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Minnesota Legislature

Office of the Revisor of Statutes

HF 3763

as introduced - 90th Legislature (2017 - 2018) Posted on 05/14/2018 04:29pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5
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A bill for an act
relating to economic development; limiting use of funds in the Douglas J. Johnson
economic protection trust fund;amending Minnesota Statutes 2017 Supplement,
section 298.292, subdivision 2.

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

Section 1.

Minnesota Statutes 2017 Supplement, section 298.292, subdivision 2, is amended
to read:


Subd. 2.

Use of money.

new text begin(a) new text endMoney 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, after consultation with the advisory board. The net proceeds must be deposited
in the trust fund for the purposes and uses of this section.

new text begin (b) new text endMoney from the trust fund shall be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341.

new text begin (c) Money devoted to the trust fund under this section shall not be expended, appropriated,
or transferred from the trust fund for any purpose except as provided in this section.
new text end