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Minnesota Legislature

Office of the Revisor of Statutes

HF 1643

2nd Engrossment - 90th Legislature (2017 - 2018) Posted on 03/09/2017 10:58am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to Iron Range resources and rehabilitation; modifying duties of the
commissioner; creating a legislative commission; making conforming changes;
amending Minnesota Statutes 2016, sections 3.732, subdivision 1; 3.736,
subdivision 3; 15.01; 15.38, subdivision 7; 15A.0815, subdivision 3; 43A.02,
subdivision 22; 85.0146, subdivision 1; 116D.04, subdivision 1a; 116J.423,
subdivision 2; 116J.424; 116J.994, subdivisions 3, 5, 7; 216B.161, subdivision 1;
216B.1694, subdivision 1; 276A.01, subdivisions 8, 17; 276A.06, subdivision 8;
282.38, subdivisions 1, 3; 298.001, subdivision 8, by adding a subdivision; 298.018,
subdivision 1; 298.17; 298.22, subdivisions 1, 1a, 5a, 6, 10, 11, by adding
subdivisions; 298.221; 298.2211, subdivisions 3, 6; 298.2212; 298.2214,
subdivision 2; 298.223; 298.227; 298.27; 298.28, subdivisions 7, 7a, 9c, 9d, 11;
298.292, subdivision 2; 298.296; 298.2961; 298.297; 298.46, subdivisions 2, 5,
6; 466.03, subdivision 6c; 469.310, subdivision 9; 474A.02, subdivision 21; Laws
2010, chapter 389, article 5, section 7; repealing Minnesota Statutes 2016, sections
298.22, subdivision 8; 298.2213; 298.298.

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

Section 1.

Minnesota Statutes 2016, section 3.732, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

As used in this section and section 3.736 the terms defined
in this section have the meanings given them.

(1) "State" includes each of the departments, boards, agencies, commissions, courts, and
officers in the executive, legislative, and judicial branches of the state of Minnesota and
includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher
Education, the Higher Education Facilities Authority, the Health Technology Advisory
Committee, the Armory Building Commission, the Zoological Board, the new text beginDepartment of
new text end Iron Range Resources and Rehabilitation deleted text beginBoarddeleted text end, the Minnesota Historical Society, the State
Agricultural Society, the University of Minnesota, the Minnesota State Colleges and
Universities, state hospitals, and state penal institutions. It does not include a city, town,
county, school district, or other local governmental body corporate and politic.

(2) "Employee of the state" means all present or former officers, members, directors, or
employees of the state, members of the Minnesota National Guard, members of a bomb
disposal unit approved by the commissioner of public safety and employed by a municipality
defined in section 466.01 when engaged in the disposal or neutralization of bombs or other
similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the
municipality but within the state, or persons acting on behalf of the state in an official
capacity, temporarily or permanently, with or without compensation. It does not include
either an independent contractor except, for purposes of this section and section 3.736 only,
a guardian ad litem acting under court appointment, or members of the Minnesota National
Guard while engaged in training or duty under United States Code, title 10, or title 32,
section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding
sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee
of the state" includes a district public defender or assistant district public defender in the
Second or Fourth Judicial District, a member of the Health Technology Advisory Committee,
and any officer, agent, or employee of the state of Wisconsin performing work for the state
of Minnesota pursuant to a joint state initiative.

(3) "Scope of office or employment" means that the employee was acting on behalf of
the state in the performance of duties or tasks lawfully assigned by competent authority.

(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

Sec. 2.

Minnesota Statutes 2016, section 3.736, subdivision 3, is amended to read:


Subd. 3.

Exclusions.

Without intent to preclude the courts from finding additional cases
where the state and its employees should not, in equity and good conscience, pay
compensation for personal injuries or property losses, the legislature declares that the state
and its employees are not liable for the following losses:

(a) a loss caused by an act or omission of a state employee exercising due care in the
execution of a valid or invalid statute or rule;

(b) a loss caused by the performance or failure to perform a discretionary duty, whether
or not the discretion is abused;

(c) a loss in connection with the assessment and collection of taxes;

(d) a loss caused by snow or ice conditions on a highway or public sidewalk that does
not abut a publicly owned building or a publicly owned parking lot, except when the condition
is affirmatively caused by the negligent acts of a state employee;

(e) a loss caused by wild animals in their natural state, except as provided in section
3.7371;

(f) a loss other than injury to or loss of property or personal injury or death;

(g) a loss caused by the condition of unimproved real property owned by the state, which
means land that the state has not improved, state land that contains idled or abandoned mine
pits or shafts, and appurtenances, fixtures, and attachments to land that the state has neither
affixed nor improved;

(h) a loss involving or arising out of the use or operation of a recreational motor vehicle,
as defined in section 84.90, subdivision 1, within the right-of-way of a trunk highway, as
defined in section 160.02, except that the state is liable for conduct that would entitle a
trespasser to damages against a private person;

(i) a loss incurred by a user arising from the construction, operation, or maintenance of
the outdoor recreation system, as defined in section 86A.04, or for a loss arising from the
construction, operation, maintenance, or administration of grants-in-aid trails as defined in
section 85.018, or for a loss arising from the construction, operation, or maintenance of a
water access site created by the new text beginDepartment of new text endIron Range Resources and Rehabilitation
deleted text begin Boarddeleted text end, except that the state is liable for conduct that would entitle a trespasser to damages
against a private person. For the purposes of this clause, a water access site, as defined in
section 86A.04 or created by the new text begincommissioner of new text endIron Range resources and rehabilitation
deleted text begin Boarddeleted text end, that provides access to an idled, water filled mine pit, also includes the entire water
filled area of the pit and, further, includes losses caused by the caving or slumping of the
mine pit walls;

(j) a loss of benefits or compensation due under a program of public assistance or public
welfare, except if state compensation for loss is expressly required by federal law in order
for the state to receive federal grants-in-aid;

(k) a loss based on the failure of a person to meet the standards needed for a license,
permit, or other authorization issued by the state or its agents;

(l) a loss based on the usual care and treatment, or lack of care and treatment, of a person
at a state hospital or state corrections facility where reasonable use of available appropriations
has been made to provide care;

(m) loss, damage, or destruction of property of a patient or inmate of a state institution
except as provided under section 3.7381;

(n) a loss for which recovery is prohibited by section 169A.48, subdivision 2;

(o) a loss caused by an aeration, bubbler, water circulation, or similar system used to
increase dissolved oxygen or maintain open water on the ice of public waters, that is operated
under a permit issued by the commissioner of natural resources;

(p) a loss incurred by a visitor to the Minnesota Zoological Garden, except that the state
is liable for conduct that would entitle a trespasser to damages against a private person;

(q) a loss arising out of a person's use of a logging road on public land that is maintained
exclusively to provide access to timber on that land by harvesters of the timber, and is not
signed or otherwise held out to the public as a public highway; and

(r) a loss incurred by a user of property owned, leased, or otherwise controlled by the
Minnesota National Guard or the Department of Military Affairs, except that the state is
liable for conduct that would entitle a trespasser to damages against a private person.

The state will not pay punitive damages.

Sec. 3.

Minnesota Statutes 2016, section 15.01, is amended to read:


15.01 DEPARTMENTS OF THE STATE.

The following agencies are designated as the departments of the state government: the
Department of Administration; the Department of Agriculture; the Department of Commerce;
the Department of Corrections; the Department of Education; the Department of Employment
and Economic Development; the Department of Health; the Department of Human Rights;new text begin
the Department of Iron Range Resources and Rehabilitation;
new text end the Department of Labor and
Industry; the Department of Management and Budget; the Department of Military Affairs;
the Department of Natural Resources; the Department of Public Safety; the Department of
Human Services; the Department of Revenue; the Department of Transportation; the
Department of Veterans Affairs; and their successor departments.

Sec. 4.

Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:


Subd. 7.

new text beginDepartment of new text endIron Range Resources and Rehabilitation deleted text beginBoarddeleted text end.

new text beginAfter
seeking a recommendation from the Legislative Commission on Iron Range Resources and
Rehabilitation,
new text endthe new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end may
purchase insurance deleted text beginit considersdeleted text end new text beginthe commissioner deems new text endnecessary and appropriate to insure
facilities operated by the deleted text beginboarddeleted text endnew text begin commissionernew text end.

Sec. 5.

Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read:


Subd. 3.

Group II salary limits.

