2001 Minnesota Statutes

     298.296 Operation of fund. 

    Subdivision 1.    Project approval.  The board shall by 
 August 1 of each year 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 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 
 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.  

    Subd. 2.    Expenditure of funds.  Before January 1, 
 2003, 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.  Additionally, upon 
 recommendation by the board, up to $13,000,000 from the corpus 
 of the trust may be made available for use as provided in 
 subdivision 4, and up to $10,000,000 from the corpus of the 
 trust may be made available for use as provided in section 
 298.2961.  On and after January 1, 2003, 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, 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. 

    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.  

    Subd. 4.    Temporary loan authority.  (a) The board may 
 recommend that up to $7,500,000 from the corpus of the trust may 
 be used for loans, 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 under this paragraph may not exceed $5,000,000 for any 
 facility.  

    (b) Additionally, the board 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 additional grants for the purposes set forth in paragraph 
 (a).  This amount must be reserved until it is used for the 
 grants. 

    (c) Additionally, the board may recommend that up to 
 $5,500,000 from the corpus of the trust may be used for 
 additional grants for the purposes set forth in paragraph (a). 

    (d) The board may require that it receive an equity 
 percentage in any project to which it contributes under this 
 section. 

    HIST: 2Sp1982 c 2 s 9; 1983 c 46 s 4; 1984 c 654 art 2 s 121; 
 1987 c 386 art 8 s 3; 1993 c 369 s 112; 1994 c 587 art 6 s 6,7; 
 1995 c 264 art 7 s 6; 1996 c 471 art 12 s 6,7; 1997 c 231 art 8 
 s 10; 1998 c 389 art 10 s 20; 1999 c 243 art 9 s 4; 1Sp2001 c 5 
 art 6 s 32