SF 2327

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; changing the rate of the 
  1.3             taconite production tax; providing for distribution of 
  1.4             taconite production tax proceeds; changing the 
  1.5             definition of tax relief area for certain purposes; 
  1.6             providing state aid to certain local governments 
  1.7             receiving certain taconite production tax 
  1.8             distributions; appropriating money; amending Minnesota 
  1.9             Statutes 2000, sections 116J.424; 126C.48, subdivision 
  1.10            8; 273.134; 273.135, subdivisions 1, 2; 273.136, 
  1.11            subdivision 2; 273.1391, subdivision 2; 276A.01, 
  1.12            subdivision 2; 298.018, subdivisions 1, 2; 298.17; 
  1.13            298.22, subdivision 2, by adding a subdivision; 
  1.14            298.2211, subdivision 2; 298.2213, subdivision 3; 
  1.15            298.2214, subdivision 1; 298.223, subdivision 1; 
  1.16            298.225, subdivision 1; 298.24, subdivision 1; 298.28, 
  1.17            subdivisions 1, 3, 4, 6, 7, 9, 9a, 9b, 10, 11, 15; 
  1.18            298.282, subdivision 1; 298.292, subdivision 2; 
  1.19            298.293; 298.298; 471.58. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21     Section 1.  Minnesota Statutes 2000, section 116J.424, is 
  1.22  amended to read: 
  1.23     116J.424 [IRRRB CONTRIBUTION.] 
  1.24     The commissioner of the iron range resources and 
  1.25  rehabilitation board with approval of the board shall provide an 
  1.26  equal match for any loan or equity investment made for a 
  1.27  facility located in the tax relief area defined in section 
  1.28  273.134, paragraph (b), by the Minnesota minerals 21st century 
  1.29  fund created by section 116J.423.  The match may be in the form 
  1.30  of a loan or equity investment, notwithstanding whether the fund 
  1.31  makes a loan or equity investment.  The state shall not acquire 
  1.32  an equity interest because of an equity investment or loan by 
  2.1   the board and the board at its sole discretion shall decide what 
  2.2   interest it acquires in a project.  The commissioner of trade 
  2.3   and economic development may require a commitment from the board 
  2.4   to make the match prior to disbursing money from the fund. 
  2.5      Sec. 2.  Minnesota Statutes 2000, section 126C.48, 
  2.6   subdivision 8, is amended to read: 
  2.7      Subd. 8.  [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 
  2.8   Reductions in levies pursuant to sections 126C.48, subdivision 
  2.9   1, and 273.138, must be made prior to the reductions in clause 
  2.10  (2). 
  2.11     (2) Notwithstanding any other law to the contrary, 
  2.12  districts which received payments pursuant to sections 298.018; 
  2.13  298.24 to 298.28, except an amount distributed under section 
  2.14  298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 
  2.15  298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
  2.16  upon severed mineral values, or recognized revenue pursuant to 
  2.17  section 477A.15 or section 36; must not include a portion of 
  2.18  these aids in their permissible levies pursuant to those 
  2.19  sections, but instead must reduce the permissible levies 
  2.20  authorized by this chapter and chapters 120B, 122A, 123A, 123B, 
  2.21  124A, 124D, 125A, and 127A by the greater of the following: 
  2.22     (a) an amount equal to 50 percent of the total dollar 
  2.23  amount of the payments received pursuant to those sections or 
  2.24  revenue recognized pursuant to section 477A.15 or section 36 in 
  2.25  the previous fiscal year; or 
  2.26     (b) an amount equal to the total dollar amount of the 
  2.27  payments received pursuant to those sections or revenue 
  2.28  recognized pursuant to section 477A.15 in the previous fiscal 
  2.29  year less the product of the same dollar amount of payments or 
  2.30  revenue times five percent. 
  2.31     (3) No reduction pursuant to this subdivision shall reduce 
  2.32  the levy made by the district pursuant to section 126C.13, to an 
  2.33  amount less than the amount raised by a levy of a net tax rate 
  2.34  of 6.82 percent times the adjusted net tax capacity for taxes 
  2.35  payable in 1990 and thereafter of that district for the 
  2.36  preceding year as determined by the commissioner.  The amount of 
  3.1   any increased levy authorized by referendum pursuant to section 
  3.2   126C.17, subdivision 9, shall not be reduced pursuant to this 
  3.3   subdivision.  The amount of any levy authorized by section 
  3.4   126C.43, to make payments for bonds issued and for interest 
  3.5   thereon, shall not be reduced pursuant to this subdivision.  
  3.6      (4) Before computing the reduction pursuant to this 
  3.7   subdivision of the health and safety levy authorized by sections 
  3.8   123B.57 and 126C.40, subdivision 5, the commissioner shall 
  3.9   ascertain from each affected school district the amount it 
  3.10  proposes to levy under each section or subdivision.  The 
  3.11  reduction shall be computed on the basis of the amount so 
  3.12  ascertained. 
  3.13     (5) Notwithstanding any law to the contrary, any amounts 
  3.14  received by districts in any fiscal year pursuant to sections 
  3.15  298.018; 298.24 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
  3.16  298.405; or any law imposing a tax on severed mineral values; 
  3.17  and not deducted from general education aid pursuant to section 
  3.18  126C.21, subdivision 4, clause (2), and not applied to reduce 
  3.19  levies pursuant to this subdivision shall be paid by the 
  3.20  district to the St. Louis county auditor in the following amount 
  3.21  by March 15 of each year, the amount required to be subtracted 
  3.22  from the previous fiscal year's general education aid pursuant 
  3.23  to section 126C.21, subdivision 4, which is in excess of the 
  3.24  general education aid earned for that fiscal year.  The county 
  3.25  auditor shall deposit any amounts received pursuant to this 
  3.26  clause in the St. Louis county treasury for purposes of paying 
  3.27  the taconite homestead credit as provided in section 273.135. 
  3.28     Sec. 3.  Minnesota Statutes 2000, section 273.134, is 
  3.29  amended to read: 
  3.30     273.134 [TACONITE AND IRON ORE AREAS; TAX RELIEF AREA; 
  3.31  DEFINITIONS.] 
  3.32     (a) For purposes of this section and section 273.135, 
  3.33  "municipality" means any city, however organized, or town, and 
  3.34  the applicable assessment date is the date as of which property 
  3.35  is listed and assessed for the tax in question. 
  3.36     For the purposes of section 273.135 "tax relief area" means 
  4.1   the geographic area contained, within the boundaries of a school 
  4.2   district whose boundary is within 20 miles of a taconite mine or 
  4.3   plant on January 2, 2000, which contains a municipality which 
  4.4   meets the following qualifications: 
  4.5      (1) it is a municipality in which the assessed valuation of 
  4.6   unmined iron ore on May 1, 1941, was not less than 40 percent of 
  4.7   the assessed valuation of all real property; or 
  4.8      (2) it is a municipality in which, on January 1, 1977 or 
  4.9   the applicable assessment date, there is a taconite 
  4.10  concentrating plant or where taconite is mined or quarried or 
  4.11  where there is located an electric generating plant which 
  4.12  qualifies as a taconite facility. 
