HF 3347

as introduced - 88th Legislature (2013 - 2014) Posted on 04/09/2014 12:01pm

A bill for an act
relating to taxation; minerals; making clarifying changes; removing obsolete,
redundant, and unnecessary laws administered by the Office of the Commissioner
of Iron Range resources and rehabilitation; modifying funds; appropriating
money; amending Minnesota Statutes 2012, sections 273.1341; 298.22, as
amended; 298.2211, as amended; 298.2212; 298.28, subdivisions 7, 11; 298.292,
as amended; 298.293; 298.297; Minnesota Statutes 2013 Supplement, sections
298.221; 298.227; 298.28, subdivision 9d; 298.294; 298.296, subdivisions 1, 2;
repealing Minnesota Statutes 2012, sections 298.2213, subdivisions 1, 2, 3, 5, 6;
298.222; 298.223, subdivision 3; 298.296, subdivision 4; 298.2961, subdivisions
1, 3, 6, 7; 298.298; Minnesota Statutes 2013 Supplement, sections 298.22,
subdivision 8; 298.2213, subdivision 4; 298.223, subdivisions 1, 2; 298.2961,
subdivisions 2, 4, 5.

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

Section 1.

Minnesota Statutes 2012, section 273.1341, is amended to read:

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

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

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

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

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 2012, section 298.22, as amended by Laws 2013, chapter 3,
sections 6 to 10 and 27, and chapter 85, article 5, section 34, is amended to read:

298.22 IRON RANGE RESOURCES AND REHABILITATION.

Subdivision 1.

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

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

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

(c) When the commissioner determines that deleted text begin distress and unemployment exists or
may exist deleted text end new text begin economic conditions new text end in deleted text begin the future in any county by reason deleted text end new text begin all or a portion new text end of
the deleted text begin removal of natural resources or a possibly limited use of natural resources in the
future and any resulting decrease in employment deleted text end new text begin Iron Range Resources and Rehabilitation
Board service area, as defined in section 273.1341, might be improved by agency action new text end ,
the commissioner may use deleted text begin whatever amounts of the appropriation made deleted text end new text begin any available
resources new text end to deleted text begin the commissioner of revenue in section 298.28 deleted text end new text begin undertake projects or
programs new text end that deleted text begin are determined to be necessary and proper deleted text end new text begin will aid new text end in the development of
the deleted text begin 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. deleted text end new text begin economy. Special priority for projects and programs shall be given to parts of the
Service Area most affected by economic downturns in mining or other major industries.
new text end

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

Subd. 1a.

Iron Range Resources and Rehabilitation Board.

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

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

Subd. 3.

Commissioner may acquire property.

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

Subd. 4.

Commissioner may accept grants and conveyances.

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

Subd. 5.

Commissioner may lease property.

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

Subd. 5a.

Forest trust.

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

Subd. 6.

Private entity participation.

The board may acquire an equity interest in
any project for which it provides funding. The commissioner may establish, participate in
the management of, and dispose of the assets of charitable foundations, nonprofit limited
liability companies, and nonprofit corporations associated with any project for which it
provides funding, including specifically, but without limitation, a corporation within the
meaning of section 317A.011, subdivision 6.

Subd. 7.

Project area development authority.

(a) In addition to the other powers
granted in this section and other law and notwithstanding any limitations contained in
subdivision 5, the commissioner, for purposes of fostering economic development and
tourism within the Giants Ridge Recreation Area or the Ironworld Discovery Center area,
may spend any money made available to the agency under section 298.28 to acquire real
or personal property or interests therein by gift, purchase, or lease and may convey by
lease, sale, or other means of conveyance or commitment any or all property interests
owned or administered by the commissioner within such areas.

(b) In furtherance of development of the Giants Ridge Recreation Area or the
Ironworld Discovery Center area, the commissioner may establish and participate in
charitable foundations, nonprofit limited liability companies, and nonprofit corporations,
including a corporation within the meaning of section 317A.011, subdivision 6.

