Bill Text: MN SF252 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Iron range resources and rehabilitation board (IRRRB) provisions modification
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2013-02-11 - Second reading [SF252 Detail]
Download: Minnesota-2013-SF252-Introduced.html
1.2relating to economic development; regulating the Iron Range Resources and
1.3Rehabilitation Board; modifying board composition and approval provisions;
1.4amending Minnesota Statutes 2012, sections 116J.424; 298.22, subdivisions 5a,
1.58, 10, 11, by adding a subdivision; 298.221; 298.2211, subdivision 3; 298.2213,
1.6subdivision 4; 298.2214, subdivision 6; 298.223, subdivisions 1, 2; 298.227;
1.7298.28, subdivision 9d; 298.292, subdivision 2; 298.294; 298.296, subdivisions
1.81, 2; 298.2961, subdivisions 2, 4, 5; repealing Minnesota Statutes 2012, section
1.9298.22, subdivision 2.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2012, section 116J.424, is amended to read:
1.12116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
1.13CONTRIBUTION.
1.14The commissioner of the Iron Range Resources and Rehabilitation Board with
1.15approval byat least seven Iron Range Resources and Rehabilitation Board members the
1.16board, shall provide an equal match for any loan or equity investment made for a facility
1.17located in the tax relief area defined in section273.134, paragraph (b) , by the Minnesota
1.18minerals 21st century fund created by section116J.423 . The match may be in the form
1.19of a loan or equity investment, notwithstanding whether the fund makes a loan or equity
1.20investment. The state shall not acquire an equity interest because of an equity investment
1.21or loan by the board and the board at its sole discretion shall decide what interest it acquires
1.22in a project. The commissioner of employment and economic development may require a
1.23commitment from the board to make the match prior to disbursing money from the fund.
1.24 Sec. 2. Minnesota Statutes 2012, section 298.22, is amended by adding a subdivision
1.25to read:
2.1 Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range
2.2Resources and Rehabilitation Board consists of the state senators and representatives
2.3elected from state senatorial or legislative districts in which one-third or more of
2.4the residents reside in a taconite assistance area as defined in section 273.1341. All
2.5expenditures and projects made by the commissioner shall first be submitted to the
2.6board for approval. The expenses of the board shall be paid by the state from the funds
2.7raised pursuant to this section. Members of the board may be reimbursed for expenses
2.8in the manner provided in sections 3.099, subdivision 1, and 3.101, and may receive per
2.9diem payments during the interims between legislative sessions in the manner provided
2.10in section 3.099, subdivision 1.
2.11 Sec. 3. Minnesota Statutes 2012, section 298.22, subdivision 5a, is amended to read:
2.12 Subd. 5a. Forest trust. The commissioner, uponthe affirmative vote of at least
2.13seven Iron Range Resources and Rehabilitation Board members approval by the board,
2.14may purchase forest lands in the taconite assistance area defined in under section273.1341
2.15with funds specifically authorized for the purchase. The acquired forest lands must be
2.16held in trust for the benefit of the citizens of the taconite assistance area as the Iron Range
2.17Miners' Memorial Forest. The forest trust lands shall be managed and developed for
2.18recreation and economic development purposes. The commissioner, uponthe affirmative
2.19vote of at least seven Iron Range Resources and Rehabilitation Board members approval
2.20by the board, may sell forest lands purchased under this subdivision if the board finds that
2.21the sale advances the purposes of the trust. Proceeds derived from the management or sale
2.22of the lands and from the sale of timber or removal of gravel or other minerals from these
2.23forest lands shall be deposited into an Iron Range Miners' Memorial Forest account that is
2.24established within the state financial accounts. Funds may be expended from the account
2.25upon approval byat least seven Iron Range Resources and Rehabilitation Board members
2.26 the board, to purchase, manage, administer, convey interests in, and improve the forest
2.27lands.By an affirmative vote of at least seven Iron Range Resources and Rehabilitation
2.28Board members With approval by the board, money in the Iron Range Miners' Memorial
2.29Forest account may be transferred into the corpus of the Douglas J. Johnson economic
2.30protection trust fund established under sections298.291 to
298.294 . The property acquired
2.31under the authority granted by this subdivision and income derived from the property or
2.32the operation or management of the property are exempt from taxation by the state or its
2.33political subdivisions while held by the forest trust.
2.34 Sec. 4. Minnesota Statutes 2012, section 298.22, subdivision 8, is amended to read:
3.1 Subd. 8. Spending priority. In making or approving any expenditures on programs
3.2or projects, the commissioner and the board shall give the highest priority to programs
3.3and projects that target relief to those areas of the taconite assistance area as defined in
3.4section273.1341 , that have the largest percentages of job losses and population losses
3.5directly attributable to the economic downturn in the taconite industry since the 1980s.
3.6The commissioner and the board shall compare the 1980 population and employment
3.7figures with the 2000 population and employment figures, and shall specifically consider
3.8the job losses in 2000 and 2001 resulting from the closure of LTV Steel Mining Company,
3.9in making or approving expenditures consistent with this subdivision, as well as the areas
3.10of residence of persons who suffered job loss for which relief is to be targeted under this
3.11subdivision. The commissioner may lease, for a term not exceeding 50 years and upon
3.12the terms determined by the commissioner and approved byat least seven Iron Range
3.13Resources and Rehabilitation Board members the board, surface and mineral interests
3.14owned or acquired by the state of Minnesota acting by and through the office of the
3.15commissioner of Iron Range resources and rehabilitation within those portions of the
3.16taconite assistance area affected by the closure of the LTV Steel Mining Company facility
3.17near Hoyt Lakes. The payments and royalties from these leases must be deposited into the
3.18fund established in section298.292 . This subdivision supersedes any other conflicting
3.19provisions of law and does not preclude the commissioner and the board from making
3.20expenditures for programs and projects in other areas.
3.21 Sec. 5. Minnesota Statutes 2012, section 298.22, subdivision 10, is amended to read:
3.22 Subd. 10. Sale or privatization of functions. The commissioner of Iron Range
3.23resources and rehabilitation may not sell or privatize the Ironworld Discovery Center or
3.24Giants Ridge Golf and Ski Resort without prior approval byat least seven Iron Range
3.25Resources and Rehabilitation Board members the board.
3.26 Sec. 6. Minnesota Statutes 2012, section 298.22, subdivision 11, is amended to read:
3.27 Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation
3.28shall annually prepare a budget for operational expenditures, programs, and projects, and
3.29submit it to the Iron Range Resources and Rehabilitation Boardand the governor. After
3.30the budget is approved byat least seven Iron Range Resources and Rehabilitation Board
3.31members the board and the governor, the commissioner may spend money in accordance
3.32with the approved budget.
4.1 Sec. 7. Minnesota Statutes 2012, section 298.221, is amended to read:
4.2298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
4.3(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
4.4pursuant to the terms of any contract entered into by the state under authority of section
4.5298.22
and any fees which may, in the discretion of the commissioner of Iron Range
4.6resources and rehabilitation, be charged in connection with any project pursuant to that
4.7section as amended, shall be deposited in the state treasury to the credit of the Iron Range
4.8Resources and Rehabilitation Board account in the special revenue fund and are hereby
4.9appropriated for the purposes of section298.22 .
4.10(b) Notwithstanding section16A.013 , merchandise may be accepted by the
4.11commissioner of the Iron Range Resources and Rehabilitation Board for payment of
4.12advertising contracts if the commissioner determines that the merchandise can be used
4.13for special event prizes or mementos at facilities operated by the board. Nothing in this
4.14paragraph authorizes the commissioner or a member of the board to receive merchandise
4.15for personal use.
