Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

SF 2247

as introduced - 88th Legislature (2013 - 2014) Posted on 03/04/2014 09:37am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18
1.19 1.20 1.21 1.22 1.23
1.24
1.25 1.26 1.27 1.28 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 3.1 3.2
3.3
3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13
4.14 4.15
4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28
4.29 4.30 4.31 4.32 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26
5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33
6.34 6.35 7.1 7.2 7.3 7.4 7.5
7.6 7.7
7.8 7.9 7.10 7.11 7.12
7.13 7.14
7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24
7.25 7.26
7.27 7.28 7.29 7.30 7.31 7.32 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8
8.9 8.10
8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25
8.26
8.27 8.28 8.29 8.30 8.31 8.32 8.33 9.1 9.2 9.3
9.4
9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35
10.1 10.2
10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26
10.27 10.28
10.29 10.30 10.31 10.32 10.33 10.34 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35 11.36 12.1 12.2 12.3 12.4
12.5
12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26
12.27
12.28 12.29 12.30 12.31 12.32 12.33 13.1 13.2
13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11
13.12 13.13

A bill for an act
relating to education finance; taxation; minerals; encouraging cooperatively
authorized secondary programs; expanding cooperation aid; imposing an excise
tax on royalties; allowing an income and corporate franchise tax credit; increasing
the taconite production tax rate; modifying the distribution of production taxes;
providing security for payment of certain school bonds; authorizing uses of the
Douglas J. Johnson economic protection trust fund; establishing a trust account
to finance school facilities on the Iron Range; authorizing the sale and issuance of
state bonds; appropriating money; amending Minnesota Statutes 2012, sections
123A.442, by adding a subdivision; 123A.485; 123A.64; 290.01, by adding a
subdivision; 290.06, by adding a subdivision; 290.62; 290.923, by adding a
subdivision; 298.28, subdivision 11, by adding a subdivision; Minnesota Statutes
2013 Supplement, sections 123B.53, subdivision 1; 126C.48, subdivision 8;
290.10, subdivision 1; 298.292, subdivision 2; Laws 2013, chapter 116, article 1,
section 58, subdivision 5; proposing coding for new law in Minnesota Statutes,
chapters 123A; 290; 298; repealing Minnesota Statutes 2012, section 290.923,
subdivision 1.

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

Section 1.

Minnesota Statutes 2012, section 123A.442, is amended by adding a
subdivision to read:


new text begin Subd. 4. new text end

new text begin Cooperatively operated secondary facilities. new text end

new text begin A school district or
cooperative entity operating a cooperative secondary program that has been approved by
the commissioner under section 123A.482 is eligible for a cooperative facilities grant.
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 [123A.482] JOINT POWERS COOPERATIVE FACILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Schools may be jointly operated. new text end

new text begin Two or more school districts may
agree to jointly operate a secondary facility. The districts may choose to operate the
facility according to a joint powers agreement under section 123A.78 or 471.59.
new text end

new text begin Subd. 2. new text end

new text begin Expanded program offerings. new text end

new text begin A jointly operated secondary program
seeking funding under section 123A.485 must demonstrate to the commissioner's
satisfaction that the jointly operated program provides enhanced learning opportunities and
broader curriculum offerings to the students attending that program. The commissioner
must approve or disapprove a cooperative secondary program within 60 days of receipt of
an application.
new text end

new text begin Subd. 3. new text end

new text begin Revenue. new text end

new text begin An approved program that is jointly operated under this section
is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections
123A.44 to 123A.446.
new text end

new text begin Subd. 4. new text end

new text begin Duty to maintain elementary and secondary schools met. new text end

new text begin A school
district operating a joint facility under this section meets the requirements of section
123A.64.
new text end

new text begin Subd. 5. new text end

new text begin Estimated market value limit exclusion. new text end

new text begin Bonds for a cooperative facility
operated under this section issued by a member school district are not subject to the net
debt limit under section 475.53, subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Allocation of levy authority for joint facility. new text end

