SF 3582

as introduced - 89th Legislature (2015 - 2016) Posted on 04/22/2016 09:18am

A bill for an act
relating to economic development; transferring approval authority from the
Iron Range Resources and Rehabilitation Board to the commissioner of Iron
Range resources and rehabilitation; requiring the commissioner of Iron Range
resources and rehabilitation to seek a recommendation from the board in certain
circumstances; amending Minnesota Statutes 2014, sections 15.38, subdivision
7; 116J.424; 216B.161, subdivision 1; 276A.01, subdivisions 8, 17; 282.38,
subdivision 1; 298.001, subdivision 8; 298.22, subdivisions 1a, 5a, 6, 8, 10,
11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5; 298.223,
subdivisions 1, 2; 298.227; 298.28, subdivisions 7a, 9d; 298.292, subdivision 2;
298.294; 298.296, subdivisions 1, 2, 4; 298.2961, subdivisions 2, 4; 298.298;
298.46, subdivision 2.

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

Section 1.

Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read:

Subd. 7.

Iron Range resources and rehabilitation deleted text begin Board deleted text end .

new text begin After seeking
a recommendation from the Iron Range Resources and Rehabilitation Board, new text end the
new text begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end may purchase insurance deleted text begin it
considers deleted text end new text begin the commissioner deems new text end necessary and appropriate to insure facilities operated
by the board.

Sec. 2.

Minnesota Statutes 2014, section 116J.424, is amended to read:

116J.424 IRON RANGE RESOURCES AND REHABILITATION deleted text begin BOARD deleted text end
CONTRIBUTION.

The commissioner of deleted text begin the deleted text end Iron Range resources and rehabilitation deleted text begin Board with
approval by the board, deleted text end shall provide an equal match for any loan or equity investment
made for a facility located in the tax relief area defined in section 273.134, paragraph (b),
by the Minnesota minerals 21st century fund created by section 116J.423. The match may
be in the form of a loan or equity investment, notwithstanding whether the fund makes
a loan or equity investment. The state shall not acquire an equity interest because of an
equity investment or loan deleted text begin by the board deleted text end new text begin under this section new text end and the deleted text begin board at its sole discretion deleted text end new text begin
commissioner, after consultation with the Iron Range Resources and Rehabilitation Board, new text end
shall new text begin have the sole discretion to new text end decide what interest deleted text begin it deleted text end new text begin the board new text end acquires in a project. The
commissioner of employment and economic development may require a commitment
from the deleted text begin board deleted text end new text begin commissioner new text end to make the match prior to disbursing money from the fund.

Sec. 3.

Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms
have the meanings given them in this subdivision.

(b) "Area development rate" means a rate schedule established by a utility that
provides customers within an area development zone service under a base utility rate
schedule, except that charges may be reduced from the base rate as agreed upon by the
utility and the customer consistent with this section.

(c) "Area development zone" means a contiguous or noncontiguous area designated
by an authority or municipality for development or redevelopment and within which one
of the following conditions exists:

(1) obsolete buildings not suitable for improvement or conversion or other identified
hazards to the health, safety, and general well-being of the community;

(2) buildings in need of substantial rehabilitation or in substandard condition; or

(3) low values and damaged investments.

(d) "Authority" means a rural development financing authority established under
sections 469.142 to 469.151; a housing and redevelopment authority established under
sections 469.001 to 469.047; a port authority established under sections 469.048 to
469.068; an economic development authority established under sections 469.090
to 469.108; a redevelopment agency as defined in sections 469.152 to 469.165; the
new text begin commissioner of new text end Iron Range resources and rehabilitation new text begin , acting after consultation
with the new text end board established under section 298.22; a municipality that is administering a
development district created under sections 469.124 to 469.133 or any special law; a
municipality that undertakes a project under sections 469.152 to 469.165, except a town
located outside the metropolitan area as defined in section 473.121, subdivision 2, or with
a population of 5,000 persons or less; or a municipality that exercises the powers of a port
authority under any general or special law.

(e) "Municipality" means a city, however organized, and, with respect to a project
undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
sections 469.152 to 469.165, and, with respect to a project undertaken under sections
469.142 to 469.151 or a county or multicounty project undertaken under sections 469.004
to 469.008, also includes any county.

