HF 3925

as introduced - 89th Legislature (2015 - 2016) Posted on 04/14/2016 12:48pm

A bill for an act
relating to Iron Range resources and rehabilitation; modifying duties of the
commissioner; creating a Legislative-Citizen Commission; providing legislative
oversight; modifying appropriations and distributions; making conforming
changes; requiring a study; appropriating money; amending Minnesota
Statutes 2014, sections 116J.423, subdivision 1; 116J.424; 298.001, by adding
a subdivision; 298.018, subdivision 1; 298.17; 298.22; 298.221; 298.2211,
subdivisions 3, 6; 298.2213; 298.2214, subdivision 2; 298.223; 298.227; 298.27;
298.28, subdivisions 7, 7a, 9c, 9d, 11; 298.292, subdivision 2; 298.294; 298.296;
298.2961; 298.297; 298.298; 298.46.

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

Section 1.

Minnesota Statutes 2014, section 116J.423, subdivision 1, is amended to read:

Subdivision 1.

Created.

The Minnesota minerals 21st century fund is created
as a separate account in the treasury. deleted text begin Money in the account is appropriated to the
commissioner of employment and economic development for the purposes of this section. deleted text end
All money earned by the account, loan repayments of principal and interest, and earnings
on investments must be credited to the account. For the purpose of this section, "fund"
means the Minnesota minerals 21st century fund. The commissioner shall operate the
account as a revolving account.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 2.

Minnesota Statutes 2014, section 116J.424, is amended to read:

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

The commissioner of the Iron Range Resources and Rehabilitation deleted text begin Board with
approval by the board, deleted text end shall provide an equal match for any loan or equity investment
made for a facility located in the tax relief area defined in section 273.134, paragraph (b),
by the Minnesota minerals 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 deleted text end new text begin commissioner new text end and the deleted text begin board deleted text end new text begin agency new text end at its
sole discretion shall decide what interest it acquires in a project. The commissioner of
employment and economic development may require a commitment from the deleted text begin board deleted text end new text begin
commissioner new text end to make the match prior to disbursing money from the fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2014, 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-Citizen Commission
on Iron Range resources and rehabilitation under section 298.22.
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 2014, 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 begin commissioner of new text end Iron Range resources and rehabilitation
deleted text begin Board deleted 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 5.

Minnesota Statutes 2014, 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 begin Board deleted 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 begin Board deleted 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 begin Board deleted 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 the new text begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end
regarding the loans. Payment to the Iron Range resources and rehabilitation deleted text begin Board deleted 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 6.

Minnesota Statutes 2014, section 298.22, 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 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 deleted text begin by section 298.28 deleted text end or otherwise made available by law
to the commissioner. deleted text begin 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.
deleted text end

(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 new text begin , subject to legislative approval, new text end whatever
amounts of the appropriation made to the commissioner of revenue in section 298.28 that
are determined to be necessary and proper in the development of the remaining resources
of the county and in the vocational training and rehabilitation of its residents deleted text begin , except
that the amount needed to cover cost overruns awarded to a contractor by an arbitrator
in relation to a contract awarded by the commissioner or in effect after July 1, 1985, is
appropriated from the general fund deleted text end . For the purposes of this section, "development of
remaining resources" includes, but is not limited to, the promotion of tourism.

new text begin (d) Notwithstanding any other law to the contrary, for fiscal year 2018 and each
fiscal year thereafter, all expenditures by the commissioner must be approved by the
legislature in the manner provided for in paragraph (e).
new text end

new text begin (e) The commissioner shall annually submit a budget proposal to the
Legislative-Citizen Commission on Iron Range resources and rehabilitation. The
commission must review and make recommendations on the commissioner's budget
proposal as provided in subdivisions 1c and 1d. 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 Act 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 minerals 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 (f) Paragraph (e) 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

Subd. 1a.

new text begin Legislative-Citizen Commission on new text end Iron Range resources and
rehabilitation deleted text begin Board deleted text end .

deleted text begin 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 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.
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.
deleted text end

