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HF 1900

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/13/2023 12:40pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to natural resources; proposing an amendment to the Minnesota
Constitution, article XI, section 14; providing for the renewal of the environment
and natural resources trust fund; requiring a report; appropriating money; amending
Minnesota Statutes 2022, sections 349A.08, subdivision 5; 349A.10, subdivision
5; proposing coding for new law in Minnesota Statutes, chapter 116P; proposing
coding for new law as Minnesota Statutes, chapter 116X.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT

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

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

Sec. 14.

A permanent environment and natural resources trust fund is established in the
state treasury. deleted text begin Loans may be made of up to five percent of the principal of the fund for water
system improvements as provided by law.
deleted text end 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. new text begin The assets of the fund
shall not be used to pay the principal or interest of any bonds. The assets of the fund shall
not be used to pay for any costs related to the construction, repair, improvement, or operation
of any facility or system that processes wastewater, but may be used to pay for research
related to wastewater.
new text end 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 deleted text begin 5-1/2deleted text end new text begin sevennew text end percent of the market value of the fund on
June 30 one year before the start of the biennium. Not less than deleted text begin 40deleted text end new text begin 50new text end percent of the net
proceeds from any state-operated lottery must be credited to the fund deleted text begin until the year 2025deleted text end new text begin
through December 31, 2050
new text end .

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

new text begin (a) The proposed amendment must be submitted to the people at the 2024 general election.
The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to protect drinking water sources and the
water quality of lakes, rivers, and streams; conserve wildlife habitat and natural areas;
improve air quality; and expand access to parks and trails by extending the transfer of
proceeds from the state-operated lottery to the environment and natural resources trust fund,
to increase the portion of lottery proceeds transferred to the fund from the lottery from 40
to 50 percent, and to dedicate the proceeds for these purposes?
new text end

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

new text begin (b) The title required under Minnesota Statutes, section 204D.15, subdivision 1, for the
question submitted to the people under paragraph (a) shall be: "Environment and Natural
Resources Trust Fund Renewal."
new text end

ARTICLE 2

STATUTORY CHANGES

Section 1.

new text begin [116P.011] CHAPTER DOES NOT APPLY TO CERTAIN
APPROPRIATIONS.
new text end

new text begin This chapter does not apply to appropriations from the environment and natural resources
trust fund under section 116X.03 or to projects funded with those appropriations.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin If the constitutional amendment in article 1, section 1, is approved
by the voters at the 2024 general election, this section is effective January 1, 2025.
new text end

Sec. 2.

new text begin [116X.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Advisory council. new text end

new text begin "Advisory council" means the council created under section
116X.05.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of natural resources.
new text end

new text begin Subd. 4. new text end

new text begin Grant program. new text end

new text begin "Grant program" means the program established under section
116X.03.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the day on which the
constitutional amendment in article 1, section 1, is approved by the voters at the 2024 general
election.
new text end

Sec. 3.

new text begin [116X.03] ENVIRONMENT AND NATURAL RESOURCES TRUST FUND
COMMUNITY GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner must establish the environment and
natural resources trust fund community grant program for the benefit of current residents
and future generations. The commissioner must award grants under the program for purposes
under Minnesota Constitution, article XI, section 14, but have not traditionally been funded
from that source.
new text end

new text begin Subd. 2. new text end

new text begin Priority. new text end

new text begin In awarding grants under this section, the commissioner must give
priority to awarding grants that will fund projects that will:
new text end

new text begin (1) be undertaken in census tracts that are overburdened or underserved, including
communities disproportionately affected by agriculture loss, building loss, wildfire risk,
low incomes, high energy costs, rates of asthma, rates of diabetes, rates of heart disease,
low life expectancy, high housing costs, lack of green space, lack of indoor plumbing,
presence of lead paint, proximity to hazardous waste and related facilities, particulate matter
exposure, linguistic isolation, or unemployment; and
new text end

new text begin (2) provide multiple public benefits.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin (a) 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,
1.5 percent of the market value of the environment and natural resources trust fund on June
30 one year before the start of the biennium is appropriated to the commissioner of natural
resources to provide grants under the grant program.
new text end

new text begin (b) Money appropriated from the trust fund under this subdivision must supplement the
traditional sources of funding environment and natural resources activities and may not be
used as a substitute.
new text end

new text begin (c) Any appropriated funds not encumbered before the appropriation expires must be
credited to the principal of the trust fund.
new text end

new text begin Subd. 4. new text end

new text begin Administrative expenses. new text end

new text begin (a) Up to five percent of the money appropriated to
the commissioner under subdivision 3 may be used by the commissioner for administering
and monitoring grants under this section.
new text end

new text begin (b) A recipient of a grant awarded under this section may not use more than five percent
of the grant for administrative expenses.
new text end

new text begin Subd. 5. new text end

new text begin Improper expenditure of funds. new text end

new text begin The commissioner may require a recipient
of a grant under this section to return all money awarded to the recipient if the recipient
does not use the money to complete the project in accordance with the applicable agreement.
new text end

new text begin Subd. 6. new text end

new text begin Reporting. new text end

new text begin By February 1 each year, the commissioner must submit a report
to the chairs and ranking minority members of the house of representatives and senate
committees and divisions with jurisdiction over environment and natural resources on the
administration of this section during the previous fiscal year, including administrative
expenses and the grants awarded.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin If the constitutional amendment in article 1, section 1, is approved
by the voters at the 2024 general election, this section is effective January 1, 2025.
new text end

Sec. 4.