  4.13     (b) For purposes of section 273.1391, subdivision 2, 
  4.14  paragraph (c), and chapter 298, "tax relief area" means the 
  4.15  geographic area contained within the boundaries of a school 
  4.16  district which contains a municipality that meets the following 
  4.17  qualifications: 
  4.18     (1) it is a municipality in which the assessed valuation of 
  4.19  unmined iron ore on May 1, 1941, was not less than 40 percent of 
  4.20  the assessed valuation of all real property; or 
  4.21     (2) it is a municipality in which, on January 1, 1977 or 
  4.22  the applicable assessment date, there is a taconite 
  4.23  concentrating plant or where taconite is mined or quarried or 
  4.24  where there is located an electric generating plant which 
  4.25  qualifies as a taconite facility. 
  4.26     [EFFECTIVE DATE.] This section is effective for taxes 
  4.27  payable in 2002 and thereafter. 
  4.28     Sec. 4.  Minnesota Statutes 2000, section 273.135, 
  4.29  subdivision 1, is amended to read: 
  4.30     Subdivision 1.  The property tax to be paid in respect to 
  4.31  property taxable within a tax relief area as defined in section 
  4.32  273.134, paragraph (a), on homestead property, as otherwise 
  4.33  determined by law and regardless of the market value of the 
  4.34  property, for all purposes shall be reduced in the amount 
  4.35  prescribed by subdivision 2, subject to the limitations 
  4.36  contained therein. 
  5.1      [EFFECTIVE DATE.] This section is effective for taxes 
  5.2   payable in 2002 and thereafter. 
  5.3      Sec. 5.  Minnesota Statutes 2000, section 273.135, 
  5.4   subdivision 2, is amended to read: 
  5.5      Subd. 2.  The amount of the reduction authorized by 
  5.6   subdivision 1 shall be: 
  5.7      (a) In the case of property located within the boundaries 
  5.8   of a municipality which meets the qualifications prescribed in 
  5.9   section 273.134, paragraph (a), 66 percent of the tax, provided 
  5.10  that the reduction shall not exceed the maximum amounts 
  5.11  specified in clause paragraph (c).  
  5.12     (b) In the case of property located within the boundaries 
  5.13  of a school district which qualifies as a tax relief area but 
  5.14  which is outside the boundaries of a municipality which meets 
  5.15  the qualifications prescribed in section 273.134, paragraph (a), 
  5.16  57 percent of the tax, provided that the reduction shall not 
  5.17  exceed the maximum amounts specified in clause paragraph (c).  
  5.18     (c) The maximum reduction of the tax is $315.10 on property 
  5.19  described in clause paragraph (a) and $289.80 on property 
  5.20  described in clause paragraph (b). 
  5.21     [EFFECTIVE DATE.] This section is effective for taxes 
  5.22  payable in 2002 and thereafter. 
  5.23     Sec. 6.  Minnesota Statutes 2000, section 273.136, 
  5.24  subdivision 2, is amended to read: 
  5.25     Subd. 2.  The commissioner of revenue shall determine, not 
  5.26  later than April 1 of each year, the amount of reduction 
  5.27  resulting from section 273.135 in each county containing a tax 
  5.28  relief area as defined by section 273.134, paragraph (b), basing 
  5.29  determinations on a review of abstracts of tax lists submitted 
  5.30  by the county auditors pursuant to section 275.29.  The 
  5.31  commissioner may make changes in the abstracts of tax lists as 
  5.32  deemed necessary.  The commissioner of revenue, after such 
  5.33  review, shall submit to the St. Louis county auditor, on or 
  5.34  before April 15, the amount of the first half payment payable 
  5.35  hereunder and on or before September 15 the amount of the second 
  5.36  half payment.  
  6.1      [EFFECTIVE DATE.] This section is effective for taxes 
  6.2   payable in 2002 and thereafter. 
  6.3      Sec. 7.  Minnesota Statutes 2000, section 273.1391, 
  6.4   subdivision 2, is amended to read: 
  6.5      Subd. 2.  The amount of the reduction authorized by 
  6.6   subdivision 1 shall be: 
  6.7      (a) In the case of property located within a school 
  6.8   district which does not meet the qualifications of section 
  6.9   273.134 as a tax relief area, but which is located in a county 
  6.10  with a population of less than 100,000 in which taconite is 
  6.11  mined or quarried and wherein a school district is located which 
  6.12  does meet the qualifications of a tax relief area, and provided 
  6.13  that at least 90 percent of the area of the school district 
  6.14  which does not meet the qualifications of section 273.134 lies 
  6.15  within such county, 57 percent of the tax on qualified property 
  6.16  located in the school district that does not meet the 
  6.17  qualifications of section 273.134, provided that the amount of 
  6.18  said reduction shall not exceed the maximum amounts specified in 
  6.19  clause (c) paragraph (d).  The reduction provided by this clause 
  6.20  shall only be applicable to property located within the 
  6.21  boundaries of the county described therein.  
  6.22     (b) In the case of property located within a school 
  6.23  district which does not meet the qualifications of section 
  6.24  273.134 as a tax relief area, but which is located in a school 
  6.25  district in a county containing a city of the first class and a 
  6.26  qualifying municipality, but not in a school district containing 
  6.27  a city of the first class or adjacent to a school district 
  6.28  containing a city of the first class unless the school district 
  6.29  so adjacent contains a qualifying municipality, 57 percent of 
  6.30  the tax, but not to exceed the maximums specified in clause 
  6.31  (c) paragraph (d). 
  6.32     (c) In the case of property located within the boundaries 
  6.33  of a municipality that meets the qualifications in section 
  6.34  273.134, paragraph (b), but not the qualifications in section 
  6.35  273.134, paragraph (a), 66 percent of the tax, provided that the 
  6.36  reduction shall not exceed $315.10.  In the case of property 
  7.1   located within the boundaries of a school district which 
  7.2   qualifies as a tax relief area under section 273.134, paragraph 
  7.3   (b), but does not qualify as a tax relief area under section 
  7.4   273.134, paragraph (a), but which is outside the boundaries of a 
  7.5   municipality which meets the qualifications of the preceding 
  7.6   sentence, 57 percent of the tax, provided that the reduction 
  7.7   shall not exceed the maximum amounts specified in paragraph (d). 
  7.8      (d) Except as otherwise provided in this section, the 
  7.9   maximum reduction of the tax is $289.80.  
  7.10     [EFFECTIVE DATE.] This section is effective for taxes 
  7.11  payable in 2002 and thereafter. 
  7.12     Sec. 8.  Minnesota Statutes 2000, section 276A.01, 
  7.13  subdivision 2, is amended to read: 
  7.14     Subd. 2.  [AREA.] "Area" means the territory included 
  7.15  within all tax relief areas defined in section 273.134, 
  7.16  paragraph (b). 
