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SF 3580

as introduced - 90th Legislature (2017 - 2018) Posted on 03/26/2018 04:17pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to economic development; modifying definition of taconite assistance
area; clarifying use of taconite economic development fund; providing for transfer
of 2018 distribution; amending Minnesota Statutes 2016, sections 273.1341; 298.28,
subdivision 9a; Minnesota Statutes 2017 Supplement, section 298.227.

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

Section 1.

Minnesota Statutes 2016, section 273.1341, is amended to read:


273.1341 TACONITE ASSISTANCE AREA.

new text begin (a) new text end A "taconite assistance area" means the geographic area that falls within the boundaries
of a school district that contains:

(1) a municipality in which the assessed valuation of unmined iron ore on May 1, 1941,
was not less than 40 percent of the assessed valuation of all real property; or

(2) a municipality in which on January 1, 1977, or the applicable assessment date, there
is a taconite concentrating plant or where taconite is mined or quarried or where there is
located an electric generating plant which qualifies as a taconite facility.

new text begin (b) A school district located in St. Louis County that has an existing tuition agreement
with a school district located within the taconite assistance area is eligible to receive funds
from the taconite area environmental protection fund under section 298.223 and the Douglas
J. Johnson economic protection trust fund under sections 298.292 to 298.297.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, section 298.227, is amended to read:


298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by the
commissioner of Iron Range resources and rehabilitation in a separate taconite economic
development fund for each taconite and direct reduced ore producernew text begin for expenditure on new
projects as provided in this section. For purposes of this section, "new projects" means
projects that have not yet been commenced
new text end . Money from the fund for each producer shall
be released by the commissioner after review by a joint committee consisting of an equal
number of representatives of the salaried employees and the nonsalaried production and
maintenance employees of that producer. The District 11 director of the United States
Steelworkers of America, on advice of each local employee president, shall select the
employee members. In nonorganized operations, the employee committee shall be elected
by the nonsalaried production and maintenance employees. The review must be completed
no later than six months after the producer presents a proposal for expenditure of the funds
to the committee. The funds held pursuant to this section may be released only for workforce
development deleted text begin and associated public facility improvementdeleted text end , concurrent reclamation, deleted text begin or for
acquisition of
deleted text end plant and stationary mining equipmentdeleted text begin anddeleted text end new text begin ,new text end facilities for the producernew text begin ,new text end or for
research and development in Minnesota on new mining, deleted text begin ordeleted text end taconite, iron, or steel production
technology, but only if the producer provides a matching expenditure equal to the amount
of the distribution to be used for the same purpose deleted text begin beginning with distributions in 2014.
Effective for proposals for expenditures of money from the fund beginning May 26, 2007,
the commissioner may not release the funds before the next scheduled meeting of the board
deleted text end .
If a proposed expenditure is not approved by the commissioner, after consultation with the
advisory board, the funds must be deposited in the taconite environmental protection fund
under sections 298.222 to 298.225. If a taconite production facility is sold after operations
at the facility had ceased, any money remaining in the fund for the former producer may
be released to the purchaser of the facility on the terms otherwise applicable to the former
producer under this section. If a producer fails to provide matching funds for a proposed
expenditure within six months after the commissioner approves release of the funds, the
funds deleted text begin are available for release to another producer in proportion to the distribution provided
and under the conditions of this section
deleted text end new text begin may be released by the commissioner for deposit
in the taconite area environmental protection fund created in section 298.223
new text end . Any portion
of the fund which is not released by the commissioner within one year of its deposit in the
fund shall be deleted text begin divided betweendeleted text end new text begin distributed to new text end the taconite environmental protection fund
deleted text begin created in section 298.223 and the Douglas J. Johnson economic protection trust fund created
in section 298.292 for placement in their respective special accounts. Two-thirds of the
unreleased funds shall be distributed to the taconite environmental protection fund and
one-third to the Douglas J. Johnson economic protection trust fund
deleted text end .

Sec. 3.

Minnesota Statutes 2016, section 298.28, subdivision 9a, is amended to read:


Subd. 9a.

Taconite economic development fund.

deleted text begin (a)deleted text end 25.1 cents per ton for distributions
in 2002 and thereafter must be paid to the taconite economic development fund. No
distribution shall be made under this paragraph in 2004 or any subsequent year in which
total industry production falls below 30 million tons. Distribution shall only be made to a
taconite producer's fund under section 298.227 if the producer timely pays its tax under
section 298.24 by the dates provided under section 298.27, or pursuant to the due dates
provided by an administrative agreement with the commissioner.

deleted text begin (b) An amount equal to 50 percent of the tax under section 298.24 for concentrate sold
in the form of pellet chips and fines not exceeding 5/16 inch in size and not including crushed
pellets shall be paid to the taconite economic development fund. The amount paid shall not
exceed $700,000 annually for all companies. If the initial amount to be paid to the fund
exceeds this amount, each company's payment shall be prorated so the total does not exceed
$700,000.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from December 31, 2016.
new text end

Sec. 4. new text begin TRANSFER 2018 DISTRIBUTION ONLY.
new text end

new text begin For the 2018 distribution only, the commissioner of revenue shall transfer ....... cents
per ton of any excess of the balance remaining after distribution of amounts required under
Minnesota Statutes, section 298.28, subdivision 6, to the fund established under Minnesota
Statutes, section 298.28, subdivision 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2018 distribution, and the transfer
must be made within ten days of the August 2018 payment.
new text end