, is 
  4.25  amended by adding a subdivision to read: 
  4.26     Subd. 16.  [THIRD-PARTY PURCHASER OF HEALTH CARE 
  4.27  SERVICES.] "Third-party purchaser of health care services" or 
  4.28  "third-party purchaser" means an entity that pays a hospital, 
  4.29  surgical center, or health care provider a payment for providing 
  4.30  a health care service to an enrollee pursuant to a contract with 
  4.31  an employer, group, or individual.  These entities include: 
  4.32     (1) a health plan company, health insurer, or health 
  4.33  coverage plan regulated under chapter 60A, 62A, 62C, 62D, 62H, 
  4.34  62N, or 64B; or under section 471.61 or 471.617; 
  4.35     (2) an employer who provides a self-insured health benefit 
  4.36  plan to its employees or, if applicable, a third-party 
  5.1   administrator of the employer's self-insured plan as defined in 
  5.2   section 60A.23, subdivision 8, and Minnesota Rules, chapter 
  5.3   2767; or 
  5.4      (3) the state in its capacity as a direct payer of health 
  5.5   care services under medical assistance, general assistance 
  5.6   medical care, or the MinnesotaCare program.  
  5.7      Sec. 6.  Minnesota Statutes 1998, section 295.52, 
  5.8   subdivision 1, is amended to read: 
  5.9      Subdivision 1.  [HOSPITAL TAX.] A tax is imposed on each 
  5.10  hospital equal to two percent of its gross health care revenues 
  5.11  over $5,000, as defined under section 295.50, subdivision 3. 
  5.12     Sec. 7.  Minnesota Statutes 1998, section 295.52, 
  5.13  subdivision 1a, is amended to read: 
  5.14     Subd. 1a.  [SURGICAL CENTER TAX.] A tax is imposed on each 
  5.15  surgical center equal to two percent of its gross health care 
  5.16  revenues over $5,000, as defined under section 295.50, 
  5.17  subdivision 3. 
  5.18     Sec. 8.  Minnesota Statutes 1998, section 295.52, 
  5.19  subdivision 2, is amended to read: 
  5.20     Subd. 2.  [PROVIDER TAX.] A tax is imposed on each health 
  5.21  care provider equal to two percent of its gross health care 
  5.22  revenues over $5,000, as defined under section 295.50, 
  5.23  subdivision 3. 
  5.24     Sec. 9.  Minnesota Statutes 1998, section 295.52, is 
  5.25  amended by adding a subdivision to read: 
  5.26     Subd. 2a.  [STAFF MODEL PROVIDER TAX.] A tax is imposed on 
  5.27  each staff model health plan company equal to two percent of its 
  5.28  health care revenues as defined under section 295.50, 
  5.29  subdivision 3.  
  5.30     Sec. 10.  Minnesota Statutes 1998, section 295.52, 
  5.31  subdivision 3, is amended to read: 
  5.32     Subd. 3.  [WHOLESALE DRUG DISTRIBUTOR TAX.] A tax is 
  5.33  imposed on each wholesale drug distributor equal to two percent 
  5.34  of its gross health care revenues as defined under section 
  5.35  295.50, subdivision 3.  
