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SF 3204

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

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

Current Version - as introduced

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A bill for an act
relating to state government; providing for composition of the Iron Range
Resources and Rehabilitation Board; providing for selection of its members;
amending Minnesota Statutes 2004, sections 298.22, subdivisions 1, 2, by adding
a subdivision; 298.296, subdivision 2; Minnesota Statutes 2005 Supplement,
section 298.296, subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 298.22, subdivision 1, is amended to read:


Subdivision 1.

The office of the commissioner of Iron Range resources and
rehabilitation.

(1) The office of the commissioner of Iron Range resources and
rehabilitation is created. The governor shall appoint the commissioner of Iron Range
resources and rehabilitation under section 15.06.new text begin The commissioner is a voting member
and serves as chair of the Iron Range Resources and Rehabilitation Board.
new text end

(2) The commissioner may hold other positions or appointments that are not
incompatible with duties as commissioner of Iron Range resources and rehabilitation. The
commissioner may appoint a deputy commissioner. All expenses of the commissioner,
including the payment of such assistance as may be necessary, must be paid out of the
amounts appropriated by section 298.28.

(3) When the commissioner determines that distress and unemployment exists or
may exist in the future in any county by reason of the removal of natural resources or
a possibly limited use of natural resources in the future and any resulting decrease in
employment, the commissioner may use whatever amounts of the appropriation made to
the commissioner of revenue in section 298.28 that are determined to be necessary and
proper in the development of the remaining resources of the county and in the vocational
training and rehabilitation of its residents, except that the amount needed to cover cost
overruns awarded to a contractor by an arbitrator in relation to a contract awarded by
the commissioner or in effect after July 1, 1985, is appropriated from the general fund.
For the purposes of this section, "development of remaining resources" includes, but is
not limited to, the promotion of tourism.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007.
new text end

Sec. 2.

Minnesota Statutes 2004, section 298.22, subdivision 2, is amended to read:


Subd. 2.

Iron Range Resources and Rehabilitation Board.

new text begin (a) new text end There is hereby
created the Iron Range Resources and Rehabilitation Board, consisting of deleted text begin 13deleted text end new text begin 17 new text end members,
new text begin as follows:
new text end

new text begin (1) the commissioner of Iron Range resources and rehabilitation, who serves as chair;
new text end

new text begin (2) new text end five deleted text begin of whom aredeleted text end state senators appointed by the Subcommittee on Committees
of the Rules Committee of the senatedeleted text begin , anddeleted text end new text begin ;
new text end

new text begin (3)new text end five deleted text begin of whom are deleted text end new text begin state new text end representativesdeleted text begin ,deleted text end appointed by the speaker of the house
of representativesdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (4) six nonlegislator citizen members who reside in the taconite assistance area
as defined in section 273.1341.
new text end

new text begin (b) new text end The deleted text begin remainingdeleted text end new text begin citizen new text end members shall be appointed deleted text begin one each by the senate
majority leader, the speaker of the house of representatives, and
deleted text end new text begin by new text end the governor deleted text begin and must
be nonlegislators who reside in a taconite assistance area as defined in section 273.1341.
deleted text end new text begin as provided in subdivision 2a. The appointments must be confirmed by the senate under
section 15.066.
new text end

new text begin (c) new text end The members shall be appointed in January of every odd-numbered yeardeleted text begin , except
that the initial nonlegislator members shall be appointed by July 1, 1999, and shall serve
until January of the next odd-numbered year
deleted text end . Vacancies on the board shall be filled in the
same manner as the original members were chosen. At least a majority of the legislative
members of the board shall be elected from state senatorial or legislative districts in which
over 50 percent of the residents reside within a taconite assistance area as defined in
section 273.1341.

new text begin (d) new text end All expenditures and projects made by the commissioner of Iron Range resources
and rehabilitation shall be consistent with the priorities established in subdivision 8 and
shall first be submitted to the Iron Range Resources and Rehabilitation Board for approval
by a majority of the board of expenditures and projects for rehabilitation purposes as
provided by this section, and the method, manner, and time of payment of all funds
proposed to be disbursed shall be first approved or disapproved by the board. The board
shall biennially make its report to the governor and the legislature on or before November
15 of each even-numbered year. The expenses of the board shall be paid by the state from
the funds raised pursuant to this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007.
new text end

Sec. 3.