4.16(c) All fees charged by the commissioner in connection with public use of the
4.17state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
4.18revenues derived by the commissioner from the operation or lease of those facilities
4.19and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
4.20Recreation Area must be deposited into an Iron Range Resources and Rehabilitation Board
4.21account that is created within the state enterprise fund. All funds deposited in the enterprise
4.22fund account are appropriated to the commissioner to be expended, subject to approval byat
4.23least seven Iron Range Resources and Rehabilitation Board members the board, as follows:
4.24(1) to pay costs associated with the construction, equipping, operation, repair, or
4.25improvement of the Giants Ridge Recreation Area facilities or lands;
4.26(2) to pay principal, interest and associated bond issuance, reserve, and servicing
4.27costs associated with the financing of the facilities; and
4.28(3) to pay the costs of any other project authorized under section298.22 .
4.29 Sec. 8. Minnesota Statutes 2012, section 298.2211, subdivision 3, is amended to read:
4.30 Subd. 3. Project approval. All projects authorized by this section shall be
4.31submitted by the commissioner to the Iron Range Resources and Rehabilitation Board for
4.32approval byat least seven Iron Range Resources and Rehabilitation Board members the
4.33board. Prior to the commencement of a project involving the exercise by the commissioner
4.34of any authority of sections469.174 to
469.179 , the governing body of each municipality
4.35in which any part of the project is located and the county board of any county containing
5.1portions of the project not located in an incorporated area shall by majority vote approve
5.2or disapprove the project. Any project approved byat least seven Iron Range Resources
5.3and Rehabilitation Board members the board and the applicable governing bodies, if
5.4any, together with detailed information concerning the project, its costs, the sources of
5.5its funding, and the amount of any bonded indebtedness to be incurred in connection
5.6with the project, shall be transmitted to the governor, who shall approve, disapprove, or
5.7return the proposal for additional consideration within 30 days of receipt. No project
5.8authorized under this section shall be undertaken, and no obligations shall be issued and
5.9no tax increments shall be expended for a project authorized under this section until the
5.10project has been approved by the governor.
5.11 Sec. 9. Minnesota Statutes 2012, section 298.2213, subdivision 4, is amended to read:
5.12 Subd. 4. Project approval. The board and commissioner shall by August 1 each
5.13year prepare a list of projects to be funded from the money appropriated in this section
5.14with necessary supporting information including descriptions of the projects, plans, and
5.15cost estimates. A project must not be approved by the board unless it finds that:
5.16(1) the project will materially assist, directly or indirectly, the creation of additional
5.17long-term employment opportunities;
5.18(2) the prospective benefits of the expenditure exceed the anticipated costs; and
5.19(3) in the case of assistance to private enterprise, the project will serve a sound
5.20business purpose.
5.21Each project must be approved byat least seven Iron Range Resources and
5.22Rehabilitation Board members the board and the commissioner of Iron Range resources
5.23and rehabilitation. The list of projects must be submitted to the governor, who shall, by
5.24November 15 of each year, approve, disapprove, or return for further consideration, each
5.25project. The money for a project may be spent only upon approval of the project by the
5.26governor. The board may submit supplemental projects for approval at any time.
5.27 Sec. 10. Minnesota Statutes 2012, section 298.2214, subdivision 6, is amended to read:
5.28 Subd. 6. Per diem. Members of the committee may be reimbursed for expenses
5.29in the manner provided in section
298.22, subdivision 2
5.30pursuant to section 298.22.
5.31 Sec. 11. Minnesota Statutes 2012, section 298.223, subdivision 1, is amended to read:
5.32 Subdivision 1. Creation; purposes. A fund called the taconite environmental
5.33protection fund is created for the purpose of reclaiming, restoring and enhancing those
6.1areas of northeast Minnesota located within the taconite assistance area defined in section
6.2273.1341
, that are adversely affected by the environmentally damaging operations
6.3involved in mining taconite and iron ore and producing iron ore concentrate and for the
6.4purpose of promoting the economic development of northeast Minnesota. The taconite
6.5environmental protection fund shall be used for the following purposes:
6.6(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
6.7Board determines are in need of study and which will determine the environmental
6.8problems requiring remedial action;
6.9(2) reclamation, restoration, or reforestation of mine lands not otherwise provided
6.10for by state law;
6.11(3) local economic development projects but only if those projects are approved
6.12byat least seven Iron Range Resources and Rehabilitation Board members the board,
6.13and public works, including construction of sewer and water systems located within the
6.14taconite assistance area defined in section273.1341 ;
6.15(4) monitoring of mineral industry related health problems among mining employees;
6.16(5) local public works projects under section298.227 , paragraph (c); and
6.17(6) local public works projects as provided under this clause. The following amounts
6.18shall be distributed in 2009 based upon the taxable tonnage of production in 2008:
6.19(i) .4651 cent per ton to the city of Aurora for street repair and renovation;
6.20(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
6.21improvements to the south side industrial site;
6.22(iii) .6460 cent per ton to the city of Buhl for street repair;
6.23(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;
6.24(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
6.25upgrades;
6.26(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
6.27upgrades;
6.28(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;
6.29(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
6.30modifications for the miners' memorial;
6.31(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;
6.32(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;
6.33(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;
6.34(xii) .6460 cent per ton to the town of Balkan for community center repairs;
6.35(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;
6.36(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;
7.1(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;
7.2(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;
7.3(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;
7.4(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;
7.5(xvix) .3230 cent per ton to Lake County for trail construction;
7.6(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand
7.7Marais;
7.8(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure
7.9improvements;
7.10(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;
7.11(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer
7.12improvements along Gayley Avenue;
7.13(xxiv) .3876 cent per ton to the city of Marble for construction of a city
7.14administration facility;
7.15(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the
7.16community center;
7.17(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure
7.18upgrades;
7.19(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades
7.20along Depot Street;
7.21(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
7.22improvements;
7.23(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
7.24infrastructure upgrades at Pokegema Golf Course and Park Place;
7.25(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades
7.26for 1st Avenue from River Road to 3rd Street SE; and
7.27(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing
7.28at Highway 2 and County Road 62.
7.29 Sec. 12. Minnesota Statutes 2012, section 298.223, subdivision 2, is amended to read:
7.30 Subd. 2. Administration. (a) The taconite area environmental protection fund shall
7.31be administered by the commissioner of the Iron Range Resources and Rehabilitation
7.32Board. The commissioner shall by September 1 of each year submit to the board a list
7.33of projects to be funded from the taconite area environmental protection fund, with such
7.34supporting information including description of the projects, plans, and cost estimates as
7.35may be necessary.
8.1 (b) Each year no less than one-half of the amounts deposited into the taconite
8.2environmental protection fund must be used for public works projects, including
8.3construction of sewer and water systems, as specified under subdivision 1, clause (3). The
8.4Iron Range Resources and Rehabilitation Boardwith approval by at least seven Iron
8.5Range Resources and Rehabilitation Board members, may waive the requirements of
8.6this paragraph.
8.7 (c) Upon approval byat least seven Iron Range Resources and Rehabilitation Board
8.8members the board, the list of projects approved under this subdivision shall be submitted to
8.9the governor by November 1 of each year. By December 1 of each year, the governor shall
8.10approve or disapprove, or return for further consideration, each project. Funds for a project
8.11may be expended only upon approval of the project byat least seven Iron Range Resources
8.12and Rehabilitation Board members, the board and the governor. The commissioner may
8.13submit supplemental projects to the board and governor for approval at any time.
8.14 Sec. 13. Minnesota Statutes 2012, section 298.227, is amended to read:
8.15298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
8.16 (a) An amount equal to that distributed pursuant to each taconite producer's taxable
8.17production and qualifying sales under section298.28, subdivision 9a , shall be held by
8.18the Iron Range Resources and Rehabilitation Board in a separate taconite economic
8.19development fund for each taconite and direct reduced ore producer. Money from the
8.20fund for each producer shall be released by the commissioner after review by a joint
8.21committee consisting of an equal number of representatives of the salaried employees and
8.22the nonsalaried production and maintenance employees of that producer. The District 11
8.23director of the United States Steelworkers of America, on advice of each local employee
8.24president, shall select the employee members. In nonorganized operations, the employee
8.25committee shall be elected by the nonsalaried production and maintenance employees.