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 (a) A nine-member Legislative-Citizen Commission on Iron Range resources and
rehabilitation is created in the legislative branch, consisting of:
new text end

new text begin (1) three members of the senate appointed by the Subcommittee on Committees
of the Committee on Rules and Administration, and three members of the house of
representatives appointed by the speaker of the house. At least one member from the
senate and one member from the house of representatives must be from the minority
caucus. Members are entitled to reimbursement for per diem expenses plus travel expenses
incurred in the services of the commission; and
new text end

new text begin (2) three citizens, one appointed by the governor, one appointed by the senate
Subcommittee on Committees of the Committee on Rules and Administration, and
one appointed by the speaker of the house. The citizen members are selected and
recommended to the appointing authorities according to subdivision 1b, and must have:
new text end

new text begin (i) experience or expertise in economic and workforce development, community
development, mining and mineral extraction, natural resources development, and any
other issue determined by the governor in consultation with the legislature;
new text end

new text begin (ii) strong knowledge regarding issues on the Iron Range;
new text end

new text begin (iii) demonstrated ability to work in a collaborative environment; and
new text end

new text begin (iv) a primary residence located in the taconite assistance area as defined in section
273.1341.
new text end

new text begin (b) Members shall develop procedures to elect a chair that rotates between legislative
and citizen members. The chair shall preside and convene meetings as often as necessary
to conduct duties prescribed by this chapter.
new text end

new text begin (c) Appointed legislative members shall serve on the commission for two-year
terms, beginning in January of each odd-numbered year and continuing through the end
of December of the next even-numbered year. Appointed citizen members shall serve
four-year terms, beginning in January of the first year and continuing through the end
of December of the final year. Citizen and legislative members continue to serve until
their successors are appointed.
new text end

new text begin (d) A citizen member may be removed by an appointing authority for cause.
Vacancies occurring on the commission shall not affect the authority of the remaining
members of the commission to carry out their duties, and vacancies shall be filled for the
remainder of the term in the same manner under paragraph (c).
new text end

new text begin (e) Citizen members shall be initially appointed according to the following schedule
of terms:
new text end

new text begin (1) one member appointed by the governor for a term ending the first Monday in
January 2020;
new text end

new text begin (2) one member appointed by the senate Subcommittee on Committees of the
Committee on Rules and Administration for a term ending the first Monday in January
2020; and
new text end

new text begin (3) one member appointed by the speaker of the house for a term ending the first
Monday in January 2020.
new text end

new text begin (f) Citizen members are entitled to per diem and reimbursement for expenses
incurred in the services of the commission, as provided in section 15.059, subdivision 3.
new text end

new text begin (g) The governor's appointments are subject to the advice and consent of the senate.
new text end

new text begin Subd. 1b. new text end

new text begin Citizen selection committee. new text end

new text begin (a) The governor shall appoint an Iron
Range Resources and Rehabilitation Citizen Selection Committee of five members who
come from different regions of the state and who have knowledge and experience of
Iron Range economic and workforce development, community development, mineral
extraction, natural resources issues, and any other issue as determined by the governor in
consultation with the legislature.
new text end

new text begin (b) The duties of the Iron Range Resources and Rehabilitation Citizen Selection
Committee shall be to:
new text end

new text begin (1) identify citizen candidates to be members of the commission as part of the open
appointments process under section 15.0597;
new text end

new text begin (2) request and review citizen candidate applications to be members of the
commission; and
new text end

new text begin (3) interview the citizen candidates and recommend an adequate pool of candidates
to be selected for commission membership by the governor, senate, and house of
representatives.
new text end

new text begin (c) Members are entitled to travel expenses incurred to fulfill their duties under this
subdivision as provided in section 15.059, subdivision 6.
new text end

new text begin Subd. 1c. new text end

new text begin Legislative-Citizen Commission duties. new text end

new text begin (a) The Legislative-Citizen
Commission shall evaluate budget proposals submitted by the commissioner and make
recommendations for legislation for appropriations for Iron Range economic and workforce
development, community development, minerals and natural resources development, and
any other issue as determined by the governor in consultation with the legislature and
shall adopt a strategic plan as provided in subdivision 1e. Approval of the recommended
legislation requires an affirmative vote of at least six members of the commission.
new text end

new text begin (b) The commission may adopt operating procedures to fulfill its duties under this
chapter.
new text end

new text begin (c) The commission must submit its legislative recommendations to the legislature
for inclusion in the biennial budget and supplemental budget approved by the legislature.
new text end

new text begin Subd. 1d. new text end

new text begin Evaluation of proposed budgets. new text end

new text begin The commission must evaluate budget
proposals and consider factors including but not limited to:
new text end

new text begin (1) the extent to which the proposed budget 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 governor in consultation with the legislature;
new text end

new text begin (2) whether, and the extent to which, an applicant could complete a project absent
funding from the commissioner;
new text end

new text begin (3) 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; 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 (4) how and to what extent the proposal 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 proposal would meet match requirements, if any; and
new text end

