HF 1318

as introduced - 89th Legislature (2015 - 2016) Posted on 03/02/2015 01:20pm

A bill for an act
relating to taxation; minerals; making clarifying changes to laws administered
by the Office of the Commissioner of Iron Range Resources and Rehabilitation;
modifying funds; amending Minnesota Statutes 2014, sections 123B.53,
subdivision 1; 273.1341; 273.1342; 273.1391, subdivision 2; 298.018; 298.22,
subdivisions 1, 1a, 3, 4, 5, 5a, 6, 8, 10, 11; 298.221; 298.2211, subdivisions 1, 2, 3;
298.2213, subdivision 3; 298.2214, subdivisions 1, 3; 298.222; 298.223; 298.225,
subdivision 2; 298.227; 298.28, subdivisions 4, 7, 7a, 9a, 9b, 9d, 11, 15; 298.282,
subdivision 1; 298.292, subdivision 2; 298.293; 298.294; 298.296, subdivision 2;
298.2961, subdivision 3; repealing Minnesota Statutes 2014, section 298.298.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 123B.53, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible debt service
revenue of a district is defined as follows:

(1) the amount needed to produce between five and six percent in excess of the
amount needed to meet when due the principal and interest payments on the obligations
of the district for eligible projects according to subdivision 2, including the amounts
necessary for repayment of energy loans according to section 216C.37 or sections 298.292
to 298.298, debt service loans and capital loans, lease purchase payments under section
126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision
5, paragraph (a), minus

(2) the amount of debt service excess levy reduction for that school year calculated
according to the procedure established by the commissioner.

(b) The obligations in this paragraph are excluded from eligible debt service revenue:

(1) obligations under section 123B.61;

(2) the part of debt service principal and interest paid from the taconite deleted text begin environmental
protection deleted text end new text begin economic development new text end fund or Douglas J. Johnson economic protection trust,
excluding the portion of taconite payments from the Iron Range school consolidation and
cooperatively operated school account under section 298.28, subdivision 7a;

(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
amended by Laws 1992, chapter 499, article 5, section 24;

(4) obligations under section 123B.62; and

(5) obligations equalized under section 123B.535.

(c) For purposes of this section, if a preexisting school district reorganized under
sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
service equalization aid must be computed separately for each of the preexisting districts.

(d) For purposes of this section, the adjusted net tax capacity determined according
to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, subdivision 64.

Sec. 2.

Minnesota Statutes 2014, section 273.1341, is amended to read:

273.1341 deleted text begin TACONITE ASSISTANCE AREA deleted text end new text begin IRON RANGE RESOURCES
AND REHABILITATION SERVICE AREA new text end .

deleted text begin A "taconite assistance area" deleted text end new text begin "Iron Range Resources and Rehabilitation service area" new text end
means the geographic area that falls within the boundaries of a school district that contains:

(1) a municipality in which the assessed valuation of unmined iron ore on May 1,
1941, was not less than 40 percent of the assessed valuation of all real property; or

(2) a municipality in which on January 1, 1977, or the applicable assessment date,
there is a taconite concentrating plant or where taconite is mined or quarried or where
there is located an electric generating plant which qualifies as a taconite facility.

Sec. 3.

Minnesota Statutes 2014, section 273.1342, is amended to read:

273.1342 ELECTRIC GENERATING PLANTS IN TACONITE TAX RELIEF
AREAS.

For purposes of definitions of "taconite tax relief area" and deleted text begin "taconite assistance area" deleted text end new text begin
"Iron Range Resources and Rehabilitation service area" new text end in Minnesota Statutes, sections
273.134, 273.1341, and related laws, the elimination of the property tax exemption for
certain electric generating plants under Laws 2008, chapter 154, article 8, section 6, does
not change the status of any electric generating plant qualifying as a taconite facility.

Sec. 4.

Minnesota Statutes 2014, section 273.1391, subdivision 2, is amended to read:

Subd. 2.

Reduction amount.

The amount of the reduction authorized by
subdivision 1 shall be:

(a) In the case of property located within a school district which does not meet the
qualifications of section 273.134, paragraph (b), as a tax relief area, but which is located in
a county with a population of less than 100,000 in which taconite is mined or quarried
and wherein a school district is located which does meet the qualifications of a tax relief
area, and provided that at least 90 percent of the area of the school district which does
not meet the qualifications of section 273.134, paragraph (b), lies within such county,
57 percent of the tax on qualified property located in the school district that does not
meet the qualifications of section 273.134, paragraph (b), provided that the amount of
said reduction shall not exceed the maximum amounts specified in paragraph (d). The
reduction provided by this paragraph shall only be applicable to property located within
the boundaries of the county described therein.

(b) In the case of property located within a school district which does not meet the
qualifications of section 273.134, paragraph (b), as a tax relief area, but which is located in
a school district in a county containing a city of the first class and a municipality as defined
in section 273.134, paragraph (a), but not in a school district containing a city of the first
class or adjacent to a school district containing a city of the first class unless the school
district so adjacent contains a municipality as defined in section 273.134, paragraph (a),
57 percent of the tax, but not to exceed the maximums specified in paragraph (d).

(c) In the case of property located within the boundaries of a municipality that meets
the qualifications in section 273.134, paragraph (a), but not the qualifications of a tax relief
area in section 273.134, paragraph (b), 66 percent of the tax, provided that the reduction
shall not exceed $315.10. In the case of property located within the boundaries of a
school district which qualifies as deleted text begin a taconite assistance area deleted text end new text begin an Iron Range Resources and
Rehabilitation service area new text end under section 273.1341, but does not qualify as a tax relief area
under section 273.134, paragraph (b), but which is outside the boundaries of a municipality
which meets the qualifications of the preceding sentence, 57 percent of the tax, provided
that the reduction shall not exceed the maximum amounts specified in paragraph (d).

(d) Except as otherwise provided in this section, the maximum reduction of the
tax is $289.80.

Sec. 5.

Minnesota Statutes 2014, section 298.018, is amended to read:

298.018 DISTRIBUTION OF PROCEEDS.

Subdivision 1.

Within deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources and
Rehabilitation service area new text end .

