Minnesota Session Laws - 2023, Regular Session

CHAPTER 67--H.F.No. 1900

An act

relating to natural resources; proposing an amendment to the Minnesota Constitution, article XI, section 14; providing for renewal of environment and natural resources trust fund and modifying trust fund provisions; establishing community grant program; establishing the community grant program advisory council; requiring a report; appropriating money;

amending Minnesota Statutes 2022, section 116P.03; 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 5-1/2 deleted text end new text begin seven new 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 2025 deleted 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, 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.

Minnesota Statutes 2022, section 116P.03, is amended to read:

116P.03 TRUST FUND NOT TO SUPPLANT EXISTING FUNDING; APPROPRIATIONS.

(a) The trust fund may not be used as a substitute for traditional sources of funding environmental and natural resources activities, but the trust fund shall supplement the traditional sources, including those sources used to support the criteria in section 116P.08, subdivision 1. The trust fund must be used primarily to support activities whose benefits become available only over an extended period of time.

(b) The commission must determine the amount of the state budget spent from traditional sources to fund environmental and natural resources activities before and after the trust fund is established and include a comparison of the amount in the report under section 116P.09, subdivision 7.

(c) For the fiscal year beginning July 1, 2007, and each year thereafter, the amount of the environment and natural resources trust fund that is available for appropriation new text begin under this chapter and new text end under the terms of the Minnesota Constitution, article XI, section 14, shall be appropriated by law.

(d) The amount appropriated from the environment and natural resources trust fund may be spent only for the public purpose of protection, conservation, preservation, and enhancement of the state's air, water, land, fish, wildlife, and other natural resources. Recommendations made by the commission under this chapter must be consistent with the Minnesota Constitution, article XI, section 14; this chapter; and the strategic plan adopted under section 116P.08, subdivision 3, and must demonstrate a direct benefit to the state's environment and natural resources.

new text begin (e) The amount available for appropriation from the environment and natural resources trust fund under this chapter 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, is 5.5 percent of the market value of the fund on June 30 one year before the start of the biennium. 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. 3.

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. 4.

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 Grants. new text end

new text begin (a) Beginning July 1, 2025, each fiscal 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 available for appropriation to the commissioner of natural resources to provide grants under this section for the benefit of current residents and future generations. The commissioner must award grants under this section for purposes authorized under the Minnesota Constitution, article XI, section 14, and expand the number and diversity of recipients who benefit from the environment and natural resources trust fund, especially in communities that have been adversely affected by pollution and environmental degradation. new text end

new text begin (b) A grant may be awarded under this section only for: new text end

new text begin (1) helping adversely impacted communities respond to environmental degradation and related health concerns; new text end

new text begin (2) education and awareness related to stewardship of air, land, water, forests, fish, wildlife, and other natural resources; or new text end

new text begin (3) preserving or enhancing air, land, water, and other natural resources that otherwise may be substantially impaired or destroyed in any area of the state. new text end

new text begin (c) A grant awarded under this section must provide measurable results and may not be awarded to a for-profit business. new text end

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

new text begin (e) Any appropriated funds under this subdivision that are not encumbered before the appropriation expires must be credited to the principal of the trust fund. new text end

new text begin (f) The commissioner may not award a grant under this section to the Department of Natural Resources. new text end

new text begin Subd. 2. new text end

new text begin Capital projects and land acquisition. new text end

new text begin Notwithstanding section 116P.011, the requirements of sections 116P.15 to 116P.21 apply to grants awarded under this section, except that where those sections require a grantee to obtain approval of the Legislative-Citizen Commission on Minnesota Resources for a proposed action a grantee must instead obtain the approval of the commissioner of natural resources. new text end

new text begin Subd. 3. new text end

new text begin Administrative expenses. new text end

new text begin Up to five percent of the money appropriated to the commissioner for grants under this section may be used by the commissioner for administration, outreach, grant monitoring, and advisory council operational support. new text end

new text begin Subd. 4. new text end

new text begin Return of grant money. new text end

new text begin The commissioner must 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 in accordance with the applicable agreement. new text end

new text begin Subd. 5. 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. 5.

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, and the appointees must include: new text end

new text begin (1) two members who are members of the Minnesota Ojibwe Tribe; new text end

new text begin (2) two members who are members of the Minnesota Dakota Tribe; and new text end

new text begin (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. 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 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. new text end

new text begin (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. new text end

new text begin (d) 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 (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. new text end

new text begin (f) 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 Subd. 5. new text end

new text begin Open meetings. new text end

new text begin Meetings of the advisory council must be open to the public and are subject to chapter 13D. 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. 6.

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

Presented to the governor May 23, 2023

Signed by the governor May 26, 2023, 10:15 a.m.