new text begin For purposes of determining
each member district's school levy, a jointly operated secondary program may allocate
program costs to each member district according to the joint powers agreement and each
member district may include those costs in its tax levy. The joint powers agreement may
choose to allocate costs on any basis adopted as part of the joint powers agreement.
new text end

new text begin Subd. 7. new text end

new text begin Effect of consolidation. new text end

new text begin The joint powers agreement may allow member
school districts that choose to consolidate to continue to certify levies separately based on
each component district's characteristics.
new text end

new text begin Subd. 8. new text end

new text begin Bonds. new text end

new text begin A joint powers district formed under this section may issue bonds
according to section 123A.78 or its member districts may issue bonds individually after
complying with this subdivision. The joint powers board must submit the project for
review and comment under section 123B.71. The joint powers board must hold a hearing
on the proposal. If the bonds are not issued under section 123A.78, each member district
of the joint powers district must submit the question of authorizing borrowing of funds for
the project to the voters of the district at a special election. The question submitted shall
state the total amount of funding needed from that district. The member district may issue
the bonds according to chapter 475 and certify the levy required by section 475.61 only if
a majority of those voting on the question in that district vote in the affirmative and only
after the board has adopted a resolution pledging the full faith and credit of that unit. The
resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy
shortages that, together with other funds available, would allow the member school board
to pay the principal and interest on the obligations. The clerk of the joint powers board
must certify the vote of any bond elections to the commissioner.
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. 3.

Minnesota Statutes 2012, section 123A.485, is amended to read:


123A.485 CONSOLIDATION TRANSITION deleted text beginREVENUEdeleted text endnew text begin AIDnew text end.

Subdivision 1.

Eligibility and use.

A district that new text beginoperates a cooperative facility
under section 123A.482 or that
new text endhas been reorganized after June 30, 1994, under section
123A.48 is eligible for consolidation transition deleted text beginrevenue. Revenue is equal to the sum of
deleted text end aid deleted text beginunder subdivision 2 and levy under subdivision 3deleted text end. Consolidation transition deleted text beginrevenue
deleted text endnew text begin aidnew text end may only be used according to this section. Revenue must be used for the following
purposes and may be distributed among these purposes at the discretion of the districtnew text begin or
the governing board of the cooperative facility
new text end:

(1) to offer early retirement incentives as provided by section 123A.48, subdivision
23
;

(2) to reduce operating debt as defined in section 123B.82;

(3) to enhance learning opportunities for students in the reorganized district; deleted text beginand
deleted text end

(4) new text beginto repay building debt; or
new text end

new text begin (5) new text endfor other costs incurred in the reorganization.

Revenue received and utilized under clause (3) or deleted text begin(4)deleted text endnew text begin (5)new text end may be expended for
operating, facilities, and/or equipment.

Subd. 2.

Aid.

deleted text begin(a)deleted text end Consolidation transition aid is equal to deleted text begin$200deleted text endnew text begin $300new text end times the
number of deleted text beginresidentdeleted text endnew text begin adjustednew text end pupil units in the deleted text beginnewly createddeleted text endnew text begin cooperative facility under
section 123A.482 or the consolidated
new text end district deleted text beginin the year of consolidation and $100 times
the number of resident pupil units in the first year following the year of consolidation
deleted text endnew text begin under
section 123A.48
new text end. The number of pupil units used to calculate aid deleted text beginin either year shall not
exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts consolidating
July 1, 1995, and thereafter
deleted text endnew text begin under this section must not exceed 2,000. A district may receive
aid under this section for not more than five years except as provided in subdivision 4
new text end.

deleted text begin (b) If the total appropriation for consolidation transition aid for any fiscal year, plus
any amount transferred under section 127A.41, subdivision 8, is insufficient to pay all
districts the full amount of aid earned, the department must first pay the districts in the first
year following the year of consolidation the full amount of aid earned and distribute any
remaining funds to the newly created districts in the first year of consolidation.
deleted text end

Subd. 3.