The proceeds of the tax paid under sections 298.015 and
298.016 on ores, metals, or minerals mined or extracted within the deleted text begin taconite assistance area deleted text end new text begin
Iron Range Resources and Rehabilitation service area new text end defined in section 273.1341, shall
be allocated as follows:

(1) five percent to the city or town within which the minerals or energy resources
are mined or extracted, or within which the concentrate was produced. If the mining
and concentration, or different steps in either process, are carried on in more than one
taxing district, the commissioner shall apportion equitably the proceeds among the
cities and towns by attributing 50 percent of the proceeds of the tax to the operation of
mining or extraction, and the remainder to the concentrating plant and to the processes of
concentration, and with respect to each thereof giving due consideration to the relative
extent of the respective operations performed in each taxing district;

(2) ten percent to the taconite municipal aid account to be distributed as provided
in section 298.282;

(3) ten percent to the school district within which the minerals or energy resources
are mined or extracted, or within which the concentrate was produced. If the mining
and concentration, or different steps in either process, are carried on in more than one
school district, distribution among the school districts must be based on the apportionment
formula prescribed in clause (1);

(4) 20 percent to a group of school districts comprised of those school districts
wherein the mineral or energy resource was mined or extracted or in which there is a
qualifying municipality as defined by section 273.134, paragraph (b), in direct proportion
to school district indexes as follows: for each school district, its pupil units determined
under section 126C.05 for the prior school year shall be multiplied by the ratio of the
average adjusted net tax capacity per pupil unit for school districts receiving aid under
this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
Each district shall receive that portion of the distribution which its index bears to the sum
of the indices for all school districts that receive the distributions;

(5) 20 percent to the county within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one county,
distribution among the counties must be based on the apportionment formula prescribed in
clause (1), provided that any county receiving distributions under this clause shall pay one
percent of its proceeds to the Range Association of Municipalities and Schools;

(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be
distributed as provided in sections 273.134 to 273.136;

(7) five percent to the Iron Range Resources and Rehabilitation Board for the
purposes of section 298.22;

(8) three percent to the Douglas J. Johnson economic protection trust fund; and

(9) seven percent to the taconite deleted text begin environmental protection deleted text end new text begin economic development new text end
fund.

The proceeds of the tax shall be distributed on July 15 each year.

Subd. 2.

Outside deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources and
Rehabilitation service area new text end .

The proceeds of the tax paid under sections 298.015 and
298.016 on ores, metals, or minerals mined or extracted outside of the deleted text begin taconite assistance
area deleted text end new text begin Iron Range Resources and Rehabilitation service area new text end defined in section 273.1341,
shall be deposited in the general fund.

Sec. 6.

Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read:

Subdivision 1.

The Office of the Commissioner of Iron Range resources
and rehabilitation.

(a) The Office of the Commissioner of Iron Range resources and
rehabilitation is created as an agency in the executive branch of state government. The
governor shall appoint the commissioner of Iron Range resources and rehabilitation under
section 15.06.

(b) The commissioner may hold other positions or appointments that are not
incompatible with duties as commissioner deleted text begin of Iron Range resources and rehabilitation deleted text end . The
commissioner may appoint a deputy commissioner. All expenses of the commissioner,
including the payment of staff and other assistance as may be necessary, must be paid
out of the amounts appropriated by section 298.28 or otherwise made available by law
to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner
may utilize contracting options available under section 471.345 when the commissioner
determines it is in the best interest of the agency. The agency is not subject to sections
16E.016 and 16C.05.

(c) When the commissioner determines that distress and unemployment exists or
may exist in the future in any county by reason of the removal of natural resources or
a possibly limited use of natural resources in the future and any resulting decrease in
employment, the commissioner may use whatever amounts of the appropriation made to
the commissioner of revenue in section 298.28 that are determined to be necessary and
proper in the development of the remaining resources of the county and in the vocational
training and rehabilitation of its residents deleted text begin , except that the amount needed to cover cost
overruns awarded to a contractor by an arbitrator in relation to a contract awarded by
the commissioner or in effect after July 1, 1985, is appropriated from the general fund deleted text end .
For the purposes of this section, "development of remaining resources" includes, but is
not limited to, the promotion of tourism.

new text begin (d) Notwithstanding any law to the contrary, any money in any account that is under
control of the commissioner on January 1, 2014, shall remain with the agency and be
used for economic development purposes.
new text end

Sec. 7.

Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read:

Subd. 1a.

Iron Range Resources and Rehabilitation Board.

The Iron Range
Resources and Rehabilitation Board consists of the state senators and representatives
elected from state senatorial or legislative districts in which one-third or more of the
residents reside in deleted text begin a taconite assistance area deleted text end new text begin the Iron Range Resources and Rehabilitation
service area new text end as defined in section 273.1341. One additional state senator shall also be
appointed by the senate Subcommittee on Committees of the Committee on Rules and
Administration. All expenditures and projects made by the commissioner shall first be
submitted to the board for approval. The expenses of the board shall be paid by the state
from the funds raised pursuant to this section. Members of the board may be reimbursed
for expenses in the manner provided in sections 3.099, subdivision 1, and 3.101, and may
receive per diem payments during the interims between legislative sessions in the manner
provided in section 3.099, subdivision 1.

The members shall be appointed in January of every odd-numbered year, and shall
serve until January of the next odd-numbered year. Vacancies on the board shall be filled
in the same manner as original members were chosen.

Sec. 8.

Minnesota Statutes 2014, section 298.22, subdivision 3, is amended to read:

Subd. 3.

Commissioner may acquire property.

Whenever the commissioner of
Iron Range resources and rehabilitation has made determinations required by subdivision
1 and has determined that deleted text begin distress and unemployment exists or may exist in the future
in any county by reason of the removal of the natural resources or a possible limited use
thereof in the future and the decrease in employment resulting therefrom and deems that deleted text end new text begin
economic conditions might be improved through new text end the acquirement of real estate or personal
property deleted text begin is necessary and proper in the development of the remaining resources deleted text end , the
commissioner may acquire such property or interests therein by gift, purchase, or lease.
The commissioner may purchase insurance to protect any property acquired from loss or
damage by fire, or to protect the commissioner from any liability the commissioner may
incur by reason of ownership of the property, or both. If after such property is acquired it
is necessary in the judgment of the commissioner to acquire a right-of-way for access to
projects operated on property acquired by gift, purchase, or lease, said right-of-way may
be acquired by condemnation in the manner provided by law. If the owner or operator of
an iron mine or related production or beneficiation facilities discontinues the operation
of the mine or facilities for any reason, the commissioner may acquire any or all of the
mine lands and related facilities by gift, purchase, lease, or condemnation in the manner
provided in chapter 117.

Sec. 9.

Minnesota Statutes 2014, section 298.22, subdivision 4, is amended to read:

Subd. 4.

Commissioner may accept grants and conveyances.

Whenever property
has been granted and conveyed to the state of Minnesota in accordance with an agreement
made by the commissioner of Iron Range resources and rehabilitation and the commissioner
of administration for deleted text begin the necessary and proper development of the remaining resources of
any distressed county deleted text end new text begin economic development purposes new text end , such grants, and conveyances or
leases are hereby accepted in accordance with the terms and conditions thereof.

Sec. 10.

Minnesota Statutes 2014, section 298.22, subdivision 5, is amended to read:

Subd. 5.

Commissioner may lease property.

