<a id="pl.1.3"></a><var>1.3</var>of the proceeds of the tax; reducing distributions to the taconite economic <br/>
<a id="pl.1.4"></a><var>1.4</var>development fund; modifying the computation of the homestead credit; <br/>
<a id="pl.1.5"></a><var>1.5</var>authorizing the issuance of bonds; appropriating money;amending Minnesota <br/>
<a id="pl.1.6"></a><var>1.6</var>Statutes 2012, section 298.28, subdivisions 4, 6, 9a.<br/>
<a id="pl.1.7"></a><var>1.7</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.8"></a><var>1.8</var>    Section 1. Minnesota Statutes 2012, section 298.28, subdivision 4, is amended to read:<br/>
<a id="pl.1.9"></a><var>1.9</var>    Subd. 4. <b>School districts.</b> (a) 23.15 cents per taxable ton, plus the increase provided <br/>
<a id="pl.1.10"></a><var>1.10</var>in paragraph (d), less the amount that would have been computed under Minnesota <br/>
<a id="pl.1.11"></a><var>1.11</var>Statutes 2008, section 
         <statute_ref>126C.21, subdivision 4</statute_ref>, for the current year for that district, must be <br/>
<a id="pl.1.12"></a><var>1.12</var>allocated to qualifying school districts to be distributed, based upon the certification of the <br/>
<a id="pl.1.13"></a><var>1.13</var>commissioner of revenue, under paragraphs (b), (c), and (f).<br/>
<a id="pl.1.14"></a><var>1.14</var>    (b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which <br/>
<a id="pl.1.15"></a><var>1.15</var>the lands from which taconite was mined or quarried were located or within which the <br/>
<a id="pl.1.16"></a><var>1.16</var>concentrate was produced. The distribution must be based on the apportionment formula <br/>
<a id="pl.1.17"></a><var>1.17</var>prescribed in subdivision 2.<br/>
<a id="pl.1.18"></a><var>1.18</var>    (ii) Four cents per taxable ton from each taconite facility must be distributed to <br/>
<a id="pl.1.19"></a><var>1.19</var>each affected school district for deposit in a fund dedicated to building maintenance <br/>
<a id="pl.1.20"></a><var>1.20</var>and repairs, as follows:<br/>
<a id="pl.1.21"></a><var>1.21</var>    (1) proceeds from Keewatin Taconite or its successor are distributed to Independent <br/>
<a id="pl.1.22"></a><var>1.22</var>School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor <br/>
<a id="pl.1.23"></a><var>1.23</var>districts;<br/>
<a id="pl.2.1"></a><var>2.1</var>    (2) proceeds from the Hibbing Taconite Company or its successor are distributed to <br/>
<a id="pl.2.2"></a><var>2.2</var>Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor <br/>
<a id="pl.2.3"></a><var>2.3</var>districts;<br/>
<a id="pl.2.4"></a><var>2.4</var>    (3) proceeds from the Mittal Steel Company and Minntac or their successors are <br/>
<a id="pl.2.5"></a><var>2.5</var>distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, <br/>
<a id="pl.2.6"></a><var>2.6</var>2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;<br/>
<a id="pl.2.7"></a><var>2.7</var>    (4) proceeds from the Northshore Mining Company or its successor are distributed <br/>
<a id="pl.2.8"></a><var>2.8</var>to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, <br/>
<a id="pl.2.9"></a><var>2.9</var>or their successor districts; and<br/>
<a id="pl.2.10"></a><var>2.10</var>    (5) proceeds from United Taconite or its successor are distributed to Independent <br/>
<a id="pl.2.11"></a><var>2.11</var>School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their <br/>
<a id="pl.2.12"></a><var>2.12</var>successor districts.<br/>
<a id="pl.2.13"></a><var>2.13</var>    Revenues that are required to be distributed to more than one district shall be <br/>
<a id="pl.2.14"></a><var>2.14</var>apportioned according to the number of pupil units identified in section 
         <statute_ref>126C.05, <br/>
<a id="pl.2.15"></a><var>2.15</var>subdivision 1