Sec. 4.

Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read:

Subd. 8.

Municipality.

"Municipality" means a city, town, or township located
in whole or part within the area. If a municipality is located partly within and partly
without the area, the references in sections 276A.01 to 276A.09 to property or any portion
thereof subject to taxation or taxing jurisdiction within the municipality are to the property
or portion thereof that is located in that portion of the municipality within the area,
except that the fiscal capacity of the municipality must be computed upon the basis of the
valuation and population of the entire municipality. A municipality shall be excluded from
the area if its municipal comprehensive zoning and planning policies conscientiously
exclude most commercial-industrial development, for reasons other than preserving an
agricultural use. The new text begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end and
the commissioner of revenue shall jointly make this determination annually and shall
notify those municipalities that are ineligible to participate in the tax base sharing program
provided in this chapter for the following year. new text begin Before making the joint determination, the
commissioner of Iron Range resources and rehabilitation shall seek a recommendation
from the Iron Range Resources and Rehabilitation Board.
new text end

Sec. 5.

Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read:

Subd. 17.

School fund allocation.

(a) "School fund allocation" means an amount up
to 25 percent of the areawide levy certified by the new text begin commissioner of Iron Range resources
and rehabilitation, after seeking a recommendation from the new text end Iron Range Resources and
Rehabilitation Board new text begin , new text end to be used for the purposes of the Iron Range school consolidation
and cooperatively operated school account under section 298.28, subdivision 7a.

(b) The allocation under paragraph (a) shall only be made after the new text begin commissioner of
Iron Range resources and rehabilitation, after seeking a recommendation from the new text end Iron
Range Resources and Rehabilitation Board new text begin , new text end has certified by June 30 that the Iron Range
school consolidation and cooperatively operated account has insufficient funds to make
payments as authorized under section 298.28, subdivision 7a.

Sec. 6.

Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read:

Subdivision 1.

Development.

In any county where the county board by proper
resolution sets aside funds for forest development pursuant to section 282.08, clause (5),
item (i), or section 459.06, subdivision 2, the commissioner of Iron Range resources
and rehabilitation deleted text begin with the approval of the deleted text end new text begin , after seeking a recommendation from the
Iron Range Resources and Rehabilitation new text end Board new text begin , new text end may upon request of the county board
assist said county in carrying out any project for the long range development of its forest
resources through matching of funds or otherwise.

Sec. 7.

Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read:

Subd. 8.

Commissioner.

"Commissioner" means the commissioner of revenue
of the state of Minnesota new text begin , except that when used in sections 298.22 to 298.227, and
298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources
and rehabilitation new text end .

Sec. 8.

Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read:

Subd. 1a.

Iron Range Resources and Rehabilitation Board.

The Iron Range
Resources and Rehabilitation Board consists of the state senators and representatives
elected from state senatorial or legislative districts in which one-third or more of the
residents reside in a taconite assistance area as defined in section 273.1341. One additional
state senator shall also be appointed by the senate Subcommittee on Committees of the
Committee on Rules and Administration. All expenditures and projects made by the
commissioner shall first be submitted to the board deleted text begin for approval deleted text end . new text begin The board shall recommend
approval or disapproval or modification of the expenditures and projects. new text end The expenses
of the board shall be paid by the state from the funds raised pursuant to this section.
Members of the board may be reimbursed for expenses in the manner provided in sections
3.099, subdivision 1, and 3.101, and may receive per diem payments during the interims
between legislative sessions in the manner provided in section 3.099, subdivision 1.

The members shall be appointed in January of every odd-numbered year, and shall
serve until January of the next odd-numbered year. Vacancies on the board shall be filled
in the same manner as original members were chosen.

Sec. 9.

Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read:

Subd. 5a.

Forest trust.