Minnesota Statutes 2004, section 298.22, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Nominating committee. new text end

new text begin (a) A nominating committee on the Iron
Range Resources and Rehabilitation Board selection is established. The committee shall
nominate to the governor persons to serve as nonlegislator citizen members of the Iron
Range Resources and Rehabilitation Board.
new text end

new text begin (b) The nominating committee shall consist of 13 members from the taconite
assistance area in the counties of Aitkin, Cook, Crow Wing, Itasca, Lake, and St. Louis,
as follows:
new text end

new text begin (1) six county commissioners, one from each county, appointed by the governor;
new text end

new text begin (2) six residents, one from each county, appointed by the resident's county board of
commissioners; and
new text end

new text begin (3) one resident from the taconite assistance area, appointed by the governor, who
shall serve as chair of the committee.
new text end

new text begin Committee members shall serve four-year terms ending on the same day the governor's
term of office ends.
new text end

new text begin (c) If a vacancy occurs on the committee by reason of the death or resignation of a
member or by the removal of a member appointed under this subdivision, the appointing
authority shall appoint an individual to fill the vacancy for the unexpired term.
new text end

new text begin (d) The committee shall prepare and make available to the public an outline of the
process the commission will follow in recruiting and evaluating candidates to fill vacancies
on the Iron Range Resources and Rehabilitation Board. The committee shall actively seek
out and encourage qualified individuals who have business and economic development
knowledge and experience to apply for appointment to the board. The governor may fill
vacancies on the board from the candidates recommended by the committee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2006.
new text end

Sec. 4.

Minnesota Statutes 2005 Supplement, section 298.296, subdivision 1, is
amended to read:


Subdivision 1.

Project approval.

The board shall by August 1 of each year prepare
a list of projects to be funded from the Douglas J. Johnson economic protection trust with
necessary supporting information including description of the projects, plans, and cost
estimates. These projects shall be consistent with the priorities established in section
298.292 and shall not be approved by the board unless it finds that:

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

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

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

To be proposed by the board, a project must be approved by at least deleted text begin eightdeleted text end new text begin tennew text end
Iron Range Resources and Rehabilitation Board members and the commissioner of
Iron Range resources and rehabilitation. The list of projects shall be submitted to the
governor, who shall, by November 15 of each year, approve or disapprove, or return for
further consideration, each project. The money for a project may be expended only upon
approval of the project by the governor. The board may submit supplemental projects
for approval at any time.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007.
new text end

Sec. 5.

Minnesota Statutes 2004, section 298.296, subdivision 2, is amended to read:


Subd. 2.

Expenditure of funds.

(a) Before January 1, 2028, funds may be expended
on projects and for administration of the trust fund only from the net interest, earnings,
and dividends arising from the investment of the trust at any time, including net interest,
earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
available for use in fiscal year 1983, except that any amount required to be paid out of the
trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
X, section 4, and to make school bond payments and payments to recipients of taconite
production tax proceeds pursuant to section 298.225, may be taken from the corpus of
the trust.

(b) Additionally, upon recommendation by the board, up to $13,000,000 from the
corpus of the trust may be made available for use as provided in subdivision 4, and up to
$10,000,000 from the corpus of the trust may be made available for use as provided in
section 298.2961.

(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article
8, section 17, may be expended on projects. Funds may be expended for projects under
this paragraph only if the project:

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

(2) is approved by the board upon an affirmative vote of at least deleted text begin tendeleted text end new text begin 12 new text end of its
members.

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

(d) Upon recommendation by a unanimous vote of all members of the board,
amounts in addition to those authorized under paragraphs (a), (b), and (c) may be
expended on projects described in section 298.292, subdivision 1.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007.
new text end