SF 2045

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/28/2023 03:28pm

A bill for an act
relating to state government; establishing a funding mechanism for a long-term
care access fund in the state treasury; amending Minnesota Statutes 2022, sections
16A.152, subdivisions 1b, 2; 289A.20, subdivision 4; 289A.60, subdivision 15;
proposing coding for new law in Minnesota Statutes, chapter 16A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

LONG-TERM CARE ACCESS FUND

Section 1.

Minnesota Statutes 2022, section 16A.152, subdivision 2, is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following new text begin
funds, new text end accounts new text begin , new text end and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

new text begin (2) the long-term care access fund established in section 16A.7241, subdivision 1, until
the allocated amount equals the long-term care access fund contribution amount calculated
in section 16A.7241, subdivision 2;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end the budget reserve account established in subdivision 1a until that account reaches
$2,377,399,000;

deleted text begin (3) deleted text end new text begin (4) new text end the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve;

deleted text begin (4) deleted text end new text begin (5) new text end the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, by the same amount;

deleted text begin (5) deleted text end new text begin (6) new text end the amount necessary to increase the Minnesota 21st century fund by not more
than the difference between $5,000,000 and the sum of the amounts credited and canceled
to it in the previous 12 months under Laws 2020, chapter 71, article 1, section 11, until the
sum of all transfers under this section and all amounts credited or canceled under Laws
2020, chapter 71, article 1, section 11, equals $20,000,000; and

deleted text begin (6) deleted text end new text begin (7) new text end for a forecast in November only, the amount remaining after the transfer under
clause (5) must be used to reduce the percentage of accelerated June liability sales tax
payments required under section 289A.20, subdivision 4, paragraph (b), until the percentage
equals zero, rounded to the nearest tenth of a percent. By March 15 following the November
forecast, the commissioner must provide the commissioner of revenue with the percentage
of accelerated June liability owed based on the reduction required by this clause. By April
15 each year, the commissioner of revenue must certify the percentage of June liability
owed by vendors based on the reduction required by this clause.

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses deleted text begin (3) deleted text end new text begin (4) new text end and deleted text begin (4) deleted text end new text begin (5) new text end , as necessary to meet the
appropriations schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses deleted text begin (3) deleted text end new text begin (4) new text end and deleted text begin (4) deleted text end new text begin (5) new text end , to the commissioner of
education. The commissioner of education shall increase the aid payment percentage and
reduce the property tax shift percentage by these amounts and apply those reductions to the
current fiscal year and thereafter.

Sec. 2.

new text begin [16A.7241] LONG-TERM CARE ACCESS FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Long-term care access fund established. new text end

new text begin A long-term care access fund
is created in the state treasury. The fund is a direct appropriated special revenue fund. The
commissioner shall deposit to the credit of the fund money made available to the fund.
Notwithstanding section 11A.20, all investment income and all investment losses attributable
to the investment of the long-term care access fund not currently needed shall be credited
to the long-term care access fund.
new text end

new text begin Subd. 2. new text end

new text begin Contribution amount determined. new text end

new text begin The commissioner of management and
budget must determine the long-term care access fund contribution amount when preparing
a forecast. The long-term care access fund contribution amount is equal to any amount
greater than zero resulting from subtracting the state share of the projected expenditures for
the long-term care facility and long-term care waiver portions of the medical assistance
program from the state share of the most recently enacted appropriation from the general
fund for these portions of the medical assistance program.
new text end

new text begin Subd. 3. new text end

new text begin Allocation of contribution amount. new text end

new text begin If on the basis of a forecast of general
fund revenues and expenditures the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of the
biennium and that there will be a long-term care access fund contribution amount at the end
of the biennium, the commissioner of management and budget must transfer the contribution
amount to the long-term care access fund in accordance with the requirements of section
16A.152.
new text end

new text begin Subd. 4. new text end

new text begin Long-term services and supports funding. new text end

new text begin The commissioner of human
services may expend money appropriated from the long-term care access fund for publicly
funded long-term services and supports and for initiatives to prevent or delay the need for
Minnesotans to receive publicly funded long-term care services and supports. Funds
appropriated by law must supplement traditional sources of funding for long-term care
services and may not be used as a substitute for forecasted spending.
new text end

ARTICLE 2

CONFORMING CHANGES

Section 1.

Minnesota Statutes 2022, section 16A.152, subdivision 1b, is amended to read:

Subd. 1b.

Budget reserve level.

(a) The commissioner of management and budget shall
calculate the budget reserve level by multiplying the current biennium's general fund
nondedicated revenues and the most recent budget reserve percentage under subdivision 8.

