1.1 	A bill for an act
1.2 	relating to natural and cultural resources; proposing an amendment to the 
1.3 	Minnesota Constitution, article XI; increasing the sales tax rate by three-eighths 
1.4 	of one percent and dedicating the receipts for natural and cultural resource 
1.5 	purposes; creating an arts, humanities, museum, and public broadcasting fund; 
1.6 	creating a heritage enhancement fund; creating a parks and trails fund; creating 
1.7 	a clean water fund; establishing a Heritage Enhancement Council; amending 
1.8 	Minnesota Statutes 2006, sections 10A.01, subdivision 35; 114D.20, subdivision 
1.9 	6; 114D.30, subdivision 6; 114D.45; 297A.62, subdivision 1; 297A.94; 297B.02, 
1.10 	subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 85; 
1.11 	97A; 129D.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	Section 1. CONSTITUTIONAL AMENDMENT.
 1.14 	An amendment to the Minnesota Constitution is proposed to  the people.  If the 
1.15 	amendment is adopted, a section will be added to article XI, to read: 

1.16 	Sec. 15.Beginning July 1, 2009, until June 30, 2034, the sales and use tax rate shall be 
1.17 	increased by three-eighths of one percent on sales and uses taxable under the general state 
1.18 	sales and use tax law. Receipts from the increase, plus penalties and interest and reduced 
1.19 	by any refunds, are dedicated as follows: 34 percent of the receipts shall be deposited in 
1.20 	the heritage enhancement fund and may be spent only to improve, enhance, or protect the 
1.21 	state's fish, wildlife, habitat, and fish and wildlife tourism; 22 percent of the receipts shall 
1.22 	be deposited in the parks and trails fund and may be spent only on parks, trails, and zoos 
1.23 	in the state; 22 percent of the receipts shall be deposited in the clean water fund and may 
1.24 	be spent only on protection and restoration of the state's lakes, rivers, streams, wetlands, 
1.25 	and groundwater; and 22 percent of the receipts shall be deposited in the arts, humanities, 
1.26 	museum, and public broadcasting fund and may be spent only on arts, humanities, history, 
1.27 	museums, and public broadcasting. An arts, humanities, museum, and public broadcasting 
2.1 	fund; a heritage enhancement fund; a parks and trails fund; and a clean water fund are 
2.2 	created in the state treasury. The money dedicated under this section shall be appropriated 
2.3 	by law. The money dedicated under this section for fish, wildlife, habitat, fish and wildlife 
2.4 	tourism, parks, trails, zoos, protection and restoration of waters, arts, and history shall 
2.5 	not be used as a substitute for traditional funding sources for the purposes specified, but 
2.6 	the dedicated money shall supplement traditional sources of funding for those purposes. 
2.7 	Land acquired by fee with money deposited in the heritage enhancement fund under this 
2.8 	section must be open to public taking of fish and game during the open season unless 
2.9 	otherwise provided by law.

2.10 	Sec. 2. SUBMISSION TO VOTERS.
 2.11 	The proposed amendment shall be submitted to the people at the 2008 general 
2.12 	election. The question submitted shall be:
2.13 	"Shall the Minnesota Constitution be amended to provide funding beginning July 1, 
2.14 	2009, to improve, enhance, or protect the state's fish, wildlife, habitat, and fish and wildlife 
2.15 	tourism; its parks, trails, and zoos; its lakes, rivers, streams, wetlands, and groundwater; 
2.16 	and its arts, humanities, history, museums, and public broadcasting by increasing the sales 
2.17 	and use tax rate by three-eighths of one percent on taxable sales until the year 2034?