8.26The review must be completed no later than six months after the producer presents a
8.27proposal for expenditure of the funds to the committee. The funds held pursuant to this
8.28section may be released only for workforce development and associated public facility
8.29improvement, or for acquisition of plant and stationary mining equipment and facilities
8.30for the producer or for research and development in Minnesota on new mining, or
8.31taconite, iron, or steel production technology, but only if the producer provides a matching
8.32expenditure to be used for the same purpose of at least 50 percent of the distribution
8.33based on 14.7 cents per ton beginning with distributions in 2002. Effective for proposals
8.34for expenditures of money from the fund beginning May 26, 2007, the commissioner
8.35may not release the funds before the next scheduled meeting of the board. If a proposed
9.1expenditure is not approved byat least seven Iron Range Resources and Rehabilitation
9.2Board members the board, the funds must be deposited in the Taconite Environmental
9.3Protection Fund under sections298.222 to
298.225 . If a producer uses money which has
9.4been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile
9.5equipment, or mining shovels, and the producer removes the piece of equipment from the
9.6taconite tax relief area defined in section273.134 within ten years from the date of receipt
9.7of the money from the fund, a portion of the money granted from the fund must be repaid
9.8to the taconite economic development fund. The portion of the money to be repaid is 100
9.9percent of the grant if the equipment is removed from the taconite tax relief area within 12
9.10months after receipt of the money from the fund, declining by ten percent for each of the
9.11subsequent nine years during which the equipment remains within the taconite tax relief
9.12area. If a taconite production facility is sold after operations at the facility had ceased, any
9.13money remaining in the fund for the former producer may be released to the purchaser of
9.14the facility on the terms otherwise applicable to the former producer under this section. If
9.15a producer fails to provide matching funds for a proposed expenditure within six months
9.16after the commissioner approves release of the funds, the funds are available for release to
9.17another producer in proportion to the distribution provided and under the conditions of
9.18this section. Any portion of the fund which is not released by the commissioner within
9.19one year of its deposit in the fund shall be divided between the taconite environmental
9.20protection fund created in section298.223 and the Douglas J. Johnson economic protection
9.21trust fund created in section298.292 for placement in their respective special accounts.
9.22Two-thirds of the unreleased funds shall be distributed to the taconite environmental
9.23protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
9.24 (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
9.25distributions and the review process, an amount equal to ten cents per taxable ton of
9.26production in 2007, for distribution in 2008 only, that would otherwise be distributed
9.27under paragraph (a), may be used for a loan or grant for the cost of providing for a
9.28value-added wood product facility located in the taconite tax relief area and in a county
9.29that contains a city of the first class. This amount must be deducted from the distribution
9.30under paragraph (a) for which a matching expenditure by the producer is not required. The
9.31granting of the loan or grant is subject to approval byat least seven Iron Range Resources
9.32and Rehabilitation Board members the board. If the money is provided as a loan, interest
9.33must be payable on the loan at the rate prescribed in section298.2213, subdivision 3 . (ii)
9.34Repayments of the loan and interest, if any, must be deposited in the taconite environment
9.35protection fund under sections298.222 to
298.225 . If a loan or grant is not made under
9.36this paragraph by July 1, 2012, the amount that had been made available for the loan under
10.1this paragraph must be transferred to the taconite environment protection fund under
10.2sections298.222 to
298.225 . (iii) Money distributed in 2008 to the fund established
10.3under this section that exceeds ten cents per ton is available to qualifying producers under
10.4paragraph (a) on a pro rata basis.
10.5(c) Repayment or transfer of money to the taconite environmental protection fund
10.6under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
10.7Rehabilitation Board for public works projects in house legislative districts in the same
10.8proportion as taxable tonnage of production in 2007 in each house legislative district, for
10.9distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
10.10in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
10.11do not require approval by the governor. For purposes of this paragraph, "house legislative
10.12districts" means the legislative districts in existence on May 15, 2009.
10.13 Sec. 14. Minnesota Statutes 2012, section 298.28, subdivision 9d, is amended to read:
10.14 Subd. 9d. Iron Range higher education account. Five cents per taxable ton must
10.15be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
10.16an Iron Range higher education account that is hereby created, to be used for higher
10.17education programs conducted at educational institutions in the taconite assistance area
10.18defined in section273.1341 . The Iron Range Higher Education committee under section
10.19298.2214,
and the Iron Range Resources and Rehabilitation Board by an affirmative vote
10.20of at least seven Iron Range Resources and Rehabilitation Board members, must approve
10.21all expenditures from the account.
10.22 Sec. 15. Minnesota Statutes 2012, section 298.292, subdivision 2, is amended to read:
10.23 Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
10.24fund may be used for the following purposes:
10.25 (1) to provide loans, loan guarantees, interest buy-downs and other forms of
10.26participation with private sources of financing, but a loan to a private enterprise shall be
10.27for a principal amount not to exceed one-half of the cost of the project for which financing
10.28is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
10.29lesser of eight percent or an interest rate three percentage points less than a full faith
10.30and credit obligation of the United States government of comparable maturity, at the
10.31time that the loan is approved;
10.32 (2) to fund reserve accounts established to secure the payment when due of the
10.33principal of and interest on bonds issued pursuant to section298.2211 ;
11.1 (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
11.2on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
11.3or retrofitting heating facilities in connection with district heating systems or systems
11.4utilizing alternative energy sources;
11.5 (4) to invest in a venture capital fund or enterprise that will provide capital to other
11.6entities that are engaging in, or that will engage in, projects or programs that have the
11.7purposes set forth in subdivision 1. No investments may be made in a venture capital fund
11.8or enterprise unless at least two other unrelated investors make investments of at least
11.9$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
11.10J. Johnson economic protection trust fund may not exceed the amount of the largest
11.11investment by an unrelated investor in the venture capital fund or enterprise. For purposes
11.12of this subdivision, an "unrelated investor" is a person or entity that is not related to
11.13the entity in which the investment is made or to any individual who owns more than 40
11.14percent of the value of the entity, in any of the following relationships: spouse, parent,
11.15child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
11.16the value of all interests in it. For purposes of determining the limitations under this
11.17clause, the amount of investments made by an investor other than the Douglas J. Johnson
11.18economic protection trust fund is the sum of all investments made in the venture capital
11.19fund or enterprise during the period beginning one year before the date of the investment
11.20by the Douglas J. Johnson economic protection trust fund; and
11.21 (5) to purchase forest land in the taconite assistance area defined in section273.1341
11.22to be held and managed as a public trust for the benefit of the area for the purposes
11.23authorized in section298.22, subdivision 5a . Property purchased under this section may
11.24be sold by the commissioner upon approval byat least seven Iron Range Resources and
11.25Rehabilitation Board members the board. The net proceeds must be deposited in the trust
11.26fund for the purposes and uses of this section.
11.27 Money from the trust fund shall be expended only in or for the benefit of the taconite
11.28assistance area defined in section273.1341 .
11.29 Sec. 16. Minnesota Statutes 2012, section 298.294, is amended to read:
11.30298.294 INVESTMENT OF FUND.
11.31(a) The trust fund established by section298.292 shall be invested pursuant to law
11.32by the State Board of Investment and the net interest, dividends, and other earnings arising
11.33from the investments shall be transferred, except as provided in paragraph (b), on the first
11.34day of each month to the trust and shall be included and become part of the trust fund.