In order to carry out the terms and
provisions of this section, the commissioner of Iron Range resources and rehabilitation
and the commissioner of administration may lease any property acquired hereunder for
a term not to exceed 20 years upon such terms as they may determine, provided that
such property shall not be leased to any person in such a manner as to constitute a direct
contribution of working capital to a business enterprise. Such lease may provide that in the
event the property is ever sold by the state to such lessee, the lessee may obtain a credit
on the purchase price covering the rentals paid under the lease or any renewals thereof
and that said real estate can be conveyed by the commissioner of Iron Range resources
and rehabilitation and the commissioner of administration and the said commissioners
are hereby authorized to make such conveyances. new text begin The commissioner may lease, upon the
terms determined by the commissioner and approved by the board, surface and mineral
interests owned or acquired by the state of Minnesota acting by and through the Office
of the Commissioner of Iron Range Resources and Rehabilitation. The payments and
royalties from the leases shall be retained for the benefit of the agency.
new text end

Sec. 11.

Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read:

Subd. 5a.

Forest trust.

The commissioner, upon approval by the board,
may purchase forest lands in the deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources and
Rehabilitation service area new text end defined in deleted text begin under deleted text end section 273.1341 with funds specifically
authorized for the purchase. The acquired forest lands must be held in trust for the benefit of
the citizens of the deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources and Rehabilitation service
area new text end as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed
and developed for recreation and economic development purposes. The commissioner,
upon approval by the board, may sell forest lands purchased under this subdivision if the
board finds that the sale advances the purposes of the trust. Proceeds derived from the
management or sale of the lands and from the sale of timber or removal of gravel or other
minerals from these forest lands shall be deposited into an Iron Range Miners' Memorial
Forest account that is established within the state financial accounts. Funds may be
expended from the account upon approval by the board, to purchase, manage, administer,
convey interests in, and improve the forest lands. With approval by the board, money in
the Iron Range Miners' Memorial Forest account may be transferred into the corpus of the
Douglas J. Johnson economic protection trust fund established under sections 298.291
to 298.294. The property acquired under the authority granted by this subdivision and
income derived from the property or the operation or management of the property are
exempt from taxation by the state or its political subdivisions while held by the forest trust.

Sec. 12.

Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read:

Subd. 6.

Private entity participation.

The board may acquire an equity interest in
any project for which it provides funding. The commissioner may establish, participate in
the management of, and dispose of the assets of charitable foundations, nonprofit limited
liability companies, and nonprofit corporations associated with any project for which it
provides funding, including specifically, but without limitation, a corporation within the
meaning of section 317A.011, subdivision 6. new text begin Notwithstanding any law to the contrary,
agency funds that are transferred to any entity established by the commissioner under this
subdivision shall, upon request by the entity, be invested by the State Board of Investment
on behalf of the entity.
new text end

Sec. 13.

Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read:

Subd. 8.

Spending priority.

In making or approving any expenditures on programs
or projects, the commissioner and the board shall give the highest priority to programs
and projects that target relief to those areas of the deleted text begin taconite assistance area deleted text end new text begin Iron Range
Resources and Rehabilitation service area new text end as defined in section 273.1341, that have the
largest percentages of job losses and population losses directly attributable to the economic
downturn in the taconite industry since the 1980s. The commissioner and the board shall
compare the 1980 population and employment figures with the 2000 population and
employment figures, and shall specifically consider the job losses in 2000 and 2001
resulting from the closure of LTV Steel Mining Company, in making or approving
expenditures consistent with this subdivision, as well as the areas of residence of persons
who suffered job loss for which relief is to be targeted under this subdivision. The
commissioner may lease, for a term not exceeding 50 years and upon the terms determined
by the commissioner and approved by the board, surface and mineral interests owned or
acquired by the state of Minnesota acting by and through the office of the commissioner of
Iron Range resources and rehabilitation within those portions of the deleted text begin taconite assistance area deleted text end new text begin
Iron Range Resources and Rehabilitation service area new text end affected by the closure of the LTV
Steel Mining Company facility near Hoyt Lakes. The payments and royalties from these
leases must be deposited into the fund established in section 298.292. This subdivision
supersedes any other conflicting provisions of law and does not preclude the commissioner
and the board from making expenditures for programs and projects in other areas.

Sec. 14.

Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read:

Subd. 10.

Sale or privatization of functions.

The commissioner deleted text begin of Iron Range
resources and rehabilitation deleted text end may not sell or privatize the Ironworld Discovery Center or
Giants Ridge Golf and Ski Resort without prior approval by the board.

Sec. 15.

Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read:

Subd. 11.

Budgeting.

The commissioner deleted text begin of Iron Range resources and rehabilitation deleted text end
shall annually prepare a budget for operational expenditures, programs, and projects,
and submit it to the Iron Range Resources and Rehabilitation Board. After the budget
is approved by the board and the governor, the commissioner may spend money in
accordance with the approved budget.

Sec. 16.

Minnesota Statutes 2014, section 298.221, is amended to read:

298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.

(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
pursuant to the terms of any contract entered into by the state under authority of section
298.22 and any fees which may, in the discretion of the commissioner of Iron Range
resources and rehabilitation, be charged in connection with any project pursuant to that
section as amended, shall be deposited in the state treasury to the credit of the Iron Range
Resources and Rehabilitation Board account in the special revenue fund and are hereby
appropriated for the purposes of section 298.22.

(b) Notwithstanding section 16A.013, merchandise may be accepted by the
commissioner deleted text begin of the Iron Range Resources and Rehabilitation Board deleted text end for payment of
advertising contracts if the commissioner determines that the merchandise can be used
for special event prizes or mementos at facilities operated by the board. Nothing in this
paragraph authorizes the commissioner or a member of the board to receive merchandise
for personal use.

(c) All fees charged by the commissioner in connection with public use of the
state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
revenues derived by the commissioner from the operation or lease of those facilities
and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
Recreation Area must be deposited into an Iron Range Resources and Rehabilitation
Board account that is created within the state enterprise fund. All funds deposited in the
enterprise fund account are appropriated to the commissioner to be expended, subject to
approval by the board, as follows:

(1) to pay costs associated with the construction, equipping, operation, repair, or
improvement of the Giants Ridge Recreation Area facilities or lands;

(2) to pay principal, interest and associated bond issuance, reserve, and servicing
costs associated with the financing of the facilities; and

(3) to pay the costs of any other project authorized under section 298.22.

Sec. 17.

Minnesota Statutes 2014, section 298.2211, subdivision 1, is amended to read:

Subdivision 1.

Purpose; grant of authority.

