S.F. _____ SUBCHAPTER I 1 GENERAL PROVISIONS 2 Section 1. NEW SECTION . 461.1 Title. 3 This Act shall be known and may be cited as the natural 4 resources and outdoor recreation Act. 5 Sec. 2. NEW SECTION . 461.2 Definitions. 6 As used in this chapter, unless the context otherwise 7 requires: 8 1. “Department” means the department of agriculture and 9 land stewardship, the department of natural resources, or the 10 department of transportation. 11 2. “Fiscal year” means the state fiscal year effective as 12 provided in section 3.12. 13 3. “Initiative” includes a program, project, practice, 14 strategy, or plan established or administered by an agency that 15 furthers a constitutional purpose as provided in section 461.3. 16 4. “Recreational purpose” includes hunting, trapping, 17 angling, horseback riding, swimming, boating, camping, 18 picnicking, hiking, bird watching, nature study, water skiing, 19 snowmobiling, other summer and winter sports, and viewing or 20 enjoying historical, archaeological, scenic, or scientific 21 sites. 22 5. “Trust fund” means the natural resources and outdoor 23 recreation trust fund created in section 461.3. 24 6. “Trust fund moneys” means moneys originating from the 25 natural resources and outdoor recreation trust fund. 26 Sec. 3. NEW SECTION . 461.3 Constitutional purpose and 27 implementation. 28 1. This chapter is created for the constitutional purposes 29 of protecting and enhancing water quality and natural areas 30 in this state including parks, trails, and fish and wildlife 31 habitat, and conserving agricultural soils in this state. 32 2. This chapter is intended to implement Article VII, 33 section 10 of the Constitution of the State of Iowa by 34 establishing the natural resources and outdoor recreation 35 -1- LSB 5177SC (2) 83 da/nh 1/ 13

S.F. _____ trust fund, accounts in the trust fund, and appropriating or 1 allocating trust fund moneys to support initiatives specified 2 in subchapter IV. 3 SUBCHAPTER II 4 PARTICIPATION 5 Sec. 4. NEW SECTION . 461.11 Departmental consultation. 6 1. When making decisions regarding the expenditure of 7 trust fund moneys affecting soil and water conservation, the 8 secretary of agriculture shall regularly consult with the 9 soil conservation committee established in section 161A.4. 10 When making decisions regarding the expenditure of trust fund 11 moneys affecting natural resources and outdoor recreation the 12 director of the department of natural resources shall regularly 13 consult with the natural resource commission established 14 pursuant to section 455A.5. When making decisions regarding 15 the expenditure of trust fund moneys affecting trails, the 16 department of transportation shall consult with the state 17 transportation commission as provided in chapter 307A. 18 2. The heads of each department receiving trust fund moneys 19 shall regularly meet and whenever practicable collaborate in 20 decision-making including by adopting rules, establishing 21 funding priorities, and determining when it is beneficial to 22 provide joint funding of initiatives. 23 SUBCHAPTER III 24 ADMINISTRATION 25 Sec. 5. NEW SECTION . 461.21 Audit. 26 1. The treasurer of state shall certify monthly that trust 27 fund moneys are allocated to the various funds and accounts as 28 provided in subchapter IV. 29 2. The auditor of state or a certified public accounting 30 firm appointed by the auditor of state shall conduct an annual 31 audit of the trust fund and all accounts and transactions of 32 the trust fund and accounts. 33 3. The auditor of state or the certified public accounting 34 firm appointed by the auditor as provided in subsection 2 shall 35 -2- LSB 5177SC (2) 83 da/nh 2/ 13

S.F. _____ be paid from trust fund moneys without reducing the percentage 1 of trust fund moneys distributed to any one account established 2 pursuant to this chapter. 3 Sec. 6. NEW SECTION . 461.22 Report. 4 The three departments together with the treasurer of state 5 and the auditor of state shall jointly prepare and submit to 6 the governor and the general assembly not later than January 7 15 of each year a complete report in an electronic format 8 detailing all of the following: 9 1. A description of public hearings and meetings required 10 to be conducted pursuant to subchapter II, any results that 11 impacted upon departmental decision-making, and a plan for 12 conducting public hearings and meetings in the following year. 13 2. The receipts and expenditures of the trust fund and its 14 accounts, a summary of initiatives supported by trust fund 15 moneys, the results of those expenditures, any performance 16 goals or measurements, and plans for future short-term or 17 long-term expenditures. 18 3. Recommendations to the general assembly, including 19 legislation proposed by one or more of the departments. 20 Sec. 7. NEW SECTION . 461.23 Rules. 21 The treasurer of state, the auditor of state, the 22 department of revenue, and the department of agriculture and 23 land stewardship, the department of natural resources, and 24 department of transportation shall adopt rules separately or 25 jointly as necessary in order to implement and administer this 26 chapter. 27 SUBCHAPTER IV 28 NATURAL RESOURCES AND OUTDOOR RECREATION TRUST FUND 29 AND DISTRIBUTIONS TO SUPPORT DEDICATED PURPOSES 30 Sec. 8. NEW SECTION . 461.31 Natural resources and outdoor 31 recreation trust fund —— creation. 32 A natural resources and outdoor recreation trust fund is 33 created within the state treasury. 34 1. The trust fund shall be composed of moneys required to 35 -3- LSB 5177SC (2) 83 da/nh 3/ 13

