SF 1397

as introduced - 89th Legislature (2015 - 2016) Posted on 03/06/2015 08:39am

A bill for an act
relating to economic development; business subsidies; providing for payback
extensions; redirecting certain taconite deposits; amending Minnesota Statutes
2014, section 298.24, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 298.24, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin TEDF; deposits redirected. new text end

new text begin (a) For concentrates produced by a plant
subject to the reimbursement agreement, the provisions of sections 298.227 and 298.28,
subdivision 9a, do not apply to the plant's production. For purposes of this subdivision,
"reimbursement agreement" means the agreement defined in section 2, paragraph (a).
new text end

new text begin (b) All amounts not deposited in the taconite economic development fund as a
result of paragraph (a) must be deposited in the Douglas J. Johnson economic protection
trust fund created under section 298.292. Any amounts deposited under this paragraph
are a credit against and reduce any repayment obligation of the private parties under the
reimbursement agreement.
new text end

new text begin (c) The provisions of this subdivision expire effective for concentrates produced
after October 15, 2022.
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. 2. new text begin EXTENDED REPAYMENT OBLIGATIONS FOR CERTAIN BUSINESS
SUBSIDIES.
new text end

new text begin new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 116J.994, subdivisions 3, 4, 6, and
11, the commissioner shall extend to October 15, 2022, the completion date under the
reimbursement agreement dated September 9, 2008, for grants awarded under:
new text end

new text begin (1) Laws 2006, chapter 282, article 11, section 2, subdivision 6, as amended by
Laws 2008, chapter 179, section 69;
new text end

new text begin (2) Laws 2006, chapter 258, section 21, subdivision 14, as amended by Laws 2008,
chapter 179, section 66, and Laws 2010, chapter 189, section 52;
new text end

new text begin (3) Laws 2007, chapter 135, article 1, section 3, subdivision 2, paragraph (y); and
new text end

new text begin (4) Laws 2008, chapter 179, section 21, subdivision 9, as amended by Laws 2010,
chapter 189, section 57.
new text end

new text begin (b) For the purposes of this section, "agreement" means the reimbursement
agreement under paragraph (a).
new text end

new text begin (c) The private parties to the agreements in paragraph (a) have the repayment
obligations in this paragraph. By October 15, 2022:
new text end

new text begin (1) if the private parties have commenced and are actively engaged in construction
of a steel plant and forecast that the project will provide full-time equivalent jobs with an
aggregate annual payroll of at least $25,000,000 when the plant is active and operational,
then:
new text end

new text begin (i) the private parties to the agreement have no further repayment obligations under
the agreement; and
new text end

new text begin (ii) any funds deposited under Minnesota Statutes, section 298.24, subdivision 5,
paragraph (b), as a credit against and to reduce the repayment obligation of the private
parties under the reimbursement agreement must be returned to the private parties;
new text end

new text begin (2) if the private parties have commenced and are actively engaged in construction
of a facility to produce a value-added product other than steel and forecast that the
project will provide full-time equivalent jobs with an aggregate annual payroll of at least
$25,000,000 when the facility is active and operational, then the private parties to the
agreement must repay $22,000,000; or
new text end

new text begin (3) if the private parties have not complied with clause (1) or (2), the private parties
to the agreement must repay $65,900,000, except that if the private parties purchase
from the owners any of the property constructed or acquired with grant funds under the
agreement, the purchase price agreed to between the private parties and the owner and paid
by or on behalf of the private parties shall reduce the amount payable under this clause.
new text end

new text begin (d) Repayment amounts required under paragraph (c) are reduced by the amount of
revenue collected and deposited under Minnesota Statutes, section 298.24, subdivision 5.
new text end

new text begin (e) Amounts repaid under this section and Minnesota Statutes, section 298.24,
subdivision 5, must be deposited in the trust fund created under Minnesota Statutes,
sections 298.291 to 298.294.
new text end

new text begin (f) The commissioner must amend the agreement in accordance with this section.
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