In order to accomplish the legislative
purposes specified in sections 469.142 to 469.165 and chapter 462C, within the deleted text begin taconite
assistance area deleted text end new text begin Iron Range Resources and Rehabilitation service area new text end as defined in section
273.1341, the commissioner of Iron Range resources and rehabilitation may exercise the
following powers: (1) all powers conferred upon a rural development financing authority
under sections 469.142 to 469.149; (2) all powers conferred upon a city under chapter 462C;
(3) all powers conferred upon a municipality or a redevelopment agency under sections
469.152 to 469.165; (4) all powers provided by sections 469.142 to 469.151 to further any
of the purposes and objectives of chapter 462C and sections 469.152 to 469.165; (5) apply
for, borrow, receive, and expend grant and loan money made available from federal sources
and from federally funded programs; and (6) all powers conferred upon a municipality or
an authority under sections 469.174 to 469.177, 469.178, except subdivision 2 thereof,
and 469.179, subject to compliance with the provisions of section 469.175, subdivisions 1,
2, and 3; provided that any tax increments derived by the commissioner from the exercise
of this authority may be used only to finance or pay premiums or fees for insurance, letters
of credit, or other contracts guaranteeing the payment when due of net rentals under
a project lease or the payment of principal and interest due on or repurchase of bonds
issued to finance a project or program, to accumulate and maintain reserves securing the
payment when due on bonds issued to finance a project or program, or to provide an
interest rate reduction program pursuant to section 469.012, subdivision 7. Tax increments
and earnings thereon remaining in any bond reserve account after payment or discharge
of any bonds secured thereby shall be used within one year thereafter in furtherance of
this section or returned to the county auditor of the county in which the tax increment
financing district is located. If returned to the county auditor, the county auditor shall
immediately allocate the amount among all government units which would have shared
therein had the amount been received as part of the other ad valorem taxes on property in
the district most recently paid, in the same proportions as other taxes were distributed, and
shall immediately distribute it to the government units in accordance with the allocation.

Sec. 18.

Minnesota Statutes 2014, section 298.2211, subdivision 2, is amended to read:

Subd. 2.

Area of operation.

Projects undertaken, developed, or financed pursuant
to this section shall be located within the deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources
and Rehabilitation service area new text end defined in section 273.1341.

Sec. 19.

Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:

Subd. 3.

Project approval.

All projects authorized by this section shall be
submitted by the commissioner to the Iron Range Resources and Rehabilitation Board for
approval by the board. Prior to the commencement of a project involving the exercise by
the commissioner of any authority of sections 469.174 to 469.179, the governing body
of each municipality in which any part of the project is located and the county board of
any county containing portions of the project not located in an incorporated area shall by
majority vote approve or disapprove the project. deleted text begin Any project approved by the board and
the applicable governing bodies, if any, together with detailed information concerning the
project, its costs, the sources of its funding, and the amount of any bonded indebtedness to
be incurred in connection with the project, shall be transmitted to the governor, who shall
approve, disapprove, or return the proposal for additional consideration within 30 days of
receipt. deleted text end No project authorized under this section shall be undertaken, and no obligations
shall be issued and no tax increments shall be expended for a project authorized under this
section until the project has been approved by the governor. new text begin The governor shall approve,
disapprove, or return the project for additional consideration within 30 days of receipt.
new text end

Sec. 20.

Minnesota Statutes 2014, section 298.2213, subdivision 3, is amended to read:

Subd. 3.

Use of money.

The money appropriated under this section may be used
to provide loans, loan guarantees, interest buy-downs, and other forms of participation
with private sources of financing, provided that a loan to a private enterprise must be for a
principal amount not to exceed one-half of the cost of the project for which financing is
sought, and the rate of interest on a loan must be no less than the lesser of eight percent or
the rate of interest that is three percentage points less than a full faith and credit obligation of
the United States government of comparable maturity, at the time that the loan is approved.

Money appropriated in this section must be expended only in or for the benefit of the
deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources and Rehabilitation service area new text end defined in
section 273.1341, and as otherwise provided in this section.

Sec. 21.

Minnesota Statutes 2014, section 298.2214, subdivision 1, is amended to read:

Subdivision 1.

Creation of committee; purpose.

A committee is created to advise
the commissioner of Iron Range resources and rehabilitation on providing higher education
programs in the deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources and Rehabilitation service
area new text end defined in section 273.1341. The committee is subject to section 15.059.

Sec. 22.

Minnesota Statutes 2014, section 298.2214, subdivision 3, is amended to read:

Subd. 3.

Advisory function.

The committee shall advise the commissioner
regarding development of a contract with the state university system. The contract would
require the system to provide courses within the deleted text begin taconite assistance area deleted text end new text begin Iron Range
Resources and Rehabilitation service area new text end defined in section 273.1341.

Sec. 23.

Minnesota Statutes 2014, section 298.222, is amended to read:

298.222 CITATION.

Sections 298.222 to 298.226 and Laws 1977, chapter 423, article 10, section 22 shall
be known as the Taconite deleted text begin Environmental Protection deleted text end new text begin Economic Development new text end Fund Act
of 1977.

Sec. 24.

Minnesota Statutes 2014, section 298.223, is amended to read:

298.223 TACONITE AREA deleted text begin ENVIRONMENTAL PROTECTION deleted text end new text begin
ECONOMIC DEVELOPMENT new text end FUND.

Subdivision 1.

Creation; purposes.

A fund called the taconite deleted text begin environmental
protection deleted text end new text begin economic development new text end fund is created for the purpose of reclaiming, restoring
and enhancing those areas of northeast Minnesota located within the deleted text begin taconite assistance
deleted text end deleted text begin area deleted text end new text begin Iron Range Resources and Rehabilitation service area new text end defined in section 273.1341,
that are adversely affected by the environmentally damaging operations involved in
mining taconite and iron ore and producing iron ore concentrate and for the purpose of
promoting the economic development of northeast Minnesota. The taconite environmental
protection fund shall be used for the following purposes:

(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
Board determines are in need of study and which will determine the environmental
problems requiring remedial action;

(2) reclamation, restoration, or reforestation of mine lands not otherwise provided
for by state law;

(3) local economic development projects but only if those projects are approved by
the board, and public works, including construction of sewer and water systems located
within the taconite assistance area defined in section 273.1341;

(4) monitoring of mineral industry related health problems among mining employees;

(5) local public works projects under section 298.227, paragraph (c); and

(6) local public works projects as provided under this clause. The following amounts
shall be distributed in 2009 based upon the taxable tonnage of production in 2008:

(i) .4651 cent per ton to the city of Aurora for street repair and renovation;

(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
improvements to the south side industrial site;

(iii) .6460 cent per ton to the city of Buhl for street repair;

(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;

(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
upgrades;

(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
upgrades;

(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;

(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
modifications for the miners' memorial;

(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;

(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;

(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;

(xii) .6460 cent per ton to the town of Balkan for community center repairs;

(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;

(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;

(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;

(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;

(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;

(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;

(xix) .3230 cent per ton to Lake County for trail construction;

(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand
Marais;

(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure
improvements;

(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;

(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer
improvements along Gayley Avenue;

(xxiv) .3876 cent per ton to the city of Marble for construction of a city
administration facility;

(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the
community center;

(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure
upgrades;

(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades
along Depot Street;

(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
improvements;

(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
infrastructure upgrades at Pokegema Golf Course and Park Place;

(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades
for 1st Avenue from River Road to 3rd Street SE; and

(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing
at Highway 2 and County Road 62.