The commissioner, deleted text begin upon approval by deleted text end new text begin after requesting a
recommendation from new text end the board, may purchase forest lands in the taconite assistance area
defined in under section 273.1341 with funds specifically authorized for the purchase. The
acquired forest lands must be held in trust for the benefit of the citizens of the taconite
assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall
be managed and developed for recreation and economic development purposes. The
commissioner, deleted text begin upon approval by deleted text end new text begin after requesting a recommendation from new text end the board,
may sell forest lands purchased under this subdivision if the deleted text begin board finds deleted text end new text begin commissioner
determines new text end that the sale advances the purposes of the trust. Proceeds derived from the
management or sale of the lands and from the sale of timber or removal of gravel or
other minerals from these forest lands shall be deposited into an Iron Range Miners'
Memorial Forest account that is established within the state financial accounts. Funds may
be expended from the account deleted text begin upon approval by deleted text end new text begin after the commissioner has sought a
recommendation from new text end the board, to purchase, manage, administer, convey interests in,
and improve the forest lands. deleted text begin With approval by deleted text end new text begin After the commissioner has sought a
recommendation from new text end the board, money in the Iron Range Miners' Memorial Forest
account may be transferred into the corpus of the Douglas J. Johnson economic protection
trust fund established under sections 298.291 to 298.294. The property acquired under
the authority granted by this subdivision and income derived from the property or the
operation or management of the property are exempt from taxation by the state or its
political subdivisions while held by the forest trust.

Sec. 10.

Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read:

Subd. 6.

Private entity participation.

new text begin After seeking a recommendation from new text end the
board new text begin , the commissioner new text end may acquire an equity interest in any project for which deleted text begin it deleted text end new text begin the
commissioner new text end provides funding. The commissioner may establish, participate in the
management of, and dispose of the assets of charitable foundations, nonprofit limited
liability companies, and nonprofit corporations associated with any project for which it
provides funding, including specifically, but without limitation, a corporation within the
meaning of section 317A.011, subdivision 6.

Sec. 11.

Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read:

Subd. 8.

Spending priority.

In making or deleted text begin approving deleted text end new text begin recommending new text end any
expenditures on programs or projects, the commissioner and the board shall give the
highest priority to programs and projects that target relief to those areas of the taconite
assistance area as defined in section 273.1341, that have the largest percentages of job
losses and population losses directly attributable to the economic downturn in the taconite
industry since the 1980s. The commissioner and the board shall compare the 1980
population and employment figures with the 2000 population and employment figures,
and shall specifically consider the job losses in 2000 and 2001 resulting from the closure
of LTV Steel Mining Company, in making or deleted text begin approving deleted text end new text begin recommending new text end expenditures
consistent with this subdivision, as well as the areas of residence of persons who suffered
job loss for which relief is to be targeted under this subdivision. The commissioner
may lease, for a term not exceeding 50 years and upon the terms determined by the
commissioner deleted text begin and approved deleted text end new text begin after seeking review new text end by the board, surface and mineral
interests owned or acquired by the state of Minnesota acting by and through the office of
the commissioner of Iron Range resources and rehabilitation within those portions of the
taconite assistance area affected by the closure of the LTV Steel Mining Company facility
near Hoyt Lakes. The payments and royalties from these leases must be deposited into the
fund established in section 298.292. This subdivision supersedes any other conflicting
provisions of law and does not preclude the commissioner deleted text begin and the board deleted text end from making
expenditures for programs and projects in other areas new text begin after seeking review by the board new text end .

Sec. 12.

Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read:

Subd. 10.

Sale or privatization of functions.

The commissioner of Iron
Range resources and rehabilitation may not sell or privatize the Ironworld Discovery
Center or Giants Ridge Golf and Ski Resort without deleted text begin prior approval by deleted text end new text begin first seeking a
recommendation from new text end the board.

Sec. 13.

Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read:

Subd. 11.

Budgeting.

The commissioner of Iron Range resources and rehabilitation
shall annually prepare a budget for operational expenditures, programs, and projects, and
submit it to the Iron Range Resources and Rehabilitation Board new text begin for a recommendation new text end .
After the budget is approved by deleted text begin the board and deleted text end the governor, the commissioner may spend
money in accordance with the approved budget.

Sec. 14.

Minnesota Statutes 2014, section 298.221, is amended to read:

298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.

(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
pursuant to the terms of any contract entered into by the state under authority of section
298.22 and any fees which may, in the discretion of the commissioner of Iron Range
resources and rehabilitation, be charged in connection with any project pursuant to that
section as amended, shall be deposited in the state treasury to the credit of the Iron Range
Resources and Rehabilitation Board account in the special revenue fund and are hereby
appropriated for the purposes of section 298.22.