  5.36     Sec. 11.  Minnesota Statutes 1999 Supplement, section 
  6.1   295.53, subdivision 1, is amended to read: 
  6.2      Subdivision 1.  [EXEMPTIONS.] (a) The following payments 
  6.3   are excluded from the gross health care revenues subject to the 
  6.4   hospital, surgical center, or health care provider, or staff 
  6.5   model provider taxes under sections 295.50 to 295.57: 
  6.6      (1) payments received for services provided under the 
  6.7   Medicare program, including payments received from the 
  6.8   government, and organizations governed by sections 1833 and 1876 
  6.9   of title XVIII of the federal Social Security Act, United States 
  6.10  Code, title 42, section 1395, and enrollee deductibles, 
  6.11  coinsurance, and copayments, whether paid by the Medicare 
  6.12  enrollee or by a Medicare supplemental coverage as defined in 
  6.13  section 62A.011, subdivision 3, clause (10).  Payments for 
  6.14  services not covered by Medicare are taxable; 
  6.15     (2) medical assistance payments including payments received 
  6.16  directly from the government or from a prepaid plan; 
  6.17     (3) payments received for home health care services; 
  6.18     (4) payments received from hospitals or surgical centers 
  6.19  for goods and services on which liability for tax is imposed 
  6.20  under section 295.52 or the source of funds for the payment is 
  6.21  exempt under clause (1), (2), (7), (8), (10), or (13); 
  6.22     (5) payments received from health care providers for goods 
  6.23  and services on which liability for tax is imposed under this 
  6.24  chapter or the source of funds for the payment is exempt under 
  6.25  clause (1), (2), (7), (8), (10), or (13); 
  6.26     (6) amounts paid for legend drugs, other than nutritional 
  6.27  products, to a wholesale drug distributor who is subject to tax 
  6.28  under section 295.52, subdivision 3, reduced by reimbursements 
  6.29  received for legend drugs under clauses (1), (2), (7), and (8); 
  6.30     (7) payments received under the general assistance medical 
  6.31  care program including payments received directly from the 
  6.32  government or from a prepaid plan; 
  6.33     (8) payments received for providing services under the 
  6.34  MinnesotaCare program including payments received directly from 
  6.35  the government or from a prepaid plan and enrollee deductibles, 
  6.36  coinsurance, and copayments.  For purposes of this clause, 
  7.1   coinsurance means the portion of payment that the enrollee is 
  7.2   required to pay for the covered service; 
  7.3      (9) (3) payments received by a health care provider or the 
  7.4   wholly owned subsidiary of a health care provider for care 
  7.5   provided outside Minnesota; 
  7.6      (10) (4) payments received from the chemical dependency 
  7.7   fund under chapter 254B; 
  7.8      (11) payments received in the nature of charitable 
  7.9   donations that are not designated for providing patient services 
  7.10  to a specific individual or group; 
  7.11     (12) payments received for providing patient services 
  7.12  incurred through a formal program of health care research 
  7.13  conducted in conformity with federal regulations governing 
  7.14  research on human subjects.  Payments received from patients or 
  7.15  from other persons paying on behalf of the patients are subject 
  7.16  to tax; 
  7.17     (13) payments received from any governmental agency for 
  7.18  services benefiting the public, not including payments made by 
  7.19  the government in its capacity as an employer or insurer; 
  7.20     (14) (5) payments received for services provided by 
  7.21  community residential mental health facilities licensed under 
  7.22  Minnesota Rules, parts 9520.0500 to 9520.0690, community support 
  7.23  programs and family community support programs approved under 
  7.24  Minnesota Rules, parts 9535.1700 to 9535.1760, and community 
  7.25  mental health centers as defined in section 245.62, subdivision 
  7.26  2; 
  7.27     (15) government payments received by a regional treatment 
  7.28  center; 
  7.29     (16) (6) payments received for hospice care services; 
  7.30     (17) payments received by a health care provider for 
  7.31  hearing aids and related equipment or prescription eyewear 
  7.32  delivered outside of Minnesota; 
  7.33     (18) payments received by an educational institution from 
  7.34  student tuition, student activity fees, health care service 
  7.35  fees, government appropriations, donations, or grants.  Fee for 
  7.36  service payments and payments for extended coverage are taxable; 
  8.1      (19) (7) payments received for services provided by:  
  8.2   assisted living programs and congregate housing programs; 
  8.3      (20) (8) payments received from nursing homes licensed 
  8.4   under chapter 144A for services provided to a nursing home; and 
  8.5      (21) (9) payments received for examinations for purposes of 
  8.6   utilization reviews, insurance claims or eligibility, 
  8.7   litigation, and employment, including reviews of medical records 
  8.8   for those purposes. 
  8.9      (b) Payments received by wholesale drug distributors for 
  8.10  legend drugs sold directly to veterinarians or veterinary bulk 
  8.11  purchasing organizations are excluded from the gross revenues 
  8.12  subject to the wholesale drug distributor tax under sections 
  8.13  295.50 to 295.59. 