  7.17     Sec. 9.  Minnesota Statutes 2000, section 298.018, 
  7.18  subdivision 1, is amended to read: 
  7.19     Subdivision 1.  [WITHIN TACONITE TAX RELIEF AREA.] The 
  7.20  proceeds of the tax paid under sections 298.015 to 298.017 on 
  7.21  minerals and energy resources mined or extracted within the 
  7.22  taconite tax relief area defined in section 273.134, paragraph 
  7.23  (b), shall be allocated as follows: 
  7.24     (1) five percent to the city or town within which the 
  7.25  minerals or energy resources are mined or extracted; 
  7.26     (2) ten percent to the taconite municipal aid account to be 
  7.27  distributed as provided in section 298.282; 
  7.28     (3) ten percent to the school district within which the 
  7.29  minerals or energy resources are mined or extracted; 
  7.30     (4) 20 percent to a group of school districts comprised of 
  7.31  those school districts wherein the mineral or energy resource 
  7.32  was mined or extracted or in which there is a qualifying 
  7.33  municipality as defined by section 273.134, paragraph (b), in 
  7.34  direct proportion to school district indexes as follows:  for 
  7.35  each school district, its pupil units determined under section 
  7.36  126C.05 for the prior school year shall be multiplied by the 
  8.1   ratio of the average adjusted net tax capacity per pupil unit 
  8.2   for school districts receiving aid under this clause as 
  8.3   calculated pursuant to chapters 122A, 126C, and 127A for the 
  8.4   school year ending prior to distribution to the adjusted net tax 
  8.5   capacity per pupil unit of the district.  Each district shall 
  8.6   receive that portion of the distribution which its index bears 
  8.7   to the sum of the indices for all school districts that receive 
  8.8   the distributions; 
  8.9      (5) 20 percent to the county within which the minerals or 
  8.10  energy resources are mined or extracted; 
  8.11     (6) 20 percent to St. Louis county acting as the counties' 
  8.12  fiscal agent to be distributed as provided in sections 273.134 
  8.13  to 273.136; 
  8.14     (7) five percent to the iron range resources and 
  8.15  rehabilitation board for the purposes of section 298.22; 
  8.16     (8) five percent to the northeast Minnesota economic 
  8.17  protection trust fund; and 
  8.18     (9) five percent to the taconite environmental protection 
  8.19  fund. 
  8.20     The proceeds of the tax shall be distributed on July 15 
  8.21  each year.  
  8.22     Sec. 10.  Minnesota Statutes 2000, section 298.018, 
  8.23  subdivision 2, is amended to read: 
  8.24     Subd. 2.  [OUTSIDE TACONITE TAX RELIEF AREA.] The proceeds 
  8.25  of the tax paid under sections 298.015 to 298.017 on minerals 
  8.26  and energy resources mined or extracted outside of the taconite 
  8.27  tax relief area defined in section 273.134, paragraph (b), shall 
  8.28  be deposited in the general fund. 
  8.29     Sec. 11.  Minnesota Statutes 2000, section 298.17, is 
  8.30  amended to read: 
  8.31     298.17 [OCCUPATION TAXES TO BE APPORTIONED.] 
  8.32     All occupation taxes paid by persons, copartnerships, 
  8.33  companies, joint stock companies, corporations, and 
  8.34  associations, however or for whatever purpose organized, engaged 
  8.35  in the business of mining or producing iron ore or other ores, 
  8.36  when collected shall be apportioned and distributed in 
  9.1   accordance with the Constitution of the state of Minnesota, 
  9.2   article X, section 3, in the manner following:  90 percent shall 
  9.3   be deposited in the state treasury and credited to the general 
  9.4   fund of which four-ninths shall be used for the support of 
  9.5   elementary and secondary schools; and ten percent of the 
  9.6   proceeds of the tax imposed by this section shall be deposited 
  9.7   in the state treasury and credited to the general fund for the 
  9.8   general support of the university.  Of the moneys apportioned to 
  9.9   the general fund by this section there is annually appropriated 
  9.10  and credited to the iron range resources and rehabilitation 
  9.11  board account in the special revenue fund an amount equal to 
  9.12  that which would have been generated by a 1.5 cent tax imposed 
  9.13  by section 298.24 on each taxable ton produced in the preceding 
  9.14  calendar year, to be expended for the purposes of section 
  9.15  298.22.  The money appropriated pursuant to this section shall 
  9.16  be used (1) to provide environmental development grants to local 
  9.17  governments located within any county in region 3 as defined in 
  9.18  governor's executive order number 60, issued on June 12, 1970, 
  9.19  which does not contain a municipality qualifying pursuant to 
  9.20  section 273.134, paragraph (b), or (2) to provide economic 
  9.21  development loans or grants to businesses located within any 
  9.22  such county, provided that the county board or an advisory group 
  9.23  appointed by the county board to provide recommendations on 
  9.24  economic development shall make recommendations to the iron 
  9.25  range resources and rehabilitation board regarding the loans.  
  9.26  Payment to the iron range resources and rehabilitation board 
  9.27  account shall be made by May 15 annually. 
  9.28     Of the money allocated to Koochiching county, one-third 
  9.29  must be paid to the Koochiching county economic development 
  9.30  commission. 
  9.31     Sec. 12.  Minnesota Statutes 2000, section 298.22, 
  9.32  subdivision 2, is amended to read: 
  9.33     Subd. 2.  [IRON RANGE RESOURCES AND REHABILITATION BOARD.] 
  9.34  There is hereby created the iron range resources and 
  9.35  rehabilitation board, consisting of 13 members, five of whom are 
  9.36  state senators appointed by the subcommittee on committees of 
 10.1   the rules committee of the senate, and five of whom are 
 10.2   representatives, appointed by the speaker of the house of 
 10.3   representatives.  The remaining members shall be appointed one 
 10.4   each by the senate majority leader, the speaker of the house of 
 10.5   representatives, and the governor and must be nonlegislators who 
 10.6   reside in a tax relief area as defined in section 273.134, 
 10.7   paragraph (b).  The members shall be appointed in January of 
 10.8   every odd-numbered year, except that the initial nonlegislator 
 10.9   members shall be appointed by July 1, 1999, and shall serve 
 10.10  until January of the next odd-numbered year.  Vacancies on the 
 10.11  board shall be filled in the same manner as the original members 
 10.12  were chosen.  At least a majority of the legislative members of 
 10.13  the board shall be elected from state senatorial or legislative 
 10.14  districts in which over 50 percent of the residents reside 
 10.15  within a tax relief area as defined in section 273.134, 
 10.16  paragraph (b).  All expenditures and projects made by the 
 10.17  commissioner of iron range resources and rehabilitation shall be 
 10.18  consistent with the priorities established in subdivision 8 and 
 10.19  shall first be submitted to the iron range resources and 
 10.20  rehabilitation board for approval by a majority of the board of 
 10.21  expenditures and projects for rehabilitation purposes as 
 10.22  provided by this section, and the method, manner, and time of 
 10.23  payment of all funds proposed to be disbursed shall be first 
 10.24  approved or disapproved by the board.  The board shall 
 10.25  biennially make its report to the governor and the legislature 
 10.26  on or before November 15 of each even-numbered year.  The 
 10.27  expenses of the board shall be paid by the state from the funds 
 10.28  raised pursuant to this section. 
 10.29     Sec. 13.  Minnesota Statutes 2000, section 298.22, is 
 10.30  amended by adding a subdivision to read: 
 10.31     Subd. 8.  [SPENDING PRIORITY.] In making or approving any 
 10.32  expenditures on programs or projects, the commissioner and the 
 10.33  board shall give the highest priority to programs and projects 
 10.34  that target relief to those areas of the taconite tax relief 
 10.35  area as defined in section 273.134, paragraph (b), that have the 
 10.36  largest percentages of job losses and population losses directly 
 11.1   attributable to the economic downturn in the taconite industry 
 11.2   since the 1980's.  The commissioner and the board shall compare 
 11.3   the 1980 population and employment figures with the 2000 
 11.4   population and employment figures, and shall specifically 
 11.5   consider the job losses in 2000 and 2001 resulting from the 
 11.6   closure of LTV Steel Mining Company, in making or approving 
 11.7   expenditures consistent with this subdivision, as well as the 
 11.8   areas of residence of persons who suffered job loss for which 
 11.9   relief is to be targeted under this subdivision.  This 
 11.10  subdivision supersedes any other conflicting provisions of law. 
