Minnesota Legislature
SF 3155
as introduced - 89th Legislature (2015 - 2016) Posted on 04/01/2016 09:06am
Current Version - as introduced
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A bill for an act
relating to economic development; regulating and renaming the Minnesota
minerals 21st century fund; appropriating money; amending Minnesota Statutes
2014, sections 116J.423; 116J.424.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 116J.423, is amended to read:
116J.423 MINNESOTA deleted text begin MINERALSdeleted text end 21ST CENTURY FUND.
Subdivision 1.
Created.
The Minnesota deleted text begin mineralsdeleted text end 21st century fund is created
as a separate account in the treasury. Money in the account is appropriated to the
commissioner of employment and economic development for the purposes of this section.
All money earned by the account, loan repayments of principal and interest, and earnings
on investments must be credited to the account. For the purpose of this section, "fund"
means the Minnesota deleted text begin mineralsdeleted text end 21st century fund. The commissioner shall operate the
account as a revolving account.
Subd. 2.
Use of fund.
The commissioner shall use money in the fund to make loans
or equity investments in mineralnew text begin , steel,new text end or deleted text begin taconitedeleted text end new text begin any other industry new text end processing deleted text begin facilitiesdeleted text end ,
deleted text begin steeldeleted text end production deleted text begin facilitiesdeleted text end , deleted text begin facilities for the manufacturing of renewable energy products,
or facilities for the manufacturing of biobased or biomass products,deleted text end new text begin manufacturing,
or technology project that would enhance the economic diversification new text end and that deleted text begin aredeleted text end new text begin is
new text end located within the taconite deleted text begin relief taxdeleted text end new text begin assistance new text end area as defined under section 273.134. The
commissioner must, prior to making any loans or equity investments and after consultation
with industry and public officials, develop a strategy for making loans and equity
investments that assists the deleted text begin Minnesota mineral industry in becoming globally competitivedeleted text end new text begin
taconite assistance area in retaining and enhancing its economic competitivenessnew text end . Money
in the fund may also be used to pay for the costs of carrying out the commissioner's due
diligence duties under this section.
Subd. 2a.
Grants authorized.
Notwithstanding subdivision 2, the commissioner
may use money in the fund to make grants to a municipality or county, or to a county
regional rail authority as appropriate, for public infrastructure needed to support an
eligible project under this section. Grant money may be used by the municipality, county,
or regional rail authority to acquire right-of-way and mitigate loss of wetlands and runoff
of storm water; to predesign, design, construct, and equip roads and rail lines; and, in
cooperation with municipal utilities, to predesign, design, construct, and equip natural
gas pipelines, electric infrastructure, water supply systems, and wastewater collection and
treatment systems. Grants made under this subdivision are available until expended.
Subd. 3.
Requirements prior to committing funds.
The commissioner, prior to
making a commitment for a loan or equity investment must, at a minimum, conduct due
diligence research regarding the proposed loan or equity investment, including contracting
with professionals as needed to assist in the due diligence.
Subd. 4.
Requirements for fund disbursements.
The commissioner may make
conditional commitments for loans or equity investments but disbursements of funds
pursuant to a commitment may not be made until commitments for the remainder of a
project's funding are made that are satisfactory to the commissioner and disbursements
made from the other commitments sufficient to protect the interests of the state in its
loan or investment.
Subd. 5.
Company contribution.
The commissioner may provide loans or equity
investments that match, in a proportion determined by the commissioner, an investment
made by the owner of a facility.
Sec. 2.
Minnesota Statutes 2014, section 116J.424, is amended to read:
116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
CONTRIBUTION.
The commissioner of the Iron Range Resources and Rehabilitation Board with
approval by the board, deleted text begin shalldeleted text end new text begin may new text end provide an equal match for any loan or equity investment
made for a deleted text begin facilitydeleted text end new text begin project new text end located in the deleted text begin tax reliefdeleted text end new text begin taconite assistance new text end area defined in
section 273.134, paragraph (b), by the Minnesota deleted text begin mineralsdeleted text end 21st century fund created
by section 116J.423. The match may be in the form of a loan or equity investment,
notwithstanding whether the fund makes a loan or equity investment. The state shall
not acquire an equity interest because of an equity investment or loan by the board and
the board at its sole discretion shall decide what interest it acquires in a project. The
commissioner of employment and economic development may require a commitment
from the board to make the match prior to disbursing money from the fund.
Sec. 3. new text begin APPROPRIATION; MINNESOTA 21ST CENTURY FUND.
new text end
new text begin
$20,000,000 in fiscal year 2017 is appropriated from the general fund to the
commissioner of employment and economic development for deposit in the Minnesota
21st century fund.
new text end