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HF 1467

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to natural resources; creating the Minnesota
Conservation Heritage Council; eliminating the
Legislative Commission on Minnesota Resources;
providing for disposition of certain revenues;
appropriating money; amending Minnesota Statutes 2004,
sections 116P.02, by adding a subdivision; 116P.03;
116P.04, subdivision 5; 116P.07; 116P.08, subdivisions
3, 5, 6, 7, by adding subdivisions; 116P.09; 116P.10;
116P.11; 116P.12, subdivision 2; 116P.15, subdivision
2; proposing coding for new law in Minnesota Statutes,
chapter 116P; repealing Minnesota Statutes 2004,
sections 116P.02, subdivision 2; 116P.05; 116P.06;
116P.061; 116P.07; 116P.08; 116P.09.

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

Section 1.

Minnesota Statutes 2004, section 116P.02, is
amended by adding a subdivision to read:


new text begin Subd. 4a. new text end

new text begin Council. new text end

new text begin "Council" means the Minnesota
Conservation Heritage Council.
new text end

Sec. 2.

Minnesota Statutes 2004, section 116P.03, is
amended to read:


116P.03 TRUST FUND NOT TO SUPPLANT EXISTING FUNDING.

deleted text begin (a) deleted text end The trust fund may not be used as a substitute for
traditional sources of funding environmental and natural
resources activities, but the trust fund shall supplement the
traditional sources, including those sources used to support the
criteria in section 116P.08, subdivision deleted text begin 1 deleted text end new text begin 1anew text end . The trust fund
must be used primarily to support activities whose benefits
become available only over an extended period of time.

deleted text begin (b) The commission must determine the amount of the state
budget spent from traditional sources to fund environmental and
natural resources activities before and after the trust fund is
established and include a comparison of the amount in the report
under section 116P.09, subdivision 7.
deleted text end

Sec. 3.

Minnesota Statutes 2004, section 116P.04,
subdivision 5, is amended to read:


Subd. 5.

Audits required.

The legislative auditor shall
audit trust fund expenditures to ensure that the money is spent
for the purposes provided in deleted text begin the commission's budget plan deleted text end new text begin the
Minnesota Constitution, article XI, section 14, and the
council's strategic plan developed under section 116P.08
new text end . new text begin In
addition, the legislative auditor shall audit the books and
records of the council on an annual basis under sections 3.971
and 3.972, subject to the resources of the legislative auditor,
to ensure that the expenditures and operations of the council
are consistent with the requirements of this chapter. The
legislative auditor may recoup the expenses for audits under
this subdivision from amounts available to the council under
section 116P.061, subdivision 6.
new text end

Sec. 4.

new text begin [116P.061] MINNESOTA CONSERVATION HERITAGE
COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin (a) The Minnesota
Conservation Heritage Council is created pursuant to section
15.012, paragraph (a), and is governed by a council of 11
members. The terms of members are six years and until their
successors have been appointed. Each member shall be appointed
by the governor with the advice and consent of the senate. Not
more than six members shall belong to the same political party.
The governor shall select at least one member from each
congressional district.
new text end

new text begin (b) To be eligible for appointment to the council, a
prospective member must: (1) demonstrate expertise and
experience in the science, policy, or practice of the
protection, conservation, preservation, and enhancement of the
state's air, water, land, fish, wildlife, and other natural
resources; and (2) not be a paid employee of an organization
whose primary mission is the protection, conservation,
preservation, and enhancement of natural resources. Prior
service on multimember boards with grant-making responsibilities
or prior experience in the management of a business enterprise
is also recommended.
new text end

new text begin (c) Except as provided in this section, the terms,
compensation, and removal of members and filling of vacancies on
the council shall be as provided in section 15.0575. A member
may be removed from the council upon a supermajority of eight
votes in favor of the removal of that member.
new text end