The salary for a position listed in this subdivision shall
not exceed 120 percent of the salary of the governor. This limit must be adjusted annually
on January 1. The new limit must equal the limit for the prior year increased by the percentage
increase, if any, in the Consumer Price Index for all urban consumers from October of the
second prior year to October of the immediately prior year. The commissioner of management
and budget must publish the limit on the department's Web site. This subdivision applies
to the following positions:

Executive director of Gambling Control Board;

Commissionerdeleted text begin,deleted text endnew text begin ofnew text end Iron Range resources and rehabilitation deleted text beginBoarddeleted text end;

Commissioner, Bureau of Mediation Services;

Ombudsman for Mental Health and Developmental Disabilities;

Chair, Metropolitan Council;

School trust lands director;

Executive director of pari-mutuel racing; and

Commissioner, Public Utilities Commission.

Sec. 6.

Minnesota Statutes 2016, section 43A.02, subdivision 22, is amended to read:


Subd. 22.

Executive branch.

"Executive branch" means heads of all agencies of state
government, elective or appointive, established by statute or Constitution and all employees
of those agency heads who have within their particular field of responsibility statewide
jurisdiction and who are not within the legislative or judicial branches of government. The
executive branch also includes employees of the new text beginDepartment of new text endIron Range Resources and
Rehabilitation deleted text beginBoarddeleted text end. The executive branch does not include agencies with jurisdiction in
specifically defined geographical areas, such as regions, counties, cities, towns,
municipalities, or school districts, the University of Minnesota, the Public Employees
Retirement Association, the Minnesota State Retirement System, the Teachers Retirement
Association, the Minnesota Historical Society, and all of their employees, and any other
entity which is incorporated, even though it receives state funds.

Sec. 7.

Minnesota Statutes 2016, section 85.0146, subdivision 1, is amended to read:


Subdivision 1.

Advisory council created.

The Cuyuna Country State Recreation Area
Citizens Advisory Council is established. Membership on the advisory council shall include:

(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers Board;

(2) a representative of the Croft Mine Historical Park Joint Powers Board;

(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has worked
as a miner in the local area;

(4) a representative of the Crow Wing County Board;

(5) an elected state official;

(6) a representative of the Grand Rapids regional office of the Department of Natural
Resources;

(7) a designee of the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end;

(8) a designee of the local business community selected by the area chambers of
commerce;

(9) a designee of the local environmental community selected by the Crow Wing County
District 5 commissioner;

(10) a designee of a local education organization selected by the Crosby-Ironton School
Board;

(11) a designee of one of the recreation area user groups selected by the Cuyuna Range
Chamber of Commerce; and

(12) a member of the Cuyuna Country Heritage Preservation Society.

Sec. 8.

Minnesota Statutes 2016, section 116D.04, subdivision 1a, is amended to read:


Subd. 1a.

Definitions.

For the purposes of this chapter, the following terms have the
meanings given to them in this subdivision.

(a) "Natural resources" has the meaning given it in section 116B.02, subdivision 4.

(b) "Pollution, impairment or destruction" has the meaning given it in section 116B.02,
subdivision 5
.

(c) "Environmental assessment worksheet" means a brief document which is designed
to set out the basic facts necessary to determine whether an environmental impact statement
is required for a proposed action.

(d) "Governmental action" means activities, including projects wholly or partially
conducted, permitted, assisted, financed, regulated, or approved by units of government
including the federal government.

(e) "Governmental unit" means any state agency and any general or special purpose unit
of government in the state including, but not limited to, watershed districts organized under
chapter 103D, counties, towns, cities, port authorities, housing authorities, and economic
development authorities established under sections 469.090 to 469.108, but not including
courts, school districts, new text beginthe Department of new text endIron Range Resources and Rehabilitation, and
regional development commissions other than the Metropolitan Council.

Sec. 9.

Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:


Subd. 2.

Use of fund.

The commissioner shall use money in the fund to make loans or
equity investments in mineral, steel, or any other industry processing, production,
manufacturing, or technology project that would enhance the economic diversification and
that is located within the taconite deleted text beginreliefdeleted text end tax new text beginrelief new text endarea as defined under section 273.134.
The commissioner must, prior to making any loans or equity investments and after
consultation with industry and public officials, develop a strategy for making loans and
equity investments that assists the taconite relief area in retaining and enhancing its economic
competitiveness. Money in the fund may also be used to pay for the costs of carrying out
the commissioner's due diligence duties under this section.

Sec. 10.

Minnesota Statutes 2016, section 116J.424, is amended to read:


116J.424 IRON RANGE RESOURCES AND REHABILITATION deleted text beginBOARDdeleted text end
CONTRIBUTION.

The commissioner of deleted text beginthedeleted text end Iron Range resources and rehabilitation deleted text beginBoard with approval
by the board
deleted text end,new text begin after consultation with the Legislative Commission on Iron Range Resources
and Rehabilitation and complying with the requirements for expenditures under section
298.22,
new text end may provide an equal match for any loan or equity investment made for a project
located in the tax relief area defined in section 273.134, paragraph (b), by the Minnesota
21st century fund created by section 116J.423. The match may be in the form of a loan or
equity investment, notwithstanding whether the fund makes a loan or equity investment.
The state shall not acquire an equity interest because of an equity investment or loan by the
deleted text begin board and the board at its sole discretion shalldeleted text endnew text begin commissioner of Iron Range resources and
rehabilitation and the commissioner, after consultation with the commission, shall have sole
discretion to
new text end decide what interest deleted text beginitdeleted text end new text beginthe fund new text endacquires in a project. The commissioner of
employment and economic development may require a commitment from the deleted text beginboarddeleted text endnew text begin
commissioner of Iron Range resources and rehabilitation
new text end to make the match prior to
disbursing money from the fund.

Sec. 11.

Minnesota Statutes 2016, section 116J.994, subdivision 3, is amended to read:


Subd. 3.

Subsidy agreement.

(a) A recipient must enter into a subsidy agreement with
the grantor of the subsidy that includes:

(1) a description of the subsidy, including the amount and type of subsidy, and type of
district if the subsidy is tax increment financing;

(2) a statement of the public purposes for the subsidy;

(3) measurable, specific, and tangible goals for the subsidy;

(4) a description of the financial obligation of the recipient if the goals are not met;

(5) a statement of why the subsidy is needed;

(6) a commitment to continue operations in the jurisdiction where the subsidy is used
for at least five years after the benefit date;

(7) the name and address of the parent corporation of the recipient, if any; and

(8) a list of all financial assistance by all grantors for the project.

(b) Business subsidies in the form of grants must be structured as forgivable loans. For
other types of business subsidies, the agreement must state the fair market value of the
subsidy to the recipient, including the value of conveying property at less than a fair market
price, or other in-kind benefits to the recipient.

(c) If a business subsidy benefits more than one recipient, the grantor must assign a
proportion of the business subsidy to each recipient that signs a subsidy agreement. The
proportion assessed to each recipient must reflect a reasonable estimate of the recipient's
share of the total benefits of the project.

(d) The state or local government agency and the recipient must both sign the subsidy
agreement and, if the grantor is a local government agency, the agreement must be approved
by the local elected governing body, except for the St. Paul Port Authority and a seaway
port authority.

(e) Notwithstanding the provision in paragraph (a), clause (6), a recipient may be
authorized to move from the jurisdiction where the subsidy is used within the five-year
period after the benefit date if, after a public hearing, the grantor approves the recipient's
request to move. For the purpose of this paragraph, if the grantor is a state government
agency other than the new text beginDepartment of new text endIron Range Resources and Rehabilitation deleted text beginBoarddeleted text end,
"jurisdiction" means a city or township.

Sec. 12.

Minnesota Statutes 2016, section 116J.994, subdivision 5, is amended to read:


Subd. 5.

Public notice and hearing.

(a) Before granting a business subsidy that exceeds
$500,000 for a state government grantor and $150,000 for a local government grantor, the
grantor must provide public notice and a hearing on the subsidy. A public hearing and notice
under this subdivision is not required if a hearing and notice on the subsidy is otherwise
required by law.

(b) Public notice of a proposed business subsidy under this subdivision by a state
government grantor, other than the new text begincommissioner of new text endIron Range resources and rehabilitation
deleted text begin Boarddeleted text end, must be published in the State Register. Public notice of a proposed business subsidy
under this subdivision by a local government grantor or the new text begincommissioner of new text endIron Range
resources and rehabilitation deleted text beginBoarddeleted text end must be published in a local newspaper of general
circulation. The public notice must identify the location at which information about the
business subsidy, including a summary of the terms of the subsidy, is available. Published
notice should be sufficiently conspicuous in size and placement to distinguish the notice
from the surrounding text. The grantor must make the information available in printed paper
copies and, if possible, on the Internet. The government agency must provide at least a
ten-day notice for the public hearing.