Subd. 2.

Administration.

(a) The taconite area deleted text begin environmental protection deleted text end new text begin economic
development new text end fund shall be administered by the commissioner of the Iron Range Resources
and Rehabilitation Board. The commissioner shall by September 1 of each year submit to
the board a list of projects to be funded from the taconite area deleted text begin environmental protection deleted text end new text begin
economic development new text end fund, with such supporting information including description of
the projects, plans, and cost estimates as may be necessary.

(b) Each year no less than one-half of the amounts deposited into the taconite
deleted text begin environmental protection deleted text end new text begin economic development new text end fund must be used for public works
projects, including construction of sewer and water systems, as specified under subdivision
1, clause (3). The Iron Range Resources and Rehabilitation Board may waive the
requirements of this paragraph.

(c) Upon approval by the board, the list of projects approved under this subdivision
shall be submitted to the governor by November 1 of each year. By December 1 of each
year, the governor shall approve or disapprove, or return for further consideration, each
project. Funds for a project may be expended only upon approval of the project by the
board and the governor. The commissioner may submit supplemental projects to the
board and governor for approval at any time.

Subd. 3.

Appropriation.

There is annually appropriated to the commissioner of
Iron Range resources and rehabilitation taconite area deleted text begin environmental protection deleted text end new text begin economic
development new text end funds necessary to carry out approved projects and programs and the funds
necessary for administration of this section. deleted text begin Annual administrative costs, not including
detailed engineering expenses for the projects, shall not exceed five percent of the amount
annually expended from the fund.
deleted text end

Funds for the purposes of this section are provided by section 298.28, subdivision
11, relating to the taconite area environmental protection fund.

Sec. 25.

Minnesota Statutes 2014, section 298.225, subdivision 2, is amended to read:

Subd. 2.

Funding guaranteed distribution level.

The money necessary for funding
the difference between the initial distribution made pursuant to section 298.28 and the
amount guaranteed in subdivision 1 is appropriated in equal proportions from the initial
current year distributions to the taconite deleted text begin environmental protection deleted text end new text begin economic development new text end
fund and to the Douglas J. Johnson economic protection trust pursuant to section 298.28.
If the initial distributions to the taconite deleted text begin environmental protection deleted text end new text begin economic development new text end
fund and the Douglas J. Johnson economic protection trust are insufficient to fund the
difference, the commissioner of Iron Range resources and rehabilitation shall make the
payments of any remaining difference from the corpus of the taconite deleted text begin environmental
protection deleted text end new text begin economic development new text end fund and the corpus of the Douglas J. Johnson economic
protection trust fund in equal proportions as directed by the commissioner of revenue.

If a taconite producer ceases beneficiation operations permanently and is required
by a special law to make bond payments for a school district, the Douglas J. Johnson
economic protection trust fund shall assume the payments of the taconite producer if
the producer ceases to make the needed payments. The commissioner of Iron Range
resources and rehabilitation shall make these school bond payments from the corpus of
the Douglas J. Johnson economic protection trust fund in the amounts certified by the
commissioner of revenue.

Sec. 26.

Minnesota Statutes 2014, section 298.227, is amended to read:

298.227 deleted text begin TACONITE ECONOMIC DEVELOPMENT deleted text end new text begin MINING
REINVESTMENT new text end FUND.

deleted text begin (a) deleted text end An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by
the Iron Range Resources and Rehabilitation Board in a separate deleted text begin taconite economic
development deleted text end new text begin mining reinvestment new text end fund for each taconite and direct reduced ore producer.
Money from the fund for each producer shall be released by the commissioner after review
by a joint committee consisting of an equal number of representatives of the salaried
employees and the nonsalaried production and maintenance employees of that producer.
The District 11 director of the United States Steelworkers of America, on advice of each
local employee president, shall select the employee members. In nonorganized operations,
the employee committee shall be elected by the nonsalaried production and maintenance
employees. The review must be completed no later than six months after the producer
presents a proposal for expenditure of the funds to the committee. The funds held pursuant
to this section may be released only for workforce development and associated public
facility improvement, or for acquisition of plant and stationary mining equipment and
facilities for the producer or for research and development in Minnesota on new mining, or
taconite, iron, or steel production technology, but only if the producer provides a matching
expenditure equal to the amount of the distribution to be used for the same purpose
beginning with distributions in 2014. Effective for proposals for expenditures of money
from the fund beginning May 26, 2007, the commissioner may not release the funds before
the next scheduled meeting of the board. If a proposed expenditure is not approved by the
board, the funds must be deposited in the deleted text begin Taconite Environmental Protection Fund deleted text end new text begin taconite
economic development fund new text end under sections 298.222 to 298.225. If a producer uses money
which has been released from the fund prior to May 26, 2007 to procure haulage trucks,
mobile equipment, or mining shovels, and the producer removes the piece of equipment
from the taconite tax relief area defined in section 273.134 within ten years from the date
of receipt of the money from the fund, a portion of the money granted from the fund must
be repaid to the deleted text begin taconite economic development deleted text end new text begin mining reinvestment new text end fund. The portion
of the money to be repaid is 100 percent of the grant if the equipment is removed from
the taconite tax relief area within 12 months after receipt of the money from the fund,
declining by ten percent for each of the subsequent nine years during which the equipment
remains within the taconite tax relief area. If a taconite production facility is sold after
operations at the facility had ceased, any money remaining in the fund for the former
producer may be released to the purchaser of the facility on the terms otherwise applicable
to the former producer under this section. If a producer fails to provide matching funds
for a proposed expenditure within six months after the commissioner approves release
of the funds, the funds are available for release to another producer in proportion to the
distribution provided and under the conditions of this section. Any portion of the fund
which is not released by the commissioner within one year of its deposit in the fund shall
be divided between the taconite deleted text begin environmental protection deleted text end new text begin economic development new text end fund
created in section 298.223 and the Douglas J. Johnson economic protection trust fund
created in section 298.292 for placement in their respective special accounts. Two-thirds of
the unreleased funds shall be distributed to the taconite deleted text begin environmental protection deleted text end new text begin economic
development new text end fund and one-third to the Douglas J. Johnson economic protection trust fund.