S.F. _____ be credited to the trust fund by law and moneys accepted by 1 a department for placement in an account established in this 2 subchapter and from any source. 3 2. Trust fund moneys are exclusively appropriated by law 4 to carry out the constitutional purposes provided in section 5 461.3. 6 3. Trust fund moneys shall supplement and not replace 7 moneys appropriated by the general assembly to support the 8 constitutional purposes provided in section 461.3. 9 4. Trust fund moneys shall only be used to support voluntary 10 initiatives and shall not be used for regulatory efforts, 11 enforcement actions, or litigation. 12 5. In administering a trust fund account, a department 13 may contract, sue and be sued, and authorize payment for 14 costs, fees, commissions, and other reasonable expenses from 15 the account. However, a department shall not in any manner 16 directly or indirectly pledge the credit of this state. 17 6. Notwithstanding section 8.33, any unexpended balance in 18 the trust fund or in an account created within the trust fund 19 at the end of each fiscal year shall be retained in the trust 20 fund or the respective account. Notwithstanding section 12C.7, 21 subsection 2, interest or earnings on investments or time 22 deposits of the moneys in the trust fund and its respective 23 accounts shall be credited to the trust fund and its respective 24 accounts. The recapture of awards originating from an account 25 and other repayments to an account shall be retained in that 26 account. 27 Sec. 9. NEW SECTION . 461.32 Outdoor recreation account 28 —— allocations. 29 An outdoor recreation account is created in the trust fund. 30 Twenty-three percent of the moneys credited to the trust fund 31 shall be allocated to the account. 32 1. The account shall be used by the department of natural 33 resources to support all of the following initiatives: 34 a. The maintenance and improvement of state parks, state 35 -4- LSB 5177SC (2) 83 da/nh 4/ 13

S.F. _____ preserves, wildlife areas, wildlife habitats, native prairies, 1 and wetlands. 2 b. Wildlife diversity. 3 c. Recreational purposes. 4 d. Technical assistance and financial incentives to private 5 landowners to promote the management of forests, fisheries, 6 wetlands, and wildlife. 7 e. The improvement of water trails, rivers, and streams. 8 f. Education and outreach that provide instruction regarding 9 natural history and the outdoors. The subjects of such 10 instruction may relate to opportunities involving recreational 11 purposes, outdoor safety, and ethics. 12 g. State conservation law enforcement. 13 2. The department of natural resources shall to every extent 14 possible consider its comprehensive plan provided in section 15 456A.31 when making funding decisions. 16 3. The department of natural resources may allocate trust 17 fund moneys to the state fish and game protection fund, the 18 state conservation fund, or the county conservation board fund, 19 all as created in section 456A.17, or the forestry management 20 and enhancement fund created in section 456A.21. 21 Sec. 10. NEW SECTION . 461.33 Soil conservation and water 22 protection account —— allocations. 23 A soil conservation and water protection account is created 24 in the trust fund. Twenty percent of the moneys credited to 25 the trust fund shall be allocated to the account. 26 1. The account shall be used by the department of 27 agriculture and land stewardship to support all of the 28 following initiatives: 29 a. Soil conservation and watershed protection, including 30 by supporting the soil conservation division of the department 31 of agriculture and land stewardship and soil and water 32 conservation district commissioners. The department may 33 provide for the installation of conservation practices and 34 watershed protection improvements as provided in chapters 161A, 35 -5- LSB 5177SC (2) 83 da/nh 5/ 13

