1.1 	A bill for an act
1.2 	relating to Iron Range resources and rehabilitation; modifying duties of the 
1.3 	commissioner; creating a Legislative-Citizen Commission; providing legislative 
1.4 	oversight; modifying appropriations and distributions; making conforming 
1.5 	changes; requiring a study; appropriating money;amending Minnesota 
1.6 	Statutes 2014, sections 116J.423, subdivision 1; 116J.424; 298.001, by adding 
1.7 	a subdivision; 298.018, subdivision 1; 298.17; 298.22; 298.221; 298.2211, 
1.8 	subdivisions 3, 6; 298.2213; 298.2214, subdivision 2; 298.223; 298.227; 298.27; 
1.9 	298.28, subdivisions 7, 7a, 9c, 9d, 11; 298.292, subdivision 2; 298.294; 298.296; 
1.10 	298.2961; 298.297; 298.298; 298.46.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2014, section 116J.423, subdivision 1, is amended to read:
1.13 		Subdivision 1.Created. The Minnesota minerals 21st century fund is created 
1.14 	as a separate account in the treasury. Money in the account is appropriated to the 
1.15 	commissioner of employment and economic development for the purposes of this section.
1.16 	All money earned by the account, loan repayments of principal and interest, and earnings 
1.17 	on investments must be credited to the account. For the purpose of this section, "fund" 
1.18 	means the Minnesota minerals 21st century fund. The commissioner shall operate the 
1.19 	account as a revolving account.

1.20 	EFFECTIVE DATE. This section is effective July 1, 2017.

1.21 	Sec. 2. Minnesota Statutes 2014, section 116J.424, is amended to read:
1.22 	116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
1.23 	CONTRIBUTION.
1.24 	The commissioner of the Iron Range Resources and Rehabilitation Board with 
1.25 	approval by the board, shall provide an equal match for any loan or equity investment 
2.1 	made for a facility located in the tax relief area defined in section 273.134, paragraph (b), 
2.2 	by the Minnesota minerals 21st century fund created by section 116J.423. The match 
2.3 	may be in the form of a loan or equity investment, notwithstanding whether the fund 
2.4 	makes a loan or equity investment. The state shall not acquire an equity interest because 
2.5 	of an equity investment or loan by the board commissioner and the board agency at its 
2.6 	sole discretion shall decide what interest it acquires in a project. The commissioner of 
2.7 	employment and economic development may require a commitment from the board
2.8 	commissioner to make the match prior to disbursing money from the fund.

2.9 	EFFECTIVE DATE. This section is effective July 1, 2017.

2.10 	Sec. 3. Minnesota Statutes 2014, section 298.001, is amended by adding a subdivision 
2.11 	to read:
2.12 		Subd. 11.Commission. "Commission" means the Legislative-Citizen Commission 
2.13 	on Iron Range resources and rehabilitation under section 298.22.

2.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.15 	Sec. 4. Minnesota Statutes 2014, section 298.018, subdivision 1, is amended to read:
2.16 		Subdivision 1.Within taconite assistance area. The proceeds of the tax paid under 
2.17 	sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the 
2.18 	taconite assistance area defined in section 273.1341, shall be allocated as follows:
2.19 	(1) five percent to the city or town within which the minerals or energy resources 
2.20 	are mined or extracted, or within which the concentrate was produced. If the mining 
2.21 	and concentration, or different steps in either process, are carried on in more than one 
2.22 	taxing district, the commissioner shall apportion equitably the proceeds among the 
2.23 	cities and towns by attributing 50 percent of the proceeds of the tax to the operation of 
2.24 	mining or extraction, and the remainder to the concentrating plant and to the processes of 
2.25 	concentration, and with respect to each thereof giving due consideration to the relative 
2.26 	extent of the respective operations performed in each taxing district;
2.27 	(2) ten percent to the taconite municipal aid account to be distributed as provided 
2.28 	in section 298.282;
2.29 	(3) ten percent to the school district within which the minerals or energy resources 
2.30 	are mined or extracted, or within which the concentrate was produced. If the mining 
2.31 	and concentration, or different steps in either process, are carried on in more than one 
2.32 	school district, distribution among the school districts must be based on the apportionment 
2.33 	formula prescribed in clause (1);
3.1 	(4) 20 percent to a group of school districts comprised of those school districts 
3.2 	wherein the mineral or energy resource was mined or extracted or in which there is a 
3.3 	qualifying municipality as defined by section 273.134, paragraph (b), in direct proportion 
3.4 	to school district indexes as follows: for each school district, its pupil units determined 
3.5 	under section 126C.05 for the prior school year shall be multiplied by the ratio of the 
3.6 	average adjusted net tax capacity per pupil unit for school districts receiving aid under 
3.7 	this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year 
3.8 	ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. 
3.9 	Each district shall receive that portion of the distribution which its index bears to the sum 
3.10 	of the indices for all school districts that receive the distributions;
3.11 	(5) 20 percent to the county within which the minerals or energy resources are 
3.12 	mined or extracted, or within which the concentrate was produced. If the mining and 
3.13 	concentration, or different steps in either process, are carried on in more than one county, 
3.14 	distribution among the counties must be based on the apportionment formula prescribed in 
3.15 	clause (1), provided that any county receiving distributions under this clause shall pay one 
3.16 	percent of its proceeds to the Range Association of Municipalities and Schools;
3.17 	(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be 
3.18 	distributed as provided in sections 273.134 to 273.136;
3.19 	(7) five percent to the commissioner of Iron Range resources and rehabilitation 
3.20 	Board for the purposes of section 298.22;
3.21 	(8) three percent to the Douglas J. Johnson economic protection trust fund; and
3.22 	(9) seven percent to the taconite environmental protection fund.
3.23 	The proceeds of the tax shall be distributed on July 15 each year.

3.24 	EFFECTIVE DATE. This section is effective July 1, 2017.

3.25 	Sec. 5. Minnesota Statutes 2014, section 298.17, is amended to read:
3.26 	298.17 OCCUPATION TAXES TO BE APPORTIONED.
3.27 	(a) All occupation taxes paid by persons, copartnerships, companies, joint stock 
3.28 	companies, corporations, and associations, however or for whatever purpose organized, 
3.29 	engaged in the business of mining or producing iron ore or other ores, when collected 
3.30 	shall be apportioned and distributed in accordance with the Constitution of the state of 
3.31 	Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited 
3.32 	in the state treasury and credited to the general fund of which four-ninths shall be used 
3.33 	for the support of elementary and secondary schools; and ten percent of the proceeds of 
4.1 	the tax imposed by this section shall be deposited in the state treasury and credited to the 
4.2 	general fund for the general support of the university.
4.3 	(b) Of the money apportioned to the general fund by this section: (1) there is 
4.4 	annually appropriated and credited to the mining environmental and regulatory account 
4.5 	in the special revenue fund an amount equal to that which would have been generated 
4.6 	by a 2-1/2 cent tax imposed by section 298.24 on each taxable ton produced in the 
4.7 	preceding calendar year. Money in the mining environmental and regulatory account is 
4.8 	appropriated annually to the commissioner of natural resources to fund agency staff to 
4.9 	work on environmental issues and provide regulatory services for ferrous and nonferrous 
4.10 	mining operations in this state. Payment to the mining environmental and regulatory 
4.11 	account shall be made by July 1 annually. The commissioner of natural resources shall 
4.12 	execute an interagency agreement with the Pollution Control Agency to assist with the 
4.13 	provision of environmental regulatory services such as monitoring and permitting required 
4.14 	for ferrous and nonferrous mining operations; (2) there is annually appropriated and 
4.15 	credited to the Iron Range resources and rehabilitation Board account in the special 
4.16 	revenue fund an amount equal to that which would have been generated by a 1.5 cent tax 
4.17 	imposed by section 298.24 on each taxable ton produced in the preceding calendar year, to 
4.18 	be expended for the purposes of section 298.22; and (3) there is annually appropriated 
4.19 	and credited to the Iron Range resources and rehabilitation Board account in the special 
4.20 	revenue fund for transfer to the Iron Range school consolidation and cooperatively 
4.21 	operated school account under section 298.28, subdivision 7a, an amount equal to that 
4.22 	which would have been generated by a six cent tax imposed by section 298.24 on each 
4.23 	taxable ton produced in the preceding calendar year. Payment to the Iron Range resources 
4.24 	and rehabilitation Board account shall be made by May 15 annually.
4.25 	(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to 
4.26 	provide environmental development grants to local governments located within any county 
4.27 	in region 3 as defined in governor's executive order number 60, issued on June 12, 1970, 
4.28 	which does not contain a municipality qualifying pursuant to section 273.134, paragraph 
4.29 	(b), or (ii) to provide economic development loans or grants to businesses located within 
4.30 	any such county, provided that the county board or an advisory group appointed by 
4.31 	the county board to provide recommendations on economic development shall make 
4.32 	recommendations to the commissioner of Iron Range resources and rehabilitation Board
4.33 	regarding the loans. Payment to the Iron Range resources and rehabilitation Board account 
4.34 	shall be made by May 15 annually.
4.35 	(d) Of the money allocated to Koochiching County, one-third must be paid to the 
4.36 	Koochiching County Economic Development Commission.

