Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                         CHAPTER 46--S.F.No. 96
           An act relating to the northeast Minnesota economic 
          protection trust fund; abolishing the trust board; 
          authorizing increased current expenditures; providing 
          for administration of the fund; appropriating money; 
          amending Minnesota Statutes 1982, sections 298.292; 
          298.293; 298.294; 298.296; 298.297; and 298.298; and 
          Laws 1982, Second Special Session, chapter 2, section 
          14; repealing Minnesota Statutes 1982, section 298.295.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 298.292, is 
amended to read: 
    298.292 [POLICY.] 
    The legislature is cognizant of the severe economic 
dislocations and widespread unemployment that result when a 
single industry on which an area is largely dependent, 
experiences a drastic reduction in activity.  The northeast 
Minnesota economic protection trust fund is hereby created to be 
devoted to economic rehabilitation and diversification of 
industrial enterprises where these conditions ensue as the 
result of the decline of such a single industry.  Priority shall 
be given to using the northeast Minnesota economic protection 
trust fund for the following purposes:  
    (a) projects and programs that are designed to create and 
maintain productive, permanent, skilled employment, including 
employment in technologically innovative businesses;  
    (b) projects and programs to encourage diversification of 
the economy and to promote the development of minerals, 
alternative energy sources utilizing indigenous fuels, forestry, 
small business, and tourism;  
    (c) projects and programs for which technological and 
economic feasibility have been demonstrated; and 
    (d) loans, loan guarantees, interest buy-downs and other 
forms of participation with private sources of financing in 
preference to grants, 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 shall be no less than eight percent.  
    Money from the trust fund shall be expended only in or for 
the benefit of the tax relief area defined in section 273.134.  
    Sec. 2.  Minnesota Statutes 1982, section 298.293, is 
amended to read: 
    298.293 [DECLARATION OF EMERGENCY; EXPENDING FUNDS.] 
    The funds provided by section 298.28, subdivision 1, clause 
(10), relating to the northeast Minnesota economic protection 
trust fund, except money expended pursuant to Laws 1982, Second 
Special Session, Chapter 2, Sections 8 to 14, shall not be 
expended prior to (a) in the case of expenditures proposed 
before June 30, 1987, a request by the board of trustees of the 
northeast Minnesota economic protection trust fund that the 
governor declare an economic emergency in northeast Minnesota as 
a result of a decline in mineral-related activities; (b) a 
declaration by the governor to the effect that the economic 
situation of northeast Minnesota requires remedial action by the 
legislature as a result of a decline in mineral-related 
activities, and (c) authorization of expenditure of the funds by 
the legislature, provided that the funds to be expended shall 
only in an amount that does not exceed the amount sum of the net 
interest, dividends, and earnings arising from the investment of 
the trust for the preceding 12 calendar months from the date of 
the authorization plus, for fiscal year 1983, $10,000,000 from 
the corpus of the fund.  The governor shall recommend to the 
legislature those measures that he believes will be appropriate 
in order to accomplish the purpose of his declaration.  The 
funds may be spent only in or for the benefit of those areas 
that are tax relief areas as defined in section 273.134.  If 
during any year the taconite property tax account under sections 
273.134 to 273.136 does not contain sufficient funds to pay the 
property tax relief specified in Laws 1977, Chapter 423, Article 
X, Section 4, there is appropriated from this trust fund to the 
relief account sufficient funds to pay the relief specified in 
Laws 1977, Chapter 423, Article X, Section 4. 
    Sec. 3.  Minnesota Statutes 1982, section 298.294, is 
amended to read: 
    298.294 [INVESTMENT OF FUND.] 
    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 on the first day of each month 
to the trust and shall be included and become part of the trust 
fund and.  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 the day following final 
enactment, are appropriated from the trust fund to the board of 
trustees of the northeast Minnesota economic protection trust 
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.  
     Sec. 4.  Minnesota Statutes 1982, section 298.296, is 
amended to read: 
    298.296 [POWERS AND DUTIES OF THE BOARD OPERATION OF FUND.] 
    Subdivision 1.  [PROJECT APPROVAL.] The board shall by 
August 1 of each year prior to 1987 prepare a list of projects 
to be funded from the northeast Minnesota economic protection 
trust with necessary supporting information including 
description of the projects, plans, and cost estimates.  These 
projects shall be consistent with the priorities established in 
section 298.292 and shall not be approved by the board unless it 
finds that:  
    (a) the project will materially assist, directly or 
indirectly, the creation of additional long-term employment 
opportunities;  
    (b) the prospective benefits of the expenditure exceed the 
anticipated costs; and 
    (c) in the case of assistance to private enterprise, the 
project will serve a sound business purpose.  
    To be proposed by the board, a project must be approved by 
at least ten eight iron range resources and rehabilitation board 
members and the commissioner of iron range resources and 
rehabilitation.  The list of projects shall be submitted to the 
legislative advisory commission for its review.  The list with 
the recommendation of the legislative advisory commission shall 
be submitted to the governor, who shall, by November 15 of each 
year, approve or disapprove, or return for further 
consideration, each project.  The money for a project may be 
expended only upon approval of the project by the governor.  