(c) The public notice must include the date, time, and place of the hearing.

(d) The public hearing by a state government grantor other than the new text begincommissioner of
new text end Iron Range resources and rehabilitation deleted text beginBoarddeleted text end must be held in St. Paul.

(e) If more than one nonstate grantor provides a business subsidy to the same recipient,
the nonstate grantors may designate one nonstate grantor to hold a single public hearing
regarding the business subsidies provided by all nonstate grantors. For the purposes of this
paragraph, "nonstate grantor" includes the new text begincommissioner of new text endIron Range resources and
rehabilitation deleted text beginBoarddeleted text end.

(f) The public notice of any public meeting about a business subsidy agreement, including
those required by this subdivision and by subdivision 4, must include notice that a person
with residence in or the owner of taxable property in the granting jurisdiction may file a
written complaint with the grantor if the grantor fails to comply with sections 116J.993 to
116J.995, and that no action may be filed against the grantor for the failure to comply unless
a written complaint is filed.

Sec. 13.

Minnesota Statutes 2016, section 116J.994, subdivision 7, is amended to read:


Subd. 7.

Reports by recipients to grantors.

(a) A business subsidy grantor must monitor
the progress by the recipient in achieving agreement goals.

(b) A recipient must provide information regarding goals and results for two years after
the benefit date or until the goals are met, whichever is later. If the goals are not met, the
recipient must continue to provide information on the subsidy until the subsidy is repaid.
The information must be filed on forms developed by the commissioner in cooperation with
representatives of local government. Copies of the completed forms must be sent to the
local government agency that provided the subsidy or to the commissioner if the grantor is
a state agency. If the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end is the
grantor, the copies must be sent to the board. The report must include:

(1) the type, public purpose, and amount of subsidies and type of district, if the subsidy
is tax increment financing;

(2) the hourly wage of each job created with separate bands of wages;

(3) the sum of the hourly wages and cost of health insurance provided by the employer
with separate bands of wages;

(4) the date the job and wage goals will be reached;

(5) a statement of goals identified in the subsidy agreement and an update on achievement
of those goals;

(6) the location of the recipient prior to receiving the business subsidy;

(7) the number of employees who ceased to be employed by the recipient when the
recipient relocated to become eligible for the business subsidy;

(8) why the recipient did not complete the project outlined in the subsidy agreement at
their previous location, if the recipient was previously located at another site in Minnesota;

(9) the name and address of the parent corporation of the recipient, if any;

(10) a list of all financial assistance by all grantors for the project; and

(11) other information the commissioner may request.

A report must be filed no later than March 1 of each year for the previous year. The local
agency and the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end must forward
copies of the reports received by recipients to the commissioner by April 1.

(c) Financial assistance that is excluded from the definition of "business subsidy" by
section 116J.993, subdivision 3, clauses (4), (5), (8), and (16), is subject to the reporting
requirements of this subdivision, except that the report of the recipient must include instead:

(1) the type, public purpose, and amount of the financial assistance, and type of district
if the assistance is tax increment financing;

(2) progress towards meeting goals stated in the assistance agreement and the public
purpose of the assistance;

(3) if the agreement includes job creation, the hourly wage of each job created with
separate bands of wages;

(4) if the agreement includes job creation, the sum of the hourly wages and cost of health
insurance provided by the employer with separate bands of wages;

(5) the location of the recipient prior to receiving the assistance; and

(6) other information the grantor requests.

(d) If the recipient does not submit its report, the local government agency must mail
the recipient a warning within one week of the required filing date. If, after 14 days of the
postmarked date of the warning, the recipient fails to provide a report, the recipient must
pay to the grantor a penalty of $100 for each subsequent day until the report is filed. The
maximum penalty shall not exceed $1,000.

Sec. 14.

Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given them in this subdivision.

(b) "Area development rate" means a rate schedule established by a utility that provides
customers within an area development zone service under a base utility rate schedule, except
that charges may be reduced from the base rate as agreed upon by the utility and the customer
consistent with this section.

(c) "Area development zone" means a contiguous or noncontiguous area designated by
an authority or municipality for development or redevelopment and within which one of
the following conditions exists:

(1) obsolete buildings not suitable for improvement or conversion or other identified
hazards to the health, safety, and general well-being of the community;

(2) buildings in need of substantial rehabilitation or in substandard condition; or

(3) low values and damaged investments.

(d) "Authority" means a rural development financing authority established under sections
469.142 to 469.151; a housing and redevelopment authority established under sections
469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an
economic development authority established under sections 469.090 to 469.108; a
redevelopment agency as defined in sections 469.152 to 469.165; thenew text begin commissioner ofnew text end Iron
Range resources and rehabilitation deleted text beginBoarddeleted text end established under section 298.22; a municipality
that is administering a development district created under sections 469.124 to 469.133 or
any special law; a municipality that undertakes a project under sections 469.152 to 469.165,
except a town located outside the metropolitan area as defined in section 473.121, subdivision
2
, or with a population of 5,000 persons or less; or a municipality that exercises the powers
of a port authority under any general or special law.

(e) "Municipality" means a city, however organized, and, with respect to a project
undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008,
also includes any county.

Sec. 15.

Minnesota Statutes 2016, section 216B.1694, subdivision 1, is amended to read:


Subdivision 1.

Definition.

For the purposes of this section, the term "innovative energy
project" means a proposed energy-generation facility or group of facilities which may be
located on up to three sites:

(1) that makes use of an innovative generation technology utilizing coal as a primary
fuel in a highly efficient combined-cycle configuration with significantly reduced sulfur
dioxide, nitrogen oxide, particulate, and mercury emissions from those of traditional
technologies;

(2) that the project developer or owner certifies is a project capable of offering a long-term
supply contract at a hedged, predictable cost; and

(3) that is designated by the commissioner of deleted text beginthedeleted text end Iron Range resources and rehabilitation
deleted text begin Boarddeleted text end as a project that is located in the taconite tax relief area on a site that has substantial
real property with adequate infrastructure to support new or expanded development and
that has received prior financial and other support from the board.

Sec. 16.

Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:


Subd. 8.

Municipality.

"Municipality" means a city, town, or township located in whole
or part within the area. If a municipality is located partly within and partly without the area,
the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to
taxation or taxing jurisdiction within the municipality are to the property or portion thereof
that is located in that portion of the municipality within the area, except that the fiscal
capacity of the municipality must be computed upon the basis of the valuation and population
of the entire municipality. A municipality shall be excluded from the area if its municipal
comprehensive zoning and planning policies conscientiously exclude most
commercial-industrial development, for reasons other than preserving an agricultural use.
The new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end and the commissioner
of revenue shall jointly make this determination annually and shall notify those municipalities
that are ineligible to participate in the tax base sharing program provided in this chapter for
the following year.new text begin Before making the determination, the commissioner of Iron Range
resources and rehabilitation must consult the Legislative Commission on Iron Range
Resources and Rehabilitation.
new text end

Sec. 17.

Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:


Subd. 17.

School fund allocation.

(a) "School fund allocation" means an amount up to
25 percent of the areawide levy certified by the new text begincommissioner of new text endIron Range resources and
rehabilitation deleted text beginBoarddeleted text endnew text begin, after consultation with the Legislative Commission on Iron Range
Resources and Rehabilitation,
new text end to be used for the purposes of the Iron Range school
consolidation and cooperatively operated school account under section 298.28, subdivision
7a
.

(b) The allocation under paragraph (a) shall only be made after the new text begincommissioner of
new text end Iron Range resources and rehabilitation deleted text beginBoarddeleted text endnew text begin, after consultation with the Legislative
Commission on Iron Range Resources and Rehabilitation,
new text end has certified by June 30 that the
Iron Range school consolidation and cooperatively operated account has insufficient funds
to make payments as authorized under section 298.28, subdivision 7a.

Sec. 18.

Minnesota Statutes 2016, section 276A.06, subdivision 8, is amended to read:


Subd. 8.

Certification of values; payment.

The administrative auditor shall determine
for each county the difference between the total levy on distribution value pursuant to
subdivision 3, clause (1), including the school fund allocation within the county and the
total tax on contribution value pursuant to subdivision 7, within the county. On or before
May 16 of each year, the administrative auditor shall certify the differences so determined
and the county's portion of the school fund allocation to each county auditor. In addition,
the administrative auditor shall certify to those county auditors for whose county the total
tax on contribution value exceeds the total levy on distribution value the settlement the
county is to make to the other counties of the excess of the total tax on contribution value
over the total levy on distribution value in the county. On or before June 15 and November
15 of each year, each county treasurer in a county having a total tax on contribution value
in excess of the total levy on distribution value shall pay one-half of the excess to the other
counties in accordance with the administrative auditor's certification. On or before June 15
and November 15 of each year, each county treasurer shall pay to the administrative auditor
that county's share of the school fund allocation. On or before December 1 of each year,
the administrative auditor shall pay the school fund allocation to the new text begincommissioner of new text endIron
Range resources and rehabilitation deleted text beginBoarddeleted text end for deposit in the Iron Range school consolidation
and cooperatively operated account.