deleted text begin (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed
under paragraph (a), may be used for a loan or grant for the cost of providing for a
value-added wood product facility located in the taconite tax relief area and in a county
that contains a city of the first class. This amount must be deducted from the distribution
under paragraph (a) for which a matching expenditure by the producer is not required. The
granting of the loan or grant is subject to approval by the board. If the money is provided
as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213,
subdivision 3. (ii) Repayments of the loan and interest, if any, must be deposited in the
taconite environment protection fund under sections 298.222 to 298.225. If a loan or
grant is not made under this paragraph by July 1, 2012, the amount that had been made
available for the loan under this paragraph must be transferred to the taconite environment
protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the
fund established under this section that exceeds ten cents per ton is available to qualifying
producers under paragraph (a) on a pro rata basis.
deleted text end

deleted text begin (c) Repayment or transfer of money to the taconite environmental protection fund
under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
Rehabilitation Board for public works projects in house legislative districts in the same
proportion as taxable tonnage of production in 2007 in each house legislative district, for
distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
do not require approval by the governor. For purposes of this paragraph, "house legislative
districts" means the legislative districts in existence on May 15, 2009.
deleted text end

Sec. 27.

Minnesota Statutes 2014, section 298.28, subdivision 4, is amended to read:

Subd. 4.

School districts.

(a) 32.15 cents per taxable ton, plus the increase provided
in paragraph (d), less the amount that would have been computed under Minnesota
Statutes 2008, section 126C.21, subdivision 4, for the current year for that district, must be
allocated to qualifying school districts to be distributed, based upon the certification of the
commissioner of revenue, under paragraphs (b), (c), and (f).

(b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which
the lands from which taconite was mined or quarried were located or within which the
concentrate was produced. The distribution must be based on the apportionment formula
prescribed in subdivision 2.

(ii) Four cents per taxable ton from each taconite facility must be distributed to
each affected school district for deposit in a fund dedicated to building maintenance
and repairs, as follows:

(1) proceeds from Keewatin Taconite or its successor are distributed to Independent
School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
districts;

(2) proceeds from the Hibbing Taconite Company or its successor are distributed to
Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
districts;

(3) proceeds from the Mittal Steel Company and Minntac or their successors are
distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;

(4) proceeds from the Northshore Mining Company or its successor are distributed
to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
or their successor districts; and

(5) proceeds from United Taconite or its successor are distributed to Independent
School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
successor districts.

Revenues that are required to be distributed to more than one district shall be
apportioned according to the number of pupil units identified in section 126C.05,
subdivision 1, enrolled in the second previous year.

(c)(i) 24.72 cents per taxable ton, less any amount distributed under paragraph (e),
shall be distributed to a group of school districts comprised of those school districts which
qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a
qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
to school district indexes as follows: for each school district, its pupil units determined
under section 126C.05 for the prior school year shall be multiplied by the ratio of the
average adjusted net tax capacity per pupil unit for school districts receiving aid under
this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
Each district shall receive that portion of the distribution which its index bears to the sum
of the indices for all school districts that receive the distributions.

(ii) Notwithstanding clause (i), each school district that receives a distribution
under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this
clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on
severed mineral values after reduction for any portion distributed to cities and towns
under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its
levy reduction under section 126C.48, subdivision 8, for the second year prior to the
year of the distribution shall receive a distribution equal to the difference; the amount
necessary to make this payment shall be derived from proportionate reductions in the
initial distribution to other school districts under clause (i). If there are insufficient tax
proceeds to make the distribution provided under this paragraph in any year, money must
be transferred from the taconite property tax relief account in subdivision 6, to the extent
of the shortfall in the distribution.

(d)(1) Any school district described in paragraph (c) where a levy increase pursuant
to section 126C.17, subdivision 9, was authorized by referendum for taxes payable in
2001, shall receive a distribution of 21.3 cents per ton. Each district shall receive $175
times the pupil units identified in section 126C.05, subdivision 1, enrolled in the second
previous year or the 1983-1984 school year, whichever is greater, less the product of 1.8
percent times the district's taxable net tax capacity in 2011.

(2) Districts qualifying under paragraph (c) must receive additional taconite aid each
year equal to 22.5 percent of the amount obtained by subtracting:

(i) 1.8 percent of the district's net tax capacity for 2011, from:

(ii) the district's weighted average daily membership for fiscal year 2012, multiplied
by the sum of:

(A) $415, plus

(B) the district's referendum revenue allowance for fiscal year 2013.

If the total amount provided by paragraph (d) is insufficient to make the payments
herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
so as not to exceed the funds available. Any amounts received by a qualifying school
district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
education aid which the district receives pursuant to section 126C.13 or the permissible
levies of the district. Any amount remaining after the payments provided in this paragraph
shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
deposit the same in the taconite deleted text begin environmental protection deleted text end new text begin economic development new text end fund and
the Douglas J. Johnson economic protection trust fund as provided in subdivision 11.

Each district receiving money according to this paragraph shall reserve the lesser of
the amount received under this paragraph or $25 times the number of pupil units served in
the district. It may use the money for early childhood programs.

(e) There shall be distributed to any school district the amount which the school
district was entitled to receive under section 298.32 in 1975.

(f) Four cents per taxable ton must be distributed to qualifying school districts
according to the distribution specified in paragraph (b), clause (ii), and 11 cents per taxable
ton must be distributed according to the distribution specified in paragraph (c). These
amounts are not subject to sections 126C.21, subdivision 4, and 126C.48, subdivision 8.

Sec. 28.

Minnesota Statutes 2014, section 298.28, subdivision 7, is amended to read:

Subd. 7.

Iron Range Resources and Rehabilitation Board.

For the 1998
distribution, 6.5 cents per taxable ton shall be paid to the Iron Range Resources and
Rehabilitation Board for the purposes of section 298.22. That amount shall be increased
for distribution years 1999 through 2014 and for distribution in 2018 and subsequent
years in the same proportion as the increase in the implicit price deflator as provided in
section 298.24, subdivision 1. The amount distributed pursuant to this subdivision shall be
expended within or for the benefit of the deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources
and Rehabilitation service area new text end defined in section 273.1341. No part of the fund provided
in this subdivision may be used to provide loans for the operation of private business
unless the loan is approved by the governor.

Sec. 29.

Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:

Subd. 7a.

Iron Range school consolidation and cooperatively operated school
account.

The following amounts must be allocated to the Iron Range Resources and
Rehabilitation Board to be deposited in the Iron Range school consolidation and
cooperatively operated school account that is hereby created:

(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per
taxable ton of the tax imposed under section 298.24;

(2) the amount as determined under section 298.17, paragraph (b), clause (3);

(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J.
Johnson economic protection trust fund;

(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the
increased tax proceeds attributable to the increase in the implicit price deflator as provided
in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining
one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and

(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the
increased tax proceeds attributable to the increase in the implicit price deflator as provided
in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the
remaining one-third to be distributed to the Douglas J. Johnson economic protection
trust fund; and

(4) any other amount as provided by law.