new text begin Subd. 2. new text end

new text begin Chair; vice chair. new text end

new text begin The governor shall select a
member to serve as chair for a term concurrent with that of the
governor. If a vacancy occurs in the position of chair, the
governor shall select a new chair to complete the unexpired
term. The chair shall be the principal executive officer of the
council and shall preside at meetings of the council. The chair
shall organize the work of the council and may make assignments
to members, appoint committees, and give direction to the
staff. The members of the council shall select a vice chair.
new text end

new text begin Subd. 3. new text end

new text begin Quorum. new text end

new text begin Except when otherwise specified, a
majority of the council shall constitute a quorum and the act or
decision of a majority of members present, if at least a quorum
is present, shall be the act or decision of the council. If a
vacancy exists on the council, a majority of the remaining
members constitutes a quorum. A supermajority of eight members
in favor is required for: (1) hiring or removing an executive
director for the council, if any; or (2) using funds for debt
service on bonds.
new text end

new text begin Subd. 4. new text end

new text begin Gifts. new text end

new text begin The council may accept and use grants of
money or property from the United States or other grantors for
any purpose pertaining to the activities of the council. Any
money or property so received is appropriated and dedicated for
the purposes for which it is granted and shall be expended or
used solely for such purposes according to federal laws and
regulations pertaining thereto, subject to applicable state laws
and rules as to manner of expenditure or use. The council may
make subgrants of any money received to other agencies, units of
local government, private individuals, private organizations,
and private nonprofit corporations. Appropriate funds and
accounts shall be maintained by the commissioner of finance to
comply with this section. Lands and interests in lands received
may be sold or exchanged according to chapter 94.
new text end

Sec. 5.

Minnesota Statutes 2004, section 116P.07, is
amended to read:


116P.07 INFORMATION GATHERING.

new text begin Subdivision 1. new text end

new text begin Public forums. new text end

The deleted text begin commission deleted text end new text begin council new text end may
convene public forums new text begin or employ other methods new text end to gather
information for establishing priorities for funding.

new text begin Subd. 2. new text end

new text begin Technical advisory committee. new text end

new text begin The council shall
make use of available expertise from educational, research, and
technical organizations, and state and federal environmental
agencies, including the University of Minnesota and other higher
education institutions, to provide appropriate independent
expert advice on identifying natural resource priorities during
development of the strategic plan provided for in section
116P.08. The technical advisory committee shall also review
funding proposals and advise the council on funding
recommendations. The council shall appoint the technical
advisory committee and designate a chair. Compensation of
advisory committee members is governed by section 15.059,
subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin State agency long-term priorities. new text end

new text begin State
agencies with environmental programs and responsibilities shall
submit long-term priorities based on agency plans to the
council. The council may integrate agency long-term priorities
into the development of its strategic plan as provided for in
section 116P.08.
new text end

new text begin Subd. 4. new text end

new text begin Public priorities. new text end

new text begin The council shall ask
conservation and environmental organizations to submit their
long-term priorities and plans to the council, which may be
integrated into the council's strategic plan as provided for in
section 116P.08.
new text end

Sec. 6.

Minnesota Statutes 2004, section 116P.08, is
amended by adding a subdivision to read:


new text begin Subd. 1a. new text end

new text begin Expenditures. new text end

new text begin (a) The amount appropriated from
the environment and natural resources trust fund may be spent
only for the public purpose of protection, conservation,
preservation, and enhancement of the state's air, water, land,
fish, wildlife, and other natural resources. Expenditures
recommended by the council under this paragraph must be
consistent with article XI, section 14, of the Minnesota
Constitution and the strategic plan adopted under subdivision 3
and must demonstrate a direct benefit to the state's natural
resources.
new text end

new text begin (b) For the fiscal biennium beginning July 1, 2007, and
each biennium thereafter, the amount of the environment and
natural resources trust fund that is available for appropriation
under the terms of the Minnesota Constitution, article XI,
section 14, shall be appropriated by a law passed by the
legislature and signed by the governor to the Department of
Natural Resources for expenditures to be made according to the
provisions of this paragraph. The council shall submit its
recommendations under section 116P.08, subdivision 3, to the
governor for approval or disapproval. The governor shall notify
the commissioner of natural resources of the council's
recommendations that the governor has approved. The
commissioner of natural resources shall allocate funds
appropriated under this section in accordance with those
recommendations of the council that are approved by the governor.
new text end

Sec. 7.

