Bill Text: MN HF885 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Tax rates under the alcoholic beverage excise tax increased, alcohol health and judicial impact fund established, deposit of revenues and funding provided, and money appropriated.
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced - Dead) 2013-04-10 - Author added Dehn, R. [HF885 Detail]
Download: Minnesota-2013-HF885-Introduced.html
1.2relating to taxation; increasing the tax rates under the alcoholic beverage excise
1.3taxes; establishing an alcohol health and judicial impact fund; providing for
1.4deposit of revenues; appropriating money;amending Minnesota Statutes 2012,
1.5sections 297G.03, subdivision 1; 297G.04; 297G.10; proposing coding for new
1.6law in Minnesota Statutes, chapter 16A.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [16A.728] ALCOHOL HEALTH AND JUDICIAL IMPACT FUND.
1.9 Subdivision 1. Alcohol health and judicial impact fund. (a) An alcohol health
1.10and judicial impact fund is created in the state treasury. The revenues from the alcoholic
1.11beverage excise tax under chapter 297G, as provided in section 297G.10, must be credited
1.12to the fund.
1.13(b) Money in the fund may be expended, as appropriated by law, for state and local
1.14government budget costs attributable to alcohol and controlled substance use. One-half of
1.15the money in the fund is intended to be used for judicial and other public safety-related
1.16costs and one-half for treatment and supportive services.
1.17 Subd. 2. Certified alcohol expenditures. By April 30 of each fiscal year, the
1.18commissioners of public safety, corrections, and human services shall certify to the
1.19commissioner of management and budget the state budget costs attributable to alcohol use
1.20for the previous fiscal year. These costs include, but are not limited to, costs to:
1.21(1) enforce laws for driving while impaired;
1.22(2) employ law enforcement officers to increase efforts for targeting crime for
1.23driving while impaired;
1.24(3) fund grants to local units of government to conduct compliance checks for
1.25on-sale and off-sale intoxicating liquor holders;
2.1(4) fund community policing grants;
2.2(5) fund grants to prevent domestic violence and to provide services to victims of
2.3domestic violence;
2.4(6) incarcerate offenders of driving while impaired laws and provide programs
2.5for these offenders;
2.6(7) pay costs associated with incarcerating offenders and provide programs for
2.7these offenders;
2.8(8) fund grants to counties to establish and operate intensive probation programs for
2.9repeat impaired driving offenders;
2.10(9) increase chemical dependency treatment programs at state prisons;
2.11(10) provide chemical dependency treatment, including supportive housing, job
2.12training, and childcare for individuals during and following their treatment;
2.13(11) fund health and human services program costs;
2.14(12) fund increased judicial training relating to judicial powers and duties regarding
2.15chemical use assessments;
2.16(13) fund grants to counties for court services and correctional costs related to
2.17conducting chemical use assessments; and
2.18(14) fund education and crime prevention initiatives.
2.19 Subd. 3. Transfer. By June 1 of each fiscal year, the commissioner of management
2.20and budget shall transfer from the alcohol health and judicial impact fund to the general
2.21fund the excess, if any, for the previous fiscal year of:
2.22(1) the amount of expenditures certified under subdivision 1; over
2.23(2) net revenues derived from:
2.24(i) the taxes imposed under sections 295.75, 297G.03, and 297G.04; and
2.25(ii) increased collections of sales taxes imposed under chapter 297A that result from
2.26imposition of the taxes enumerated in item (i), as estimated by the commissioner of revenue.
2.27EFFECTIVE DATE.This section is effective July 1, 2013.
2.28 Sec. 2. Minnesota Statutes 2012, section 297G.03, subdivision 1, is amended to read:
2.29 Subdivision 1. General rate; distilled spirits and wine. The following excise tax is
2.30imposed on all distilled spirits and wine manufactured, imported, sold, or possessed in
2.31this state:
3.19In computing the tax on a package of distilled spirits or wine, a proportional tax at a
3.20like rate on all fractional parts of a gallon or liter must be paid, except that the tax on a
3.21fractional part of a gallon less than 1/16 of a gallon is the same as for 1/16 of a gallon.
3.22EFFECTIVE DATE.This section is effective July 1, 2013.
