298.296 OPERATION OF FUND.
Subdivision 1. Project approval.
The board and commissioner 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
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
Each 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.
(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
, may be taken from the corpus of the trust.
(b) 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
(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
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 the board upon an affirmative vote of at least ten of its members.
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 a unanimous vote of all members 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
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
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, 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
. A loan or loan guarantee 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 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 board 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 board may require that it receive an equity percentage in any project to which it
contributes under this section.
History: 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; 2002 c 377 art 8 s 15;
2003 c 127 art 11 s 10,12; 2006 c 281 art 4 s 20