2.18	Yes .......
	
2.19	No ......."

2.20 	Sec. 3. Minnesota Statutes 2006, section 10A.01, subdivision 35, is amended to read:
2.21 		Subd. 35.Public official. "Public official" means any:
2.22 	(1) member of the legislature;
2.23 	(2) individual employed by the legislature as secretary of the senate, legislative 
2.24 	auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or 
2.25 	attorney in the Office of Senate Counsel and Research or House Research;
2.26 	(3) constitutional officer in the executive branch and the officer's chief administrative 
2.27 	deputy;
2.28 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
2.29 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
2.30 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
2.31 	officer;
2.32 	(6) member, chief administrative officer, or deputy chief administrative officer of a 
2.33 	state board or commission that has either the power to adopt, amend, or repeal rules under 
2.34 	chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
3.1 	(7) individual employed in the executive branch who is authorized to adopt, amend, 
3.2 	or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
3.3 	(8) executive director of the State Board of Investment;
3.4 	(9) deputy of any official listed in clauses (7) and (8);
3.5 	(10) judge of the Workers' Compensation Court of Appeals;
3.6 	(11) administrative law judge or compensation judge in the State Office of 
3.7 	Administrative Hearings or referee in the Department of Employment and Economic 
3.8 	Development;
3.9 	(12) member, regional administrator, division director, general counsel, or operations 
3.10 	manager of the Metropolitan Council;
3.11 	(13) member or chief administrator of a metropolitan agency;
3.12 	(14) director of the Division of Alcohol and Gambling Enforcement in the 
3.13 	Department of Public Safety;
3.14 	(15) member or executive director of the Higher Education Facilities Authority;
3.15 	(16) member of the board of directors or president of Minnesota Technology, Inc.; 
3.16 	(17) member of the board of directors or executive director of the Minnesota State 
3.17 	High School League;
3.18 	(18) member of the Minnesota Ballpark Authority established in section 473.755; or
3.19 	(19) citizen member of the Legislative-Citizen Commission on Minnesota 
3.20 	Resources; or
3.21 	(20) member of the Heritage Enhancement Council.

3.22 	EFFECTIVE DATE. This section is effective November 15, 2008, if the 
3.23 	constitutional amendment proposed in section 1 is adopted by the voters.

3.24 	Sec. 4. [85.0195] PARKS AND TRAILS FUNDS; EXPENDITURES.
3.25 		Subdivision 1.Fund. The parks and trails fund is established in the Minnesota 
3.26 	Constitution, article XI, section 15. All money earned by the parks and trails fund must 
3.27 	be credited to the fund.
3.28 		Subd. 2.Expenditures. Money in the parks and trails fund may be spent only on 
3.29 	state and regional parks, trails, and zoos. Subject to the appropriation by law, receipts to 
3.30 	the fund must be allocated in separate accounts as follows:
3.31 	(1) 38 percent of the receipts may be spent only for state park and recreation area 
3.32 	purposes;
3.33 	(2) 11 percent of the receipts may be spent only for state trail purposes;
3.34 	(3) 36 percent of the receipts may be spent only for metropolitan area, as defined in 
3.35 	section 473.121, regional park and trail grants;
4.1 	(4) 12 percent of the receipts may be spent only for nonmetropolitan regional parks 
4.2 	and trails, outdoor recreation grants, natural and scenic area grants, trail connection grants, 
4.3 	regional trail grants, and grant-in-aid trails; and 
4.4 	(5) three percent of the receipts may be spent only for the Minnesota Zoological 
4.5 	Garden, the Como Park Zoo and Conservatory, and the Duluth Zoo.

4.6 	EFFECTIVE DATE. This section is effective July 1, 2009, if the constitutional 
4.7 	amendment proposed in section 1 is adopted by the voters.