 11.11     Sec. 14.  Minnesota Statutes 2000, section 298.2211, 
 11.12  subdivision 2, is amended to read: 
 11.13     Subd. 2.  [AREA OF OPERATION.] Projects undertaken, 
 11.14  developed, or financed pursuant to this section shall be located 
 11.15  within the tax relief area defined in section 273.134, paragraph 
 11.16  (b). 
 11.17     Sec. 15.  Minnesota Statutes 2000, section 298.2213, 
 11.18  subdivision 3, is amended to read: 
 11.19     Subd. 3.  [USE OF MONEY.] The money appropriated under this 
 11.20  section may be used to provide loans, loan guarantees, interest 
 11.21  buy-downs, and other forms of participation with private sources 
 11.22  of financing, provided that a loan to a private enterprise must 
 11.23  be for a principal amount not to exceed one-half of the cost of 
 11.24  the project for which financing is sought, and the rate of 
 11.25  interest on a loan must be no less than the lesser of eight 
 11.26  percent or the rate of interest that is three percentage points 
 11.27  less than a full faith and credit obligation of the United 
 11.28  States government of comparable maturity, at the time that the 
 11.29  loan is approved.  
 11.30     Money appropriated in this section must be expended only in 
 11.31  or for the benefit of the tax relief area defined in section 
 11.32  273.134, paragraph (b), and as otherwise provided in this 
 11.33  section. 
 11.34     Sec. 16.  Minnesota Statutes 2000, section 298.2214, 
 11.35  subdivision 1, is amended to read: 
 11.36     Subdivision 1.  [CREATION OF COMMITTEE; PURPOSE.] A 
 12.1   committee is created to advise the commissioner of iron range 
 12.2   resources and rehabilitation on providing higher education 
 12.3   programs in the taconite tax relief area defined in section 
 12.4   273.134, paragraph (b).  The committee is subject to section 
 12.5   15.059. 
 12.6      Sec. 17.  Minnesota Statutes 2000, section 298.223, 
 12.7   subdivision 1, is amended to read: 
 12.8      Subdivision 1.  [CREATION; PURPOSES.] A fund called the 
 12.9   taconite environmental protection fund is created for the 
 12.10  purpose of reclaiming, restoring and enhancing those areas of 
 12.11  northeast Minnesota located within a tax relief area defined in 
 12.12  section 273.134, paragraph (b), that are adversely affected by 
 12.13  the environmentally damaging operations involved in mining 
 12.14  taconite and iron ore and producing iron ore concentrate and for 
 12.15  the purpose of promoting the economic development of northeast 
 12.16  Minnesota.  The taconite environmental protection fund shall be 
 12.17  used for the following purposes: 
 12.18     (a) to initiate investigations into matters the iron range 
 12.19  resources and rehabilitation board determines are in need of 
 12.20  study and which will determine the environmental problems 
 12.21  requiring remedial action; 
 12.22     (b) reclamation, restoration, or reforestation of minelands 
 12.23  not otherwise provided for by state law; 
 12.24     (c) local economic development projects including 
 12.25  construction of sewer and water systems, and other public works 
 12.26  located within a tax relief area defined in section 273.134, 
 12.27  paragraph (b); 
 12.28     (d) monitoring of mineral industry related health problems 
 12.29  among mining employees. 
 12.30     Sec. 18.  Minnesota Statutes 2000, section 298.225, 
 12.31  subdivision 1, is amended to read: 
 12.32     Subdivision 1.  The distribution of the taconite production 
 12.33  tax as provided in section 298.28, subdivisions 2 to 5, 6, 
 12.34  paragraph (b), 7, and 8, shall equal the lesser of the following 
 12.35  amounts:  
 12.36     (1) (a) the amount distributed pursuant to this section and 
 13.1   section 298.28, subdivisions 2, paragraph (a), 3 to 5, 6, 
 13.2   paragraph (b), 7, and 8, with respect to 1983 production if the 
 13.3   production for the year prior to the distribution year is no 
 13.4   less than 42,000,000 35,000,000 taxable tons.  If the production 
 13.5   is less than 42,000,000 35,000,000 taxable tons, the amount of 
 13.6   the distributions shall be reduced proportionately at the rate 
 13.7   of two 2.4 percent for each 1,000,000 tons, or part of 1,000,000 
 13.8   tons by which the production is less than 42,000,000 35,000,000 
 13.9   tons; or 
 13.10     (b) the amount distributed pursuant to section 298.28, 
 13.11  subdivision 2, paragraph (b), with respect to 1999 production if 
 13.12  the production for the year prior to the distribution year is no 
 13.13  less than 35,000,000 taxable tons.  If the production is less 
 13.14  than 35,000,000 taxable tons, the amount of the distributions 
 13.15  shall be reduced 2.4 percent for each 1,000,000 tons or part of 
 13.16  1,000,000 tons by which the production is less than 35,000,000 
 13.17  tons; or 
 13.18     (2)(i) for the distributions made pursuant to section 
 13.19  298.28, subdivisions 4, paragraphs (b) and (c), and 6, paragraph 
 13.20  (c), 40.5 percent of the amount distributed pursuant to this 
 13.21  section and section 298.28, with respect to 1983 production; 
 13.22     (ii) for the distributions made pursuant to section 298.28, 
 13.23  subdivision 5, paragraphs (b) and (d), 75 percent of the amount 
 13.24  distributed pursuant to this section and section 298.28, with 
 13.25  respect to 1983 production.  
 13.26     [EFFECTIVE DATE.] This section is effective for 
 13.27  distributions in 2002 and thereafter. 
 13.28     Sec. 19.  Minnesota Statutes 2000, section 298.24, 
 13.29  subdivision 1, is amended to read: 
 13.30     Subdivision 1.  (a) For concentrate produced in 1999 2001, 
 13.31  there is imposed upon taconite and iron sulphides, and upon the 
 13.32  mining and quarrying thereof, and upon the production of iron 
 13.33  ore concentrate therefrom, and upon the concentrate so produced, 
 13.34  a tax of $2.141 $2.173 per gross ton of merchantable iron ore 
 13.35  concentrate produced therefrom.  
 13.36     (b) For concentrates produced in 2000 2004 and subsequent 
 14.1   years, the tax rate shall be equal to the preceding year's tax 
 14.2   rate plus an amount equal to the preceding year's tax rate 
 14.3   multiplied by the percentage increase in the implicit price 
 14.4   deflator from the fourth quarter of the second preceding year to 
 14.5   the fourth quarter of the preceding year.  "Implicit price 
 14.6   deflator" means the implicit price deflator for the gross 
 14.7   domestic product prepared by the bureau of economic analysis of 
 14.8   the United States Department of Commerce.  
 14.9      (c) On concentrates produced in 1997 and thereafter, an 
 14.10  additional tax is imposed equal to three cents per gross ton of 
 14.11  merchantable iron ore concentrate for each one percent that the 
 14.12  iron content of the product exceeds 72 percent, when dried at 
 14.13  212 degrees Fahrenheit. 
 14.14     (d) The tax shall be imposed on the average of the 
 14.15  production for the current year and the previous two years.  The 
 14.16  rate of the tax imposed will be the current year's tax rate.  
