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HF 2285

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to constitutional amendments; proposing an amendment to the Minnesota
Constitution, article XI; increasing the sales tax rate by three-eighths of one
percent and dedicating the receipts for natural resource and cultural heritage
purposes; creating a natural heritage fund; creating a parks and trails fund;
creating a clean water fund; creating a sustainable drinking water fund; creating
an arts and cultural heritage fund; establishing the Natural Heritage Enhancement
Council; providing for appointments; amending Minnesota Statutes 2006,
sections 114D.20, subdivision 6; 114D.30, subdivision 6; 114D.45; 297A.62,
subdivision 1; 297A.94; 297B.02, subdivision 1; proposing coding for new law
in Minnesota Statutes, chapters 85; 97A; 103H; 129D.

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

Section 1. new text begin CONSTITUTIONAL AMENDMENT.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the
amendment is adopted, a section will be added to article XI, to read:
new text end

new text begin Sec. 15.new text end

new text begin Beginning July 1, 2009, until June 30, 2034, the sales and use tax rate shall be
increased by three-eighths of one percent on sales and uses taxable under the general state
sales and use tax law. Receipts from the increase, plus penalties and interest and reduced
by any refunds, are dedicated to the following funds: at least 25 percent of the receipts
shall be deposited in the natural heritage fund and may be spent only to restore, preserve,
and enhance fish and wildlife habitat and other natural resources; at least 25 percent of the
receipts shall be deposited in the clean water fund and may be spent only to protect and
restore the state's lakes, rivers, streams, wetlands, and groundwater; at least 15 percent
of the receipts shall be deposited in the parks and trails fund and may be spent only to
support the state's parks and trails; at least 15 percent of the receipts shall be deposited in
the sustainable drinking water fund and may be spent only to protect the state's drinking
water sources; and at least ten percent shall be deposited in the arts and cultural heritage
fund and may be spent only for arts and cultural heritage purposes. Up to ten percent of
the remaining funds shall be divided by law among the funds created in this section. A
natural heritage fund; a parks and trails fund; a clean water fund; a sustainable drinking
water fund; and an arts and cultural heritage fund are created in the state treasury. The
money dedicated under this section shall be appropriated by law. The dedicated money
under this section must supplement traditional sources of funding for these purposes and
may not be used as a substitute. Land acquired by fee with money deposited in the natural
heritage fund under this section must be open to public taking of fish and game during the
open season unless otherwise provided by law.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The proposed amendment must be submitted to the people in the 2008 general
election. The question submitted shall be:
new text end

new text begin "Shall the Minnesota Constitution be amended to provide funding beginning July
1, 2009, to restore, preserve, and enhance the state's fish and wildlife habitat and other
natural resources; to protect the state's drinking water sources; to protect and restore the
state's lakes, rivers, streams, wetlands and groundwater; to support the state's parks and
trails; and to support the arts and cultural heritage of the state by increasing the sales and
use tax rate by three-eighths of one percent on taxable sales until the year 2034?
new text end

new text begin Yes .......
new text end
new text begin No ......."
new text end

Sec. 3.

new text begin [85.0195] PARKS AND TRAILS FUNDS; EXPENDITURES.
new text end

new text begin Subdivision 1. new text end

new text begin Fund. new text end

new text begin The parks and trails fund is established in the Minnesota
Constitution, article XI, section 15. All money earned by the parks and trails fund must
be credited to the fund.
new text end

new text begin Subd. 2. new text end

new text begin Expenditures. new text end

new text begin Money in the parks and trails fund may be spent only on
state and regional parks and trails subject to appropriation by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional
amendment proposed in section 1 is adopted by the voters.
new text end

Sec. 4.