4.8 	Sec. 5. [97A.056] HERITAGE ENHANCEMENT FUND; HERITAGE 
4.9 	ENHANCEMENT COUNCIL.
4.10 		Subdivision 1.Heritage enhancement fund. (a) The heritage enhancement fund is 
4.11 	established in the Minnesota Constitution, article XI, section 15. All money earned by 
4.12 	the heritage enhancement fund must be credited to the fund. At least 97 percent of the 
4.13 	money appropriated from the fund must be spent on specific fish, wildlife, habitat, and 
4.14 	fish and wildlife tourism projects.
4.15 	(b) A forest legacy and forest consolidation account is created within the heritage 
4.16 	enhancement fund. From the receipts deposited in the heritage enhancement fund under 
4.17 	the Minnesota Constitution, article XI, section 15, 25 percent each fiscal year must be 
4.18 	credited to the forest legacy and forest consolidation account. Money in the account may 
4.19 	be spent only for the acquisition of permanent easements on private forest land or for the 
4.20 	acquisition of land for forest consolidation.
4.21 		Subd. 2.Heritage Enhancement Council. (a) A Heritage Enhancement Council of 
4.22 	11 members is created consisting of:
4.23 	(1) two members of the senate appointed by the senate Subcommittee on Committees 
4.24 	of the Committee on Rules and Administration; 
4.25 	(2) two members of the house of representatives appointed by the speaker of the 
4.26 	house;
4.27 	(3) two public members representing hunting, fishing, and wildlife interests 
4.28 	appointed by the senate Subcommittee on Committees of the Committee on Rules and 
4.29 	Administration;
4.30 	(4) two public members representing hunting, fishing, and wildlife interests 
4.31 	appointed by the speaker of the house; and
4.32 	(5) three public members representing hunting, fishing, and wildlife interests 
4.33 	appointed by the governor.
4.34 	(b) One member from the senate and one member from the house of representatives 
4.35 	must be from the minority caucus. Legislative members are entitled to reimbursement 
5.1 	for per diem expenses plus travel expenses incurred in the services of the council. The 
5.2 	removal and, beginning July 1, 2009, the compensation of public members are as provided 
5.3 	in section 15.0575.
5.4 	(c) Members shall elect a chair, vice chair, secretary, and other officers as determined 
5.5 	by the council. The chair may convene meetings as necessary to conduct the duties 
5.6 	prescribed by this section.
5.7 	(d) Membership terms are two years, except that members shall serve on the council 
5.8 	until their successors are appointed.
5.9 	(e) Vacancies occurring on the council do not affect the authority of the remaining 
5.10 	members of the council to carry out their duties. Vacancies shall be filled in the same 
5.11 	manner as under paragraph (a).
5.12 		Subd. 3.Duties of council. (a) The council, in consultation with statewide and local 
5.13 	fishing, forestry, hunting, and wildlife groups, shall develop a biennial budget plan for 
5.14 	expenditures from the heritage enhancement fund. The biennial budget plan may include 
5.15 	grants to statewide and local fishing, forestry, hunting, and wildlife groups to improve, 
5.16 	enhance, or protect fish and wildlife resources.
5.17 	(b) In the biennial budget submitted to the legislature, the governor shall submit 
5.18 	separate budget detail for planned expenditures from the heritage enhancement fund 
5.19 	as recommended by the council.
5.20 	(c) As a condition of acceptance of an appropriation from the heritage enhancement 
5.21 	fund, an agency or entity receiving an appropriation shall submit a work program and 
5.22 	quarterly progress reports for appropriations from the heritage enhancement fund to the 
5.23 	members of the Heritage Enhancement Council in the form determined by the council.
5.24 		Subd. 4.Council administration. (a) The council may employ personnel and 
5.25 	contract with consultants as necessary to carry out functions and duties of the council. 
5.26 	Permanent employees shall be in the unclassified service. The council may request staff 
5.27 	assistance, legal opinion, and data from agencies of state government as needed for the 
5.28 	execution of the responsibilities of the council.
5.29 	(b) Beginning July 1, 2009, the administrative expenses of the council shall be 
5.30 	paid from the heritage enhancement fund.
5.31 	(c) A council member or an employee of the council may not participate in or vote 
5.32 	on a decision of the council relating to an organization in which the member or employee 
5.33 	has either a direct or indirect personal financial interest. While serving on or employed by 
5.34 	the council, a person shall avoid any potential conflict of interest.
5.35 		Subd. 5.Council meetings. Meetings of the council and other groups the council 
5.36 	may establish must be conducted in accordance with chapter 13D. Except where prohibited 
6.1 	by law, the council shall establish additional processes to broaden public involvement 
6.2 	in all aspects of its deliberations.

6.3 	EFFECTIVE DATE. This section is effective November 15, 2008, if the 
6.4 	constitutional amendment proposed in section 1 is adopted by the voters.

6.5 	Sec. 6. Minnesota Statutes 2006, section 114D.20, subdivision 6, is amended to read:
6.6 		Subd. 6.Priorities for restoration of impaired waters. In implementing 
6.7 	restoration of impaired waters, in addition to the priority considerations in subdivision 5, 
6.8 	the Clean Water Council shall give priority in its recommendations for restoration funding 
6.9 	from the clean water legacy accountfund to restoration projects that: 
6.10 	(1) coordinate with and utilize existing local authorities and infrastructure for 
6.11 	implementation; 
6.12 	(2) can be implemented in whole or in part by providing  support for existing or 
6.13 	ongoing restoration efforts; 
6.14 	(3) most effectively leverage other sources of restoration funding, including federal, 
6.15 	state, local, and private sources of funds; 
6.16 	(4) show a high potential for early restoration and delisting based upon scientific 
6.17 	data developed through public agency or citizen monitoring or other means; and
6.18 	(5) show a high potential for long-term water quality and related conservation 
6.19 	benefits.

6.20 	EFFECTIVE DATE. This section is effective July 1, 2009, if the constitutional 
6.21 	amendment proposed in section 1 is adopted by the voters.