5.1 	EFFECTIVE DATE. This section is effective July 1, 2017.

5.2 	Sec. 6. Minnesota Statutes 2014, section 298.22, is amended to read:
5.3 	298.22 IRON RANGE RESOURCES AND REHABILITATION.
5.4 		Subdivision 1.The Office of the Commissioner of Iron Range resources 
5.5 	and rehabilitation. (a) The Office of the Commissioner of Iron Range resources and 
5.6 	rehabilitation is created as an agency in the executive branch of state government. The 
5.7 	governor shall appoint the commissioner of Iron Range resources and rehabilitation under 
5.8 	section 15.06.
5.9 	(b) The commissioner may hold other positions or appointments that are not 
5.10 	incompatible with duties as commissioner of Iron Range resources and rehabilitation. The 
5.11 	commissioner may appoint a deputy commissioner. All expenses of the commissioner, 
5.12 	including the payment of staff and other assistance as may be necessary, must be paid 
5.13 	out of the amounts appropriated by section 298.28 or otherwise made available by law 
5.14 	to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner 
5.15 	may utilize contracting options available under section 471.345 when the commissioner 
5.16 	determines it is in the best interest of the agency. The agency is not subject to sections 
5.17 	16E.016 and 16C.05.
5.18 	(c) When the commissioner determines that distress and unemployment exists or 
5.19 	may exist in the future in any county by reason of the removal of natural resources 
5.20 	or a possibly limited use of natural resources in the future and any resulting decrease 
5.21 	in employment, the commissioner may use, subject to legislative approval, whatever 
5.22 	amounts of the appropriation made to the commissioner of revenue in section 298.28 that 
5.23 	are determined to be necessary and proper in the development of the remaining resources 
5.24 	of the county and in the vocational training and rehabilitation of its residents, except 
5.25 	that the amount needed to cover cost overruns awarded to a contractor by an arbitrator 
5.26 	in relation to a contract awarded by the commissioner or in effect after July 1, 1985, is 
5.27 	appropriated from the general fund. For the purposes of this section, "development of 
5.28 	remaining resources" includes, but is not limited to, the promotion of tourism.
5.29 	(d) Notwithstanding any other law to the contrary, for fiscal year 2018 and each 
5.30 	fiscal year thereafter, all expenditures by the commissioner must be approved by the 
5.31 	legislature in the manner provided for in paragraph (e).
5.32 	(e) The commissioner shall annually submit a budget proposal to the 
5.33 	Legislative-Citizen Commission on Iron Range resources and rehabilitation. The 
5.34 	commission must review and make recommendations on the commissioner's budget 
6.1 	proposal as provided in subdivisions 1c and 1d. This paragraph applies to transfers and 
6.2 	expenditures from the following funds or accounts:
6.3 	(1) the taconite area environmental protection fund under section 298.223, including 
6.4 	grants under section 298.2961;
6.5 	(2) the Douglas J. Johnson Economic Protection Trust Fund Act under sections 
6.6 	298.291 to 298.298, including grants under section 298.2961;
6.7 	(3) the Iron Range resources and rehabilitation account in the special revenue fund; 
6.8 	(4) the Iron Range school consolidation and cooperatively operated school account 
6.9 	under section 298.28, subdivision 7a, except as provided under paragraph (f);
6.10 	(5) the Minnesota minerals 21st century fund match requirements under section 
6.11 	116J.424; and
6.12 	(6) the Iron Range higher education account under section 298.28, subdivision 9d.
6.13 	(f) Paragraph (e) does not apply to expenditures for:
6.14 	(1) the commissioner's obligations under sections 298.221; 298.2211, subdivision 4; 
6.15 	298.225, subdivision 2; and 298.292, subdivision 2, clause (3);
6.16 	(2) payments of amounts authorized under section 298.28, subdivisions 2; 3; 4; 5; 6; 
6.17 	7a, clause (4); and 9a; or
6.18 	(3) other expenditures required to pay bonds or binding contracts entered into prior 
6.19 	to the effective date of this section.
6.20 		Subd. 1a.Legislative-Citizen Commission on Iron Range resources and 
6.21 	rehabilitation Board. The Iron Range Resources and Rehabilitation Board consists 
6.22 	of the state senators and representatives elected from state senatorial or legislative 
6.23 	districts in which one-third or more of the residents reside in a taconite assistance area 
6.24 	as defined in section 273.1341. One additional state senator shall also be appointed by 
6.25 	the senate Subcommittee on Committees of the Committee on Rules and Administration. 
6.26 	All expenditures and projects made by the commissioner shall first be submitted to the 
6.27 	board for approval. The expenses of the board shall be paid by the state from the funds 
6.28 	raised pursuant to this section. Members of the board may be reimbursed for expenses 
6.29 	in the manner provided in sections 3.099, subdivision 1, and 3.101, and may receive per 
6.30 	diem payments during the interims between legislative sessions in the manner provided 
6.31 	in section 3.099, subdivision 1.
6.32 	The members shall be appointed in January of every odd-numbered year, and shall 
6.33 	serve until January of the next odd-numbered year. Vacancies on the board shall be filled 
6.34 	in the same manner as original members were chosen.
6.35 	(a) A nine-member Legislative-Citizen Commission on Iron Range resources and 
6.36 	rehabilitation is created in the legislative branch, consisting of:
7.1 	(1) three members of the senate appointed by the Subcommittee on Committees 
7.2 	of the Committee on Rules and Administration, and three members of the house of 
7.3 	representatives appointed by the speaker of the house. At least one member from the 
7.4 	senate and one member from the house of representatives must be from the minority 
7.5 	caucus. Members are entitled to reimbursement for per diem expenses plus travel expenses 
7.6 	incurred in the services of the commission; and
7.7 	(2) three citizens, one appointed by the governor, one appointed by the senate 
7.8 	Subcommittee on Committees of the Committee on Rules and Administration, and 
7.9 	one appointed by the speaker of the house. The citizen members are selected and 
7.10 	recommended to the appointing authorities according to subdivision 1b, and must have:
7.11 	(i) experience or expertise in economic and workforce development, community 
7.12 	development, mining and mineral extraction, natural resources development, and any 
7.13 	other issue determined by the governor in consultation with the legislature;
7.14 	(ii) strong knowledge regarding issues on the Iron Range;
7.15 	(iii) demonstrated ability to work in a collaborative environment; and
7.16 	(iv) a primary residence located in the taconite assistance area as defined in section 
7.17 	273.1341.
7.18 	(b) Members shall develop procedures to elect a chair that rotates between legislative 
7.19 	and citizen members each meeting. A citizen member, a senate member, and a house of 
7.20 	representatives member shall serve as chairs. The citizen members, senate members, and 
7.21 	house of representative members must select their respective chairs. The chair shall preside 
7.22 	and convene meetings as often as necessary to conduct duties prescribed by this chapter.
7.23 	(c) Appointed legislative members shall serve on the commission for two-year 
7.24 	terms, beginning in January of each odd-numbered year and continuing through the end 
7.25 	of December of the next even-numbered year. Appointed citizen members shall serve 
7.26 	four-year terms, beginning in January of the first year and continuing through the end 
7.27 	of December of the final year. Citizen and legislative members continue to serve until 
7.28 	their successors are appointed.
7.29 	(d) A citizen member may be removed by an appointing authority for cause. 
7.30 	Vacancies occurring on the commission shall not affect the authority of the remaining 
7.31 	members of the commission to carry out their duties, and vacancies shall be filled for the 
7.32 	remainder of the term in the same manner under paragraph (c).
7.33 	(e) Citizen members shall be initially appointed according to the following schedule 
7.34 	of terms:
7.35 	(1) one member appointed by the governor for a term ending the first Monday in 
7.36 	January 2020;
8.1 	(2) one member appointed by the senate Subcommittee on Committees of the 
8.2 	Committee on Rules and Administration for a term ending the first Monday in January 
8.3 	2020; and
8.4 	(3) one member appointed by the speaker of the house for a term ending the first 
8.5 	Monday in January 2020.
8.6 	(f) Citizen members are entitled to per diem and reimbursement for expenses 
8.7 	incurred in the services of the commission, as provided in section 15.059, subdivision 3.
8.8 	(g) The governor's appointments are subject to the advice and consent of the senate.
8.9 		Subd. 1b.Citizen selection committee. (a) The governor shall appoint an Iron 
8.10 	Range Resources and Rehabilitation Citizen Selection Committee of five members who 
8.11 	come from different regions of the state and who have knowledge and experience of 
8.12 	Iron Range economic and workforce development, community development, mineral 
8.13 	extraction, natural resources issues, and any other issue as determined by the governor in 
8.14 	consultation with the legislature.
8.15 	(b) The duties of the Iron Range Resources and Rehabilitation Citizen Selection 
8.16 	Committee shall be to:
8.17 	(1) identify citizen candidates to be members of the commission as part of the open 
8.18 	appointments process under section 15.0597;
8.19 	(2) request and review citizen candidate applications to be members of the 
8.20 	commission; and
8.21 	(3) interview the citizen candidates and recommend an adequate pool of candidates 
8.22 	to be selected for commission membership by the governor, senate, and house of 
8.23 	representatives.
8.24 	(c) Members are entitled to travel expenses incurred to fulfill their duties under this 
8.25 	subdivision as provided in section 15.059, subdivision 6.
8.26 		Subd. 1c.Legislative-Citizen Commission duties. (a) The Legislative-Citizen 
8.27 	Commission shall evaluate budget proposals submitted by the commissioner and make 
8.28 	recommendations for legislation for appropriations for Iron Range economic and workforce 
8.29 	development, community development, minerals and natural resources development, and 
8.30 	any other issue as determined by the governor in consultation with the legislature and 
8.31 	shall adopt a strategic plan as provided in subdivision 1e. Approval of the recommended 
8.32 	legislation requires an affirmative vote of at least six members of the commission.
8.33 	(b) The commission may adopt operating procedures to fulfill its duties under this 
8.34 	chapter.
8.35 	(c) The commission must submit its legislative recommendations to the legislature 
8.36 	for inclusion in the biennial budget and supplemental budget approved by the legislature.
9.1 		Subd. 1d.Evaluation of proposed budgets. The commission must evaluate budget 
9.2 	proposals and consider factors including but not limited to:
9.3 	(1) the extent to which the proposed budget contributes to increasing the 
9.4 	effectiveness of promoting or managing Iron Range economic and workforce development, 
9.5 	community development, minerals and natural resources development, and any other issue 
9.6 	as determined by the governor in consultation with the legislature;
9.7 	(2) whether, and the extent to which, an applicant could complete a project absent 
9.8 	funding from the commissioner;
9.9 	(3) job creation or retention goals for the project, including but not limited to 
9.10 	wages and benefits, and whether the jobs created are full time, part time, temporary, or 
9.11 	permanent; and whether the stated job creation or retention goals in the proposal can be 
9.12 	adequately measured using methods established by the commissioner;
9.13 	(4) how and to what extent the proposal is expected to impact the economic climate 
9.14 	of the Iron Range resources and rehabilitation services area;
9.15 	(5) how the proposal would meet match requirements, if any; and
9.16 	(6) whether the proposal meets the written objectives, priorities, and policies 
9.17 	established by the commissioner.
9.18 		Subd. 1e.Strategic plan required. The commissioner, in consultation with the 
9.19 	Legislative-Citizen Commission, shall adopt a strategic plan for making expenditures 
9.20 	including identifying the priority areas for funding for the next six years. The strategic 
9.21 	plan must be reviewed every two years. The strategic plan must have clearly stated 
9.22 	short-term and long-term goals and strategies for expenditures, provide measurable 
9.23 	outcomes for expenditures, and determine areas of emphasis for funding.
9.24 		Subd. 1f. Emerging issues. The Legislative-Citizen Commission may recommend 
9.25 	in its legislation the establishment of an emerging issues account to fund unexpected 
9.26 	emerging issues, but which still adheres to the strategic plan. Any expenditure from the 
9.27 	emerging issues account must be:
9.28 	(1) directly related to an item or subject in the commissioner's budget as approved 
9.29 	by the legislature;
9.30 	(2) reviewed and evaluated by the commission in the manner provided for under 
9.31 	subdivision 1d; and
9.32 	(3) approved by a unanimous vote of the commission.
9.33 		Subd. 1g.Public meetings.  (a) Meetings of the Legislative-Citizen Commission, 
9.34 	committees or subcommittees of the commission, or technical advisory committees must 