(b) Notwithstanding section 16A.013, merchandise may be accepted by the
commissioner of the Iron Range Resources and Rehabilitation Board for payment of
advertising contracts if the commissioner determines that the merchandise can be used
for special event prizes or mementos at facilities operated by the board. Nothing in this
paragraph authorizes the commissioner or a member of the board to receive merchandise
for personal use.

(c) All fees charged by the commissioner in connection with public use of the
state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
revenues derived by the commissioner from the operation or lease of those facilities
and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
Recreation Area must be deposited into an Iron Range Resources and Rehabilitation
Board account that is created within the state enterprise fund. All funds deposited in the
enterprise fund account are appropriated to the commissioner to be expended, deleted text begin subject to
approval by deleted text end new text begin after seeking a recommendation from new text end the board, as follows:

(1) to pay costs associated with the construction, equipping, operation, repair, or
improvement of the Giants Ridge Recreation Area facilities or lands;

(2) to pay principal, interest and associated bond issuance, reserve, and servicing
costs associated with the financing of the facilities; and

(3) to pay the costs of any other project authorized under section 298.22.

Sec. 15.

Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:

Subd. 3.

Project approval.

All projects authorized by this section shall be submitted
by the commissioner to the Iron Range Resources and Rehabilitation Board for deleted text begin approval
by deleted text end new text begin a recommendation from new text end the board. Prior to the commencement of a project involving
the exercise by the commissioner of any authority of sections 469.174 to 469.179, the
governing body of each municipality in which any part of the project is located and the
county board of any county containing portions of the project not located in an incorporated
area shall by majority vote approve or disapprove the project. Any project approved by
the deleted text begin board deleted text end new text begin commissioner new text end and the applicable governing bodies, if any, together with detailed
information concerning the project, its costs, the sources of its funding, and the amount of
any bonded indebtedness to be incurred in connection with the project, shall be transmitted
to the governor, who shall approve, disapprove, or return the proposal for additional
consideration within 30 days of receipt. No project authorized under this section shall be
undertaken, and no obligations shall be issued and no tax increments shall be expended for
a project authorized under this section until the project has been approved by the governor.

Sec. 16.

Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read:

Subd. 4.

Project approval.

new text begin After seeking a recommendation from new text end the board deleted text begin and deleted text end new text begin ,
the new text end commissioner shall by August 1 each year prepare a list of projects to be funded from
the money appropriated in this section with necessary supporting information including
descriptions of the projects, plans, and cost estimates. A project must not be approved by
the deleted text begin board deleted text end new text begin commissioner new text end unless deleted text begin it deleted text end new text begin the commissioner new text end finds that:

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

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

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

Each project must be approved by the deleted text begin board and the deleted text end commissioner of Iron Range
resources and rehabilitation. The list of projects must be submitted to the governor,
who shall, by November 15 of each year, approve, disapprove, or return for further
consideration, each project. The money for a project may be spent only upon approval of
the project by the governor. The deleted text begin board deleted text end new text begin commissioner new text end may submit supplemental projects
for approval at any time new text begin , after seeking a recommendation from the board new text end .

Sec. 17.

Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read:

Subd. 5.

Advisory committees.

Before submission to the board of a proposal for a
project for expenditure of money appropriated under this section, the commissioner of Iron
Range resources and rehabilitation shall appoint a technical advisory committee consisting
of at least seven persons who are knowledgeable in areas related to the objectives of the
proposal. If the project involves investment in a scientific research proposal, at least four
of the committee members must be knowledgeable in the specific scientific research area
relating to the project. Members of the committees must be compensated as provided in
section 15.059, subdivision 3. The deleted text begin board deleted text end new text begin commissioner new text end shall not act on a proposal until deleted text begin it
has received deleted text end new text begin the commissioner has sought review from the board of new text end the evaluation and
recommendations of the technical advisory committee.

Sec. 18.

Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read:

Subdivision 1.

Creation; purposes.