11.35The amounts transferred, including the interest, dividends, and other earnings earned
12.1prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
12.21983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
12.3commissioner of Iron Range resources and rehabilitation for deposit in a separate account
12.4for expenditure for the purposes set forth in section298.292 . Amounts appropriated
12.5pursuant to this section shall not cancel but shall remain available unless expended.
12.6(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends,
12.7and other earnings under paragraph (a) shall be transferred to a special account. Funds
12.8in the special account are available for loans or grants to businesses, with priority given
12.9to businesses with 25 or fewer employees. Funds may be used for wage subsidies for
12.10up to 52 weeks of up to $5 per hour or other activities, including, but not limited to,
12.11short-term operating expenses and purchase of equipment and materials by businesses
12.12under financial duress, that will create additional jobs in the taconite assistance area under
12.13section273.1341 . Expenditures from the special account must be approved by at least
12.14seven Iron Range Resources and Rehabilitation Board members the board.
12.15(c) To qualify for a grant or loan, a business must be currently operating and have
12.16been operating for one year immediately prior to its application for a loan or grant, and its
12.17corporate headquarters must be located in the taconite assistance area.
12.18 Sec. 17. Minnesota Statutes 2012, section 298.296, subdivision 1, is amended to read:
12.19 Subdivision 1. Project approval. The board and commissioner shall by August 1 of
12.20each year prepare a list of projects to be funded from the Douglas J. Johnson economic
12.21protection trust with necessary supporting information including description of the
12.22projects, plans, and cost estimates. These projects shall be consistent with the priorities
12.23established in section298.292 and shall not be approved by the board unless it finds that:
12.24(a) the project will materially assist, directly or indirectly, the creation of additional
12.25long-term employment opportunities;
12.26(b) the prospective benefits of the expenditure exceed the anticipated costs; and
12.27(c) in the case of assistance to private enterprise, the project will serve a sound
12.28business purpose.
12.29 Each project must be approved byat least eight Iron Range Resources and
12.30Rehabilitation Board over one-half of all of the members of the board and the
12.31commissioner of Iron Range resources and rehabilitation. The list of projects shall
12.32be submitted to the governor, who shall, by November 15 of each year, approve or
12.33disapprove, or return for further consideration, each project. The money for a project may
12.34be expended only upon approval of the project by the governor. The board may submit
12.35supplemental projects for approval at any time.
13.1 Sec. 18. Minnesota Statutes 2012, section 298.296, subdivision 2, is amended to read:
13.2 Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended
13.3on projects and for administration of the trust fund only from the net interest, earnings,
13.4and dividends arising from the investment of the trust at any time, including net interest,
13.5earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
13.6available for use in fiscal year 1983, except that any amount required to be paid out of the
13.7trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
13.8X, section 4, and to make school bond payments and payments to recipients of taconite
13.9production tax proceeds pursuant to section298.225 , may be taken from the corpus of
13.10the trust.
13.11 (b) Additionally, upon recommendation by the board, up to $13,000,000 from the
13.12corpus of the trust may be made available for use as provided in subdivision 4, and up to
13.13$10,000,000 from the corpus of the trust may be made available for use as provided in
13.14section298.2961 .
13.15 (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
13.16on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
13.17made available under section298.28, subdivision 4 , and Laws 2002, chapter 377, article
13.188, section 17, may be expended on projects. Funds may be expended for projects under
13.19this paragraph only if the project:
13.20 (1) is for the purposes established under section298.292, subdivision 1 , clause
13.21(1) or (2); and
13.22 (2) is approved by two-thirds of all of the members of the boardupon an affirmative
13.23vote of at least ten of its members.
13.24No money made available under this paragraph or paragraph (d) can be used for
13.25administrative or operating expenses of the Iron Range Resources and Rehabilitation Board
13.26or expenses relating to any facilities owned or operated by the board on May 18, 2002.
13.27 (d) Upon recommendation by a unanimous vote of all members of the board,
13.28amounts in addition to those authorized under paragraphs (a), (b), and (c) may be
13.29expended on projects described in section298.292, subdivision 1 .
13.30 (e) Annual administrative costs, not including detailed engineering expenses for the
13.31projects, shall not exceed five percent of the net interest, dividends, and earnings arising
13.32from the trust in the preceding fiscal year.
13.33 (f) Principal and interest received in repayment of loans made pursuant to this
13.34section, and earnings on other investments made under section298.292, subdivision 2 ,
13.35clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
13.36are appropriated to the board for the purposes of sections298.291 to
298.298 .
14.1 (g) Additionally, notwithstanding section298.293 , upon the affirmative vote of at
14.2least seven Iron Range Resources and Rehabilitation Board members approval of the
14.3board, money from the corpus of the trust may be expanded to purchase forest lands
14.4within the taconite assistance area as provided in sections298.22 , subdivision 5a, and
14.5298.292, subdivision 2
, clause (5).
14.6 Sec. 19. Minnesota Statutes 2012, section 298.2961, subdivision 2, is amended to read:
14.7 Subd. 2. Projects; approval. (a) Projects funded must be for:
14.8 (1) environmentally unique reclamation projects; or
14.9 (2) pit or plant repairs, expansions, or modernizations other than for a value added
14.10iron products plant.
14.11 (b) To be proposed by the board, a project must be approved byat least eight Iron
14.12Range Resources and Rehabilitation Board members the board. The money for a project
14.13may be spent only upon approval of the project by the governor. The board may submit
14.14supplemental projects for approval at any time.
14.15 (c) The board may require that it receive an equity percentage in any project to
14.16which it contributes under this section.
14.17 Sec. 20. Minnesota Statutes 2012, section 298.2961, subdivision 4, is amended to read:
14.18 Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions
14.19under section298.28, subdivision 9b , and to make grants or loans as provided in this
14.20subdivision. Any grant or loan made under this subdivision must be approved byat least
14.21seven Iron Range Resources and Rehabilitation Board members the board, established
14.22under section298.22 .
14.23 (b) Distributions received in calendar year 2005 are allocated to the city of Virginia
14.24for improvements and repairs to the city's steam heating system.
14.25 (c) Distributions received in calendar year 2006 are allocated to a project of the
14.26public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
14.27generating plants to the use of biomass products, such as wood.
14.28 (d) Distributions received in calendar year 2007 must be paid to the city of Tower to
14.29be used for the East Two Rivers project in or near the city of Tower.
14.30 (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
14.31must be paid to St. Louis County for deposit in its county road and bridge fund to be
14.32used for relocation of St. Louis County Road 715, commonly referred to as Pike River
14.33Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
14.34grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
15.1maintenance garage on Highway 135, further extending the lines to interconnect with the
15.2city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
15.3years are allocated for projects under section298.223 , subdivision 1.