Minnesota Statutes 2004, section 116P.08, is
amended by adding a subdivision to read:


new text begin Subd. 1b. new text end

new text begin Work program; progress reports. new text end

new text begin It is a
condition of acceptance of the appropriations made from the
Minnesota environment and natural resources trust fund that the
agency or entity receiving the appropriation must submit a work
program and semiannual progress reports in the form determined
by the council. None of the money provided may be spent unless
the council has approved the pertinent work program.
new text end

Sec. 8.

Minnesota Statutes 2004, section 116P.08,
subdivision 3, is amended to read:


Subd. 3.

Strategic plan required.

(a) The deleted text begin commission
deleted text end new text begin council new text end shall adopt a strategic plan for making expenditures
from the trust fund, including identifying the priority areas
for funding for the next deleted text begin six deleted text end new text begin ten new text end years. The strategic plan must
be updated every two years. deleted text begin The plan is advisory only deleted text end new text begin The
council shall make funding allocation recommendations on an
annual basis to the governor according to the strategic plan
new text end .

new text begin (b) new text end The deleted text begin commission deleted text end new text begin council new text end shall submit the plandeleted text begin , as a
recommendation,
deleted text end to the deleted text begin house of representatives Ways and Means
and senate Finance Committees
deleted text end new text begin chairs of the house of
representatives and senate committees with jurisdiction over
environment and natural resources policy and finance
new text end by January
deleted text begin 1 deleted text end new text begin 15 new text end of each odd-numbered year new text begin according to section 116P.09,
subdivision 7
new text end .

deleted text begin (b) The commission may accept or modify the draft of the
strategic plan submitted to it by the advisory committee before
voting on the plan's adoption.
deleted text end

Sec. 9.

Minnesota Statutes 2004, section 116P.08,
subdivision 5, is amended to read:


Subd. 5.

Public meetings.

All deleted text begin advisory committee and
commission
deleted text end new text begin council new text end meetings must be open to the public. deleted text begin The
commission shall attempt to meet at least once in each of the
state's congressional districts during each biennium.
deleted text end

Sec. 10.

Minnesota Statutes 2004, section 116P.08,
subdivision 6, is amended to read:


Subd. 6.

Peer review.

(a) Research proposals must
include a stated purpose, timeline, potential outcomes, and an
explanation of the need for the research. All research
proposals must be deleted text begin reviewed by a peer review panel deleted text end new text begin peer-reviewed
new text end before receiving an appropriation. new text begin Peer reviews shall be
considered by the council in evaluating a research project
proposal. The council shall establish a peer review panel under
subdivision 7 to assist its work.
new text end

(b) deleted text begin In conducting research proposal reviews, the peer
review panel
deleted text end new text begin A peer review report on a proposed research
project, prepared for a research proposal review,
new text end shall:

(1) comment on the methodology proposed and whether it can
be expected to yield appropriate and useful information and
data; new text begin and
new text end

(2) comment on the need for the research and about similar
existing information available, if anydeleted text begin ; and
deleted text end

deleted text begin (3) report to the commission and advisory committee on
clauses (1) and (2).
deleted text end

deleted text begin (c) The peer review panel also must review completed
research proposals that have received an appropriation and
comment and report upon whether the project reached the intended
goals
deleted text end .

Sec. 11.

Minnesota Statutes 2004, section 116P.08,
subdivision 7, is amended to read:


Subd. 7.

Peer review panel membership.