S.F. _____ 161C, 461A, 466, and 466A. 1 b. The conservation of highly erodible land. The department 2 of agriculture and land stewardship may execute contracts with 3 private landowners who agree to reserve such land only for uses 4 that prevent erosion in excess of the applicable soil loss 5 limits as established in section 161A.44. 6 c. Soil conservation or crop management practices used 7 on land producing biomass as a feedstock for biorefineries, 8 including cellulosic ethanol production. 9 2. The department of agriculture and land stewardship may 10 use the account to provide financial incentives or technical 11 assistance to landowners. 12 3. The department of agriculture and land stewardship 13 may allocate trust fund moneys to the conservation practices 14 revolving loan fund established in section 161A.71, the 15 blufflands protection program and revolving fund created in 16 section 161A.80, the Loess hills development and conservation 17 fund created in section 161D.2, the southern Iowa development 18 and conservation fund created in section 161D.12, and the 19 agricultural drainage well water quality assistance fund 20 created in section 460.303. 21 Sec. 11. NEW SECTION . 461.34 Watershed protection account 22 —— allocations. 23 A watershed protection account is created in the trust fund. 24 Fourteen percent of the moneys credited to the trust fund shall 25 be allocated to the account. 26 1. The account shall be used cooperatively by the department 27 of natural resources and the department of agriculture and land 28 stewardship to support all of the following initiatives: 29 a. Water resource projects administered by the department 30 of natural resources to preserve watersheds, including but not 31 limited to all of the following: 32 (1) Projects to protect, restore, or enhance water quality 33 in the state through the provision of financial assistance to 34 communities for impairment-based, locally directed watershed 35 -6- LSB 5177SC (2) 83 da/nh 6/ 13

S.F. _____ projects. The department may use the account to support the 1 water resource restoration sponsor program as provided in 2 section 455B.199. 3 (2) Regional and community watershed assessment, planning, 4 and prioritization efforts, including as provided in chapter 5 466B. 6 b. Surface water protection projects and practices 7 administered by the department of agriculture and land 8 stewardship or the department of natural resources, including 9 but not limited to the installation of permanent vegetation 10 cover, filter strips, grass waterways, and riparian forest 11 buffers; dredging; and bank stabilization. The departments 12 of agriculture and land stewardship and natural resources 13 may use the account to support the conservation buffer strip 14 program provided in section 466.4 and the conservation reserve 15 enhancement program as provided in section 466.5. 16 2. The departments’ decision to prioritize initiatives may 17 be based on the priority list of watersheds provided in section 18 456A.33A. 19 3. The department of agriculture and land stewardship may 20 allocate trust fund moneys to the water protection fund created 21 in section 161C.4, the organic nutrient management fund created 22 pursuant to section 161C.5, or the watershed improvement fund 23 created in section 466A.2. 24 Sec. 12. NEW SECTION . 461.35 Iowa resources enhancement and 25 protection fund —— allocation. 26 Thirteen percent of the moneys credited to the trust 27 fund shall be allocated to the Iowa resources enhancement 28 and protection fund created in section 455A.18 for further 29 allocation as provided in section 455A.19. 30 Sec. 13. NEW SECTION . 461.36 Local conservation partnership 31 account —— allocations. 32 A local conservation partnership account is created in the 33 trust fund. Thirteen percent of the moneys credited to the 34 trust fund shall be allocated to the account. 35 -7- LSB 5177SC (2) 83 da/nh 7/ 13

S.F. _____ 1. The department of natural resources shall allocate 1 trust fund moneys in the account to local communities for the 2 following initiatives: 3 a. The maintenance and improvement of parks, preserves, 4 wildlife areas, wildlife habitats, native prairies, and 5 wetlands. 6 b. Wildlife diversity. 7 c. Recreational purposes. 8 d. The improvement of water trails, rivers, and streams. 9 e. Education and outreach programs and projects that provide 10 instruction regarding natural history and the outdoors. The 11 subjects of such instruction may relate to opportunities 12 involving recreational purposes, outdoor safety, and ethics. 13 f. Any other purpose described in section 350.1. 14 2. A local community may cooperate with the state or the 15 federal government to carry out the initiative. Two or more 16 local communities may form an entity if allowed under chapter 17 28E in order to carry out the initiative. 18 3. As used in this section, “local community” means a county 19 conservation board, a city, or a nongovernmental organization 20 operating on a nonprofit basis. 21 Sec. 14. NEW SECTION . 461.37 Trails account —— allocations. 22 A trails account is created in the trust fund. Ten percent 23 of the moneys credited to the trust fund shall be allocated to 24 the account. 25 1. The department of transportation and the department 26 of natural resources shall allocate moneys in the account to 27 support initiatives related to the design, establishment, 28 maintenance, improvement, and expansion of land trails. 29 a. The land trails may be for equestrian use, bicycles, 30 walking, hiking, nature study, or cross-country skiing. 31 b. The departments may provide for trails on land in which 32 the department of transportation or the department of natural 33 resources has acquired rights as scenic easements as defined 34 in section 308.3. 35 -8- LSB 5177SC (2) 83 da/nh 8/ 13

