SF 1394

2nd Engrossment - 90th Legislature (2017 - 2018) Posted on 03/16/2017 09:00am

A bill for an act
relating to Iron Range resources and rehabilitation; modifying duties of the
commissioner; amending Minnesota Statutes 2016, sections 15.38, subdivision 7;
116J.423, subdivision 2; 116J.424; 216B.161, subdivision 1; 276A.01, subdivisions
8, 17; 282.38, subdivision 1; 298.001, subdivision 8; 298.22, subdivisions 1, 1a,
5a, 6, 10, 11; 298.221; 298.2211, subdivision 3; 298.223, subdivisions 1, 2; 298.227;
298.28, subdivisions 7a, 9d; 298.292, subdivision 2; 298.296, subdivisions 1, 2,
4; 298.2961, subdivisions 2, 4; 298.46, subdivision 2; 477A.17; Laws 2010, chapter
216, section 58, as amended; repealing Minnesota Statutes 2016, sections 298.22,
subdivision 8; 298.2213, subdivisions 4, 5, 6; 298.298.

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

Section 1.

Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:

Subd. 7.

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

new text begin After seeking a
recommendation from the Iron Range Resources and Rehabilitation Board, new text end the new text begin commissioner
of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end may purchase insurance deleted text begin it considers deleted text end new text begin the
commissioner deems new text end necessary and appropriate to insure facilities operated by the board.

Sec. 2.

Minnesota Statutes 2016, section 116J.423, subdivision 2, is amended to read:

Subd. 2.

Use of fund.

The commissioner shall use money in the fund to make loans deleted text begin or deleted text end new text begin ,
including forgivable loans, new text end equity investments new text begin or grants for infrastructure new text end in mineral, steel,
or any other industry processing, production, manufacturing, or technology project that
would enhance the economic diversification and that is located within the taconite relief
tax area as defined under section 273.134. The commissioner must, prior to making any
loans or equity investments and after consultation with industry and public officials, develop
a strategy for making loans deleted text begin and deleted text end new text begin , new text end equity investments new text begin or grants for infrastructure new text end that assists
the taconite relief area in retaining and enhancing its economic competitiveness. Money in
the fund may also be used to pay for the costs of carrying out the commissioner's due
diligence duties under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 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 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 deleted text begin by the board deleted text end new text begin under this section new text end and the deleted text begin board at its sole discretion deleted text end new text begin commissioner,
after consultation with the Iron Range Resources and Rehabilitation Board, new text end shall new text begin have the
sole discretion to new text end decide what interest deleted text begin it deleted text end new text begin the board 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 new text end to make the match prior to disbursing money from the fund.

Sec. 4.

Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given them in this subdivision.

(b) "Area development rate" means a rate schedule established by a utility that provides
customers within an area development zone service under a base utility rate schedule, except
that charges may be reduced from the base rate as agreed upon by the utility and the customer
consistent with this section.

(c) "Area development zone" means a contiguous or noncontiguous area designated by
an authority or municipality for development or redevelopment and within which one of
the following conditions exists:

(1) obsolete buildings not suitable for improvement or conversion or other identified
hazards to the health, safety, and general well-being of the community;

(2) buildings in need of substantial rehabilitation or in substandard condition; or

(3) low values and damaged investments.

(d) "Authority" means a rural development financing authority established under sections
469.142 to 469.151; a housing and redevelopment authority established under sections
469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an
economic development authority established under sections 469.090 to 469.108; a
redevelopment agency as defined in sections 469.152 to 469.165; the new text begin commissioner of new text end Iron
Range resources and rehabilitation new text begin , acting after consultation with the new text end board established
under section 298.22; a municipality that is administering a development district created
under sections 469.124 to 469.133 or any special law; a municipality that undertakes a
project under sections 469.152 to 469.165, except a town located outside the metropolitan
area as defined in section 473.121, subdivision 2, or with a population of 5,000 persons or
less; or a municipality that exercises the powers of a port authority under any general or
special law.

(e) "Municipality" means a city, however organized, and, with respect to a project
undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008,
also includes any county.

Sec. 5.

Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:

Subd. 8.

Municipality.

