HF 3058

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; clarifying the Iron Range Resources and
Rehabilitation Board's funds expenditure approval process; authorizing the lease
of certain lands; requiring a long-range plan by the board and commissioner;
appropriating money; amending Minnesota Statutes 2004, sections 298.22,
subdivisions 1, 8, by adding a subdivision; 298.2213, subdivision 4; 298.223,
subdivisions 2, 3; Minnesota Statutes 2005 Supplement, sections 298.296,
subdivision 1; 298.298.

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

Section 1.

Minnesota Statutes 2004, section 298.22, subdivision 1, is amended to read:

Subdivision 1.

The office of the commissioner of Iron Range resources and
rehabilitation.

(1) The office of the commissioner of Iron Range resources and
rehabilitation is created new text begin as an agency in the executive branch of state government new text end . The
governor shall appoint the commissioner of Iron Range resources and rehabilitation under
section 15.06.

(2) 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 such new text begin staff and other new text end assistance as may be necessary, must be
paid out of the amounts appropriated by section 298.28 new text begin or otherwise made available by
law to the commissioner new text end .

(3) When the commissioner determines that distress and unemployment exists or
may exist in the future in any county by reason of the removal of natural resources or
a possibly limited use of natural resources in the future and any resulting decrease in
employment, the commissioner may use whatever amounts of the appropriation made to
the commissioner of revenue in section 298.28 that are determined to be necessary and
proper in the development of the remaining resources of the county and in the vocational
training and rehabilitation of its residents, 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.
For the purposes of this section, "development of remaining resources" includes, but is
not limited to, the promotion of tourism.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2004, section 298.22, subdivision 8, is amended to read:

Subd. 8.

Spending priority.

In making or approving any expenditures on programs
or projects, the commissioner and the board shall give the highest priority to programs
and projects that target relief to those areas of the 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. new text begin 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 impacted by the closure of the LTV Steel Mining Company
facility near Hoyt Lakes. The payments and royalties from such leases must be deposited
into the fund established in section 298.292. new text end 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2004, section 298.22, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Budgeting. new text end

new text begin The commissioner of Iron Range resources and rehabilitation
shall annually prepare a budget of operational expenditures, programs, and projects, and
submit it to the Iron Range Resources and Rehabilitation Board and the governor for
approval. The commissioner is authorized to expend available funds approved in the
budget for operational expenditures, projects, and programs.
new text end

Sec. 4.

Minnesota Statutes 2004, section 298.2213, subdivision 4, is amended to read:

Subd. 4.

Project approval.

The board new text begin and commissioner new text end 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.

deleted text begin To be proposed by the board, a deleted text end new text begin Each new text end project must be approved by a majority of
the Iron Range Resources and Rehabilitation Board members 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2004, section 298.223, subdivision 2, is amended to read:

Subd. 2.

Administration.

The taconite new text begin area new text end environmental protection fund shall be
administered by the commissioner of the Iron Range Resources and Rehabilitation Board.
The commissioner shall by September 1 of each year submit to the board a list of projects
to be funded from the taconite new text begin area new text end environmental protection fund, with such supporting
information including description of the projects, plans, and cost estimates as may be
necessary. Upon approval by a majority of the members of the Iron Range Resources
and Rehabilitation Board, this list 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 governor. The commissioner may submit
supplemental projects to the board and governor for approval at any time.

Sec. 6.

Minnesota Statutes 2004, section 298.223, subdivision 3, is amended to read:

Subd. 3.

Appropriation.

There is hereby annually appropriated to the commissioner
of Iron Range resources and rehabilitation such new text begin taconite area environmental protection new text end
funds as are necessary to carry out the projects new text begin and programs new text end approved and such funds as
are 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 new text begin area new text end environmental protection fund.

Sec. 7.

Minnesota Statutes 2005 Supplement, section 298.296, subdivision 1, is
amended to read:

Subdivision 1.

Project approval.

The board new text begin and commissioner new text end shall 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. These projects shall be consistent with the priorities
established in section 298.292 and shall not be approved by the board unless it 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 To be proposed by the board, a deleted text end new text begin Each new text end project must be approved by at least eight
Iron Range Resources and Rehabilitation Board members 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2005 Supplement, section 298.298, is amended to read:

298.298 LONG-RANGE PLAN.

Consistent with the policy established in sections 298.291 to 298.298, the Iron
Range Resources and Rehabilitation Board new text begin and commissioner new text end shall prepare and present
to the governor and the legislature by deleted text begin January 1, 1984 deleted text end new text begin December 31, 2006, new text end 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. deleted text begin The Iron Range Resources and Rehabilitation Board shall, before
November 15 of each even numbered year, prepare a report to the governor and legislature
updating and revising this long-range plan and reporting on the Iron Range Resources and
Rehabilitation Board's progress on those matters assigned to it by law. After January 1,
1984, deleted text end 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9. new text begin MINNESOTA MINERALS 21ST CENTURY FUND; APPROPRIATION.
new text end

new text begin $12,500,000 is appropriated from the general fund to the commissioner of
employment and economic development for transfer to the Minnesota minerals 21st
century fund under Minnesota Statutes, section 116J.423.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end