Levy.

If the aid available in subdivision 2 is insufficient to cover the costs
of the district under section 123A.48, subdivision 23, the district may levy the difference
over a period of time not to exceed three years.

Subd. 4.

New districts.

If a district new text beginenters into a cooperative secondary facilities
program or
new text endconsolidates with another district that has received aid under section 123A.39,
subdivision 3
, or 123A.485 for a combination or consolidation taking effect within
six years of the effective date of the new consolidationnew text begin or the start of the cooperative
secondary facilities program
new text end, only the pupil units in the district or districts not previously
new text begin cooperating ornew text end reorganized must be counted for aid purposes under subdivision 2. If
two or more districts consolidate and all districts received aid under subdivision 2 for a
consolidation taking effect within six years of the effective date of the new consolidation,
only one quarter of the pupil units in the newly created district must be used to determine
aid under subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for state aid for fiscal year 2015
and later.
new text end

Sec. 4.

Minnesota Statutes 2012, section 123A.64, is amended to read:


123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY
SCHOOLS.

Each district must maintain classified elementary and secondary schools, grades 1
through 12, unless the district is exempt according to section 123A.61 or 123A.62, has
made an agreement with another district or districts as provided in sections 123A.30,
123A.32, or sections 123A.35 to 123A.43, or 123A.17, subdivision 7, deleted text beginordeleted text end has received a
grant under sections 123A.441 to 123A.446new text begin, or has formed a cooperative under section
123A.482
new text end. A district that has an agreement according to sections 123A.35 to 123A.43 or
123A.32 must operate a school with the number of grades required by those sections. A
district that has an agreement according to section 123A.30 or 123A.17, subdivision 7, or
has received a grant under sections 123A.441 to 123A.446 must operate a school for the
grades not included in the agreement, but not fewer than three grades.

Sec. 5.

Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is
amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible debt service
revenue of a district is defined as follows:

(1) the amount needed to produce between five and six percent in excess of the
amount needed to meet when due the principal and interest payments on the obligations
of the district for eligible projects according to subdivision 2, including the amounts
necessary for repayment of energy loans according to section 216C.37 or sections 298.292
to 298.298, debt service loans and capital loans, lease purchase payments under section
126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision
5
, paragraph (a), minus

(2) the amount of debt service excess levy reduction for that school year calculated
according to the procedure established by the commissioner.

(b) The obligations in this paragraph are excluded from eligible debt service revenue:

(1) obligations under section 123B.61;

(2) the part of debt service principal and interest paid from the taconite environmental
protection fund or Douglas J. Johnson economic protection trustnew text begin, excluding the portion
of taconite payments from the school construction and improvement trust account under
section 298.301, including any payments made from the Douglas J. Johnson economic
protection trust fund under section 298.292, subdivision 2, clause (6)
new text end;

(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
amended by Laws 1992, chapter 499, article 5, section 24; and

(4) obligations under section 123B.62.

(c) For purposes of this section, if a preexisting school district reorganized under
sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
service equalization aid must be computed separately for each of the preexisting districts.

(d) For purposes of this section, the adjusted net tax capacity determined according
to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, subdivision 64.

Sec. 6.

Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is
amended to read:


Subd. 8.

Taconite payment and other reductions.

(1) Reductions in levies
pursuant to subdivision 1 must be made prior to the reductions in clause (2).

(2) Notwithstanding any other law to the contrary, districts that have revenue
pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed
under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34
to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon
severed mineral values must reduce the levies authorized by this chapter and chapters
120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
previous year's revenue specified under this clause and the amount attributable to the same
production year distributed to the cities and townships within the school district under
section 298.28, subdivision 2, paragraph (c).

