Minnesota Legislature
HF 509
as introduced - 88th Legislature (2013 - 2014) Posted on 02/11/2013 02:23pm
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A bill for an act
relating to state government; modifying medical education and research cost
account distributions; increasing the cigarette and tobacco products taxes and
fees; modifying definitions; changing certain tax provisions; imposing a floor
stocks tax on cigarettes; adjusting the rate of the cigarette sales tax; appropriating
money; amending Minnesota Statutes 2012, sections 16A.724, subdivision 2;
62J.692, by adding subdivisions; 295.52, subdivision 8; 297F.01, subdivisions 3,
19; 297F.05, subdivisions 1, 3, 4; 297F.10; 325D.32, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 16A.724, subdivision 2, is amended to read:
Subd. 2.
Transfers.
(a) Notwithstanding section 295.581, to the extent available
resources in the health care access fund exceed expenditures in that fund, effective for
the biennium beginning July 1, 2007, the commissioner of management and budget shall
transfer the excess funds from the health care access fund to the general fund on June
30 of each year, provided that the amount transferred in any fiscal biennium shall not
exceed $96,000,000new text begin and provided that funds deposited under section 297F.10 shall not be
considered available resources for purposes of this transfernew text end . The purpose of this transfer
is to meet the rate increase required under Laws 2003, First Special Session chapter 14,
article 13C, section 2, subdivision 6.
(b) For fiscal years 2006 to 2011, MinnesotaCare shall be a forecasted program, and,
if necessary, the commissioner shall reduce these transfers from the health care access
fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary,
transfer sufficient funds from the general fund to the health care access fund to meet
annual MinnesotaCare expenditures.
new text begin
(c) Notwithstanding section 295.581, the following amounts shall be transferred
from the health care access fund for the purposes provided:
new text end
new text begin
(1) $44,000,000 each year must be transferred to the medical education and research
cost account created in the special revenue fund and is annually appropriated to the
commissioner of health for distribution under section 62J.692, subdivision 4;
new text end
new text begin
(2) $25,000,000 each year must be transferred to the medical education and research
cost account created in the special revenue fund and is annually appropriated to the
commissioner of health for distribution under section 62J.692, subdivision 7b;
new text end
new text begin
(3) $15,000,000 each year must be transferred to the medical education and research
cost account in the special revenue fund and is annually appropriated to the commissioner
of health for distribution under section 62J.692, subdivision 4a;
new text end
new text begin
(4) $20,000,000 each year is annually appropriated to the commissioner of health for
distribution under section 144.1501 for physician loan forgiveness; and
new text end
new text begin
(5) $30,000,000 each year is annually appropriated to the commissioner of health for
distribution of statewide health improvement grants under section 145.986.
new text end
Sec. 2.
Minnesota Statutes 2012, section 62J.692, is amended by adding a subdivision
to read:
new text begin Subd. 4a. new text end
new text begin Per-resident formula. new text end
new text begin
The commissioner shall annually distribute
medical education funds available under section 16A.724, subdivision 2, paragraph (c),
clause (3), to all qualifying applicants based on a distribution formula that reflects a
per-resident-physician factor developed by the commissioner of health, in consultation
with training hospitals.
new text end
Sec. 3.
Minnesota Statutes 2012, section 62J.692, is amended by adding a subdivision
to read:
new text begin Subd. 7b. new text end
new text begin Primary care training grants. new text end
new text begin
(a) The commissioner shall award grants
to clinical training sites that train the following primary care professionals:
new text end
new text begin
(1) family practice physicians;
new text end
new text begin
(2) geriatricians;
new text end
new text begin
(3) pediatricians;
new text end
new text begin
(4) nurse practitioners;
new text end
new text begin
(5) clinical nurse specialists;
new text end
new text begin
(6) physician assistants;
new text end
new text begin
(7) psychiatrists; or
new text end
new text begin
(8) pharmacists.
new text end
new text begin
(b) The commissioner shall periodically evaluate the priorities in awarding these
grants in order to ensure that the priorities meet the changing workforce needs of the state.
new text end
Sec. 4.
Minnesota Statutes 2012, section 295.52, subdivision 8, is amended to read:
Subd. 8.
Contingent reduction in tax rate.