 14.17  This clause shall not apply in the case of the closing of a 
 14.18  taconite facility if the property taxes on the facility would be 
 14.19  higher if this clause and section 298.25 were not applicable.  
 14.20     (e) If the tax or any part of the tax imposed by this 
 14.21  subdivision is held to be unconstitutional, a tax 
 14.22  of $2.141 $2.173 per gross ton of merchantable iron ore 
 14.23  concentrate produced shall be imposed.  
 14.24     (f) Consistent with the intent of this subdivision to 
 14.25  impose a tax based upon the weight of merchantable iron ore 
 14.26  concentrate, the commissioner of revenue may indirectly 
 14.27  determine the weight of merchantable iron ore concentrate 
 14.28  included in fluxed pellets by subtracting the weight of the 
 14.29  limestone, dolomite, or olivine derivatives or other basic flux 
 14.30  additives included in the pellets from the weight of the 
 14.31  pellets.  For purposes of this paragraph, "fluxed pellets" are 
 14.32  pellets produced in a process in which limestone, dolomite, 
 14.33  olivine, or other basic flux additives are combined with 
 14.34  merchantable iron ore concentrate.  No subtraction from the 
 14.35  weight of the pellets shall be allowed for binders, mineral and 
 14.36  chemical additives other than basic flux additives, or moisture. 
 15.1      (g)(1) Notwithstanding any other provision of this 
 15.2   subdivision, for the first two years of a plant's production of 
 15.3   direct reduced ore, no tax is imposed under this section.  As 
 15.4   used in this paragraph, "direct reduced ore" is ore that results 
 15.5   in a product that has an iron content of at least 75 percent.  
 15.6   For the third year of a plant's production of direct reduced 
 15.7   ore, the rate to be applied to direct reduced ore is 25 percent 
 15.8   of the rate otherwise determined under this subdivision.  For 
 15.9   the fourth such production year, the rate is 50 percent of the 
 15.10  rate otherwise determined under this subdivision; for the fifth 
 15.11  such production year, the rate is 75 percent of the rate 
 15.12  otherwise determined under this subdivision; and for all 
 15.13  subsequent production years, the full rate is imposed. 
 15.14     (2) Subject to clause (1), production of direct reduced ore 
 15.15  in this state is subject to the tax imposed by this section, but 
 15.16  if that production is not produced by a producer of taconite or 
 15.17  iron sulfides, the production of taconite or iron sulfides 
 15.18  consumed in the production of direct reduced iron in this state 
 15.19  is not subject to the tax imposed by this section on taconite or 
 15.20  iron sulfides. 
 15.21     Sec. 20.  Minnesota Statutes 2000, section 298.28, 
 15.22  subdivision 1, is amended to read: 
 15.23     Subdivision 1.  [DISTRIBUTION.] The proceeds of the taxes 
 15.24  collected under section 298.24, except the tax collected under 
 15.25  section 298.24, subdivision 2, shall, upon certification of the 
 15.26  commissioner of revenue, be allocated under subdivisions 2 to 
 15.27  12, except as otherwise provided in subdivision 4, paragraph 
 15.28  (f), subdivision 6, paragraph (e), and subdivision 11, paragraph 
 15.29  (d). 
 15.30     Sec. 21.  Minnesota Statutes 2000, section 298.28, 
 15.31  subdivision 3, is amended to read: 
 15.32     Subd. 3.  [CITIES; TOWNS.] (a) 12.5 cents per taxable ton, 
 15.33  less any amount distributed under subdivision 8, and paragraph 
 15.34  (b), must be allocated to the taconite municipal aid account to 
 15.35  be distributed as provided in section 298.282. 
 15.36     (b) An amount must be allocated to towns or cities that is 
 16.1   annually certified by the county auditor of a county containing 
 16.2   a taconite tax relief area as defined in section 273.134, 
 16.3   paragraph (b), within which there is (1) an organized township 
 16.4   if, as of January 2, 1982, more than 75 percent of the assessed 
 16.5   valuation of the township consists of iron ore or (2) a city if, 
 16.6   as of January 2, 1980, more than 75 percent of the assessed 
 16.7   valuation of the city consists of iron ore.  
 16.8      (c) The amount allocated under paragraph (b) will be the 
 16.9   portion of a township's or city's certified levy equal to the 
 16.10  proportion of (1) the difference between 50 percent of January 
 16.11  2, 1982, assessed value in the case of a township and 50 percent 
 16.12  of the January 2, 1980, assessed value in the case of a city and 
 16.13  its current assessed value to (2) the sum of its current 
 16.14  assessed value plus the difference determined in (1), provided 
 16.15  that the amount distributed shall not exceed $55 per capita in 
 16.16  the case of a township or $75 per capita in the case of a city.  
 16.17  For purposes of this limitation, population will be determined 
 16.18  according to the 1980 decennial census conducted by the United 
 16.19  States Bureau of the Census.  If the current assessed value of 
 16.20  the township exceeds 50 percent of the township's January 2, 
 16.21  1982, assessed value, or if the current assessed value of the 
 16.22  city exceeds 50 percent of the city's January 2, 1980, assessed 
 16.23  value, this paragraph shall not apply.  For purposes of this 
 16.24  paragraph, "assessed value," when used in reference to years 
 16.25  other than 1980 or 1982, means the appropriate net tax 
 16.26  capacities multiplied by 10.2. 
 16.27     Sec. 22.  Minnesota Statutes 2000, section 298.28, 
 16.28  subdivision 4, is amended to read: 
 16.29     Subd. 4.  [SCHOOL DISTRICTS.] (a) 22.28 cents per taxable 
 16.30  ton plus the increase provided in paragraph (d) must be 
 16.31  allocated to qualifying school districts to be distributed, 
 16.32  based upon the certification of the commissioner of revenue, 
 16.33  under paragraphs (b) and (c), except as otherwise provided in 
 16.34  paragraph (f). 
 16.35     (b) 4.46 cents per taxable ton must be distributed to the 
 16.36  school districts in which the lands from which taconite was 
 17.1   mined or quarried were located or within which the concentrate 
 17.2   was produced.  The distribution must be based on the 
 17.3   apportionment formula prescribed in subdivision 2. 
 17.4      (c)(i) 17.82 cents per taxable ton, less any amount 
 17.5   distributed under paragraph (e), shall be distributed to a group 
 17.6   of school districts comprised of those school districts in which 
 17.7   the taconite was mined or quarried or the concentrate produced 
 17.8   or in which there is a qualifying municipality as defined by 
 17.9   section 273.134, paragraph (b), in direct proportion to school 
 17.10  district indexes as follows:  for each school district, its 
 17.11  pupil units determined under section 126C.05 for the prior 
 17.12  school year shall be multiplied by the ratio of the average 
 17.13  adjusted net tax capacity per pupil unit for school districts 
 17.14  receiving aid under this clause as calculated pursuant to 
 17.15  chapters 122A, 126C, and 127A for the school year ending prior 
 17.16  to distribution to the adjusted net tax capacity per pupil unit 
 17.17  of the district.  Each district shall receive that portion of 
 17.18  the distribution which its index bears to the sum of the indices 
 17.19  for all school districts that receive the distributions.  