(c) The term "Giants Ridge Recreation Area" refers to an economic development
project area established by the commissioner in furtherance of the powers delegated
in this section within St. Louis County in the following portions of the town of White
and the city of Biwabik:

Township 59 North, Range 15 West, Sections 7, 8, 17-20 and 29-32;

Township 59 North, Range 16 West, Sections 12, 13, 24, 25, and 36;

Township 58 North, Range 16 West, Section 1; and

Township 58 North, Range 15 West, Sections 5 and 6.

(d) "Ironworld Discovery Center Area" means an economic development and tourism
promotion project area established by the commissioner in furtherance of the powers
delegated in this section within St. Louis County in the south portion of the town of Balkan.

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.

Subd. 9.

Economic development and trade promotion.

In the promotion of
tourism, trade, and economic development, the commissioner may expend money made
available to the agency under section 298.28 in the same manner as private persons, firms,
corporations, and associations make expenditures for these purposes. An expenditure
for food, lodging, or travel is not governed by the travel rules of the commissioner of
management and budget.

Subd. 10.

Sale or privatization of functions.

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

Subd. 11.

Budgeting.

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

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 2012, section 298.22, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Iron Range Resources and Rehabilitation Board fund new text end

new text begin (a) A fund
called the Iron Range Resources and Rehabilitation Board fund, or IRRRB fund, is created
for the purpose of promoting the economic development of northeast Minnesota. The
IRRRB fund shall be used for the following purposes:
new text end

new text begin (1) economic development projects and public works projects located within the
Iron Range Resources and Rehabilitation Board service area that are approved by the Iron
Range Resources and Rehabilitation Board; and
new text end

new text begin (2) for any other purpose that supports the mission of the board.
new text end

new text begin (b) The IRRRB fund shall be administered by the commissioner of the Iron Range
Resources and Rehabilitation Board.
new text end

new text begin (c) The fund established by this subdivision shall be invested pursuant to law and
the net interest and dividends arising from the investment shall be included and become
part of the fund.
new text end

new text begin (d) There is annually appropriated to the commissioner from the allocations under
section 298.28, subdivisions 7 and 11, the amount necessary to carry out approved projects
and programs and the administration of this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2013 Supplement, 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 deleted text begin Iron Range
Resources and Rehabilitation Board account deleted text end new text begin IRRRB fund new text end in the special revenue fund and
are hereby appropriated for the purposes of section 298.22.

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

(c) All fees charged by the commissioner in connection with public use of the
deleted text begin state-owned deleted text end new text begin public-owned new text end 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 deleted text begin an Iron Range Resources and Rehabilitation
Board account that is created within the state enterprise fund deleted text end new text begin the IRRRB fund new text end . All funds
deposited in the deleted text begin enterprise fund account deleted text end new text begin IRRRB fund new text end are appropriated to the commissioner
to be expended, subject to approval by the board, as follows:

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

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

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

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 2012, section 298.2211, as amended by Laws 2013, chapter
3, section 12, is amended to read:

298.2211 FINANCING ACTIVITIES.

deleted text begin Subdivision 1. deleted text end

deleted text begin Purpose; grant of authority. deleted text end

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

deleted text begin Subd. 2. deleted text end

deleted text begin Area of operation. deleted text end

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

deleted text begin Subd. 3. deleted text end

deleted text begin Project approval. deleted text end

new text begin (c) new text end All projects authorized by this section shall be
submitted by the commissioner to the Iron Range Resources and Rehabilitation Board for
approval by the board. Prior to the commencement of a project involving the exercise by
the commissioner of any authority of sections 469.174 to 469.179, the governing body
of each municipality in which any part of the project is located and the county board of
any county containing portions of the project not located in an incorporated area shall by
majority vote approve or disapprove the project. deleted text begin Any project approved by the board and
the applicable governing bodies, if any, together with detailed information concerning the
project, its costs, the sources of its funding, and the amount of any bonded indebtedness to
be incurred in connection with the project, shall be transmitted to the governor, who shall
approve, disapprove, or return the proposal for additional consideration within 30 days of
receipt. 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

