1.1 	A bill for an act
1.2 	relating to natural resources; proposing an amendment
1.3 	to the Minnesota Constitution, by adding a section to
1.4 	article XI; dedicating the sales tax receipts equal to
1.5 	a sales tax of 1/8 of one percent on taxable sales for
1.6 	natural resource purposes; amending Minnesota Statutes
1.7 	2004, section 297A.94; proposing coding for new law in
1.8 	Minnesota Statutes, chapter 84.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	ARTICLE 1
1.11 	CONSTITUTIONAL AMENDMENT

1.12 	Section 1. CONSTITUTIONAL AMENDMENT.
 1.13 	An amendment to the Minnesota Constitution is proposed to
1.14 	the people.  If the amendment is adopted, a section will be
1.15 	added to article XI, to read:
1.16 	Sec. 15.  Beginning July 1, 2007, the sales and use tax
1.17 	receipts equal to the state sales and use tax of 1/8 of one
1.18 	percent on sales and uses taxable under the general state sales
1.19 	and use tax law, plus penalties and interest and reduced by any
1.20 	refunds, are dedicated primarily to provide hunter and angler
1.21 	access or improve, enhance, or protect game and fish habitat.
1.22 	Receipts shall be deposited in the game and fish heritage fund,
1.23 	which is created in the state treasury.  The money dedicated
1.24 	under this section shall be appropriated by law and shall not be
1.25 	used as a substitute for traditional funding sources for the
1.26 	purposes specified, but the dedicated money shall supplement
1.27 	traditional sources of funding for those purposes.  Easements
2.1 	acquired with money deposited in the game and fish heritage fund
2.2 	under this section must be open to public taking of game and
2.3 	fish during the open season.

2.4 	Sec. 2. SUBMISSION TO VOTERS.
 2.5 	The proposed amendment shall be submitted to the people at
2.6 	the 2006 general election.  The question submitted shall be:
2.7 	"Shall the Minnesota Constitution be amended to provide
2.8 	funding beginning July 1, 2007, primarily to provide hunter and
2.9 	angler access or improve, enhance, or protect game and fish
2.10 	habitat by dedicating the sales and use tax receipts equal to
2.11 	the state sales and use tax of 1/8 of one percent on taxable
2.12 	sales? 
2.13 	Yes .......
2.14 	                                   No ........" 

2.15 	Sec. 3. EFFECTIVE DATE.
 2.16 	Sections 1 and 2 apply to sales and uses occurring after
2.17 	June 30, 2007.

2.18 	ARTICLE 2
2.19 	CONFORMING CHANGES

2.20 	Section 1. [84.946] GAME AND FISH HERITAGE FUND.
2.21 	The commissioner of natural resources, in cooperation with
2.22 	the Board of Water and Soil Resources, shall submit
2.23 	recommendations to the legislature by January 1 of each
2.24 	odd-numbered year for expenditures from the game and fish
2.25 	heritage fund.  The recommendations must be for projects that
2.26 	provide hunter and angler access or improve, enhance, or protect
2.27 	game and fish habitat.  Money in the fund may be appropriated
2.28 	for the administrative costs of the commissioner and Board of
2.29 	Water and Soil Resources under this section, but must not exceed
2.30 	five percent of the total amount biannually appropriated from
2.31 	the fund for nonadministrative costs.