         </statute_ref>, enrolled in the second previous year.<br/>
<a id="pl.2.16"></a><var>2.16</var>    (c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e), <br/>
<a id="pl.2.17"></a><var>2.17</var>shall be distributed to a group of school districts comprised of those school districts which <br/>
<a id="pl.2.18"></a><var>2.18</var>qualify as a tax relief area under section 
         <statute_ref>273.134, paragraph (b)</statute_ref>, or in which there is a <br/>
<a id="pl.2.19"></a><var>2.19</var>qualifying municipality as defined by section 
         <statute_ref>273.134, paragraph (a)</statute_ref>, in direct proportion <br/>
<a id="pl.2.20"></a><var>2.20</var>to school district indexes as follows: for each school district, its pupil units determined <br/>
<a id="pl.2.21"></a><var>2.21</var>under section 
         <statute_ref>126C.05</statute_ref> for the prior school year shall be multiplied by the ratio of the <br/>
<a id="pl.2.22"></a><var>2.22</var>average adjusted net tax capacity per pupil unit for school districts receiving aid under <br/>
<a id="pl.2.23"></a><var>2.23</var>this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year <br/>
<a id="pl.2.24"></a><var>2.24</var>ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. <br/>
<a id="pl.2.25"></a><var>2.25</var>Each district shall receive that portion of the distribution which its index bears to the sum <br/>
<a id="pl.2.26"></a><var>2.26</var>of the indices for all school districts that receive the distributions.<br/>
<a id="pl.2.27"></a><var>2.27</var>    (ii) Notwithstanding clause (i), each school district that receives a distribution <br/>
<a id="pl.2.28"></a><var>2.28</var>under sections 
         <statute_ref>298.018</statute_ref>; 
         <statute_ref>298.23</statute_ref> to 
         <statute_ref>298.28</statute_ref>, exclusive of any amount received under this <br/>
<a id="pl.2.29"></a><var>2.29</var>clause; 
         <statute_ref>298.34</statute_ref> to 
         <statute_ref>298.39</statute_ref>; 
         <statute_ref>298.391</statute_ref> to 
         <statute_ref>298.396</statute_ref>; 
         <statute_ref>298.405</statute_ref>; or any law imposing a tax on <br/>
<a id="pl.2.30"></a><var>2.30</var>severed mineral values after reduction for any portion distributed to cities and towns <br/>
<a id="pl.2.31"></a><var>2.31</var>under section 
         <statute_ref>126C.48, subdivision 8</statute_ref>, paragraph (5), that is less than the amount of its <br/>
<a id="pl.2.32"></a><var>2.32</var>levy reduction under section 
         <statute_ref>126C.48, subdivision 8</statute_ref>, for the second year prior to the <br/>
<a id="pl.2.33"></a><var>2.33</var>year of the distribution shall receive a distribution equal to the difference; the amount <br/>
<a id="pl.2.34"></a><var>2.34</var>necessary to make this payment shall be derived from proportionate reductions in the <br/>
<a id="pl.2.35"></a><var>2.35</var>initial distribution to other school districts under clause (i). If there are insufficient tax <br/>
<a id="pl.2.36"></a><var>2.36</var>proceeds to make the distribution provided under this paragraph in any year, money must <br/>
<a id="pl.3.1"></a><var>3.1</var>be transferred from the taconite property tax relief account in subdivision 6, to the extent <br/>
<a id="pl.3.2"></a><var>3.2</var>of the shortfall in the distribution.<br/>
<a id="pl.3.3"></a><var>3.3</var>    (d) Any school district described in paragraph (c) where a levy increase pursuant to <br/>
<a id="pl.3.4"></a><var>3.4</var>section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, was authorized by referendum for taxes payable in 2001, <br/>
<a id="pl.3.5"></a><var>3.5</var>shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the <br/>
<a id="pl.3.6"></a><var>3.6</var>pupil units identified in section 