6.22 	Sec. 7. Minnesota Statutes 2006, section 114D.30, subdivision 6, is amended to read:
6.23 		Subd. 6.Recommendations on appropriation of funds. The Clean Water 
6.24 	Council shall recommend to the governor the manner in which money from the clean 
6.25 	water legacy accountfund should be appropriated for the purposes identified in section 
6.26 	114D.45, subdivision 3.  The council's recommendations must be consistent with the 
6.27 	purposes, policies, goals, and priorities in sections 114D.05 to 114D.35, and shall allocate 
6.28 	adequate support and resources to identify impaired waters, develop TMDL's, implement 
6.29 	restoration of impaired waters, and provide assistance and incentives to prevent waters 
6.30 	from becoming impaired and improve the quality of waters which are listed as impaired 
6.31 	but have no approved TMDL. The council must recommend methods of ensuring that 
6.32 	awards of grants, loans, or other funds from the clean water legacy accountfund specify 
6.33 	the outcomes to be achieved as a result of the funding and specify standards to hold the 
7.1 	recipient accountable for achieving the desired outcomes. Expenditures from the account 
7.2 	must be appropriated by law.

7.3 	EFFECTIVE DATE. This section is effective July 1, 2009, if the constitutional 
7.4 	amendment proposed in section 1 is adopted by the voters.

7.5 	Sec. 8. Minnesota Statutes 2006, section 114D.45, is amended to read:
7.6 	114D.45 CLEAN WATER LEGACY ACCOUNT FUND.
7.7 		Subdivision 1.Creation. The clean water legacy account fund is created as an 
7.8 	account in the environmental fund established in the Minnesota Constitution, article XI, 
7.9 	section 15.  Money in the account fund must be made available for the implementation 
7.10 	of this chapter and sections 446A.073, 446A.074, and 446A.075, without supplanting or 
7.11 	taking the place of any other funds which are currently available or may become available 
7.12 	from any other source, whether federal, state, local, or private, for implementation of 
7.13 	those sections.
7.14 		Subd. 2.Sources of revenue. The following revenues must be deposited in the 
7.15 	clean water legacy account fund:
7.16 	(1) money deposited in the fund as provided in the Minnesota Constitution, article 
7.17 	XI, section 16;
7.18 	(1) (2) money transferred to the account fund; and 
7.19 	(2) (3) interest accrued on the account fund.
7.20 		Subd. 3.Purposes. Subject to appropriation by the legislature, the clean water 
7.21 	legacy account fund may be spent for the following purposes:
7.22 	(1) to provide grants, loans, and technical assistance to public agencies and others 
7.23 	who are participating in the process of identifying impaired waters, developing TMDL's, 
7.24 	implementing restoration plans for impaired waters, and monitoring the effectiveness 
7.25 	of restoration;
7.26 	(2) to support measures to prevent waters from becoming impaired and to improve 
7.27 	the quality of waters that are listed as impaired but do not have an approved TMDL 
7.28 	addressing the impairment;
7.29 	(3) to provide grants and loans for wastewater and storm water treatment projects 
7.30 	through the Public Facilities Authority;
7.31 	(4) to support the efforts of public agencies associated with individual sewage 
7.32 	treatment systems and financial assistance for upgrading and replacing the systems; and 
7.33 	(5) to provide funds to state agencies to carry out their responsibilities under this 
7.34 	chapter.

8.1 	EFFECTIVE DATE. This section is effective July 1, 2009, if the constitutional 
8.2 	amendment proposed in section 1 is adopted by the voters.

8.3 	Sec. 9. [129D.17] ARTS, HUMANITIES, MUSEUM, AND PUBLIC 
8.4 	BROADCASTING FUND; EXPENDITURES.
8.5 		Subdivision 1.Fund. The arts, humanities, museum, and public broadcasting fund 
8.6 	is established in the Minnesota Constitution, article XI, section 15. All money earned 
8.7 	by the fund must be credited to the fund.
8.8 		Subd. 2.Expenditures. Subject to appropriation, receipts in the fund must be 
8.9 	allocated by the commissioner of finance as follows:
8.10 	(1) 43 percent to the Minnesota State Arts Board;
8.11 	(2) 23 percent to the Minnesota Historical Society;
8.12 	(3) 23 percent to public broadcasting;
8.13 	(4) four percent to the Science Museum of Minnesota;
8.14 	(5) 3.5 percent to the Humanities Commission;
8.15 	(6) 2.5 percent to the Minnesota Film Board; and
8.16 	(7) one percent to the Minnesota Children's Museum and the Duluth Children's 
8.17 	Museum.
8.18 	Money allocated to the Minnesota State Arts Board may not be used for 
8.19 	administrative purposes. If one of the above entities ceases to exist, then the appropriated 
8.20 	money must be allocated proportionally among the remaining entities.

