SF 5435

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/16/2024 09:07am

A bill for an act
relating to taxation; minerals; modifying minerals taxes, property taxes, and related
provisions; providing for transfers and distributions of proceeds; providing for
issuance of revenue bonds; amending Minnesota Statutes 2022, sections 273.135,
subdivision 2; 275.065, by adding a subdivision; 276.04, by adding a subdivision;
298.28, subdivision 8; 298.282, subdivision 1; 298.292, subdivision 2; Minnesota
Statutes 2023 Supplement, sections 298.018, subdivision 1; 298.28, subdivision
16.

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

Section 1.

Minnesota Statutes 2022, section 273.135, subdivision 2, is amended to read:

Subd. 2.

Reduction amount.

The amount of the reduction authorized by subdivision 1
shall be:

(a) In the case of property located within a municipality as defined under section 273.134,
paragraph (a), 66 percent of the tax, provided that the reduction shall not exceed the
maximum amounts specified in paragraph (c).

(b) In the case of property located within the boundaries of a school district which
qualifies as a tax relief area under section 273.134, paragraph (b), but which is outside the
boundaries of a municipality which meets the qualifications prescribed in section 273.134,
paragraph (a), 57 percent of the tax, provided that the reduction shall not exceed the
maximum amounts specified in paragraph (c).

(c) The maximum reduction of the tax is deleted text begin $315.10 deleted text end new text begin $515 new text end on property described in paragraph
(a) and deleted text begin $289.80 on property described in deleted text end paragraph (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with property taxes payable
in 2025.
new text end

Sec. 2.

Minnesota Statutes 2022, section 275.065, is amended by adding a subdivision to
read:

new text begin Subd. 3c. new text end

new text begin Notice of proposed taxes; property subject to chapter 276A. new text end

new text begin In the case of
property subject to the areawide tax under section 276A.06, subdivision 7, for both the
current year taxes and the proposed tax amounts, the net tax capacity portion of the taxes
shown for each taxing jurisdiction must be based on the property's total net tax capacity
multiplied by the jurisdiction's actual or proposed net tax capacity tax rate. In addition to
the tax amounts shown for each jurisdiction, the statement must include a line showing the
"fiscal disparities adjustment" equal to the total gross tax payable minus the sum of the tax
amounts shown for the individual taxing jurisdictions. The fiscal disparities adjustment may
be a negative number. If the fiscal disparities adjustment for either the current year taxes
or the proposed tax amount is a negative number, the percentage change must not be shown.
In all other respects the statement must fulfill the requirements of subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with proposed notices for
property taxes payable in 2025.
new text end

Sec. 3.

Minnesota Statutes 2022, section 276.04, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Contents of tax statements; property subject to chapter 276A. new text end

new text begin In the case
of property subject to the areawide tax under section 276A.06, subdivision 7, for both the
current year taxes and the previous year tax amounts, the net tax capacity portion of the tax
shown for each taxing jurisdiction must be based on the property's total net tax capacity
multiplied by the jurisdiction's net tax capacity tax rate. In addition to the tax amounts shown
for each jurisdiction, the statement must include a line showing the "fiscal disparities
adjustment" equal to the total gross tax payable minus the sum of the tax amounts shown
for the individual taxing jurisdictions for each year. The fiscal disparities adjustment may
be a negative number. In all other respects the statement must fulfill the requirements of
subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with proposed notices for
property taxes payable in 2025.
new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 298.018, subdivision 1, is amended
to read:

Subdivision 1.

Within taconite assistance area.

(a) The proceeds of the tax paid under
sections 298.015 and 298.016 on ores, metals, or minerals mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as follows:

(1) except as provided under paragraph (b), five percent to the city or town within which
the minerals or energy resources are mined or extracted, or within which the concentrate
was produced. If the mining and concentration, or different steps in either process, are
carried on in more than one taxing district, the commissioner shall apportion equitably the
proceeds among the cities and towns by attributing 50 percent of the proceeds of the tax to
the operation of mining or extraction, and the remainder to the concentrating plant and to
the processes of concentration, and with respect to each thereof giving due consideration
to the relative extent of the respective operations performed in each taxing district;

(2) ten percent to the taconite municipal aid account to be distributed as provided in
section 298.282, subdivisions 1 and 2, on the dates provided under this section;

(3) ten percent to the school district within which the minerals or energy resources are
mined or extracted, or within which the concentrate was produced. If the mining and
concentration, or different steps in either process, are carried on in more than one school
district, distribution among the school districts must be based on the apportionment formula
prescribed in clause (1);