new text begin (6) whether the proposal meets the written objectives, priorities, and policies
established by the commissioner.
new text end

new text begin Subd. 1e. new text end

new text begin Strategic plan required. new text end

new text begin The commissioner, in consultation with the
Legislative-Citizen 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-term and long-term goals and strategies for expenditures, provide measurable
outcomes for expenditures, and determine areas of emphasis for funding.
new text end

new text begin Subd. 1f. new text end

new text begin Emerging issues. new text end

new text begin The Legislative-Citizen Commission may recommend
in its legislation the establishment of an emerging issues account to fund unexpected
emerging issues, but which still adheres to the strategic plan. Any expenditure from the
emerging issues account must be:
new text end

new text begin (1) directly related to an item or subject in the commissioner's budget as approved
by the legislature;
new text end

new text begin (2) reviewed and evaluated by the commission in the manner provided for under
subdivision 1d; and
new text end

new text begin (3) approved by a unanimous vote of the commission.
new text end

new text begin Subd. 1g. new text end

new text begin Public meetings. new text end

new text begin (a) Meetings of the Legislative-Citizen Commission,
committees or subcommittees of the commission, or technical advisory committees must
be open to the public and are subject to chapter 13D. The commission shall attempt to
meet throughout various regions of the state during each biennium. For purposes of this
subdivision, a meeting occurs when a quorum is present and action is taken regarding a
matter within the jurisdiction of the commission, a committee or subcommittee of the
commission, or a technical advisory committee.
new text end

new text begin (b) For legislative members of the commission, enforcement of this subdivision is
governed by section 3.055, subdivision 2. For nonlegislative members of the commission,
enforcement of this subdivision is governed by section 13D.06, subdivisions 1 and 2.
new text end

new text begin Subd. 1h. new text end

new text begin Legislative Coordinating Commission. new text end

new text begin The Legislative Coordinating
Commission shall hire an executive director of the Legislative-Citizen Commission on
Iron Range resources and rehabilitation and other staff as requested by the commission.
new text end

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 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 the acquirement of real estate or personal property is necessary and proper in the
development of the remaining resources, 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 and
the commissioner of administration for the necessary and proper development of the
remaining resources of any distressed county, such grants, 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 of Iron Range resources and rehabilitation
and the commissioner of administration may lease any property acquired hereunder for
a term not to exceed 20 years upon such terms as they may determine, provided that
such property shall not be leased to any person in such a manner as to constitute a direct
contribution of working capital to a business enterprise. Such lease may provide that in the
event the property is ever sold by the state to such lessee, the lessee may obtain a credit
on the purchase price covering the rentals paid under the lease or any renewals thereof
and that said real estate can be conveyed by the commissioner of Iron Range resources
and rehabilitation and the commissioner of administration and the said commissioners are
hereby authorized to make such conveyances.

Subd. 5a.

Forest trust.

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

Subd. 6.

Private entity participation.

new text begin Subject to legislative approval, new text end the deleted text begin board deleted text end new text begin
commissioner new text end 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 deleted text begin and other law and notwithstanding any limitations contained in
subdivision 5 deleted text end , the commissioner, for purposes of fostering economic development and
tourism within the Giants Ridge Recreation Area or the Ironworld Discovery Center area,
new text begin and with legislative approval, new text end may spend any money made available to the agency deleted text begin under
section 298.28 deleted text end 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.

deleted text begin 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. deleted text end The commissioner may lease, for a term not exceeding 50 years and upon the
terms determined by the commissioner deleted text begin and approved by the board deleted text end , 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 deleted text begin and the board deleted text end 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 new text begin , subject to legislative
approval, new text end may expend money made available to the agency deleted text begin under section 298.28 deleted text end 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 of Iron Range
resources and rehabilitation may not sell or privatize the Ironworld Discovery Center or
Giants Ridge Golf and Ski Resort without prior approval by the deleted text begin board deleted text end new text begin legislature new text end .

deleted text begin Subd. 11. deleted text end

deleted text begin Budgeting. deleted text end

deleted text begin The commissioner of Iron Range resources and rehabilitation
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.
deleted text end

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 absent
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

new text begin Subd. 14. new text end

new text begin Legislative approval. new text end

new text begin For purposes of this section, "legislative approval"
means that the purchase, sale, expenditure, or any other action specified as subject to
legislative approval was specifically authorized by a law enacted after January 1, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin The amendment adding language to subdivision 1a;
subdivisions 1b to 1h; and subdivision 13, are effective the day following final enactment.
All other changes are effective July 1, 2017.
new text end

Sec. 7.