9.35 	be open to the public and are subject to chapter 13D. The commission shall attempt to 
9.36 	meet throughout various regions of the state during each biennium. For purposes of this 
10.1 	subdivision, a meeting occurs when a quorum is present and action is taken regarding a 
10.2 	matter within the jurisdiction of the commission, a committee or subcommittee of the 
10.3 	commission, or a technical advisory committee.
10.4 	(b) For legislative members of the commission, enforcement of this subdivision is 
10.5 	governed by section 3.055, subdivision 2. For nonlegislative members of the commission, 
10.6 	enforcement of this subdivision is governed by section 13D.06, subdivisions 1 and 2.
10.7 		Subd. 1h.Legislative Coordinating Commission. The Legislative Coordinating 
10.8 	Commission shall hire an executive director of the Legislative-Citizen Commission on 
10.9 	Iron Range resources and rehabilitation and other staff as requested by the commission.
10.10 		Subd. 3.Commissioner may acquire property. Whenever the commissioner of 
10.11 	Iron Range resources and rehabilitation has made determinations required by subdivision 
10.12 	1 and has determined that distress and unemployment exists or may exist in the future 
10.13 	in any county by reason of the removal of the natural resources or a possible limited use 
10.14 	thereof in the future and the decrease in employment resulting therefrom and deems 
10.15 	that the acquirement of real estate or personal property is necessary and proper in the 
10.16 	development of the remaining resources, the commissioner may acquire such property or 
10.17 	interests therein by gift, purchase, or lease. The commissioner may purchase insurance to 
10.18 	protect any property acquired from loss or damage by fire, or to protect the commissioner 
10.19 	from any liability the commissioner may incur by reason of ownership of the property, or 
10.20 	both. If after such property is acquired it is necessary in the judgment of the commissioner 
10.21 	to acquire a right-of-way for access to projects operated on property acquired by gift, 
10.22 	purchase, or lease, said right-of-way may be acquired by condemnation in the manner 
10.23 	provided by law. If the owner or operator of an iron mine or related production or 
10.24 	beneficiation facilities discontinues the operation of the mine or facilities for any reason, 
10.25 	the commissioner may acquire any or all of the mine lands and related facilities by gift, 
10.26 	purchase, lease, or condemnation in the manner provided in chapter 117.
10.27 		Subd. 4.Commissioner may accept grants and conveyances. Whenever 
10.28 	property has been granted and conveyed to the state of Minnesota in accordance with an 
10.29 	agreement made by the commissioner of Iron Range resources and rehabilitation and 
10.30 	the commissioner of administration for the necessary and proper development of the 
10.31 	remaining resources of any distressed county, such grants, and conveyances or leases are 
10.32 	hereby accepted in accordance with the terms and conditions thereof.
10.33 		Subd. 5.Commissioner may lease property. In order to carry out the terms and 
10.34 	provisions of this section, the commissioner of Iron Range resources and rehabilitation 
10.35 	and the commissioner of administration may lease any property acquired hereunder for 
10.36 	a term not to exceed 20 years upon such terms as they may determine, provided that 
11.1 	such property shall not be leased to any person in such a manner as to constitute a direct 
11.2 	contribution of working capital to a business enterprise. Such lease may provide that in the 
11.3 	event the property is ever sold by the state to such lessee, the lessee may obtain a credit 
11.4 	on the purchase price covering the rentals paid under the lease or any renewals thereof 
11.5 	and that said real estate can be conveyed by the commissioner of Iron Range resources 
11.6 	and rehabilitation and the commissioner of administration and the said commissioners are 
11.7 	hereby authorized to make such conveyances.
11.8 		Subd. 5a.Forest trust. The commissioner, upon approval by the board, may 
11.9 	purchase forest lands in the taconite assistance area defined in under section 273.1341 
11.10 	with funds specifically authorized for the purchase. The acquired forest lands must be 
11.11 	held in trust for the benefit of the citizens of the taconite assistance area as the Iron 
11.12 	Range Miners' Memorial Forest. The forest trust lands shall be managed and developed 
11.13 	for recreation and economic development purposes. The commissioner, upon approval 
11.14 	by the board subject to legislative approval, may sell forest lands purchased under this 
11.15 	subdivision if the board commissioner finds that the sale advances the purposes of the 
11.16 	trust. Proceeds derived from the management or sale of the lands and from the sale of 
11.17 	timber or removal of gravel or other minerals from these forest lands shall be deposited 
11.18 	into an Iron Range Miners' Memorial Forest account that is established within the state 
11.19 	financial accounts. Funds may be expended from the account upon approval by the board
11.20 	legislature, to purchase, manage, administer, convey interests in, and improve the forest 
11.21 	lands. With approval by the board legislature, money in the Iron Range Miners' Memorial 
11.22 	Forest account may be transferred into the corpus of the Douglas J. Johnson economic 
11.23 	protection trust fund established under sections 298.291 to 298.294. The property acquired 
11.24 	under the authority granted by this subdivision and income derived from the property or 
11.25 	the operation or management of the property are exempt from taxation by the state or its 
11.26 	political subdivisions while held by the forest trust.
11.27 		Subd. 6.Private entity participation. Subject to legislative approval, the board
11.28 	commissioner may acquire an equity interest in any project for which it provides funding. 
11.29 	The commissioner may establish, participate in the management of, and dispose of the 
11.30 	assets of charitable foundations, nonprofit limited liability companies, and nonprofit 
11.31 	corporations associated with any project for which it provides funding, including 
11.32 	specifically, but without limitation, a corporation within the meaning of section 317A.011, 
11.33 	subdivision 6.
11.34 		Subd. 7.Project area development authority. (a) In addition to the other powers 
11.35 	granted in this section and other law and notwithstanding any limitations contained in 
11.36 	subdivision 5, the commissioner, for purposes of fostering economic development and 
12.1 	tourism within the Giants Ridge Recreation Area or the Ironworld Discovery Center area, 
12.2 	and with legislative approval, may spend any money made available to the agency under 
12.3 	section 298.28 to acquire real or personal property or interests therein by gift, purchase, or 
12.4 	lease and may convey by lease, sale, or other means of conveyance or commitment any or 
12.5 	all property interests owned or administered by the commissioner within such areas.
12.6 	(b) In furtherance of development of the Giants Ridge Recreation Area or the 
12.7 	Ironworld Discovery Center area, the commissioner may establish and participate in 
12.8 	charitable foundations, nonprofit limited liability companies, and nonprofit corporations, 
12.9 	including a corporation within the meaning of section 317A.011, subdivision 6.
12.10 	(c) The term "Giants Ridge Recreation Area" refers to an economic development 
12.11 	project area established by the commissioner in furtherance of the powers delegated 
12.12 	in this section within St. Louis County in the following portions of the town of White 
12.13 	and the city of Biwabik:
12.14 	Township 59 North, Range 15 West, Sections 7, 8, 17-20 and 29-32;
12.15 	Township 59 North, Range 16 West, Sections 12, 13, 24, 25, and 36;
12.16 	Township 58 North, Range 16 West, Section 1; and
12.17 	Township 58 North, Range 15 West, Sections 5 and 6.
12.18 	(d) "Ironworld Discovery Center Area" means an economic development and tourism 
12.19 	promotion project area established by the commissioner in furtherance of the powers 
12.20 	delegated in this section within St. Louis County in the south portion of the town of Balkan.
12.21 		Subd. 8.Spending priority. In making or approving any expenditures on programs 
12.22 	or projects, the commissioner and the board shall give the highest priority to programs 
12.23 	and projects that target relief to those areas of the taconite assistance area as defined in 
12.24 	section 273.1341, that have the largest percentages of job losses and population losses 
12.25 	directly attributable to the economic downturn in the taconite industry since the 1980s. 
12.26 	The commissioner and the board shall compare the 1980 population and employment 
12.27 	figures with the 2000 population and employment figures, and shall specifically consider 
12.28 	the job losses in 2000 and 2001 resulting from the closure of LTV Steel Mining Company, 
12.29 	in making or approving expenditures consistent with this subdivision, as well as the areas 
12.30 	of residence of persons who suffered job loss for which relief is to be targeted under this 
12.31 	subdivision. The commissioner may lease, for a term not exceeding 50 years and upon the 
12.32 	terms determined by the commissioner and approved by the board, surface and mineral 
12.33 	interests owned or acquired by the state of Minnesota acting by and through the office of 
12.34 	the commissioner of Iron Range resources and rehabilitation within those portions of the 
12.35 	taconite assistance area affected by the closure of the LTV Steel Mining Company facility 
12.36 	near Hoyt Lakes. The payments and royalties from these leases must be deposited into the 
13.1 	fund established in section 298.292. This subdivision supersedes any other conflicting 
13.2 	provisions of law and does not preclude the commissioner and the board from making 
13.3 	expenditures for programs and projects in other areas.
13.4 		Subd. 9.Economic development and trade promotion. In the promotion of 
13.5 	tourism, trade, and economic development, the commissioner, subject to legislative 
13.6 	approval, may expend money made available to the agency under section 298.28 in the 
13.7 	same manner as private persons, firms, corporations, and associations make expenditures 
13.8 	for these purposes. An expenditure for food, lodging, or travel is not governed by the 
13.9 	travel rules of the commissioner of management and budget.
13.10 		Subd. 10.Sale or privatization of functions. The commissioner of Iron Range 
13.11 	resources and rehabilitation may not sell or privatize the Ironworld Discovery Center or 
13.12 	Giants Ridge Golf and Ski Resort without prior approval by the board legislature.
13.13 		Subd. 11.Budgeting. The commissioner of Iron Range resources and rehabilitation 
13.14 	shall annually prepare a budget for operational expenditures, programs, and projects, 
13.15 	and submit it to the Iron Range Resources and Rehabilitation Board. After the budget 
13.16 	is approved by the board and the governor, The commissioner may spend money in 
13.17 	accordance with the approved budget.
13.18 		Subd. 13.Grants and loans; requirements. (a) Prior to awarding any grants 
13.19 	or approving loans from any fund or account from which the commissioner has the 
13.20 	authority under law to expend money, the commissioner must evaluate applications based 
13.21 	on criteria including, but not limited to:
13.22 	(1) whether, and the extent to which, an applicant could complete a project absent 
13.23 	funding from the commissioner;
13.24 	(2) job creation or retention goals for the project, including but not limited to wages 
13.25 	and benefits, and whether the jobs created are full time, part time, temporary, or permanent;
13.26 	(3) whether the applicant's stated job creation or retention goals can be adequately 
13.27 	measured using methods established by the commissioner;
13.28 	(4) how and to what extent the project proposed by the applicant is expected to 
13.29 	impact the economic climate of the Iron Range resources and rehabilitation services area;
13.30 	(5) how the applicant would meet match requirements, if any; and
13.31 	(6) whether the project for which a grant or loan application has been submitted 
13.32 	meets the written objectives, priorities, and policies established by the commissioner.
13.33 	(b) The commissioner, if appropriate, must include incentives in loan and grant 
13.34 	award agreements to promote and assist grant recipients in achieving the stated job 
13.35 	creation and retention objectives established by the commissioner.
14.1 	(c) For all loans and grants awarded from funds under the commissioner's authority 
14.2 	pursuant to this chapter, the commissioner must:
14.3 	(1) create and maintain a database for tracking loan and grant awards;
14.4 	(2) create and maintain an objective mechanism for measuring job creation and 
14.5 	retention;
14.6 	(3) verify achievement of job creation and retention goals by grant and loan recipients;
14.7 	(4) monitor grant and loan awards to ensure that projects comply with applicable 
14.8 	Iron Range resources and rehabilitation policies; and
14.9 	(5) verify that grant or loan recipients have met applicable matching fund 
14.10 	requirements.
14.11 		Subd. 14.Legislative approval. For purposes of this section, "legislative approval" 
14.12 	means that the purchase, sale, expenditure, or any other action specified as subject to 
14.13 	legislative approval was specifically authorized by a law enacted after January 1, 2017.