(a) By December 1 of each year,
beginning in 2011, the commissioner of management and budget shall determine the
projected balance in the health care access fund for the biennium.new text begin In determining the
projected balance in the health care access fund for the biennium, the commissioner
shall not count as revenues any funds deposited to the health care access fund pursuant
to section 297F.10.
new text end
(b) If the commissioner of management and budget determines that the projected
balance in the health care access fund for the biennium reflects a ratio of revenues to
expenditures and transfers greater than 125 percent, and if the actual cash balance in the
fund is adequate, as determined by the commissioner of management and budget, the
commissioner, in consultation with the commissioner of revenue, shall reduce the tax rates
levied under subdivisions 1, 1a, 2, 3, and 4, for the subsequent calendar year sufficient
to reduce the structural balance in the fund. The rate may be reduced to the extent that
the projected revenues for the biennium do not exceed 125 percent of expenditures and
transfers. The new rate shall be rounded to the nearest one-tenth of one percent. The rate
reduction under this paragraph expires at the end of each calendar year and is subject to an
annual redetermination by the commissioner of management and budget.
(c) For purposes of the analysis defined in paragraph (b), the commissioner of
management and budget shall include projected revenues, notwithstanding the repeal of
the tax imposed under this section effective January 1, 2020.
Sec. 5.
Minnesota Statutes 2012, section 297F.01, subdivision 3, is amended to read:
Subd. 3.
Cigarette.
"Cigarette" means any roll for smoking made wholly or in part
of tobaccodeleted text begin ,deleted text end new text begin that weighs 4.5 pounds or less per thousand:
new text end
new text begin (1)new text end the wrapper or cover of which is made of paper or another substance or material
except tobacconew text begin ; or
new text end
new text begin (2) wrapped in any substance containing tobacco, however labeled or named, which,
because of its appearance, size, the type of tobacco used in the filler, or its packaging,
pricing, marketing, or labeling, is likely to be offered to or purchased by consumers as
a cigarette, as defined in clause (1), unless it is wrapped in whole tobacco leaf and does
not have a cellulose acetate or other cigarette-like filternew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 6.
Minnesota Statutes 2012, section 297F.01, subdivision 19, is amended to read:
Subd. 19.
Tobacco products.
"Tobacco products" means any product containing,
made, or derived from tobacco that is intended for human consumption, whether chewed,
smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means,
or any component, part, or accessory of a tobacco product, including, but not limited
to, cigars; deleted text begin little cigars;deleted text end cheroots; stogies; periques; granulated, plug cut, crimp cut,
ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist
tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings
and sweepings of tobacco, and other kinds and forms of tobacco; but does not include
cigarettes as defined in this section. Tobacco products excludes any tobacco product
that has been approved by the United States Food and Drug Administration for sale as
a tobacco cessation product, as a tobacco dependence product, or for other medical
purposes, and is being marketed and sold solely for such an approved purpose.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 7.
Minnesota Statutes 2012, section 297F.05, subdivision 1, is amended to read:
Subdivision 1.
Rates; cigarettes.
A tax is imposed upon the sale of cigarettes in
this state, upon having cigarettes in possession in this state with intent to sell, upon any
person engaged in business as a distributor, and upon the use or storage by consumers, at
the following rates:
(1) on cigarettes weighing not more than three pounds per thousand, deleted text begin 24deleted text end new text begin 99new text end mills on
each such cigarette; and
(2) on cigarettes weighing more than three pounds per thousand, deleted text begin 48deleted text end new text begin 123new text end mills on
each such cigarette.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 8.
Minnesota Statutes 2012, section 297F.05, subdivision 3, is amended to read:
Subd. 3.
Rates; tobacco products.
A tax is imposed upon all tobacco products
in this state and upon any person engaged in business as a distributor, at the rate of deleted text begin 35
deleted text end new text begin 47.5new text end percent of the wholesale sales price of the tobacco products. The tax is imposed at
the time the distributor:
(1) brings, or causes to be brought, into this state from outside the state tobacco
products for sale;
(2) makes, manufactures, or fabricates tobacco products in this state for sale in
this state; or
(3) ships or transports tobacco products to retailers in this state, to be sold by those
retailers.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 9.
Minnesota Statutes 2012, section 297F.05, subdivision 4, is amended to read:
Subd. 4.
Use tax; tobacco products.
A tax is imposed upon the use or storage by
consumers of tobacco products in this state, and upon such consumers, at the rate of deleted text begin 35
deleted text end new text begin 47.5new text end percent of the cost to the consumer of the tobacco products.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 10.