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

298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.

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

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

(c) All fees charged by the commissioner in connection with public use of the
state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
revenues derived by the commissioner from the operation or lease of those facilities
and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
Recreation Area must be deposited into an Iron Range resources and rehabilitation
deleted text begin Board deleted 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 begin to be expended, subject to
approval by the board, deleted 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; new text begin and
new text end

(2) to pay principal, interest and associated bond issuance, reserve, and servicing
costs associated with the financing of the facilities deleted text begin ; and deleted text end new text begin .
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 8.

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

Subd. 3.

Project approval.

deleted text begin 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. deleted 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. Any project approved by the deleted text begin board deleted text end new text begin commissioner new text end 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. new text begin Request for certification of
each district must be specifically authorized by enactment of a law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 9.

Minnesota Statutes 2014, 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 end Iron Range resources and rehabilitation deleted text begin Board deleted text end 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 July 1, 2017.
new text end

Sec. 10.

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

298.2213 NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT FUND.

deleted text begin Subdivision 1. deleted text end

deleted text begin Appropriation. deleted text end

deleted text begin $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.
deleted text end

Subd. 2.

Purpose of expenditures.

deleted text begin The deleted text end Money appropriated deleted text begin in deleted text end new text begin for new text end 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.

deleted text begin The deleted text end Money appropriated deleted text begin under deleted text end new text begin for new text end 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 deleted text begin in deleted text end new text begin for new text end 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.

deleted text begin Subd. 4. deleted text end

deleted text begin Project approval. deleted text end

deleted text begin 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:
deleted text end

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

deleted text begin (2) the prospective benefits of the expenditure exceed the anticipated costs; and
deleted text end

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

deleted text begin 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.
deleted text end

Subd. 5.

Advisory committees.

Before submission to the deleted text begin board deleted text end new text begin commission new text end of
a proposal for a project for expenditure of money appropriated under this section, the
commissioner of Iron Range resources and rehabilitation deleted text begin shall deleted text end new text begin may new text end 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. deleted text begin The board shall not act on
a proposal until it has received the evaluation and recommendations of the technical
advisory committee.
deleted text end

Subd. 6.

Use of repayments and earnings.

Principal and interest received in
repayment of loans made under this section must be deposited in the new text begin northeast Minnesota
economic development fund in the new text end state treasury deleted text begin and are appropriated to the board for the
purposes of this section deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 11.

Minnesota Statutes 2014, 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 begin Legislative-Citizen Commission on new text end Iron Range resources
and rehabilitation deleted text begin Board deleted text end appointed by the deleted text begin chair deleted text end new text begin governor new text end ;

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 12.

Minnesota Statutes 2014, 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 new text begin , as provided by
legislative appropriations new text end :

(1) to initiate investigations into matters the deleted text begin Iron Range Resources and Rehabilitation
Board deleted text end new text begin commissioner new 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 but only if those projects are approved by
the deleted text begin board deleted text end new text begin commissioner new 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; new text begin and
new text end

(5) local public works projects under section 298.227, paragraph (c) deleted text begin ; and deleted text end new text begin .
new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

deleted text begin (xix) .3230 cent per ton to Lake County for trail construction;
deleted text end

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

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

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

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

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

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

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

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

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

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

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

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

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

deleted text begin Subd. 3. deleted text end

deleted text begin Appropriation. deleted text end

deleted text begin 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.
deleted text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 13.

Minnesota Statutes 2014, 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 end Iron Range resources and rehabilitation deleted text begin Board deleted 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. 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. If a proposed expenditure is
not approved by the board, the funds must be deposited in the Taconite Environmental
Protection Fund under sections 298.222 to 298.225. If a producer uses money which has
been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile
equipment, or mining shovels, and the producer removes the piece of equipment from the
taconite tax relief area defined in section 273.134 within ten years from the date of receipt
of the money from the fund, a portion of the money granted from the fund must be repaid
to the 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.

(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. deleted text begin The
granting of the loan or grant is subject to approval by the board. deleted text end 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. deleted text begin 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

(c) Repayment or transfer of money to the taconite environmental protection
fund under paragraph (b), item (ii), must be deleted text begin allocated by the Iron Range resources and
rehabilitation Board deleted text end new text begin expended new text end 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. deleted text begin Notwithstanding any other law to the contrary, expenditures under
this paragraph do not require approval by the governor. deleted text end For purposes of this paragraph,
"house legislative districts" means the legislative districts in existence on May 15, 2009.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 14.

Minnesota Statutes 2014, 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 begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted 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 commissioner. 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 15.