"Municipality" means a city, town, or township located in whole
or part within the area. If a municipality is located partly within and partly without the area,
the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to
taxation or taxing jurisdiction within the municipality are to the property or portion thereof
that is located in that portion of the municipality within the area, except that the fiscal
capacity of the municipality must be computed upon the basis of the valuation and population
of the entire municipality. A municipality shall be excluded from the area if its municipal
comprehensive zoning and planning policies conscientiously exclude most
commercial-industrial development, for reasons other than preserving an agricultural use.
The new text begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end and the commissioner
of revenue shall jointly make this determination annually and shall notify those municipalities
that are ineligible to participate in the tax base sharing program provided in this chapter for
the following year. new text begin Before making the joint determination, the commissioner of Iron Range
resources and rehabilitation shall seek a recommendation from the Iron Range Resources
and Rehabilitation Board.
new text end

Sec. 6.

Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:

Subd. 17.

School fund allocation.

(a) "School fund allocation" means an amount up to
25 percent of the areawide levy certified by the new text begin commissioner of Iron Range resources and
rehabilitation, after seeking a recommendation from the new text end Iron Range Resources and
Rehabilitation Board new text begin , new text end to be used for the purposes of the Iron Range school consolidation
and cooperatively operated school account under section 298.28, subdivision 7a.

(b) The allocation under paragraph (a) shall only be made after the new text begin commissioner of
Iron Range resources and rehabilitation, after seeking a recommendation from the new text end Iron
Range Resources and Rehabilitation Board new text begin , new text end has certified by June 30 that the Iron Range
school consolidation and cooperatively operated account has insufficient funds to make
payments as authorized under section 298.28, subdivision 7a.

Sec. 7.

Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:

Subdivision 1.

Development.

In any county where the county board by proper resolution
sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or
section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation
deleted text begin with the approval of the deleted text end new text begin , after seeking a recommendation from the Iron Range Resources
and Rehabilitation new text end Board new text begin , new text end may upon request of the county board assist said county in carrying
out any project for the long range development of its forest resources through matching of
funds or otherwise.

Sec. 8.

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. 9.

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

Subdivision 1.

The Office of new text begin the new text end 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. new text begin The commissioner may expend amounts appropriated to the commissioner
or the board for projects after submitting the expenditure to the board for a recommendation
under subdivision 1a.
new text end

(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 new text begin . The agency
has the authority to reimburse any nongovernmental manager operating state-owned facilities
within the Giants Ridge Recreation Area for purchasing materials, supplies, equipment, or
other items used in the operations at such facilities new 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 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.

Sec. 10.

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

Subd. 1a.

Iron Range Resources and Rehabilitation Board.

The Iron Range Resources
and Rehabilitation Board consists of the state senators and representatives elected from state
senatorial or legislative districts in which one-third or more of the residents reside in 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 deleted text begin for approval deleted text end . new text begin The board shall recommend approval or disapproval
or modification of the expenditures and projects. new text end The expenses of the board shall be paid
by the state from the funds raised pursuant to this section. Members of the board may be
reimbursed for expenses in the manner provided in sections 3.099, subdivision 1, and 3.101,
and may receive per diem payments during the interims between legislative sessions in the
manner provided in section 3.099, subdivision 1.

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

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 deleted text end new text begin after requesting a
recommendation from new text end the board, 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 deleted text end new text begin after requesting a recommendation from new text end the board, 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 deleted text end new text begin after the commissioner has sought a recommendation from new text end the
board, to purchase, manage, administer, convey interests in, and improve the forest lands.
deleted text begin With approval by deleted text end new text begin After the commissioner has sought a recommendation from new text end the board,
money in the Iron Range Miners' Memorial Forest account may be transferred into the
corpus of the Douglas J. Johnson economic protection trust fund established under sections
298.291 to 298.294. 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.

Sec. 12.

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

Subd. 6.

Private entity participation.

new text begin After seeking a recommendation from new text end the board new text begin ,
the commissioner 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 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.

Sec. 13.

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

Subd. 10.

Sale or privatization of functions.

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

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 Iron Range Resources and Rehabilitation Board new text begin for approval new text end . After the
budget is approved by the board and the governor, the commissioner may spend money in
accordance with the approved budget.

Sec. 15.

Minnesota Statutes 2016, 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 Board account in the special revenue fund and are hereby appropriated for
the purposes of section 298.22.