(4) 20 percent to a group of school districts comprised of those school districts wherein
the mineral or energy resource was mined or extracted or in which there is a qualifying
municipality as defined by section 273.134, paragraph (b), in direct proportion to school
district indexes as follows: for each school district, its pupil units determined under section
126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted
net tax capacity per pupil unit for school districts receiving aid under this clause as calculated
pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution
to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that
portion of the distribution which its index bears to the sum of the indices for all school
districts that receive the distributions;

(5) ten percent to the county within which the minerals or energy resources are mined
or extracted, or within which the concentrate was produced. If the mining and concentration,
or different steps in either process, are carried on in more than one county, distribution
among the counties must be based on the apportionment formula prescribed in clause (1),
provided that any county receiving distributions under this clause shall pay one percent of
its proceeds to the Range Association of Municipalities and Schools;

(6) five percent to St. Louis County acting as the counties' fiscal agent to be distributed
as provided in sections 273.134 to 273.136;

(7) 20 percent to the commissioner of Iron Range resources and rehabilitation for the
purposes of section 298.22;

(8) three percent to the Douglas J. Johnson economic protection trust fund;

(9) seven percent to the taconite environmental protection fund; and

(10) ten percent to the commissioner of Iron Range resources and rehabilitation for
capital improvements to Giants Ridge Recreation Area.

(b) If the materials or energy resources are mined, extracted, or concentrated in School
District No. 2711, Mesabi East, then the amount under paragraph (a), clause (1), must instead
be distributed pursuant to this paragraph. The cities of Aurora, Babbitt, Ely, and Hoyt Lakes
must each receive 20 percent of the amount. The city of Biwabik and Embarrass Township
must each receive ten percent of the amount.

(c) For the first five years that tax paid under section 298.015, subdivisions 1 and 2, is
distributed under this subdivision, ten percent of the total proceeds distributed in each year
must first be distributed pursuant to this paragraph. The remaining 90 percent of the total
proceeds distributed in each of those years must be distributed as outlined in paragraph (a).
Of the amount available under this paragraph, the cities of Aurora, Babbitt, Ely, and Hoyt
Lakes must each receive 20 percent. Of the amount available under this paragraph, the city
of Biwabik and Embarrass Township must each receive ten percent. new text begin This paragraph applies
only to tax paid by a person engaged in the business of mining within the area described in
section 273.1341, clauses (1) and (2).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2025 distribution.
new text end

Sec. 5.

Minnesota Statutes 2022, section 298.28, subdivision 8, is amended to read:

Subd. 8.

Range Association of Municipalities and Schools.

deleted text begin .30 deleted text end new text begin 0.40 new text end cent per taxable
ton shall be paid to the Range Association of Municipalities and Schools, for the purpose
of providing an areawide approach to problems which demand coordinated and cooperative
actions and which are common to those areas of northeast Minnesota affected by operations
involved in mining iron ore and taconite and producing concentrate therefrom, and for the
purpose of promoting the general welfare and economic development of the cities, towns,
and school districts within the Iron Range area of northeast Minnesota.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2024 distribution.
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 298.28, subdivision 16, is amended
to read:

Subd. 16.

Transfer.

Of the amount annually distributed to the Douglas J. Johnson
Economic Protection Trust Fund under this section, deleted text begin $3,500,000 deleted text end new text begin the following amounts new text end shall
be transferred to the Iron Range school consolidation and cooperatively operated school
account under subdivision 7a new text begin : for distribution year 2024, $6,250,000; for distribution year
2025 through distribution year 2029, $6,500,000; for distribution year 2030 through
distribution year 2034, $5,500,00; for distribution year 2035 and distribution year 2036,
$5,000,000; and for distribution year 2037 through distribution year 2041, $3,500,000 new text end . Any
remaining amount of the amount annually distributed to the Douglas J. Johnson Economic
Protection Trust Fund shall be transferred to the Iron Range resources and rehabilitation
account under subdivision 7. The transfers under this subdivision must be made within ten
days of the August payment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2024 distribution.
new text end

Sec. 7.

Minnesota Statutes 2022, section 298.282, subdivision 1, is amended to read:

Subdivision 1.

Distribution of taconite municipal aid account.

