1.1 	A bill for an act
1.2 	relating to natural resources; establishing a
1.3 	Minnesota future resources fund; imposing a cigarette
1.4 	fee to fund natural resources acceleration; amending
1.5 	Minnesota Statutes 2004, section 325D.32, subdivision
1.6 	9; proposing coding for new law in Minnesota Statutes,
1.7 	chapter 116P.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. [116P.17] FUND CREATION.
1.10 	The commissioner of finance must create a Minnesota future
1.11 	resources fund for deposit of revenue under section 116P.19.

1.12 	Sec. 2. [116P.18] MINNESOTA FUTURE RESOURCES FUND.
1.13 		Subdivision 1.Revenue sources. The money in the
1.14 	Minnesota future resources fund consists of revenue credited to
1.15 	it under section 116P.19, subdivision 8.
1.16 		Subd. 2.Interest. The interest attributable to the
1.17 	investment of the Minnesota future resources fund must be
1.18 	credited to the fund.
1.19 		Subd. 3.Revenue purposes. Revenue in the Minnesota
1.20 	future resources fund may be spent for purposes of natural
1.21 	resources acceleration and outdoor recreation upon
1.22 	recommendation of the Legislative Commission on Minnesota
1.23 	Resources, including, but not limited to, the development,
1.24 	maintenance, and operation of the state outdoor recreation
1.25 	system under chapter 86A and regional recreation open space
1.26 	systems as defined under section 473.351, subdivision 1.

2.1 	Sec. 3. [116P.19] MINNESOTA FUTURE RESOURCES FEE.
2.2 		Subdivision 1.Definitions. The definitions under
2.3 	section 297F.01 apply to this section.
2.4 		Subd. 2.Fee imposed. A fee is imposed upon the sale of
2.5 	cigarettes in this state, upon having cigarettes in possession
2.6 	in this state with intent to sell, upon any person engaged in
2.7 	business as a distributor, and upon the use or storage by
2.8 	consumers of cigarettes.  The fee is imposed at the following
2.9 	rates:
2.10 	(1) on cigarettes weighing not more than three pounds per
2.11 	thousand, one mill on each cigarette; and 
2.12 	(2) on cigarettes weighing more than three pounds per
2.13 	thousand, two mills on each cigarette.
2.14 		Subd. 3.Payment. A distributor must pay the fee at the
2.15 	same time and in the same manner as provided for payment of tax
2.16 	under chapter 297F.
2.17 		Subd. 4.Fee on use of unstamped cigarettes. Any person,
2.18 	other than a distributor, that purchases or possesses cigarettes
2.19 	that have not been stamped and on which the fee imposed under
2.20 	this section has not been paid is liable for the fee under this
2.21 	section on the possession or use of those cigarettes.
2.22 		Subd. 5.Administration. The audit, assessment,
2.23 	interest, appeal, refund, penalty, enforcement, administrative,
2.24 	and collection provisions of chapters 270C and 297F apply to the
2.25 	fee imposed under this section.
2.26 		Subd. 6.Cigarette stamp. (a) The stamp in section
2.27 	297F.08 must be affixed to each package and is prima facie
2.28 	evidence that the fee imposed by this section has been paid.
2.29 	(b) Notwithstanding any other provisions of this section,
2.30 	the fee due on the return is based upon actual stamps purchased
2.31 	during the reporting period.
2.32 		Subd. 7.License revocation. The commissioner of revenue
2.33 	may revoke or suspend the license of a distributor for failure
2.34 	to pay the fee or otherwise comply with the requirements under
2.35 	this section.  The provisions and procedures under section
2.36 	297F.04 apply to a suspension or revocation under this
3.1 	subdivision.
3.2 		Subd. 8.Deposit of revenues. The commissioner of
3.3 	revenue shall deposit the revenues from the fee under this
3.4 	section in the Minnesota future resources fund.
3.5 	
EFFECTIVE DATE. This section is effective July 1, 2005.

3.6 	Sec. 4. Minnesota Statutes 2004, section 325D.32,
3.7 	subdivision 9, is amended to read:
3.8 		Subd. 9.Basic cost of cigarettes.  "Basic cost of
3.9 	cigarettes" means the gross invoice cost of cigarettes to the
3.10 	wholesaler or retailer plus the full face value of any stamps
3.11 	which may be required by any cigarette tax or fee act of this
3.12 	state, unless included by the manufacturer in the list price.
3.13 	
EFFECTIVE DATE. This section is effective July 1, 2005.