(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner
of the Iron Range Resources and Rehabilitation Board 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 Board account that is created
within the state enterprise fund. All funds deposited in the enterprise fund account are
appropriated to the commissioner to be expended, deleted text begin subject to approval by deleted text end new text begin after seeking a
recommendation from new text end the board, as follows:

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

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

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

Sec. 16.

Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:

Subd. 3.

Project approval.

All projects authorized by this section shall be submitted
by the commissioner to the Iron Range Resources and Rehabilitation Board for deleted text begin approval
by deleted text end new text begin a recommendation from new text end the board. Prior to the commencement of a project involving
the exercise by the commissioner of any authority of sections 469.174 to 469.179, the
governing body of each municipality in which any part of the project is located and the
county board of any county containing portions of the project not located in an incorporated
area shall by majority vote approve or disapprove the project. 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.

Sec. 17.

Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read:

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 Iron Range Resources and Rehabilitation
Board 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
new text begin commissioner after seeking a recommendation of the projects from the new text end board, 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).

Sec. 18.

Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:

Subd. 2.

Administration.

(a) The taconite area environmental protection fund shall be
administered by the commissioner of the Iron Range Resources and Rehabilitation Board.
deleted text begin 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

(b) deleted text begin 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. deleted text end new text begin
The commissioner must seek review of the projects by the board. new text end Funds for a project may
be expended only deleted text begin 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 new text begin after seeking review of the projects by the board new text end .

Sec. 19.

Minnesota Statutes 2016, section 298.227, is amended to read:

298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

deleted text begin (a) deleted text end An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
Iron Range Resources and Rehabilitation Board in a separate 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 by the new text begin commissioner, after seeking a recommendation
from the new text end board, 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. 20.

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
Board 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 new text begin may be approved as ongoing annual expenditures
and new text end 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 Iron Range resources and rehabilitation after the
commissioner of Iron Range resources and rehabilitation has sought review of the
expenditures by the new text end Iron Range Resources and Rehabilitation Board. 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 approved by deleted text begin seven members
of deleted text end new text begin the commissioner of Iron Range resources and rehabilitation after seeking review of the
expenditure from new text end the Iron Range Resources and Rehabilitation Board.

Sec. 21.

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
allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron
Range higher education account that is hereby created, to be used for higher education
programs conducted at educational institutions in the taconite assistance area defined in
section 273.1341. The Iron Range Higher Education committee under section 298.2214,
and the deleted text begin Iron Range Resources and Rehabilitation Board deleted text end new text begin commissioner of Iron Range
resources and rehabilitation new text end must approve all expenditures from the account new text begin , after seeking
review and recommendation of the expenditures from the Iron Range Resources and
Rehabilitation Board new text end .

Sec. 22.

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 deleted text end new text begin after seeking a recommendation from new text end the board. The net
proceeds must be deposited in the trust fund for the purposes and uses of this section.

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

Sec. 23.

Minnesota Statutes 2016, section 298.296, subdivision 1, is amended to read:

Subdivision 1.

Project approval.

new text begin (a) new text end The new text begin commissioner of Iron Range resources and
rehabilitation, after seeking a recommendation from the new text end board deleted text begin and commissioner shall by
August 1 of each year prepare a list of projects to be funded deleted text end new text begin , may expend funds for projects
to be funded new text end from the Douglas J. Johnson economic protection trust with necessary
supporting information including description of the projects, plans, and cost estimates. These
projects shall be consistent with the priorities established in section 298.292 and shall not
be approved by the deleted text begin board deleted text end new text begin commissioner new text end unless deleted text begin it deleted text end new text begin the commissioner, after seeking a
recommendation from the board, new text end finds that:

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

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

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

new text begin (b) new text end Each project must be approved by deleted text begin over one-half of all of the members of the board
and deleted text end the commissioner of Iron Range resources and rehabilitation new text begin after seeking a
recommendation from the board for the project new text end . deleted text begin The list of projects shall be submitted to
the governor, who shall, by November 15 of each year, approve or disapprove, or return
for further consideration, each project. The money for a project may be expended only upon
approval of the project by the governor. The board may submit supplemental projects for
approval at any time.
deleted text end

Sec. 24.

