1.1 	A bill for an act
1.2 	relating to state government; clarifying the Iron Range Resources and 
1.3 	Rehabilitation Board's funds expenditure approval process; amending Minnesota 
1.4 	Statutes 2004, sections 298.22, subdivision 1, by adding a subdivision; 298.2213, 
1.5 	subdivision 4; 298.223, subdivisions 2, 3; 298.296, subdivision 2; Minnesota 
1.6 	Statutes 2005 Supplement, section 298.296, subdivision 1; repealing Minnesota 
1.7 	Statutes 2005 Supplement, section 298.298.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 298.22, subdivision 1, is amended to read:
1.10 		Subdivision 1.The office of the commissioner of Iron Range resources and 
1.11 	rehabilitation. (1) The office of the commissioner of Iron Range resources and 
1.12 	rehabilitation is created as an agency in the executive branch of state government. The 
1.13 	governor shall appoint the commissioner of Iron Range resources and rehabilitation under 
1.14 	section  15.06. 
1.15 	(2) The commissioner may hold other positions or appointments that are not 
1.16 	incompatible with duties as commissioner of Iron Range resources and rehabilitation. The 
1.17 	commissioner may appoint a deputy commissioner. All expenses of the commissioner, 
1.18 	including the payment of such staff and other assistance as may be necessary, must be 
1.19 	paid out of the amounts appropriated by section  298.28 or otherwise made available by 
1.20 	law to the commissioner. The commissioner may appoint and compensate under section 
1.21 	15.014 the members of any number of advisory task forces. 
1.22 	(3) When the commissioner determines that distress and unemployment exists or 
1.23 	may exist in the future in any county by reason of the removal of natural resources or 
1.24 	a possibly limited use of natural resources in the future and any resulting decrease in 
1.25 	employment, the commissioner may use whatever amounts of the appropriation made to 
2.1 	the commissioner of revenue in section  298.28 that are determined to be necessary and 
2.2 	proper in the development of the remaining resources of the county and in the vocational 
2.3 	training and rehabilitation of its residents, except that the amount needed to cover cost 
2.4 	overruns awarded to a contractor by an arbitrator in relation to a contract awarded by 
2.5 	the commissioner or in effect after July 1, 1985, is appropriated from the general fund. 
2.6 	For the purposes of this section, "development of remaining resources" includes, but is 
2.7 	not limited to, the promotion of tourism. 

2.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.9 	Sec. 2. Minnesota Statutes 2004, section 298.22, is amended by adding a subdivision 
2.10 	to read:
2.11 		Subd. 11.Budgeting. (a) The commissioner of Iron Range resources and 
2.12 	rehabilitation shall annually prepare a budget of operational expenditures, programs, 
2.13 	and projects, and submit it to the Iron Range Resources and Rehabilitation Board and 
2.14 	the governor for approval. The commissioner is authorized to expend available funds 
2.15 	approved in the budget for operational expenditures and, to the extent provided in 
2.16 	paragraph (c), for programs.
2.17 	(b) Expenditures identified as projects under the approved annual budget require 
2.18 	specific project approval as further provided by the particular account from which the 
2.19 	project is funded.
2.20 	(c) Expenditures of funds provided under section 298.22 or 298.223 for programs 
2.21 	approved in the annual budget, except grants to for-profit recipients, do not require further 
2.22 	approval by the Iron Range Resources and Rehabilitation Board or by the governor.

2.23 	Sec. 3. Minnesota Statutes 2004, section 298.2213, subdivision 4, is amended to read:
2.24 		Subd. 4.Project and program approval. The board commissioner shall by August 
2.25 	1 each year prepare a list ofsubmit to the Iron Range Resources and Rehabilitation Board 
2.26 	projects and programs to be funded from the money appropriated in this section with 
2.27 	necessary supporting information including descriptions of the programs, projects, plans, 
2.28 	and cost estimates. A project or program must not be approved by the board unless it 
2.29 	finds that:
2.30 	(1) the project or program will materially assist, directly or indirectly, the creation of 
2.31 	additional long-term employment opportunities;
2.32 	(2) the prospective benefits of the expenditure exceed the anticipated costs; and
2.33 	(3) in the case of assistance to private enterprise, the project or program will serve a 
2.34 	sound business purpose.
3.1 	To be proposed by the board, aEach project or program must be approved by 
3.2 	a majority of the Iron Range Resources and Rehabilitation Board members and the 
3.3 	commissioner of Iron Range resources and rehabilitation. The list of projects and 
3.4 	programs must be submitted to the governor, who shall, by November 15 of each year,
3.5 	approve, disapprove, or return for further consideration, each project and program. The 
3.6 	money for a project or program may be spent only upon approval of the project or program 
3.7 	by the governor. The board may submit supplemental projects for approval at any time.