(3) The amount of any voter approved referendum, facilities down payment, and
debt levies shall not be reduced by more than 50 percent under this subdivisionnew text begin, except
that payments under section 298.301 may reduce the debt service levy by more than 50
percent
new text end. In administering this paragraph, the commissioner shall first reduce the nonvoter
approved levies of a district; then, if any payments, severed mineral value tax revenue or
recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter
approved referendum levies authorized under section 126C.17; then, if any payments,
severed mineral value tax revenue or recognized revenue under paragraph (2) remains, the
commissioner shall reduce any voter approved facilities down payment levies authorized
under section 123B.63 and then, if any payments, severed mineral value tax revenue or
recognized revenue under paragraph (2) remains, the commissioner shall reduce any
voter approved debt levies.

(4) Before computing the reduction pursuant to this subdivision of the health and
safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner
shall ascertain from each affected school district the amount it proposes to levy under
each section or subdivision. The reduction shall be computed on the basis of the amount
so ascertained.

(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
limitation in paragraph (3), an amount equal to the excess must be distributed from the
school district's distribution under sections 298.225, 298.28, and 477A.15 in the following
year to the cities and townships within the school district in the proportion that their
taxable net tax capacity within the school district bears to the taxable net tax capacity of
the school district for property taxes payable in the year prior to distribution. No city or
township shall receive a distribution greater than its levy for taxes payable in the year prior
to distribution. The commissioner of revenue shall certify the distributions of cities and
towns under this paragraph to the county auditor by September 30 of the year preceding
distribution. The county auditor shall reduce the proposed and final levies of cities and
towns receiving distributions by the amount of their distribution. Distributions to the cities
and towns shall be made at the times provided under section 298.27.

Sec. 7.

Minnesota Statutes 2012, section 290.01, is amended by adding a subdivision
to read:


new text begin Subd. 33. new text end

new text begin Royalty. new text end

new text begin "Royalty" means the amount in money or value of property
received by any person having any right, title, or interest in any tract of land in this state
for permission to explore, mine, take out, and remove metals, minerals, or ore, as those
terms are used in chapter 298, but excluding "aggregate material" as defined in section
298.75, subdivision 1, paragraph (a), clause (1).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 8.

Minnesota Statutes 2012, section 290.06, is amended by adding a subdivision
to read:


new text begin Subd. 37. new text end

new text begin Credit; royalty excise tax. new text end

new text begin A credit is allowed against the taxes imposed
by this section, equal to the amount of the royalty excise tax paid under section 290.0923
for the taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 9.

new text begin [290.0923] EXCISE TAX; MINERAL ROYALTIES.
new text end

new text begin (a) In addition to the taxes otherwise imposed by this chapter, an excise tax equal to
5.5 percent of the gross amount of royalties received or accrued during the taxable year
is imposed on individuals, trusts, estates, and corporations, subject to tax under section
290.06, subdivision 1.
new text end

new text begin (b) For royalties paid to a partnership, the tax is imposed on each partner in
proportion to the partner's distributive share of the income under section 704 of the
Internal Revenue Code. For royalties paid to an S corporation, the tax is imposed on
each shareholder in proportion to the shareholder's distributive share of income of the
corporation under section 1366 of the Internal Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for royalties received or accrued in
taxable years beginning after December 31, 2013.
new text end

Sec. 10.

Minnesota Statutes 2013 Supplement, section 290.10, subdivision 1, is
amended to read:


Subdivision 1.

Expenses, interest, and taxes.

In computing the net income of
a taxpayer no deduction shall in any case be allowed for expenses, interest and taxes
connected with or allocable against the production or receipt of all income not included in
the measure of the tax imposed by this chapter, except that for corporations engaged in the
business of mining or producing iron ore, the mining of which is subject to the occupation
tax imposed by section 298.01, subdivision 4, this shall not prevent the deduction of
expenses and other items to the extent that the expenses and other items are allowable
under this chapter and are not deductible, capitalizable, retainable in basis, or taken into
account by allowance or otherwise in computing the occupation tax and do not exceed the
amounts taken for federal income tax purposes for that year. Occupation taxes imposed
under chapter 298, royalty taxes imposed under deleted text beginchapter 299deleted text endnew text begin section 290.0923new text end, or depletion
expenses may not be deducted under this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2013.
new text end

Sec. 11.