Minnesota Statutes 2012, section 297F.10, is amended to read:
297F.10 DEPOSIT OF PROCEEDS.
Subdivision 1.
Tax and use tax on cigarettes.
Revenue received from cigarette
taxes, as well as related penalties, interest, license fees, and miscellaneous sources of
revenue shall be deposited by the commissioner in the state treasury and credited as follows:
(1) $22,220,000 for fiscal year 2006 and $22,250,000 for fiscal year 2007 and each
year thereafter must be credited to the Academic Health Center special revenue fund
hereby created and is annually appropriated to the Board of Regents at the University of
Minnesota for Academic Health Center funding at the University of Minnesota; and
(2) $8,550,000 for fiscal years 2007 through fiscal year 2011 and $3,937,000 each
year thereafter must be credited to the medical education and research costs account hereby
created in the special revenue fund and is annually appropriated to the commissioner of
health for distribution under section 62J.692, subdivision 4;
new text begin (3) an amount estimated annually by the commissioner of revenue of revenues
attributable to increased rates provided in this act must be deposited into the health care
access fund; new text end and
deleted text begin (3)deleted text end new text begin (4)new text end the balance of the revenues derived from taxes, penalties, and interest (under
this chapter) and from license fees and miscellaneous sources of revenue shall be credited
to the general fund.
Subd. 2.
Tax and use tax on tobacco products.
Revenue received from taxes on
tobacco products, as well as related penalties, interest, and license fees shall be deposited
by the commissioner in the state treasury and credited to the general fundnew text begin , except amounts
attributable to increased rates provided in this act must be deposited into the health care
access fundnew text end .
Sec. 11.
Minnesota Statutes 2012, section 325D.32, subdivision 2, is amended to read:
Subd. 2.
Cigarettes.
"Cigarettes" means and includes any roll for smoking, made
wholly or in part of tobacco, irrespective of size and shape and whether or not such
tobacco is flavored, adulterated or mixed with any other ingredient, the wrapper or cover
of which is made of paper or any other substance or material except new text begin whole new text end tobacconew text begin leaf,
and includes any cigarette as defined in section 297F.01, subdivision 3new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 12. new text begin FLOOR STOCKS TAX.
new text end
new text begin Subdivision 1. new text end
new text begin Cigarettes. new text end
new text begin
A floor stocks cigarette tax is imposed on every
person engaged in the business in this state as a distributor, retailer, subjobber, vendor,
manufacturer, or manufacturer's representative of cigarettes, on the stamped cigarettes and
unaffixed stamps in the person's possession or under the person's control at 12:01 a.m. on
July 1, 2013. The tax is imposed at the rate of 75 mills on each cigarette.
new text end
new text begin
Each distributor, on or before July 11, 2013, shall file a return with the commissioner
of revenue, in the form the commissioner prescribes, showing the stamped cigarettes and
unaffixed stamps on hand at 12:01 a.m. on July 1, 2013, and the amount of tax due on
the cigarettes and unaffixed stamps. Each retailer, subjobber, vendor, manufacturer, or
manufacturer's representative, on or before July 11, 2013, shall file a return with the
commissioner of revenue, in the form the commissioner prescribes, showing the cigarettes
on hand at 12:01 a.m. on July 1, 2013, and the amount of tax due on the cigarettes. The
tax imposed by this section is due and payable on or before August 8, 2013, and after that
date bears interest at the rate of one percent per month.
new text end
new text begin Subd. 2. new text end
new text begin Audit and enforcement. new text end
new text begin
The tax imposed by this section is subject to
the audit, assessment, interest, appeal, refund, penalty, enforcement, administrative, and
collection provisions of Minnesota Statutes, chapters 270C and 297F. The commissioner
of revenue may require a distributor to receive and maintain copies of floor stocks fee
returns filed by all persons requesting a credit for returned cigarettes.
new text end
new text begin Subd. 3. new text end
new text begin Deposit of proceeds. new text end
new text begin
The commissioner of revenue shall deposit the
revenues from the tax under this section in the state treasury and credit them to the
general fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2013.
new text end
Sec. 13. new text begin ADJUSTMENT OF CIGARETTE SALES TAX.
new text end
new text begin
The commissioner of revenue shall adjust the cigarette sales tax rate under Minnesota
Statutes, section 297F.25, that is effective August 1, 2013, to reflect the estimated effect
on cigarette prices with the imposition of the increased cigarette taxes under this act.
new text end