(a) The peer
review panel must consist of at least five members who are
knowledgeable in general research methods in the areas of
environment and natural resources. Not more than two members of
the panel may be employees of state agencies in Minnesota.

(b) The deleted text begin commission deleted text end new text begin council new text end shall select a chair every two
years who shall be responsible for convening meetings of the
panel as often as is necessary to fulfill its duties as
prescribed in this section. Compensation of panel members is
governed by section 15.059, subdivision 3.

new text begin (c) The peer review panel must review completed research
proposals that have received an appropriation and comment and
report upon whether the project reached the intended goals.
new text end

Sec. 12.

Minnesota Statutes 2004, section 116P.09, is
amended to read:


116P.09 ADMINISTRATION.

Subdivision 1.

Administrative authority.

The
deleted text begin commission deleted text end new text begin council new text end may appoint legal and other personnel and
consultants necessary to carry out functions and duties of
the deleted text begin commission deleted text end new text begin councilnew text end . Permanent employees shall be in the
unclassified service. In addition, the deleted text begin commission deleted text end new text begin council new text end may
request staff assistance and data from any other agency of state
government as needed for the execution of the responsibilities
of the deleted text begin commission and advisory committee deleted text end new text begin council new text end and an agency
must promptly furnish it.

Subd. 2.

Liaison officers.

The deleted text begin commission deleted text end new text begin council new text end shall
request each department or agency head of all state agencies
with a direct interest and responsibility in any phase of
environment and natural resources to appoint, and the latter
shall appoint for the agency, a liaison officer who shall work
closely with the deleted text begin commission deleted text end new text begin council new text end and its staff.

Subd. 3.

Appraisal and evaluation.

The deleted text begin commission
deleted text end new text begin council new text end shall obtain and appraise information available through
private organizations and groups, utilizing to the fullest
extent possible studies, data, and reports previously prepared
or currently in progress by public agencies, private
organizations, groups, and others, concerning future trends in
the protection, conservation, preservation, and enhancement of
the state's air, water, land, forests, fish, wildlife, native
vegetation, and other natural resources. Any data compiled by
the deleted text begin commission deleted text end new text begin council new text end shall be made available to any standing
or interim committee of the legislature upon the request of the
chair of the respective committee.

Subd. 4.

Personnel.

Persons who are employed by a state
agency to work on a project and are paid by an appropriation
from the trust fund are in the unclassified civil service, and
their continued employment is contingent upon the availability
of money from the appropriation. When the appropriation has
been spent, their positions must be canceled and the approved
complement of the agency reduced accordingly. Part-time
employment of persons for a project is authorized. The use of
classified employees is authorized when approved as part of the
work program required by section deleted text begin 116P.05 deleted text end new text begin 116P.08new text end , subdivision deleted text begin 2,
paragraph (c)
deleted text end new text begin 1anew text end .

Subd. 5.

Administrative expense.

The prorated expenses
related to deleted text begin commission deleted text end new text begin council new text end administration of the trust fund
may not exceed an amount equal to four percent of the amount
available for appropriation of the trust fund for the biennium.

Subd. 6.

Conflict of interest.

new text begin (a) new text end A deleted text begin commission deleted text end new text begin council
new text end member, deleted text begin advisory committee member,deleted text end new text begin a new text end peer review panelist, or an
employee of the deleted text begin commission deleted text end new text begin council new text end may not participate in or
vote on a decision of the deleted text begin commission, advisory
committee,
deleted text end new text begin council new text end or new text begin a new text end peer review panel relating to an
organization in which the member, panelist, or employee has
either a direct or indirect personal financial interest. While
serving on the deleted text begin legislative commission, advisory committee,
deleted text end new text begin council new text end or peer review paneldeleted text begin ,deleted text end or deleted text begin being deleted text end new text begin while new text end an employee of
the deleted text begin commission deleted text end new text begin councilnew text end , a person shall avoid any potential
conflict of interest. new text begin A conflict of interest exists if the
person:
new text end