14.14 	EFFECTIVE DATE. The amendment adding language to subdivision 1a; 
14.15 	subdivisions 1b to 1h; and subdivision 13, are effective the day following final enactment. 
14.16 	All other changes are effective July 1, 2017.

14.17 	Sec. 7. Minnesota Statutes 2014, section 298.221, is amended to read:
14.18 	298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
14.19 	(a) Except as provided in paragraph (c), all money paid to the state of Minnesota 
14.20 	pursuant to the terms of any contract entered into by the state under authority of section 
14.21 	298.22 and any fees which may, in the discretion of the commissioner of Iron Range 
14.22 	resources and rehabilitation, be charged in connection with any project pursuant to that 
14.23 	section as amended, shall be deposited in the state treasury to the credit of the Iron Range 
14.24 	resources and rehabilitation Board account in the special revenue fund and are hereby 
14.25 	appropriated for the purposes of section 298.22.
14.26 	(b) Notwithstanding section 16A.013, merchandise may be accepted by the 
14.27 	commissioner of the Iron Range resources and rehabilitation Board for payment of 
14.28 	advertising contracts if the commissioner determines that the merchandise can be used 
14.29 	for special event prizes or mementos at facilities operated by the board. Nothing in this 
14.30 	paragraph authorizes the commissioner or a member of the board to receive merchandise 
14.31 	for personal use.
14.32 	(c) All fees charged by the commissioner in connection with public use of the 
14.33 	state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other 
14.34 	revenues derived by the commissioner from the operation or lease of those facilities 
15.1 	and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge 
15.2 	Recreation Area must be deposited into an Iron Range resources and rehabilitation 
15.3 	Board account that is created within the state enterprise fund. All funds deposited in the 
15.4 	enterprise fund account are appropriated to the commissioner to be expended, subject to 
15.5 	approval by the board, and may only be used as follows:
15.6 	(1) to pay costs associated with the construction, equipping, operation, repair, or 
15.7 	improvement of the Giants Ridge Recreation Area facilities or lands; and
15.8 	(2) to pay principal, interest and associated bond issuance, reserve, and servicing 
15.9 	costs associated with the financing of the facilities; and.
15.10 	(3) to pay the costs of any other project authorized under section 298.22.

15.11 	EFFECTIVE DATE. This section is effective July 1, 2017.

15.12 	Sec. 8. Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:
15.13 		Subd. 3.Project approval. All projects authorized by this section shall be submitted 
15.14 	by the commissioner to the Iron Range Resources and Rehabilitation Board for approval 
15.15 	by the board. Prior to the commencement of a project involving the exercise by the 
15.16 	commissioner of any authority of sections 469.174 to 469.179, the governing body of each 
15.17 	municipality in which any part of the project is located and the county board of any county 
15.18 	containing portions of the project not located in an incorporated area shall by majority vote 
15.19 	approve or disapprove the project. Any project approved by the boardcommissioner and 
15.20 	the applicable governing bodies, if any, together with detailed information concerning the 
15.21 	project, its costs, the sources of its funding, and the amount of any bonded indebtedness to 
15.22 	be incurred in connection with the project, shall be transmitted to the governor, who shall 
15.23 	approve, disapprove, or return the proposal for additional consideration within 30 days of 
15.24 	receipt. No project authorized under this section shall be undertaken, and no obligations 
15.25 	shall be issued and no tax increments shall be expended for a project authorized under this 
15.26 	section until the project has been approved by the governor. Request for certification of 
15.27 	each district must be specifically authorized by enactment of a law.

15.28 	EFFECTIVE DATE. This section is effective July 1, 2017.

15.29 	Sec. 9. Minnesota Statutes 2014, section 298.2211, subdivision 6, is amended to read:
15.30 		Subd. 6.Fee setting. Fees for admission to or use of facilities operated by the
15.31 	commissioner of Iron Range resources and rehabilitation Board that have been established 
15.32 	according to prevailing market conditions and to recover operating costs need not be 
15.33 	set by rule.

16.1 	EFFECTIVE DATE. This section is effective July 1, 2017.

16.2 	Sec. 10. Minnesota Statutes 2014, section 298.2213, is amended to read:
16.3 	298.2213 NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT FUND.
16.4 		Subdivision 1.Appropriation. $4,000,000 is appropriated from the general 
16.5 	fund to the commissioner of Iron Range resources and rehabilitation. $300,000 of this 
16.6 	appropriation must be used in the same manner as money appropriated under section 
16.7 	298.17.
16.8 		Subd. 2.Purpose of expenditures. The Money appropriated in for this section may 
16.9 	be used for projects and programs for which technological and economic feasibility have 
16.10 	been demonstrated and that have the following purposes:
16.11 	(1) creating and maintaining productive, permanent, skilled employment, including 
16.12 	employment in technologically innovative businesses; and
16.13 	(2) encouraging diversification of the economy and promoting the development of 
16.14 	minerals, alternative energy sources utilizing indigenous fuels, forestry, small business, 
16.15 	and tourism.
16.16 		Subd. 3.Use of money. The Money appropriated under for this section may be used 
16.17 	to provide loans, loan guarantees, interest buy-downs, and other forms of participation 
16.18 	with private sources of financing, provided that a loan to a private enterprise must be for a 
16.19 	principal amount not to exceed one-half of the cost of the project for which financing is 
16.20 	sought, and the rate of interest on a loan must be no less than the lesser of eight percent or 
16.21 	the rate of interest that is three percentage points less than a full faith and credit obligation of 
16.22 	the United States government of comparable maturity, at the time that the loan is approved.
16.23 	Money appropriated in for this section must be expended only in or for the benefit 
16.24 	of the taconite assistance area defined in section 273.1341, and as otherwise provided 
16.25 	in this section.
16.26 		Subd. 4.Project approval. The board and commissioner shall by August 1 each 
16.27 	year prepare a list of projects to be funded from the money appropriated in this section 
16.28 	with necessary supporting information including descriptions of the projects, plans, and 
16.29 	cost estimates. A project must not be approved by the board unless it finds that:
16.30 	(1) the project will materially assist, directly or indirectly, the creation of additional 
16.31 	long-term employment opportunities;
16.32 	(2) the prospective benefits of the expenditure exceed the anticipated costs; and
16.33 	(3) in the case of assistance to private enterprise, the project will serve a sound 
16.34 	business purpose.
17.1 	Each project must be approved by the board and the commissioner of Iron Range 
17.2 	resources and rehabilitation. The list of projects must be submitted to the governor, 
17.3 	who shall, by November 15 of each year, approve, disapprove, or return for further 
17.4 	consideration, each project. The money for a project may be spent only upon approval of 
17.5 	the project by the governor. The board may submit supplemental projects for approval at 
17.6 	any time.
17.7 		Subd. 5.Advisory committees. Before submission to the board commission of 
17.8 	a proposal for a project for expenditure of money appropriated under this section, the 
17.9 	commissioner of Iron Range resources and rehabilitation shall may appoint a technical 
17.10 	advisory committee consisting of at least seven persons who are knowledgeable in areas 
17.11 	related to the objectives of the proposal. If the project involves investment in a scientific 
17.12 	research proposal, at least four of the committee members must be knowledgeable in the 
17.13 	specific scientific research area relating to the project. Members of the committees must 
17.14 	be compensated as provided in section 15.059, subdivision 3. The board shall not act on 
17.15 	a proposal until it has received the evaluation and recommendations of the technical 
17.16 	advisory committee.
17.17 		Subd. 6.Use of repayments and earnings. Principal and interest received in 
17.18 	repayment of loans made under this section must be deposited in the northeast Minnesota 
17.19 	economic development fund in the state treasury and are appropriated to the board for the 
17.20 	purposes of this section.

17.21 	EFFECTIVE DATE. This section is effective July 1, 2017.

17.22 	Sec. 11. Minnesota Statutes 2014, section 298.2214, subdivision 2, is amended to read:
17.23 		Subd. 2.Iron Range Higher Education Committee; membership. The members 
17.24 	of the committee shall consist of:
17.25 	(1) one member appointed by the governor;
17.26 	(2) one member appointed by the president of the University of Minnesota;
17.27 	(3) four members of the Legislative-Citizen Commission on Iron Range resources 
17.28 	and rehabilitation Board appointed by the chair governor;
17.29 	(4) the commissioner of Iron Range resources and rehabilitation; and
17.30 	(5) the president of the Northeast Higher Education District or its successor.

17.31 	EFFECTIVE DATE. This section is effective July 1, 2017.

17.32 	Sec. 12. Minnesota Statutes 2014, section 298.223, is amended to read:
17.33 	298.223 TACONITE AREA ENVIRONMENTAL PROTECTION FUND.
18.1 		Subdivision 1.Creation; purposes. A fund called the taconite environmental 
18.2 	protection fund is created for the purpose of reclaiming, restoring and enhancing those 
18.3 	areas of northeast Minnesota located within the taconite assistance area defined in section 
18.4 	273.1341, that are adversely affected by the environmentally damaging operations 
18.5 	involved in mining taconite and iron ore and producing iron ore concentrate and for the 
18.6 	purpose of promoting the economic development of northeast Minnesota. The taconite 
18.7 	environmental protection fund shall be used for the following purposes, as provided by 
18.8 	legislative appropriations:
18.9 	(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation 
18.10 	Board commissioner determines are in need of study and which will determine the 
18.11 	environmental problems requiring remedial action;
18.12 	(2) reclamation, restoration, or reforestation of mine lands not otherwise provided 
18.13 	for by state law;
18.14 	(3) local economic development projects but only if those projects are approved by 
18.15 	the board commissioner, and public works, including construction of sewer and water 
18.16 	systems located within the taconite assistance area defined in section 273.1341;
18.17 	(4) monitoring of mineral industry related health problems among mining 
18.18 	employees; and 
18.19 	(5) local public works projects under section 298.227, paragraph (c); and.
18.20 	(6) local public works projects as provided under this clause. The following amounts 
18.21 	shall be distributed in 2009 based upon the taxable tonnage of production in 2008:
18.22 	(i) .4651 cent per ton to the city of Aurora for street repair and renovation;
18.23 	(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure 
18.24 	improvements to the south side industrial site;
18.25 	(iii) .6460 cent per ton to the city of Buhl for street repair;
18.26 	(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;
18.27 	(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure 
18.28 	upgrades;
18.29 	(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure 
18.30 	upgrades;
18.31 	(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;
18.32 	(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility 
18.33 	modifications for the miners' memorial;
18.34 	(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;
18.35 	(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;
18.36 	(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;
19.1 	(xii) .6460 cent per ton to the town of Balkan for community center repairs;
19.2 	(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;
19.3 	(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;
19.4 	(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;
19.5 	(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;
19.6 	(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;
19.7 	(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;
19.8 	(xix) .3230 cent per ton to Lake County for trail construction;
19.9 	(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand 
19.10 	Marais;
19.11 	(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure 
19.12 	improvements;
19.13 	(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;
19.14 	(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer 
19.15 	improvements along Gayley Avenue;
19.16 	(xxiv) .3876 cent per ton to the city of Marble for construction of a city 
19.17 	administration facility;
19.18 	(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the 
19.19 	community center;
19.20 	(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure 
19.21 	upgrades;
19.22 	(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades 
19.23 	along Depot Street;
19.24 	(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter 
19.25 	improvements;
19.26 	(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer 
19.27 	infrastructure upgrades at Pokegema Golf Course and Park Place;
19.28 	(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades 
19.29 	for 1st Avenue from River Road to 3rd Street SE; and
19.30 	(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing 
19.31 	at Highway 2 and County Road 62.
19.32 		Subd. 2.Administration. (a) The taconite area environmental protection fund shall 
19.33 	be administered by the commissioner of the Iron Range resources and rehabilitation.
19.34 	Board. The commissioner shall by September 1 of each year submit to the board a list 
19.35 	of projects to be funded from the taconite area environmental protection fund, with such 
20.1 	supporting information including description of the projects, plans, and cost estimates as 
20.2 	may be necessary.
20.3 	(b) Each year no less than one-half of the amounts deposited into the taconite 
20.4 	environmental protection fund must be used for public works projects, including 
20.5 	construction of sewer and water systems, as specified under subdivision 1, clause (3). 
20.6 	The Iron Range Resources and Rehabilitation Board may waive the requirements of 
20.7 	this paragraph.
20.8 	(c) Upon approval by the board, the list of projects approved under this subdivision 
20.9 	shall be submitted to the governor by November 1 of each year. By December 1 of each 
20.10 	year, the governor shall approve or disapprove, or return for further consideration, each 
20.11 	project. Funds for a project may be expended only upon approval of the project by the 
20.12 	board and the governor. The commissioner may submit supplemental projects to the 
20.13 	board and governor for approval at any time.
20.14 		Subd. 3.Appropriation. There is annually appropriated to the commissioner of Iron 
20.15 	Range resources and rehabilitation taconite area environmental protection funds necessary 
20.16 	to carry out approved projects and programs and the funds necessary for administration of 
20.17 	this section. Annual administrative costs, not including detailed engineering expenses for 
20.18 	the projects, shall not exceed five percent of the amount annually expended from the fund.
20.19 	Funds for the purposes of this section are provided by section 298.28, subdivision 
20.20 	11, relating to the taconite area environmental protection fund.