(a) The amount
deposited with the county as provided in section 298.28, subdivision 3, must be distributed
as provided by this section among: (1) the municipalities located within a taconite assistance
area under section 273.1341 that meet the criteria of section 273.1341, clause (1) or (2); (2)
a township that contains a state park consisting primarily of an underground iron ore mine;
(3) a city located within five miles of that state park; and (4) Breitung Township in St. Louis
County, each being referred to in this section as a qualifying municipality. The distribution
to Breitung Township under this subdivision shall be deleted text begin $15,000 deleted text end new text begin $25,000 new text end annually.

(b) The amount deposited in the state general fund as provided in section 298.018,
subdivision 1, must be distributed in the same manner as provided under paragraph (a),
except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the
dates provided under section 298.018, subdivision 1a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2024 distribution.
new text end

Sec. 8.

Minnesota Statutes 2022, section 298.292, subdivision 2, is amended to read:

Subd. 2.

Use of money.

(a) 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 new text begin , including bonds authorized
by the legislature to be repaid from the distributions under section 298.28, subdivision 7a new text end ;

(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, after consultation with the advisory board. The net proceeds must be deposited
in the trust fund for the purposes and uses of this section.

(b) Money from the trust fund shall be expended only in deleted text begin or for the benefit of deleted text end the taconite
assistance area defined in section 273.1341.

(c) Money devoted to the trust fund under this section shall not be expended, appropriated,
or transferred from the trust fund for any purpose except as provided in this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9. new text begin IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER;
BONDS AUTHORIZED IN 2024.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance; purpose. new text end

new text begin (a) Notwithstanding any provision of Minnesota
Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
rehabilitation shall, in 2024, issue revenue bonds in a principal amount of up to $49,000,000
plus an amount sufficient to pay costs of issuance in one or more series, and thereafter may
issue bonds to refund those bonds. The proceeds of the bonds must be used to pay the costs
of issuance and to make distributions pursuant this section. The commissioner of Iron Range
resources and rehabilitation must distribute these transferred funds as outlined in this section.
In order to receive a distribution, a recipient must submit to the commissioner a plan of how
the distribution will be spent and the commissioner must ensure that the plan matches the
intended use outlined in this section. The plan must be submitted in a form and manner
determined by the commissioner. The uses listed are not subject to review or recommendation
by the Iron Range Resources and Rehabilitation Board. By December 31, 2025, each recipient
must report to the commissioner how the distribution received under this section was spent.
If a recipient's plan is submitted and approved, the commissioner must distribute the funds
for the uses outlined in subdivision 3. The bonds issued under this section do not constitute
public debt as that term is defined in article XI, section 4 of the Minnesota Constitution,
and as such are not subject to its provisions.
new text end

new text begin (b) Funds under this section are available for four years from the date the bonds are
issued. Any unexpended funds after that date cancel to the taconite environmental fund
under Minnesota Statutes, section 298.28, subdivision 9b.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin (a) There is annually appropriated from the distribution of the
taconite production tax revenues under Minnesota Statutes, section 298.28, subdivision 7a,
prior to the calculation of any amount remaining, an amount sufficient to pay when due the
principal and interest on the bonds issued pursuant to subdivision 1.
new text end

new text begin (b) If in any year the amount available under paragraph (a) is insufficient to pay principal
and interest due on the bonds in that year, an additional amount is appropriated from the
Douglas J. Johnson economic protection trust fund to make up the deficiency.
new text end

new text begin (c) The appropriation under this subdivision terminates upon payment or maturity of
the last of the bonds issued under this section.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin (a) The commissioner of Iron Range resources and rehabilitation must
distribute funds available for distribution under subdivision 1 for the following uses:
new text end

new text begin (1) $160,000 to the Grand Portage Band of Lake Superior Chippewa to construct a
playground;
new text end

new text begin (2) $3,600,000 to the Mesabi Fit Coalition for the renovation, reconstruction, and
expansion of the former Mesabi Family YMCA in the city of Mountain Iron;
new text end

new text begin (3) $950,000 to the Buyck Volunteer Fire Department for design, engineering, and
construction of a new fire and training hall and related equipment;
new text end

new text begin (4) $750,000 to the Voyageur Trail Society for a joint maintenance facility with Voyageur
Country ATV in the city of Orr;
new text end

new text begin (5) $2,250,000 to Cook County, of which $250,000 must be spent to preserve affordable
housing units for seniors in the city of Grand Marais and $2,000,000 must be used to
construct, furnish, and equip a solid waste transfer station in the county;
new text end

new text begin (6) $1,200,000 to the Northland Learning Center for construction costs;
new text end