new text begin (1) would receive a direct or indirect personal financial
benefit from an entity proposing a project for funding by the
council or from a proposal under review for funding by the
council;
new text end

new text begin (2) serves as an employee, consultant, or governing board
member of an entity proposing a project for funding by the
council; or
new text end

new text begin (3) has a family relationship with a project proposer or a
staff or board member of an entity proposing a project for
funding by the council.
new text end

new text begin (b) The council must develop procedures to identify a
conflict of interest during the initial proposal review
process. If a conflict is found to exist, the person must
notify the council in writing and may not advocate for or
against the proposal or vote on the proposal.
new text end

Subd. 7.

Report required.

The deleted text begin commission deleted text end new text begin council new text end shall,
by January 15 of each odd-numbered year, submit a report to the
governor, the chairs of the house new text begin of representatives
new text end appropriations and senate finance committees, and the chairs of
the house new text begin of representatives new text end and senate committees deleted text begin on deleted text end new text begin with
jurisdiction over
new text end environment and natural resources new text begin policy and
finance
new text end . Copies of the report must be available to the public.
The report must include new text begin a summary of the council's conservation
achievements during the reporting period and
new text end :

(1) a copy of the current strategic plan;

(2) a description of each project receiving money from the
trust fund during the preceding biennium new text begin and how the project
relates to the constitutional dedication of the trust fund and
to the council's current strategic plan
new text end ;

(3) a summary of any research project completed in the
preceding biennium;

(4) recommendations to implement successful projects and
programs into a state agency's standard operations;

(5) to the extent known by the deleted text begin commission deleted text end new text begin councilnew text end ,
descriptions of the projects anticipated to be supported by the
trust fund during the next biennium;

(6) the source and amount of all revenues collected and
distributed by the deleted text begin commission deleted text end new text begin councilnew text end , including all
administrative and other expenses;

(7) a description of the assets and liabilities of the
trust fund;

(8) any findings or recommendations that are deemed proper
to assist the legislature in formulating legislation;

(9) a list of all gifts and donations with a value over
$1,000;

(10) a comparison of the amounts spent by the state for
environment and natural resources activities through the most
recent fiscal year; and

(11) a copy of the most recent compliance audit.

Sec. 13.

Minnesota Statutes 2004, section 116P.10, is
amended to read:


116P.10 ROYALTIES, COPYRIGHTS, PATENTS.

This section applies to projects supported by the trust
fund and the oil overcharge money referred to in section 4.071,
subdivision 2, each of which is referred to in this section as a
"fund." The new text begin trust new text end fund owns and shall take title to the
percentage of a royalty, copyright, or patent resulting from a
project supported by the new text begin trust new text end fund equal to the percentage of
the project's total funding provided by the new text begin trust new text end fund. Cash
receipts resulting from a royalty, copyright, or patent, or the
sale of the new text begin trust new text end fund's rights to a royalty, copyright, or
patent, must be credited immediately to the principal of
the new text begin trust new text end fund. Receipts from Minnesota future resources fund
projects must be credited to the trust fund. Before new text begin the council
decides to fund
new text end a project deleted text begin is included in the budget plandeleted text end ,
the deleted text begin commission deleted text end new text begin council new text end may vote to relinquish the ownership or
rights to a royalty, copyright, or patent resulting from a
project supported by the new text begin trust new text end fund to the project's proposer
when the amount of the original grant or loan, plus interest,
has been repaid to the new text begin trust new text end fund.

Sec. 14.

Minnesota Statutes 2004, section 116P.11, is
amended to read:


116P.11 AVAILABILITY OF FUNDS FOR DISBURSEMENT.

(a) The amount biennially available from the trust fund for
the budget plan developed by the deleted text begin commission deleted text end new text begin council new text end is as
defined in the Minnesota Constitution, article XI, section 14.

