SF 1394

as introduced - 90th Legislature (2017 - 2018) Posted on 03/09/2017 09:31am

A bill for an act
relating to Iron Range resources and rehabilitation; modifying duties of the
commissioner; creating a Legislative-Citizen Commission; amending Minnesota
Statutes 2016, sections 116J.424; 298.001, subdivision 8, by adding a subdivision;
298.22, subdivisions 1, 1a, 5a, 6, 10, 11, by adding subdivisions; 298.2211,
subdivisions 3, 6; 298.223; 298.227; 298.28, subdivisions 7, 7a, 9c, 9d, 11; 298.292,
subdivision 2; 298.296; 298.2961; 298.297; repealing Minnesota Statutes 2016,
sections 298.22, subdivision 8; 298.2213; 298.298.

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

Section 1.

Minnesota Statutes 2016, section 116J.424, is amended to read:

116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
CONTRIBUTION.

The commissioner of deleted text begin the deleted text end Iron Range resources and rehabilitation deleted text begin Board with approval
by the board deleted text end , new text begin after consultation with the Iron Range Resources and Rehabilitation
Legislative-Citizen Commission and complying with the requirements for expenditures
under section 298.22, new text end may provide an equal match for any loan or equity investment made
for a project located in the tax relief area defined in section 273.134, paragraph (b), by the
Minnesota 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 and the board at its sole discretion shall deleted text end new text begin commissioner of Iron Range
resources and rehabilitation and the commissioner, after consultation with the commission,
shall have sole discretion to new text end decide what interest deleted text begin it deleted text end new text begin the fund new text end 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 of Iron Range resources and rehabilitation new text end to make the match prior
to disbursing money from the fund.

Sec. 2.

Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:

Subd. 8.

Commissioner.

"Commissioner" means the commissioner of revenue of the
state of Minnesota new text begin , except that when used in sections 298.22 to 298.227 and 298.291 to
298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation new text end .

Sec. 3.

Minnesota Statutes 2016, 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 Iron Range Resources and
Rehabilitation Legislative-Citizen Commission, as established under section 298.22.
new text end

Sec. 4.

Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:

Subdivision 1.

The Office of 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 by section 298.28 or otherwise made available by law to the commissioner.
Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting
options available under section 471.345 when the commissioner determines it is in the best
interest of the agency. The agency is not subject to sections 16E.016 and 16C.05.

(c) When the commissioner determines that distress and unemployment exists or may
exist in the future in any county by reason of the removal of natural resources or a possibly
limited use of natural resources in the future and any resulting decrease in employment, the
commissioner may use whatever amounts of the appropriation made to the commissioner
of revenue in section 298.28 that are determined to be necessary and proper in the
development of the remaining resources of the county and in the vocational training and
rehabilitation of its residents 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) 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 and the governor must
approve the commissioner's budget proposal as provided in subdivisions 1b, 1c, and 11.
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 (e) Paragraph (d) 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

Sec. 5.

Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:

Subd. 1a.

Iron Range Resources and Rehabilitation deleted text begin Board deleted text end new text begin Legislative-Citizen
Commission new text end .

new text begin (a) new text end The Iron Range Resources and Rehabilitation deleted text begin Board deleted text end new text begin Legislative-Citizen
Commission is created in the legislative branch. The commissioner shall consult the
commission before making expenditures or undertaking projects authorized under this
chapter. The commission new text end consists of new text begin :
new text end

new text begin (1) new text end 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. deleted text begin 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. deleted text end 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 begin . deleted text end new text begin ;
new 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 (2) nine citizens, appointed by the governor. No more than three citizen members may
have their primary residence in the same county. Citizen members are entitled to per diem
and reimbursement for expenses incurred in the service of the commission, as provided in
section 15.059, subdivision 3. The citizen members must:
new text end

new text begin (i) have experience or expertise in economic and workforce development, community
development, natural resources development, and any other issue determined by the
commission;
new text end