new text begin [97A.056] NATURAL HERITAGE FUND; NATURAL HERITAGE
ENHANCEMENT COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Natural heritage fund. new text end

new text begin (a) The natural heritage fund is established
in the Minnesota Constitution, article XI, section 15. All money earned by the heritage
fund must be credited to the fund. At least 97 percent of the money appropriated from the
fund must be spent to restore, preserve, and enhance the state's fish and wildlife habitat
and other natural resources.
new text end

new text begin (b) Lands acquired in fee by appropriations from this fund are subject to the payment
in lieu of tax as provided in section 477A.12, subdivision 1, paragraph (a), clause (1).
new text end

new text begin Subd. 2. new text end

new text begin Natural Heritage Advisory Council. new text end

new text begin (a) A Natural Heritage Advisory
Council of 16 members is created in the legislative branch, consisting of:
new text end

new text begin (1) three members of the senate appointed by the senate Subcommittee on
Committees of the Committee on Rules and Administration;
new text end

new text begin (2) three members of the house of representatives appointed by the speaker of the
house;
new text end

new text begin (3) three public members appointed by the senate Subcommittee on Committees of
the Committee on Rules and Administration;
new text end

new text begin (4) three public members appointed by the speaker of the house; and
new text end

new text begin (5) four public members appointed by the governor.
new text end

new text begin (b) One member from the senate and one member from the house of representatives
must be from the minority caucus.
new text end

new text begin (c) In making appointments to the council, appointing authorities must consider
geographic balance. Appointments to the advisory council shall be made by February
1, 2009.
new text end

new text begin (d) Legislative members are entitled to reimbursement for per diem expenses plus
travel expenses incurred in the services of the council. The removal and, beginning July 1,
2009, the compensation of public members is as provided in section 15.0575.
new text end

new text begin (e) The first meeting of the advisory council shall be convened by the chair of the
Legislative Coordinating Commission. Members must elect a chair, vice chair, secretary,
and other officers as determined by the majority vote of the council. The chair may
convene meetings as necessary to conduct the duties prescribed by this section.
new text end

new text begin (f) Public membership terms are coterminous with the appointing authority and
legislative membership terms are at the pleasure of the appointing authority, except that
members shall serve on the advisory council until their successors are appointed.
new text end

new text begin (g) Vacancies occurring on the advisory council do not affect the authority of the
remaining members of the advisory council to carry out their duties. Vacancies shall be
filled in the same manner as under paragraph (a).
new text end

new text begin Subd. 3. new text end

new text begin Duties of council. new text end

new text begin The council must recommend advisory expenditures
from the natural heritage fund to the legislature and the governor.
new text end

new text begin Subd. 4. new text end

new text begin Open meetings. new text end

new text begin (a) Meetings of the advisory council must be open to the
public. Except where prohibited by law, the advisory council must create additional
processes to ensure full public participation in all aspects of its work. For the purposes of
this subdivision, a meeting occurs when a quorum is present and action is taken regarding
a matter within the council's jurisdiction.
new text end

new text begin (b) For legislative members of the council, enforcement of this subdivision is
governed by section 3.055, subdivision 2. For nonlegislative members of the council,
enforcement of this subdivision is governed by section 13D.06, subdivisions 1 and 2.
new text end

new text begin Subd. 5. new text end

new text begin Advisory council expiration. new text end

new text begin Subdivisions 2 to 4 expire on June 30, 2013,
unless extended by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective November 15, 2008, if the
constitutional amendment proposed in section 1 is adopted by the voters.
new text end

Sec. 5.

new text begin [103H.285] SUSTAINABLE DRINKING WATER FUND.
new text end

new text begin A sustainable drinking water fund is established in the Minnesota Constitution,
article XI, section 15. All money earned by the sustainable drinking water fund must be
credited to the fund. At least 97 percent of the money appropriated from the fund must
be spent to protect the state's drinking water sources including, but not limited to, well
monitoring and cleanup, wellhead and source protection, the state match for available
federal dollars, and groundwater protection according to law.
new text end

Sec. 6.

Minnesota Statutes 2006, section 114D.20, subdivision 6, is amended to read:


Subd. 6.