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

Subd. 7.

Iron Range resources and rehabilitation deleted text begin Board deleted text end new text begin account new text end .

For the 1998
distribution, 6.5 cents per taxable ton shall be paid to the new text begin commissioner for deposit in
the new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end new text begin account new 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 273.1341. 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 July 1, 2017.
new text end

Sec. 16.

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

Subd. 7a.

Iron Range school consolidation and cooperatively operated school
account.

The following amounts must be allocated to the new text begin commissioner of new text end Iron Range
resources and rehabilitation deleted text begin Board deleted 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.

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 begin commissioner of new text end Iron
Range resources and rehabilitation deleted text begin Board deleted 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.

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.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 17.

Minnesota Statutes 2014, 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 begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 18.

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

Subd. 9d.

Iron Range higher education account.

Five cents per taxable ton
must deleted text begin be allocated to the Iron Range resources and rehabilitation Board to deleted text end 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 taconite assistance
area defined in section 273.1341. The Iron Range Higher Education Committee under
section 298.2214 deleted text begin , and the Iron Range Resources and Rehabilitation Board deleted text end must deleted text begin approve deleted text end new text begin
review new text end all expenditures from the account new text begin prior to submission by the commissioner of the
proposed expenditures to the Legislative-Citizen 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 July 1, 2017.
new text end

Sec. 19.

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

Subd. 11.

Remainder.

(a) The proceeds of the tax imposed by section 298.24 which
remain after the distributions and payments in subdivisions 2 to 10a, as certified by the
commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with
interest earned on all money distributed under this section prior to distribution, shall be
divided between the taconite 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 begin Minnesota Statutes 1978, new text end 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 deleted text begin Board deleted text end new text begin
account new text end 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 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 begin Minnesota Statutes 1978, new text end section 294.26 in calendar year 1977.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 20.

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

Subd. 2.

Use of money.

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

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

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

(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 new text begin only new text end upon deleted text begin approval by the board deleted text end new text begin specific authorization
by law new 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 21.

Minnesota Statutes 2014, 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, except as provided in paragraph (b), on the first
day of each month to the trust and shall be included and become part of the trust fund.
deleted text begin The amounts transferred, including the interest, dividends, and other earnings earned
prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
commissioner of Iron Range resources and rehabilitation for deposit in a separate account
for expenditure for the purposes set forth in section 298.292. Amounts appropriated
pursuant to this section shall not cancel but shall remain available unless expended.
deleted text end

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 July 1, 2017.
new text end

Sec. 22.

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

298.296 OPERATION OF FUND.

Subdivision 1.

Project deleted text begin approval deleted text end new text begin list new text end .

The deleted text begin board and deleted text end 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 deleted text begin and shall not be approved by the board deleted text end unless deleted text begin it finds that deleted text end :

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

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

deleted text begin (1) deleted text end is for the purposes established under section 298.292, subdivision 1, clause
(1) or (2) deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) is approved by two-thirds of all of the members of the board.
deleted text end

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

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

deleted text begin (e) deleted text end new text begin (d) new text end 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 begin (f) deleted text end new text begin (e) 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. deleted text begin These receipts
are appropriated to the board for the purposes of sections 298.291 to 298.298.
deleted text end

deleted text begin (g) deleted text end new text begin (f) new text end deleted text begin Additionally, notwithstanding section 298.293, upon the approval of the
board, deleted 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 and staff of the Iron Range resources
and rehabilitation deleted text begin Board deleted 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) The deleted text begin board deleted text end new text begin commissioner new text end may recommend
that up to $7,500,000 from the corpus of the trust may be used 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 begin the board must reserve deleted 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 begin to
be used deleted text end new 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) deleted text begin Additionally, the board may recommend that deleted 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 begin board deleted text end new text begin commissioner new text end may require that deleted text begin it deleted text end new text begin the fund new text end receive an equity percentage
in any project to which it contributes under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 23.

Minnesota Statutes 2014, 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, deleted text begin are
appropriated deleted text end new text begin may only be used new text end 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 begin To be proposed by the board, a project must be approved by the board. deleted text end The
money for a project may be spent only upon new text begin specific new text end approval of the project by deleted text begin the
governor. The board may submit supplemental projects for approval at any time deleted text end new text begin law new text end .