         <statute_ref>126C.05, subdivision 1</statute_ref>, enrolled in the second previous <br/>
<a id="pl.3.7"></a><var>3.7</var>year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent <br/>
<a id="pl.3.8"></a><var>3.8</var>times the district's taxable net tax capacity in the second previous year.<br/>
<a id="pl.3.9"></a><var>3.9</var>    If the total amount provided by paragraph (d) is insufficient to make the payments <br/>
<a id="pl.3.10"></a><var>3.10</var>herein required then the entitlement of $175 per pupil unit shall be reduced uniformly <br/>
<a id="pl.3.11"></a><var>3.11</var>so as not to exceed the funds available. Any amounts received by a qualifying school <br/>
<a id="pl.3.12"></a><var>3.12</var>district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general <br/>
<a id="pl.3.13"></a><var>3.13</var>education aid which the district receives pursuant to section 
         <statute_ref>126C.13</statute_ref> or the permissible <br/>
<a id="pl.3.14"></a><var>3.14</var>levies of the district. Any amount remaining after the payments provided in this paragraph <br/>
<a id="pl.3.15"></a><var>3.15</var>shall be paid to the commissioner of Iron Range resources and rehabilitation who shall <br/>
<a id="pl.3.16"></a><var>3.16</var>deposit the same in the taconite environmental protection fund and the Douglas J. Johnson <br/>
<a id="pl.3.17"></a><var>3.17</var>economic protection trust fund as provided in subdivision 11.<br/>
<a id="pl.3.18"></a><var>3.18</var>    Each district receiving money according to this paragraph shall reserve the lesser of <br/>
<a id="pl.3.19"></a><var>3.19</var>the amount received under this paragraph or $25 times the number of pupil units served <br/>
<a id="pl.3.20"></a><var>3.20</var>in the district. It may use the money for early childhood programs or for outcome-based <br/>
<a id="pl.3.21"></a><var>3.21</var>learning programs that enhance the academic quality of the district's curriculum. The <br/>
<a id="pl.3.22"></a><var>3.22</var>outcome-based learning programs must be approved by the commissioner of education.<br/>
<a id="pl.3.23"></a><var>3.23</var>    (e) There shall be distributed to any school district the amount which the school <br/>
<a id="pl.3.24"></a><var>3.24</var>district was entitled to receive under section 
         <statute_ref>298.32</statute_ref> in 1975.<br/>
<a id="pl.3.25"></a><var>3.25</var>    (f) Four cents per taxable ton must be distributed to qualifying school districts <br/>
<a id="pl.3.26"></a><var>3.26</var>according to the distribution specified in paragraph (b), clause (ii), and two cents per taxable <br/>
<a id="pl.3.27"></a><var>3.27</var>ton must be distributed according to the distribution specified in paragraph (c). These <br/>
<a id="pl.3.28"></a><var>3.28</var>amounts are not subject to sections 
         <statute_ref>126C.21, subdivision 4</statute_ref>, and 
         <statute_ref>126C.48, subdivision 8</statute_ref>.<br/>
<a id="pl.3.29"></a><var>3.29</var><b>EFFECTIVE DATE.</b>This section is effective beginning for the 2014 distribution.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.3.30"></a><var>3.30</var>    Sec. 2. Minnesota Statutes 2012, section 298.28, subdivision 6, is amended to read:<br/>
<a id="pl.3.31"></a><var>3.31</var>    Subd. 6. <b>Property tax relief.</b> (a) In 2002 2014 and thereafter, 33.9 35.3 cents per <br/>
<a id="pl.3.32"></a><var>3.32</var>taxable ton, less any amount required to be distributed under paragraphs (b) and (c), or <br/>
<a id="pl.3.33"></a><var>3.33</var>section 
         <statute_ref>298.2961</statute_ref>, subdivision 5, must be allocated to St. Louis County acting as the <br/>
<a id="pl.3.34"></a><var>3.34</var>counties' fiscal agent, to be distributed as provided in sections 
         <statute_ref>273.134</statute_ref> to 