3.23 Sec. 3. Minnesota Statutes 2012, section 297G.04, is amended to read:
3.24297G.04 FERMENTED MALT BEVERAGES; RATE OF TAX.
3.25 Subdivision 1. Tax imposed. The following excise tax is imposed on all fermented
3.26malt beverages that are imported, directly or indirectly sold, or possessed in this state:
3.27(1) on fermented malt beverages containing not more than 3.2 percent alcohol by
3.28weight,$2.40 $13.97 per 31-gallon barrel; and
3.29(2) on fermented malt beverages containing more than 3.2 percent alcohol by
3.30weight,$4.60 $16.17 per 31-gallon barrel.
3.31For fractions of a 31-gallon barrel, the tax rate is calculated proportionally.
3.32 Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages is
3.33entitled to a tax credit of$4.60 $16.17 per barrel on 25,000 barrels sold in any fiscal year
3.34beginning July 1, regardless of the alcohol content of the product. Qualified brewers may
3.35take the credit on the 18th day of each month, but the total credit allowed may not exceed
3.36in any fiscal year the lesser of:
3.37(1) the liability for tax; or
3.38(2)$115,000 $404,250.
4.1For purposes of this subdivision, a "qualified brewer" means a brewer, whether
4.2or not located in this state, manufacturing less than 100,000 barrels of fermented malt
4.3beverages in the calendar year immediately preceding the calendar year for which the
4.4credit under this subdivision is claimed. In determining the number of barrels, all brands
4.5or labels of a brewer must be combined. All facilities for the manufacture of fermented
4.6malt beverages owned or controlled by the same person, corporation, or other entity
4.7must be treated as a single brewer.
4.8EFFECTIVE DATE.This section is effective July 1, 2013.
4.9 Sec. 4. Minnesota Statutes 2012, section 297G.10, is amended to read:
4.10297G.10 DEPOSIT OF PROCEEDS.
4.11All tax revenues and other receipts payable to the state under this chapter must be
4.12paid into the state treasury and credited to the general fund, except the net revenues and
4.13other receipts attributable to the increases imposed by sections 2 and 3 of this act must be
4.14deposited in the alcohol health and judicial impact fund under section 16A.728.
4.15EFFECTIVE DATE.This section is effective July 1, 2013.
4.16 Sec. 5. APPROPRIATIONS.
4.17 (a) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
4.18ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund
4.19to the commissioner of public safety. Of these amounts:
4.20 (1) $....... the first year and $....... the second year are for grants to local units of
4.21government to conduct compliance checks for on-sale and off-sale intoxicating liquor
4.22license holders to determine whether the license holder is complying with Minnesota
4.23Statutes, section340A.503 ;
4.24 (2) $....... the first year and $....... the second year are for grants to prevent domestic
4.25violence and to provide services to victims of domestic violence; and
4.26(3) $....... for the biennium for the repeat DUI offender pilot program.
4.27 (b) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
4.28ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund to
4.29the commissioner of human services. Of these amounts:
4.30 (1) $....... the first year and $....... the second year are for the purpose of fully funding
4.31Minnesota Statutes, section 254B.04, subdivision 1. This appropriation must become part
4.32of the base appropriation for this program;
5.1(2) $....... the first year and $....... the second year to fund the chemical dependency
5.2treatment requirements under Minnesota Statutes, section 254B.03;
5.3(3) $....... for the biennium for care coordination related to chemical use assessments
5.4under Minnesota Statutes, section 254A.19;
5.5(4) $....... for the biennium for basic sliding fee child care assistance; and
5.6(5) $....... for the biennium to be transferred to the Board of Behavioral Health and
5.7Therapy under Minnesota Statutes, chapter 148F, to hire staff to conduct timely licensing
5.8of counselors.
5.9 (c) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
5.10ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund to
5.11the chief justice of the Supreme Court. Of these amounts:
5.12 (1) $....... the first year and $....... the second year are for the increased judicial
5.13training;
5.14(2) $....... the first year and $....... the second year to counties for drug courts; and
5.15 (3) $....... the first year and $....... the second year are for grants to counties for court
5.16services and correctional costs related to conducting chemical use assessments.
5.17 (d) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
5.18ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund to
5.19the commissioner of health. Of these amounts, $....... the first year and $....... the second
5.20year are for grants to public health for education and prevention initiatives designed
5.21to eliminate underage drinking.
