1.1 	A bill for an act
1.2 	relating to natural resources; proposing an amendment to the Minnesota 
1.3 	Constitution, article XI, section 14; proposing modification of constitutional 
1.4 	environment and natural resources trust fund provisions; providing for 
1.5 	expenditures from the clean water legacy account and environment and natural 
1.6 	resources trust fund; modifying disposition of state lottery in lieu tax; modifying 
1.7 	disposition of unclaimed lottery prizes; appropriating money;amending 
1.8 	Minnesota Statutes 2006, sections 114D.45, subdivisions 2, 3, by adding a 
1.9 	subdivision; 116P.08, subdivision 1; 297A.94; 349A.08, subdivision 5; 349A.10, 
1.10 	subdivision 5; proposing coding for new law in Minnesota Statutes, chapter 85.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	ARTICLE 1
1.13 	CONSTITUTIONAL AMENDMENT

1.14 	Section 1. CONSTITUTIONAL AMENDMENT PROPOSED.
 1.15 	An amendment to the Minnesota Constitution is proposed to the people. If the 
1.16 	amendment is adopted, article XI, section 14, will read:

1.17 	Sec. 14.  A  permanent environment and natural resources trust fund is  established 
1.18 	in the state treasury.  Loans may be made of up to  five percent of the principal of the 
1.19 	fund for water system  improvements as provided by law.  The assets of the fund shall  be 
1.20 	appropriated by law for the public purpose of protection,  conservation, preservation, and 
1.21 	enhancement of the state's air,  water, land, fish, wildlife, and other natural resources.  
1.22 	The  amount appropriated each year of a biennium, commencing on July  1 in each 
1.23 	odd-numbered year and ending on and including June 30  in the next odd-numbered year, 
1.24 	may be up to 5-1/2 percent of the  market value of the fund on June 30 one year before 
1.25 	the start of  the biennium and 50 percent of the total deposits to the fund for the preceding 
2.1 	fiscal year.  Not less than ~~40~~ 80 percent of the net proceeds from  any state-operated lottery 
2.2 	must be credited to the fund until  the year ~~2025~~ 2034.   

2.3 	Sec. 2. SUBMISSION TO VOTERS.
 2.4 	The proposed amendment must be submitted to the people at the 2008 general 
2.5 	election. The question submitted must be:
2.6 	"Shall the Minnesota Constitution be amended to modify the amount of the 
2.7 	environment and natural resources trust fund that is available for appropriation each 
2.8 	year, to increase the amount of net proceeds from the state lottery to be credited to the 
2.9 	environment and natural resources trust fund from 40 percent to 80 percent, and to extend 
2.10 	the period for which net proceeds from the state lottery are credited to the environment 
2.11 	and natural resources trust fund by nine years?

2.12 | Yes .......
2.13 | No ......."

2.14 	ARTICLE 2
2.15 	NATURAL RESOURCES FUNDING

2.16 	Section 1. [85.225] PARKS AND TRAILS ACCOUNT.
2.17 	A parks and trails account is created in the natural resources fund. Money deposited 
2.18 	in the natural resources fund under section 349A.08, subdivision 5, and interest earned 
2.19 	thereon, shall be credited to the account. Money in the account is appropriated to the 
2.20 	commissioner of natural resources for the acquisition, operation, and maintenance of 
2.21 	state parks and trails.

2.22 	Sec. 2. Minnesota Statutes 2006, section 114D.45, subdivision 2, is amended to read:
2.23 		Subd. 2.Sources of revenue. The following revenues must be ~~deposited in~~ credited 
2.24 	to the clean water legacy account:
2.25 	(1) money transferred to the account; ~~and~~
2.26 	(2) money credited to the account under section 297A.94, paragraph (g); and
2.27 	~~(2)~~ (3) interest accrued on the account.

2.28 	Sec. 3. Minnesota Statutes 2006, section 114D.45, subdivision 3, is amended to read:
2.29 		Subd. 3.Purposes. Except as provided in subdivision 4 and subject to appropriation 
2.30 	by the legislature, the clean water legacy account may be spent for the following purposes:
2.31 	(1) to provide grants, loans, and technical assistance to public agencies and others 
2.32 	who are participating in the process of identifying impaired waters, developing TMDL's, 
3.1 	implementing restoration plans for impaired waters, and monitoring the effectiveness 
3.2 	of restoration;
3.3 	(2) to support measures to prevent waters from becoming impaired and to improve 
3.4 	the quality of waters that are listed as impaired but do not have an approved TMDL 
3.5 	addressing the impairment;
3.6 	(3) to provide grants and loans for wastewater and storm water treatment projects 
3.7 	through the Public Facilities Authority;
3.8 	(4) to support the efforts of public agencies associated with individual sewage 
3.9 	treatment systems and financial assistance for upgrading and replacing the systems; and 
3.10 	(5) to provide funds to state agencies to carry out their responsibilities under this 
3.11 	chapter.

3.12 	Sec. 4. Minnesota Statutes 2006, section 114D.45, is amended by adding a subdivision 
3.13 	to read:
3.14 		Subd. 4.Lottery proceeds; expenditures. Subject to appropriation by the 
3.15 	legislature, money credited to the account according to section 297A.94, paragraph (g), 
3.16 	must be spent for monitoring and assessment of state waters.

