1.1                          A bill for an act 
  1.2             relating to alcoholic beverages; increasing the sales 
  1.3             tax rate on alcoholic beverages; providing for the 
  1.4             dedication of a portion of the revenues from the sales 
  1.5             tax on alcoholic beverages to the chemical dependency 
  1.6             treatment account; eliminating requirements for a 
  1.7             sliding fee schedule for persons eligible for chemical 
  1.8             dependency fund services; amending Minnesota Statutes 
  1.9             1994, sections 254B.04, subdivision 1; 297A.02, 
  1.10            subdivision 3; and 297A.44, subdivision 1; Minnesota 
  1.11            Statutes 1995 Supplement, section 254B.02, subdivision 
  1.12            1; repealing Minnesota Statutes 1994, section 254B.04, 
  1.13            subdivision 3. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.16  254B.02, subdivision 1, is amended to read: 
  1.17     Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
  1.18  The chemical dependency funds appropriated for allocation, and 
  1.19  the sales tax revenues described in section 297A.44, subdivision 
  1.20  1, paragraph (e), shall be placed in a special revenue account.  
  1.21  For the fiscal year beginning July 1, 1987, funds shall be 
  1.22  transferred to operate the vendor payment, invoice processing, 
  1.23  and collections system for one year.  The commissioner shall 
  1.24  annually transfer funds from the chemical dependency fund to pay 
  1.25  for operation of the drug and alcohol abuse normative evaluation 
  1.26  system and to pay for all costs incurred by adding two positions 
  1.27  for licensing of chemical dependency treatment and 
  1.28  rehabilitation programs located in hospitals for which funds are 
  1.29  not otherwise appropriated.  The commissioner shall annually 
  2.1   divide the money available in the chemical dependency fund that 
  2.2   is not held in reserve by counties from a previous allocation.  
  2.3   Twelve percent of the remaining money must be reserved for 
  2.4   treatment of American Indians by eligible vendors under section 
  2.5   254B.05.  The remainder of the money must be allocated among the 
  2.6   counties according to the following formula, using state 
  2.7   demographer data and other data sources determined by the 
  2.8   commissioner: 
  2.9      (a) For purposes of this formula, American Indians and 
  2.10  children under age 14 are subtracted from the population of each 
  2.11  county to determine the restricted population. 
  2.12     (b) The amount of chemical dependency fund expenditures for 
  2.13  entitled persons for services not covered by prepaid plans 
  2.14  governed by section 256B.69 in the previous year is divided by 
  2.15  the amount of chemical dependency fund expenditures for entitled 
  2.16  persons for all services to determine the proportion of exempt 
  2.17  service expenditures for each county. 
  2.18     (c) The prepaid plan months of eligibility is multiplied by 
  2.19  the proportion of exempt service expenditures to determine the 
  2.20  adjusted prepaid plan months of eligibility for each county. 
  2.21     (d) The adjusted prepaid plan months of eligibility is 
  2.22  added to the number of restricted population fee for service 
  2.23  months of eligibility for aid to families with dependent 
  2.24  children, general assistance, and medical assistance and divided 
  2.25  by the county restricted population to determine county per 
  2.26  capita months of covered service eligibility. 
  2.27     (e) The number of adjusted prepaid plan months of 
  2.28  eligibility for the state is added to the number of fee for 
  2.29  service months of eligibility for aid to families with dependent 
  2.30  children, general assistance, and medical assistance for the 
  2.31  state restricted population and divided by the state restricted 
  2.32  population to determine state per capita months of covered 
  2.33  service eligibility. 
  2.34     (f) The county per capita months of covered service 
  2.35  eligibility is divided by the state per capita months of covered 
  2.36  service eligibility to determine the county welfare caseload 
  3.1   factor. 
  3.2      (g) The median married couple income for the most recent 
  3.3   three-year period available for the state is divided by the 
  3.4   median married couple income for the same period for each county 
  3.5   to determine the income factor for each county. 
  3.6      (h) The county restricted population is multiplied by the 
  3.7   sum of the county welfare caseload factor and the county income 
  3.8   factor to determine the adjusted population. 
  3.9      (i) $15,000 shall be allocated to each county.  
  3.10     (j) The remaining funds shall be allocated proportional to 
  3.11  the county adjusted population. 
  3.12     Sec. 2.  Minnesota Statutes 1994, section 254B.04, 
  3.13  subdivision 1, is amended to read: 
  3.14     Subdivision 1.  [ELIGIBILITY.] (a) Persons eligible for 
  3.15  benefits under Code of Federal Regulations, title 25, part 20, 
  3.16  persons eligible for medical assistance benefits under sections 
  3.17  256B.055, 256B.056, and 256B.057, subdivisions 1, 2, 5, and 6, 
  3.18  or who meet the income standards of section 256B.056, 
  3.19  subdivision 4, and persons eligible for general assistance 
  3.20  medical care under section 256D.03, subdivision 3, are entitled 
  3.21  to chemical dependency fund services.  State money appropriated 
  3.22  for this paragraph must be placed in a separate account 
  3.23  established for this purpose. 
  3.24     (b) A person not entitled to services under paragraph (a), 
  3.25  but with family income that is less than 60 percent of the state 
  3.26  median income for a family of like size and composition, shall 
  3.27  be eligible to receive chemical dependency fund services within 
  3.28  the limit of funds available after persons entitled to services 
  3.29  under paragraph (a) have been served.  A county may spend money 
  3.30  from its own sources to serve persons under this paragraph.  
  3.31  State money appropriated for this paragraph must be placed in a 
  3.32  separate account established for this purpose. 
