1.1 	A bill for an act
1.2 	relating to taxation; providing for contingent
1.3 	adjustment of certain MinnesotaCare taxes; amending
1.4 	Minnesota Statutes 2004, section 295.52, by adding a
1.5 	subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 295.52, is
1.8 	amended by adding a subdivision to read:
1.9 		Subd. 8.Contingent elimination of tax. The commissioner
1.10 	shall establish tax rates for calendar years beginning on or
1.11 	after January 1, 2006, based upon determinations made by the
1.12 	commissioner of finance regarding the estimated balance of the
1.13 	health care access fund.  The commissioner of finance shall, on
1.14 	September 1 of each year, beginning September 1, 2005, determine
1.15 	the estimated balance of the health care access fund in terms of
1.16 	the total expenditures and the total resources available for the
1.17 	fiscal year that begins the following July 1.  If the
1.18 	commissioner of finance determines on September 1 that for the
1.19 	following fiscal year the estimated total revenue available
1.20 	meets the estimated total expenditures plus an additional
1.21 	$50,000,000, the taxes imposed under subdivisions 1, 1a, 2, 3,
1.22 	and 4 shall be set at one percent of the gross revenues received
1.23 	on or after January 1 for the calendar year that begins
1.24 	immediately following that September 1.  If the commissioner of
1.25 	finance determines on September 1 that the total revenue
2.1 	available in the fund will be less than the estimated
2.2 	expenditures for the following fiscal year, then the
2.3 	commissioner, in consultation with the commissioner of finance,
2.4 	shall determine the amount needed to eliminate the deficit and
2.5 	shall impose an increase in the taxes under subdivisions 1, 1a,
2.6 	2, 3, and 4 for the calendar year that begins immediately
2.7 	following that September 1.  The commissioner shall determine
2.8 	the rate of the tax to the nearest one-quarter of one percent
2.9 	beginning at one percent and increasing the rate up to two
2.10 	percent, using the lowest of the rates that the commissioner
2.11 	determines will produce sufficient revenue to meet the estimated
2.12 	expenditures plus an additional $50,000,000.  The commissioner
2.13 	shall publish in the State Register by October 1 of each year,
2.14 	beginning October 1, 2005, the amount of the tax to be imposed
2.15 	for the following calendar year.  In determining the estimated
2.16 	expenditures of the health care access fund under this
2.17 	subdivision, the commissioner of finance shall include estimated
2.18 	expenditures for providing covered services, including the
2.19 	administration of the program and the collection of the
2.20 	revenue.  The commissioner of finance shall also assume an
2.21 	adjustment to the aggregate cap for the limited benefits
2.22 	coverage as described in section 256L.035, paragraph (b), when
2.23 	determining the balance of the fund beginning on September 1,
2.24 	2006, for the fiscal year beginning July 1, 2007.