20.21 	EFFECTIVE DATE. This section is effective July 1, 2017.

20.22 	Sec. 13. Minnesota Statutes 2014, section 298.227, is amended to read:
20.23 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
20.24 	(a) An amount equal to that distributed pursuant to each taconite producer's taxable 
20.25 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 
20.26 	commissioner of Iron Range resources and rehabilitation Board in a separate taconite 
20.27 	economic development fund for each taconite and direct reduced ore producer. Money 
20.28 	from the fund for each producer shall be released by the commissioner after review 
20.29 	by a joint committee consisting of an equal number of representatives of the salaried 
20.30 	employees and the nonsalaried production and maintenance employees of that producer. 
20.31 	The District 11 director of the United States Steelworkers of America, on advice of each 
20.32 	local employee president, shall select the employee members. In nonorganized operations, 
20.33 	the employee committee shall be elected by the nonsalaried production and maintenance 
20.34 	employees. The review must be completed no later than six months after the producer 
21.1 	presents a proposal for expenditure of the funds to the committee. The funds held 
21.2 	pursuant to this section may be released only for workforce development and associated 
21.3 	public facility improvement, or for acquisition of plant and stationary mining equipment 
21.4 	and facilities for the producer or for research and development in Minnesota on new 
21.5 	mining, or taconite, iron, or steel production technology, but only if the producer provides 
21.6 	a matching expenditure equal to the amount of the distribution to be used for the same 
21.7 	purpose beginning with distributions in 2014. Effective for proposals for expenditures 
21.8 	of money from the fund beginning May 26, 2007, the commissioner may not release 
21.9 	the funds before the next scheduled meeting of the board. If a proposed expenditure is 
21.10 	not approved by the board, the funds must be deposited in the Taconite Environmental 
21.11 	Protection Fund under sections 298.222 to 298.225. If a producer uses money which has 
21.12 	been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile 
21.13 	equipment, or mining shovels, and the producer removes the piece of equipment from the 
21.14 	taconite tax relief area defined in section 273.134 within ten years from the date of receipt 
21.15 	of the money from the fund, a portion of the money granted from the fund must be repaid 
21.16 	to the taconite economic development fund. The portion of the money to be repaid is 100 
21.17 	percent of the grant if the equipment is removed from the taconite tax relief area within 12 
21.18 	months after receipt of the money from the fund, declining by ten percent for each of the 
21.19 	subsequent nine years during which the equipment remains within the taconite tax relief 
21.20 	area. If a taconite production facility is sold after operations at the facility had ceased, any 
21.21 	money remaining in the fund for the former producer may be released to the purchaser of 
21.22 	the facility on the terms otherwise applicable to the former producer under this section. If 
21.23 	a producer fails to provide matching funds for a proposed expenditure within six months 
21.24 	after the commissioner approves release of the funds, the funds are available for release to 
21.25 	another producer in proportion to the distribution provided and under the conditions of 
21.26 	this section. Any portion of the fund which is not released by the commissioner within 
21.27 	one year of its deposit in the fund shall be divided between the taconite environmental 
21.28 	protection fund created in section 298.223 and the Douglas J. Johnson economic protection 
21.29 	trust fund created in section 298.292 for placement in their respective special accounts. 
21.30 	Two-thirds of the unreleased funds shall be distributed to the taconite environmental 
21.31 	protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
21.32 	(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 
21.33 	distributions and the review process, an amount equal to ten cents per taxable ton of 
21.34 	production in 2007, for distribution in 2008 only, that would otherwise be distributed 
21.35 	under paragraph (a), may be used for a loan or grant for the cost of providing for a 
21.36 	value-added wood product facility located in the taconite tax relief area and in a county 
22.1 	that contains a city of the first class. This amount must be deducted from the distribution 
22.2 	under paragraph (a) for which a matching expenditure by the producer is not required. The 
22.3 	granting of the loan or grant is subject to approval by the board. If the money is provided 
22.4 	as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213, 
22.5 	subdivision 3. (ii) Repayments of the loan and interest, if any, must be deposited in the 
22.6 	taconite environment protection fund under sections 298.222 to 298.225. If a loan or 
22.7 	grant is not made under this paragraph by July 1, 2012, the amount that had been made 
22.8 	available for the loan under this paragraph must be transferred to the taconite environment 
22.9 	protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the 
22.10 	fund established under this section that exceeds ten cents per ton is available to qualifying 
22.11 	producers under paragraph (a) on a pro rata basis.
22.12 	(c) Repayment or transfer of money to the taconite environmental protection 
22.13 	fund under paragraph (b), item (ii), must be allocated by the Iron Range resources and 
22.14 	rehabilitation Board expended for public works projects in house legislative districts in 
22.15 	the same proportion as taxable tonnage of production in 2007 in each house legislative 
22.16 	district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for 
22.17 	distribution in 2008. Notwithstanding any other law to the contrary, expenditures under 
22.18 	this paragraph do not require approval by the governor. For purposes of this paragraph, 
22.19 	"house legislative districts" means the legislative districts in existence on May 15, 2009.

22.20 	EFFECTIVE DATE. This section is effective July 1, 2017.

22.21 	Sec. 14. Minnesota Statutes 2014, section 298.27, is amended to read:
22.22 	298.27 COLLECTION AND PAYMENT OF TAX.
22.23 	The taxes provided by section 298.24 shall be paid directly to each eligible 
22.24 	county and the commissioner of Iron Range resources and rehabilitation Board. The 
22.25 	commissioner of revenue shall notify each producer of the amount to be paid each recipient 
22.26 	prior to February 15. Every person subject to taxes imposed by section 298.24 shall file 
22.27 	a correct report covering the preceding year. The report must contain the information 
22.28 	required by the commissioner. The report shall be filed by each producer on or before 
22.29 	February 1. A remittance equal to 50 percent of the total tax required to be paid hereunder 
22.30 	shall be paid on or before February 24. A remittance equal to the remaining total tax 
22.31 	required to be paid hereunder shall be paid on or before August 24. On or before February 
22.32 	25 and August 25, the county auditor shall make distribution of the payments previously 
22.33 	received by the county in the manner provided by section 298.28. Reports shall be 
22.34 	made and hearings held upon the determination of the tax in accordance with procedures 
23.1 	established by the commissioner of revenue. The commissioner of revenue shall have 
23.2 	authority to make reasonable rules as to the form and manner of filing reports necessary 
23.3 	for the determination of the tax hereunder, and by such rules may require the production 
23.4 	of such information as may be reasonably necessary or convenient for the determination 
23.5 	and apportionment of the tax. All the provisions of the occupation tax law with reference 
23.6 	to the assessment and determination of the occupation tax, including all provisions for 
23.7 	appeals from or review of the orders of the commissioner of revenue relative thereto, but 
23.8 	not including provisions for refunds, are applicable to the taxes imposed by section 298.24
23.9 	except in so far as inconsistent herewith. If any person subject to section 298.24 shall 
23.10 	fail to make the report provided for in this section at the time and in the manner herein 
23.11 	provided, the commissioner of revenue shall in such case, upon information possessed or 
23.12 	obtained, ascertain the kind and amount of ore mined or produced and thereon find and 
23.13 	determine the amount of the tax due from such person. There shall be added to the amount 
23.14 	of tax due a penalty for failure to report on or before February 1, which penalty shall equal 
23.15 	ten percent of the tax imposed and be treated as a part thereof.
23.16 	If any person responsible for making a tax payment at the time and in the manner 
23.17 	herein provided fails to do so, there shall be imposed a penalty equal to ten percent of the 
23.18 	amount so due, which penalty shall be treated as part of the tax due.
23.19 	In the case of any underpayment of the tax payment required herein, there may be 
23.20 	added and be treated as part of the tax due a penalty equal to ten percent of the amount 
23.21 	so underpaid.
23.22 	A person having a liability of $120,000 or more during a calendar year must remit 
23.23 	all liabilities by means of a funds transfer as defined in section 336.4A-104, paragraph (a). 
23.24 	The funds transfer payment date, as defined in section 336.4A-401, must be on or before 
23.25 	the date the tax is due. If the date the tax is due is not a funds transfer business day, as 
23.26 	defined in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or 
23.27 	before the funds transfer business day next following the date the tax is due.

23.28 	EFFECTIVE DATE. This section is effective July 1, 2017.

23.29 	Sec. 15. Minnesota Statutes 2014, section 298.28, subdivision 7, is amended to read:
23.30 		Subd. 7.Iron Range resources and rehabilitation Board account. For the 1998 
23.31 	distribution, 6.5 cents per taxable ton shall be paid to the commissioner for deposit in 
23.32 	the Iron Range resources and rehabilitation Board account for the purposes of section 
23.33 	298.22. That amount shall be increased for distribution years 1999 through 2014 and 
23.34 	for distribution in 2018 and subsequent years in the same proportion as the increase in 
23.35 	the implicit price deflator as provided in section 298.24, subdivision 1. The amount 
24.1 	distributed pursuant to this subdivision shall be expended within or for the benefit of the 
24.2 	taconite assistance area defined in section 273.1341. No part of the fund provided in this 
24.3 	subdivision may be used to provide loans for the operation of private business unless the 
24.4 	loan is approved by the governor.