15.4 Sec. 21. Minnesota Statutes 2012, section 298.2961, subdivision 5, is amended to read:
15.5 Subd. 5. Public works and local economic development fund. For distributions in
15.62007 only, a special fund is established to receive 38.4 cents per ton that otherwise would
15.7be allocated under section298.28 , subdivision 6. The following amounts are allocated to
15.8St. Louis County acting as the fiscal agent for the recipients for the specific purposes:
15.9 (1) 13.4 cents per ton for the Central Iron Range Sanitary Sewer District for
15.10construction of a combined wastewater facility and notwithstanding section298.28 ,
15.11subdivision 11, paragraph (a), or any other law, interest accrued on this money while held
15.12by St. Louis County shall also be distributed to the recipient;
15.13 (2) six cents per ton to the city of Eveleth to redesign and design and construct
15.14improvements to renovate its water treatment facility;
15.15 (3) one cent per ton for the East Range Joint Powers Board to acquire land for and to
15.16design a central wastewater collection and treatment system;
15.17 (4) 0.5 cents per ton to the city of Hoyt Lakes to repair Leeds Road;
15.18 (5) 0.7 cents per ton to the city of Virginia to extend Eighth Street South;
15.19 (6) 0.7 cents per ton to the city of Mountain Iron to repair Hoover Road;
15.20 (7) 0.9 cents per ton to the city of Gilbert for alley repairs between Michigan and
15.21Indiana Avenues and for repayment of a loan to the Minnesota Department of Employment
15.22and Economic Development;
15.23 (8) 0.4 cents per ton to the city of Keewatin for a new city well;
15.24 (9) 0.3 cents per ton to the city of Grand Rapids for planning for a fire and hazardous
15.25materials center;
15.26 (10) 0.9 cents per ton to Aitkin County Growth for an economic development
15.27project for peat harvesting;
15.28 (11) 0.4 cents per ton to the city of Nashwauk to develop a comprehensive city plan;
15.29 (12) 0.4 cents per ton to the city of Taconite for development of a city comprehensive
15.30plan;
15.31 (13) 0.3 cents per ton to the city of Marble for water and sewer infrastructure;
15.32 (14) 0.8 cents per ton to Aitkin County for improvements to the Long Lake
15.33Environmental Learning Center;
15.34 (15) 0.3 cents per ton to the city of Coleraine for the Coleraine Technology Center;
16.1 (16) 0.5 cents per ton to the Economic Development Authority of the city of Grand
16.2Rapids for planning for the North Central Research and Technology Laboratory;
16.3 (17) 0.6 cents per ton to the city of Bovey for sewer and water extension;
16.4 (18) 0.3 cents per ton to the city of Calumet for infrastructure improvements; and
16.5 (19) ten cents per ton to the commissioner of Iron Range Resources and
16.6Rehabilitation for deposit in a Highway 1 Corridor Account established by the
16.7commissioner, to be distributed by the commissioner to any of the cities of Babbitt, Cook,
16.8Ely, or Tower, for economic development projects approved byat least seven Iron Range
16.9Resources and Rehabilitation Board members the board; notwithstanding section
298.28,
16.10subdivision 11 , paragraph (a), or any other law, interest accrued on this money while held
16.11by St. Louis County or the commissioner shall also be distributed to the recipient.
16.12 Sec. 22. REPEALER.
16.13Minnesota Statutes 2012, section 298.22, subdivision 2, is repealed.
16.14 Sec. 23. EFFECTIVE DATE.
16.15This act is effective the day following final enactment.
1.3Rehabilitation Board; modifying board composition and approval provisions;
1.4amending Minnesota Statutes 2012, sections 116J.424; 298.22, subdivisions 5a,
1.58, 10, 11, by adding a subdivision; 298.221; 298.2211, subdivision 3; 298.2213,
1.6subdivision 4; 298.2214, subdivision 6; 298.223, subdivisions 1, 2; 298.227;
1.7298.28, subdivision 9d; 298.292, subdivision 2; 298.294; 298.296, subdivisions
1.81, 2; 298.2961, subdivisions 2, 4, 5; repealing Minnesota Statutes 2012, section
1.9298.22, subdivision 2.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2012, section 116J.424, is amended to read:
1.12116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
1.13CONTRIBUTION.
1.14The commissioner of the Iron Range Resources and Rehabilitation Board with
1.15approval by
1.16board, shall provide an equal match for any loan or equity investment made for a facility
1.17located in the tax relief area defined in section
1.18minerals 21st century fund created by section
1.19of a loan or equity investment, notwithstanding whether the fund makes a loan or equity
1.20investment. The state shall not acquire an equity interest because of an equity investment
1.21or loan by the board and the board at its sole discretion shall decide what interest it acquires
1.22in a project. The commissioner of employment and economic development may require a
1.23commitment from the board to make the match prior to disbursing money from the fund.
1.24 Sec. 2. Minnesota Statutes 2012, section 298.22, is amended by adding a subdivision
1.25to read:
2.1 Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range
2.2Resources and Rehabilitation Board consists of the state senators and representatives
2.3elected from state senatorial or legislative districts in which one-third or more of
2.4the residents reside in a taconite assistance area as defined in section 273.1341. All
2.5expenditures and projects made by the commissioner shall first be submitted to the
2.6board for approval. The expenses of the board shall be paid by the state from the funds
2.7raised pursuant to this section. Members of the board may be reimbursed for expenses
2.8in the manner provided in sections 3.099, subdivision 1, and 3.101, and may receive per
2.9diem payments during the interims between legislative sessions in the manner provided
2.10in section 3.099, subdivision 1.
2.11 Sec. 3. Minnesota Statutes 2012, section 298.22, subdivision 5a, is amended to read:
2.12 Subd. 5a. Forest trust. The commissioner, upon
2.13
2.14may purchase forest lands in the taconite assistance area defined in under section
2.15with funds specifically authorized for the purchase. The acquired forest lands must be
2.16held in trust for the benefit of the citizens of the taconite assistance area as the Iron Range
2.17Miners' Memorial Forest. The forest trust lands shall be managed and developed for
2.18recreation and economic development purposes. The commissioner, upon
2.19
2.20by the board, may sell forest lands purchased under this subdivision if the board finds that
2.21the sale advances the purposes of the trust. Proceeds derived from the management or sale
2.22of the lands and from the sale of timber or removal of gravel or other minerals from these
2.23forest lands shall be deposited into an Iron Range Miners' Memorial Forest account that is
2.24established within the state financial accounts. Funds may be expended from the account
2.25upon approval by
2.26 the board, to purchase, manage, administer, convey interests in, and improve the forest
2.27lands.
2.28
2.29Forest account may be transferred into the corpus of the Douglas J. Johnson economic
2.30protection trust fund established under sections
2.31under the authority granted by this subdivision and income derived from the property or
2.32the operation or management of the property are exempt from taxation by the state or its
2.33political subdivisions while held by the forest trust.
2.34 Sec. 4. Minnesota Statutes 2012, section 298.22, subdivision 8, is amended to read:
3.1 Subd. 8. Spending priority. In making or approving any expenditures on programs
3.2or projects, the commissioner and the board shall give the highest priority to programs
3.3and projects that target relief to those areas of the taconite assistance area as defined in
3.4section
3.5directly attributable to the economic downturn in the taconite industry since the 1980s.
3.6The commissioner and the board shall compare the 1980 population and employment
3.7figures with the 2000 population and employment figures, and shall specifically consider
3.8the job losses in 2000 and 2001 resulting from the closure of LTV Steel Mining Company,
3.9in making or approving expenditures consistent with this subdivision, as well as the areas
3.10of residence of persons who suffered job loss for which relief is to be targeted under this
3.11subdivision. The commissioner may lease, for a term not exceeding 50 years and upon
3.12the terms determined by the commissioner and approved by
3.13
3.14owned or acquired by the state of Minnesota acting by and through the office of the
3.15commissioner of Iron Range resources and rehabilitation within those portions of the
3.16taconite assistance area affected by the closure of the LTV Steel Mining Company facility
3.17near Hoyt Lakes. The payments and royalties from these leases must be deposited into the
3.18fund established in section
3.19provisions of law and does not preclude the commissioner and the board from making
3.20expenditures for programs and projects in other areas.
3.21 Sec. 5. Minnesota Statutes 2012, section 298.22, subdivision 10, is amended to read:
3.22 Subd. 10. Sale or privatization of functions. The commissioner of Iron Range
3.23resources and rehabilitation may not sell or privatize the Ironworld Discovery Center or
3.24Giants Ridge Golf and Ski Resort without prior approval by
3.25
3.26 Sec. 6. Minnesota Statutes 2012, section 298.22, subdivision 11, is amended to read:
3.27 Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation
3.28shall annually prepare a budget for operational expenditures, programs, and projects, and
3.29submit it to the Iron Range Resources and Rehabilitation Board
3.30the budget is approved by
3.31
3.32with the approved budget.