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

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

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

new text begin (v) not currently hold any elected office;
new text end

new text begin (vi) not have previously served as a member of the state legislature; and
new text end

new text begin (vii) not be the spouse of a current or former state legislator; and
new text end

new text begin (3) the executive director of the Range Association of Municipalities and Schools. This
member is entitled to per diem and reimbursement for expenses incurred in the service of
the commission, as provided in section 15.059, subdivision 3. This member is an ex officio
member and does not vote.
new text end

new text begin (b) The most senior legislator will serve as temporary chair for the purposes of convening
the first meeting, at which members shall develop procedures to elect a chair. The chair
shall preside and convene meetings as often as necessary to conduct duties prescribed by
this chapter. The commission must meet at least quarterly to review the actions of the
commissioner.
new text end

new text begin (c) Appointed legislative members shall serve on the commission for two-year terms,
beginning January 1 of each odd-numbered year. With the exception of initial appointees
under paragraph (e), appointed citizen members shall serve four-year terms, beginning
January 1 of the year following the year of appointment, and are limited to serving two
terms. The executive director of the Range Association of Municipalities and Schools shall
serve until replaced as executive director, when the new executive director would become
a member of the commission. Citizen and legislative members serve until their successors
are appointed and qualified.
new text end

new text begin (d) A citizen member may be removed by the governor under section 15.0575, subdivision
4. Vacancies on the commission do not affect the authority of the remaining members of
the commission to carry out their duties, and vacancies shall be filled by the governor for
the remainder of the unexpired term.
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) two members for terms ending December 31, 2019;
new text end

new text begin (2) two members for terms ending December 31, 2020;
new text end

new text begin (3) two members for terms ending December 31, 2021; and
new text end

new text begin (4) three members for terms ending December 31, 2022.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. The
governor must make appointments to the Iron Range Resources and Rehabilitation
Legislative-Citizen Commission no later than January 30, 2018.
new text end

Sec. 6.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:

new text begin Subd. 1b. new text end

new text begin Evaluation of proposed budgets and projects. new text end

new text begin (a) In evaluating budgets
proposed by the commissioner, the commission must consider factors including but not
limited to the extent to which the proposed budget:
new text end

new text begin (1) 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 commission; and
new text end

new text begin (2) advances the strategic plan adopted under subdivision 1c.
new text end

new text begin (b) In evaluating projects proposed by the commissioner, the commission must consider
factors including but not limited to:
new text end

new text begin (1) whether, and the extent to which, an applicant could complete the proposed project
without funding from the commissioner;
new text end

new text begin (2) job creation or retention goals for the proposed project, including but not limited to
wages and benefits; 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 (3) how and to what extent the proposed project is expected to impact the economic
climate of the Iron Range resources and rehabilitation services area;
new text end

new text begin (4) how the proposed project would meet match requirements, if any; and
new text end

new text begin (5) whether the proposed project meets the written objectives, priorities, and policies
established by the commissioner.
new text end

Sec. 7.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:

new text begin Subd. 1c. new text end

new text begin Strategic plan required. new text end

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

Sec. 8.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:

new text begin Subd. 1d. new text end

new text begin Public meetings and data practices. new text end

new text begin Meetings of the commission, committees
or subcommittees of the commission, and technical advisory committees are subject to
chapter 13D. The commission is subject to chapter 13.
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. 9.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:

new text begin Subd. 1e. new text end

new text begin Administrative and staff support. new text end

new text begin The commissioner, in consultation with
the Legislative Coordinating Commission, shall provide administrative and staff support to
the commission, as requested by the commission.
new text end

Sec. 10.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:

new text begin Subd. 1f. new text end

new text begin Expenses of the commission. new text end

new text begin All expenses of the commission, including the
payment of per diems and expenses under subdivision 1a must be paid out of the amounts
appropriated by section 298.28 or otherwise made available by law to the commissioner.
new text end

Sec. 11.

Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:

Subd. 5a.

Forest trust.

The commissioner, deleted text begin upon approval by the board deleted text end new text begin after consultation
with the commission new text end , may purchase forest lands in the taconite assistance area defined deleted text begin in deleted text end
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 after consultation with the commission new text end , may sell forest lands purchased
under this subdivision if the deleted text begin board finds deleted text end new text begin commissioner determines new text end 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 deleted text begin upon approval by
the board deleted text end new text begin by the commissioner, after consultation with the commission new text end , to purchase, manage,
administer, convey interests in, and improve the forest lands. deleted text begin With approval by the board, deleted text end new text begin
After consultation with the commission, the commissioner may transfer new text end money in the Iron
Range Miners' Memorial Forest account deleted text begin may be transferred deleted text end 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. new text begin The commissioner's
actions under this subdivision must at all times comply with the requirements for expenditures
under subdivisions 1, 1b, 1c, and 11.
new text end

Sec. 12.

Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:

Subd. 6.

Private entity participation.