24.5 	EFFECTIVE DATE. This section is effective July 1, 2017.

24.6 	Sec. 16. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:
24.7 		Subd. 7a.Iron Range school consolidation and cooperatively operated school 
24.8 	account. The following amounts must be allocated to the commissioner of Iron Range 
24.9 	resources and rehabilitation Board to be deposited in the Iron Range school consolidation 
24.10 	and cooperatively operated school account that is hereby created:
24.11 	(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax 
24.12 	imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per 
24.13 	taxable ton of the tax imposed under section 298.24;
24.14 	(2) the amount as determined under section 298.17, paragraph (b), clause (3);
24.15 	(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 
24.16 	proceeds attributable to the increase in the implicit price deflator as provided in section 
24.17 	298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J. 
24.18 	Johnson economic protection trust fund;
24.19 	(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the 
24.20 	increased tax proceeds attributable to the increase in the implicit price deflator as provided 
24.21 	in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining 
24.22 	one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
24.23 	(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the 
24.24 	increased tax proceeds attributable to the increase in the implicit price deflator as provided 
24.25 	in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the 
24.26 	remaining one-third to be distributed to the Douglas J. Johnson economic protection 
24.27 	trust fund; and
24.28 	(4) any other amount as provided by law.
24.29 	Expenditures from this account shall be made only to provide disbursements to 
24.30 	assist school districts with the payment of bonds that were issued for qualified school 
24.31 	projects, or for any other school disbursement as approved by the commissioner of Iron 
24.32 	Range resources and rehabilitation Board. For purposes of this section, "qualified school 
24.33 	projects" means school projects within the taconite assistance area as defined in section 
24.34 	273.1341, that were (1) approved, by referendum, after April 3, 2006; and (2) approved by 
24.35 	the commissioner of education pursuant to section 123B.71.
25.1 	Beginning in fiscal year 2019, the disbursement to school districts for payments for 
25.2 	bonds issued under section 123A.482, subdivision 9, must be increased each year to 
25.3 	offset any reduction in debt service equalization aid that the school district qualifies for in 
25.4 	that year, under section 123B.53, subdivision 6, compared with the amount the school 
25.5 	district qualified for in fiscal year 2018.
25.6 	No expenditure under this section shall be made unless approved by seven members 
25.7 	of the Iron Range Resources and Rehabilitation Board.

25.8 	EFFECTIVE DATE. This section is effective July 1, 2017.

25.9 	Sec. 17. Minnesota Statutes 2014, section 298.28, subdivision 9c, is amended to read:
25.10 		Subd. 9c. Distribution; city of Eveleth. 0.20 cent per taxable ton must be paid to 
25.11 	the city of Eveleth for distribution in 2013 and thereafter, to be used for the support of the 
25.12 	Hockey Hall of Fame, provided that it continues to operate in that city, and provided that 
25.13 	the city of Eveleth certifies to the St. Louis County auditor that it has received donations 
25.14 	for the support of the Hockey Hall of Fame from other donors. If the Hockey Hall of 
25.15 	Fame ceases to operate in the city of Eveleth prior to receipt of the distribution in any 
25.16 	year, and the governing body of the city determines that it is unlikely to resume operation 
25.17 	there within a six-month period, the distribution under this subdivision shall be made to 
25.18 	the commissioner of Iron Range resources and rehabilitation Board.

25.19 	EFFECTIVE DATE. This section is effective July 1, 2017.

25.20 	Sec. 18. Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:
25.21 		Subd. 9d.Iron Range higher education account. Five cents per taxable ton 
25.22 	must be allocated to the Iron Range resources and rehabilitation Board to be deposited 
25.23 	in an Iron Range higher education account that is hereby created, to be used for higher 
25.24 	education programs conducted at educational institutions in the taconite assistance 
25.25 	area defined in section 273.1341. The Iron Range Higher Education Committee under 
25.26 	section 298.2214, and the Iron Range Resources and Rehabilitation Board must approve
25.27 	review all expenditures from the account prior to submission by the commissioner of the 
25.28 	proposed expenditures to the Legislative-Citizen Commission on Iron Range Resources 
25.29 	and Rehabilitation.

25.30 	EFFECTIVE DATE. This section is effective July 1, 2017.

25.31 	Sec. 19. Minnesota Statutes 2014, section 298.28, subdivision 11, is amended to read:
26.1 		Subd. 11.Remainder. (a) The proceeds of the tax imposed by section 298.24 which 
26.2 	remain after the distributions and payments in subdivisions 2 to 10a, as certified by the 
26.3 	commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with 
26.4 	interest earned on all money distributed under this section prior to distribution, shall be 
26.5 	divided between the taconite environmental protection fund created in section 298.223
26.6 	and the Douglas J. Johnson economic protection trust fund created in section 298.292 as 
26.7 	follows: Two-thirds to the taconite environmental protection fund and one-third to the 
26.8 	Douglas J. Johnson economic protection trust fund. The proceeds shall be placed in 
26.9 	the respective special accounts.
26.10 	(b) There shall be distributed to each city, town, and county the amount that it 
26.11 	received under Minnesota Statutes 1978, section 294.26 in calendar year 1977; provided, 
26.12 	however, that the amount distributed in 1981 to the unorganized territory number 2 of 
26.13 	Lake County and the town of Beaver Bay based on the between-terminal trackage of Erie 
26.14 	Mining Company will be distributed in 1982 and subsequent years to the unorganized 
26.15 	territory number 2 of Lake County and the towns of Beaver Bay and Stony River based on 
26.16 	the miles of track of Erie Mining Company in each taxing district.
26.17 	(c) There shall be distributed to the Iron Range resources and rehabilitation Board
26.18 	account the amounts it received in 1977 under section 298.22. The amount distributed 
26.19 	under this paragraph shall be expended within or for the benefit of the taconite assistance 
26.20 	area defined in section 273.1341.
26.21 	(d) There shall be distributed to each school district 62 percent of the amount that it 
26.22 	received under Minnesota Statutes 1978, section 294.26 in calendar year 1977.

26.23 	EFFECTIVE DATE. This section is effective July 1, 2017.

26.24 	Sec. 20. Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read:
26.25 		Subd. 2.Use of money. Money in the Douglas J. Johnson economic protection trust 
26.26 	fund may be used for the following purposes:
26.27 	(1) to provide loans, loan guarantees, interest buy-downs and other forms of 
26.28 	participation with private sources of financing, but a loan to a private enterprise shall be 
26.29 	for a principal amount not to exceed one-half of the cost of the project for which financing 
26.30 	is sought, and the rate of interest on a loan to a private enterprise shall be no less than the 
26.31 	lesser of eight percent or an interest rate three percentage points less than a full faith 
26.32 	and credit obligation of the United States government of comparable maturity, at the 
26.33 	time that the loan is approved;
26.34 	(2) to fund reserve accounts established to secure the payment when due of the 
26.35 	principal of and interest on bonds issued pursuant to section 298.2211;
27.1 	(3) to pay in periodic payments or in a lump-sum payment any or all of the interest 
27.2 	on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, 
27.3 	or retrofitting heating facilities in connection with district heating systems or systems 
27.4 	utilizing alternative energy sources;
27.5 	(4) to invest in a venture capital fund or enterprise that will provide capital to other 
27.6 	entities that are engaging in, or that will engage in, projects or programs that have the 
27.7 	purposes set forth in subdivision 1. No investments may be made in a venture capital fund 
27.8 	or enterprise unless at least two other unrelated investors make investments of at least 
27.9 	$500,000 in the venture capital fund or enterprise, and the investment by the Douglas 
27.10 	J. Johnson economic protection trust fund may not exceed the amount of the largest 
27.11 	investment by an unrelated investor in the venture capital fund or enterprise. For purposes 
27.12 	of this subdivision, an "unrelated investor" is a person or entity that is not related to 
27.13 	the entity in which the investment is made or to any individual who owns more than 40 
27.14 	percent of the value of the entity, in any of the following relationships: spouse, parent, 
27.15 	child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of 
27.16 	the value of all interests in it. For purposes of determining the limitations under this 
27.17 	clause, the amount of investments made by an investor other than the Douglas J. Johnson 
27.18 	economic protection trust fund is the sum of all investments made in the venture capital 
27.19 	fund or enterprise during the period beginning one year before the date of the investment 
27.20 	by the Douglas J. Johnson economic protection trust fund; and
27.21 	(5) to purchase forest land in the taconite assistance area defined in section 273.1341 
27.22 	to be held and managed as a public trust for the benefit of the area for the purposes 
27.23 	authorized in section 298.22, subdivision 5a. Property purchased under this section may 
27.24 	be sold by the commissioner only upon approval by the board specific authorization 
27.25 	by law. The net proceeds must be deposited in the trust fund for the purposes and uses 
27.26 	of this section.
27.27 	Money from the trust fund shall be expended only in or for the benefit of the taconite 
27.28 	assistance area defined in section 273.1341.

27.29 	EFFECTIVE DATE. This section is effective July 1, 2017.

27.30 	Sec. 21. Minnesota Statutes 2014, section 298.294, is amended to read:
27.31 	298.294 INVESTMENT OF FUND.
27.32 	(a) The trust fund established by section 298.292 shall be invested pursuant to law 
27.33 	by the State Board of Investment and the net interest, dividends, and other earnings arising 
27.34 	from the investments shall be transferred, except as provided in paragraph (b), on the first 
28.1 	day of each month to the trust and shall be included and become part of the trust fund. 
28.2 	The amounts transferred, including the interest, dividends, and other earnings earned 
28.3 	prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year 
28.4 	1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the 
28.5 	commissioner of Iron Range resources and rehabilitation for deposit in a separate account 
28.6 	for expenditure for the purposes set forth in section 298.292. Amounts appropriated 
28.7 	pursuant to this section shall not cancel but shall remain available unless expended.
28.8 	(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends, 
28.9 	and other earnings under paragraph (a) shall be transferred to a special account. Funds 
28.10 	in the special account are available for loans or grants to businesses, with priority given 
28.11 	to businesses with 25 or fewer employees. Funds may be used for wage subsidies for 
28.12 	up to 52 weeks of up to $5 per hour or other activities, including, but not limited to, 
28.13 	short-term operating expenses and purchase of equipment and materials by businesses 
28.14 	under financial duress, that will create additional jobs in the taconite assistance area under 
28.15 	section 273.1341. Expenditures from the special account must be approved by the board.
28.16 	(c) To qualify for a grant or loan, a business must be currently operating and have 
28.17 	been operating for one year immediately prior to its application for a loan or grant, and its 
28.18 	corporate headquarters must be located in the taconite assistance area.