4.1 Sec. 7. Minnesota Statutes 2012, section 298.221, is amended to read:
4.2298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
4.3(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
4.4pursuant to the terms of any contract entered into by the state under authority of section
4.6resources and rehabilitation, be charged in connection with any project pursuant to that
4.7section as amended, shall be deposited in the state treasury to the credit of the Iron Range
4.8Resources and Rehabilitation Board account in the special revenue fund and are hereby
4.9appropriated for the purposes of section
4.10(b) Notwithstanding section
4.11commissioner of the Iron Range Resources and Rehabilitation Board for payment of
4.12advertising contracts if the commissioner determines that the merchandise can be used
4.13for special event prizes or mementos at facilities operated by the board. Nothing in this
4.14paragraph authorizes the commissioner or a member of the board to receive merchandise
4.15for personal use.
4.16(c) All fees charged by the commissioner in connection with public use of the
4.17state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
4.18revenues derived by the commissioner from the operation or lease of those facilities
4.19and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
4.20Recreation Area must be deposited into an Iron Range Resources and Rehabilitation Board
4.21account that is created within the state enterprise fund. All funds deposited in the enterprise
4.22fund account are appropriated to the commissioner to be expended, subject to approval by
4.23
4.24(1) to pay costs associated with the construction, equipping, operation, repair, or
4.25improvement of the Giants Ridge Recreation Area facilities or lands;
4.26(2) to pay principal, interest and associated bond issuance, reserve, and servicing
4.27costs associated with the financing of the facilities; and
4.28(3) to pay the costs of any other project authorized under section
4.29 Sec. 8. Minnesota Statutes 2012, section 298.2211, subdivision 3, is amended to read:
4.30 Subd. 3. Project approval. All projects authorized by this section shall be
4.31submitted by the commissioner to the Iron Range Resources and Rehabilitation Board for
4.32approval by
4.33board. Prior to the commencement of a project involving the exercise by the commissioner
4.34of any authority of sections
4.35in which any part of the project is located and the county board of any county containing
5.1portions of the project not located in an incorporated area shall by majority vote approve
5.2or disapprove the project. Any project approved by
5.3
5.4any, together with detailed information concerning the project, its costs, the sources of
5.5its funding, and the amount of any bonded indebtedness to be incurred in connection
5.6with the project, shall be transmitted to the governor, who shall approve, disapprove, or
5.7return the proposal for additional consideration within 30 days of receipt. No project
5.8authorized under this section shall be undertaken, and no obligations shall be issued and
5.9no tax increments shall be expended for a project authorized under this section until the
5.10project has been approved by the governor.
5.11 Sec. 9. Minnesota Statutes 2012, section 298.2213, subdivision 4, is amended to read:
5.12 Subd. 4. Project approval. The board and commissioner shall by August 1 each
5.13year prepare a list of projects to be funded from the money appropriated in this section
5.14with necessary supporting information including descriptions of the projects, plans, and
5.15cost estimates. A project must not be approved by the board unless it finds that:
5.16(1) the project will materially assist, directly or indirectly, the creation of additional
5.17long-term employment opportunities;
5.18(2) the prospective benefits of the expenditure exceed the anticipated costs; and
5.19(3) in the case of assistance to private enterprise, the project will serve a sound
5.20business purpose.
5.21Each project must be approved by
5.22
5.23and rehabilitation. The list of projects must be submitted to the governor, who shall, by
5.24November 15 of each year, approve, disapprove, or return for further consideration, each
5.25project. The money for a project may be spent only upon approval of the project by the
5.26governor. The board may submit supplemental projects for approval at any time.
5.27 Sec. 10. Minnesota Statutes 2012, section 298.2214, subdivision 6, is amended to read:
5.28 Subd. 6. Per diem. Members of the committee may be reimbursed for expenses
5.29
5.30pursuant to section 298.22.
5.31 Sec. 11. Minnesota Statutes 2012, section 298.223, subdivision 1, is amended to read:
5.32 Subdivision 1. Creation; purposes. A fund called the taconite environmental
5.33protection fund is created for the purpose of reclaiming, restoring and enhancing those
6.1areas of northeast Minnesota located within the taconite assistance area defined in section
6.3involved in mining taconite and iron ore and producing iron ore concentrate and for the
6.4purpose of promoting the economic development of northeast Minnesota. The taconite
6.5environmental protection fund shall be used for the following purposes:
6.6(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
6.7Board determines are in need of study and which will determine the environmental
6.8problems requiring remedial action;
6.9(2) reclamation, restoration, or reforestation of mine lands not otherwise provided
6.10for by state law;
6.11(3) local economic development projects but only if those projects are approved
6.12by
6.13and public works, including construction of sewer and water systems located within the
6.14taconite assistance area defined in section
6.15(4) monitoring of mineral industry related health problems among mining employees;
6.16(5) local public works projects under section
6.17(6) local public works projects as provided under this clause. The following amounts
6.18shall be distributed in 2009 based upon the taxable tonnage of production in 2008:
6.19(i) .4651 cent per ton to the city of Aurora for street repair and renovation;
6.20(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
6.21improvements to the south side industrial site;
6.22(iii) .6460 cent per ton to the city of Buhl for street repair;
6.23(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;
6.24(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
6.25upgrades;
6.26(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
6.27upgrades;
6.28(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;
6.29(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
6.30modifications for the miners' memorial;
6.31(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;
6.32(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;
6.33(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;
6.34(xii) .6460 cent per ton to the town of Balkan for community center repairs;
6.35(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;
6.36(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;
7.1(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;
7.2(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;
7.3(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;
7.4(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;
7.5(xvix) .3230 cent per ton to Lake County for trail construction;
7.6(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand
7.7Marais;
7.8(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure
7.9improvements;
7.10(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;
7.11(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer
7.12improvements along Gayley Avenue;
7.13(xxiv) .3876 cent per ton to the city of Marble for construction of a city
7.14administration facility;
7.15(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the
7.16community center;
7.17(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure
7.18upgrades;
7.19(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades
7.20along Depot Street;
7.21(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
7.22improvements;
7.23(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
7.24infrastructure upgrades at Pokegema Golf Course and Park Place;
7.25(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades
7.26for 1st Avenue from River Road to 3rd Street SE; and
7.27(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing
7.28at Highway 2 and County Road 62.
7.29 Sec. 12. Minnesota Statutes 2012, section 298.223, subdivision 2, is amended to read:
7.30 Subd. 2. Administration. (a) The taconite area environmental protection fund shall
7.31be administered by the commissioner of the Iron Range Resources and Rehabilitation
7.32Board. The commissioner shall by September 1 of each year submit to the board a list
7.33of projects to be funded from the taconite area environmental protection fund, with such
7.34supporting information including description of the projects, plans, and cost estimates as
7.35may be necessary.
8.1 (b) Each year no less than one-half of the amounts deposited into the taconite
8.2environmental protection fund must be used for public works projects, including
8.3construction of sewer and water systems, as specified under subdivision 1, clause (3). The
8.4Iron Range Resources and Rehabilitation Board
8.5
8.6this paragraph.
8.7 (c) Upon approval by
8.8
8.9the governor by November 1 of each year. By December 1 of each year, the governor shall
8.10approve or disapprove, or return for further consideration, each project. Funds for a project
8.11may be expended only upon approval of the project by
8.12
8.13submit supplemental projects to the board and governor for approval at any time.
8.14 Sec. 13. Minnesota Statutes 2012, section 298.227, is amended to read:
8.15298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
8.16 (a) An amount equal to that distributed pursuant to each taconite producer's taxable
8.17production and qualifying sales under section
8.18the Iron Range Resources and Rehabilitation Board in a separate taconite economic
8.19development fund for each taconite and direct reduced ore producer. Money from the
8.20fund for each producer shall be released by the commissioner after review by a joint
8.21committee consisting of an equal number of representatives of the salaried employees and
8.22the nonsalaried production and maintenance employees of that producer. The District 11
8.23director of the United States Steelworkers of America, on advice of each local employee
8.24president, shall select the employee members. In nonorganized operations, the employee
8.25committee shall be elected by the nonsalaried production and maintenance employees.