5.22 (e) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
5.23ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund to
5.24the commissioner of the Housing Finance Agency for supportive housing.
5.25 (f) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
5.26ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund to
5.27the commissioner of employment and economic development to provide job training.
1.3taxes; establishing an alcohol health and judicial impact fund; providing for
1.4deposit of revenues; appropriating money;amending Minnesota Statutes 2012,
1.5sections 297G.03, subdivision 1; 297G.04; 297G.10; proposing coding for new
1.6law in Minnesota Statutes, chapter 16A.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [16A.728] ALCOHOL HEALTH AND JUDICIAL IMPACT FUND.
1.9 Subdivision 1. Alcohol health and judicial impact fund. (a) An alcohol health
1.10and judicial impact fund is created in the state treasury. The revenues from the alcoholic
1.11beverage excise tax under chapter 297G, as provided in section 297G.10, must be credited
1.12to the fund.
1.13(b) Money in the fund may be expended, as appropriated by law, for state and local
1.14government budget costs attributable to alcohol and controlled substance use. One-half of
1.15the money in the fund is intended to be used for judicial and other public safety-related
1.16costs and one-half for treatment and supportive services.
1.17 Subd. 2. Certified alcohol expenditures. By April 30 of each fiscal year, the
1.18commissioners of public safety, corrections, and human services shall certify to the
1.19commissioner of management and budget the state budget costs attributable to alcohol use
1.20for the previous fiscal year. These costs include, but are not limited to, costs to:
1.21(1) enforce laws for driving while impaired;
1.22(2) employ law enforcement officers to increase efforts for targeting crime for
1.23driving while impaired;
1.24(3) fund grants to local units of government to conduct compliance checks for
1.25on-sale and off-sale intoxicating liquor holders;
2.1(4) fund community policing grants;
2.2(5) fund grants to prevent domestic violence and to provide services to victims of
2.3domestic violence;
2.4(6) incarcerate offenders of driving while impaired laws and provide programs
2.5for these offenders;
2.6(7) pay costs associated with incarcerating offenders and provide programs for
2.7these offenders;
2.8(8) fund grants to counties to establish and operate intensive probation programs for
2.9repeat impaired driving offenders;
2.10(9) increase chemical dependency treatment programs at state prisons;
2.11(10) provide chemical dependency treatment, including supportive housing, job
2.12training, and childcare for individuals during and following their treatment;
2.13(11) fund health and human services program costs;
2.14(12) fund increased judicial training relating to judicial powers and duties regarding
2.15chemical use assessments;
2.16(13) fund grants to counties for court services and correctional costs related to
2.17conducting chemical use assessments; and
2.18(14) fund education and crime prevention initiatives.
2.19 Subd. 3. Transfer. By June 1 of each fiscal year, the commissioner of management
2.20and budget shall transfer from the alcohol health and judicial impact fund to the general
2.21fund the excess, if any, for the previous fiscal year of:
2.22(1) the amount of expenditures certified under subdivision 1; over
2.23(2) net revenues derived from:
2.24(i) the taxes imposed under sections 295.75, 297G.03, and 297G.04; and
2.25(ii) increased collections of sales taxes imposed under chapter 297A that result from
2.26imposition of the taxes enumerated in item (i), as estimated by the commissioner of revenue.
2.27EFFECTIVE DATE.This section is effective July 1, 2013.
2.28 Sec. 2. Minnesota Statutes 2012, section 297G.03, subdivision 1, is amended to read:
2.29 Subdivision 1. General rate; distilled spirits and wine. The following excise tax is
2.30imposed on all distilled spirits and wine manufactured, imported, sold, or possessed in
2.31this state:
3.19In computing the tax on a package of distilled spirits or wine, a proportional tax at a
3.20like rate on all fractional parts of a gallon or liter must be paid, except that the tax on a
3.21fractional part of a gallon less than 1/16 of a gallon is the same as for 1/16 of a gallon.
3.22EFFECTIVE DATE.This section is effective July 1, 2013.
3.23 Sec. 3. Minnesota Statutes 2012, section 297G.04, is amended to read:
3.24297G.04 FERMENTED MALT BEVERAGES; RATE OF TAX.