Expenditures from this account shall be made only to provide disbursements to
assist school districts with the payment of bonds that were issued for qualified school
projects, or for any other school disbursement as approved by the Iron Range Resources
and Rehabilitation Board. For purposes of this section, "qualified school projects"
means school projects within the deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources and
Rehabilitation service area new text end as defined in section 273.1341, that were (1) approved, by
referendum, after April 3, 2006; and (2) approved by the commissioner of education
pursuant to section 123B.71.

Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to
offset any reduction in debt service equalization aid that the school district qualifies for in
that year, under section 123B.53, subdivision 6, compared with the amount the school
district qualified for in fiscal year 2018.

No expenditure under this section shall be made unless approved by seven members
of the Iron Range Resources and Rehabilitation Board.

Sec. 30.

Minnesota Statutes 2014, section 298.28, subdivision 9a, is amended to read:

Subd. 9a.

deleted text begin Taconite economic development deleted text end new text begin Mining reinvestment new text end fund.

(a)
25.1 cents per ton for distributions in 2002 and thereafter must be paid to the deleted text begin taconite
economic development deleted text end new text begin mining reinvestment new text end fund. No distribution shall be made under
this paragraph in 2004 or any subsequent year in which total industry production falls
below 30 million tons. Distribution shall only be made to a taconite producer's fund under
section 298.227 if the producer timely pays its tax under section 298.24 by the dates
provided under section 298.27, or pursuant to the due dates provided by an administrative
agreement with the commissioner.

(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate
sold in the form of pellet chips and fines not exceeding 5/16 inch in size and not including
crushed pellets shall be paid to the deleted text begin taconite economic development deleted text end new text begin mining reinvestment new text end
fund. The amount paid shall not exceed $700,000 annually for all companies. If the initial
amount to be paid to the fund exceeds this amount, each company's payment shall be
prorated so the total does not exceed $700,000.

Sec. 31.

Minnesota Statutes 2014, section 298.28, subdivision 9b, is amended to read:

Subd. 9b.

Taconite environmental fund.

Five cents per ton must be paid to the
taconite deleted text begin environmental deleted text end new text begin economic development new text end fund for use under section deleted text begin 298.2961,
subdivision 4 deleted text end new text begin 298.223 new text end .

Sec. 32.

Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:

Subd. 9d.

Iron Range higher education account.

Five cents per taxable ton must
be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an
Iron Range higher education account that is hereby created, to be used for higher education
programs conducted at educational institutions in the deleted text begin taconite assistance area deleted text end new text begin Iron Range
Resources and Rehabilitation service area new text end defined in section 273.1341. The Iron Range
Higher Education committee under section 298.2214, and the Iron Range Resources and
Rehabilitation Board must approve all expenditures from the account.

Sec. 33.

Minnesota Statutes 2014, section 298.28, subdivision 11, is amended to read:

Subd. 11.

Remainder.

(a) The proceeds of the tax imposed by section 298.24 which
remain after the distributions and payments in subdivisions 2 to 10a, as certified by the
commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with
interest earned on all money distributed under this section prior to distribution, shall
be divided between the taconite deleted text begin environmental protection deleted text end new text begin economic development new text end fund
created in section 298.223 and the Douglas J. Johnson economic protection trust fund
created in section 298.292 as follows: Two-thirds to the taconite deleted text begin environmental protection deleted text end new text begin
economic development new text end fund and one-third to the Douglas J. Johnson economic protection
trust fund. The proceeds shall be placed in the respective special accounts.

(b) There shall be distributed to each city, town, and county the amount that it
received under section 294.26 in calendar year 1977; provided, however, that the amount
distributed in 1981 to the unorganized territory number 2 of Lake County and the town
of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be
distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake
County and the towns of Beaver Bay and Stony River based on the miles of track of Erie
Mining Company in each taxing district.

(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board
the amounts it received in 1977 under section 298.22. The amount distributed under this
paragraph shall be expended within or for the benefit of the deleted text begin taconite assistance area deleted text end new text begin Iron
Range Resources and Rehabilitation service area new text end defined in section 273.1341.

(d) There shall be distributed to each school district 62 percent of the amount that it
received under section 294.26 in calendar year 1977.

Sec. 34.

Minnesota Statutes 2014, section 298.28, subdivision 15, is amended to read:

Subd. 15.

Distribution of delayed payments.

Notwithstanding any other provision
of this section or any other law, if payment of taxes collected under section 298.24 is
delayed past the due date because the taxpayer is a debtor in a pending bankruptcy
proceeding, the amount paid shall be distributed as follows when received:

(1) 50 percent to St. Louis County acting as the counties' fiscal agent, to be
distributed as provided in sections 273.134 to 273.136;

(2) 25 percent to the Douglas J. Johnson economic protection trust fund; and

(3) 25 percent to the taconite deleted text begin environmental protection deleted text end new text begin economic development new text end fund.

Sec. 35.

Minnesota Statutes 2014, section 298.282, subdivision 1, is amended to read:

Subdivision 1.

Distribution of taconite municipal aid account.

The amount
deposited with the county as provided in section 298.28, subdivision 3, must be distributed
as provided by this section among: (1) the municipalities comprising a deleted text begin taconite assistance
area deleted text end new text begin Iron Range Resources and Rehabilitation service area new text end under section 273.1341; (2)
a township that contains a state park consisting primarily of an underground iron ore
mine; and (3) a city located within five miles of that state park, each being referred to in
this section as a qualifying municipality.

Sec. 36.

Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read:

Subd. 2.

Use of money.

Money in the Douglas J. Johnson economic protection trust
fund may be used for the following purposes:

(1) to provide loans, loan guarantees, interest buy-downs and other forms of
participation with private sources of financing, but a loan to a private enterprise shall be
for a principal amount not to exceed one-half of the cost of the project for which financing
is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
lesser of eight percent or an interest rate three percentage points less than a full faith
and credit obligation of the United States government of comparable maturity, at the
time that the loan is approved;