         <statute_ref>273.136</statute_ref>.<br/>
<a id="pl.4.1"></a><var>4.1</var>(b) If an electric power plant owned by and providing the primary source of power <br/>
<a id="pl.4.2"></a><var>4.2</var>for a taxpayer mining and concentrating taconite is located in a county other than the <br/>
<a id="pl.4.3"></a><var>4.3</var>county in which the mining and the concentrating processes are conducted, .1875 cent per <br/>
<a id="pl.4.4"></a><var>4.4</var>taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.<br/>
<a id="pl.4.5"></a><var>4.5</var>(c) If an electric power plant owned by and providing the primary source of power <br/>
<a id="pl.4.6"></a><var>4.6</var>for a taxpayer mining and concentrating taconite is located in a school district other than <br/>
<a id="pl.4.7"></a><var>4.7</var>a school district in which the mining and concentrating processes are conducted, .4541 <br/>
<a id="pl.4.8"></a><var>4.8</var>cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to <br/>
<a id="pl.4.9"></a><var>4.9</var>the school district.<br/>
<a id="pl.4.10"></a><var>4.10</var><b>EFFECTIVE DATE.</b>This section is effective beginning for the 2014 distribution.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.4.11"></a><var>4.11</var>    Sec. 3. Minnesota Statutes 2012, section 298.28, subdivision 9a, is amended to read:<br/>
<a id="pl.4.12"></a><var>4.12</var>    Subd. 9a. <b>Taconite economic development fund.</b> (a) 30.1 20.4 cents per ton <br/>
<a id="pl.4.13"></a><var>4.13</var>for distributions in 2002 2014 and thereafter must be paid to the taconite economic <br/>
<a id="pl.4.14"></a><var>4.14</var>development fund. No distribution shall be made under this paragraph in 2004 or any<br/>
<a id="pl.4.15"></a><var>4.15</var> subsequent year in which total industry production falls below 30 million tons. Distribution <br/>
<a id="pl.4.16"></a><var>4.16</var>shall only be made to a taconite producer's fund under section 
         <statute_ref>298.227</statute_ref> if the producer <br/>
<a id="pl.4.17"></a><var>4.17</var>timely pays its tax under section 
         <statute_ref>298.24</statute_ref> by the dates provided under section 
         <statute_ref>298.27</statute_ref>, or <br/>
<a id="pl.4.18"></a><var>4.18</var>pursuant to the due dates provided by an administrative agreement with the commissioner.<br/>
<a id="pl.4.19"></a><var>4.19</var>(b) An amount equal to 50 percent of the tax under section 
         <statute_ref>298.24</statute_ref> for concentrate <br/>
<a id="pl.4.20"></a><var>4.20</var>sold in the form of pellet chips and fines not exceeding 5/16 inch in size and not including <br/>
<a id="pl.4.21"></a><var>4.21</var>crushed pellets shall be paid to the taconite economic development fund. The amount <br/>
<a id="pl.4.22"></a><var>4.22</var>paid shall not exceed $700,000 annually for all companies. If the initial amount to be <br/>
<a id="pl.4.23"></a><var>4.23</var>paid to the fund exceeds this amount, each company's payment shall be prorated so the <br/>
<a id="pl.4.24"></a><var>4.24</var>total does not exceed $700,000.<br/>
<a id="pl.4.25"></a><var>4.25</var><b>EFFECTIVE DATE.</b>This section is effective beginning for the 2014 distribution.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.4.26"></a><var>4.26</var>    Sec. 4. <b>2013 DISTRIBUTION ONLY.</b><br/>
<a id="pl.4.27"></a><var>4.27</var>For the 2013 distribution, a special fund is established to receive $....... of the <br/>
<a id="pl.4.28"></a><var>4.28</var>amount that otherwise would be distributed under Minnesota Statutes, section 298.28, <br/>
<a id="pl.4.29"></a><var>4.29</var>subdivision 6, and this amount must be paid as follows:<br/>
<a id="pl.4.30"></a><var>4.30</var>(1) $ ....... to the city of Hibbing for improvements to the city's water supply system; <br/>