new text begin (7) $2,720,000 to the city of Chisholm, of which $520,000 must be used for the renovation
of the Chisholm Ice Arena facility and parking and the remaining amount must be used for
the public safety works;
new text end

new text begin (8) $1,000,000 to the city of Gilbert for the Gilbert Community Center;
new text end

new text begin (9) $360,000 to the city of Biwabik for housing infrastructure;
new text end

new text begin (10) $3,000,000 to the city of Tower for water management infrastructure projects;
new text end

new text begin (11) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct
publicly owned infrastructure including sewers, water systems, utility extensions, street
construction, wastewater treatment, stormwater management systems, sidewalks, and
compliance with the Americans with Disabilities Act;
new text end

new text begin (12) $2,275,000 to St. Louis County for the development of the Canyon Integrated Solid
Waste Management Campus;
new text end

new text begin (13) $4,000,000 to the city of Eveleth to design, engineer, and construct public utilities
in its business park and construction of the Hat Trick Avenue slip ramp;
new text end

new text begin (14) $700,000 to the city of Meadowlands for costs related to park improvements and
a community center;
new text end

new text begin (15) $600,000 to School District No. 2142, St. Louis County, of which $400,000 must
be used for septic system upgrades at South Ridge School and $200,000 must be used for
cafeteria renovations at Northeast Range School in Babbitt and Tower Elementary School
in Tower;
new text end

new text begin (16) $250,000 to the city of Two Harbors for band stand repairs and Odegard Park and
Trail restoration;
new text end

new text begin (17) $720,000 to the Central Iron Range Sanitary Sewer District for infrastructure
projects;
new text end

new text begin (18) $5,240,000 to the Minnesota Discovery Center to design, construct, renovate,
furnish, and repair facilities, including HVAC upgrades, demolition, and compliance with
the Americans with Disabilities Act, at the Minnesota Discovery Center in the city of
Chisholm, and for historical research funding;
new text end

new text begin (19) $4,200,000 to the commissioner of Iron Range resources and rehabilitation for the
design, engineering, and upgrades or replacement of chair lifts and for the design,
engineering, demolition, and construction of a nordic and welcome center at the Giants
Ridge Recreation Area;
new text end

new text begin (20) $250,000 to Independent School District No. 696, Ely, for baseball field renovation;
new text end

new text begin (21) $500,000 to the city of Mountain Iron for the Outdoor Recreation Center;
new text end

new text begin (22) $200,000 to Cook County Higher Education Board for costs to bring commercial
drivers' licenses and trades training to the region along with educational training and academic
support to remote populations;
new text end

new text begin (23) $200,000 to Save Our Ship, Inc. for renovation costs;
new text end

new text begin (24) $3,000,000 to Hibbing Public Utilities for water infrastructure projects;
new text end

new text begin (25) $400,000 to Veterans On The Lake for demolition of existing structures and the
building of a triplex that is compliant with the Americans with Disabilities Act;
new text end

new text begin (26) $350,000 to the city of Eveleth for the Hippodrome renovation;
new text end

new text begin (27) $500,000 to the Great Expectations School Foundation in Cook County for school
facilities construction;
new text end

new text begin (28) $225,000 to the Minnesota Forest Zone Trappers Association to plan, engineer,
purchase land, and develop the Sportsperson Training and Development Center;
new text end

new text begin (29) $200,000 to the Sturgeon Chain Lake Association to update the engineering and
hydrology study of the lakes, for regulatory and community outreach, and for preparing
recommendations to the commissioner of natural resources related to bank stabilization and
maintenance;
new text end

new text begin (30) $300,000 to the Northern Lights Music Festival to support programs, of this amount
$100,000 is available each year in calendar years 2025, 2026, and 2027;
new text end

new text begin (31) $250,000 to Cherry Township for recreational facilities upgrades and lights;
new text end

new text begin (32) $350,000 to the East Range Developmental Achievement Center for building
renovations;
new text end

new text begin (33) $500,000 to the Northland Foundation for grants or loans to (i) businesses or resorts
that were economically damaged by floods that occurred in 2022 or 2023 and which are
eligible under article 5 of the Canadian border counties economic relief program, or (ii)
outfitters in the border region who experienced either more than a 50 percent reduction in
Boundary Waters Canoe Area Wilderness permits obtained by their customers between
2019 and 2021, or a 50 percent reduction between 2019 and 2021 in trips across the fee-based
mechanical portages into the Boundary Waters Canoe Area Wilderness or Quetico Provincial
Park. Businesses may be awarded a maximum grant under this clause of up to $50,000,
must be located within the taconite assistance area, as defined under Minnesota Statutes,
section 273.1341, and must not have received a grant under the Canadian border counties
economic relief program. The Northland Foundation may retain up to four percent of the
amount under this clause for administration;
new text end