Sec. 19.

Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:


Subdivision 1.

Development.

In any county where the county board by proper resolution
sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or
section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation
deleted text begin with the approval of the boarddeleted text endnew text begin, after consultation with the Legislative Commission on Iron
Range Resources and Rehabilitation,
new text end may upon request of the county board assist said
county in carrying out any project for the long range development of its forest resources
through matching of funds or otherwise.

Sec. 20.

Minnesota Statutes 2016, section 282.38, subdivision 3, is amended to read:


Subd. 3.

Not to affect commissioner of Iron Range resourcesnew text begin and rehabilitationnew text end.

Nothing herein shall be construed to limit or abrogate the authority of the commissioner of
Iron Range resourcesnew text begin and rehabilitationnew text end to give temporary assistance to any county in the
development of its land use program.

Sec. 21.

Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:


Subd. 8.

Commissioner.

"Commissioner" means the commissioner of revenue of the
state of Minnesotanew text begin, except that when used in sections 298.22 to 298.227 and 298.291 to
298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation
new text end.

Sec. 22.

Minnesota Statutes 2016, section 298.001, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Commission. new text end

new text begin "Commission" means the Legislative Commission on Iron
Range Resources and Rehabilitation, as established under section 298.22.
new text end

Sec. 23.

Minnesota Statutes 2016, section 298.018, subdivision 1, is amended to read:


Subdivision 1.

Within taconite assistance area.

The proceeds of the tax paid under
sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
taconite assistance area 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 new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end
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 environmental protection fund.

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

Sec. 24.

Minnesota Statutes 2016, section 298.17, is amended to read:


298.17 OCCUPATION TAXES TO BE APPORTIONED.

(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
companies, corporations, and associations, however or for whatever purpose organized,
engaged in the business of mining or producing iron ore or other ores, when collected shall
be apportioned and distributed in accordance with the Constitution of the state of Minnesota,
article X, section 3, in the manner following: 90 percent shall be deposited in the state
treasury and credited to the general fund of which four-ninths shall be used for the support
of elementary and secondary schools; and ten percent of the proceeds of the tax imposed
by this section shall be deposited in the state treasury and credited to the general fund for
the general support of the university.

(b) Of the money apportioned to the general fund by this section: (1) there is annually
appropriated and credited to the mining environmental and regulatory account in the special
revenue fund an amount equal to that which would have been generated by a 2-1/2 cent tax
imposed by section 298.24 on each taxable ton produced in the preceding calendar year.
Money in the mining environmental and regulatory account is appropriated annually to the
commissioner of natural resources to fund agency staff to work on environmental issues
and provide regulatory services for ferrous and nonferrous mining operations in this state.
Payment to the mining environmental and regulatory account shall be made by July 1
annually. The commissioner of natural resources shall execute an interagency agreement
with the Pollution Control Agency to assist with the provision of environmental regulatory
services such as monitoring and permitting required for ferrous and nonferrous mining
operations; (2) there is annually appropriated and credited to the Iron Range resources and
rehabilitation deleted text beginBoarddeleted text end account in the special revenue fund an amount equal to that which
would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable
ton produced in the preceding calendar year, to be expended for the purposes of section
298.22; and (3) there is annually appropriated and credited to the Iron Range resources and
rehabilitation deleted text beginBoarddeleted text end account in the special revenue fund for transfer to the Iron Range school
consolidation and cooperatively operated school account under section 298.28, subdivision
7a
, an amount equal to that which would have been generated by a six cent tax imposed by
section 298.24 on each taxable ton produced in the preceding calendar year. Payment to the
Iron Range resources and rehabilitation deleted text beginBoarddeleted text end account shall be made by May 15 annually.

(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) to
provide environmental development grants to local governments located within any county
in region 3 as defined in governor's executive order number 60, issued on June 12, 1970,
which does not contain a municipality qualifying pursuant to section 273.134, paragraph
(b)
, or (ii) to provide economic development loans or grants to businesses located within
any such county, provided that the county board or an advisory group appointed by the
county board to provide recommendations on economic development shall make
recommendations to thenew text begin commissioner ofnew text end Iron Range resources and rehabilitation deleted text beginBoarddeleted text end
regarding the loans. Payment to the Iron Range resources and rehabilitation deleted text beginBoarddeleted text end account
shall be made by May 15 annually.

(d) Of the money allocated to Koochiching County, one-third must be paid to the
Koochiching County Economic Development Commission.

Sec. 25.

Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginThe Office of Commissionerdeleted text endnew text begin Departmentnew text end of Iron Range Resources
and Rehabilitation.

(a) The deleted text beginOffice of the Commissionerdeleted text endnew text begin Departmentnew text end 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 of Iron Range resources and rehabilitation. 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 residentsdeleted 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) The commissioner shall annually submit a budget proposal to the Legislative
Commission on Iron Range Resources and Rehabilitation. The commission must review
and make recommendations on the commissioner's budget proposal and the governor must
approve the commissioner's budget proposal as provided in subdivisions 1b, 1c, and 11.
This paragraph applies to transfers and expenditures from the following funds or accounts:
new text end

new text begin (1) the taconite area environmental protection fund under section 298.223, including
grants under section 298.2961;
new text end

new text begin (2) the Douglas J. Johnson economic protection trust fund under sections 298.291 to
298.298, including grants under section 298.2961;
new text end

new text begin (3) the Iron Range resources and rehabilitation account in the special revenue fund;
new text end

new text begin (4) the Iron Range school consolidation and cooperatively operated school account under
section 298.28, subdivision 7a, except as provided under paragraph (f);
new text end

new text begin (5) the Minnesota 21st century fund match requirements under section 116J.424; and
new text end

new text begin (6) the Iron Range higher education account under section 298.28, subdivision 9d.
new text end

new text begin (e) Paragraph (d) does not apply to expenditures for:
new text end

new text begin (1) the commissioner's obligations under sections 298.221; 298.2211, subdivision 4;
298.225, subdivision 2; and 298.292, subdivision 2, clause (3);
new text end

new text begin (2) payments of amounts authorized under section 298.28, subdivisions 2, 3, 4, 5, 6, 7a,
clause (4), and 9a; or
new text end

new text begin (3) other expenditures required to pay bonds or binding contracts entered into prior to
the effective date of this section.
new text end

Sec. 26.

Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:


Subd. 1a.

new text beginLegislative Commission on new text endIron Range Resources and Rehabilitation
deleted text begin Boarddeleted text end.

new text begin(a) new text endThe new text beginLegislative Commission on new text endIron Range Resources and Rehabilitation deleted text beginBoarddeleted text endnew text begin
is created in the legislative branch. The commissioner shall consult the commission before
making expenditures or undertaking projects authorized under this chapter. The commission
new text end
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 a taconite assistance area 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. deleted text beginAll
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.
deleted text end 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.

deleted text begin 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.
deleted text end

new text begin (b) The most senior legislator will serve as temporary chair for the purposes of convening
the first meeting, at which members shall develop procedures to elect a chair. The chair
shall preside and convene meetings as often as necessary to conduct duties prescribed by
this chapter. The commission must meet at least quarterly to review the actions of the
commissioner.
new text end

new text begin (c) The appointed legislative member shall serve on the commission for a two-year term,
beginning January 1 of each odd-numbered year. The appointed legislative member serves
until their successor is appointed and qualified.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. The
additional state senator shall be appointed under this section no later than July 1, 2018.
new text end

Sec. 27.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 1b. new text end

new text begin Evaluation of proposed budgets and projects. new text end

new text begin (a) In evaluating budgets
proposed by the commissioner, the commission must consider factors including but not
limited to the extent to which the proposed budget:
new text end

new text begin (1) contributes to increasing the effectiveness of promoting or managing Iron Range
economic and workforce development, community development, minerals and natural
resources development, and any other issue as determined by the commission; and
new text end

new text begin (2) advances the strategic plan adopted under subdivision 1c.
new text end

new text begin (b) In evaluating projects proposed by the commissioner, the commission must consider
factors including but not limited to:
new text end

new text begin (1) whether, and the extent to which, an applicant could complete the proposed project
without funding from the commissioner;
new text end

new text begin (2) job creation or retention goals for the proposed project, including but not limited to
wages and benefits; whether the jobs created are full time, part time, temporary, or permanent;
and whether the stated job creation or retention goals in the proposal can be adequately
measured using methods established by the commissioner;
new text end

new text begin (3) how and to what extent the proposed project is expected to impact the economic
climate of the Iron Range resources and rehabilitation services area;
new text end

new text begin (4) how the proposed project would meet match requirements, if any; and
new text end

new text begin (5) whether the proposed project meets the written objectives, priorities, and policies
established by the commissioner.
new text end