A fund called the taconite environmental
protection fund is created for the purpose of reclaiming, restoring and enhancing those
areas of northeast Minnesota located within the taconite assistance area defined in section
273.1341, that are adversely affected by the environmentally damaging operations
involved in mining taconite and iron ore and producing iron ore concentrate and for the
purpose of promoting the economic development of northeast Minnesota. The taconite
environmental protection fund shall be used for the following purposes:

(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
Board determines are in need of study and which will determine the environmental
problems requiring remedial action;

(2) reclamation, restoration, or reforestation of mine lands not otherwise provided
for by state law;

(3) local economic development projects but only if those projects are approved by
the deleted text begin board deleted text end new text begin commissioner after seeking a recommendation of the projects from the board new text end ,
and public works, including construction of sewer and water systems located within the
taconite assistance area defined in section 273.1341;

(4) monitoring of mineral industry related health problems among mining employees;

(5) local public works projects under section 298.227, paragraph (c); and

(6) local public works projects as provided under this clause. The following amounts
shall be distributed in 2009 based upon the taxable tonnage of production in 2008:

(i) .4651 cent per ton to the city of Aurora for street repair and renovation;

(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
improvements to the south side industrial site;

(iii) .6460 cent per ton to the city of Buhl for street repair;

(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;

(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
upgrades;

(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
upgrades;

(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;

(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
modifications for the miners' memorial;

(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;

(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;

(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;

(xii) .6460 cent per ton to the town of Balkan for community center repairs;

(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;

(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;

(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;

(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;

(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;

(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;

(xix) .3230 cent per ton to Lake County for trail construction;

(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand
Marais;

(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure
improvements;

(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;

(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer
improvements along Gayley Avenue;

(xxiv) .3876 cent per ton to the city of Marble for construction of a city
administration facility;

(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the
community center;

(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure
upgrades;

(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades
along Depot Street;

(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
improvements;

(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
infrastructure upgrades at Pokegema Golf Course and Park Place;

(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades
for 1st Avenue from River Road to 3rd Street SE; and

(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing
at Highway 2 and County Road 62.

Sec. 19.

Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read:

Subd. 2.

Administration.

(a) The taconite area environmental protection fund shall
be administered by the commissioner of the Iron Range Resources and Rehabilitation
Board. The commissioner shall by September 1 of each year submit to the board a list
of projects to be funded from the taconite area environmental protection fund, with such
supporting information including description of the projects, plans, and cost estimates as
may be necessary.

(b) Each year no less than one-half of the amounts deposited into the taconite
environmental protection fund must be used for public works projects, including
construction of sewer and water systems, as specified under subdivision 1, clause (3).
new text begin After seeking a recommendation from new text end the Iron Range Resources and Rehabilitation Board new text begin ,
the commissioner new text end may waive the requirements of this paragraph.

(c) deleted text begin Upon approval by the board, deleted text end The list of projects approved new text begin by the commissioner new text end
under this subdivision new text begin , after the commissioner has sought review of the projects by the
board, new text end shall be submitted to the governor by November 1 of each year. By December 1 of
each year, the governor shall approve or disapprove, or return for further consideration,
each project. Funds for a project may be expended only upon approval of the project by
the deleted text begin board deleted text end new text begin commissioner new text end and the governor. The commissioner may submit supplemental
projects deleted text begin to the board and deleted text end new text begin for approval from the new text end governor deleted text begin for approval deleted text end new text begin after seeking review
of the supplemental projects from the board new text end at any time.

Sec. 20.

Minnesota Statutes 2014, section 298.227, is amended to read:

298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

(a) 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 Iron Range Resources and Rehabilitation Board in a separate taconite economic
development fund for each taconite and direct reduced ore producer. 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 and associated public facility improvement,
or for acquisition of plant and stationary mining equipment and facilities for the producer
or for research and development in Minnesota on new mining, or 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 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. If a proposed expenditure is not approved by the new text begin commissioner, after
seeking a recommendation from the new text end board, the funds must be deposited in the Taconite
Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses
money which has been released from the fund prior to May 26, 2007 to procure haulage
trucks, mobile equipment, or mining shovels, and the producer removes the piece of
equipment from the taconite tax relief area defined in section 273.134 within ten years
from the date of receipt of the money from the fund, a portion of the money granted
from the fund must be repaid to the taconite economic development fund. The portion
of the money to be repaid is 100 percent of the grant if the equipment is removed from
the taconite tax relief area within 12 months after receipt of the money from the fund,
declining by ten percent for each of the subsequent nine years during which the equipment
remains within the taconite tax relief area. 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 are available for release to another producer in proportion to the
distribution provided and under the conditions of this section. Any portion of the fund
which is not released by the commissioner within one year of its deposit in the fund 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 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.