2.32 	Sec. 2. Minnesota Statutes 2004, section 297A.94, is
2.33 	amended to read:
2.34 	297A.94 DEPOSIT OF REVENUES.
2.35 	(a) Except as provided in this section and the Minnesota
2.36 	Constitution, article XI, section 15, the commissioner shall
3.1 	deposit the revenues, including interest and penalties, derived
3.2 	from the taxes imposed by this chapter in the state treasury and
3.3 	credit them to the general fund.
3.4 	(b) The commissioner shall deposit taxes in the Minnesota
3.5 	agricultural and economic account in the special revenue fund if:
3.6 	(1) the taxes are derived from sales and use of property
3.7 	and services purchased for the construction and operation of an
3.8 	agricultural resource project; and
3.9 	(2) the purchase was made on or after the date on which a
3.10 	conditional commitment was made for a loan guaranty for the
3.11 	project under section 41A.04, subdivision 3.
3.12 	The commissioner of finance shall certify to the commissioner
3.13 	the date on which the project received the conditional
3.14 	commitment.  The amount deposited in the loan guaranty account
3.15 	must be reduced by any refunds and by the costs incurred by the
3.16 	Department of Revenue to administer and enforce the assessment
3.17 	and collection of the taxes.
3.18 	(c) The commissioner shall deposit the revenues, including
3.19 	interest and penalties, derived from the taxes imposed on sales
3.20 	and purchases included in section 297A.61, subdivision 3,
3.21 	paragraph (g), clauses (1) and (4), in the state treasury, and
3.22 	credit them as follows:
3.23 	(1) first to the general obligation special tax bond debt
3.24 	service account in each fiscal year the amount required by
3.25 	section 16A.661, subdivision 3, paragraph (b); and
3.26 	(2) after the requirements of clause (1) have been met, the
3.27 	balance to the general fund.
3.28 	(d) The commissioner shall deposit the revenues, including
3.29 	interest and penalties, collected under section 297A.64,
3.30 	subdivision 5, in the state treasury and credit them to the
3.31 	general fund.  By July 15 of each year the commissioner shall
3.32 	transfer to the highway user tax distribution fund an amount
3.33 	equal to the excess fees collected under section 297A.64,
3.34 	subdivision 5, for the previous calendar year.
3.35 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002
3.36 	and 2003, 87 percent; and for fiscal year 2004 and thereafter,
4.1 	72.43 percent of the revenues, including interest and penalties,
4.2 	transmitted to the commissioner under section 297A.65, must be
4.3 	deposited by the commissioner in the state treasury as follows:
4.4 	(1) 50 percent of the receipts must be deposited in the
4.5 	heritage enhancement account in the game and fish fund, and may
4.6 	be spent only on activities that improve, enhance, or protect
4.7 	fish and wildlife resources, including conservation,
4.8 	restoration, and enhancement of land, water, and other natural
4.9 	resources of the state;
4.10 	(2) 22.5 percent of the receipts must be deposited in the
4.11 	natural resources fund, and may be spent only for state parks
4.12 	and trails;
4.13 	(3) 22.5 percent of the receipts must be deposited in the
4.14 	natural resources fund, and may be spent only on metropolitan
4.15 	park and trail grants;
4.16 	(4) three percent of the receipts must be deposited in the
4.17 	natural resources fund, and may be spent only on local trail
4.18 	grants; and
4.19 	(5) two percent of the receipts must be deposited in the
4.20 	natural resources fund, and may be spent only for the Minnesota
4.21 	Zoological Garden, the Como Park Zoo and Conservatory, and the
4.22 	Duluth Zoo.
4.23 	(f) The revenue dedicated under paragraph (e) may not be
4.24 	used as a substitute for traditional sources of funding for the
4.25 	purposes specified, but the dedicated revenue shall supplement
4.26 	traditional sources of funding for those purposes.  Land
4.27 	acquired with money deposited in the game and fish fund under
4.28 	paragraph (e) must be open to public hunting and fishing during
4.29 	the open season, except that in aquatic management areas or on
4.30 	lands where angling easements have been acquired, fishing may be
4.31 	prohibited during certain times of the year and hunting may be
4.32 	prohibited.  At least 87 percent of the money deposited in the
4.33 	game and fish fund for improvement, enhancement, or protection
4.34 	of fish and wildlife resources under paragraph (e) must be
4.35 	allocated for field operations.

4.36 	Sec. 3. EFFECTIVE DATE.
 5.1 	Sections 1 and 2 are effective July 1, 2007, if the
5.2 	constitutional amendment proposed in article 1 is adopted by the
5.3 	voters.