Purpose

This bill changes how money collected from a solid waste management tax is allocated. It keeps most revenue in the Environmental Fund but increases the share that goes to the Resource Management Account, with funds eventually used to support counties through the Pollution Control Agency (PCA).

Main provisions

• Allocation baseline: Of the amounts remitted under this tax, 70 percent must continue to be credited to the Environmental Fund.
• New allocation to the Resource Management Account (RMA): Beginning in fiscal year 2024, 3 percent of the tax revenues will be deposited into the Resource Management Account within the Environmental Fund.
• Stepwise increases to RMA share:
  • 7 percent in fiscal year 2026
  • 20 percent in fiscal year 2027
  • 30 percent in fiscal year 2028 and later
• Use of funds in the RMA: Money deposited into the Resource Management Account is appropriated to the Commissioner of the Pollution Control Agency (PCA) for distribution to counties under section 115A.557 subdivision 2, paragraph a, clauses 1–7 and 9–11.
• Remainder to General Fund: The portion not allocated to the RMA through fiscal year 2027 must be deposited into the General Fund.
• Administrative flow: Starting in fiscal year 2024 and each year thereafter, funds in the RMA are appropriated to the PCA for distribution to counties as specified above.

Significant changes to existing law

• Amends Minnesota Statutes 2024 section 297H.13 subdivision 2 to reallocate a growing share of solid waste tax revenues from the General Fund and Environmental Fund into the Resource Management Account, with a defined timetable (3% in 2024, rising to 7% in 2026, 20% in 2027, and 30% from 2028 onward).
• Clarifies that money in the RMA is to be distributed to counties by the PCA under specific statutory criteria (115A.557 subdivision 2, paragraphs a clauses 1–7 and 9–11).

Implementation and fiscal impact

• Effective timeline: Changes begin in fiscal year 2024, with incremental increases in the RMA share through 2028 and beyond.
• Funding flow: Revenues first enter the Environmental Fund; a growing percentage is diverted to the Resource Management Account; those funds are then appropriated to the Pollution Control Agency to distribute to counties, while the remaining funds go to the General Fund through 2027.
• Local distribution: The PCA distributes the RMA funds to counties according to the listed statutory clauses, directing funds to local solid waste and related programs.

Relevant terms - environmental fund - resource management account - Pollution Control Agency (PCA) - general fund - solid waste management tax/revenue - Minnesota Statutes 2024 section 297H.13 subdivision 2 - section 16A.531 subdivision 1 - section 115A.557 subdivision 2 - counties (in the context of distribution) - fiscal year 2024, 2026, 2027, 2028

Note: The summary focuses on the purpose, main provisions, how it changes current law, and how funds would flow under the bill.