Minnesota Statutes 2012, section 290.62, is amended to read:


290.62 DISTRIBUTION OF REVENUES.

new text begin (a) new text endAll revenues derived from the taxes, interest, penalties and charges under this
chapter shall, notwithstanding any other provisions of lawnew text begin except paragraph (b)new text end, be paid
into the state treasury and credited to the general fund, and be distributed as follows:

(1) There shall, notwithstanding any other provision of the law, be paid from this
general fund all refunds of taxes erroneously collected from taxpayers under this chapter
as provided herein;

(2) There is hereby appropriated to the persons entitled to payment herein, from
the fund or account in the state treasury to which the money was credited, an amount
sufficient to make the refund and payment.

new text begin (b) Notwithstanding paragraph (a), all of the revenues derived from the taxes, interest,
penalties, and charges imposed by section 290.0923, less the amount of any credits allowed
under section 290.06, subdivision 37, must be deposited in and credited to the Iron Range
school construction and improvement trust account established under section 298.301.
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. 12.

Minnesota Statutes 2012, section 290.923, is amended by adding a subdivision
to read:


new text begin Subd. 12. new text end

new text begin Royalty excise tax. new text end

new text begin The provisions of this section apply to each person
paying royalties subject to taxation under section 290.0923 to require deducting and
withholding the tax under that section from the royalty payments. The commissioner shall
provide appropriate tables and forms for the withholding so that the amounts withheld
approximate the tax as closely as possible, reflecting the liability that applies under section
290.0923, less the amount of any credits allowed under section 290.06, subdivision 37.
The provisions of subdivision 9 apply only to the extent that the payee is an entity exempt
under section 290.05.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014.
new text end

Sec. 13.

Minnesota Statutes 2012, section 298.28, is amended by adding a subdivision
to read:


new text begin Subd. 9e. new text end

new text begin School construction and improvement trust account. new text end

new text begin (a) The following
amounts must be allocated to the Iron Range Resources and Rehabilitation Board to be
deposited in the Iron Range school construction and improvement trust account under
section 298.301:
new text end

new text begin (1) the amount derived from the increase in the rate attributable to the percentage
change in the implicit price deflator in section 298.24, subdivision 1, paragraph (b), for
concentrates produced in 2014 as compared to 2013, effective for the 2015 distribution,
and the amount derived from the increase in the rate attributable to the percentage change
in the implicit price deflator for concentrates produced in 2014 as compared to 2015,
effective for the 2016 distribution and thereafter;
new text end

new text begin (2) $2,500,000 per year beginning with the 2015 distribution; and
new text end

new text begin (3) the amounts under paragraph (b).
new text end

new text begin (b) In each year subsequent to the year in which the following appropriations
terminate under their terms, an amount equal to the amount of the last year of the
terminating appropriation is appropriated from the same sources for use as provided
under paragraph (a), clause (3), to the Iron Range school construction and improvement
trust account:
new text end

new text begin (1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for
bonds of Independent School District No. 166, Cook County;
new text end

new text begin (2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
bonds of Independent School District No. 696, Ely;
new text end

new text begin (3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
bonds of Independent School District No. 706, Virginia:
new text end

new text begin (4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
bonds of Independent School District No. 2154, Eveleth-Gilbert;
new text end

new text begin (5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for
bonds of Independent School District No. 712, Mountain Iron-Buhl; and
new text end

new text begin (6) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of
Independent School District No. 2711, Mesabi East.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the distribution
in 2015.
new text end

Sec. 14.