(b) Any appropriated funds not encumbered in the biennium
in which they are appropriated cancel and must be credited to
the principal of the trust fund.

Sec. 15.

Minnesota Statutes 2004, section 116P.12,
subdivision 2, is amended to read:


Subd. 2.

Application and administration.

(a) The
deleted text begin commission deleted text end new text begin council new text end must adopt a procedure for the issuance of
the water system improvement loans by the Public Facilities
Authority.

(b) The deleted text begin commission deleted text end new text begin council new text end also must ensure that the loans
are administered according to its fiduciary standards and
requirements.

Sec. 16.

Minnesota Statutes 2004, section 116P.15,
subdivision 2, is amended to read:


Subd. 2.

Restrictions; modification procedure.

(a) An
interest in real property acquired with an appropriation from
the trust fund or the Minnesota future resources fund must be
used in perpetuity or for the specific term of an easement
interest for the purpose for which the appropriation was made.

(b) A recipient of funding who acquires an interest in real
property subject to this section may not alter the intended use
of the interest in real property or convey any interest in the
real property acquired with the appropriation without the prior
review and approval of the deleted text begin commission deleted text end new text begin councilnew text end . The deleted text begin commission
deleted text end new text begin council new text end shall establish procedures to review requests from
recipients to alter the use of or convey an interest in real
property. These procedures shall allow for the replacement of
the interest in real property with another interest in real
property meeting the following criteria:

(1) the interest is at least equal in fair market value, as
certified by the commissioner of natural resources, to the
interest being replaced; and

(2) the interest is in a reasonably equivalent location,
and has a reasonably equivalent usefulness compared to the
interest being replaced.

(c) A recipient of funding who acquires an interest in real
property under paragraph (a) must separately record a notice of
funding restrictions in the appropriate local government office
where the conveyance of the interest in real property is filed.
The notice of funding agreement must contain:

(1) a legal description of the interest in real property
covered by the funding agreement;

(2) a reference to the underlying funding agreement;

(3) a reference to this section; and

(4) the following statement:

"This interest in real property shall be administered in
accordance with the terms, conditions, and purposes of the grant
agreement or work program controlling the acquisition of the
property. The interest in real property, or any portion of the
interest in real property, shall not be sold, transferred,
pledged, or otherwise disposed of or further encumbered without
obtaining the prior written approval of the deleted text begin Legislative
Commission on Minnesota Resources
deleted text end new text begin council new text end or its successor. If
the holder of the interest in real property fails to comply with
the terms and conditions of the grant agreement or work program,
ownership of the interest in real property shall transfer to
this state."

Sec. 17. new text begin INITIAL CITIZEN APPOINTMENTS.
new text end

new text begin The governor shall make the initial appointments of citizen
members to the Minnesota Conservation Heritage Council according
to the following schedule of terms:
new text end

new text begin (1) two members to serve for full six-year terms;
new text end

new text begin (2) two members to serve for five-year terms;
new text end

new text begin (3) two members to serve for four-year terms; and
new text end

new text begin (4) two members to serve for three-year terms.
new text end

Sec. 18. new text begin TRANSITION.
new text end

new text begin (a) The staff of the Legislative Commission on Minnesota
Resources shall provide administrative and technical assistance
to the council.
new text end

new text begin (b) Administrative expenses saved through the elimination
of the Citizens Advisory Committee shall be used for the
administrative expenses of the council or other citizen advisory
committees created by the council.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2004, sections 116P.02, subdivision
2, and 116P.06 are repealed.
new text end

new text begin (b) Minnesota Statutes 2004, section 116P.05, is repealed
effective June 30, 2005.
new text end

Sec. 20. new text begin SUNSET.
new text end

new text begin Minnesota Statutes 2004, sections 116P.061; 116P.07;
116P.08; and 116P.09, are repealed effective June 30, 2012,
unless extended by the legislature.
new text end

Sec. 21. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 20 are effective the day following final
enactment.
new text end