The deleted text begin board deleted text end new text begin commissioner, after consultation with
the commission, new text end may acquire an equity interest in any project for which deleted text begin it deleted text end new text begin the commissioner new text end
provides funding. The commissioner may new text begin , after consultation with the commission, new text end 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 deleted text begin it deleted text end new text begin the commissioner new text end provides funding, including specifically, but without limitation,
a corporation within the meaning of section 317A.011, subdivision 6. new text begin The commissioner's
actions under this subdivision must at all times comply with the requirements for expenditures
under subdivisions 1, 1b, 1c, and 11.
new text end

Sec. 13.

Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:

Subd. 10.

Sale or privatization of functions.

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

Sec. 14.

Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:

Subd. 11.

Budgeting.

The commissioner of Iron Range resources and rehabilitation
shall annually prepare a budget for operational expenditures, programs, and projects, and
submit it to the deleted text begin Iron Range Resources and Rehabilitation Board deleted text end new text begin commission new text end . After new text begin the
commission has been consulted, its recommendations and the commissioner's budget shall
be submitted to the governor. Once new text end the budget is approved by deleted text begin the board and deleted text end the governor,
the commissioner may spend money in accordance with the approved budget. new text begin If unanticipated
needs for funds arise outside of the annual budget process, the commissioner must consult
the commission and receive the governor's approval before spending the funds. In addition,
the commissioner must submit annual budget reports through the Minnesota Management
and Budget system.
new text end

Sec. 15.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:

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 without
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

Sec. 16.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:

new text begin Subd. 14. new text end

new text begin Expenditures; taconite assistance area. new text end

new text begin Expenditures subject to the
requirements of this section may be expended only within or for the benefit of the taconite
assistance area defined in section 273.1341.
new text end

Sec. 17.

Minnesota Statutes 2016, section 298.22, is amended by adding a subdivision to
read:

new text begin Subd. 15. new text end

new text begin Reports to the legislature. new text end

new text begin The commissioner shall submit to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over economic development policy:
new text end

new text begin (1) an annual report of expenditures under this section; and
new text end

new text begin (2) an immediate report of any loan or grant of $1,000,000 or more made by the
commissioner.
new text end

Sec. 18.

Minnesota Statutes 2016, 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 new text begin To get approval of a project under this section, the commissioner must comply
with all the requirements for expenditures under section 298.22 new 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. deleted text begin Any project
approved by the board and the applicable governing bodies, if any, together with detailed
information concerning the project, its costs, the sources of its funding, and the amount of
any bonded indebtedness to be incurred in connection with the project, shall be transmitted
to the governor, who shall approve, disapprove, or return the proposal for additional
consideration within 30 days of receipt. No project authorized under this section shall be
undertaken, and no obligations shall be issued and no tax increments shall be expended for
a project authorized under this section until the project has been approved by the governor.
deleted text end

Sec. 19.

Minnesota Statutes 2016, 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.

Sec. 20.

Minnesota Statutes 2016, 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:

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

(5) local public works projects under section 298.227, paragraph (c).

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 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 new text begin in compliance with the requirements for expenditures under section 298.22.
new 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

Subd. 3.

Appropriation.

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.

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

Sec. 21.

Minnesota Statutes 2016, 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. 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 deleted text begin by the board deleted text end new text begin under the requirements
for expenditures under section 298.22 new text end , the funds must be deposited in the Taconite
Environmental Protection Fund under sections 298.222 to 298.225. deleted text begin If a producer uses money
which has been released from the fund prior to May 26, 2007 to procure haulage trucks,
mobile equipment, or mining shovels, and the producer removes the piece of equipment
from the taconite tax relief area defined in section 273.134 within ten years from the date
of receipt of the money from the fund, a portion of the money granted from the fund must
be repaid to the taconite economic development fund. The portion of the money to be repaid
is 100 percent of the grant if the equipment is removed from the taconite tax relief area
within 12 months after receipt of the money from the fund, declining by ten percent for
each of the subsequent nine years during which the equipment remains within the taconite
tax relief area. deleted text end If a taconite production facility is sold after operations at the facility had
ceased, any money remaining in the fund for the former producer may be released to the
purchaser of the facility on the terms otherwise applicable to the former producer under this
section. If a producer fails to provide matching funds for a proposed expenditure within six
months after the commissioner approves release of the funds, the funds are available for
release to another producer in proportion to the distribution provided and under the conditions
of this section. Any portion of the fund which is not released by the commissioner within
one year of its deposit in the fund shall be divided between the taconite environmental
protection fund created in section 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.