 17.20     (ii) Notwithstanding clause (i), each school district that 
 17.21  receives a distribution under sections 298.018; 298.23 to 
 17.22  298.28, exclusive of any amount received under this clause; 
 17.23  298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 
 17.24  imposing a tax on severed mineral values that is less than the 
 17.25  amount of its levy reduction under section 126C.48, subdivision 
 17.26  8, for the second year prior to the year of the distribution 
 17.27  shall receive a distribution equal to the difference; the amount 
 17.28  necessary to make this payment shall be derived from 
 17.29  proportionate reductions in the initial distribution to other 
 17.30  school districts under clause (i).  
 17.31     (d) Any school district described in paragraph (c) where a 
 17.32  levy increase pursuant to section 126C.17, subdivision 9, is 
 17.33  authorized by referendum, shall receive a distribution from a 
 17.34  fund that receives a distribution in 1998 of 21.3 cents per 
 17.35  ton.  On July 15 of 1999, and each year thereafter, the increase 
 17.36  over the amount established for the prior year shall be 
 18.1   determined according to the increase in the implicit price 
 18.2   deflator as provided in section 298.24, subdivision 1.  Each 
 18.3   district shall receive the product of: 
 18.4      (i) $175 times the pupil units identified in section 
 18.5   126C.05, subdivision 1, enrolled in the second previous year or 
 18.6   the 1983-1984 school year, whichever is greater, less the 
 18.7   product of 1.8 percent times the district's taxable net tax 
 18.8   capacity in the second previous year; times 
 18.9      (ii) the lesser of: 
 18.10     (A) one, or 
 18.11     (B) the ratio of the sum of the amount certified pursuant 
 18.12  to section 126C.17, subdivision 6, in the previous year, plus 
 18.13  the amount certified pursuant to section 126C.17, subdivision 8, 
 18.14  in the previous year, plus the referendum aid according to 
 18.15  section 126C.17, subdivision 7, for the current year, plus an 
 18.16  amount equal to the reduction under section 126C.17, subdivision 
 18.17  12, to the product of 1.8 percent times the district's taxable 
 18.18  net tax capacity in the second previous year. 
 18.19     If the total amount provided by paragraph (d) is 
 18.20  insufficient to make the payments herein required then the 
 18.21  entitlement of $175 per pupil unit shall be reduced uniformly so 
 18.22  as not to exceed the funds available.  Any amounts received by a 
 18.23  qualifying school district in any fiscal year pursuant to 
 18.24  paragraph (d) shall not be applied to reduce general education 
 18.25  aid which the district receives pursuant to section 126C.13 or 
 18.26  the permissible levies of the district.  Any amount remaining 
 18.27  after the payments provided in this paragraph shall be paid to 
 18.28  the commissioner of iron range resources and rehabilitation who 
 18.29  shall deposit the same in the taconite environmental protection 
 18.30  fund and the northeast Minnesota economic protection trust fund 
 18.31  as provided in subdivision 11. 
 18.32     Each district receiving money according to this paragraph 
 18.33  shall reserve $25 times the number of pupil units in the 
 18.34  district.  It may use the money for early childhood programs or 
 18.35  for outcome-based learning programs that enhance the academic 
 18.36  quality of the district's curriculum.  The outcome-based 
 19.1   learning programs must be approved by the commissioner of 
 19.2   children, families, and learning. 
 19.3      (e) There shall be distributed to any school district the 
 19.4   amount which the school district was entitled to receive under 
 19.5   section 298.32 in 1975. 
 19.6      (f) Notwithstanding language to the contrary in this 
 19.7   subdivision, beginning with the year 2002 distribution, the 
 19.8   amount necessary for distributions to school districts under 
 19.9   paragraphs (b), (c), and (e) and section 298.225 is annually 
 19.10  appropriated, upon certification by the commissioner of revenue, 
 19.11  to the commissioner of children, families, and learning from the 
 19.12  general fund.  On or before February 25, the commissioner of 
 19.13  children, families, and learning shall distribute the 
 19.14  appropriation in the manner provided by section 298.27. 
 19.15     Sec. 23.  Minnesota Statutes 2000, section 298.28, 
 19.16  subdivision 6, is amended to read: 
 19.17     Subd. 6.  [PROPERTY TAX RELIEF.] (a) In 1999, 38.81 2002, 
 19.18  35.9 cents per taxable ton, less any amount required to be 
 19.19  distributed under paragraphs (b) and (c), and less any amount 
 19.20  required to be deducted under paragraph (d), must be allocated 
 19.21  to St. Louis county acting as the counties' fiscal agent, to be 
 19.22  distributed as provided in sections 273.134 to 273.136. 
 19.23     (b) If an electric power plant owned by and providing the 
 19.24  primary source of power for a taxpayer mining and concentrating 
 19.25  taconite is located in a county other than the county in which 
 19.26  the mining and the concentrating processes are conducted, .1875 
 19.27  cent per taxable ton of the tax imposed and collected from such 
 19.28  taxpayer shall be paid to the county. 
 19.29     (c) If an electric power plant owned by and providing the 
 19.30  primary source of power for a taxpayer mining and concentrating 
 19.31  taconite is located in a school district other than a school 
 19.32  district in which the mining and concentrating processes are 
 19.33  conducted, .7282 cent per taxable ton of the tax imposed and 
 19.34  collected from the taxpayer shall be paid to the school district.
 19.35     (d) Two cents per taxable ton must be deducted from the 
 19.36  amount allocated to the St. Louis county auditor under paragraph 
 20.1   (a). 
 20.2      (e) Notwithstanding language to the contrary in this 
 20.3   subdivision, beginning with the year 2002 distribution, the 
 20.4   amount necessary for distributions to school districts under 
 20.5   paragraph (c) is annually appropriated, upon certification by 
 20.6   the commissioner of revenue, to the commissioner of children, 
 20.7   families, and learning from the general fund.  On or before 
 20.8   February 25, the commissioner of children, families, and 
 20.9   learning shall distribute the appropriation in the manner 
 20.10  provided by section 298.27. 
 20.11     [EFFECTIVE DATE.] This section is effective for 
 20.12  distributions in 2002 and thereafter. 
 20.13     Sec. 24.  Minnesota Statutes 2000, section 298.28, 
 20.14  subdivision 7, is amended to read: 
 20.15     Subd. 7.  [IRON RANGE RESOURCES AND REHABILITATION BOARD.] 
 20.16  For the 1998 distribution, 6.5 cents per taxable ton shall be 
 20.17  paid to the iron range resources and rehabilitation board for 
 20.18  the purposes of section 298.22.  That amount shall be increased 
 20.19  in 1999 and subsequent years in the same proportion as the 
 20.20  increase in the implicit price deflator as provided in section 
 20.21  298.24, subdivision 1.  The amount distributed pursuant to this 
 20.22  subdivision shall be expended within or for the benefit of a tax 
 20.23  relief area defined in section 273.134, paragraph (b).  No part 
 20.24  of the fund provided in this subdivision may be used to provide 
 20.25  loans for the operation of private business unless the loan is 
 20.26  approved by the governor. 
 20.27     Sec. 25.  Minnesota Statutes 2000, section 298.28, 
 20.28  subdivision 9, is amended to read: 
 20.29     Subd. 9.  [MINNESOTA ECONOMIC PROTECTION TRUST FUND.] In 
 20.30  1999 and subsequent years, 3.35 cents per taxable ton shall be 
 20.31  paid to the northeast Minnesota economic protection trust fund.  
