1.1                          A bill for an act 
  1.2             relating to health; exempting certain services 
  1.3             provided free of charge from the MinnesotaCare tax; 
  1.4             amending Minnesota Statutes 1998, section 295.50, 
  1.5             subdivision 3. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 295.50, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [GROSS REVENUES.] (a) "Gross revenues" are total 
  1.10  amounts received in money or otherwise by: 
  1.11     (1) a hospital for patient services; 
  1.12     (2) a surgical center for patient services; 
  1.13     (3) a health care provider, other than a staff model health 
  1.14  carrier, for patient services; 
  1.15     (4) a wholesale drug distributor for sale or distribution 
  1.16  of legend drugs that are delivered in Minnesota by the wholesale 
  1.17  drug distributor, by common carrier, or by mail, unless the 
  1.18  legend drugs are delivered to another wholesale drug distributor 
  1.19  who sells legend drugs exclusively at wholesale.  Legend drugs 
  1.20  do not include nutritional products as defined in Minnesota 
  1.21  Rules, part 9505.0325; and 
  1.22     (5) a staff model health plan company as gross premiums for 
  1.23  enrollees, copayments, deductibles, coinsurance, and fees for 
  1.24  patient services covered under its contracts with groups and 
  1.25  enrollees. 
  2.1      (b) Gross revenues do not include services provided by 
  2.2   employees of a health care provider, staff model health plan 
  2.3   company, hospital, or surgical center, under an employment 
  2.4   relationship. 
  2.5      Sec. 2.  [EFFECTIVE DATE.] 
  2.6      Section 1 is effective July 1, 1999, and applies to 
  2.7   services provided on or after that date.