Minnesota Statutes 2016, section 298.296, subdivision 2, is amended to read:

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, upon recommendation by the new text begin commissioner after seeking a
recommendation from the new text end board, up to $13,000,000 from the corpus of the trust may be
made available for use as provided in subdivision 4, and up to $10,000,000 from the corpus
of the trust may be made available for use as provided in section 298.2961.

(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. Funds may be expended for projects under this
paragraph only if the project:

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

(2) is approved by deleted text begin two-thirds of all of the members of deleted text end new text begin the commissioner after seeking
a recommendation from new text end the board.

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

(d) Upon recommendation by deleted text begin a unanimous vote of all members deleted text end new text begin the commissioner after
seeking a recommendation new text end 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.

(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, upon the approval of new text begin the commissioner
of Iron Range resources and rehabilitation, after seeking a recommendation from new text end the board,
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).

Sec. 25.

Minnesota Statutes 2016, section 298.296, subdivision 4, is amended to read:

Subd. 4.

Temporary loan authority.

(a) new text begin After seeking a recommendation from new text end the
board new text begin , the commissioner of Iron Range resources and rehabilitation new text end may deleted text begin recommend that deleted text end new text begin
use new text end up to $7,500,000 from the corpus of the trust may be deleted text begin 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, the deleted text begin board deleted text end new text begin commissioner of Iron Range resources and rehabilitation new text end
must reserve the first $2,000,000 of the net interest, dividends, and earnings arising from
the investment of the trust after June 30, 1996, to be used 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, the deleted text begin board deleted text end new text begin commissioner new text end may recommend that 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 new text begin commissioner of Iron Range resources and rehabilitation, after seeking a
recommendation from the new text end board new text begin , new text end may require that deleted text begin it deleted text end new text begin the board new text end receive an equity percentage
in any project to which it contributes under this section.

Sec. 26.

Minnesota Statutes 2016, section 298.2961, subdivision 2, is amended to read:

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 deleted text end new text begin Before the commissioner
may propose a project, the commissioner must seek a recommendation from new text end the board. The
money for a project may be spent only upon approval of the project by the governor. The
deleted text begin board deleted text end new text begin commissioner new text end may submit new text begin a new text end supplemental deleted text begin projects deleted text end new text begin project new text end for approval at any time new text begin
after seeking a recommendation for the project from the board 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 board new text end receive an equity percentage
in any project to which it contributes under this section.

Sec. 27.

Minnesota Statutes 2016, section 298.2961, subdivision 4, is amended to read:

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 new text begin first new text end be approved by the new text begin commissioner
after seeking a recommendation from the new text end board, established under section 298.22.

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

Sec. 28.

Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:

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. new text begin
The commissioner of Iron Range resources and rehabilitation may grant the authority to
petition after seeking a recommendation from the Iron Range Resources and Rehabilitation
Board.
new text end

Sec. 29.

Minnesota Statutes 2016, section 477A.17, is amended to read:

477A.17 LAKE VERMILION-SOUDAN UNDERGROUND MINE STATE PARK;
ANNUAL PAYMENTS.

(a) In lieu of the payment amount provided under section 477A.12, subdivision 1, clause
(1), the county shall receive an annual payment for state-owned land within the boundary
of Lake Vermilion-Soudan Underground Mine State Park, established in section 85.012,
subdivision 38a, equal to 1.5 percent of the appraised value of the state-owned land.

(b) For the purposes of this section, the appraised value of the land acquired for Lake
Vermilion-Soudan Underground Mine State Park for the first five years after acquisition
shall be the purchase price of the land, plus the value of any portion of the land that is
acquired by donation. Thereafter, the appraised value of the state-owned land shall be as
determined under section 477A.12, subdivision 3 new text begin , except that the appraised value of the
state-owned land within the park shall not be reduced below the 2010 appraised value of
the land new text end .

(c) The annual payments under this section shall be distributed to the taxing jurisdictions
containing the property as follows: one-third to the school districts; one-third to the town;
and one-third to the county. The payment to school districts is not a county apportionment
under section 127A.34 and is not subject to aid recapture. Each of those taxing jurisdictions
may use the payments for their general purposes.

(d) Except as provided in this section, the payments shall be made as provided in sections
477A.11 to 477A.13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2017.
new text end

Sec. 30.

