HF 120

as introduced - 84th Legislature, 2005 1st Special Session (2005 - 2005) Posted on 12/15/2009 12:00am

A bill for an act
relating to natural resources and land acquisition;
proposing an amendment to the Minnesota Constitution,
article XI, section 14; creating a Minnesota
Conservation Heritage Council; imposing a cigarette
fee; proposing coding for new law as Minnesota
Statutes, chapter 116V.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT

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

new text begin An amendment to the Minnesota Constitution, article XI,
section 14, is proposed to the people. If the amendment is
adopted, the section will read:
new text end

Sec. 14.

A permanent environment and natural resources
trust fund is established in the state treasury. Loans may be
made of up to five percent of the principal of the fund for
water system improvements as provided by law. The assets of the
fund shall be appropriated by law for the public purpose of
protection, conservation, preservation, and enhancement of the
state's air, water, land, fish, wildlife, and other natural
resources. The amount appropriated each year of a biennium,
commencing on July 1 in each odd-numbered year and ending on and
including June 30 in the next odd-numbered year, may be up to
5-1/2 percent of the market value of the fund on June 30 one
year before the start of the biennium. Not less than 40 percent
of the net proceeds from any state-operated lottery must be
credited to the fund until the year 2025. new text begin Twenty-five percent
of the lottery net proceeds credited annually must be used for
land acquisition.
new text end

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

new text begin The proposed amendment shall be submitted to the people at
the 2006 general election. The question submitted shall be:
new text end

new text begin "Shall the Minnesota Constitution be amended so that 25
percent of the annual amount of the environment and natural
resources trust fund proceeds be spent on land acquisition for
environmental enhancement?
new text end

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

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day after approval of
the voters in section 2.
new text end

ARTICLE 2

MINNESOTA CONSERVATION HERITAGE COUNCIL

Section 1.

new text begin [116V.01] COUNCIL.
new text end

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

Sec. 2.

new text begin [116V.02] 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 Staff. new text end

new text begin The council may employ an executive
director and other staff as may be necessary.
new text end

new text begin Subd. 4. 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. 5. 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 grants 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. 3.

new text begin [116V.03] INFORMATION GATHERING.
new text end

new text begin Subdivision 1. new text end

new text begin Public forums. new text end

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

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. 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.
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.
new text end

Sec. 4.

new text begin [116V.04] 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. 5.

new text begin [116V.05] STRATEGIC PLAN REQUIRED.
new text end

new text begin (a) The council shall adopt a strategic plan for making
expenditures from the trust fund, including identifying the
priority areas for funding for the next ten years. The
strategic plan must be updated every two years. 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) The council shall submit the plan to the chairs of the
house of representatives and senate committees with jurisdiction
over environment and natural resources policy and finance by
January 15 of each odd-numbered year.
new text end

Sec. 6.

new text begin [116V.06] PUBLIC MEETINGS.
new text end

new text begin All council meetings must be open to the public.
new text end

Sec. 7.

new text begin [116V.07] CONFLICT OF INTEREST.
new text end

new text begin (a) A council member, or an employee of the council, may
not participate in or vote on a decision of the council relating
to an organization in which the member or employee has either a
direct or indirect personal financial interest. While serving
on the council, or while an employee of the council, a person
shall avoid any potential conflict of interest. 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

Sec. 8.

new text begin [116V.08] RESTRICTIONS; MODIFICATION PROCEDURE.
new text end

new text begin (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.
new text end

new text begin (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 council. The council 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:
new text end

new text begin (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
new text end

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

new text begin (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:
new text end

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

new text begin (2) a reference to the underlying funding agreement;
new text end

new text begin (3) a reference to this section; and
new text end

new text begin (4) the following statement:
new text end

new text begin "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 council 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."
new text end

Sec. 9.

new text begin [116V.09] 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) three members to serve for full six-year terms;
new text end

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

new text begin (3) three 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. 10.

new text begin [116V.10] FUND CREATION.
new text end

new text begin The commissioner of finance must create a Minnesota land
resources fund for deposit of revenue under section 116V.12.
new text end

Sec. 11.

