SF 1655

as introduced - 89th Legislature (2015 - 2016) Posted on 03/20/2015 09:21am

A bill for an act
relating to natural resources; establishing an environment and natural resources
trust fund payment account; providing trust fund payments to counties;
appropriating money; amending Minnesota Statutes 2014, sections 116P.02,
subdivision 1, by adding a subdivision; 477A.10; 477A.11, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 116P.

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

Section 1.

Minnesota Statutes 2014, section 116P.02, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

The definitions in this section apply to this chapter new text begin ,
except that the definition in subdivision 6 does not apply to section 116P.045 new text end .

Sec. 2.

Minnesota Statutes 2014, section 116P.02, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Land acquisition costs. new text end

new text begin "Land acquisition costs" means acquisition
coordination costs, costs of engineering services, appraisal fees, attorney fees, taxes,
assessments required at the time of purchase, payments under section 116P.045, and
recording fees.
new text end

Sec. 3.

new text begin [116P.045] ENVIRONMENT AND NATURAL RESOURCES TRUST
FUND PAYMENT ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account created. new text end

new text begin An environment and natural resources trust fund
payment account is created in the special revenue fund. The State Board of Investment
must ensure the account is invested under section 11A.24. The commissioner of
management and budget must credit to the account all money appropriated to the account
and all money earned by the account. The principal of the account and any unexpended
earnings must be invested and reinvested by the State Board of Investment. Nothing in
this section limits the source of contributions to the account. Money in the account must
be used only for the purposes of this section.
new text end

new text begin Subd. 2. new text end

new text begin Trust fund payment; appropriation. new text end

new text begin (a) State land acquired in whole or
in part with money appropriated from the environment and natural resources trust fund is
eligible for a onetime trust fund payment as provided under this subdivision. For purposes
of this subdivision, "acquired in part" means that at least 20 percent of the state payment
for the parcel was from money from the environment and natural resources trust fund.
The trust payment is equal to 30 times the property taxes assessed in the year prior to the
year in which the land is acquired. If the land was acquired from a private party that was
exempt from paying property taxes, the payments must be based on 30 times the property
taxes assessed on comparable, privately owned, adjacent land in the year prior to the year
in which the land is acquired. The commissioner of revenue must make a trust payment to
each county on the same date as the first payment under section 273.1384, subdivision
4, each year for all land acquired in that county in the 12-month period ending on June
30 of that year. By September 1 of each year, the county in which the land is acquired
must provide the commissioner of revenue with information necessary to make this
determination for all lands acquired for the 12-month period ending on June 30 of that year.
new text end

new text begin (b) The amount necessary to make the payments required under this subdivision is
annually appropriated from the environment and natural resources trust fund payment
account to the commissioner of revenue.
new text end

new text begin Subd. 3. new text end

new text begin County requirements. new text end

new text begin (a) A county board must:
new text end

new text begin (1) deposit all or part of the trust fund payment received by the commissioner of
revenue under this section into a trust fund as provided under chapter 118A; or
new text end

new text begin (2) enter into an agreement with the State Board of Investment to invest all or part
of the trust fund payment in investments under section 11A.24, subdivisions 1 to 5, on
behalf of the county.
new text end

new text begin (b) For the year in which a trust fund payment is made to a county for a parcel of
land, the county board, by November 15, must withdraw an amount equal to:
new text end

new text begin (1) the remaining taxes owed to the local governments for taxes spread that year
for a parcel acquired between January 1 and June 30; or
new text end

new text begin (2) the amount of taxes paid on the parcel in the previous year if the parcel was
acquired before January 1 of the current year. The county must distribute the amount by
December 15 to all local governments based on the location of the parcel and the local
governments' share of the total tax.
new text end

new text begin (c) By November 15 of each subsequent year, a county board must withdraw an
amount equal to the taxes that would be owed based on the appraised value of the land
in the county for which the county received a trust fund payment under this section, and
the taxes assessed on comparable, privately owned adjacent land, not to exceed 5-1/2
percent of the market value of the trust fund accounts established under this section by the
county or for the benefit of the county as of June 30 of the prior fiscal year. For purposes
of this subdivision, "appraised value" is determined in the manner described in section
477A.12, subdivision 3. The county treasurer must allocate the withdrawn funds among
the county, the school district, the town or home rule charter or statutory city, and special
districts on the same basis as if the funds were taxes on the land received in that year. The
county treasurer must pay the allocation to all eligible local governments by December
15 of the year in which the withdrawal is made. The county's share of the payment must
be deposited in the county general fund.
new text end

new text begin Subd. 4. new text end

new text begin Ineligible for other payments. new text end

new text begin Land receiving a trust fund payment under
this section is not eligible for payments under sections 477A.11 to 477A.14.
new text end

Sec. 4.

Minnesota Statutes 2014, section 477A.10, is amended to read:

477A.10 NATURAL RESOURCES LAND PAYMENTS IN LIEU; PURPOSE.

The purposes of sections 477A.11 to 477A.14 are:

(1) to compensate local units of government for the loss of tax base from state
ownership of land new text begin , except land acquired in whole or in part with money appropriated
from the environment and natural resources trust fund after July 1, 2015, new text end and the need to
provide services for state land;

(2) to address the disproportionate impact of state land ownership on local units of
government with a large proportion of state land; and

(3) to address the need to manage state lands held in trust for the local taxing districts.

Sec. 5.

Minnesota Statutes 2014, section 477A.11, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Environment and natural resources trust fund lands. new text end

new text begin Notwithstanding
any other provision of law to the contrary, natural resource land acquired in whole or in
part with money appropriated from the environment and natural resources trust fund after
July 1, 2015, is not included in the definitions of the lands described in subdivisions 3 to
7, and is excluded from payments under sections 477A.11 to 477A.14. For purposes of
this subdivision, "acquired in part" means that at least 20 percent of the state payment
for the acquisition of the parcel was from money from the environment and natural
resources trust fund.
new text end

Sec. 6. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2016 is appropriated from the environment and natural resources
trust fund to the commissioner of management and budget for deposit into the environment
and natural resources trust fund payment account within the special revenue fund for the
purposes of Minnesota Statutes, section 116P.045.
new text end