new text begin (34) $100,000 to Crystal Bay Township for a septic project at the Clair Nelson
Community Center;
new text end

new text begin (35) $25,000 to the Northwoods Friends of the Arts in the city of Cook for facility
upgrades and programs;
new text end

new text begin (36) $50,000 to the Bois Forte Band of Chippewa for food shelf expenses;
new text end

new text begin (37) $100,000 to the Lake Vermilion Cultural Center to improve and renovate the facility
and its displays in Tower;
new text end

new text begin (38) $50,000 to the Lyric Center for the Arts in Virginia for repairs and renovation;
new text end

new text begin (39) $50,000 to the Pioneer Mine historical site for maintenance and displays in Ely;
new text end

new text begin (40) $3,775,000 to the commissioner of Iron Range resources and rehabilitation to create
a mountain bike system in northern St. Louis County;
new text end

new text begin (41) $150,000 to the Lake Superior School District to support an emergency preparedness
career introduction program; and
new text end

new text begin (42) $500,000 for grants of $25,000 distributed pursuant to paragraph (b).
new text end

new text begin (b) Of the amount under paragraph (a), clause (42), grants of $25,000 to be used for trail
grooming costs or equipment must be made available to the following entities:
new text end

new text begin (1) Alborn Dirt Devils ATV Club;
new text end

new text begin (2) Wild Country ATV Club;
new text end

new text begin (3) Ely Igloo Snowmobile Club;
new text end

new text begin (4) CC Riders Snowmobile Club;
new text end

new text begin (5) PathBlazers Snowmobile Club;
new text end

new text begin (6) Cook Timberwolves Snowmobile Club;
new text end

new text begin (7) Crane Lake Voyageurs Club;
new text end

new text begin (8) Pequaywan Area Trail Blazers Snowmobile Club;
new text end

new text begin (9) Eveleth Trail Hawks Snowmobile Club;
new text end

new text begin (10) Ranger Snowmobile/ATV Club;
new text end

new text begin (11) Silver Trail Riders Snowmobile and ATV Club;
new text end

new text begin (12) Voyageur Snowmobile Club;
new text end

new text begin (13) Mesabi Sno Voyageurs;
new text end

new text begin (14) Quad Cities ATV Club;
new text end

new text begin (15) Prospector ATV Club;
new text end

new text begin (16) Northern Traxx ATV Club;
new text end

new text begin (17) Finland Snowmobile and ATV Club;
new text end

new text begin (18) Babbitt ATV and Snowmobile Club;
new text end

new text begin (19) Cook County ATV Club; and
new text end

new text begin (20) Vermilion Penguins Snowmobile Club.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies beginning with the 2024 distribution under Minnesota Statutes, section 298.28.
new text end

Sec. 10. new text begin IRON RANGE RESOURCES AND REHABILITATION COMMISSIONER;
BONDS AUTHORIZED IN 2025.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance; purpose. new text end

new text begin (a)Notwithstanding any provision of Minnesota
Statutes, chapter 298, to the contrary, the commissioner of Iron Range resources and
rehabilitation shall, in 2025, issue revenue bonds in a principal amount of up to $30,500,000
plus an amount sufficient to pay costs of issuance in one or more series, and thereafter may
issue bonds to refund those bonds. The proceeds of the bonds must be used to pay the costs
of issuance and to make distributions pursuant to this section. The commissioner of Iron
Range resources and rehabilitation must distribute these transferred funds as outlined in
this section. In order to receive a distribution, a recipient must submit to the commissioner
a plan of how the distribution will be spent and the commissioner must ensure that the plan
matches the intended use outlined in this section. The plan must be submitted in a form and
manner determined by the commissioner. The uses listed are not subject to review or
recommendation by the Iron Range Resources and Rehabilitation Board. By December 31,
2026, each recipient must report to the commissioner how the distribution received under
this section was spent. If a recipient's plan is submitted and approved, the commissioner
must distribute the funds for the uses outlined in subdivision 3. The bonds issued under this
section do not constitute public debt as that term is defined in Article XI, section 4 of the
Minnesota Constitution, and as such are not subject to its provisions.
new text end