Sec. 28.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 1c. new text end

new text begin Strategic plan required. new text end

new text begin The commissioner, in consultation with the
commission, shall adopt a strategic plan for making expenditures including identifying the
priority areas for funding for the next six years. The strategic plan must be reviewed every
two years. The strategic plan must have clearly stated short- and long-term goals and
strategies for expenditures, provide measurable outcomes for expenditures, and determine
areas of emphasis for funding.
new text end

Sec. 29.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 1e. new text end

new text begin Administrative and staff assistance. new text end

new text begin The Legislative Coordinating
Commission shall provide administrative and staff support to the commission. The
commissioner shall provide additional information and research assistance to the commission,
as requested by the commission.
new text end

Sec. 30.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 1f. new text end

new text begin Expenses of the commission. new text end

new text begin All expenses of the commission, including the
payment of per diems and expenses under subdivision 1a must be paid out of the amounts
appropriated by section 298.28 or otherwise made available by law to the commissioner.
new text end

Sec. 31.

Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:


Subd. 5a.

Forest trust.

The commissioner, deleted text beginupon approval by the boarddeleted text endnew text begin after consultation
with the commission
new text end, may purchase forest lands in the taconite assistance area defined deleted text beginindeleted text end
under 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 taconite assistance
area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed
and developed for recreation and economic development purposes. The commissioner, deleted text beginupon
approval by the board
deleted text endnew text begin after consultation with the commissionnew text end, may sell forest lands purchased
under this subdivision if the deleted text beginboard findsdeleted text end new text begincommissioner determines new text endthat 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 deleted text beginupon approval by
the board
deleted text endnew text begin by the commissioner, after consultation with the commissionnew text end, to purchase, manage,
administer, convey interests in, and improve the forest lands. deleted text beginWith approval by the board,deleted text endnew text begin
After consultation with the commission, the commissioner may transfer
new text end money in the Iron
Range Miners' Memorial Forest account deleted text beginmay be transferreddeleted text end 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.new text begin The commissioner's
actions under this subdivision must at all times comply with the requirements for expenditures
under subdivisions 1, 1b, 1c, and 11.
new text end

Sec. 32.

Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:


Subd. 6.

Private entity participation.

The deleted text beginboarddeleted text end new text begincommissioner, after consultation with
the commission,
new text endmay acquire an equity interest in any project for which deleted text beginitdeleted text endnew text begin the commissionernew text end
provides funding. The commissioner maynew text begin, after consultation with the commission,new text end 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 deleted text beginitdeleted text endnew text begin the commissionernew text end provides funding, including specifically, but without limitation,
a corporation within the meaning of section 317A.011, subdivision 6.new text begin The commissioner's
actions under this subdivision must at all times comply with the requirements for expenditures
under subdivisions 1, 1b, 1c, and 11.
new text end

Sec. 33.

Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:


Subd. 10.

Sale or privatization of functions.

The commissioner deleted text beginof 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 deleted text beginprior approval by the boarddeleted text endnew text begin first seeking the recommendation
of the commission
new text end.

Sec. 34.

Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:


Subd. 11.

Budgeting.

The commissioner of Iron Range resources and rehabilitation
shall annually prepare a budget for operational expenditures, programs, and projects, and
submit it to the deleted text beginIron Range Resources and Rehabilitation Boarddeleted text endnew text begin commissionnew text end. After new text beginthe
commission has been consulted, its recommendations and the commissioner's budget shall
be submitted to the governor. Once
new text endthe budget is approved by deleted text beginthe board anddeleted text end the governor,
the commissioner may spend money in accordance with the approved budget.new text begin If unanticipated
needs for funds arise outside of the annual budget process, the commissioner must consult
the commission and receive the governor's approval before spending the funds.
new text end

Sec. 35.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 13. new text end

new text begin Grants and loans; requirements. new text end

new text begin (a) Prior to awarding any grants or approving
loans from any fund or account from which the commissioner has the authority under law
to expend money, the commissioner must evaluate applications based on criteria including,
but not limited to:
new text end

new text begin (1) whether, and the extent to which, an applicant could complete a project without
funding from the commissioner;
new text end

new text begin (2) job creation or retention goals for the project, including but not limited to wages and
benefits, and whether the jobs created are full time, part time, temporary, or permanent;
new text end

new text begin (3) whether the applicant's stated job creation or retention goals can be adequately
measured using methods established by the commissioner;
new text end

new text begin (4) how and to what extent the project proposed by the applicant is expected to impact
the economic climate of the Iron Range resources and rehabilitation services area;
new text end

new text begin (5) how the applicant would meet match requirements, if any; and
new text end

new text begin (6) whether the project for which a grant or loan application has been submitted meets
the written objectives, priorities, and policies established by the commissioner.
new text end

new text begin (b) The commissioner, if appropriate, must include incentives in loan and grant award
agreements to promote and assist grant recipients in achieving the stated job creation and
retention objectives established by the commissioner.
new text end

new text begin (c) For all loans and grants awarded from funds under the commissioner's authority
pursuant to this chapter, the commissioner must:
new text end

new text begin (1) create and maintain a database for tracking loan and grant awards;
new text end

new text begin (2) create and maintain an objective mechanism for measuring job creation and retention;
new text end

new text begin (3) verify achievement of job creation and retention goals by grant and loan recipients;
new text end

new text begin (4) monitor grant and loan awards to ensure that projects comply with applicable Iron
Range resources and rehabilitation policies; and
new text end

new text begin (5) verify that grant or loan recipients have met applicable matching fund requirements.
new text end

Sec. 36.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 14. new text end

new text begin Expenditures; taconite assistance area. new text end

new text begin Expenditures subject to the
requirements of this section may be expended only within or for the benefit of the taconite
assistance area defined in section 273.1341.
new text end

Sec. 37.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:


new text begin Subd. 15. new text end

new text begin Reports to the legislature. new text end

new text begin The commissioner shall submit to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over economic development policy an annual report of expenditures
under this section.
new text end

Sec. 38.

Minnesota Statutes 2016, 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 deleted text beginBoarddeleted text end 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
of the Iron Range resources and rehabilitation deleted text beginBoarddeleted 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 deleted text beginboarddeleted text endnew text begin commissionernew text end. Nothing in this paragraph
authorizes the commissioner or a member of the deleted text beginboarddeleted text endnew text begin commissionnew text end 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 deleted text beginBoarddeleted text end account that is created
within the state enterprise fund. All funds deposited in the enterprise fund account are
appropriated to the commissioner deleted text beginto be expended, subject to approval by the boarddeleted text end,new text begin and
may only be used,
new text end 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. 39.

Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:


Subd. 3.

Project approval.

deleted text beginAll projects authorized by this section shall be submitted
by the commissioner to the Iron Range Resources and Rehabilitation Board for approval
by the board
deleted text endnew text begin To get approval of a project under this section, the commissioner must comply
with all the requirements for expenditures under section 298.22
new text end. 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 beginAny 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. 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.
deleted text end

Sec. 40.

Minnesota Statutes 2016, section 298.2211, subdivision 6, is amended to read:


Subd. 6.

Fee setting.

Fees for admission to or use of facilities operated by the
new text begin commissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end that have been established
according to prevailing market conditions and to recover operating costs need not be set by
rule.

Sec. 41.

Minnesota Statutes 2016, section 298.2212, is amended to read:


298.2212 INVESTMENT OF FUNDS.

All funds credited to the Iron Range resources and rehabilitation deleted text beginBoarddeleted text end account in the
special revenue fund for the purposes of section 298.22 must be invested pursuant to law.
The net interest and dividends from the investments are included and become part of the
funds available for purposes of section 298.22.

Sec. 42.

Minnesota Statutes 2016, section 298.2214, subdivision 2, is amended to read:


Subd. 2.

Iron Range Higher Education Committee; membership.

The members of
the committee shall consist of:

(1) one member appointed by the governor;

(2) one member appointed by the president of the University of Minnesota;

(3) four members of the new text beginLegislative Commission on new text endIron Range Resources and
Rehabilitation deleted text beginBoarddeleted text end appointed by the chair;

(4) the commissioner of Iron Range resources and rehabilitation; and

(5) the president of the Northeast Higher Education District or its successor.