(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed
under paragraph (a), may be used for a loan or grant for the cost of providing for a
value-added wood product facility located in the taconite tax relief area and in a county
that contains a city of the first class. This amount must be deducted from the distribution
under paragraph (a) for which a matching expenditure by the producer is not required. The
granting of the loan or grant is subject to approval by the board. If the money is provided
as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213,
subdivision 3. (ii) Repayments of the loan and interest, if any, must be deposited in the
taconite environment protection fund under sections 298.222 to 298.225. If a loan or
grant is not made under this paragraph by July 1, 2012, the amount that had been made
available for the loan under this paragraph must be transferred to the taconite environment
protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the
fund established under this section that exceeds ten cents per ton is available to qualifying
producers under paragraph (a) on a pro rata basis.

(c) Repayment or transfer of money to the taconite environmental protection fund
under paragraph (b), item (ii), must be allocated by the new text begin commissioner of new text end Iron Range
resources and rehabilitation new text begin , after seeking a recommendation from the Iron Range
Resources and Rehabilitation new text end Board for public works projects in house legislative districts
in the same proportion as taxable tonnage of production in 2007 in each house legislative
district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for
distribution in 2008. Notwithstanding any other law to the contrary, expenditures under
this paragraph do not require approval by the governor. For purposes of this paragraph,
"house legislative districts" means the legislative districts in existence on May 15, 2009.

Sec. 21.

Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:

Subd. 7a.

Iron Range school consolidation and cooperatively operated school
account.

The following amounts must be allocated to the Iron Range Resources and
Rehabilitation Board to be deposited in the Iron Range school consolidation and
cooperatively operated school account that is hereby created:

(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per
taxable ton of the tax imposed under section 298.24;

(2) the amount as determined under section 298.17, paragraph (b), clause (3);

(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J.
Johnson economic protection trust fund;

(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the
increased tax proceeds attributable to the increase in the implicit price deflator as provided
in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining
one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and

(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the
increased tax proceeds attributable to the increase in the implicit price deflator as provided
in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the
remaining one-third to be distributed to the Douglas J. Johnson economic protection
trust fund; and

(4) any other amount as provided by law.

Expenditures from this account shall be made only to provide disbursements to
assist school districts with the payment of bonds that were issued for qualified school
projects, or for any other school disbursement as approved by the new text begin commissioner after the
commissioner has sought review of the expenditures by the new text end Iron Range Resources and
Rehabilitation Board. For purposes of this section, "qualified school projects" means
school projects within the taconite assistance area as defined in section 273.1341, that were
(1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner
of education pursuant to section 123B.71.

Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to
offset any reduction in debt service equalization aid that the school district qualifies for in
that year, under section 123B.53, subdivision 6, compared with the amount the school
district qualified for in fiscal year 2018.

No expenditure under this section shall be made unless approved by deleted text begin seven members
of deleted text end new text begin the commissioner after seeking review of the expenditure from new text end the Iron Range
Resources and Rehabilitation Board.

Sec. 22.

Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:

Subd. 9d.

Iron Range higher education account.

Five cents per taxable ton must
be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
an Iron Range higher education account that is hereby created, to be used for higher
education programs conducted at educational institutions in the taconite assistance area
defined in section 273.1341. The Iron Range Higher Education committee under section
298.2214, and the deleted text begin Iron Range Resources and Rehabilitation Board deleted text end new text begin commissioner new text end must
approve all expenditures from the account new text begin , after seeking review and recommendation of
the expenditures from the Iron Range Resources and Rehabilitation Board new text end .

Sec. 23.

Minnesota Statutes 2014, 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; and

(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 deleted text begin upon approval by deleted text end new text begin after seeking a recommendation from new text end
the board. The net proceeds must be deposited in the trust fund for the purposes and
uses of this section.

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

Sec. 24.