new text begin (b) Funds under this section are available for four years from the date the bonds are
issued. Any unexpended funds after that date cancel to the taconite environmental fund
under Minnesota Statutes, section 298.28, subdivision 9b.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin (a) There is annually appropriated from the distribution of the
taconite production tax revenues under Minnesota Statutes, section 298.28, subdivision 7a,
prior to the calculation of any amount remaining, an amount sufficient to pay when due the
principal and interest on the bonds issued pursuant to subdivision 1.
new text end

new text begin (b) If in any year the amount available under paragraph (a) is insufficient to pay principal
and interest due on the bonds in that year, an additional amount is appropriated from the
Douglas J. Johnson economic protection trust fund to make up the deficiency.
new text end

new text begin (c) The appropriation under this subdivision terminates upon payment or maturity of
the last of the bonds issued under this section.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin The commissioner of Iron Range resources and rehabilitation must
distribute funds available for distribution under subdivision 1 for the following uses:
new text end

new text begin (1) $5,000,000 to the Minnesota Discovery Center to design, construct, renovate, furnish,
and repair facilities, including HVAC upgrades, demolition, and compliance with the
Americans with Disabilities Act, at the Minnesota Discovery Center in the city of Chisholm,
and for historical research funding;
new text end

new text begin (2) $5,800,000 to the commissioner of Iron Range resources and rehabilitation for the
design, engineering, and upgrades or replacement of chair lifts and for the design,
engineering, demolition, and construction of a nordic and welcome center at the Giants
Ridge Recreation Area;
new text end

new text begin (3) $600,000 to the Central Iron Range Sanitary Sewer District for infrastructure projects;
new text end

new text begin (4) $700,000 to the city of Eveleth to design, engineer, and construct public utilities in
the city of Eveleth's business park and construction of the Hat Trick Avenue slip ramp;
new text end

new text begin (5) $1,200,000 to Independent School District No. 2909, Rock Ridge, for demolition of
the James Madison Elementary School in Virginia;
new text end

new text begin (6) $500,000 to the city of Buhl for infrastructure projects;
new text end

new text begin (7) $2,300,000 to St. Louis and Lake Counties Regional Railroad Authority to design,
engineer, acquire right-of-way, and construct the Mesabi Trail Spur from Aurora to Hoyt
Lakes;
new text end

new text begin (8) $2,000,000 to the city of Mountain Iron for infrastructure projects including but not
limited to Enterprise Drive North East infrastructure development, water main and other
infrastructure in the city, waste water plant improvements to comply with new permits,
supervisory control and data acquisition on lift stations, and recreation projects;
new text end

new text begin (9) $3,000,000 to the city of Silver Bay to design, engineer, construct, and reconstruct
publicly owned infrastructure including sewers, water systems, utility extensions, street
construction, wastewater treatment, stormwater management systems, sidewalks, and
compliance with the Americans with Disabilities Act;
new text end

new text begin (10) $5,000,000 to Independent School District No. 696, Ely, for planning, design,
engineering, demolition, and construction related to the district's athletic complex;
new text end

new text begin (11) $1,080,000 to the Northland Learning Center to construct the Alternative Learning
Center on the campus in the city of Mountain Iron;
new text end

new text begin (12) $1,000,000 for the city of Biwabik for a public safety facility;
new text end

new text begin (13) $1,820,000 to Hibbing Public Utilities for water infrastructure projects; and
new text end

new text begin (14) $500,000 to St. Louis County for the demolition of the public school in Hoyt Lakes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies beginning with the 2025 distribution under Minnesota Statutes, section 298.28.
new text end

Sec. 11. new text begin TRANSFER 2024 DISTRIBUTION ONLY; TACONITE ECONOMIC
DEVELOPMENT FUND.
new text end

new text begin Of the funds distributed to the taconite economic development fund under Minnesota
Statutes, section 298.28, subdivision 9a, for the 2024 distribution only, an amount equal to
$300,000 shall be transferred from the taconite economic development fund to the city of
Chisholm for the Senator David Tomassoni Bridge of Peace. The transfer must be made
within ten days of the August 2024 payment. If less than $300,000 is distributed to the
taconite economic development fund in 2024, distributions to the fund in future years must
be transferred to the city of Chisholm, pursuant to this paragraph, until the total amount
transferred equals $300,000.
new text end

new text begin EFFECTIVE DATE. new text end

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