Laws 2010, chapter 216, section 58, as amended by Laws 2010, chapter 347,
article 7, section 1, and Laws 2010, chapter 389, article 7, section 20, is amended to read:

Sec. 58. 2010 DISTRIBUTIONS ONLY.

For distributions in 2010 only, a special fund is established to receive the sum of the
following amounts that otherwise would be allocated under Minnesota Statutes, 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:

(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;

(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;

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

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

(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;

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

(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;

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

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

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

(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;

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

(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;

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

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

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

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

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

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

(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;

(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;

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

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

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

(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;

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

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

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

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

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

(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 deleted text begin ten deleted text end new text begin five new text end
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 Minnesota
Statutes, section 298.223;

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

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

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

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

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

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

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

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

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

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

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

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

(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;

(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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 31. new text begin CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED
TACONITE TAX PROCEEDS.
new text end

new text begin The commissioner of Iron Range Resources and Rehabilitation may use any unspent
amounts allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause
(19), remaining as of May 22, 2016, for the specific purposes identified in that section.
Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any
other law to the contrary, interest accrued on this amount shall also be distributed to the
recipient. Amounts under this section are available until expended and do not lapse or cancel
under Minnesota Statutes, section 16A.28.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from May 22, 2016.
new text end

Sec. 32. new text begin IRON RANGE RESOURCES AND REHABILITATION BOARD; EARLY
SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
new text end

new text begin (a) "Commissioner" as used in this section means the commissioner of the Iron Range
Resources and Rehabilitation Board unless otherwise specified.
new text end

new text begin (b) Notwithstanding any law to the contrary, the commissioner, in consultation with the
commissioner of management and budget, shall offer a targeted early separation incentive
program for employees of the commissioner who have attained the age of 60 years or who
have received credit for at least 30 years of allowable service under the provisions of
Minnesota Statutes, chapter 352. The commissioner shall also offer a targeted separation
incentive program for employees of the commissioner whose positions are in support of
operations at Giants Ridge and will be eliminated if the agency no longer directly manages
Giants Ridge operations.
new text end

new text begin (c) The early separation incentive program may include one or more of the following:
new text end

new text begin (1) employer-paid postseparation health, medical, and dental insurance until age 65; and
new text end

new text begin (2) cash incentives that may, but are not required to be, used to purchase additional years
of service credit through the Minnesota State Retirement System, to the extent that the
purchases are otherwise authorized by law.
new text end

new text begin (d) The commissioner shall establish eligibility requirements for employees to receive
an incentive.
new text end

new text begin (e) The commissioner, consistent with the established program provisions under paragraph
(b), and with the eligibility requirements under paragraph (f), may designate specific
programs or employees as eligible to be offered the incentive program.
new text end

new text begin (f) Acceptance of the offered incentive must be voluntary on the part of the employee
and must be in writing. The incentive may only be offered at the sole discretion of the
commissioner.
new text end

new text begin (g) The cost of the incentive is payable solely by funds made available to the
commissioner by law, but only on prior approval of the expenditures by the commissioner,
after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.
new text end

new text begin (h) Unilateral implementation of this section by the commissioner is not an unfair labor
practice under Minnesota Statutes, chapter 179A.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. This
section is repealed July 30, 2019.
new text end

Sec. 33. new text begin APPROPRIATION CANCELLATION.
new text end

new text begin All unspent funds, estimated to be $7,100,000, for a grant or forgivable loan to Hoyt
Lakes pursuant to Laws 2014, chapter 312, article 2, section 2, subdivision 6, are canceled
to the Minnesota 21st century fund on June 1, 2017.
new text end

Sec. 34. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall identify and propose necessary changes to Minnesota Statutes
and Minnesota Rules that are consistent with the goals of this act to (i) transfer discretionary
approval authority for all expenditures and projects from the Iron Range Resources and
Rehabilitation Board to the commissioner of Iron Range resources and rehabilitation, and
(ii) provide that the commissioner must, in good faith, seek the review and recommendation
of the board, as required, before exercising approval authority. The revisor shall submit the
proposal, in a form ready for introduction, during the 2018 regular legislative session to the
chairs and ranking minority members of the senate and house of representatives committees
with jurisdiction over taxes.
new text end

Sec. 35. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213, subdivisions 4, 5,
and 6; and 298.298, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: S1394-2

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.

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.