  8.14     Sec. 12.  Minnesota Statutes 1998, section 295.53, 
  8.15  subdivision 2, is amended to read: 
  8.16     Subd. 2.  [DEDUCTIONS FOR STAFF MODEL HEALTH PLAN COMPANY.] 
  8.17  In addition to the exemptions allowed under subdivision 1, a 
  8.18  staff model health plan company may deduct from its gross health 
  8.19  care revenues for the year: 
  8.20     (1) amounts paid to hospitals, surgical centers, and health 
  8.21  care providers that are not employees of the staff model health 
  8.22  plan company for services on which liability for the tax is 
  8.23  imposed under section 295.52; 
  8.24     (2) net amounts added to reserves, to the extent that the 
  8.25  amounts added do not cause total reserves to exceed 200 percent 
  8.26  of the statutory net worth requirement, the calculation of which 
  8.27  may be determined on a consolidated basis, taking into account 
  8.28  the amounts held in reserve by affiliated staff model health 
  8.29  plan companies; 
  8.30     (3) assessments for the comprehensive health insurance plan 
  8.31  under section 62E.11; and 
  8.32     (4) amounts spent for administration as reported as total 
  8.33  administration to the department of health in the statement of 
  8.34  revenues, expenses, and net worth pursuant to section 62D.08, 
  8.35  subdivision 3, clause (a); and 
  8.36     (5) payments received directly from the government and 
  9.1   enrollee deductibles, coinsurance, and copayments for providing 
  9.2   health care services under medical assistance, general 
  9.3   assistance medical care, or MinnesotaCare.  
  9.4      Sec. 13.  Minnesota Statutes 1998, section 295.53, 
  9.5   subdivision 3, is amended to read: 
  9.6      Subd. 3.  [SEPARATE STATEMENT OF TAX.] A hospital, surgical 
  9.7   center, or health care provider, or staff model health plan 
  9.8   company must not state the tax obligation under section 295.52 
  9.9   in a deceptive or misleading manner.  It must not separately 
  9.10  state tax obligations on bills provided to patients, consumers, 
  9.11  or other payers when the amount received for the services or 
  9.12  goods is not subject to tax.  
  9.13     Pharmacies that separately state the tax obligations on 
  9.14  bills provided to consumers or to other payers who purchase 
  9.15  legend drugs may state the tax obligation as the wholesale price 
  9.16  of the legend drugs multiplied by the tax percentage specified 
  9.17  in section 295.52.  Pharmacies must not state the tax obligation 
  9.18  based on the retail price.  
  9.19     Whenever the commissioner determines that a person has 
  9.20  engaged in any act or practice constituting a violation of this 
  9.21  subdivision, the commissioner may bring an action in the name of 
  9.22  the state in the district court of the appropriate county to 
  9.23  enjoin the act or practice and to enforce compliance with this 
  9.24  subdivision, or the commissioner may refer the matter to the 
  9.25  attorney general or the county attorney of the appropriate 
  9.26  county.  Upon a proper showing, a permanent or temporary 
  9.27  injunction, restraining order, or other appropriate relief must 
  9.28  be granted.  
  9.29     Sec. 14.  Minnesota Statutes 1998, section 295.54, 
  9.30  subdivision 1, is amended to read: 
  9.31     Subdivision 1.  [TAXES PAID TO ANOTHER STATE.] A hospital, 
  9.32  surgical center, or health care provider, or staff model health 
  9.33  plan company that has paid taxes to another jurisdiction 
  9.34  measured by gross revenues and is subject to tax under sections 
  9.35  295.52 to 295.59 on the same gross revenues is entitled to a 
  9.36  credit for the tax legally due and paid to another jurisdiction 
 10.1   to the extent of the lesser of (1) the tax actually paid to the 
 10.2   other jurisdiction, or (2) the amount of tax imposed by 
 10.3   Minnesota on the gross revenues subject to tax in the other 
 10.4   taxing jurisdictions. 