Sec. 43.

Minnesota Statutes 2016, section 298.223, is amended to read:


298.223 TACONITE AREA ENVIRONMENTAL PROTECTION FUND.

Subdivision 1.

Creation; purposes.

A fund called the taconite environmental protection
fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast
Minnesota located within the taconite assistance area 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 thenew text begin commissioner ofnew text end Iron Range resources and
rehabilitation deleted text beginBoarddeleted text end 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 deleted text beginbut only if those projects are approved by the
board,
deleted text end 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;
and

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

Subd. 2.

Administration.

deleted text begin(a)deleted text end The taconite area environmental protection fund shall be
administered by the commissioner of deleted text beginthedeleted text end Iron Range resources and rehabilitation deleted text beginBoard.
The commissioner shall by September 1 of each year submit to the board a list of projects
to be funded from the taconite area environmental protection fund, with such supporting
information including description of the projects, plans, and cost estimates as may be
necessary.
deleted text endnew text begin in compliance with the requirements for expenditures under section 298.22.
new text end

deleted text begin (b) Each year no less than one-half of the amounts deposited into the taconite
environmental protection 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.
deleted text end

deleted text begin (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.
deleted text end

Subd. 3.

Appropriation.

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

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

Sec. 44.

Minnesota Statutes 2016, section 298.227, is amended to read:


298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

(a) 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
new text begin commissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end in a separate taconite
economic development 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 deleted text beginby the boarddeleted text endnew text begin under the requirements
for expenditures under section 298.22
new text end, the funds must be deposited in the Taconite
Environmental Protection Fund under sections 298.222 to 298.225. deleted text beginIf 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 taconite economic development 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.
deleted text end 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 environmental
protection 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 environmental
protection 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. 45.

Minnesota Statutes 2016, section 298.27, is amended to read:


298.27 COLLECTION AND PAYMENT OF TAX.

The taxes provided by section 298.24 shall be paid directly to each eligible county and
the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end. The commissioner of
revenue shall notify each producer of the amount to be paid each recipient prior to February
15. Every person subject to taxes imposed by section 298.24 shall file a correct report
covering the preceding year. The report must contain the information required by the
commissionernew text begin of revenuenew text end. The report shall be filed by each producer on or before February
1. A remittance equal to 50 percent of the total tax required to be paid hereunder shall be
paid on or before February 24. A remittance equal to the remaining total tax required to be
paid hereunder shall be paid on or before August 24. On or before February 25 and August
25, the county auditor shall make distribution of the payments previously received by the
county in the manner provided by section 298.28. Reports shall be made and hearings held
upon the determination of the tax in accordance with procedures established by the
commissioner of revenue. The commissioner of revenue shall have authority to make
reasonable rules as to the form and manner of filing reports necessary for the determination
of the tax hereunder, and by such rules may require the production of such information as
may be reasonably necessary or convenient for the determination and apportionment of the
tax. All the provisions of the occupation tax law with reference to the assessment and
determination of the occupation tax, including all provisions for appeals from or review of
the orders of the commissioner of revenue relative thereto, but not including provisions for
refunds, are applicable to the taxes imposed by section 298.24 except in so far as inconsistent
herewith. If any person subject to section 298.24 shall fail to make the report provided for
in this section at the time and in the manner herein provided, the commissioner of revenue
shall in such case, upon information possessed or obtained, ascertain the kind and amount
of ore mined or produced and thereon find and determine the amount of the tax due from
such person. There shall be added to the amount of tax due a penalty for failure to report
on or before February 1, which penalty shall equal ten percent of the tax imposed and be
treated as a part thereof.

If any person responsible for making a tax payment at the time and in the manner herein
provided fails to do so, there shall be imposed a penalty equal to ten percent of the amount
so due, which penalty shall be treated as part of the tax due.

In the case of any underpayment of the tax payment required herein, there may be added
and be treated as part of the tax due a penalty equal to ten percent of the amount so underpaid.

A person having a liability of $120,000 or more during a calendar year must remit all
liabilities by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The
funds transfer payment date, as defined in section 336.4A-401, must be on or before the
date the tax is due. If the date the tax is due is not a funds transfer business day, as defined
in section 336.4A-105, paragraph (a), clause (4), the payment date must be on or before the
funds transfer business day next following the date the tax is due.

Sec. 46.

Minnesota Statutes 2016, section 298.28, subdivision 7, is amended to read:


Subd. 7.

Iron Range resources and rehabilitation deleted text beginBoarddeleted text endnew text begin accountnew text end.

For the 1998
distribution, 6.5 cents per taxable ton shall be paid to the Iron Range resources and
rehabilitation deleted text beginBoarddeleted text endnew text begin accountnew text end 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 taconite assistance area defined in section
273.1341new text begin and in compliance with the requirements for expenditures under section 298.22new text end.deleted text begin
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.
deleted text end

Sec. 47.

Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:


Subd. 7a.

Iron Range school consolidation and cooperatively operated school account.

(a) The following amounts must be allocated to the Iron Range resources and rehabilitationdeleted text begin
Board
deleted text endnew text begin accountnew text end 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.

(b) 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 new text begincommissioner of new text endIron Range
resources and rehabilitation deleted text beginBoarddeleted text endnew text begin, after consultation with the commissionnew text end. For purposes
of this section, "qualified school projects" means school projects within the taconite assistance
area 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.

(c) 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.

(d) No expenditure under this section shall be made unless deleted text beginapproved by seven members
of the Iron Range Resources and Rehabilitation Board
deleted text endnew text begin the commissioner has complied with
the requirements for expenditures under section 298.22
new text end.

Sec. 48.

Minnesota Statutes 2016, section 298.28, subdivision 9c, is amended to read:


Subd. 9c.

Distribution; city of Eveleth.

0.20 cent per taxable ton must be paid to the
city of Eveleth for distribution in 2013 and thereafter, to be used for the support of the
Hockey Hall of Fame, provided that it continues to operate in that city, and provided that
the city of Eveleth certifies to the St. Louis County auditor that it has received donations
for the support of the Hockey Hall of Fame from other donors. If the Hockey Hall of Fame
ceases to operate in the city of Eveleth prior to receipt of the distribution in any year, and
the governing body of the city determines that it is unlikely to resume operation there within
a six-month period, the distribution under this subdivision shall be made to the new text begincommissioner
of
new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end.

Sec. 49.

Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:


Subd. 9d.

Iron Range higher education account.

Five cents per taxable ton must be
deleted text begin allocated to the Iron Range Resources and Rehabilitation Board to bedeleted text end 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 taconite assistance area defined in
section 273.1341. The Iron Range Higher Education committee under section 298.2214,
and the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text endnew text begin, after complying
with all the requirements for expenditures under section 298.22,
new text end must approve all
expenditures from the account.

Sec. 50.

Minnesota Statutes 2016, 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 environmental protection 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 environmental protection 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 new text beginMinnesota Statutes 1978, new text endsection 294.26new text begin,new text end 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 deleted text beginBoarddeleted text endnew text begin accountnew text end
the amounts it received in 1977 under new text beginMinnesota Statutes 1978, new text endsection 298.22. The amount
distributed under this paragraph shall be expended within or for the benefit of the taconite
assistance area defined in section 273.1341.

(d) There shall be distributed to each school district 62 percent of the amount that it
received under new text beginMinnesota Statutes 1978, new text endsection 294.26new text begin,new text end in calendar year 1977.

Sec. 51.

Minnesota Statutes 2016, 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;

(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;

(4) 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. 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; and

(5) to purchase forest land in the taconite assistance area 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 deleted text beginupon approval by the boarddeleted text endnew text begin, after consultation with the commissionnew text end. 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 taconite
assistance area defined in section 273.1341.

Sec. 52.

Minnesota Statutes 2016, section 298.296, is amended to read:


298.296 OPERATION OF FUND.

Subdivision 1.

Project approval.