Priorities for restoration of impaired waters.

In implementing
restoration of impaired waters, in addition to the priority considerations in subdivision 5,
the Clean Water Council deleted text begin shalldeleted text end new text begin mustnew text end give priority in its recommendations for restoration
funding from the clean water deleted text begin legacy accountdeleted text end new text begin fund new text end to restoration projects that:

(1) coordinate with and deleted text begin utilizedeleted text end new text begin usenew text end existing local authorities and infrastructure for
implementation;

(2) can be implemented in whole or in part by providing support for existing or
ongoing restoration efforts;

(3) most effectively leverage other sources of restoration funding, including federal,
state, local, and private sources of funds;

(4) show a high potential for early restoration and delisting based upon scientific
data developed through public agency or citizen monitoring or other means; and

(5) show a high potential for long-term water quality and related conservation
benefits.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional
amendment proposed in section 1 is adopted by the voters.
new text end

Sec. 7.

Minnesota Statutes 2006, section 114D.30, subdivision 6, is amended to read:


Subd. 6.

Recommendations on appropriation of funds.

The Clean Water Council
deleted text begin shalldeleted text end new text begin mustnew text end recommend to the governor the manner in which money from the clean water
deleted text begin legacy accountdeleted text end new text begin fund new text end should be appropriated for the purposes identified in section 114D.45,
subdivision 3. The council's recommendations must be consistent with the purposes,
policies, goals, and priorities in sections 114D.05 to 114D.35, and deleted text begin shalldeleted text end new text begin mustnew text end allocate
adequate support and resources to identify impaired waters, develop TMDL's, implement
restoration of impaired waters, and provide assistance and incentives to prevent waters
from becoming impaired and improve the quality of waters which are listed as impaired
but have no approved TMDL. The council must recommend methods of ensuring that
awards of grants, loans, or other funds from the clean water deleted text begin legacy accountdeleted text end new text begin fund new text end specify
the outcomes to be achieved as a result of the funding and specify standards to hold the
recipient accountable for achieving the desired outcomes. Expenditures from the account
must be appropriated by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional
amendment proposed in section 1 is adopted by the voters.
new text end

Sec. 8.

Minnesota Statutes 2006, section 114D.45, is amended to read:


114D.45 CLEAN WATER deleted text begin LEGACY ACCOUNTdeleted text end new text begin FUNDnew text end .

Subdivision 1.

Creation.

The clean water deleted text begin legacy accountdeleted text end new text begin fundnew text end is deleted text begin created as an
account in the environmental fund
deleted text end new text begin established in the Minnesota Constitution, article XI,
section 15
new text end . Money in the deleted text begin accountdeleted text end new text begin fundnew text end must be made available for the implementation
of this chapter and sections 446A.073, 446A.074, and 446A.075, without supplanting or
taking the place of any other funds which are currently available or may become available
from any other source, whether federal, state, local, or private, for implementation of
those sections.

Subd. 2.

Sources of revenue.

The following revenues must be deposited in the
clean water deleted text begin legacy accountdeleted text end new text begin fundnew text end :

new text begin (1) money deposited in the fund as provided in the Minnesota Constitution, article
XI, section 15;
new text end

deleted text begin (1)deleted text end new text begin (2)new text end money transferred to the deleted text begin accountdeleted text end new text begin fundnew text end ; and

deleted text begin (2)deleted text end new text begin (3)new text end interest accrued on the deleted text begin accountdeleted text end new text begin fundnew text end .

Subd. 3.

Purposes.