Minnesota Statutes 2014, section 298.294, is amended to read:

298.294 INVESTMENT OF FUND.

(a) The trust fund established by section 298.292 shall be invested pursuant to law
by the State Board of Investment and the net interest, dividends, and other earnings arising
from the investments shall be transferred, except as provided in paragraph (b), on the first
day of each month to the trust and shall be included and become part of the trust fund.
The amounts transferred, including the interest, dividends, and other earnings earned
prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
commissioner of Iron Range resources and rehabilitation for deposit in a separate account
for expenditure for the purposes set forth in section 298.292. Amounts appropriated
pursuant to this section shall not cancel but shall remain available unless expended.

(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends,
and other earnings under paragraph (a) shall be transferred to a special account. Funds
in the special account are available for loans or grants to businesses, with priority given
to businesses with 25 or fewer employees. Funds may be used for wage subsidies for
up to 52 weeks of up to $5 per hour or other activities, including, but not limited to,
short-term operating expenses and purchase of equipment and materials by businesses
under financial duress, that will create additional jobs in the taconite assistance area
under section 273.1341. Expenditures from the special account must be approved by the
new text begin commissioner after seeking a recommendation from the new text end board.

(c) To qualify for a grant or loan, a business must be currently operating and have
been operating for one year immediately prior to its application for a loan or grant, and its
corporate headquarters must be located in the taconite assistance area.

Sec. 25.

Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read:

Subdivision 1.

Project approval.

new text begin (a) new text end The new text begin commissioner of Iron Range resources and
rehabilitation, after seeking a recommendation from the new text end board deleted text begin and commissioner deleted text end new text begin , new text end 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 deleted text begin board deleted text end new text begin commissioner new text end
unless deleted text begin it deleted text end new text begin the commissioner, after seeking a recommendation from the board, new text end finds that:

deleted text begin (a) deleted text end new text begin (1) new text end the project will materially assist, directly or indirectly, the creation of
additional long-term employment opportunities;

deleted text begin (b) deleted text end new text begin (2) new text end the prospective benefits of the expenditure exceed the anticipated costs; and

deleted text begin (c) deleted text end new text begin (3) new text end in the case of assistance to private enterprise, the project will serve a sound
business purpose.

new text begin (b) new text end Each project must be approved by deleted text begin over one-half of all of the members of the
board and deleted text end the commissioner of Iron Range resources and rehabilitation new text begin after seeking a
recommendation from the board for the project new text end . 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 deleted text begin board deleted text end new text begin commissioner new text end may submit new text begin a
new text end supplemental deleted text begin projects deleted text end new text begin project new text end for approval at any time new text begin after seeking a recommendation for
the project from the board new text end .

Sec. 26.

Minnesota Statutes 2014, 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 new text begin commissioner after seeking a
recommendation from the new text end 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 deleted text begin two-thirds of all of the members of deleted text end new text begin the commissioner after
seeking a recommendation from new text end the board.

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 deleted text begin a unanimous vote of all members deleted text end new text begin the commissioner
after seeking unanimous approval new text end 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.

(g) Additionally, notwithstanding section 298.293, upon the approval of new text begin the
commissioner of Iron Range resources and rehabilitation, after seeking a recommendation
from new text end the board, money from the corpus of the trust may be expanded to purchase forest
lands within the taconite assistance area as provided in sections 298.22, subdivision 5a,
and 298.292, subdivision 2, clause (5).

Sec. 27.

Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read:

Subd. 4.

Temporary loan authority.

(a) new text begin After seeking a recommendation from new text end the
board new text begin , the commissioner of Iron Range resources and rehabilitation new text end may deleted text begin recommend that deleted text end new text begin
use new text end up to $7,500,000 from the corpus of the trust may be deleted text begin used deleted text end for loans, loan guarantees,
grants, or equity investments as provided in this subdivision. The money would be
available for loans for construction and equipping of facilities constituting (1) a value
added iron products plant, which may be either a new plant or a facility incorporated into
an existing plant that produces iron upgraded to a minimum of 75 percent iron content or
any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine
or minerals processing plant for any mineral subject to the net proceeds tax imposed
under section 298.015. A loan or loan guarantee under this paragraph may not exceed
$5,000,000 for any facility.