(c) The deleted text begin board deleted text end new text begin commissioner new text end may require that deleted text begin it deleted text end new text begin the fund new 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.

deleted text begin (a) deleted text end 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 be new text begin specifically new text end approved
by deleted text begin the deleted text end deleted text begin board, established under section 298.22 deleted text end new text begin law new text end .

deleted text begin (b) Distributions received in calendar year 2005 are allocated to the city of Virginia
for improvements and repairs to the city's steam heating system.
deleted text end

deleted text begin (c) Distributions received in calendar year 2006 are allocated to a project of the
public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
generating plants to the use of biomass products, such as wood.
deleted text end

deleted text begin (d) Distributions received in calendar year 2007 must be paid to the city of Tower to
be used for the East Two Rivers project in or near the city of Tower.
deleted text end

deleted text begin (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
must be paid to St. Louis County for deposit in its county road and bridge fund to be
used for relocation of St. Louis County Road 715, commonly referred to as Pike River
Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
maintenance garage on Highway 135, further extending the lines to interconnect with the
city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
years are allocated for projects under section 298.223, subdivision 1.
deleted text end

deleted text begin Subd. 5. deleted text end

deleted text begin Public works and local economic development fund. deleted text end

deleted text begin For distributions in
2007 only, a special fund is established to receive 38.4 cents per ton that otherwise would
be allocated under section 298.28, subdivision 6. The following amounts are allocated to
St. Louis County acting as the fiscal agent for the recipients for the specific purposes:
deleted text end

deleted text begin (1) 13.4 cents per ton for the Central Iron Range Sanitary Sewer District for
construction of a combined wastewater facility and notwithstanding section 298.28,
subdivision 11, paragraph (a), or any other law, interest accrued on this money while held
by St. Louis County shall also be distributed to the recipient;
deleted text end

deleted text begin (2) six cents per ton to the city of Eveleth to redesign and design and construct
improvements to renovate its water treatment facility;
deleted text end

deleted text begin (3) one cent per ton for the East Range Joint Powers Board to acquire land for and to
design a central wastewater collection and treatment system;
deleted text end

deleted text begin (4) 0.5 cents per ton to the city of Hoyt Lakes to repair Leeds Road;
deleted text end

deleted text begin (5) 0.7 cents per ton to the city of Virginia to extend Eighth Street South;
deleted text end

deleted text begin (6) 0.7 cents per ton to the city of Mountain Iron to repair Hoover Road;
deleted text end

deleted text begin (7) 0.9 cents per ton to the city of Gilbert for alley repairs between Michigan and
Indiana Avenues and for repayment of a loan to the Minnesota Department of Employment
and Economic Development;
deleted text end

deleted text begin (8) 0.4 cents per ton to the city of Keewatin for a new city well;
deleted text end

deleted text begin (9) 0.3 cents per ton to the city of Grand Rapids for planning for a fire and hazardous
materials center;
deleted text end

deleted text begin (10) 0.9 cents per ton to Aitkin County Growth for an economic development
project for peat harvesting;
deleted text end

deleted text begin (11) 0.4 cents per ton to the city of Nashwauk to develop a comprehensive city plan;
deleted text end

deleted text begin (12) 0.4 cents per ton to the city of Taconite for development of a city comprehensive
plan;
deleted text end

deleted text begin (13) 0.3 cents per ton to the city of Marble for water and sewer infrastructure;
deleted text end

deleted text begin (14) 0.8 cents per ton to Aitkin County for improvements to the Long Lake
Environmental Learning Center;
deleted text end

deleted text begin (15) 0.3 cents per ton to the city of Coleraine for the Coleraine Technology Center;
deleted text end

deleted text begin (16) 0.5 cents per ton to the Economic Development Authority of the city of Grand
Rapids for planning for the North Central Research and Technology Laboratory;
deleted text end

deleted text begin (17) 0.6 cents per ton to the city of Bovey for sewer and water extension;
deleted text end

deleted text begin (18) 0.3 cents per ton to the city of Calumet for infrastructure improvements; and
deleted text end

deleted text begin (19) ten cents per ton to the commissioner of Iron Range Resources and Rehabilitation
for deposit in a Highway 1 Corridor Account established by the commissioner, to be
distributed by the commissioner to any of the cities of Babbitt, Cook, Ely, or Tower, for
economic development projects approved by the board; notwithstanding section 298.28,
subdivision 11, paragraph (a), or any other law, interest accrued on this money while held
by St. Louis County or the commissioner shall also be distributed to the recipient.
deleted text end

deleted text begin Subd. 6. deleted text end

deleted text begin Renewable energy. deleted text end

deleted text begin For distributions in 2009 only, a special account is
established in the taconite environmental protection fund to receive 15.5 cents per ton that
otherwise would be allocated under section 298.28, subdivision 6. The funds are available
for cooperative projects between the Iron Range Resources and Rehabilitation Board and
local governments for renewable energy initiatives.
deleted text end