The deleted text beginboard anddeleted text end commissioner deleted text beginshall by August 1 of
each year prepare a list of projects to be funded from the Douglas J. Johnson economic
protection trust with necessary supporting information including description of the projects,
plans, and cost estimates
deleted text endnew text begin must comply with the requirements for expenditures under section
298.22
new text end. deleted text beginThesedeleted text end Projects shall be consistent with the priorities established in section 298.292
and shall not be deleted text beginapproved by the board unless itdeleted text endnew text begin proposed by the commissioner unless the
commissioner
new text end finds that:

(a) the project will materially assist, directly or indirectly, the creation of additional
long-term employment opportunities;

(b) the prospective benefits of the expenditure exceed the anticipated costs; and

(c) in the case of assistance to private enterprise, the project will serve a sound business
purpose.

deleted text begin Each project must be approved by over one-half of all of the members of the board and
the commissioner of Iron Range resources and rehabilitation. The list of projects shall be
submitted to the governor, who shall, by November 15 of each year, approve or disapprove,
or return for further consideration, each project. The money for a project may be expended
only upon approval of the project by the governor. The board may submit supplemental
projects for approval at any time.
deleted text end

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, deleted text beginupon recommendation by the board,deleted text endnew text begin the commissioner, after consulting
the commission, may choose to make
new text end up to $13,000,000 from the corpus of the trust deleted text beginmay
be made
deleted text end 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. deleted text beginFundsdeleted text endnew text begin The commissionernew text end may deleted text beginbe expendeddeleted text endnew text begin expend
funds
new text end for projects under this paragraph only if deleted text beginthe projectdeleted text end:

(1) new text beginthe project new text endis for the purposes established under section 298.292, subdivision 1,
clause (1) or (2); and

(2) deleted text beginis approved by two-thirds of all of the members of the boarddeleted text endnew text begin the commissioner
complied with the requirements for expenditures under section 298.22
new text end.

No money made available under this paragraph or paragraph (d) can be used for
administrative or operating expenses of the new text beginDepartment of new text endIron Range resources and
rehabilitation deleted text beginBoarddeleted text end or expenses relating to any facilities owned or operated by the deleted text beginboarddeleted text endnew text begin
commissioner
new text end on May 18, 2002.

(d) deleted text beginUpon recommendation by a unanimous vote of all members of the board,deleted text endnew text begin The
commissioner may spend
new text end amounts in addition to those authorized under paragraphs (a), (b),
and (c) deleted text beginmay be expendeddeleted text end on projects described in section 298.292, subdivision 1new text begin, if the
commissioner complies with the requirements for expenditures under section 298.22
new text end.

(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, deleted text beginupon the approval of the boarddeleted text endnew text begin if the
commissioner complies with the requirements for expenditures under section 298.22
new text end, money
from the corpus of the trust may be expanded to purchase forest lands within the taconite
assistance area as provided in sections 298.22, subdivision 5a, and 298.292, subdivision 2,
clause (5).

Subd. 3.

Administration.

The commissioner deleted text beginand staffdeleted text end of deleted text beginthedeleted text end Iron Range resources and
rehabilitation deleted text beginBoarddeleted text end shall administer the program under which funds are expended pursuant
to sections 298.292 to 298.298.

Subd. 4.

Temporary loan authority.

(a) deleted text beginThe board may recommend thatdeleted text end new text beginIf the
commissioner complies with the requirements for expenditures under section 298.22, the
commissioner may use
new text endup to $7,500,000 from the corpus of the trust deleted text beginmay be useddeleted text end for loans,
loan guarantees, grants, or equity investments as provided in this subdivision. The money
would be available for loans for construction and equipping of facilities constituting (1) a
value added iron products plant, which may be either a new plant or a facility incorporated
into an existing plant that produces iron upgraded to a minimum of 75 percent iron content
or any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine or
minerals processing plant for any mineral subject to the net proceeds tax imposed under
section 298.015. A loan or loan guarantee under this paragraph may not exceed $5,000,000
for any facility.

(b) Additionally, deleted text beginthe board must reservedeleted text end the first $2,000,000 of the net interest, dividends,
and earnings arising from the investment of the trust after June 30, 1996, deleted text beginto be useddeleted text endnew text begin must
be reserved
new text end for grants, loans, loan guarantees, or equity investments for the purposes set
forth in paragraph (a). This amount must be reserved until it is used as described in this
subdivision.

(c) Additionally, deleted text beginthe board may recommend thatdeleted text end up to $5,500,000 from the corpus of
the trust may be used for additional grants, loans, loan guarantees, or equity investments
for the purposes set forth in paragraph (a).

(d) The deleted text beginboarddeleted text endnew text begin commissioner, after consultation with the commission,new text end may require thatdeleted text begin
it
deleted text endnew text begin the fundnew text end receive an equity percentage in any project to which it contributes under this
section.

Sec. 53.

Minnesota Statutes 2016, section 298.2961, is amended to read:


298.2961 PRODUCER GRANTS.

Subdivision 1.

Appropriation.

(a) $10,000,000 is appropriated from the Douglas J.
Johnson economic protection trust fund to a special account in the taconite area environmental
protection fund for grants to producers on a project-by-project basis as provided in this
section.

(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are
appropriated for grants to producers on a project-by-project basis as provided in this section.

Subd. 2.

Projects; approval.

(a) Projects funded must be for:

(1) environmentally unique reclamation projects; or

(2) pit or plant repairs, expansions, or modernizations other than for a value added iron
products plant.

(b) deleted text beginTo be proposed by the board, a project must be approved by the board. The money
for a project may be spent only upon approval of the project by the governor. The board
may submit supplemental projects for approval at any time
deleted text endnew text begin For all such projects, the
commissioner must comply with the requirements for expenditures under section 298.22
new text end.

(c) The deleted text beginboarddeleted text endnew text begin commissioner, after consultation with the commission,new text end may require that
deleted text begin itdeleted text endnew text begin the fundnew text end receive an equity percentage in any project to which it contributes under this
section.

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 environmental protection 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 environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund.

Subd. 4.

Grant and loan fund.

(a) A fund is established to receive distributions under
section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision.
Any grant or loan made under this subdivision must deleted text beginbe approved by the board, established
under section 298.22
deleted text endnew text begin comply with the requirements for expenditures under section 298.22new text end.

(b) All distributions received in 2009 and subsequent years are allocated for projects
under section 298.223, subdivision 1.

Sec. 54.

Minnesota Statutes 2016, section 298.297, is amended to read:


298.297 ADVISORY COMMITTEES.

Before submission of a project to the deleted text beginboarddeleted text endnew text begin commissionnew text end, the commissioner of Iron Range
resources and rehabilitation shall appoint a technical advisory committee consisting of one
or more persons who are knowledgeable in areas related to the objectives of the proposal.
Members of the committees shall be compensated as provided in section 15.059, subdivision
3
. The deleted text beginboard shall not actdeleted text endnew text begin commission shall not make recommendationsnew text end on a proposal until
it has received the evaluation and recommendations of the technical advisory committee or
until 15 days have elapsed since the proposal was transmitted to the advisory committee,
whichever occurs first.

Sec. 55.

Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:


Subd. 2.

Unmined iron ore; valuation petition.

When in the opinion of the duly
constituted authorities of a taxing district there are in existence reserves of unmined iron
ore located in such district, these authorities may petition the new text begincommissioner of new text endIron Range
resources and rehabilitation deleted text beginBoarddeleted text end for authority to petition the county assessor to verify the
existence of such reserves and to ascertain the value thereof by drilling in a manner consistent
with established engineering and geological exploration methods, in order that such taxing
district may be able to forecast in a proper manner its future economic and fiscal potentials.new text begin
The commissioner may grant the authority to petition only after consultation with the
commission.
new text end

Sec. 56.

Minnesota Statutes 2016, section 298.46, subdivision 5, is amended to read:


Subd. 5.

Payment of costs; reimbursement.

The cost of such exploration or drilling
plus any damages to the property which may be assessed by the district court shall be paid
by the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end from amounts
appropriated to deleted text beginthat boarddeleted text endnew text begin the commissionernew text end under section 298.22. The new text begincommissioner of
new text end Iron Range resources and rehabilitation deleted text beginBoarddeleted text end shall be reimbursed for one-half of the
amounts thus expended. Such reimbursement shall be made by the taxing districts in the
proportion that each such taxing district's levy on the property involved bears to the total
levy on such property. Such reimbursement shall be made to the new text begincommissioner of new text endIron
Range resources and rehabilitation deleted text beginBoarddeleted text end in the manner provided by section 298.221.

Sec. 57.

Minnesota Statutes 2016, section 298.46, subdivision 6, is amended to read:


Subd. 6.

Refusal to reimburse; reduction of other payments.

If any taxing district
refuses to pay its share of the reimbursement as provided in subdivision 5, the county auditor
is hereby authorized to reduce payments required to be made by the county to such taxing
district under other provisions of law. Thereafter the auditor shall draw a warrant, which
shall be deposited with the state treasury in accordance with section 298.221, to the credit
of the new text begincommissioner of new text endIron Range resources and rehabilitation deleted text beginBoarddeleted text end.

Sec. 58.

Minnesota Statutes 2016, section 466.03, subdivision 6c, is amended to read:


Subd. 6c.