 20.32     Sec. 26.  Minnesota Statutes 2000, section 298.28, 
 20.33  subdivision 9a, is amended to read: 
 20.34     Subd. 9a.  [TACONITE ECONOMIC DEVELOPMENT FUND.] (a) 15.4 
 20.35  cents per ton for distributions in 1999, 2000, 2001, and 2002, 
 20.36  2003, and 2004 must be paid to the taconite economic development 
 21.1   fund.  No distribution shall be made under this paragraph in any 
 21.2   year in which total industry production falls below 30 million 
 21.3   tons. 
 21.4      (b) An amount equal to 50 percent of the tax under section 
 21.5   298.24 for concentrate sold in the form of pellet chips and 
 21.6   fines not exceeding 5/16 inch in size and not including crushed 
 21.7   pellets shall be paid to the taconite economic development 
 21.8   fund.  The amount paid shall not exceed $700,000 annually for 
 21.9   all companies.  If the initial amount to be paid to the fund 
 21.10  exceeds this amount, each company's payment shall be prorated so 
 21.11  the total does not exceed $700,000. 
 21.12     Sec. 27.  Minnesota Statutes 2000, section 298.28, 
 21.13  subdivision 9b, is amended to read: 
 21.14     Subd. 9b.  [TACONITE ENVIRONMENTAL FUND.] Five Fifteen 
 21.15  cents per ton for distributions in 1999, 2000, 2001, and 2002, 
 21.16  2003, and 2004 must be paid to the taconite environmental fund 
 21.17  for use under section 298.2961.  No distribution may be made 
 21.18  under this paragraph in any year in which total industry 
 21.19  production falls below 30,000,000 tons. 
 21.20     Sec. 28.  Minnesota Statutes 2000, section 298.28, 
 21.21  subdivision 10, is amended to read: 
 21.22     Subd. 10.  [INCREASE.] Beginning with distributions in 
 21.23  2000, the amounts amount determined under subdivisions 6, 
 21.24  paragraph (a), and subdivision 9 shall be increased in the same 
 21.25  proportion as the increase in the implicit price deflator as 
 21.26  provided in section 298.24, subdivision 1.  Beginning with 
 21.27  distributions in 2003, the amount determined under subdivision 
 21.28  6, paragraph (a), shall be increased in the same proportion as 
 21.29  the increase in the implicit price deflator as provided in 
 21.30  section 298.24, subdivision 1.  
 21.31     The distributions per ton determined under subdivisions 5, 
 21.32  paragraphs (b) and (d), and 6, paragraph (b), for distribution 
 21.33  in 1988 and subsequent years shall be the distribution per ton 
 21.34  determined for distribution in 1987.  The distribution per ton 
 21.35  under subdivision 6, paragraph (c), for distribution in 2000 and 
 21.36  subsequent years shall be 81 percent of the distribution per ton 
 22.1   determined for distribution in 1987. 
 22.2      [EFFECTIVE DATE.] This section is effective for 
 22.3   distributions in 2002 and thereafter. 
 22.4      Sec. 29.  Minnesota Statutes 2000, section 298.28, 
 22.5   subdivision 11, is amended to read: 
 22.6      Subd. 11.  [REMAINDER.] (a) The proceeds of the tax imposed 
 22.7   by section 298.24 which remain after the distributions and 
 22.8   payments in subdivisions 2 to 10a, as certified by the 
 22.9   commissioner of revenue, and paragraphs (b), (c), and (d) have 
 22.10  been made, together with interest earned on all money 
 22.11  distributed under this section prior to distribution, shall be 
 22.12  divided between the taconite environmental protection fund 
 22.13  created in section 298.223 and the northeast Minnesota economic 
 22.14  protection trust fund created in section 298.292 as follows:  
 22.15  Two-thirds to the taconite environmental protection fund and 
 22.16  one-third to the northeast Minnesota economic protection trust 
 22.17  fund.  The proceeds shall be placed in the respective special 
 22.18  accounts.  In this paragraph, the terms "distributions and 
 22.19  payments" and "all money distributed under this section" do not 
 22.20  mean distributions from general fund appropriations. 
 22.21     (b) There shall be distributed to each city, town, and 
 22.22  county the amount that it received under section 294.26 in 
 22.23  calendar year 1977; provided, however, that the amount 
 22.24  distributed in 1981 to the unorganized territory number 2 of 
 22.25  Lake county and the town of Beaver Bay based on the 
 22.26  between-terminal trackage of Erie Mining Company will be 
 22.27  distributed in 1982 and subsequent years to the unorganized 
 22.28  territory number 2 of Lake county and the towns of Beaver Bay 
 22.29  and Stony River based on the miles of track of Erie Mining 
 22.30  Company in each taxing district. 
 22.31     (c) There shall be distributed to the iron range resources 
 22.32  and rehabilitation board the amounts it received in 1977 under 
 22.33  section 298.22.  The amount distributed under this paragraph 
 22.34  shall be expended within or for the benefit of the tax relief 
 22.35  area defined in section 273.134, paragraph (b). 
 22.36     (d) There shall be distributed to each school district 81 
 23.1   percent of the amount that it received under section 294.26 in 
 23.2   calendar year 1977, except that, beginning with the year 2002 
 23.3   distribution, the amount necessary for distributions to school 
 23.4   districts is annually appropriated, upon certification by the 
 23.5   commissioner of revenue, to the commissioner of children, 
 23.6   families, and learning from the general fund.  On or before 
 23.7   February 25, the commissioner of children, families, and 
 23.8   learning shall distribute the appropriation as provided in this 
 23.9   paragraph. 
 23.10     Sec. 30.  Minnesota Statutes 2000, section 298.28, 
 23.11  subdivision 15, is amended to read: 
 23.12     Subd. 15.  [DISTRIBUTION OF DELAYED PAYMENTS.] 
 23.13  Notwithstanding any other provision of this section or any other 
 23.14  law, if payment of taxes collected under section 298.24 is 
 23.15  delayed past the due date because the taxpayer is a debtor in a 
 23.16  pending bankruptcy proceeding, the amount paid shall be 
 23.17  distributed as follows when received:  
 23.18     (1) 50 percent to St. Louis county acting as the counties' 
 23.19  fiscal agent, to be distributed as provided in sections 273.134 
 23.20  to 273.136; 
 23.21     (2) 25 percent to the northeast Minnesota economic 
 23.22  protection trust fund; and 
 23.23     (3) 25 percent to the taconite environmental protection 
 23.24  fund 
 23.25  provided that for payments of taxes relating to production year 
 23.26  2000 only, the amount paid shall be deposited in the general 
 23.27  fund.  
 23.28     Sec. 31.  Minnesota Statutes 2000, section 298.282, 
 23.29  subdivision 1, is amended to read: 
 23.30     Subdivision 1.  The amount deposited with the county as 
 23.31  provided in section 298.28, subdivision 3, shall be distributed 
 23.32  as provided by this section, among the municipalities comprising 
 23.33  a tax relief area under section 273.134, paragraph (b), as 
 23.34  amended hereby, each being herein referred to as a qualifying 
 23.35  municipality. 
