1.1                          A bill for an act 
  1.2             relating to the northeast Minnesota economic 
  1.3             protection trust; regulating expenditures of funds; 
  1.4             amending Minnesota Statutes 2001 Supplement, section 
  1.5             298.296, subdivision 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [NORTHEAST MINNESOTA ECONOMIC PROTECTION TRUST 
  1.8   FUND PRESERVATION; PURPOSE.] 
  1.9      The legislature finds that the northeast Minnesota economic 
  1.10  protection trust fund was created by law to provide an adequate 
  1.11  funding mechanism for economic rehabilitation and 
  1.12  diversification of industrial enterprises in an area of the 
  1.13  state that has been largely dependent on a single industry. 
  1.14     The legislature further finds that the legislative goal of 
  1.15  providing meaningful economic rehabilitation and diversification 
  1.16  in this area will only be achieved if the corpus of the trust is 
  1.17  preserved and invested to generate sufficient revenue to fund 
  1.18  these important statutory objectives. 
  1.19     Therefore, the legislature finds that it is appropriate and 
  1.20  desirable to permanently limit expenditures to the net interest, 
  1.21  earnings, and dividends arising from the investment of the trust.
  1.22     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  1.23  298.296, subdivision 2, is amended to read: 
  1.24     Subd. 2.  [EXPENDITURE OF FUNDS.] Before January 1, 2003, 
  1.25  (a) Funds may be expended on projects and for administration of 
  2.1   the trust fund only from the net interest, earnings, and 
  2.2   dividends arising from the investment of the trust at any time, 
  2.3   including net interest, earnings, and dividends that have arisen 
  2.4   prior to July 13, 1982, plus $10,000,000 made available for use 
  2.5   in fiscal year 1983, except that any amount required to be paid 
  2.6   out of the trust fund to provide the property tax relief 
  2.7   specified in Laws 1977, chapter 423, article X, section 4, and 
  2.8   to make school bond payments and payments to recipients of 
  2.9   taconite production tax proceeds pursuant to section 298.225, 
  2.10  may be taken from the corpus of the trust.  
  2.11     (b) Additionally, upon recommendation by the board, up to 
  2.12  $13,000,000 from the corpus of the trust may be made available 
  2.13  for use as provided in subdivision 4, and up to $10,000,000 from 
  2.14  the corpus of the trust may be made available for use as 
  2.15  provided in section 298.2961.  
  2.16     (c) On and after January 1, 2003, Funds may be expended on 
  2.17  projects and for administration from any assets of the 
  2.18  trust from the corpus of the trust, not including the funds 
  2.19  authorized in paragraph (b), may be expended on projects and for 
  2.20  administration from any assets of the trust, but in no event may 
  2.21  an expenditure authorized by this paragraph exceed an amount 
  2.22  equal to 20 percent of the value of the corpus of the trust.  
  2.23  Funds may be expended under this paragraph only if approved by 
  2.24  the board upon an affirmative vote of at least ten of its 
  2.25  members. 
  2.26     (d) Annual administrative costs, not including detailed 
  2.27  engineering expenses for the projects, shall not exceed five 
  2.28  percent of the net interest, dividends, and earnings arising 
  2.29  from the trust in the preceding fiscal year.  
  2.30     (e) Principal and interest received in repayment of loans 
  2.31  made pursuant to this section, and earnings on other investments 
  2.32  made under section 298.292, subdivision 2, clause (4), shall be 
  2.33  deposited in the state treasury and credited to the trust.  
  2.34  These receipts are appropriated to the board for the purposes of 
  2.35  sections 298.291 to 298.298. 
  2.36     Sec. 3.  [EFFECTIVE DATE.] 
  3.1      Section 2 is effective January 1, 2003.