3.17 	Sec. 5. Minnesota Statutes 2006, section 116P.08, subdivision 1, is amended to read:
3.18 		Subdivision 1.Expenditures. Money in the trust fund may be spent only for:
3.19 	(1) the reinvest in Minnesota program as provided in section 84.95, subdivision 2; 
3.20 	(2) research that contributes to increasing the effectiveness of protecting or managing 
3.21 	the state's environment or natural resources;
3.22 	(3) collection and analysis of information that assists in developing the state's 
3.23 	environmental and natural resources policies;
3.24 	(4) enhancement of public education, awareness, and understanding necessary for 
3.25 	the protection, conservation, restoration, and enhancement of air, land, water, forests, 
3.26 	fish, wildlife, and other natural resources;
3.27 	(5) capital projects for the preservation and protection of unique natural resources;
3.28 	(6) activities that preserve or enhance fish, wildlife, land, air, water, and other natural 
3.29 	resources that otherwise may be substantially impaired or destroyed in any area of the state;
3.30 	(7) acquiring natural areas in fee and obtaining permanent conservation easements 
3.31 	from willing landowners;
3.32 	(8) operating and maintaining lands and easements retained by the state;
3.33 	~~(7)~~ (9) administrative and investment expenses incurred by the State Board of 
3.34 	Investment in investing deposits to the trust fund; and
4.1 	~~(8)~~ (10) administrative expenses subject to the limits in section 116P.09. 

4.2 	Sec. 6. Minnesota Statutes 2006, section 297A.94, is amended to read:
4.3 	297A.94 DEPOSIT OF REVENUES.
4.4 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
4.5 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
4.6 	treasury and credit them to the general fund.
4.7 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
4.8 	account in the special revenue fund if:
4.9 	(1) the taxes are derived from sales and use of property and services purchased for 
4.10 	the construction and operation of an agricultural resource project; and
4.11 	(2) the purchase was made on or after the date on which a conditional commitment 
4.12 	was made for a loan guaranty for the project under section 41A.04, subdivision 3. 
4.13 	The commissioner of finance shall certify to the commissioner the date on which the 
4.14 	project received the conditional commitment. The amount deposited in the loan guaranty 
4.15 	account must be reduced by any refunds and by the costs incurred by the Department of 
4.16 	Revenue to administer and enforce the assessment and collection of the taxes.
4.17 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
4.18 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
4.19 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
4.20 	as follows: 
4.21 	(1) first to the general obligation special tax bond debt service account in each fiscal 
4.22 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and 
4.23 	(2) after the requirements of clause (1) have been met, the balance to the general 
4.24 	fund.
4.25 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
4.26 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
4.27 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
4.28 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
4.29 	subdivision 5, for the previous calendar year. 
4.30 	(e) For ~~fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and~~ 
4.31 	~~for~~ fiscal year ~~2004~~ 2009 and thereafter, ~~72.43~~ 78 percent of the revenues, including 
4.32 	interest and penalties, transmitted to the commissioner under section 297A.65, must be 
4.33 	deposited by the commissioner in the state treasury as follows: 
4.34 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
4.35 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
5.1 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
5.2 	of land, water, and other natural resources of the state;
5.3 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
5.4 	may be spent only for state parks and trails;
5.5 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
5.6 	may be spent only on metropolitan park and trail grants;
5.7 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
5.8 	may be spent only on local trail grants; and
5.9 	(5) two percent of the receipts must be deposited in the natural resources fund, 
5.10 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
5.11 	Conservatory, and the Duluth Zoo.
5.12 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
5.13 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
5.14 	shall supplement traditional sources of funding for those purposes. Land acquired with 
5.15 	money deposited in the game and fish fund under paragraph (e) must be open to public 
5.16 	hunting and fishing during the open season, except that in aquatic management areas or 
5.17 	on lands where angling easements have been acquired, fishing may be prohibited during 
5.18 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
5.19 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
5.20 	and wildlife resources under paragraph (e) must be allocated for field operations.
5.21 	(g) For fiscal year 2009 and thereafter, 22 percent of the revenue, including interest 
5.22 	and penalties, transmitted to the commissioner under section 297A.65 must be deposited 
5.23 	in the state treasury and credited to the clean water legacy account in the environmental 
5.24 	fund for monitoring and assessment of state waters.

5.25 	Sec. 7. Minnesota Statutes 2006, section 349A.08, subdivision 5, is amended to read:
5.26 		Subd. 5.Payment; unclaimed prizes. A prize in the state lottery must be claimed 
5.27 	by the winner within one year of the date of the drawing at which the prize was awarded 
5.28 	or the last day sales were authorized for a game where a prize was determined in a manner 
5.29 	other than by means of a drawing. If a valid claim is not made for a prize payable directly 
5.30 	by the lottery by the end of this period, the prize money is considered unclaimed and the 
5.31 	winner of the prize shall have no further claim to the prize. A prize won by a person 
5.32 	who purchased the winning ticket in violation of section 349A.12, subdivision 1, or won 
5.33 	by a person ineligible to be awarded a prize under subdivision 7 must be treated as an 
5.34 	unclaimed prize under this section. The director must transfer all unclaimed prize money 
5.35 	at the end of each fiscal year from the lottery cash flow account to the ~~general~~ natural 
6.1 	resources fund for the public purpose of enhancement of the state's natural resources by 
6.2 	providing for parks and trails acquisitions, operations, and maintenance. 

6.3 	Sec. 8. Minnesota Statutes 2006, section 349A.10, subdivision 5, is amended to read:
6.4 		Subd. 5.Deposit of net proceeds. Within 30 days after the end of each month, the 
6.5 	director shall deposit in the state treasury the net proceeds of the lottery, which is the 
6.6 	balance in the lottery fund after transfers to the lottery prize fund and credits to the lottery 
6.7 	operations account. Of the net proceeds, ~~40~~ 80 percent must be credited to the Minnesota 
6.8 	environment and natural resources trust fund and the remainder must be credited to the 
6.9 	general fund.

6.10 	Sec. 9. EFFECTIVE DATE.
 6.11 	Sections 1 to 8 are effective July 1, 2009, if the constitutional amendment proposed 
6.12 	in article 1 is adopted by the voters.