deleted text begin Subd. 7. deleted text end

deleted text begin 2010 distributions only. deleted text end

deleted text begin For distributions in 2010 only, a special fund is
established to receive the sum of the following amounts that otherwise would be allocated
under section 298.28, subdivision 6. The following amounts are allocated to St. Louis
County acting as the fiscal agent for the recipients for the specific purposes:
deleted text end

deleted text begin (1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide
incentives for at least two dentists to establish dental practices in high-need areas of the
taconite tax relief area;
deleted text end

deleted text begin (2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal
heat at the Olcott Park Greenhouse/Virginia Commons project;
deleted text end

deleted text begin (3) 0.796 cent per ton must be paid to the city of Virginia for health and safety
repairs at the Miners Memorial;
deleted text end

deleted text begin (4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction
of Highway 142/Grant and Park Avenues;
deleted text end

deleted text begin (5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for
upgrades and capital improvements to the public arena in Coleraine;
deleted text end

deleted text begin (6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and
pumphouse modifications;
deleted text end

deleted text begin (7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial
claims for water damage due to water and flood-related damage caused by the Canisteo Pit;
deleted text end

deleted text begin (8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and
child care center;
deleted text end

deleted text begin (9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer
upgrades;
deleted text end

deleted text begin (10) 0.637 cent per ton must be paid to the city of Marble for the city hall and
library project;
deleted text end

deleted text begin (11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of
water and sewer services for Lakewood Housing;
deleted text end

deleted text begin (12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at
the Children's Museum;
deleted text end

deleted text begin (13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil
corrections. This amount must be matched by local sources;
deleted text end

deleted text begin (14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
deleted text end

deleted text begin (15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
deleted text end

deleted text begin (16) 0.159 cent per ton must be paid to Aitkin County for a trail;
deleted text end

deleted text begin (17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road
railroad crossing;
deleted text end

deleted text begin (18) 0.088 cent per ton must be paid to the town of Clinton for expansion and
striping of the community center parking lot;
deleted text end

deleted text begin (19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
deleted text end

deleted text begin (20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure
improvements, milling, and overlay for Summit Street between Alaska Avenue and
Highway 135;
deleted text end

deleted text begin (21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main
replacements and improvements in the Northeast Lower Alley area;
deleted text end

deleted text begin (22) 0.637 cent per ton must be paid to the town of White for replacement of the
Stepetz Road culvert;
deleted text end

deleted text begin (23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon
Street and associated infrastructure;
deleted text end

deleted text begin (24) 0.796 cent per ton must be paid to the city of Mountain Iron for site
improvements at the Park Ridge development;
deleted text end

deleted text begin (25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure
and site preparation for its renewable and sustainable energy park;
deleted text end

deleted text begin (26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer
improvements;
deleted text end

deleted text begin (27) 0.796 cent per ton must be paid to the city of Aurora for alley and road
rebuilding for the Summit Addition;
deleted text end

deleted text begin (28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility
improvements;
deleted text end

deleted text begin (29) 0.318 cent per ton must be paid to the city of Grand Marais for water and
sewer infrastructure improvements;
deleted text end

deleted text begin (30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer
improvements;
deleted text end

deleted text begin (31) 0.716 cent per ton must be paid to the city of Cook for street and bridge
improvements and land purchase, provided that if the city sells or otherwise disposes of
any of the land purchased with the money provided under this clause within a period of
ten years after it was purchased, the city must transfer a portion of the proceeds of the
sale equal to the amount of the purchase price paid from the money provided under this
clause to the commissioner of Iron Range Resources and Rehabilitation for deposit in the
taconite environmental protection fund to be used for the purposes of the fund under
section 298.223;
deleted text end

deleted text begin (32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer
improvements;
deleted text end

deleted text begin (33) 0.318 cent per ton must be paid to the city of Tower for water and sewer
improvements;
deleted text end

deleted text begin (34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer
improvements;
deleted text end

deleted text begin (35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer
improvements;
deleted text end

deleted text begin (36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure
improvements;
deleted text end

deleted text begin (37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure
improvements;
deleted text end

deleted text begin (38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
deleted text end

deleted text begin (39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project
infrastructure improvements;
deleted text end

deleted text begin (40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety
improvements at the athletic facility;
deleted text end

deleted text begin (41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street
improvements;
deleted text end

deleted text begin (42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for
infrastructure related to a housing development;
deleted text end

deleted text begin (43) 0.159 cent per ton must be paid to Balkan Township for building improvements;
deleted text end

deleted text begin (44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to
a nonprofit for a signage kiosk;
deleted text end

deleted text begin (45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer
lines and adjacent development near County State-Aid Highway 24; and
deleted text end

deleted text begin (46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic
wall infrastructure around the athletic complex.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 24.

