Purpose

• The bill aims to regulate the manufacture, sale, and use of fireworks and to dedicate a portion of revenues from the sale of certain fireworks for public safety purposes. It also makes extensive changes to how general tax revenues are deposited and allocated to various state funds and accounts.

Main Provisions

• Revenue deposits and allocations (general framework)

  • Replaces or updates how revenues from taxes are deposited into the state treasury and then distributed among funds, including the general fund, special revenue funds, and several dedicated accounts.
  • Establishes a priority and schedule for depositing revenues to specific accounts and funds, with some amounts reserved for debt service, road funding, and long-term transportation-related purposes.

• Highway and transportation funding

  • Starting in certain years, revenues from specific taxes are deposited into the highway user tax distribution fund (HUTDF) and allocated to transportation-related accounts, with explicit annual or phased targets.
  • Includes a mechanism to estimate and deposit a portion of revenues from motor vehicle repair and replacement parts into the HUTDF, with specified percentages allocated to the transportation advancement account and other transportation-related uses.

• Game and fish, natural resources, and outdoors funding

  • A large portion of revenues under the bill is dedicated to the Game and Fish Fund and the Natural Resources Fund, with detailed percentage breakdowns for:
  • Heritage enhancement account (Game and Fish Fund)
  • State parks and trails (Natural Resources Fund)
  • Metropolitan and local trail grants
  • Minnesota Zoological Garden, Como Park Zoo and Conservatory, and the Duluth Zoo
  • Pollinator account
  • Regional parks and trails account (outside the seven-county metro area)
  • Outdoor recreational opportunities for underserved communities account
  • For the Game and Fish Fund improvements, at least a substantial majority (e.g., 87%) must go to field operations related to fish and wildlife resources.

• Use and limits of funds

  • The dedicated revenue may not substitute traditional funding sources; it is intended to supplement existing funding.
  • Land acquired with Game and Fish Fund money must be open to public hunting and fishing, with potential seasonal restrictions in aquatic management areas or where angling easements exist.
  • A portion of revenue allocated to the Game and Fish Fund for improvements must primarily support field operations rather than other uses.

• Items regulated under 624.20 (sale to adults)

  • Revenues derived from the sale of items regulated under Minnesota Statutes section 624.20, which may be sold to individuals 18 or older and not prohibited under 624.21, are divided between:
  • A dedicated portion to the Volunteer Fire Assistance Grant Account
  • A dedicated portion to the Fire Safety Account
  • The remainder to the General Fund
  • A separate subsection ties the percentage to a historical baseline (referenced as a set percentage from a 2017 law) and ensures annual updates.

• Aerial and audible devices

  • Beginning with sales taxes remitted after June 30, 2025, revenues from the sale of aerial and audible devices are split with 25% to the Volunteer Fire Assistance Grant Account, 25% to the Fire Safety Account, and the remainder to the General Fund. The percentage is applied to revenues including penalties and interest but excluding refunds.

• Constituent protections and governance

  • The legislation emphasizes that dedicated revenue should supplement, not replace, traditional funding sources for the programs it supports.
  • It includes annual or phased schedules and requires estimation and transfers to relevant funds to meet those schedules.

Significant Changes to Existing Law

• Substantial reallocation of tax revenues

  • The bill creates a complex, multi-fund allocation scheme that moves substantial portions of various tax revenues away from a pure general fund approach and toward dedicated accounts focused on wildlife, natural resources, parks, trails, pollinators, and public safety.

• Fire safety and public safety funding

  • Revenues from regulated items (and later aerial/audible devices) are explicitly earmarked for volunteer fire assistance and fire safety programs, expanding the traditional funding pathways for these public safety initiatives.

• Expanded outdoor and conservation funding

  • Augments funding streams for parks, trails (including regional and local), conservation, habitat preservation, and underserved outdoor recreation opportunities, with detailed percent shares and eligibility restrictions.

• Public access and use requirements

  • Places conditions on land acquired with certain funds (public hunting and fishing access) and emphasizes field operations in wildlife and habitat improvements.

• Long-run funding structure

  • Introduces long-term, time-bound expenditure rules (with specified fiscal year targets through 2033 and beyond) for portions of revenue directed to transportation, natural resources, and related accounts.

How This Affects Minnesota Law (in Plain Terms)

• Taxes collected in Minnesota will be distributed to a larger set of dedicated funds than before, with explicit percentages and time-based schedules.
• Fireworks revenue, and later revenues from aerial and audible devices, will support public safety and fire services.
• Wildlife, parks, trails, and outdoor recreation for underserved communities receive more stable funding, with conditions to ensure funds support on-the-ground operations and public access.
• The general fund will still receive revenue, but a substantial portion will be dedicated to specific public safety, environmental, and transportation purposes.

Relevant Terms - fireworks - public safety - revenue deposits - general fund - highway user tax distribution fund (HUTDF) - special revenue fund - transportation advancement account - game and fish fund - heritage enhancement account - natural resources fund - state parks and trails - metropolitan park and trail grants - local trail grants - Minnesota Zoological Garden - Como Park Zoo and Conservatory - Duluth Zoo - pollinator account - regional parks and trails account - outdoor recreational opportunities for underserved communities account - volunteer fire assistance grant account - fire safety account - items regulated under section 624.20 - 624.21 - aerial and audible devices - field operations (in game and fish funding) - public access to land bought with game and fish funds