3.25 Subdivision 1. Tax imposed. The following excise tax is imposed on all fermented
3.26malt beverages that are imported, directly or indirectly sold, or possessed in this state:
3.27(1) on fermented malt beverages containing not more than 3.2 percent alcohol by
3.28weight,
3.29(2) on fermented malt beverages containing more than 3.2 percent alcohol by
3.30weight,
3.31For fractions of a 31-gallon barrel, the tax rate is calculated proportionally.
3.32 Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages is
3.33entitled to a tax credit of
3.34beginning July 1, regardless of the alcohol content of the product. Qualified brewers may
3.35take the credit on the 18th day of each month, but the total credit allowed may not exceed
3.36in any fiscal year the lesser of:
3.37(1) the liability for tax; or
3.38(2)
4.1For purposes of this subdivision, a "qualified brewer" means a brewer, whether
4.2or not located in this state, manufacturing less than 100,000 barrels of fermented malt
4.3beverages in the calendar year immediately preceding the calendar year for which the
4.4credit under this subdivision is claimed. In determining the number of barrels, all brands
4.5or labels of a brewer must be combined. All facilities for the manufacture of fermented
4.6malt beverages owned or controlled by the same person, corporation, or other entity
4.7must be treated as a single brewer.
4.8EFFECTIVE DATE.This section is effective July 1, 2013.
4.9 Sec. 4. Minnesota Statutes 2012, section 297G.10, is amended to read:
4.10297G.10 DEPOSIT OF PROCEEDS.
4.11All tax revenues and other receipts payable to the state under this chapter must be
4.12paid into the state treasury and credited to the general fund, except the net revenues and
4.13other receipts attributable to the increases imposed by sections 2 and 3 of this act must be
4.14deposited in the alcohol health and judicial impact fund under section 16A.728.
4.15EFFECTIVE DATE.This section is effective July 1, 2013.
4.16 Sec. 5. APPROPRIATIONS.
4.17 (a) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
4.18ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund
4.19to the commissioner of public safety. Of these amounts:
4.20 (1) $....... the first year and $....... the second year are for grants to local units of
4.21government to conduct compliance checks for on-sale and off-sale intoxicating liquor
4.22license holders to determine whether the license holder is complying with Minnesota
4.23Statutes, section
4.24 (2) $....... the first year and $....... the second year are for grants to prevent domestic
4.25violence and to provide services to victims of domestic violence; and
4.26(3) $....... for the biennium for the repeat DUI offender pilot program.
4.27 (b) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
4.28ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund to
4.29the commissioner of human services. Of these amounts:
4.30 (1) $....... the first year and $....... the second year are for the purpose of fully funding
4.31Minnesota Statutes, section 254B.04, subdivision 1. This appropriation must become part
4.32of the base appropriation for this program;
5.1(2) $....... the first year and $....... the second year to fund the chemical dependency
5.2treatment requirements under Minnesota Statutes, section 254B.03;
5.3(3) $....... for the biennium for care coordination related to chemical use assessments
5.4under Minnesota Statutes, section 254A.19;
5.5(4) $....... for the biennium for basic sliding fee child care assistance; and
5.6(5) $....... for the biennium to be transferred to the Board of Behavioral Health and
5.7Therapy under Minnesota Statutes, chapter 148F, to hire staff to conduct timely licensing
5.8of counselors.
5.9 (c) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
5.10ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund to
5.11the chief justice of the Supreme Court. Of these amounts:
5.12 (1) $....... the first year and $....... the second year are for the increased judicial
5.13training;
5.14(2) $....... the first year and $....... the second year to counties for drug courts; and
5.15 (3) $....... the first year and $....... the second year are for grants to counties for court
5.16services and correctional costs related to conducting chemical use assessments.
5.17 (d) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
5.18ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund to
5.19the commissioner of health. Of these amounts, $....... the first year and $....... the second
5.20year are for grants to public health for education and prevention initiatives designed
5.21to eliminate underage drinking.
5.22 (e) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
5.23ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund to
5.24the commissioner of the Housing Finance Agency for supportive housing.
5.25 (f) $....... for the fiscal year ending June 30, 2014, and $....... for the fiscal year
5.26ending June 30, 2015, are appropriated from the alcohol health and judicial impact fund to
5.27the commissioner of employment and economic development to provide job training.