28.19 	EFFECTIVE DATE. This section is effective July 1, 2017.

28.20 	Sec. 22. Minnesota Statutes 2014, section 298.296, is amended to read:
28.21 	298.296 OPERATION OF FUND.
28.22 		Subdivision 1.Project approval list. The board and commissioner shall by 
28.23 	August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson 
28.24 	economic protection trust with necessary supporting information including description of 
28.25 	the projects, plans, and cost estimates. These projects shall be consistent with the priorities 
28.26 	established in section 298.292and shall not be approved by the board unless it finds that:
28.27 	(a) the project will materially assist, directly or indirectly, the creation of additional 
28.28 	long-term employment opportunities;
28.29 	(b) the prospective benefits of the expenditure exceed the anticipated costs; and
28.30 	(c) in the case of assistance to private enterprise, the project will serve a sound 
28.31 	business purpose. 
28.32 	Each project must be approved by over one-half of all of the members of the board 
28.33 	and the commissioner of Iron Range resources and rehabilitation. The list of projects 
28.34 	shall be submitted to the governor, who shall, by November 15 of each year, approve or 
29.1 	disapprove, or return for further consideration, each project. The money for a project may 
29.2 	be expended only upon approval of the project by the governor. The board may submit 
29.3 	supplemental projects for approval at any time.
29.4 		Subd. 2.Expenditure of funds. (a) Before January 1, 2028, funds may be expended 
29.5 	on projects and for administration of the trust fund only from the net interest, earnings, 
29.6 	and dividends arising from the investment of the trust at any time, including net interest, 
29.7 	earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made 
29.8 	available for use in fiscal year 1983, except that any amount required to be paid out of the 
29.9 	trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article 
29.10 	X, section 4, and to make school bond payments and payments to recipients of taconite 
29.11 	production tax proceeds pursuant to section 298.225, may be taken from the corpus of 
29.12 	the trust.
29.13 	(b) Additionally, upon recommendation by the board, Up to $13,000,000 from the 
29.14 	corpus of the trust may be made available for use as provided in subdivision 4, and up to 
29.15 	$10,000,000 from the corpus of the trust may be made available for use as provided in 
29.16 	section 298.2961.
29.17 	(c) Additionally, An amount equal to 20 percent of the value of the corpus of the 
29.18 	trust on May 18, 2002, not including the funds authorized in paragraph (b), plus the 
29.19 	amounts made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, 
29.20 	article 8, section 17, may be expended on projects. Funds may be expended for projects 
29.21 	under this paragraph only if the project:
29.22 	(1) is for the purposes established under section 298.292, subdivision 1, clause 
29.23 	(1) or (2); and.
29.24 	(2) is approved by two-thirds of all of the members of the board.
29.25 	No money made available under this paragraph or paragraph (d) can be used for 
29.26 	administrative or operating expenses of the commissioner of Iron Range resources and 
29.27 	rehabilitation Board or expenses relating to any facilities owned or operated by the board
29.28 	commissioner on May 18, 2002.
29.29 	(d) Upon recommendation by a unanimous vote of all members of the board, 
29.30 	amounts in addition to those authorized under paragraphs (a), (b), and (c) may be 
29.31 	expended on projects described in section 298.292, subdivision 1.
29.32 	(e) (d) Annual administrative costs, not including detailed engineering expenses for 
29.33 	the projects, shall not exceed five percent of the net interest, dividends, and earnings 
29.34 	arising from the trust in the preceding fiscal year.
29.35 	(f) (e) Principal and interest received in repayment of loans made pursuant to this 
29.36 	section, and earnings on other investments made under section 298.292, subdivision 2, 
30.1 	clause (4), shall be deposited in the state treasury and credited to the trust. These receipts 
30.2 	are appropriated to the board for the purposes of sections 298.291 to 298.298.
30.3 	(g) (f)Additionally, notwithstanding section 298.293, upon the approval of the 
30.4 	board, Money from the corpus of the trust may be expanded to purchase forest lands 
30.5 	within the taconite assistance area as provided in sections 298.22, subdivision 5a, and 
30.6 	298.292, subdivision 2, clause (5).
30.7 		Subd. 3.Administration. The commissioner and staff of the Iron Range resources 
30.8 	and rehabilitation Board shall administer the program under which funds are expended 
30.9 	pursuant to sections 298.292 to 298.298.
30.10 		Subd. 4.Temporary loan authority. (a) The board commissioner may recommend 
30.11 	that up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees, 
30.12 	grants, or equity investments as provided in this subdivision. The money would be 
30.13 	available for loans for construction and equipping of facilities constituting (1) a value 
30.14 	added iron products plant, which may be either a new plant or a facility incorporated into 
30.15 	an existing plant that produces iron upgraded to a minimum of 75 percent iron content or 
30.16 	any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine 
30.17 	or minerals processing plant for any mineral subject to the net proceeds tax imposed 
30.18 	under section 298.015. A loan or loan guarantee under this paragraph may not exceed 
30.19 	$5,000,000 for any facility.
30.20 	(b) Additionally, the board must reserve the first $2,000,000 of the net interest, 
30.21 	dividends, and earnings arising from the investment of the trust after June 30, 1996, to 
30.22 	be used must be reserved for grants, loans, loan guarantees, or equity investments for 
30.23 	the purposes set forth in paragraph (a). This amount must be reserved until it is used 
30.24 	as described in this subdivision.
30.25 	(c) Additionally, the board may recommend that Up to $5,500,000 from the corpus 
30.26 	of the trust may be used for additional grants, loans, loan guarantees, or equity investments 
30.27 	for the purposes set forth in paragraph (a).
30.28 	(d) The board commissioner may require that it the fund receive an equity percentage 
30.29 	in any project to which it contributes under this section.

30.30 	EFFECTIVE DATE. This section is effective July 1, 2017.

30.31 	Sec. 23. Minnesota Statutes 2014, section 298.2961, is amended to read:
30.32 	298.2961 PRODUCER GRANTS.
30.33 		Subdivision 1.Appropriation. (a) $10,000,000 is appropriated from the Douglas 
30.34 	J. Johnson economic protection trust fund to a special account in the taconite area 
31.1 	environmental protection fund for grants to producers on a project-by-project basis as 
31.2 	provided in this section.
31.3 	(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are 
31.4 	appropriated may only be used for grants to producers on a project-by-project basis as 
31.5 	provided in this section.
31.6 		Subd. 2.Projects; approval. (a) Projects funded must be for:
31.7 	(1) environmentally unique reclamation projects; or
31.8 	(2) pit or plant repairs, expansions, or modernizations other than for a value added 
31.9 	iron products plant.
31.10 	(b) To be proposed by the board, a project must be approved by the board. The 
31.11 	money for a project may be spent only upon specific approval of the project by the 
31.12 	governor. The board may submit supplemental projects for approval at any time law.
31.13 	(c) The board commissioner may require that it the fund receive an equity percentage 
31.14 	in any project to which it contributes under this section.
31.15 		Subd. 3.Redistribution. (a) If a taconite production facility is sold after operations 
31.16 	at the facility had ceased, any money remaining in the taconite environmental fund for the 
31.17 	former producer may be released to the purchaser of the facility on the terms otherwise 
31.18 	applicable to the former producer under this section.
31.19 	(b) Any portion of the taconite environmental fund that is not released by the 
31.20 	commissioner within three years of its deposit in the taconite environmental fund shall be 
31.21 	divided between the taconite environmental protection fund created in section 298.223 
31.22 	and the Douglas J. Johnson economic protection trust fund created in section 298.292 for 
31.23 	placement in their respective special accounts. Two-thirds of the unreleased funds must be 
31.24 	distributed to the taconite environmental protection fund and one-third to the Douglas J. 
31.25 	Johnson economic protection trust fund.
31.26 		Subd. 4.Grant and loan fund. (a) A fund is established to receive distributions 
31.27 	under section 298.28, subdivision 9b, and to make grants or loans as provided in this 
31.28 	subdivision. Any grant or loan made under this subdivision must be specifically approved 
31.29 	by the board, established under section 298.22 law.
31.30 	(b) Distributions received in calendar year 2005 are allocated to the city of Virginia 
31.31 	for improvements and repairs to the city's steam heating system.
31.32 	(c) Distributions received in calendar year 2006 are allocated to a project of the 
31.33 	public utilities commissions of the cities of Hibbing and Virginia to convert their electrical 
31.34 	generating plants to the use of biomass products, such as wood.
31.35 	(d) Distributions received in calendar year 2007 must be paid to the city of Tower to 
31.36 	be used for the East Two Rivers project in or near the city of Tower.
32.1 	(e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution 
32.2 	must be paid to St. Louis County for deposit in its county road and bridge fund to be 
32.3 	used for relocation of St. Louis County Road 715, commonly referred to as Pike River 
32.4 	Road. The remainder of the 2008 distribution must be paid to St. Louis County for a 
32.5 	grant to the city of Virginia for connecting sewer and water lines to the St. Louis County 
32.6 	maintenance garage on Highway 135, further extending the lines to interconnect with the 
32.7 	city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent 
32.8 	years are allocated for projects under section 298.223, subdivision 1.
32.9 		Subd. 5.Public works and local economic development fund. For distributions in 
32.10 	2007 only, a special fund is established to receive 38.4 cents per ton that otherwise would 
32.11 	be allocated under section 298.28, subdivision 6. The following amounts are allocated to 
32.12 	St. Louis County acting as the fiscal agent for the recipients for the specific purposes:
32.13 	(1) 13.4 cents per ton for the Central Iron Range Sanitary Sewer District for 
32.14 	construction of a combined wastewater facility and notwithstanding section 298.28, 
32.15 	subdivision 11, paragraph (a), or any other law, interest accrued on this money while held 
32.16 	by St. Louis County shall also be distributed to the recipient;
32.17 	(2) six cents per ton to the city of Eveleth to redesign and design and construct 
32.18 	improvements to renovate its water treatment facility;
32.19 	(3) one cent per ton for the East Range Joint Powers Board to acquire land for and to 
32.20 	design a central wastewater collection and treatment system;
32.21 	(4) 0.5 cents per ton to the city of Hoyt Lakes to repair Leeds Road;
32.22 	(5) 0.7 cents per ton to the city of Virginia to extend Eighth Street South;
32.23 	(6) 0.7 cents per ton to the city of Mountain Iron to repair Hoover Road;
32.24 	(7) 0.9 cents per ton to the city of Gilbert for alley repairs between Michigan and 
32.25 	Indiana Avenues and for repayment of a loan to the Minnesota Department of Employment 
32.26 	and Economic Development;
32.27 	(8) 0.4 cents per ton to the city of Keewatin for a new city well;
32.28 	(9) 0.3 cents per ton to the city of Grand Rapids for planning for a fire and hazardous 
32.29 	materials center;
32.30 	(10) 0.9 cents per ton to Aitkin County Growth for an economic development 
32.31 	project for peat harvesting;
32.32 	(11) 0.4 cents per ton to the city of Nashwauk to develop a comprehensive city plan;
32.33 	(12) 0.4 cents per ton to the city of Taconite for development of a city comprehensive 
32.34 	plan;
32.35 	(13) 0.3 cents per ton to the city of Marble for water and sewer infrastructure;
33.1 	(14) 0.8 cents per ton to Aitkin County for improvements to the Long Lake 
33.2 	Environmental Learning Center;
33.3 	(15) 0.3 cents per ton to the city of Coleraine for the Coleraine Technology Center;
33.4 	(16) 0.5 cents per ton to the Economic Development Authority of the city of Grand 
33.5 	Rapids for planning for the North Central Research and Technology Laboratory;
33.6 	(17) 0.6 cents per ton to the city of Bovey for sewer and water extension;
33.7 	(18) 0.3 cents per ton to the city of Calumet for infrastructure improvements; and
33.8 	(19) ten cents per ton to the commissioner of Iron Range Resources and Rehabilitation 
33.9 	for deposit in a Highway 1 Corridor Account established by the commissioner, to be 
33.10 	distributed by the commissioner to any of the cities of Babbitt, Cook, Ely, or Tower, for 
33.11 	economic development projects approved by the board; notwithstanding section 298.28, 
33.12 	subdivision 11, paragraph (a), or any other law, interest accrued on this money while held 
33.13 	by St. Louis County or the commissioner shall also be distributed to the recipient.
33.14 		Subd. 6.Renewable energy. For distributions in 2009 only, a special account is 
33.15 	established in the taconite environmental protection fund to receive 15.5 cents per ton that 
33.16 	otherwise would be allocated under section 298.28, subdivision 6. The funds are available 
33.17 	for cooperative projects between the Iron Range Resources and Rehabilitation Board and 
33.18 	local governments for renewable energy initiatives.
33.19 		Subd. 7.2010 distributions only. For distributions in 2010 only, a special fund is 
33.20 	established to receive the sum of the following amounts that otherwise would be allocated 
33.21 	under section 298.28, subdivision 6. The following amounts are allocated to St. Louis 
33.22 	County acting as the fiscal agent for the recipients for the specific purposes:
33.23 	(1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide 
33.24 	incentives for at least two dentists to establish dental practices in high-need areas of the 
33.25 	taconite tax relief area;
33.26 	(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal 
33.27 	heat at the Olcott Park Greenhouse/Virginia Commons project;
33.28 	(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety 
33.29 	repairs at the Miners Memorial;
33.30 	(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction 
33.31 	of Highway 142/Grant and Park Avenues;
33.32 	(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for 
33.33 	upgrades and capital improvements to the public arena in Coleraine;
33.34 	(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and 
33.35 	pumphouse modifications;
34.1 	(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial 
34.2 	claims for water damage due to water and flood-related damage caused by the Canisteo Pit;
34.3 	(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and 
34.4 	child care center;
34.5 	(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer 
34.6 	upgrades;
34.7 	(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and 
34.8 	library project;
34.9 	(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of 
34.10 	water and sewer services for Lakewood Housing;
34.11 	(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at 
34.12 	the Children's Museum;
34.13 	(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil 
34.14 	corrections. This amount must be matched by local sources;
34.15 	(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
34.16 	(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
34.17 	(16) 0.159 cent per ton must be paid to Aitkin County for a trail;
34.18 	(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road 
34.19 	railroad crossing;
34.20 	(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and 
34.21 	striping of the community center parking lot;
34.22 	(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
34.23 	(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure 
34.24 	improvements, milling, and overlay for Summit Street between Alaska Avenue and 
34.25 	Highway 135;
34.26 	(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main 
34.27 	replacements and improvements in the Northeast Lower Alley area;
34.28 	(22) 0.637 cent per ton must be paid to the town of White for replacement of the 
34.29 	Stepetz Road culvert;
34.30 	(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon 
34.31 	Street and associated infrastructure;
34.32 	(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site 
34.33 	improvements at the Park Ridge development;
34.34 	(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure 
34.35 	and site preparation for its renewable and sustainable energy park;
35.1 	(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer 
35.2 	improvements;
35.3 	(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road 
35.4 	rebuilding for the Summit Addition;
35.5 	(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility 
35.6 	improvements;
35.7 	(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and 
35.8 	sewer infrastructure improvements;
35.9 	(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer 
35.10 	improvements;
35.11 	(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge 
35.12 	improvements and land purchase, provided that if the city sells or otherwise disposes of 
35.13 	any of the land purchased with the money provided under this clause within a period of 
35.14 	ten years after it was purchased, the city must transfer a portion of the proceeds of the 
35.15 	sale equal to the amount of the purchase price paid from the money provided under this 
35.16 	clause to the commissioner of Iron Range Resources and Rehabilitation for deposit in the 
35.17 	taconite environmental protection fund to be used for the purposes of the fund under 
35.18 	section 298.223;
35.19 	(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer 
35.20 	improvements;
35.21 	(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer 
35.22 	improvements;
35.23 	(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer 
35.24 	improvements;
35.25 	(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer 
35.26 	improvements;
35.27 	(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure 
35.28 	improvements;
35.29 	(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure 
35.30 	improvements;
35.31 	(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
35.32 	(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project 
35.33 	infrastructure improvements;
35.34 	(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety 
35.35 	improvements at the athletic facility;
36.1 	(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street 
36.2 	improvements;
36.3 	(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for 
36.4 	infrastructure related to a housing development;
36.5 	(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;
36.6 	(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to 
36.7 	a nonprofit for a signage kiosk;
36.8 	(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer 
36.9 	lines and adjacent development near County State-Aid Highway 24; and
36.10 	(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic 
36.11 	wall infrastructure around the athletic complex.