(2) to fund reserve accounts established to secure the payment when due of the
principal of and interest on bonds issued pursuant to section 298.2211;

deleted text begin (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
or retrofitting heating facilities in connection with district heating systems or systems
utilizing alternative energy sources;
deleted text end

deleted text begin (4) deleted text end new text begin (3) new text end to invest in a venture capital fund or enterprise that will provide capital
to other entities that are engaging in, or that will engage in, projects or programs that
have the purposes set forth in subdivision 1 deleted text begin . No investments may be made in a venture
capital fund or enterprise unless at least two other unrelated investors make investments
of at least $500,000 in the venture capital fund or enterprise, and the investment by the
Douglas J. Johnson economic protection trust fund may not exceed the amount of the
largest investment by an unrelated investor in the venture capital fund or enterprise. For
purposes of this subdivision, an "unrelated investor" is a person or entity that is not related
to the entity in which the investment is made or to any individual who owns more than 40
percent of the value of the entity, in any of the following relationships: spouse, parent,
child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
the value of all interests in it. For purposes of determining the limitations under this
clause, the amount of investments made by an investor other than the Douglas J. Johnson
economic protection trust fund is the sum of all investments made in the venture capital
fund or enterprise during the period beginning one year before the date of the investment
by the Douglas J. Johnson economic protection trust fund deleted text end ; and

deleted text begin (5) deleted text end new text begin (4) new text end to purchase forest land in the deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources
and Rehabilitation service area new text end defined in section 273.1341 to be held and managed as
a public trust for the benefit of the area for the purposes authorized in section 298.22,
subdivision 5a. Property purchased under this section may be sold by the commissioner
upon approval by the board. The net proceeds must be deposited in the trust fund for the
purposes and uses of this section.

Money from the trust fund shall be expended only in or for the benefit of the deleted text begin taconite
assistance area deleted text end new text begin Iron Range Resources and Rehabilitation service area new text end defined in section
273.1341.

Sec. 37.

Minnesota Statutes 2014, section 298.293, is amended to read:

298.293 EXPENDING FUNDS.

The funds provided by section 298.28, subdivision 11, relating to the Douglas J.
Johnson economic protection trust fund, deleted text begin except money expended pursuant to Laws 1982,
Second Special Session, chapter 2, sections 8 to 14, shall be expended only in an amount
that does not exceed the sum of the net interest, dividends, and earnings arising from
the investment of the trust for the preceding 12 calendar months from the date of the
authorization plus, for fiscal year 1983, $10,000,000 from the corpus of the fund. The
funds deleted text end may be spent only in deleted text begin or for the benefit of deleted text end the deleted text begin taconite assistance area deleted text end new text begin Iron Range
Resources and Rehabilitation service area new text end as defined in section 273.1341. If during any
year the taconite property tax account under sections 273.134 to 273.136 does not contain
sufficient funds to pay the property tax relief specified in Laws 1977, chapter 423, article
X, section 4, there is appropriated from this trust fund to the relief account sufficient funds
to pay the relief specified in Laws 1977, chapter 423, article X, section 4.

Sec. 38.

Minnesota Statutes 2014, section 298.294, is amended to read:

298.294 INVESTMENT OF FUND.

(a) The trust fund established by section 298.292 shall be invested pursuant to law
by the State Board of Investment and the net interest, dividends, and other earnings arising
from the investments shall be transferred, except as provided in paragraph (b), on the first
day of each month to the trust and shall be included and become part of the trust fund.
The amounts transferred, including the interest, dividends, and other earnings earned
prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
commissioner of Iron Range resources and rehabilitation for deposit in a separate account
for expenditure for the purposes set forth in section 298.292. Amounts appropriated
pursuant to this section shall not cancel but shall remain available unless expended.

(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends,
and other earnings under paragraph (a) shall be transferred to a special account. Funds in
the special account are available for loans or grants to businesses, with priority given to
businesses with 25 or fewer employees. Funds may be used for wage subsidies for up to
52 weeks of up to $5 per hour or other activities, including, but not limited to, short-term
operating expenses and purchase of equipment and materials by businesses under financial
duress, that will create additional jobs in the deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources
and Rehabilitation service area new text end under section 273.1341. Expenditures from the special
account must be approved by the board.

(c) To qualify for a grant or loan, a business must be currently operating and have
been operating for one year immediately prior to its application for a loan or grant, and
its corporate headquarters must be located in the deleted text begin taconite assistance area deleted text end new text begin Iron Range
Resources and Rehabilitation service area new text end .

Sec. 39.

Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read:

Subd. 2.

Expenditure of funds.

(a) Before January 1, 2028, funds may be expended
on projects and for administration of the trust fund only from the net interest, earnings,
and dividends arising from the investment of the trust at any time, including net interest,
earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
available for use in fiscal year 1983, except that any amount required to be paid out of the
trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
X, section 4, and to make school bond payments and payments to recipients of taconite
production tax proceeds pursuant to section 298.225, may be taken from the corpus of
the trust.

(b) Additionally, upon recommendation by the board, up to $13,000,000 from the
corpus of the trust may be made available for use as provided in subdivision 4, and up to
$10,000,000 from the corpus of the trust may be made available for use as provided in
section 298.2961.

(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article
8, section 17, may be expended on projects. Funds may be expended for projects under
this paragraph only if the project:

(1) is for the purposes established under section 298.292, subdivision 1, clause
(1) or (2); and

(2) is approved by two-thirds of all of the members of the board.

No money made available under this paragraph or paragraph (d) can be used for
administrative or operating expenses of the Iron Range Resources and Rehabilitation Board
or expenses relating to any facilities owned or operated by the board on May 18, 2002.

(d) Upon recommendation by a unanimous vote of all members of the board,
amounts in addition to those authorized under paragraphs (a), (b), and (c) may be
expended on projects described in section 298.292, subdivision 1.

(e) Annual administrative costs, not including detailed engineering expenses for the
projects, shall not exceed five percent of the net interest, dividends, and earnings arising
from the trust in the preceding fiscal year.

(f) Principal and interest received in repayment of loans made pursuant to this
section, and earnings on other investments made under section 298.292, subdivision 2,
clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
are appropriated to the board for the purposes of sections 298.291 to 298.298.

(g) Additionally, notwithstanding section 298.293, upon the approval of the board,
money from the corpus of the trust may be expanded to purchase forest lands within the
deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources and Rehabilitation service area new text end as provided
in sections 298.22, subdivision 5a, and 298.292, subdivision 2, clause (5).

Sec. 40.

Minnesota Statutes 2014, section 298.2961, subdivision 3, is amended to read:

Subd. 3.

Redistribution.

(a) If a taconite production facility is sold after operations
at the facility had ceased, any money remaining in the taconite environmental fund for the
former producer may be released to the purchaser of the facility on the terms otherwise
applicable to the former producer under this section.

(b) Any portion of the taconite environmental fund that is not released by the
commissioner within three years of its deposit in the taconite environmental fund shall
be divided between the taconite deleted text begin environmental protection deleted text end new text begin economic development new text end fund
created in section 298.223 and the Douglas J. Johnson economic protection trust fund
created in section 298.292 for placement in their respective special accounts. Two-thirds of
the unreleased funds must be distributed to the taconite deleted text begin environmental protection deleted text end new text begin economic
development new text end fund and one-third to the Douglas J. Johnson economic protection trust fund.

Sec. 41. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 298.298, new text end new text begin is repealed.
new text end