deleted text begin Subd. 4. deleted text end

deleted text begin Obligations not state debt. deleted text end

new text begin (d) new text end Bonds and other obligations issued by the
commissioner pursuant to this section, along with all related documents, are not general
obligations of the state of Minnesota and are not subject to sections 16C.03, subdivision 4,
and 16C.05. The full faith and credit and taxing powers of the state are not and may not be
pledged for the payment of these bonds or other obligations, and no person has the right
to compel the levy of any state tax for their payment or to compel the appropriation of
any moneys of the state for their payment except as specifically provided herein. These
bonds and obligations shall be payable solely from the property and moneys derived by
the commissioner pursuant to the authority granted in this section that the commissioner
pledges to their payment. The legislature intends not to appropriate money from the general
fund to pay for these bonds or other obligations. All these bonds or other obligations must
contain the provisions of this subdivision or words to the same effect on their face.

deleted text begin Subd. 5. deleted text end

deleted text begin Appropriation of moneys. deleted text end

new text begin (e) new text end There is appropriated to the commissioner
for the purpose of carrying out any project or program undertaken pursuant to this section,
all property and moneys derived by the commissioner through the exercise of the powers
conferred by this section. The commissioner may pledge all the property or moneys
for the security or payment of bonds or other obligations issued or entered into by the
commissioner for this purpose.

deleted text begin Subd. 6. deleted text end

deleted text begin Fee setting. deleted text end

new text begin (f) new text end Fees for admission to or use of facilities operated by the
Iron Range Resources and Rehabilitation Board that have been established according to
prevailing market conditions and to recover operating costs need not be set by rule.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2012, section 298.2212, is amended to read:

298.2212 INVESTMENT OF FUNDS.

All funds credited to the deleted text begin Iron Range Resources and Rehabilitation Board account in
the special revenue fund deleted text end new text begin IRRRB fund new text end 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. 7.

Minnesota Statutes 2013 Supplement, section 298.227, is amended to read:

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

deleted text begin (a) deleted text end An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by
the Iron Range Resources and Rehabilitation Board in a separate deleted text begin taconite economic
development deleted text end new text begin mining reinvestment new text end fund for each taconite and direct reduced ore producer.
new text begin The fund established by this section shall be invested pursuant to law and the net interest
and dividends arising from the investment shall be included and become part of the fund.
new text end 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 new text begin projects supporting new text end 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. deleted text begin 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. deleted text end new text begin Projects recommended
by the commissioner shall be subject to the board for approval. new text end If a proposed expenditure
is not approved by the board, the funds must be deposited in the deleted text begin Taconite Environmental
Protection Fund deleted text end new text begin IRRRB fund new text end under sections deleted text begin 298.222 deleted text end new text begin 298.22 new text end to 298.225. deleted text begin If a producer
uses money which has been released from the fund prior to May 26, 2007 to procure
haulage trucks, mobile equipment, or mining shovels, and the producer removes the piece
of equipment from the taconite tax relief area defined in section 273.134 within ten years
from the date of receipt of the money from the fund, a portion of the money granted
from the fund must be repaid to the 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 deleted text begin 298.223
deleted text end new text begin 298.22 new text end 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 deleted text begin taconite environmental protection fund deleted text end new text begin IRRRB fund new text end 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

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 2012, section 298.28, subdivision 7, is amended to read:

Subd. 7.

Iron Range Resources and Rehabilitation Board.

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

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.

Minnesota Statutes 2013 Supplement, section 298.28, subdivision 9d, is
amended to read:

Subd. 9d.

Iron Range higher education account.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2012, 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 section 294.26 in calendar year 1977; provided, however, that the amount
distributed in 1981 to the unorganized territory number 2 of Lake County and the town
of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be
distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake
County and the towns of Beaver Bay and Stony River based on the miles of track of Erie
Mining Company in each taxing district.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2012, section 298.292, as amended by Laws 2013, chapter
3, section 19, is amended to read:

298.292 POLICY.

Subdivision 1.

Purposes.

