SF 1173

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to economic development; authorizing the purchase of forest land by
the IRRRB using the Douglas J. Johnson economic trust fund; establishing the
Iron Range Miners' Memorial Forest; allowing transfer of money; amending
Minnesota Statutes 2006, sections 298.22, by adding a subdivision; 298.292,
subdivision 2.

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

Section 1.

Minnesota Statutes 2006, section 298.22, is amended by adding a
subdivision to read:

new text begin Subd. 5a. new text end

new text begin Forest trust. new text end

new text begin The board may purchase forest lands in the taconite
assistance area under section 273.1341 with funds specifically authorized for the purchase.
All of these forest lands must be held in trust for the benefit of the citizens of the area as
the Iron Range Miners' Memorial Forest. The board may use the forest trust lands for
recreation and economic uses. The board must deposit the proceeds from the sale of
timber or removal of gravel or other minerals from these forest lands into an Iron Range
Miners' Memorial Forest account established by the board. By majority vote of the board,
money in the Iron Range Miners' Memorial Forest account may be transferred into the
Douglas J. Johnson economic protection trust fund under sections 298.291 to 298.294.
new text end

Sec. 2.

Minnesota Statutes 2006, 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; deleted text begin and
deleted text end

(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 new text begin ; and
new text end

new text begin (5) to purchase forest land in the taconite assistance area under section 273.1341 to
be held as a public trust for the benefit of the area for recreational uses and for economic
purposes, including timber sales and gravel removal new text end .

Money from the trust fund shall be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341.

Sec. 3. new text begin IRON RANGE MEMORIAL FOREST.
new text end

new text begin Notwithstanding Minnesota Statutes, section 298.293, the Iron Range Resources and
Rehabilitation Board under Minnesota Statutes, section 298.22, may expend funds from
the principal of the Douglas J. Johnson economic protection trust fund under Minnesota
Statutes, sections 298.291 to 298.294, to purchase forest lands. All forest lands purchased
under this section must be held in trust for the benefit of the citizens of the taconite
assistance area under Minnesota Statutes, section 273.1341, as the Iron Range Miners'
Memorial Forest for the benefit of the area as provided under section 1.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the day following final enactment.
new text end