 10.5      Sec. 15.  Minnesota Statutes 1998, section 295.55, is 
 10.6   amended by adding a subdivision to read: 
 10.7      Subd. 1a.  [TAX WITHHOLDING.] Every third-party purchaser 
 10.8   of health care services shall deduct and withhold from any 
 10.9   payment paid to a hospital, surgical center, or health care 
 10.10  provider for health care services provided to an enrollee an 
 10.11  amount equal to two percent of the payment and an additional 
 10.12  amount equal to two percent of the total amount required to be 
 10.13  paid by the enrollee as a copayment, coinsurance, or deductible 
 10.14  according to the terms of the health care contract or policy.  
 10.15  The amount withheld must be remitted to the commissioner on the 
 10.16  tenth day of every month for amounts withheld in the previous 
 10.17  month.  
 10.18     Any third-party purchaser of health care services that 
 10.19  makes a payment to a hospital, surgical center, or health care 
 10.20  provider for health care services provided to an enrollee must 
 10.21  file an annual return on a form prescribed by the commissioner 
 10.22  by March 15 of the following calendar year. 
 10.23     By February 1 of each year, each third-party purchaser of 
 10.24  health care services must provide each hospital, surgical 
 10.25  center, and health care provider, on a form approved by the 
 10.26  commissioner, with the amount subject to withholding and the 
 10.27  amount withheld in the previous year. 
 10.28     Sec. 16.  Minnesota Statutes 1999 Supplement, section 
 10.29  295.55, subdivision 2, is amended to read: 
 10.30     Subd. 2.  [ESTIMATED TAX; HOSPITALS; SURGICAL CENTERS; AND 
 10.31  HEALTH CARE PROVIDERS.] (a) Each hospital or, surgical center, 
 10.32  and health care provider must make estimated payments of the 
 10.33  taxes for the calendar year in monthly installments to the 
 10.34  commissioner within 15 days after the end of the month file an 
 10.35  annual return on a form prescribed by the commissioner by March 
 10.36  15 of the following calendar year.  The amount remitted must 
 11.1   equal the amount of the tax imposed under section 295.52.  Any 
 11.2   amount deducted and withheld by a third-party purchaser in 
 11.3   accordance with subdivision 1a shall be allowed as a credit 
 11.4   against the tax imposed under section 295.52 for the tax year 
 11.5   the health care revenue is subject to the tax.  
 11.6      (b) Estimated tax payments are An annual return is not 
 11.7   required of hospitals or, surgical centers, or health care 
 11.8   providers, if:  
 11.9      (1) the tax for the current calendar year is less than 
 11.10  $500; or $5,000. 
 11.11     (2) the tax for the previous calendar year is less than 
 11.12  $500, if the taxpayer had a tax liability and was doing business 
 11.13  the entire year; or 
 11.14     (3) if a hospital has been allowed a grant under section 
 11.15  144.1484, subdivision 2, for the year. 
 11.16     (c) Underpayment of estimated installments bear interest at 
 11.17  the rate specified in section 270.75, from the due date of the 
 11.18  payment until paid or until the due date of the annual return 
 11.19  whichever comes first.  An underpayment of an estimated 
 11.20  installment is the difference between the amount paid and the 
 11.21  lesser of (1) 90 percent of one-twelfth of the tax for the 
 11.22  calendar year or (2) one-twelfth of the total tax for the 
 11.23  previous calendar year if the taxpayer had a tax liability and 
 11.24  was doing business the entire year. 
 11.25     Sec. 17.  Minnesota Statutes 1999 Supplement, section 
 11.26  295.55, subdivision 3, is amended to read: 
 11.27     Subd. 3.  [ESTIMATED TAX; OTHER TAXPAYERS.] (a) Each 
 11.28  taxpayer, other than a hospital or surgical center, staff model 
 11.29  health plan company and wholesale drug distributor must make 
 11.30  estimated payments of the taxes for the calendar year in 
 11.31  quarterly installments to the commissioner by April 15, July 15, 
 11.32  October 15, and January 15 of the following calendar year. 
 11.33     (b) Estimated tax payments are not required if:  (1) the 
 11.34  tax for the current calendar year is less than $500; or (2) the 
 11.35  tax for the previous calendar year is less than $500, if the 
 11.36  taxpayer had a tax liability and was doing business the entire 
 12.1   year. 