    The board may submit supplemental projects for approval at 
any time.  
    During fiscal year 1983, the board shall give priority 
consideration to (1) providing grants to counties, cities, 
townships, and school districts to meet the full costs of 
converting the heating systems of buildings owned by those local 
units of government and located in tax relief areas defined in 
section 273.134 to use of fiber fuels generally available in the 
area; (2) providing loans to private businesses at an annual 
rate of interest of 10 percent for up to one-half of the costs 
of conversion of their heating systems in buildings located in 
the tax relief area to use of such fiber fuels; (3) providing 
loans at an annual rate of interest of 10 percent to enterprises 
engaged in the development and processing of fiber fuels in the 
tax relief area for up to one-half of the costs of initiating 
the actual processing operation; and (4) financing publicly 
operated projects for development and processing of indigenous 
fiber fuels.  
    Subd. 2.  [EXPENDITURE OF FUNDS.] Before January 1, 2002, 
funds may be expended on projects and for administration of the 
trust fund, including reimbursement of salary and other expenses 
incurred by the office of the governor pursuant to section 
298.295, subdivision 6, and salaries and other expenses of the 
trust board, 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.  On and after January 1, 2002, funds may be 
expended on projects and for administration from any assets of 
the trust.  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.  
    Principal and interest received in repayment of loans made 
pursuant to this section 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.  
    Subd. 3.  [ADMINISTRATION.] The commissioner and staff of 
the iron range resources and rehabilitation board shall 
administer the program under which funds are expended pursuant 
to sections 298.292 to 298.298.  
    Sec. 5.  Minnesota Statutes 1982, section 298.297, is 
amended to read: 
    298.297 [ADVISORY COMMITTEES.] 
    Subject to the provisions of section 15.059, subdivisions 1 
to 4, the governor, with the advice of the trust board, Before 
submission of a project to the board, the commissioner of iron 
range resources and rehabilitation shall appoint a technical 
advisory committee consisting of no one or more than nine 
persons who collectively are knowledgeable in the areas of 
finance, banking, taxation, business management, economics, law, 
economic development, minerals, forestry, tourism, technological 
innovation, and peat and alternative energy source utilization. 
Each proposal for funding submitted to the board shall be 
evaluated by the technical advisory committee with respect to 
conformance with the policies, criteria, and priorities 
contained in sections 298.292 and 298.296 related to the 
objectives of the proposal.  Members of the committees shall be 
compensated as provided in section 15.059, subdivision 3.  The 
board shall not act on a proposal until it has received the 
evaluation and recommendations of the technical advisory 
committee or until 15 days have elapsed since the proposal was 
transmitted to the advisory committee, whichever occurs first.  
    Sec. 6.  Minnesota Statutes 1982, 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 trust iron range resources and rehabilitation 
board shall prepare and present to the governor and the 
legislature by January 1, 1984 a long range plan for the use of 
the northeast Minnesota economic protection trust fund for the 
economic development and diversification of the tax relief area 
defined in section 273.134.  The iron range resources and 
rehabilitation board shall, before November 15 of each even 
numbered year, prepare a report to the governor and legislature 
updating and revising this long range plan and reporting on the 
iron range resources and rehabilitation board's progress on 
those matters assigned to it by law.  After January 1, 1984, no 
project shall be approved by the iron range resources and 
rehabilitation board which is not consistent with the goals and 
objectives established in the long range plan. 
    Sec. 7.  Laws 1982, Second Special Session, chapter 2, 
section 14, is amended to read: 
    Sec. 14.  [SUPPLEMENTAL APPROPRIATION.] 
    Notwithstanding the provisions of Minnesota Statutes, 
sections 298.293 or 298.294, or any other law there is 
appropriated to the iron range resources and rehabilitation 
board from the net interest, dividends, and other earnings of 
the northeast Minnesota economic protection trust fund the sum 
of $5,000,000 for the purpose of continuing the emergency public 
works job program established in section 12.  Expenditure of 
this money, or any portion thereof, is contingent upon approval 
by a majority of the members of the board of trustees of the 
northeast Minnesota economic protection trust fund iron range 
resources and rehabilitation board.  The determination of the 
trust board that money may be expended from this appropriation 
shall be approved by the governor prior to the expenditure of 
any money under this section, and the legislative advisory 
commission shall make a recommendation on the expenditure.  Any 
money not expended from this appropriation by July 1, 1983, and 
any interest earned on it, shall revert to the trust fund. 
    Sec. 8.  [REPEALER.] 
    Minnesota Statutes 1982, section 298.295 is repealed.  
    Sec. 9.  [EFFECTIVE DATE.] 
    Sections 1 to 8 are effective the day following final 
enactment. 
    Approved April 20, 1983