8.21 	EFFECTIVE DATE. This section is effective July 1, 2009, if the constitutional 
8.22 	amendment proposed in section 1 is adopted by the voters.

8.23 	Sec. 10. Minnesota Statutes 2006, section 297A.62, subdivision 1, is amended to read:
8.24 		Subdivision 1.Generally. (a) Except as otherwise provided in subdivision 2 or 3 
8.25 	or in this chapter, a sales tax of 6.5 percent is imposed on the gross receipts from retail 
8.26 	sales as defined in section  297A.61, subdivision 4, made in this state or to a destination 
8.27 	in this state by a person who is required to have or voluntarily obtains a permit under 
8.28 	section  297A.83, subdivision 1. 
8.29 	(b) The increased rate required under the Minnesota Constitution, article XI, section 
8.30 	15, shall be added to the rate imposed under paragraph (a).

8.31 	EFFECTIVE DATE. This section is effective July 1, 2009, if the constitutional 
8.32 	amendment proposed in section 1 is adopted by the voters.

9.1 	Sec. 11. Minnesota Statutes 2006, section 297A.94, is amended to read:
9.2 	297A.94 DEPOSIT OF REVENUES.
9.3 	(a) Except as provided in this section and the Minnesota Constitution, article XI, 
9.4 	section 15, the commissioner shall deposit the revenues, including interest and penalties, 
9.5 	derived from the taxes imposed by this chapter in the state treasury and credit them to the 
9.6 	general fund.
9.7 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
9.8 	account in the special revenue fund if:
9.9 	(1) the taxes are derived from sales and use of property and services purchased for 
9.10 	the construction and operation of an agricultural resource project; and
9.11 	(2) the purchase was made on or after the date on which a conditional commitment 
9.12 	was made for a loan guaranty for the project under section 41A.04, subdivision 3. 
9.13 	The commissioner of finance shall certify to the commissioner the date on which the 
9.14 	project received the conditional commitment. The amount deposited in the loan guaranty 
9.15 	account must be reduced by any refunds and by the costs incurred by the Department of 
9.16 	Revenue to administer and enforce the assessment and collection of the taxes.
9.17 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
9.18 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
9.19 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
9.20 	as follows: 
9.21 	(1) first to the general obligation special tax bond debt service account in each fiscal 
9.22 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and 
9.23 	(2) after the requirements of clause (1) have been met, the balance to the general 
9.24 	fund.
9.25 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
9.26 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
9.27 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
9.28 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
9.29 	subdivision 5, for the previous calendar year. 
9.30 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
9.31 	for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and 
9.32 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
9.33 	the commissioner in the state treasury as follows: 
9.34 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
9.35 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
10.1 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
10.2 	of land, water, and other natural resources of the state;
10.3 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
10.4 	may be spent only for state parks and trails;
10.5 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
10.6 	may be spent only on metropolitan park and trail grants;
10.7 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
10.8 	may be spent only on local trail grants; and
10.9 	(5) two percent of the receipts must be deposited in the natural resources fund, 
10.10 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
10.11 	Conservatory, and the Duluth Zoo.
10.12 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
10.13 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
10.14 	shall supplement traditional sources of funding for those purposes. Land acquired with 
10.15 	money deposited in the game and fish fund under paragraph (e) must be open to public 
10.16 	hunting and fishing during the open season, except that in aquatic management areas or 
10.17 	on lands where angling easements have been acquired, fishing may be prohibited during 
10.18 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
10.19 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
10.20 	and wildlife resources under paragraph (e) must be allocated for field operations.

10.21 	EFFECTIVE DATE. This section is effective July 1, 2009, if the constitutional 
10.22 	amendment proposed in section 1 is adopted by the voters.

10.23 	Sec. 12. Minnesota Statutes 2006, section 297B.02, subdivision 1, is amended to read:
10.24 		Subdivision 1.Rate. There is imposed an excise tax at the rate provided in chapter 
10.25 	297A section 297A.62, subdivision 1, paragraph (a), on the purchase price of any motor 
10.26 	vehicle purchased or acquired, either in or outside of the state of Minnesota, which is 
10.27 	required to be registered under the laws of this state.
10.28 	The excise tax is also imposed on the purchase price of motor vehicles purchased 
10.29 	or acquired on Indian reservations when the tribal council has entered into a sales tax on 
10.30 	motor vehicles refund agreement with the state of Minnesota.

10.31 	EFFECTIVE DATE. This section is effective July 1, 2009, if the constitutional 
10.32 	amendment proposed in section 1 is adopted by the voters.