8.26The review must be completed no later than six months after the producer presents a
8.27proposal for expenditure of the funds to the committee. The funds held pursuant to this
8.28section may be released only for workforce development and associated public facility
8.29improvement, or for acquisition of plant and stationary mining equipment and facilities
8.30for the producer or for research and development in Minnesota on new mining, or
8.31taconite, iron, or steel production technology, but only if the producer provides a matching
8.32expenditure to be used for the same purpose of at least 50 percent of the distribution
8.33based on 14.7 cents per ton beginning with distributions in 2002. Effective for proposals
8.34for expenditures of money from the fund beginning May 26, 2007, the commissioner
8.35may not release the funds before the next scheduled meeting of the board. If a proposed
9.1expenditure is not approved by
9.2
9.3Protection Fund under sections
9.4been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile
9.5equipment, or mining shovels, and the producer removes the piece of equipment from the
9.6taconite tax relief area defined in section
9.7of the money from the fund, a portion of the money granted from the fund must be repaid
9.8to the taconite economic development fund. The portion of the money to be repaid is 100
9.9percent of the grant if the equipment is removed from the taconite tax relief area within 12
9.10months after receipt of the money from the fund, declining by ten percent for each of the
9.11subsequent nine years during which the equipment remains within the taconite tax relief
9.12area. If a taconite production facility is sold after operations at the facility had ceased, any
9.13money remaining in the fund for the former producer may be released to the purchaser of
9.14the facility on the terms otherwise applicable to the former producer under this section. If
9.15a producer fails to provide matching funds for a proposed expenditure within six months
9.16after the commissioner approves release of the funds, the funds are available for release to
9.17another producer in proportion to the distribution provided and under the conditions of
9.18this section. Any portion of the fund which is not released by the commissioner within
9.19one year of its deposit in the fund shall be divided between the taconite environmental
9.20protection fund created in section
9.21trust fund created in section
9.22Two-thirds of the unreleased funds shall be distributed to the taconite environmental
9.23protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
9.24 (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
9.25distributions and the review process, an amount equal to ten cents per taxable ton of
9.26production in 2007, for distribution in 2008 only, that would otherwise be distributed
9.27under paragraph (a), may be used for a loan or grant for the cost of providing for a
9.28value-added wood product facility located in the taconite tax relief area and in a county
9.29that contains a city of the first class. This amount must be deducted from the distribution
9.30under paragraph (a) for which a matching expenditure by the producer is not required. The
9.31granting of the loan or grant is subject to approval by
9.32
9.33must be payable on the loan at the rate prescribed in section
9.34Repayments of the loan and interest, if any, must be deposited in the taconite environment
9.35protection fund under sections
9.36this paragraph by July 1, 2012, the amount that had been made available for the loan under
10.1this paragraph must be transferred to the taconite environment protection fund under
10.2sections
10.3under this section that exceeds ten cents per ton is available to qualifying producers under
10.4paragraph (a) on a pro rata basis.
10.5(c) Repayment or transfer of money to the taconite environmental protection fund
10.6under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
10.7Rehabilitation Board for public works projects in house legislative districts in the same
10.8proportion as taxable tonnage of production in 2007 in each house legislative district, for
10.9distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
10.10in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
10.11do not require approval by the governor. For purposes of this paragraph, "house legislative
10.12districts" means the legislative districts in existence on May 15, 2009.
10.13 Sec. 14. Minnesota Statutes 2012, section 298.28, subdivision 9d, is amended to read:
10.14 Subd. 9d. Iron Range higher education account. Five cents per taxable ton must
10.15be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
10.16an Iron Range higher education account that is hereby created, to be used for higher
10.17education programs conducted at educational institutions in the taconite assistance area
10.18defined in section
10.20
10.21all expenditures from the account.
10.22 Sec. 15. Minnesota Statutes 2012, section 298.292, subdivision 2, is amended to read:
10.23 Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
10.24fund may be used for the following purposes:
10.25 (1) to provide loans, loan guarantees, interest buy-downs and other forms of
10.26participation with private sources of financing, but a loan to a private enterprise shall be
10.27for a principal amount not to exceed one-half of the cost of the project for which financing
10.28is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
10.29lesser of eight percent or an interest rate three percentage points less than a full faith
10.30and credit obligation of the United States government of comparable maturity, at the
10.31time that the loan is approved;
10.32 (2) to fund reserve accounts established to secure the payment when due of the
10.33principal of and interest on bonds issued pursuant to section
11.1 (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
11.2on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
11.3or retrofitting heating facilities in connection with district heating systems or systems
11.4utilizing alternative energy sources;
11.5 (4) to invest in a venture capital fund or enterprise that will provide capital to other
11.6entities that are engaging in, or that will engage in, projects or programs that have the
11.7purposes set forth in subdivision 1. No investments may be made in a venture capital fund
11.8or enterprise unless at least two other unrelated investors make investments of at least
11.9$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
11.10J. Johnson economic protection trust fund may not exceed the amount of the largest
11.11investment by an unrelated investor in the venture capital fund or enterprise. For purposes
11.12of this subdivision, an "unrelated investor" is a person or entity that is not related to
11.13the entity in which the investment is made or to any individual who owns more than 40
11.14percent of the value of the entity, in any of the following relationships: spouse, parent,
11.15child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
11.16the value of all interests in it. For purposes of determining the limitations under this
11.17clause, the amount of investments made by an investor other than the Douglas J. Johnson
11.18economic protection trust fund is the sum of all investments made in the venture capital
11.19fund or enterprise during the period beginning one year before the date of the investment
11.20by the Douglas J. Johnson economic protection trust fund; and
11.21 (5) to purchase forest land in the taconite assistance area defined in section
11.23authorized in section
11.24be sold by the commissioner upon approval by
11.25
11.26fund for the purposes and uses of this section.
11.27 Money from the trust fund shall be expended only in or for the benefit of the taconite
11.28assistance area defined in section
11.29 Sec. 16. Minnesota Statutes 2012, section 298.294, is amended to read:
11.30298.294 INVESTMENT OF FUND.
11.31(a) The trust fund established by section
11.32by the State Board of Investment and the net interest, dividends, and other earnings arising
11.33from the investments shall be transferred, except as provided in paragraph (b), on the first
11.34day of each month to the trust and shall be included and become part of the trust fund.
11.35The amounts transferred, including the interest, dividends, and other earnings earned
12.1prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
12.21983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
12.3commissioner of Iron Range resources and rehabilitation for deposit in a separate account
12.4for expenditure for the purposes set forth in section
12.5pursuant to this section shall not cancel but shall remain available unless expended.
12.6(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends,
12.7and other earnings under paragraph (a) shall be transferred to a special account. Funds
12.8in the special account are available for loans or grants to businesses, with priority given
12.9to businesses with 25 or fewer employees. Funds may be used for wage subsidies for
12.10up to 52 weeks of up to $5 per hour or other activities, including, but not limited to,
12.11short-term operating expenses and purchase of equipment and materials by businesses
12.12under financial duress, that will create additional jobs in the taconite assistance area under
12.13section
12.14
12.15(c) To qualify for a grant or loan, a business must be currently operating and have
12.16been operating for one year immediately prior to its application for a loan or grant, and its
12.17corporate headquarters must be located in the taconite assistance area.