  3.33     (c) Persons whose income is between 60 percent and 115 
  3.34  percent of the state median income shall be eligible for 
  3.35  chemical dependency services ~~on a sliding fee basis~~, within the 
  3.36  limit of funds available, after persons entitled to services 
  4.1   under paragraph (a) and persons eligible for services under 
  4.2   paragraph (b) have been served.  ~~Persons eligible under this~~ 
  4.3   ~~paragraph must contribute to the cost of services according to~~ 
  4.4   ~~the sliding fee scale established under subdivision 3.~~  A county 
  4.5   may spend money from its own sources to provide services to 
  4.6   persons under this paragraph.  State money appropriated for this 
  4.7   paragraph must be placed in a separate account established for 
  4.8   this purpose. 
  4.9      (d) Notwithstanding the provisions of paragraphs (b) and 
  4.10  (c), state funds appropriated to serve persons who are not 
  4.11  entitled under the provisions of paragraph (a), shall be 
  4.12  expended for chemical dependency treatment services for 
  4.13  nonentitled but eligible persons who have children in their 
  4.14  household, are pregnant, or are younger than 18 years old.  
  4.15  These persons may have household incomes up to 60 percent of the 
  4.16  state median income.  Any funds in addition to the amounts 
  4.17  necessary to serve the persons identified in this paragraph 
  4.18  shall be expended according to the provisions of paragraphs (b) 
  4.19  and (c).  
  4.20     Sec. 3.  Minnesota Statutes 1994, section 297A.02, 
  4.21  subdivision 3, is amended to read: 
  4.22     Subd. 3.  [LIQUOR AND BEER SALES.] Notwithstanding the 
  4.23  provisions of subdivision 1, the rate of the excise tax imposed 
  4.24  upon sales of intoxicating liquor, as defined in section 
  4.25  340A.101, subdivision 14, and 3.2 percent malt liquor, as 
  4.26  defined in section 340A.101, subdivision 19, shall be ~~nine~~ 12 
  4.27  percent.  The 3.2 percent malt liquor is subject to taxation 
  4.28  under this subdivision only when sold at an on-sale or off-sale 
  4.29  municipal liquor store or other establishment licensed to sell 
  4.30  any type of intoxicating liquor.  
  4.31     Sec. 4.  Minnesota Statutes 1994, section 297A.44, 
  4.32  subdivision 1, is amended to read: 
  4.33     Subdivision 1.  (a) Except as provided in paragraphs (b)~~,~~ 
  4.34  ~~(c), and (d)~~ to (e), all revenues, including interest and 
  4.35  penalties, derived from the excise and use taxes imposed by 
  4.36  sections 297A.01 to 297A.44 shall be deposited by the 
  5.1   commissioner in the state treasury and credited to the general 
  5.2   fund.  
  5.3      (b) All excise and use taxes derived from sales and use of 
  5.4   property and services purchased for the construction and 
  5.5   operation of an agricultural resource project, from and after 
  5.6   the date on which a conditional commitment for a loan guaranty 
  5.7   for the project is made pursuant to section 41A.04, subdivision 
  5.8   3, shall be deposited in the Minnesota agricultural and economic 
  5.9   account in the special revenue fund.  The commissioner of 
  5.10  finance shall certify to the commissioner the date on which the 
  5.11  project received the conditional commitment.  The amount 
  5.12  deposited in the loan guaranty account shall be reduced by any 
  5.13  refunds and by the costs incurred by the department of revenue 
  5.14  to administer and enforce the assessment and collection of the 
  5.15  taxes.  
  5.16     (c) All revenues, including interest and penalties, derived 
  5.17  from the excise and use taxes imposed on sales and purchases 
  5.18  included in section 297A.01, subdivision 3, paragraphs (d) and 
  5.19  (l), clauses (1) and (2), must be deposited by the commissioner 
  5.20  in the state treasury, and credited as follows: 
  5.21     (1) first to the general obligation special tax bond debt 
  5.22  service account in each fiscal year the amount required by 
  5.23  section 16A.661, subdivision 3, paragraph (b); and 
  5.24     (2) after the requirements of clause (1) have been met, the 
  5.25  balance must be credited to the general fund. 
  5.26     (d) The revenues, including interest and penalties, derived 
  5.27  from the taxes imposed on solid waste collection services as 
  5.28  described in section 297A.45, except for the tax imposed under 
  5.29  section 297A.021, shall be deposited by the commissioner in the 
  5.30  state treasury and credited to the general fund to be used for 
  5.31  funding solid waste reduction and recycling programs. 
  5.32     (e) The revenues, including interest and penalties, derived 
  5.33  from imposing a rate of three percent on sales of intoxicating 
  5.34  liquor and 3.2 percent malt liquor that are taxable under 
  5.35  section 297A.02, subdivision 3, shall be deposited in the state 
  5.36  treasury and credited as follows: 
  6.1      (1) $....... to the consolidated chemical dependency 
  6.2   treatment account created in section 254B.02, subdivision 1, to 
  6.3   be used to fund services to persons eligible under section 
  6.4   254B.04, subdivision 1, paragraphs (b) and (c); 
  6.5      (2) $....... to the health care access fund; and 
  6.6      (3) $....... to the general fund to be used for emergency 
  6.7   shelter services and services to battered women and children. 
  6.8      Sec. 5.  [REPEALER.] 
  6.9      Minnesota Statutes 1994, section 254B.04, subdivision 3, is 
  6.10  repealed. 
  6.11     Sec. 6.  [EFFECTIVE DATE.] 
  6.12     Sections 1 to 5 are effective July 1, 1996.