The legislature is cognizant of the severe economic
dislocations and widespread unemployment that result when a single industry on which
an area is largely dependent, experiences a drastic reduction in activity. The Douglas J.
Johnson economic protection trust fund is hereby created to be devoted to economic
rehabilitation and diversification of deleted text begin industrial enterprises where these conditions ensue
as the result of the decline of such a single industry deleted text end new text begin the Iron Range Resources and
Rehabilitation Board service area new text end . Priority shall be given to using the Douglas J. Johnson
economic protection trust fund for the following purposes:

(1) projects and programs that are designed to create and maintain productive,
permanent, skilled employment, including employment in technologically innovative
businesses; new text begin and
new text end

(2) projects and programs to encourage diversification of the economy and to
promote the development of minerals, alternative energy sources utilizing indigenous
fuels, forestry, small business, and tourism deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (3) projects and programs for which technological and economic feasibility have
been demonstrated.
deleted text end

Subd. 2.

Use of money.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2012, section 298.293, is amended to read:

298.293 EXPENDING FUNDS.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2013 Supplement, section 298.294, is amended to read:

298.294 INVESTMENT OF FUND.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2013 Supplement, section 298.296, subdivision 1, is
amended to read:

Subdivision 1.

Project approval.

deleted text begin The board and commissioner 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:
deleted text end

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

deleted text begin (b) the prospective benefits of the expenditure exceed the anticipated costs; and
deleted text end

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

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. deleted text begin 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

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2013 Supplement, section 298.296, subdivision 2, is
amended to read:

Subd. 2.

Expenditure of funds.

deleted text begin (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.
deleted text end

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

deleted text begin (c) Additionally, an deleted text end new text begin (a) An new text end amount equal to new text begin or less than new text end 20 percent of the value of
the corpus of the trust deleted text begin 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, deleted text end may be expended on projects. Funds may be expended
for projects under this paragraph only if the project:

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

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

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

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

deleted text begin (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.
deleted text end

deleted text begin (f) deleted text end new text begin (c) new text end 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.

deleted text begin (g) deleted text end new text begin (d) new text end Additionally, notwithstanding section 298.293, upon the approval of the
board, money from the corpus of the trust may be expanded to purchase forest lands
within the deleted text begin taconite assistance area deleted text end new text begin Iron Range Resources and Rehabilitation Board service
area defined in section 273.1341, new text end as provided in sections 298.22, subdivision 5a, and
298.292, subdivision 2, clause (5).

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2012, section 298.297, is amended to read:

298.297 ADVISORY COMMITTEES.

Before submission of deleted text begin a deleted text end new text begin an economic development new text end project new text begin using IRRRB fund or
Douglas J. Johnson economic protection trust fund money new text end to the board, 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 board shall not act 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. Notwithstanding section 15.059, the committees do not expire.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the provisions of Minnesota Statutes listed
in column A to the references listed in column B. The revisor shall also make necessary
cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with
renumbering.
new text end

	new text begin Column A new text end	new text begin Column B new text end
	new text begin 298.22, subd. 9 new text end	new text begin 298.22, subd. 6 new text end
	new text begin 298.22, subd. 1a new text end	new text begin 298.22, subd. 8 new text end
	new text begin 298.22, subd. 6 new text end	new text begin 298.22, subd. 9 new text end
	new text begin 298.22, subd. 13 new text end	new text begin 298.22, subd. 10 new text end
	new text begin 298.22, subd. 7 new text end	new text begin 298.22, subd. 13 new text end
	new text begin 298.22, subd. 10 new text end	new text begin 298.22, subd. 14 new text end
	new text begin 298.22, subd. 5a new text end	new text begin 298.22, subd. 15 new text end
	new text begin 298.2211 new text end	new text begin 298.22, subd. 7 new text end

Sec. 18. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 298.2213, subdivisions 1, 2, 3, 5, and 6;
298.222; 298.223, subdivision 3; 298.296, subdivision 4; 298.2961, subdivisions 1, 3, 6,
and 7; and 298.298, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2013 Supplement, sections 298.22, subdivision 8; 298.2213,
subdivision 4; 298.223, subdivisions 1 and 2; and 298.2961, subdivisions 2, 4, and 5, new text end new text begin are
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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