12.18 Sec. 17. Minnesota Statutes 2012, section 298.296, subdivision 1, is amended to read:
12.19 Subdivision 1. Project approval. The board and commissioner shall by August 1 of
12.20each year prepare a list of projects to be funded from the Douglas J. Johnson economic
12.21protection trust with necessary supporting information including description of the
12.22projects, plans, and cost estimates. These projects shall be consistent with the priorities
12.23established in section
12.24(a) the project will materially assist, directly or indirectly, the creation of additional
12.25long-term employment opportunities;
12.26(b) the prospective benefits of the expenditure exceed the anticipated costs; and
12.27(c) in the case of assistance to private enterprise, the project will serve a sound
12.28business purpose.
12.29 Each project must be approved by
12.30
12.31commissioner of Iron Range resources and rehabilitation. The list of projects shall
12.32be submitted to the governor, who shall, by November 15 of each year, approve or
12.33disapprove, or return for further consideration, each project. The money for a project may
12.34be expended only upon approval of the project by the governor. The board may submit
12.35supplemental projects for approval at any time.
13.1 Sec. 18. Minnesota Statutes 2012, section 298.296, subdivision 2, is amended to read:
13.2 Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended
13.3on projects and for administration of the trust fund only from the net interest, earnings,
13.4and dividends arising from the investment of the trust at any time, including net interest,
13.5earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
13.6available for use in fiscal year 1983, except that any amount required to be paid out of the
13.7trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
13.8X, section 4, and to make school bond payments and payments to recipients of taconite
13.9production tax proceeds pursuant to section
13.10the trust.
13.11 (b) Additionally, upon recommendation by the board, up to $13,000,000 from the
13.12corpus of the trust may be made available for use as provided in subdivision 4, and up to
13.13$10,000,000 from the corpus of the trust may be made available for use as provided in
13.14section
13.15 (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
13.16on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
13.17made available under section
13.188, section 17, may be expended on projects. Funds may be expended for projects under
13.19this paragraph only if the project:
13.20 (1) is for the purposes established under section
13.21(1) or (2); and
13.22 (2) is approved by two-thirds of all of the members of the board
13.23
13.24No money made available under this paragraph or paragraph (d) can be used for
13.25administrative or operating expenses of the Iron Range Resources and Rehabilitation Board
13.26or expenses relating to any facilities owned or operated by the board on May 18, 2002.
13.27 (d) Upon recommendation by a unanimous vote of all members of the board,
13.28amounts in addition to those authorized under paragraphs (a), (b), and (c) may be
13.29expended on projects described in section
13.30 (e) Annual administrative costs, not including detailed engineering expenses for the
13.31projects, shall not exceed five percent of the net interest, dividends, and earnings arising
13.32from the trust in the preceding fiscal year.
13.33 (f) Principal and interest received in repayment of loans made pursuant to this
13.34section, and earnings on other investments made under section
13.35clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
13.36are appropriated to the board for the purposes of sections
14.1 (g) Additionally, notwithstanding section
14.2
14.3board, money from the corpus of the trust may be expanded to purchase forest lands
14.4within the taconite assistance area as provided in sections
14.6 Sec. 19. Minnesota Statutes 2012, section 298.2961, subdivision 2, is amended to read:
14.7 Subd. 2. Projects; approval. (a) Projects funded must be for:
14.8 (1) environmentally unique reclamation projects; or
14.9 (2) pit or plant repairs, expansions, or modernizations other than for a value added
14.10iron products plant.
14.11 (b) To be proposed by the board, a project must be approved by
14.12
14.13may be spent only upon approval of the project by the governor. The board may submit
14.14supplemental projects for approval at any time.
14.15 (c) The board may require that it receive an equity percentage in any project to
14.16which it contributes under this section.
14.17 Sec. 20. Minnesota Statutes 2012, section 298.2961, subdivision 4, is amended to read:
14.18 Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions
14.19under section
14.20subdivision. Any grant or loan made under this subdivision must be approved by
14.21
14.22under section
14.23 (b) Distributions received in calendar year 2005 are allocated to the city of Virginia
14.24for improvements and repairs to the city's steam heating system.
14.25 (c) Distributions received in calendar year 2006 are allocated to a project of the
14.26public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
14.27generating plants to the use of biomass products, such as wood.
14.28 (d) Distributions received in calendar year 2007 must be paid to the city of Tower to
14.29be used for the East Two Rivers project in or near the city of Tower.
14.30 (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
14.31must be paid to St. Louis County for deposit in its county road and bridge fund to be
14.32used for relocation of St. Louis County Road 715, commonly referred to as Pike River
14.33Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
14.34grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
15.1maintenance garage on Highway 135, further extending the lines to interconnect with the
15.2city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
15.3years are allocated for projects under section
15.4 Sec. 21. Minnesota Statutes 2012, section 298.2961, subdivision 5, is amended to read:
15.5 Subd. 5. Public works and local economic development fund. For distributions in
15.62007 only, a special fund is established to receive 38.4 cents per ton that otherwise would
15.7be allocated under section
15.8St. Louis County acting as the fiscal agent for the recipients for the specific purposes:
15.9 (1) 13.4 cents per ton for the Central Iron Range Sanitary Sewer District for
15.10construction of a combined wastewater facility and notwithstanding section
15.11subdivision 11, paragraph (a), or any other law, interest accrued on this money while held
15.12by St. Louis County shall also be distributed to the recipient;
15.13 (2) six cents per ton to the city of Eveleth to redesign and design and construct
15.14improvements to renovate its water treatment facility;
15.15 (3) one cent per ton for the East Range Joint Powers Board to acquire land for and to
15.16design a central wastewater collection and treatment system;
15.17 (4) 0.5 cents per ton to the city of Hoyt Lakes to repair Leeds Road;
15.18 (5) 0.7 cents per ton to the city of Virginia to extend Eighth Street South;
15.19 (6) 0.7 cents per ton to the city of Mountain Iron to repair Hoover Road;
15.20 (7) 0.9 cents per ton to the city of Gilbert for alley repairs between Michigan and
15.21Indiana Avenues and for repayment of a loan to the Minnesota Department of Employment
15.22and Economic Development;
15.23 (8) 0.4 cents per ton to the city of Keewatin for a new city well;
15.24 (9) 0.3 cents per ton to the city of Grand Rapids for planning for a fire and hazardous
15.25materials center;
15.26 (10) 0.9 cents per ton to Aitkin County Growth for an economic development
15.27project for peat harvesting;
15.28 (11) 0.4 cents per ton to the city of Nashwauk to develop a comprehensive city plan;
15.29 (12) 0.4 cents per ton to the city of Taconite for development of a city comprehensive
15.30plan;
15.31 (13) 0.3 cents per ton to the city of Marble for water and sewer infrastructure;
15.32 (14) 0.8 cents per ton to Aitkin County for improvements to the Long Lake
15.33Environmental Learning Center;
15.34 (15) 0.3 cents per ton to the city of Coleraine for the Coleraine Technology Center;
16.1 (16) 0.5 cents per ton to the Economic Development Authority of the city of Grand
16.2Rapids for planning for the North Central Research and Technology Laboratory;
16.3 (17) 0.6 cents per ton to the city of Bovey for sewer and water extension;
16.4 (18) 0.3 cents per ton to the city of Calumet for infrastructure improvements; and
16.5 (19) ten cents per ton to the commissioner of Iron Range Resources and
16.6Rehabilitation for deposit in a Highway 1 Corridor Account established by the
16.7commissioner, to be distributed by the commissioner to any of the cities of Babbitt, Cook,
16.8Ely, or Tower, for economic development projects approved by
16.9
16.10subdivision 11
16.11by St. Louis County or the commissioner shall also be distributed to the recipient.
16.12 Sec. 22. REPEALER.
16.13Minnesota Statutes 2012, section 298.22, subdivision 2, is repealed.
16.14 Sec. 23. EFFECTIVE DATE.
16.15This act is effective the day following final enactment.