(b) Additionally, the deleted text begin board deleted text end new text begin commissioner of Iron Range resources and rehabilitation new text end
must reserve the first $2,000,000 of the net interest, dividends, and earnings arising
from the investment of the trust after June 30, 1996, to be used for grants, loans, loan
guarantees, or equity investments for the purposes set forth in paragraph (a). This amount
must be reserved until it is used as described in this subdivision.

(c) Additionally, the deleted text begin board deleted text end new text begin commissioner new text end may recommend that up to $5,500,000
from the corpus of the trust may be used for additional grants, loans, loan guarantees, or
equity investments for the purposes set forth in paragraph (a).

(d) The new text begin commissioner of Iron Range resources and rehabilitation, after seeking a
recommendation from the new text end board new text begin , new text end may require that deleted text begin it deleted text end new text begin the board new text end receive an equity percentage
in any project to which it contributes under this section.

Sec. 28.

Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read:

Subd. 2.

Projects; approval.

(a) Projects funded must be for:

(1) environmentally unique reclamation projects; or

(2) pit or plant repairs, expansions, or modernizations other than for a value added
iron products plant.

(b) deleted text begin To be proposed by the board, a project must be approved by deleted text end new text begin Before the
commissioner may propose a project, the commissioner must seek approval of new text end the board.
The money for a project may be spent only upon approval of the project by the governor.
The deleted text begin board deleted text end new text begin commissioner new text end may submit new text begin a new text end supplemental deleted text begin projects deleted text end new text begin project new text end for approval at any
time new text begin after seeking a recommendation for the project from the board new text end .

(c) The deleted text begin board deleted text end new text begin commissioner new text end may require that deleted text begin it deleted text end new text begin the board new text end receive an equity
percentage in any project to which it contributes under this section.

Sec. 29.

Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read:

Subd. 4.

Grant and loan fund.

(a) A fund is established to receive distributions
under section 298.28, subdivision 9b, and to make grants or loans as provided in this
subdivision. Any grant or loan made under this subdivision must new text begin first new text end be approved by
the new text begin commissioner after seeking a recommendation from the new text end board, established under
section 298.22.

(b) Distributions received in calendar year 2005 are allocated to the city of Virginia
for improvements and repairs to the city's steam heating system.

(c) Distributions received in calendar year 2006 are allocated to a project of the
public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
generating plants to the use of biomass products, such as wood.

(d) Distributions received in calendar year 2007 must be paid to the city of Tower to
be used for the East Two Rivers project in or near the city of Tower.

(e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
must be paid to St. Louis County for deposit in its county road and bridge fund to be
used for relocation of St. Louis County Road 715, commonly referred to as Pike River
Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
maintenance garage on Highway 135, further extending the lines to interconnect with the
city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
years are allocated for projects under section 298.223, subdivision 1.

Sec. 30.

Minnesota Statutes 2014, section 298.298, is amended to read:

298.298 LONG-RANGE PLAN.

Consistent with the policy established in sections 298.291 to 298.298, the Iron
Range Resources and Rehabilitation Board shall prepare and present to the governor and
the legislature by December 31, 2006, a long-range plan for the use of the Douglas J.
Johnson economic protection trust fund for the economic development and diversification
of the taconite assistance area defined in section 273.1341. No project shall be deleted text begin approved deleted text end new text begin
recommended new text end by the Iron Range Resources and Rehabilitation Board deleted text begin which deleted text end new text begin if the board
finds that the project new text end is not consistent with the goals and objectives established in the
long-range plan.

Sec. 31.

Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read:

Subd. 2.

Unmined iron ore; valuation petition.

When in the opinion of the duly
constituted authorities of a taxing district there are in existence reserves of unmined iron
ore located in such district, these authorities may petition the new text begin commissioner of new text end Iron Range
resources and rehabilitation deleted text begin Board deleted text end for authority to petition the county assessor to verify
the existence of such reserves and to ascertain the value thereof by drilling in a manner
consistent with established engineering and geological exploration methods, in order that
such taxing district may be able to forecast in a proper manner its future economic and
fiscal potentials. new text begin The commissioner may grant the authority to petition after seeking a
recommendation from the Iron Range Resources and Rehabilitation Board.
new text end