new text begin [116V.11] MINNESOTA FUTURE RESOURCES FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Revenue sources. new text end

new text begin The money in the
Minnesota land resources fund consists of revenue credited under
section 116V.12, subdivision 8.
new text end

new text begin Subd. 2. new text end

new text begin Interest. new text end

new text begin The interest attributable to the
investment of the Minnesota land resources fund must be credited
to the fund.
new text end

new text begin Subd. 3. new text end

new text begin Revenue purposes. new text end

new text begin Revenue in the Minnesota land
resources fund may be spent by the Minnesota Heritage
Conservation Council for purposes of natural resources and
outdoor recreation land acquisition, including but not limited
to the purchase, development, maintenance, and operation of the
state outdoor recreation system under chapter 86A and regional
recreation open space systems as defined under section 473.351,
subdivision 1.
new text end

Sec. 12.

new text begin [116V.12] CIGARETTE FEE.
new text end

new text begin Subdivision 1. new text end

new text begin Imposition of fee. new text end

new text begin A cigarette fee is
imposed on and collected from cigarette distributors.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin The definitions under section
297F.01 apply to this section.
new text end

new text begin Subd. 3. new text end

new text begin Computation of fee. new text end

new text begin (a) The fee for fiscal year
2006 and for each succeeding fiscal year is five cents per pack.
new text end

new text begin (b) For each fiscal year, the commissioner shall determine
each cigarette distributor's fee and notify the distributor by
the first day of May preceding the beginning of the fiscal
year. A distributor's fee is determined by multiplying the
total fee under paragraph (a) by a fraction, the numerator of
which is the number of tax stamps purchased by the distributor
under chapter 297F in the calendar year ending during the
previous fiscal year and the denominator of which is the total
number of tax stamps purchased under chapter 297F in that period
by all distributors.
new text end

new text begin Subd. 4. new text end

new text begin Successors in interest; new entrants. new text end

new text begin (a)
"Distributor" includes any individual or entity that is the
successor in interest to a distributor, including any entity
that has substantially acquired the business assets of a
distributor. The successor in interest is liable for the fee
under this section. The commissioner shall calculate and impose
the fee on a successor in interest on a basis that includes the
purchases of tax stamps by its predecessor, as well as any
purchases made by the successor entity or person itself, during
the relevant period.
new text end

new text begin (b) If a distributor did not purchase tax stamps for at
least 500,000 cigarettes in each month of the calendar year
ending during the previous fiscal year, the fee under this
section must be applied at the rate under subdivision 6 for the
fiscal year. The commissioner shall notify the distributor that
its fee will be calculated and imposed under this paragraph by
the first day of May preceding the fiscal year and the
distributor shall pay the fee with each of its monthly tax
returns filed under section 297F.09 for the fiscal year.
new text end

new text begin Subd. 5. new text end

new text begin Payment. new text end

new text begin A distributor must pay the fee in
equal monthly installments in the same time and manner as
provided for payment of tax under chapter 297F. The
commissioner shall bill distributors for the fee. This may be
done at the time the commissioner notifies the distributor of
its annual liability for the fee or at another time or in a
manner the commissioner determines to be adequate and
appropriate.
new text end

new text begin Subd. 6. new text end

new text begin Administration. new text end

new text begin The audit, assessment,
interest, appeal, refund, and collection provisions applicable
to the taxes imposed under chapter 297F apply to the fee imposed
under this section.
new text end

new text begin Subd. 7. new text end

new text begin License revocation. new text end

new text begin (a) The commissioner may
revoke or suspend the license of a distributor for failure to
pay the fee or otherwise comply with the requirements under this
section. The provisions and procedures under section 297F.04
apply to a suspension or revocation under this subdivision.
new text end

new text begin (b) The commissioner may revoke a retailer's sales or use
tax permit under section 297F.185 if:
new text end

new text begin (1) the retailer, directly or indirectly, purchases for
resale 20,000 cigarettes or more from a distributor that has not
paid the fee under this section; and
new text end

new text begin (2) the commissioner has notified the person that the
distributor has not paid the fee before the purchase was made or
the commissioner has posted notice that the distributor is in
violation of the fee law on the department's Web site at least
15 days before the sale was made.
new text end

new text begin Subd. 8. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner shall
deposit the revenues from the fee under this section in the
Minnesota land resources fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
The fee for fiscal year 2006 applies at five-sixths the amount
under subdivision 3, and payments are due in ten equal monthly
installments beginning in September 2005. The commissioner of
revenue shall notify distributors of their liability for the fee
and monthly payment schedule by no later than August 15, 2005.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 11 are effective the day following final
enactment.
new text end