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HF 4649

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 05/12/2022 07:23pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to state government; proposing an amendment to the Minnesota
Constitution, article XI, section 14; providing for renewal and modification of
environment and natural resources trust fund; providing for housing fund and
Housing Fund Council; modifying lottery provisions; appropriating money;
amending Minnesota Statutes 2020, sections 349A.08, subdivision 5; 349A.10,
subdivision 5; proposing coding for new law in Minnesota Statutes, chapter 462A.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT

Section 1. new text beginCONSTITUTIONAL 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 deleted text beginisdeleted text endnew text begin and a housing
fund are
new text end established in the state treasury. deleted text beginLoans 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
new text begin environment and natural resources trust new text endfund 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 resourcesnew text begin and for addressing climate change. The assets
of the environment and natural resources trust fund shall not be used to pay the principal
or interest of any bonds. The assets of the environment and natural resources trust 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 appropriatednew text begin from the environment and natural resources
trust fund
new text end 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. deleted text beginNot
less than 40
deleted text endnew text begin The assets of the housing fund shall be appropriated to provide housing, improve
housing affordability, and increase homeownership. Until the year 2050, 50
new text end percent of the
net proceeds from any state-operated lottery must be credited to the new text beginenvironment and natural
resources trust
new text endfund deleted text beginuntil the year 2025deleted text endnew text begin, and the remaining 50 percent of the net proceeds
must be credited to the housing fund
new text end.

Sec. 2. new text beginSUBMISSION TO VOTERS.
new text end

new text begin (a) The proposed amendment must be submitted to the people at the 2022 general election.
The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to protect drinking water sources; protect
the water quality of lakes, rivers, and streams; protect forests to improve air quality, wildlife
habitat, natural areas, parks, and trails; and address climate change by extending from 2025
until 2050 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; to limit the uses of trust fund money; and to
transfer the remaining 50 percent of the net proceeds from the state-operated lottery to a
new housing fund to provide housing, improve housing affordability, and increase
homeownership?
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 and Housing Fund Creation."
new text end

ARTICLE 2

STATUTORY CHANGES

Section 1.

Minnesota Statutes 2020, 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 begingeneraldeleted text endnew text begin environment and natural
resources trust
new text end fund.

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 2022 general election, this section is effective January 1, 2023.
new text end

Sec. 2.

Minnesota Statutes 2020, 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 begin40deleted text endnew text begin 50new text end percent must be credited to the Minnesota environment
and natural resources trust fund and deleted text beginthe remainderdeleted text endnew text begin 50 percentnew text end must be credited to the deleted text begingeneraldeleted text endnew text begin
housing
new text end fund.

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 2022 general election, this section is effective January 1, 2023.
new text end

Sec. 3.

new text begin [462A.50] HOUSING FUND; HOUSING FUND COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Housing fund. new text end

new text begin A housing fund, under article XI, section 14, of the
Minnesota Constitution, is established as an account in the state treasury. All money earned
by the housing fund must be credited to the fund. Money in the account is appropriated to
the commissioner of the Minnesota Housing Finance Agency and may be spent only to
provide housing, improve housing affordability, and increase homeownership, including
but not limited to building and refurbishing affordable housing, mitigating resident
displacement, improving housing conditions, providing climate-resilient and sustainable
housing, and reducing harmful environmental and health impacts related to housing.
new text end

new text begin Subd. 2. new text end

new text begin Housing Fund Council. new text end

new text begin (a) A Housing Fund Council consisting of nine
members appointed by the governor is created. Members of the council include:
new text end

new text begin (1) two public members who are developers who identify as Black, Indigenous, or people
of color;
new text end

new text begin (2) two public members who are or have been houseless at the time of appointment;
new text end

new text begin (3) three public members who are renters at the time of appointment; and
new text end

new text begin (4) two public members who are realtors working with first-time home buyers.
new text end

new text begin (b) Members must not be registered lobbyists. Five members must be from the
seven-county metropolitan area and four members must be from outside the seven-county
metropolitan area. The appointments to the council are subject to the advice and consent of
the senate.
new text end

new text begin (c) Members serve four-year terms and may not serve for more than three terms. Members
continue to serve until their successors are appointed.
new text end

new text begin (d) Terms, compensation, and removal of members are as provided in section 15.059.
A vacancy on the council may be filled by the governor for the remainder of the unexpired
term.
new text end

new text begin (e) Members must elect a chair and other officers as determined by the council. The
chair may convene meetings as necessary to conduct the duties prescribed by this section.
new text end

new text begin (f) The Minnesota Housing Finance Agency must provide administrative support for
the council.
new text end

new text begin Subd. 3. new text end

new text begin Council recommendations. new text end

new text begin (a) The Housing Fund Council must make
recommendations on spending money from the housing fund that are consistent with the
constitution and state law. The recommendations must be submitted to the commissioner
of the Minnesota Housing Finance Agency for consideration.
new text end

new text begin (b) Recommendations of the council, including approval of recommendations for the
housing fund, require an affirmative vote of at least seven members of the council.
new text end

new text begin (c) When making recommendations, the council must give priority to projects that build
or preserve housing that is affordable to households with incomes at or below 30 percent
of the area median income.
new text end

new text begin Subd. 4. new text end

new text begin Conflict of interest. new text end

new text begin A Housing Fund Council member may not participate in
or vote on a decision of the council relating to an organization in which the member has
either a direct or indirect personal financial interest. While serving on the Housing Fund
Council, a member must avoid any potential conflict of interest.
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 2022 general election, this section is effective January 1, 2023.
new text end

Sec. 4. new text beginINITIAL APPOINTMENTS AND FIRST MEETING.
new text end

new text begin (a) Initial appointments to the Housing Fund Council must be made by February 1, 2023.
The first meeting of the Housing Fund Council must be convened by the commissioner of
the Minnesota Housing Finance Agency by June 15, 2023. The Housing Fund Council must
select a chair from its membership at its first meeting.
new text end

new text begin (b) Members of the Housing Fund Council must initially be appointed according to the
following schedule of terms:
new text end

new text begin (1) four members appointed by the governor for a term ending the first Monday in
January 2025; and
new text end

new text begin (2) five citizen members appointed by the governor for a term ending the first Monday
in January 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 2022 general election, this section is effective January 1, 2023.
new text end