deleted text begin (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed under
paragraph (a), may be used for a loan or grant for the cost of providing for a value-added
wood product facility located in the taconite tax relief area and in a county that contains a
city of the first class. This amount must be deducted from the distribution under paragraph
(a) for which a matching expenditure by the producer is not required. The granting of the
loan or grant is subject to approval by the board. If the money is provided as a loan, interest
must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii)
Repayments of the loan and interest, if any, must be deposited in the taconite environment
protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this
paragraph by July 1, 2012, the amount that had been made available for the loan under this
paragraph must be transferred to the taconite environment protection fund under sections
298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section
that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a
pro rata basis.
deleted text end

deleted text begin (c) Repayment or transfer of money to the taconite environmental protection fund under
paragraph (b), item (ii), must be allocated by the Iron Range resources and rehabilitation
Board for public works projects in house legislative districts in the same proportion as
taxable tonnage of production in 2007 in each house legislative district, for distribution in
2008, bears to total taxable tonnage of production in 2007, for distribution in 2008.
Notwithstanding any other law to the contrary, expenditures under this paragraph do not
require approval by the governor. For purposes of this paragraph, "house legislative districts"
means the legislative districts in existence on May 15, 2009.
deleted text end

Sec. 22.

Minnesota Statutes 2016, 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 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 new text begin and in compliance with the requirements for expenditures under section 298.22 new text end . deleted text begin
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.
deleted text end

Sec. 23.

Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:

Subd. 7a.

Iron Range school consolidation and cooperatively operated school account.

(a) The following amounts must be allocated to the Iron Range resources and rehabilitation deleted text begin
Board deleted text end new text begin account new 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.

(b) 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 new text begin , after consultation with the commission new 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.

(c) 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.

(d) No expenditure under this section shall be made unless deleted text begin approved by seven members
of the Iron Range Resources and Rehabilitation Board deleted text end new text begin the commissioner has complied with
the requirements for expenditures under section 298.22 new text end .

Sec. 24.

Minnesota Statutes 2016, 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 .

Sec. 25.

Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:

Subd. 9d.

Iron Range higher education account.

Five cents per taxable ton must be
deleted text begin allocated to the Iron Range Resources and Rehabilitation Board to be deleted text end 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,
and the new text begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end new text begin , after complying
with all the requirements for expenditures under section 298.22, new text end must approve all
expenditures from the account.

Sec. 26.

Minnesota Statutes 2016, 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 new text begin , new text end 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 new text begin Minnesota Statutes 1978, new text end 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 new text begin , new text end in calendar year 1977.

Sec. 27.

Minnesota Statutes 2016, 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 deleted text begin upon approval by the board deleted text end new text begin , after consultation with the commission 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.

Sec. 28.

Minnesota Statutes 2016, section 298.296, is amended to read:

298.296 OPERATION OF FUND.

Subdivision 1.

Project approval.

The deleted text begin board and deleted text end commissioner deleted text begin 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 deleted text end new text begin must comply with the requirements for expenditures under section
298.22 new text end . deleted text begin These deleted text end Projects shall be consistent with the priorities established in section 298.292
and shall not be deleted text begin approved by the board unless it deleted text end new text begin proposed by the commissioner unless the
commissioner new text end finds that:

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

(b) the prospective benefits of the expenditure exceed the anticipated costs; and

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

deleted text begin 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) Additionally, deleted text begin upon recommendation by the board, deleted text end new text begin the commissioner, after consulting
the commission, may choose to make new text end up to $13,000,000 from the corpus of the trust deleted text begin may
be made deleted text end 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) Additionally, 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. deleted text begin Funds deleted text end new text begin The commissioner new text end may deleted text begin be expended deleted text end new text begin expend
funds new text end for projects under this paragraph only if deleted text begin the project deleted text end :

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

(2) deleted text begin is approved by two-thirds of all of the members of the board deleted text end new text begin the commissioner
complied with the requirements for expenditures under section 298.22 new text end .

No money made available under this paragraph or paragraph (d) can be used for
administrative or operating expenses of the new text begin Department 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.

(d) deleted text begin Upon recommendation by a unanimous vote of all members of the board, deleted text end new text begin The
commissioner may spend new text end amounts in addition to those authorized under paragraphs (a), (b),
and (c) deleted text begin may be expended deleted text end on projects described in section 298.292, subdivision 1 new text begin , if the
commissioner complies with the requirements for expenditures under section 298.22 new text end .

