3rd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/22/2023 12:12pm
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; 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:
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An amendment to the Minnesota Constitution is proposed to the people. If the amendment
is adopted, article XI, section 14, will read:
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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 40 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, 2050new text end .
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(a) The proposed amendment must be submitted to the people at the 2024 general election.
The question submitted must be:
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"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,
and to dedicate the proceeds for these purposes?
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Yes
.
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No
.
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" new text end |
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(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."
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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.
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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.
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The definitions in this section apply to this chapter.
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"Advisory council" means the council created under section
116X.05.
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"Commissioner" means the commissioner of natural resources.
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"Grant program" means the program established under section
116X.03.
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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.
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(a) The commissioner must establish the
environment and natural resources trust fund community grant program for the benefit of
current residents and future generations.
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(b) The commissioner must award grants under the program for purposes that are
authorized under Minnesota Constitution, article XI, section 14, but that have not traditionally
been funded from that source. The commissioner must provide at least two grant award
cycles per calendar year and must ensure that grants are awarded and deployed under the
program as expeditiously as possible.
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In awarding grants under this section, the commissioner must give
priority to awarding grants that will fund projects that will:
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(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
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(2) provide multiple public benefits.
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(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.
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(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.
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(c) Any appropriated funds not encumbered before the appropriation expires must be
credited to the principal of the trust fund.
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(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.
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(b) A recipient of a grant awarded under this section may not use more than five percent
of the grant for administrative expenses.
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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.
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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.
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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.
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The commissioner of natural resources must establish
an Environment and Natural Resources Trust Fund Community Grant Advisory Council.
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(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, and the appointees must include:
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(1) two members who are members of the Ojibwe Tribe;
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(2) two members who are members of the Dakota Tribe; and
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(3) four members who identify as Black or African American, Hispanic or Latino, Asian,
or Pacific Islander or as members of a community of color.
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(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 residents of Minnesota 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.
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(c) The commissioner must make appointments to the advisory council under this
subdivision that result in substantially equal representation of rural, suburban, and urban
communities.
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(d) The membership appointed under paragraphs (a) and (b) must include persons who:
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(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;
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(2) have strong knowledge of environment and natural resource issues around the state,
including those that are of particular importance to Tribal communities; and
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(3) have demonstrated the ability to work in a collaborative environment.
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(e) 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.
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(f) A member appointed under this subdivision may not be a registered lobbyist.
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(a) The advisory council must:
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(1) advise the commissioner on developing forms and applications and reporting for
grants awarded under the grant program;
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(2) review proposed grant program policies and budgets for the upcoming year;
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(3) propose changes to the grant program, as needed;
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(4) review other relevant information;
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(5) make recommendations to the legislature and the commissioner for improving
management of the grant program; and
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(6) review and advise on recipient eligibility.
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(b) The commissioner must provide the council with the information required to perform
its duties under this subdivision.
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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.
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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.
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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.
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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.
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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.
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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.
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(a) As used in this section, the following terms have the
meanings given.
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(b) "Grant" means a grant or business subsidy funded by an appropriation in this act.
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(c) "Grantee" means a business entity as defined in Minnesota Statutes, section 5.001.
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Before
an agency awards a competitive, legislatively named, single-source, or sole-source grant,
the agency must assess the risk that a grantee cannot or would not perform the required
duties. In making this assessment, the agency must review the following information:
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(1) the grantee's history of performing duties similar to those required by the grant,
whether the size of the grant requires the grantee to perform services at a significantly
increased scale, and whether the size of the grant will require significant changes to the
operation of the grantee's organization;
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(2) for a grantee that is a nonprofit organization, the grantee's Form 990 or Form 990-EZ
filed with the Internal Revenue Service in each of the prior three years. If the grantee has
not been in existence long enough or is not required to file Form 990 or Form 990-EZ, the
grantee must demonstrate to the grantor's satisfaction that the grantee is exempt and must
instead submit the grantee's most recent board-reviewed financial statements and
documentation of internal controls;
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(3) for a for-profit business, three years of federal and state tax returns, current financial
statements, certification that the business is not under bankruptcy proceedings, and disclosure
of any liens on its assets. If a business has not been in business long enough to have three
years of tax returns, the grantee must demonstrate to the grantor's satisfaction that the grantee
has appropriate internal financial controls;
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(4) evidence of registration and good standing with the secretary of state under Minnesota
Statutes, chapter 317A, or other applicable law;
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(5) if the grantee's total annual revenue exceeds $750,000, the grantee's most recent
financial audit performed by an independent third party in accordance with generally accepted
accounting principles; and
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(6) certification, provided by the grantee, that none of its principals have been convicted
of a financial crime.
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The agency may require additional
information and must provide enhanced oversight for grants that have not previously received
state or federal grants for similar amounts or similar duties and so have not yet demonstrated
the ability to perform the duties required under the grant on the scale required.
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An agency without adequate resources or
experience to perform obligations under this section may contract with the commissioner
of administration to perform the agency's duties under this section.
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If an agency determines that there is
an appreciable risk that a grantee receiving a competitive, single-source, or sole-source
grant cannot or would not perform the required duties under the grant agreement, the agency
must notify the grantee and the commissioner of administration and give the grantee an
opportunity to respond to the agency's concerns. If the grantee does not satisfy the agency's
concerns within 45 days, the agency must not award the grant.
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If an agency determines that there is an
appreciable risk that a grantee receiving a legislatively named grant cannot or would not
perform the required duties under the grant agreement, the agency must notify the grantee,
the commissioner of administration, the chair and ranking minority member of the Ways
and Means Committee in the house of representatives, the chair and ranking minority member
of the Finance Committee in the senate, and the chairs and ranking minority members of
the committees in the house of representatives and the senate with primary jurisdiction over
the bill in which the money for the grant was appropriated. The agency must give the grantee
an opportunity to respond to the agency's concerns. If the grantee does not satisfy the agency's
concerns within 45 days, the agency must delay award of the grant until adjournment of the
next regular or special legislative session.
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The requirements of this section are in addition to other requirements
imposed by law; the commissioner of administration under Minnesota Statutes, sections
16B.97 and 16B.98; or agency grant policy.
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