S.F. _____ 2. The department of transportation may use the account 1 to support integrated roadside vegetation management planning 2 and projects as provided in section 314.22. The department of 3 transportation may deposit a portion of the trust fund moneys 4 in the living roadway trust fund as provided in section 314.21. 5 3. The department of natural resources may use the account 6 to support the design, establishment, maintenance, improvement, 7 and expansion of water trails. The department of natural 8 resources may use the account to implement the water trails 9 and low head dam public hazard statewide plan as provided in 10 section 464A.11. 11 Sec. 15. NEW SECTION . 461.38 Lake restoration account —— 12 allocations. 13 A lake restoration account is created in the trust fund. 14 Seven percent of the moneys credited to the trust fund shall 15 be deposited to the account. The department of natural 16 resources shall use moneys in the account to support public 17 lake restoration initiatives as follows: 18 1. An initiative shall account for a lake’s recreational, 19 environmental, aesthetic, ecological, and social value. It 20 must improve water quality. 21 2. The department’s decision to prioritize an initiative 22 may be based on the department’s lake restoration plan and 23 report as provided in section 456A.33B. 24 Sec. 16. CONTINGENT IMPLEMENTATION. This Act shall be 25 implemented on January 1, 2011, if the joint resolution 26 proposing an amendment to the Constitution of the State of Iowa 27 to dedicate a portion of state revenue from the tax imposed on 28 certain retail sales of tangible personal property and services 29 for the benefit of the state’s natural resources, as passed for 30 the second time by the general assembly as provided in 2009 31 Iowa Acts, chapter 185, and submitted to the people of the 32 State of Iowa at the general election in November 2010, in the 33 manner required by the Constitution of the State of Iowa and 34 the laws of this state, is ratified. 35 -9- LSB 5177SC (2) 83 da/nh 9/ 13

S.F. _____ EXPLANATION 1 BACKGROUND. In 2008, the 82nd General Assembly passed 2 Senate Joint Resolution 2002 and in 2009 the 83rd General 3 Assembly passed House Joint Resolution 1 proposing an amendment 4 to the Constitution of the State of Iowa to dedicate a portion 5 of state revenue from the tax imposed on certain retail sales 6 of tangible personal property and services for the benefit 7 of the state’s natural resources. The resolution creates a 8 natural resources and outdoor recreation trust fund within the 9 state treasury and not within the general fund of the state. 10 Moneys in the fund cannot be used for any purpose other than 11 protecting and enhancing water quality and natural areas in 12 this state including parks, trails, and fish and wildlife 13 habitat, and conserving agricultural soils in this state. No 14 revenue is credited to the fund until the sales and use tax 15 rate is increased. Whenever the sales tax is increased, the 16 amount generated by the increase is credited to the fund. If 17 approved by a majority of Iowa voters, the constitution of 18 the state is amended effective as of the date of the general 19 election. 20 GENERAL. The bill creates a new Code chapter referred to 21 as the natural resources and outdoor recreation Act. The bill 22 provides that its purpose is to implement the constitutional 23 purposes of protecting and enhancing water quality and natural 24 areas in this state including parks, trails, and fish and 25 wildlife habitat, and conserving agricultural soils in this 26 state. The fund is administered by the treasurer of state 27 and provides for distributions to support various initiatives 28 to be carried out by the department of natural resources, 29 the department of agriculture and land stewardship, and the 30 state department of transportation. An initiative includes 31 a program, project, practice, strategy, or plan established 32 or administered by an agency that furthers a constitutional 33 purpose as provided in Code section 461.3. 34 PARTICIPATION. The bill requires the heads of the three 35 -10- LSB 5177SC (2) 83 da/nh 10/ 13

