1.1                          A bill for an act
  1.2             relating to taxation; sales and use; increasing the 
  1.3             tax on certain liquor and beer sales; allocating a 
  1.4             portion of the revenue to chemical dependency 
  1.5             treatment; amending Minnesota Statutes 1994, sections 
  1.6             254B.02, subdivision 1; 297A.02, subdivision 3; and 
  1.7             297A.44, subdivision 1. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 254B.02, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
  1.12  The chemical dependency funds appropriated for allocation shall 
  1.13  be placed in a special revenue account.  The commissioner of 
  1.14  revenue shall also credit to this account all amounts allocated 
  1.15  for this purpose under section 297A.44, subdivision 1.  All 
  1.16  amounts credited by the commissioner of revenue are annually 
  1.17  appropriated to the commissioner of human services for the 
  1.18  purposes of sections 254B.01 to 254B.09.  For the fiscal year 
  1.19  beginning July 1, 1987, funds shall be transferred to operate 
  1.20  the vendor payment, invoice processing, and collections system 
  1.21  for one year.  The commissioner shall annually transfer funds 
  1.22  from the chemical dependency fund to pay for operation of the 
  1.23  drug and alcohol abuse normative evaluation system and to pay 
  1.24  for all costs incurred by adding two positions for licensing of 
  1.25  chemical dependency treatment and rehabilitation programs 
  1.26  located in hospitals for which funds are not otherwise 
  2.1   appropriated.  The commissioner shall annually divide the money 
  2.2   available in the chemical dependency fund that is not held in 
  2.3   reserve by counties from a previous allocation.  Twelve percent 
  2.4   of the remaining money must be reserved for treatment of 
  2.5   American Indians by eligible vendors under section 254B.05.  The 
  2.6   remainder of the money must be allocated among the counties 
  2.7   according to the following formula, using state demographer data 
  2.8   and other data sources determined by the commissioner: 
  2.9      (a) The county non-Indian and over age 14 per capita-months 
  2.10  of eligibility for aid to families with dependent children, 
  2.11  general assistance, and medical assistance is divided by the 
  2.12  total state non-Indian and over age 14 per capita-months of 
  2.13  eligibility to determine the caseload factor for each county. 
  2.14     (b) The average median married couple income for the 
  2.15  previous three years for the state is divided by the average 
  2.16  median married couple income for the previous three years for 
  2.17  each county to determine the income factor.  
  2.18     (c) The non-Indian and over age 14 population of the county 
  2.19  is multiplied by the sum of the income factor and the caseload 
  2.20  factor to determine the adjusted population.  
  2.21     (d) $15,000 shall be allocated to each county.  
  2.22     (e) The remaining funds shall be allocated proportional to 
  2.23  the county adjusted population. 
  2.24     Sec. 2.  Minnesota Statutes 1994, section 297A.02, 
  2.25  subdivision 3, is amended to read: 
  2.26     Subd. 3.  [LIQUOR AND BEER SALES.] Notwithstanding the 
  2.27  provisions of subdivision 1, the rate of the excise tax imposed 
  2.28  upon sales of intoxicating liquor, as defined in section 
  2.29  340A.101, subdivision 14, and 3.2 percent malt liquor, as 
  2.30  defined in section 340A.101, subdivision 19, shall be nine 
  2.31  percent.  An additional tax, at the rate of two percent, shall 
  2.32  be imposed on all on-sale sales of intoxicating liquor and 3.2 
  2.33  percent malt liquor as defined in section 340A.101, subdivision 
  2.34  21.  The 3.2 percent malt liquor is subject to taxation under 
  2.35  this subdivision only when sold at an on-sale or off-sale 
  2.36  municipal liquor store or other establishment licensed to sell 
  3.1   any type of intoxicating liquor.  
  3.2      Sec. 3.  Minnesota Statutes 1994, section 297A.44, 
  3.3   subdivision 1, is amended to read: 
  3.4      Subdivision 1.  (a) Except as provided in paragraphs (b), 
  3.5   (c), and (d), and (e), all revenues, including interest and 
  3.6   penalties, derived from the excise and use taxes imposed by 
  3.7   sections 297A.01 to 297A.44 shall be deposited by the 
  3.8   commissioner in the state treasury and credited to the general 
  3.9   fund.  
  3.10     (b) All excise and use taxes derived from sales and use of 
  3.11  property and services purchased for the construction and 
  3.12  operation of an agricultural resource project, from and after 
  3.13  the date on which a conditional commitment for a loan guaranty 
  3.14  for the project is made pursuant to section 41A.04, subdivision 
  3.15  3, shall be deposited in the Minnesota agricultural and economic 
  3.16  account in the special revenue fund.  The commissioner of 
  3.17  finance shall certify to the commissioner the date on which the 
  3.18  project received the conditional commitment.  The amount 
  3.19  deposited in the loan guaranty account shall be reduced by any 
  3.20  refunds and by the costs incurred by the department of revenue 
  3.21  to administer and enforce the assessment and collection of the 
  3.22  taxes.  
  3.23     (c) All revenues, including interest and penalties, derived 
  3.24  from the excise and use taxes imposed on sales and purchases 
  3.25  included in section 297A.01, subdivision 3, paragraphs (d) and 
  3.26  (l), clauses (1) and (2), must be deposited by the commissioner 
  3.27  in the state treasury, and credited as follows: 
  3.28     (1) first to the general obligation special tax bond debt 
  3.29  service account in each fiscal year the amount required by 
  3.30  section 16A.661, subdivision 3, paragraph (b); and 
  3.31     (2) after the requirements of clause (1) have been met, the 
  3.32  balance must be credited to the general fund. 
  3.33     (d) The revenues, including interest and penalties, derived 
  3.34  from the taxes imposed on solid waste collection services as 
  3.35  described in section 297A.45, except for the tax imposed under 
  3.36  section 297A.021, shall be deposited by the commissioner in the 
  4.1   state treasury and credited to the general fund to be used for 
  4.2   funding solid waste reduction and recycling programs. 
  4.3      (e) The revenues, including interest and penalties, derived 
  4.4   from imposing the additional tax at the rate of two percent, on 
  4.5   all on-sale sales of intoxicating liquor and 3.2 percent malt 
  4.6   liquor, under section 297A.02, subdivision 3, shall be deposited 
  4.7   by the commissioner in the state treasury and credited to the 
  4.8   general fund to be used for funding chemical dependency 
  4.9   treatment under section 254B.02, subdivision 1. 
  4.10     Sec. 4.  [EFFECTIVE DATE.] 
  4.11     Sections 2 and 3 are effective for sales made after June 
  4.12  30, 1995.