<a id="pl.4.31"></a><var>4.31</var>and<br/>
<a id="pl.4.32"></a><var>4.32</var>(2) $ ....... to the city of Mountain Iron for the cost of moving utilities required as a <br/>
<a id="pl.4.33"></a><var>4.33</var>result of actions undertaken by United States Steel Corporation.<br/>
<a id="pl.5.1"></a><var>5.1</var><b>EFFECTIVE DATE.</b>This section is effective for the 2013 distribution, all of which <br/>
<a id="pl.5.2"></a><var>5.2</var>must be made in the August 2013 payment.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.5.3"></a><var>5.3</var>    Sec. 5. <b>IRON RANGE RESOURCES AND REHABILITATION </b><br/>
<a id="pl.5.4"></a><var>5.4</var><b>COMMISSIONER; BONDS AUTHORIZED.</b><br/>
<a id="pl.5.5"></a><var>5.5</var>    Subdivision 1. <b>Issuance; purpose.</b> Notwithstanding any provision of Minnesota <br/>
<a id="pl.5.6"></a><var>5.6</var>Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and <br/>
<a id="pl.5.7"></a><var>5.7</var>rehabilitation may issue revenue bonds in a principal amount of $....... in one or more <br/>
<a id="pl.5.8"></a><var>5.8</var>series, and bonds to refund those bonds. The proceeds of the bonds must be used to <br/>
<a id="pl.5.9"></a><var>5.9</var>make grants to school districts located in the taconite tax relief area defined in Minnesota <br/>
<a id="pl.5.10"></a><var>5.10</var>Statutes, section 273.134, or the taconite assistance area defined in Minnesota Statutes, <br/>
<a id="pl.5.11"></a><var>5.11</var>section 273.1341, to be used by the school districts to pay for building projects, energy <br/>
<a id="pl.5.12"></a><var>5.12</var>efficiency, technology, infrastructure, health, safety, and maintenance improvements.<br/>
<a id="pl.5.13"></a><var>5.13</var>    Subd. 2. <b>Appropriation.</b> There is annually appropriated from the distribution of <br/>
<a id="pl.5.14"></a><var>5.14</var>taconite production tax revenues under Minnesota Statues, section 298.28, prior to the <br/>
<a id="pl.5.15"></a><var>5.15</var>calculation of the amount of the remainder under Minnesota Statutes, section 298.28, <br/>
<a id="pl.5.16"></a><var>5.16</var>subdivision 11, an amount sufficient to pay when due the principal and interest on the <br/>
<a id="pl.5.17"></a><var>5.17</var>bonds issued pursuant to subdivision 1. The appropriation under this section must not <br/>
<a id="pl.5.18"></a><var>5.18</var>exceed an amount equal to ten cents per taxable ton.<br/>
<a id="pl.5.19"></a><var>5.19</var>(b) If in any year the amount available under paragraph (a) is insufficient to pay <br/>
<a id="pl.5.20"></a><var>5.20</var>principal and interest due on the bonds in that year, an additional amount is appropriated <br/>
<a id="pl.5.21"></a><var>5.21</var>from the Douglas J. Johnson fund to make up the deficiency. <br/>
<a id="pl.5.22"></a><var>5.22</var>(c) The appropriation under this subdivision terminates upon payment or maturity of <br/>
<a id="pl.5.23"></a><var>5.23</var>the last of the bonds issued under this section.<br/>
<a id="pl.5.24"></a><var>5.24</var>    Subd. 3. <b>Credit enhancement.</b> The bonds issued under this section are "debt <br/>
<a id="pl.5.25"></a><var>5.25</var>obligations" and the commissioner of Iron Range resources and rehabilitation is a "district" <br/>
<a id="pl.5.26"></a><var>5.26</var>for purposes of Minnesota Statutes, section 126C.55, provided that advances made under <br/>
<a id="pl.5.27"></a><var>5.27</var>Minnesota Statutes, section 126C.55, subdivision 2, are not subject to Minnesota Statutes, <br/>
<a id="pl.5.28"></a><var>5.28</var>section 126C.55, subdivisions 4 to 7.<br/>
<a id="pl.5.29"></a><var>5.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment and <br/>
<a id="pl.5.30"></a><var>5.30</var>applies beginning with the 2014 distribution under Minnesota Statutes, section 298.28.<br/>