 12.2      (c) Underpayment of estimated installments bear interest at 
 12.3   the rate specified in section 270.75, from the due date of the 
 12.4   payment until paid or until the due date of the annual return 
 12.5   whichever comes first.  An underpayment of an estimated 
 12.6   installment is the difference between the amount paid and the 
 12.7   lesser of (1) 90 percent of one-quarter of the tax for the 
 12.8   calendar year or (2) one-quarter of the total tax for the 
 12.9   previous calendar year if the taxpayer had a tax liability and 
 12.10  was doing business the entire year. 
 12.11     (d) Staff model health plan companies and wholesale drug 
 12.12  distributors must file an annual return reconciling the 
 12.13  estimated payments by March 15 of the following calendar year.  
 12.14     (e) The estimated payments and annual return must contain 
 12.15  the information and be in the form prescribed by the 
 12.16  commissioner.  
 12.17     Sec. 18.  Minnesota Statutes 1998, section 295.57, 
 12.18  subdivision 1, is amended to read: 
 12.19     Subdivision 1.  [APPLICATION OF OTHER CHAPTERS.] Unless 
 12.20  specifically provided otherwise by sections 295.50 to 295.59, 
 12.21  the enforcement, interest, and penalty provisions under chapter 
 12.22  294, appeal provisions in sections 289A.43 and 289A.65, criminal 
 12.23  penalties in section 289A.63, and refunds provisions in section 
 12.24  289A.50, and collection and rulemaking provisions under chapter 
 12.25  270, apply to a liability for the taxes imposed under sections 
 12.26  295.50 to 295.59 on hospitals, surgical centers, health care 
 12.27  providers, staff model health plan companies, and wholesale drug 
 12.28  distributors.  Unless specifically provided otherwise by 
 12.29  sections 295.50 to 295.59, the enforcement, interest, penalty, 
 12.30  appeal, and refund provisions under chapter 289A apply to the 
 12.31  withholding provisions imposed under sections 295.50 to 295.59 
 12.32  on third-party purchasers. 
 12.33     Sec. 19.  Minnesota Statutes 1998, section 295.59, is 
 12.34  amended to read: 
 12.35     295.59 [SEVERABILITY.] 
 12.36     If any section, subdivision, clause, or phrase of sections 
 13.1   295.50 to 295.582 is for any reason held to be unconstitutional 
 13.2   or in violation of federal law, the decision shall not affect 
 13.3   the validity of the remaining portions of sections 295.50 to 
 13.4   295.582.  The legislature declares that it would have passed 
 13.5   sections 295.50 to 295.582 and each section, subdivision, 
 13.6   sentence, clause, and phrase thereof, irrespective of the fact 
 13.7   that any one or more sections, subdivisions, sentences, clauses, 
 13.8   or phrases is declared unconstitutional. 
 13.9      If the imposition of the duty to collect the tax on 
 13.10  third-party purchasers of health care services is found to be 
 13.11  unconstitutional or in violation of federal law or is enjoined 
 13.12  by a court of law, the duty to pay the tax is imposed on health 
 13.13  care providers, surgical centers, hospitals, staff model health 
 13.14  plan companies, and wholesale drug distributors. 
 13.15     Sec. 20.  [REPEALER.] 
 13.16     Minnesota Statutes 1998, sections 295.52, subdivision 6; 
 13.17  295.53, subdivisions 4 and 4a; 295.55, subdivisions 5 and 6; and 
 13.18  295.582; and Minnesota Statutes 1999 Supplement, section 295.52, 
 13.19  subdivision 7, are repealed. 
 13.20     Sec. 21.  [EFFECTIVE DATE.] 
 13.21     This act is effective for health care revenues that are 
 13.22  paid on or after January 1, 2002.