(e) Annual administrative costs, not including detailed engineering expenses for the
projects, shall not exceed five percent of the net interest, dividends, and earnings arising
from the trust in the preceding fiscal year.

(f) Principal and interest received in repayment of loans made pursuant to this section,
and earnings on other investments made under section 298.292, subdivision 2, clause (4),
shall be deposited in the state treasury and credited to the trust. These receipts are
appropriated to the board for the purposes of sections 298.291 to 298.298.

(g) Additionally, notwithstanding section 298.293, deleted text begin upon the approval of the board deleted text end new text begin if the
commissioner complies with the requirements for expenditures under section 298.22 new 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 deleted text begin and staff deleted text end of deleted text begin the deleted text end 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) deleted text begin The board may recommend that deleted text end new text begin If the
commissioner complies with the requirements for expenditures under section 298.22, the
commissioner may use new text end up to $7,500,000 from the corpus of the trust deleted text begin may be used deleted text end 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) Additionally, deleted text begin 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, after consultation with the commission, 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.

Sec. 29.

Minnesota Statutes 2016, 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, are
appropriated 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. 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 new text begin For all such projects, the
commissioner must comply with the requirements for expenditures under section 298.22 new text end .

(c) The deleted text begin board deleted text end new text begin commissioner, after consultation with the commission, 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.

(a) 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 deleted text begin be approved by the board, established
under section 298.22 deleted text end new text begin comply with the requirements for expenditures under section 298.22 new text end .

(b) All distributions received in 2009 and subsequent years are allocated for projects
under section 298.223, subdivision 1.

Sec. 30.

Minnesota Statutes 2016, section 298.297, is amended to read:

298.297 ADVISORY COMMITTEES.

Before submission of a project to the deleted text begin board deleted text end new text begin commission new text end , the commissioner of Iron Range
resources and rehabilitation shall appoint a technical advisory committee consisting of one
or more persons who are knowledgeable in areas related to the objectives of the proposal.
Members of the committees shall be compensated as provided in section 15.059, subdivision
3. The deleted text begin board shall not act deleted text end new text begin commission shall not make recommendations new text end 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.

Sec. 31. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213; and 298.298, new text end new text begin are
repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-3248

298.22 IRON RANGE RESOURCES AND REHABILITATION.

Subd. 8.

Spending priority.

In making or approving any expenditures on programs or projects, the commissioner and the board shall give the highest priority to programs and projects that target relief to those areas of the taconite assistance area as defined in section 273.1341, that have the largest percentages of job losses and population losses directly attributable to the economic downturn in the taconite industry since the 1980s. The commissioner and the board shall compare the 1980 population and employment figures with the 2000 population and employment figures, and shall specifically consider the job losses in 2000 and 2001 resulting from the closure of LTV Steel Mining Company, in making or approving expenditures consistent with this subdivision, as well as the areas of residence of persons who suffered job loss for which relief is to be targeted under this subdivision. The commissioner may lease, for a term not exceeding 50 years and upon the terms determined by the commissioner and approved by the board, surface and mineral interests owned or acquired by the state of Minnesota acting by and through the office of the commissioner of Iron Range resources and rehabilitation within those portions of the taconite assistance area affected by the closure of the LTV Steel Mining Company facility near Hoyt Lakes. The payments and royalties from these leases must be deposited into the fund established in section 298.292. This subdivision supersedes any other conflicting provisions of law and does not preclude the commissioner and the board from making expenditures for programs and projects in other areas.

298.2213 NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT FUND.

Subdivision 1.

Appropriation.

$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.

Subd. 2.

Purpose of expenditures.

The money appropriated in 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.

The money appropriated under 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 in 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.

Subd. 4.

Project approval.

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:

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

(2) the prospective benefits of the expenditure exceed the anticipated costs; and

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

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.

Subd. 5.

Advisory committees.

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

Subd. 6.

Use of repayments and earnings.

Principal and interest received in repayment of loans made under this section must be deposited in the state treasury and are appropriated to the board for the purposes of this section.

298.298 LONG-RANGE PLAN.

Consistent with the policy established in sections 298.291 to 298.298, the Iron Range Resources and Rehabilitation Board shall prepare and present to the governor and the legislature by December 31, 2006, 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. 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.