(b) If, on the basis of a November forecast of general fund revenues and expenditures,
the commissioner of management and budget determines that there will be a positive
unrestricted general fund balance at the close of the biennium and that the provisions of
subdivision 2, paragraph (a), clauses (1) deleted text begin , (2), (3), and (4) deleted text end new text begin to (5) new text end , are satisfied, the
commissioner shall transfer to the budget reserve account in the general fund the amount
necessary to increase the budget reserve to the budget reserve level determined under
paragraph (a). The amount of the transfer authorized in this paragraph shall not exceed 33
percent of the positive unrestricted general fund balance determined in the forecast.

Sec. 2.

Minnesota Statutes 2022, section 289A.20, subdivision 4, is amended to read:

Subd. 4.

Sales and use tax.

(a) The taxes imposed by chapter 297A are due and payable
to the commissioner monthly on or before the 20th day of the month following the month
in which the taxable event occurred, or following another reporting period as the
commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f)
or (g), except that use taxes due on an annual use tax return as provided under section
289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.

(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30,
except a vendor of construction materials as defined in paragraph (e), must remit the June
liability for the next year in the following manner:

(1) Two business days before June 30 of calendar year 2020 and 2021, the vendor must
remit 87.5 percent of the estimated June liability to the commissioner. Two business days
before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percent, or
a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause deleted text begin (6) deleted text end new text begin (7) new text end , of the estimated June liability to the commissioner.

(2) On or before August 20 of the year, the vendor must pay any additional amount of
tax not remitted in June.

(c) A vendor having a liability of:

(1) $10,000 or more, but less than $250,000, during a fiscal year must remit by electronic
means all liabilities on returns due for periods beginning in all subsequent calendar years
on or before the 20th day of the month following the month in which the taxable event
occurred, or on or before the 20th day of the month following the month in which the sale
is reported under section 289A.18, subdivision 4; or

(2) $250,000 or more during a fiscal year must remit by electronic means all liabilities
in the manner provided in paragraph (a) on returns due for periods beginning in the
subsequent calendar year, except that a vendor subject to the remittance requirements of
paragraph (b) must remit the percentage of the estimated June liability, as provided in
paragraph (b), clause (1), which is due two business days before June 30. The remaining
amount of the June liability is due on August 20.

(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious
beliefs from paying electronically shall be allowed to remit the payment by mail. The filer
must notify the commissioner of revenue of the intent to pay by mail before doing so on a
form prescribed by the commissioner. No extra fee may be charged to a person making
payment by mail under this paragraph. The payment must be postmarked at least two business
days before the due date for making the payment in order to be considered paid on a timely
basis.

(e) For the purposes of paragraph (b), "vendor of construction materials" means a retailer
that sells any of the following construction materials, if 50 percent or more of the retailer's
sales revenue for the fiscal year ending June 30 is from the sale of those materials:

(1) lumber, veneer, plywood, wood siding, wood roofing;

(2) millwork, including wood trim, wood doors, wood windows, wood flooring; or

(3) concrete, cement, and masonry.

(f) Paragraph (b) expires after the percentage of estimated payment is reduced to zero
in accordance with section 16A.152, subdivision 2, paragraph (a), clause deleted text begin (6) deleted text end new text begin (7) new text end .

Sec. 3.

Minnesota Statutes 2022, section 289A.60, subdivision 15, is amended to read:

Subd. 15.

Accelerated payment of June sales tax liability; penalty for
underpayment.

(a) For payments made after December 31, 2019 new text begin , new text end and before December
31, 2021, if a vendor is required by law to submit an estimation of June sales tax liabilities
and 87.5 percent payment by a certain date, the vendor shall pay a penalty equal to ten
percent of the amount of actual June liability required to be paid in June less the amount
remitted in June. The penalty must not be imposed, however, if the amount remitted in June
equals the lesser of 87.5 percent of the preceding May's liability or 87.5 percent of the
average monthly liability for the previous calendar year.

(b) For payments made after December 31, 2021, the penalty must not be imposed if
the amount remitted in June equals the lesser of 84.5 percent, or a reduced percentage as
certified by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause
deleted text begin (6) deleted text end new text begin (7) new text end , of the preceding May's liability or 84.5 percent of the average monthly liability for
the previous calendar year.

(c) This subdivision expires after the percentage of estimated payment is reduced to zero
in accordance with section 16A.152, subdivision 2, paragraph (a), clause deleted text begin (6) deleted text end new text begin (7) new text end .