new text begin [116X.05] ENVIRONMENT AND NATURAL RESOURCES TRUST FUND
COMMUNITY GRANT ADVISORY COUNCIL; REPORTING.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of natural resources must establish
an Environment and Natural Resources Trust Fund Community Grant Advisory Council.
new text end

new text begin Subd. 2. new text end

new text begin Membership; terms. new text end

new text begin (a) The commissioner, in consultation with the
commissioners of health and the Pollution Control Agency, must appoint 11 residents of
Minnesota to the advisory council as follows:
new text end

new text begin (1) three members who reside in and represent various genders, ethnicities, ages, and
other demographics from rural communities in Minnesota;
new text end

new text begin (2) three members who reside in and represent various genders, ethnicities, ages, and
other demographics from urban or suburban communities in Minnesota;
new text end

new text begin (3) two members who are members of the Ojibwe Tribe;
new text end

new text begin (4) two members who are members of the Dakota Tribe; and
new text end

new text begin (5) one member who identifies as Black or African American, Hispanic or Latino, Asian,
or Pacific Islander or as a member of a community of color.
new text end

new text begin (b) In addition to the members appointed under paragraph (a), the commissioner, in
consultation with the commissioners of health and the Pollution Control Agency, may
appoint up to eight additional Minnesota residents to the advisory council when, in the
commissioner's discretion, it is necessary to ensure that the advisory council is sufficiently
representative of various Minnesota communities.
new text end

new text begin (c) The membership appointed under paragraphs (a) and (b) must include persons who:
new text end

new text begin (1) have experience or expertise 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, including expertise in understanding the cultural context in
which these activities are undertaken from the perspective of Tribal communities;
new text end

new text begin (2) have strong knowledge of environment and natural resource issues around the state,
including those that are of particular importance to Tribal communities; and
new text end

new text begin (3) have demonstrated the ability to work in a collaborative environment.
new text end

new text begin (d) Members serve staggered three-year terms, beginning in January of the first year
and continuing through the end of December of the final year. Members continue to serve
until their replacement is named. Initial appointees may be appointed to terms of less than
three years to establish a structure of staggered terms.
new text end

new text begin (e) A member appointed under this subdivision may not be a registered lobbyist.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin (a) The advisory council must:
new text end

new text begin (1) advise the commissioner on developing forms and applications and reporting for
grants awarded under the grant program;
new text end

new text begin (2) review proposed grant program policies and budgets for the upcoming year;
new text end

new text begin (3) propose changes to the grant program, as needed;
new text end

new text begin (4) review other relevant information;
new text end

new text begin (5) make recommendations to the legislature and the commissioner for improving
management of the grant program; and
new text end

new text begin (6) review and advise on recipient eligibility.
new text end

new text begin (b) The commissioner must provide the council with the information required to perform
its duties under this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Per diem. new text end

new text begin Members of the council are entitled to per diem and reimbursement
for expenses incurred in the services of the commission, as provided in section 15.059,
subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the day on which the
constitutional amendment in article 1, section 1, is approved by the voters at the 2024 general
election.
new text end

Sec. 5.

Minnesota Statutes 2022, section 349A.08, subdivision 5, is amended to read:


Subd. 5.

Payment; unclaimed prizes.

A prize in the state lottery must be claimed by
the winner within one year of the date of the drawing at which the prize was awarded or
the last day sales were authorized for a game where a prize was determined in a manner
other than by means of a drawing. If a valid claim is not made for a prize payable directly
by the lottery by the end of this period, the prize money is considered unclaimed and the
winner of the prize shall have no further claim to the prize. A prize won by a person who
purchased the winning ticket in violation of section 349A.12, subdivision 1, or won by a
person ineligible to be awarded a prize under subdivision 7 must be treated as an unclaimed
prize under this section. The director must transfer all unclaimed prize money at the end of
each fiscal year from the lottery cash flow account to the deleted text begin generaldeleted text end new text begin environment and natural
resources trust
new text end fund.

Sec. 6.

Minnesota Statutes 2022, section 349A.10, subdivision 5, is amended to read:


Subd. 5.

Deposit of net proceeds.

Within 30 days after the end of each month, the
director shall deposit in the state treasury the net proceeds of the lottery, which is the balance
in the lottery fund after transfers to the lottery prize fund and credits to the lottery operations
account. Of the net proceeds, deleted text begin 40deleted text end new text begin 50new text end percent must be credited to the Minnesota environment
and natural resources trust fund and the remainder must be credited to the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the day on which the
constitutional amendment in article 1, section 1, is approved by the voters at the 2024 general
election.
new text end

Sec. 7. new text begin COUNCIL ORGANIZATION; REPORT.
new text end

new text begin By January 15, 2026, the commissioner of natural resources must submit a report to the
chairs and ranking minority members of the house of representatives and senate committees
and divisions with jurisdiction over environment and natural resources on the organizational
structure and membership of the Environment and Natural Resources Trust Fund Community
Grant Advisory Council required under Minnesota Statutes, section 116X.05.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the day on which the
constitutional amendment in article 1, section 1, is approved by the voters at the 2024 general
election.
new text end

Sec. 8. new text begin INITIAL REPORTING DATES.
new text end

new text begin Notwithstanding Minnesota Statutes, section 116X.03, subdivision 6, the commissioner
of natural resources is not required to submit the report required under that section before
February 1, 2027.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin If the constitutional amendment in article 1, section 1, is approved
by the voters at the 2024 general election, this section is effective January 1, 2025.
new text end