Water access sites.

Any claim based upon the construction, operation, or
maintenance by a municipality of a water access site created by the new text begincommissioner of new text endIron
Range resources and rehabilitation deleted text beginBoarddeleted text end. A water access site under this subdivision that
provides access to an idled, water filled mine pit also includes the entire water filled area
of the pit, and, further, claims related to a mine pit water access site under this subdivision
include those based upon the caving or slumping of mine pit walls.

Sec. 59.

Minnesota Statutes 2016, section 469.310, subdivision 9, is amended to read:


Subd. 9.

Local government unit.

"Local government unit" means a statutory or home
rule charter city, county, town, new text beginthe Department of new text endIron Range Resources and Rehabilitation
deleted text begin agencydeleted text end, regional development commission, or a federally designated economic development
district.

Sec. 60.

Minnesota Statutes 2016, section 474A.02, subdivision 21, is amended to read:


Subd. 21.

Preliminary resolution.

"Preliminary resolution" means a resolution adopted
by the governing body or board of the issuer, or deleted text beginin the case of thedeleted text end new text beginby the commissioner of
new text end Iron Range resources and rehabilitation deleted text beginBoard by the commissionerdeleted text end. The resolution must
express a preliminary intention of the issuer to issue obligations for a specific project,
identify the proposed project, and disclose the proposed amount of qualified bonds to be
issued. Preliminary resolutions for mortgage bonds and student loan bonds need not identify
a specific project.

Sec. 61.

Laws 2010, chapter 389, article 5, section 7, is amended to read:


Sec. 7. GIANTS RIDGE RECREATION AREA TAXING AUTHORITY.

Subdivision 1.

Additional taxes authorized.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or charter provision to the contrary, the city
of Biwabik, upon approval both by its governing body and by the vote of at least seven
members of the Iron Range Resources and Rehabilitation Board, may impose any or all of
the taxes described in this section.

Subd. 2.

Use of proceeds.

The proceeds of any taxes imposed under this section, less
refunds and costs of collection, must be deposited into the Iron Range Resources and
Rehabilitation deleted text beginBoarddeleted text end account enterprise fund created under the provisions of Minnesota
Statutes, section 298.221, paragraph (c), and must be dedicated and expended by the
commissioner of deleted text beginthedeleted text end Iron Range resources and rehabilitation deleted text beginBoard, upon approval by the
vote of at least seven members of
deleted text endnew text begin after consultation withnew text end the new text beginLegislative Commission on
new text end Iron Range Resources and Rehabilitation deleted text beginBoarddeleted text end, to pay costs for the construction, renovation,
improvement, expansion, and maintenance of public recreational facilities located in those
portions of the city within the Giants Ridge Recreation Area as defined in Minnesota Statutes,
section 298.22, subdivision 7, or to pay any principal, interest, or premium on any bond
issued to finance the construction, renovation, improvement, or expansion of such public
recreational facilities.

Subd. 3.

Lodging tax.

new text begin(a) new text endThe city of Biwabik, upon approval both by its governing
body and by the vote of at least seven members of the Iron Range Resources and
Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent on the
gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. This
tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and may
be imposed only on gross lodging receipts generated within the Giants Ridge Recreation
Area as defined in Minnesota Statutes, section 298.22, subdivision 7.

new text begin (b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
imposed under paragraph (a), the change must be approved by both the governing body of
the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
the commissioner consults with the Legislative Commission on Iron Range Resources and
Rehabilitation.
new text end

Subd. 4.

Admissions and recreation tax.

(a) The city of Biwabik, upon approval both
by its governing body and by the vote of at least seven members of the Iron Range Resources
and Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent
on admission receipts to entertainment and recreational facilities and on receipts from the
rental of recreation equipment, at sites within the Giants Ridge Recreation Area as defined
in Minnesota Statutes, section 298.22, subdivision 7. The provisions of Minnesota Statutes,
section 297A.99, except for subdivisions 2 and 3, govern the imposition, administration,
collection, and enforcement of the tax authorized in this subdivision.

(b) If the city imposes the tax under paragraph (a), it must include in the ordinance an
exemption for purchases of season tickets or passes.

new text begin (c) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
imposed under paragraph (a), the change must be approved by both the governing body of
the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
the commissioner consults with the Legislative Commission on Iron Range Resources and
Rehabilitation.
new text end

Subd. 5.

Food and beverage tax.

new text begin(a) new text endThe city of Biwabik, upon approval both by its
governing body and by the vote of at least seven members of the Iron Range Resources and
Rehabilitation Board, may impose, by ordinance, an additional sales tax of not more than
one percent on gross receipts of food and beverages sold whether it is consumed on or off
the premises by restaurants and places of refreshment as defined by resolution of the city
within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section 298.22,
subdivision 7
. The provisions of Minnesota Statutes, section 297A.99, except for subdivisions
2 and 3, govern the imposition, administration, collection, and enforcement of the tax
authorized in this subdivision.

new text begin (b) If, after July 31, 2017, the city of Biwabik changes by ordinance the rate of the tax
imposed under paragraph (a), the change must be approved by both the governing body of
the city of Biwabik and the commissioner of Iron Range resources and rehabilitation, after
the commissioner consults with the Legislative Commission on Iron Range Resources and
Rehabilitation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017, without local approval
pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).
new text end

Sec. 62. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes, with cooperation from the House Research Department and the
Office of Senate Counsel, Research, and Fiscal Analysis, shall prepare legislation that makes
conforming changes in accordance with the provisions of this act. The revisor shall submit
the proposal, in a form ready for introduction, during the 2018 regular legislative session
to the chairs and ranking minority members of the senate and house of representatives
committees with jurisdiction over taxes.
new text end

Sec. 63. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213; and 298.298, new text end new text begin are
repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H1643-2

298.22 IRON RANGE RESOURCES AND REHABILITATION.

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 taconite assistance area 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 taconite assistance area 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.

298.2213 NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT FUND.

Subdivision 1.

Appropriation.

$4,000,000 is appropriated from the general fund to the commissioner of Iron Range resources and rehabilitation. $300,000 of this appropriation must be used in the same manner as money appropriated under section 298.17.

Subd. 2.

Purpose of expenditures.

The money appropriated in this section may be used for projects and programs for which technological and economic feasibility have been demonstrated and that have the following purposes:

(1) creating and maintaining productive, permanent, skilled employment, including employment in technologically innovative businesses; and

(2) encouraging diversification of the economy and promoting the development of minerals, alternative energy sources utilizing indigenous fuels, forestry, small business, and tourism.

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 taconite assistance area defined in section 273.1341, and as otherwise provided in this section.

Subd. 4.

Project approval.

The board and commissioner shall by August 1 each year prepare a list of projects to be funded from the money appropriated in this section with necessary supporting information including descriptions of the projects, plans, and cost estimates. A project must not be approved by the board unless it finds that:

(1) the project will materially assist, directly or indirectly, the creation of additional long-term employment opportunities;

(2) the prospective benefits of the expenditure exceed the anticipated costs; and

(3) in the case of assistance to private enterprise, the project will serve a sound business purpose.

Each project must be approved by the board and the commissioner of Iron Range resources and rehabilitation. The list of projects must be submitted to the governor, who shall, by November 15 of each year, approve, disapprove, or return for further consideration, each project. The money for a project may be spent only upon approval of the project by the governor. The board may submit supplemental projects for approval at any time.

Subd. 5.

Advisory committees.

Before submission to the board of a proposal for a project for expenditure of money appropriated under this section, the commissioner of Iron Range resources and rehabilitation shall appoint a technical advisory committee consisting of at least seven persons who are knowledgeable in areas related to the objectives of the proposal. If the project involves investment in a scientific research proposal, at least four of the committee members must be knowledgeable in the specific scientific research area relating to the project. Members of the committees must be compensated as provided in section 15.059, subdivision 3. The board shall not act on a proposal until it has received the evaluation and recommendations of the technical advisory committee.

Subd. 6.

Use of repayments and earnings.

Principal and interest received in repayment of loans made under this section must be deposited in the state treasury and are appropriated to the board for the purposes of this section.

298.298 LONG-RANGE PLAN.

Consistent with the policy established in sections 298.291 to 298.298, the Iron Range Resources and Rehabilitation Board shall prepare and present to the governor and the legislature by December 31, 2006, a long-range plan for the use of the Douglas J. Johnson economic protection trust fund for the economic development and diversification of the taconite assistance area defined in section 273.1341. No project shall be approved by the Iron Range Resources and Rehabilitation Board which is not consistent with the goals and objectives established in the long-range plan.