36.12 	EFFECTIVE DATE. This section is effective July 1, 2017.

36.13 	Sec. 24. Minnesota Statutes 2014, section 298.297, is amended to read:
36.14 	298.297 ADVISORY COMMITTEES.
36.15 	Before submission of a project to the board, The commissioner of Iron Range 
36.16 	resources and rehabilitation shall may appoint a technical advisory committee consisting 
36.17 	of one or more persons who are knowledgeable in areas related to the objectives of the 
36.18 	proposal. Members of the committees shall be compensated as provided in section 15.059, 
36.19 	subdivision 3. The board shall not act on a proposal until it has received the evaluation 
36.20 	and recommendations of the technical advisory committee or until 15 days have elapsed 
36.21 	since the proposal was transmitted to the advisory committee, whichever occurs first.

36.22 	EFFECTIVE DATE. This section is effective July 1, 2017.

36.23 	Sec. 25. Minnesota Statutes 2014, section 298.298, is amended to read:
36.24 	298.298 LONG-RANGE PLAN.
36.25 	Consistent with the policy established in sections 298.291 to 298.298, the 
36.26 	commissioner of Iron Range resources and rehabilitation Board shall prepare and present 
36.27 	to the governor and the legislature by December 31, 2006 2017, a long-range plan 
36.28 	for the use of the Douglas J. Johnson economic protection trust fund for the economic 
36.29 	development and diversification of the taconite assistance area defined in section 273.1341. 
36.30 	No project shall be approved by the Iron Range Resources and Rehabilitation Board which 
36.31 	is not consistent with the goals and objectives established in the long-range plan.

36.32 	EFFECTIVE DATE. This section is effective July 1, 2017.

37.1 	Sec. 26. Minnesota Statutes 2014, section 298.46, is amended to read:
37.2 	298.46 EXPLORATORY DRILLING FOR IRON ORE.
37.3 		Subdivision 1.Public policy. It is hereby declared to be in the public interest of this 
37.4 	state as a whole, and in particular with respect to counties or other political subdivisions, 
37.5 	to encourage the location of all deposits of iron ore hitherto unknown to such political 
37.6 	subdivisions, that may be susceptible of economic exploitation.
37.7 		Subd. 2.Unmined iron ore; valuation petition. When in the opinion of the duly 
37.8 	constituted authorities of a taxing district there are in existence reserves of unmined iron 
37.9 	ore located in such district, these authorities may petition the commissioner of Iron Range 
37.10 	resources and rehabilitation Board for authority to petition the county assessor to verify 
37.11 	the existence of such reserves and to ascertain the value thereof by drilling in a manner 
37.12 	consistent with established engineering and geological exploration methods, in order 
37.13 	that such taxing district may be able to forecast in a proper manner its future economic 
37.14 	and fiscal potentials.
37.15 		Subd. 3.Refusal to permit valuation; easement. If the fee owner of the land on 
37.16 	which the unmined iron ore is believed to be located, or the owner of a mineral interest 
37.17 	therein, refuses to permit the county assessor to ascertain the value of unmined iron ore 
37.18 	believed to be located on such land, the county attorney, acting in the name of the county 
37.19 	may institute proceedings under chapter 117, for the express purpose of being granted an 
37.20 	easement which would permit the county assessor to verify whether or not such land does, 
37.21 	in fact, contain reserves of unmined iron ore.
37.22 		Subd. 4.Discharge of easement. When the county assessor has verified the existence 
37.23 	of reserves of iron ore and has ascertained the value of such reserves, or in the alternative 
37.24 	has failed to locate any reserves susceptible of being economically exploited, the assessor 
37.25 	shall notify the county attorney, and the county attorney shall then, by appropriate means, 
37.26 	request the district court to discharge the easement secured for the purpose stated above.
37.27 		Subd. 5.Payment of costs; reimbursement. The cost of such exploration or 
37.28 	drilling plus any damages to the property which may be assessed by the district court 
37.29 	shall be paid by the commissioner of Iron Range resources and rehabilitation Board from 
37.30 	amounts appropriated to that board under section 298.22. The commissioner of Iron 
37.31 	Range resources and rehabilitation Board shall be reimbursed for one-half of the amounts 
37.32 	thus expended. Such reimbursement shall be made by the taxing districts in the proportion 
37.33 	that each such taxing district's levy on the property involved bears to the total levy on such 
37.34 	property. Such reimbursement shall be made to the commissioner of Iron Range resources 
37.35 	and rehabilitation Board in the manner provided by section 298.221.
38.1 		Subd. 6.Refusal to reimburse; reduction of other payments. If any taxing district 
38.2 	refuses to pay its share of the reimbursement as provided in subdivision 5, the county 
38.3 	auditor is hereby authorized to reduce payments required to be made by the county to such 
38.4 	taxing district under other provisions of law. Thereafter the auditor shall draw a warrant, 
38.5 	which shall be deposited with the state treasury in accordance with section 298.221, to the 
38.6 	credit of the commissioner of Iron Range resources and rehabilitation Board.
38.7 		Subd. 7.Area of application. The provisions of this section shall not apply in 
38.8 	the Boundary Waters Canoe Area.

38.9 	EFFECTIVE DATE. This section is effective July 1, 2017.

38.10 	Sec. 27. INITIAL APPOINTMENTS.
 38.11 	(a) Notwithstanding any law to the contrary, initial appointments of citizen members 
38.12 	to the Legislative-Citizen Commission may be made immediately upon recommendation 
38.13 	of the citizen selection committee.
38.14 	(b) Notwithstanding any law to the contrary, the governor's authority to appoint 
38.15 	initial members to the citizen selection committee under Minnesota Statutes, section 
38.16 	298.22, subdivision 1b, is effective the day following final enactment and is not subject to 
38.17 	the open appointments process under Minnesota Statutes, section 15.0597.
38.18 	(c) Notwithstanding any law to the contrary, initial appointments of legislative 
38.19 	members to the Legislative-Citizen Commission may be made immediately for terms 
38.20 	expiring the third Monday in January 2017.

38.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

38.22 	Sec. 28. GIANTS RIDGE STUDY; APPROPRIATION.
 38.23 	The Management Analysis Division of Minnesota Management and Budget must 
38.24 	study and make recommendations to the legislature by January 1, 2017, regarding the 
38.25 	future of the Giants Ridge Recreation Area project. The study must include, but is not 
38.26 	limited to, sale of the property, or transfer of the property to the Department of Natural 
38.27 	Resources. $....... in fiscal year 2016 is appropriated from the Iron Range resources and 
38.28 	rehabilitation account to the commissioner of management and budget for the study under 
38.29 	this section. This is a onetime appropriation and is available until June 30, 2017.

38.30 	Sec. 29. LEGISLATIVE COORDINATING COMMITTEE.
 39.1 	$420,000 in fiscal year 2017 is appropriated from the Iron Range resources and 
39.2 	rehabilitation account to the Legislative Coordinating Commission for the purposes of 
39.3 	Minnesota Statutes, section 298.22, subdivision 1h.

39.4 	Sec. 30. REVISOR'S INSTRUCTION.
 39.5 	The revisor of statutes shall prepare a bill in conjunction with relevant state agencies 
39.6 	containing any additional conforming changes necessary to transfer duties consistent with 
39.7 	this act for introduction in the 2017 legislative session.

39.8 	EFFECTIVE DATE. This section is effective July 1, 2016.