Minnesota Statutes 2012, 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 fundnew text begin; $2,500,000 to the Iron
Range school construction and improvement trust account;
new text end and deleted text beginone-thirddeleted text endnew text begin the remaindernew text end 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 section 294.26 in calendar year 1977; provided, however, that the amount
distributed in 1981 to the unorganized territory number 2 of Lake County and the town
of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be
distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake
County and the towns of Beaver Bay and Stony River based on the miles of track of Erie
Mining Company in each taxing district.

(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board
the amounts it received in 1977 under section 298.22. The amount distributed under
this paragraph shall be expended within or for the benefit of the taconite assistance area
defined in section 273.1341.

(d) There shall be distributed to each school district 62 percent of the amount that it
received under section 294.26 in calendar year 1977.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the distribution
in 2015.
new text end

Sec. 15.

Minnesota Statutes 2013 Supplement, 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; deleted text beginand
deleted text end

(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 upon approval by the board. The net proceeds must be
deposited in the trust fund for the purposes and uses of this sectiondeleted text begin.deleted text endnew text begin; and
new text end

new text begin (6) to make payments to school districts or to pay bonds under appropriations of
or allocations money from the Iron Range school construction and improvement trust
account under section 298.301 if the amounts in that account are insufficient to pay the
appropriations or allocations. Notwithstanding the restrictions in sections 298.293 and
298.296, subdivision 2, or any other law to the contrary, the corpus of the fund may be
used to make payments under this clause.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

new text begin [298.301] IRON RANGE SCHOOL CONSTRUCTION AND
IMPROVEMENT TRUST ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account established. new text end

new text begin The Iron Range school construction and
improvement trust account is established to receive amounts deposited under sections
290.62, paragraph (b), and 298.28, subdivision 9e. Amounts in the account must be used
to finance school buildings and other construction and improvements for school districts
located in the taconite tax relief area.
new text end

new text begin Subd. 2. new text end

new text begin Distributions. new text end

new text begin (a) Each year, beginning in calendar year 2015, the
following amounts are distributed from the account established in subdivision 1 for
reduction of the district's net debt service levy:
new text end

new text begin (1) for Independent School District No. 2711, Mesabi East, $600,000;
new text end

new text begin (2) for Independent School District No. 2142, St. Louis County, $1,500,000; and
new text end

new text begin (3) for Independent School District No. 706, Virginia, $5,000,000.
new text end

new text begin (b) The commissioner of the Iron Range Resources and Rehabilitation Board, with
the approval of the board, may adjust the payments in paragraph (a) to better match each
district's bond schedule.
new text end

new text begin Subd. 3. new text end

new text begin Additional projects. new text end

new text begin To the extent that funds remain in the account after
distribution under subdivision 2, the commissioner of the Iron Range Resources and
Rehabilitation Board may enter into agreements with other districts eligible for revenue
under section 298.28, subdivision 4, that have formed a joint powers cooperative under
section 123A.482.
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. 17.

Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:


Subd. 5.

Consolidation transition.

For districts consolidating under Minnesota
Statutes, section 123A.485:

$
472,000
.....
2014
$
deleted text begin 480,000
deleted text end new text begin .......
new text end
.....
2015

The 2014 appropriation includes $40,000 for 2013 and $432,000 for 2014.

The 2015 appropriation includes $68,000 for 2014 and deleted text begin$412,000deleted text endnew text begin $.......new text end for 2015.

Sec. 18. new text beginSTATE BOND AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation. new text end

new text begin $....... is appropriated from the bond proceeds
fund to the commissioner of education for cooperative facilities grants under Minnesota
Statutes, sections 123A.441 to 123A.446.
new text end

new text begin Subd. 2. new text end

new text begin Bond proceeds fund. new text end

new text begin To provide the money appropriated in subdivision
1 from the bond proceeds fund, the commissioner of management and budget shall sell
and issue bonds of the state in an amount up to $....... in the manner, upon the terms, and
with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 290.923, subdivision 1, new text end new text begin is repealed.
new text end