Subject to appropriation by the legislature, the clean water
deleted text begin legacy accountdeleted text end new text begin fundnew text end may be spent for the following purposes:

(1) to provide grants, loans, and technical assistance to public agencies and others
who are participating in the process of identifying impaired waters, developing TMDL's,
implementing restoration plans for impaired waters, and monitoring the effectiveness
of restoration;

(2) to support measures to prevent waters from becoming impaired and to improve
the quality of waters that are listed as impaired but do not have an approved TMDL
addressing the impairment;

(3) to provide grants and loans for wastewater and storm water treatment projects
through the Public Facilities Authority;

(4) to support the efforts of public agencies associated with individual sewage
treatment systems and financial assistance for upgrading and replacing the systems; and

(5) to provide funds to state agencies to carry out their responsibilities under this
chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional
amendment proposed in section 1 is adopted by the voters.
new text end

Sec. 9.

new text begin [129D.17] ARTS AND CULTURAL HERITAGE FUND;
EXPENDITURES.
new text end

new text begin Subdivision 1. new text end

new text begin Fund. new text end

new text begin The arts and cultural heritage fund is established in the
Minnesota Constitution, article XI, section 15. All money earned by the fund must
be credited to the fund.
new text end

new text begin Subd. 2. new text end

new text begin Expenditures. new text end

new text begin Subject to appropriation, receipts in the fund must be spent
for arts activities and to support the cultural heritage of the state according to law.
new text end

Sec. 10.

Minnesota Statutes 2006, section 297A.62, subdivision 1, is amended to read:


Subdivision 1.

Generally.

new text begin (a) new text end Except as otherwise provided in subdivision 2 or 3
or in this chapter, a sales tax of 6.5 percent is imposed on the gross receipts from retail
sales as defined in section 297A.61, subdivision 4, made in this state or to a destination
in this state by a person who is required to have or voluntarily obtains a permit under
section 297A.83, subdivision 1.

new text begin (b) The increased rate required under the Minnesota Constitution, article XI, section
15, shall be added to the rate imposed under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional
amendment proposed in section 1 is adopted by the voters.
new text end

Sec. 11.

Minnesota Statutes 2006, section 297A.94, is amended to read:


297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this sectionnew text begin and the Minnesota Constitution, article XI,
section 15
new text end , the commissioner shall deposit the revenues, including interest and penalties,
derived from the taxes imposed by this chapter in the state treasury and credit them to the
general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for
the construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment
was made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of finance shall certify to the commissioner the date on which the
project received the conditional commitment. The amount deposited in the loan guaranty
account must be reduced by any refunds and by the costs incurred by the Department of
Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties,
derived from the taxes imposed on sales and purchases included in section 297A.61,
subdivision 3
, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general
fund.

(d) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5
, for the previous calendar year.

(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and
penalties, transmitted to the commissioner under section 297A.65, must be deposited by
the commissioner in the state treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund,
and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
Conservatory, and the Duluth Zoo.

(f) The revenue dedicated under paragraph (e) may not be used as a substitute
for traditional sources of funding for the purposes specified, but the dedicated revenue
shall supplement traditional sources of funding for those purposes. Land acquired with
money deposited in the game and fish fund under paragraph (e) must be open to public
hunting and fishing during the open season, except that in aquatic management areas or
on lands where angling easements have been acquired, fishing may be prohibited during
certain times of the year and hunting may be prohibited. At least 87 percent of the money
deposited in the game and fish fund for improvement, enhancement, or protection of fish
and wildlife resources under paragraph (e) must be allocated for field operations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional
amendment proposed in section 1 is adopted by the voters.
new text end

Sec. 12.

Minnesota Statutes 2006, section 297B.02, subdivision 1, is amended to read:


Subdivision 1.

Rate.

There is imposed an excise tax at the rate provided in deleted text begin chapter
297A
deleted text end new text begin section 297A.62, subdivision 1, paragraph (a),new text end on the purchase price of any motor
vehicle purchased or acquired, either in or outside of the state of Minnesota, which is
required to be registered under the laws of this state.

The excise tax is also imposed on the purchase price of motor vehicles purchased
or acquired on Indian reservations when the tribal council has entered into a sales tax on
motor vehicles refund agreement with the state of Minnesota.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, if the constitutional
amendment proposed in section 1 is adopted by the voters.
new text end