S.F. _____ departments who make decisions regarding the expenditure 1 of trust fund moneys to consult with bodies that oversee 2 policies concerned with natural resources. The director of 3 the department of natural resources must consult with the 4 natural resource commission, the secretary of agriculture must 5 consult with the state soil conservation committee, and the 6 director of the department of transportation must consult with 7 the state transportation commission. The heads of the three 8 departments must regularly meet together and collaborate when 9 making decisions. 10 ADMINISTRATION. The bill requires annual audits by the 11 auditor of state or a private accounting firm. Finally, the 12 three departments together with the treasurer of state and 13 auditor of state must submit an annual report to the governor 14 detailing the management of the trust fund, decision-making, 15 and the results of expenditures from the trust fund. The bill 16 requires those agencies to adopt rules necessary to carry out 17 their responsibilities. 18 TRUST FUND ESTABLISHED. The bill creates the trust 19 fund, provides that moneys may be credited to the fund as 20 provided by law or accepted by a decision-making department 21 for placement in an account under its control. According to 22 the bill, trust fund moneys shall supplement and not replace 23 moneys appropriated by the general assembly to support the 24 constitutional purposes, must be used to support voluntary 25 initiatives, and shall not be used for regulatory efforts, 26 enforcement actions, or litigation. Moneys in a fund or 27 account remain in the fund or account until expended and retain 28 all earnings. 29 TRUST FUND ALLOCATIONS —— OUTDOOR RECREATION ACCOUNT. The 30 bill creates an outdoor recreation account and provides for the 31 allocation of trust fund moneys to the account for use by the 32 department of natural resources to support initiatives related 33 to state lands, wildlife, recreation, natural habitat, rivers 34 and streams, education, and state conservation law enforcement. 35 -11- LSB 5177SC (2) 83 da/nh 11/ 13

S.F. _____ The department is authorized to deposit trust fund moneys into 1 a number of secondary funds, including the state fish and game 2 protection fund, the state conservation fund, or the county 3 conservation fund. 4 SOIL CONSERVATION AND WATER PROTECTION ACCOUNT. The bill 5 creates a soil conservation and water protection account and 6 provides for the allocation of trust fund moneys into the 7 account for use by the department of agriculture and land 8 stewardship to support initiatives related to soil conservation 9 and watershed protection to support the department’s soil 10 conservation division and soil and water conservation 11 district commissioners. The department may also provide for 12 the conservation of highly erodible land and provide for 13 soil conservation or crop management practices used on land 14 producing biomass as a feedstock for biorefineries. The 15 department may allocate trust fund moneys to the conservation 16 practices revolving loan fund, the blufflands protection 17 program and revolving fund, the Loess hills development 18 and conservation fund, the southern Iowa development and 19 conservation fund, and the agricultural drainage well water 20 quality assistance fund. 21 WATERSHED PROTECTION ACCOUNT. The bill creates a watershed 22 protection account and provides for the allocation of trust 23 fund moneys into the account for use by the department of 24 natural resources and the department of agriculture and land 25 stewardship to support initiatives related to water resource 26 initiatives, including for the protection, restoration, or 27 enhancement of water quality in the state, and the installation 28 of vegetation as soil or pollution barriers. The department of 29 agriculture and land stewardship may allocate trust fund moneys 30 in the water protection fund, the organic nutrient management 31 fund, or the watershed improvement fund. 32 IOWA RESOURCES ENHANCEMENT AND PROTECTION FUND. The bill 33 provides for the allocation of trust fund moneys to the Iowa 34 resources enhancement and protection fund for allocations as 35 -12- LSB 5177SC (2) 83 da/nh 12/ 13

S.F. _____ provided by law. 1 LOCAL CONSERVATION PARTNERSHIP ACCOUNT. The bill creates 2 a local conservation partnership account and provides for 3 the allocation of trust fund moneys into the account for use 4 by the department of natural resources to support community 5 initiatives, including for parks, preserves, wildlife areas, 6 wildlife habitats, native prairies, and wetlands; wildlife 7 diversity; recreation; the improvement of water trails, rivers, 8 and streams; and education and outreach. A local community 9 is limited to a county conservation board, a city, or a 10 nongovernmental organization operating on a nonprofit basis; or 11 a city or county allowed to organize under a Code chapter 28E 12 agreement. 13 TRAILS ACCOUNT. The bill creates a trails account and 14 provides for the allocation of trust fund moneys into the 15 account for use by the department of transportation and 16 the department of natural resources to support the design, 17 establishment, maintenance, improvement, and expansion of land 18 trails and water trails. The department of transportation 19 may use the account to support integrated roadside vegetation 20 management planning and projects and it may allocate a portion 21 of the trust fund moneys to the living roadway trust fund. The 22 department of natural resources may use the trust fund moneys 23 to implement the water trails and low head dam public hazard 24 statewide plan. 25 LAKE RESTORATION ACCOUNT. The bill creates a lake 26 restoration account and provides for the allocation of trust 27 fund moneys into the account for use by the department of 28 natural resources to support initiatives related to lake 29 restoration taking into account a lake’s recreational, 30 environmental, aesthetic, ecological, and social value. 31 CONTINGENT IMPLEMENTATION. The bill is to be implemented 32 on January 1, 2011, if the joint resolution proposing the 33 amendment to the Constitution of the State of Iowa is ratified. 34 -13- LSB 5177SC (2) 83 da/nh 13/ 13