Minnesota Statutes 2014, section 298.297, is amended to read:

298.297 ADVISORY COMMITTEES.

deleted text begin Before submission of a project to the board, deleted text end The commissioner of Iron Range
resources and rehabilitation deleted text begin shall deleted text end new text begin may new text end 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. deleted text begin 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.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 25.

Minnesota Statutes 2014, 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
new text begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end shall prepare and present
to the governor and the legislature by December 31, deleted text begin 2006 deleted text end new text begin 2017 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 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.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 26.

Minnesota Statutes 2014, section 298.46, is amended to read:

298.46 EXPLORATORY DRILLING FOR IRON ORE.

Subdivision 1.

Public policy.

It is hereby declared to be in the public interest of this
state as a whole, and in particular with respect to counties or other political subdivisions,
to encourage the location of all deposits of iron ore hitherto unknown to such political
subdivisions, that may be susceptible of economic exploitation.

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 begin commissioner of new text end Iron Range
resources and rehabilitation deleted text begin Board deleted 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.

Subd. 3.

Refusal to permit valuation; easement.

If the fee owner of the land on
which the unmined iron ore is believed to be located, or the owner of a mineral interest
therein, refuses to permit the county assessor to ascertain the value of unmined iron ore
believed to be located on such land, the county attorney, acting in the name of the county
may institute proceedings under chapter 117, for the express purpose of being granted an
easement which would permit the county assessor to verify whether or not such land does,
in fact, contain reserves of unmined iron ore.

Subd. 4.

Discharge of easement.

When the county assessor has verified the existence
of reserves of iron ore and has ascertained the value of such reserves, or in the alternative
has failed to locate any reserves susceptible of being economically exploited, the assessor
shall notify the county attorney, and the county attorney shall then, by appropriate means,
request the district court to discharge the easement secured for the purpose stated above.

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 begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end from
amounts appropriated to that board under section 298.22. The new text begin commissioner of new text end Iron
Range resources and rehabilitation deleted text begin Board deleted 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 begin commissioner of new text end Iron Range resources
and rehabilitation deleted text begin Board deleted text end in the manner provided by section 298.221.

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 begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end .

Subd. 7.

Area of application.

The provisions of this section shall not apply in
the Boundary Waters Canoe Area.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 27. new text begin INITIAL APPOINTMENTS.
new text end

new text begin (a) Notwithstanding any law to the contrary, initial appointments of citizen members
to the Legislative-Citizen Commission may be made immediately upon recommendation
of the citizen selection committee.
new text end

new text begin (b) Notwithstanding any law to the contrary, the governor's authority to appoint
initial members to the citizen selection committee under Minnesota Statutes, section
298.22, subdivision 1b, is effective the day following final enactment and is not subject to
the open appointments process under Minnesota Statutes, section 15.0597.
new text end

new text begin (c) Notwithstanding any law to the contrary, initial appointments of legislative
members to the Legislative-Citizen Commission may be made immediately for terms
expiring the third Monday in January 2017.
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. 28. new text begin GIANTS RIDGE STUDY; APPROPRIATION.
new text end

new text begin The Management Analysis Division of Minnesota Management and Budget must
study and make recommendations to the legislature by January 1, 2017, regarding the
future of the Giants Ridge Recreation Area project. The study must include, but is not
limited to, sale of the property, or transfer of the property to the Department of Natural
Resources. $....... in fiscal year 2016 is appropriated from the Iron Range resources and
rehabilitation account to the commissioner of management and budget for the study under
this section. This is a onetime appropriation and is available until June 30, 2017.
new text end

Sec. 29. new text begin LEGISLATIVE COORDINATING COMMITTEE.
new text end

new text begin $420,000 in fiscal year 2017 is appropriated from the Iron Range resources and
rehabilitation account to the Legislative Coordinating Commission for the purposes of
Minnesota Statutes, section 298.22, subdivision 1h.
new text end

Sec. 30. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall prepare a bill in conjunction with relevant state agencies
containing any additional conforming changes necessary to transfer duties consistent with
this act for introduction in the 2017 legislative session.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end