 23.36     Sec. 32.  Minnesota Statutes 2000, section 298.292, 
 24.1   subdivision 2, is amended to read: 
 24.2      Subd. 2.  [USE OF MONEY.] Money in the northeast Minnesota 
 24.3   economic protection trust fund may be used for the following 
 24.4   purposes:  
 24.5      (1) to provide loans, loan guarantees, interest buy-downs 
 24.6   and other forms of participation with private sources of 
 24.7   financing, but a loan to a private enterprise shall be for a 
 24.8   principal amount not to exceed one-half of the cost of the 
 24.9   project for which financing is sought, and the rate of interest 
 24.10  on a loan shall be no less than the lesser of eight percent or 
 24.11  an interest rate three percentage points less than a full faith 
 24.12  and credit obligation of the United States government of 
 24.13  comparable maturity, at the time that the loan is approved; 
 24.14     (2) to fund reserve accounts established to secure the 
 24.15  payment when due of the principal of and interest on bonds 
 24.16  issued pursuant to section 298.2211; 
 24.17     (3) to pay in periodic payments or in a lump sum payment 
 24.18  any or all of the interest on bonds issued pursuant to chapter 
 24.19  474 for the purpose of constructing, converting, or retrofitting 
 24.20  heating facilities in connection with district heating systems 
 24.21  or systems utilizing alternative energy sources; and 
 24.22     (4) to invest in a venture capital fund or enterprise that 
 24.23  will provide capital to other entities that are engaging in, or 
 24.24  that will engage in, projects or programs that have the purposes 
 24.25  set forth in subdivision 1.  No investments may be made in a 
 24.26  venture capital fund or enterprise unless at least two other 
 24.27  unrelated investors make investments of at least $500,000 in the 
 24.28  venture capital fund or enterprise, and the investment by the 
 24.29  northeast Minnesota economic protection trust fund may not 
 24.30  exceed the amount of the largest investment by an unrelated 
 24.31  investor in the venture capital fund or enterprise.  For 
 24.32  purposes of this subdivision, an "unrelated investor" is a 
 24.33  person or entity that is not related to the entity in which the 
 24.34  investment is made or to any individual who owns more than 40 
 24.35  percent of the value of the entity, in any of the following 
 24.36  relationships:  spouse, parent, child, sibling, employee, or 
 25.1   owner of an interest in the entity that exceeds ten percent of 
 25.2   the value of all interests in it.  For purposes of determining 
 25.3   the limitations under this clause, the amount of investments 
 25.4   made by an investor other than the northeast Minnesota economic 
 25.5   protection trust fund is the sum of all investments made in the 
 25.6   venture capital fund or enterprise during the period beginning 
 25.7   one year before the date of the investment by the northeast 
 25.8   Minnesota economic protection trust fund.  
 25.9      Money from the trust fund shall be expended only in or for 
 25.10  the benefit of the tax relief area defined in section 273.134, 
 25.11  paragraph (b). 
 25.12     Sec. 33.  Minnesota Statutes 2000, section 298.293, is 
 25.13  amended to read: 
 25.14     298.293 [EXPENDING FUNDS.] 
 25.15     The funds provided by section 298.28, subdivision 11, 
 25.16  relating to the northeast Minnesota economic protection trust 
 25.17  fund, except money expended pursuant to Laws 1982, Second 
 25.18  Special Session, chapter 2, sections 8 to 14, shall be expended 
 25.19  only in an amount that does not exceed the sum of the net 
 25.20  interest, dividends, and earnings arising from the investment of 
 25.21  the trust for the preceding 12 calendar months from the date of 
 25.22  the authorization plus, for fiscal year 1983, $10,000,000 from 
 25.23  the corpus of the fund.  The funds may be spent only in or for 
 25.24  the benefit of those areas that are tax relief areas as defined 
 25.25  in section 273.134, paragraph (b).  If during any year the 
 25.26  taconite property tax account under sections 273.134 to 273.136 
 25.27  does not contain sufficient funds to pay the property tax relief 
 25.28  specified in Laws 1977, chapter 423, article X, section 4, there 
 25.29  is appropriated from this trust fund to the relief account 
 25.30  sufficient funds to pay the relief specified in Laws 1977, 
 25.31  chapter 423, article X, section 4. 
 25.32     Sec. 34.  Minnesota Statutes 2000, section 298.298, is 
 25.33  amended to read: 
 25.34     298.298 [LONG-RANGE PLAN.] 
 25.35     Consistent with the policy established in sections 298.291 
 25.36  to 298.298, the iron range resources and rehabilitation board 
 26.1   shall prepare and present to the governor and the legislature by 
 26.2   January 1, 1984 a long-range plan for the use of the northeast 
 26.3   Minnesota economic protection trust fund for the economic 
 26.4   development and diversification of the tax relief area defined 
 26.5   in section 273.134, paragraph (b).  The iron range resources and 
 26.6   rehabilitation board shall, before November 15 of each even 
 26.7   numbered year, prepare a report to the governor and legislature 
 26.8   updating and revising this long-range plan and reporting on the 
 26.9   iron range resources and rehabilitation board's progress on 
 26.10  those matters assigned to it by law.  After January 1, 1984, no 
 26.11  project shall be approved by the iron range resources and 
 26.12  rehabilitation board which is not consistent with the goals and 
 26.13  objectives established in the long-range plan. 
 26.14     Sec. 35.  Minnesota Statutes 2000, section 471.58, is 
 26.15  amended to read: 
 26.16     471.58 [RANGE ASSOCIATION OF MUNICIPALITIES AND SCHOOLS; 
 26.17  MEMBERSHIP.] 
 26.18     For the purpose of providing an areawide approach to 
 26.19  problems which demand coordinated and cooperative actions and 
 26.20  which are common to those areas of northeast Minnesota affected 
 26.21  by operations involved in mining iron ore and taconite and 
 26.22  producing concentrate therefrom, and for the purpose of 
 26.23  promoting the general welfare and economic development of the 
 26.24  cities, towns and school districts within the iron ranges area 
 26.25  of northeast Minnesota, any city, town or school district in 
 26.26  which the net tax capacity consists in part of iron ore, or 
 26.27  lands containing taconite or semitaconite or which is located in 
 26.28  whole or part in the tax relief area defined by section 273.134, 
 26.29  paragraph (b), may pay annual dues in the range association of 
 26.30  municipalities and schools.  The association may sue, be sued, 
 26.31  intervene and act in a civil action in which the outcome of the 
 26.32  action will have an effect upon the interest of any of its 
 26.33  members. 
 26.34     Sec. 36.  [STATE AID.] 
 26.35     Notwithstanding Minnesota Statutes, chapter 298, or any 
 26.36  other law to the contrary, a city, township, county, school 
 27.1   district, the taconite property tax relief fund, the Iron Range 
 27.2   Resources and Rehabilitation Board, the Range Association of 
 27.3   Municipalities and Schools, the taconite economic development 
 27.4   fund, the taconite environmental fund, the taconite 
 27.5   environmental protection fund, and the northeast Minnesota 
 27.6   economic protection trust receiving distributions under 
 27.7   Minnesota Statutes, sections 298.225, 298.28, and 298.292, shall 
 27.8   each receive aid in 2001 equal to the difference between the 
 27.9   distributions it receives under Minnesota Statutes, sections 
 27.10  298.225, 298.28, and 298.282, and the distributions it would 
 27.11  have received in 2001 under Minnesota Statutes 2000, sections 
 27.12  298.225, 298.28, and 298.282, if those distributions had been 
 27.13  based on the average of the production for 1998, 1999, and 2000 
 27.14  and disregarded the bankruptcy of one of the taxpayers.  A sum 
 27.15  sufficient to make distributions of aid under this section is 
 27.16  appropriated from the general fund.  The commissioner of revenue 
 27.17  is responsible for making these distributions.  Distribution of 
 27.18  this aid shall be made on or before July 1, 2001.