3.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.9 	Sec. 4. Minnesota Statutes 2004, section 298.223, subdivision 2, is amended to read:
3.10 		Subd. 2.Administration. The taconite area environmental protection fund shall 
3.11 	be administered by the commissioner of the Iron Range resources and rehabilitation 
3.12 	Board. The commissioner shall by September 1 of each year submit to the Iron Range 
3.13 	Resources and Rehabilitation Board a list of projects and programs to be funded from the 
3.14 	taconite area environmental protection fund, with such supporting information including 
3.15 	description of the projects, plans, and cost estimates as may be necessary. Upon approval 
3.16 	by a majority of the members of the Iron Range Resources and Rehabilitation Board, this 
3.17 	list shall be submitted to the governor by November 1 of each year. By December 1 of 
3.18 	each year, by the commissioner of Iron Range resources and rehabilitation, and by the 
3.19 	governor shall approve or disapprove, or return for further consideration, each project.,
3.20 	funds for a project or program may be expended only upon approval of the project by the 
3.21 	board and governor. The commissioner may submit supplemental projects to the board 
3.22 	and governor for approval at any time.

3.23 	Sec. 5. Minnesota Statutes 2004, section 298.223, subdivision 3, is amended to read:
3.24 		Subd. 3.Appropriation. There is hereby annually appropriated to the commissioner 
3.25 	of Iron Range resources and rehabilitation such taconite area environmental protection 
3.26 	funds as are necessary to carry out the projects and programs approved and such funds as 
3.27 	are necessary for administration of this section. Annual administrative costs, not including 
3.28 	detailed engineering expenses for the projects, shall not exceed five percent of the amount 
3.29 	annually expended from the fund by the board and the governor.
3.30 	Funds for the purposes of this section are provided by section  298.28, subdivision 
3.31 	11, relating to the taconite area environmental protection fund. 

3.32 	Sec. 6. Minnesota Statutes 2005 Supplement, section 298.296, subdivision 1, is 
3.33 	amended to read:
4.1 		Subdivision 1.Project and program approval. The board commissioner shall 
4.2 	by August 1 of each year prepare a list of submit to the Iron Range Resources and 
4.3 	Rehabilitation Board projects and programs to be funded from the Douglas J. Johnson 
4.4 	economic protection trust with necessary supporting information including description 
4.5 	of the programs, projects, plans, and cost estimates. These projects and programs shall 
4.6 	be consistent with the priorities established in section 298.292 and shall not be approved 
4.7 	by the board unless it finds that:
4.8 	(a) the project or program will materially assist, directly or indirectly, the creation of 
4.9 	additional long-term employment opportunities;
4.10 	(b) the prospective benefits of the expenditure exceed the anticipated costs; and
4.11 	(c) in the case of assistance to private enterprise, the project or program will serve a 
4.12 	sound business purpose.
4.13 	To be proposed by the board, a Each project and program must be approved by at 
4.14 	least eight Iron Range Resources and Rehabilitation Board members and the commissioner 
4.15 	of Iron Range resources and rehabilitation. The list of projects and programs shall 
4.16 	be submitted to the governor, who shall, by November 15 of each year, approve or 
4.17 	disapprove, or return for further consideration, each project and program. The money for a 
4.18 	project or program may be expended only upon approval of the project or program by the 
4.19 	governor. The board may submit supplemental projects for approval at any time.

4.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

4.21 	Sec. 7. Minnesota Statutes 2004, section 298.296, subdivision 2, is amended to read:
4.22 		Subd. 2.Expenditure of funds. (a) Before January 1, 2028, funds may be expended 
4.23 	on projects and programs and for administration of the trust fund only from the net 
4.24 	interest, earnings, and dividends arising from the investment of the trust at any time, 
4.25 	including net interest, earnings, and dividends that have arisen prior to July 13, 1982, plus 
4.26 	$10,000,000 made available for use in fiscal year 1983, except that any amount required 
4.27 	to be paid out of the trust fund to provide the property tax relief specified in Laws 1977, 
4.28 	chapter 423, article X, section 4, and to make school bond payments and payments to 
4.29 	recipients of taconite production tax proceeds pursuant to section  298.225, may be taken 
4.30 	from the corpus of the trust. 
4.31 	(b) Additionally, upon recommendation by the board, up to $13,000,000 from the 
4.32 	corpus of the trust may be made available for use as provided in subdivision 4, and up to 
4.33 	$10,000,000 from the corpus of the trust may be made available for use as provided in 
4.34 	section  298.2961. 
5.1 	(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust 
5.2 	on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts 
5.3 	made available under section  298.28, subdivision 4, and Laws 2002, chapter 377, article 
5.4 	8, section 17, may be expended on projects. Funds may be expended for projects under 
5.5 	this paragraph only if the project: 
5.6 	(1) is for the purposes established under section  298.292, subdivision 1, clause 
5.7 	(1) or (2); and 
5.8 	(2) is approved by the board upon an affirmative vote of at least ten of its members.
5.9 	No money made available under this paragraph or paragraph (d) can be used for 
5.10 	administrative or operating expenses of the Iron Range Resources and Rehabilitation 
5.11 	Board or agency or expenses relating to any facilities owned or operated by the board
5.12 	thereby on May 18, 2002.
5.13 	(d) Upon recommendation by a unanimous vote of all members of the board, 
5.14 	amounts in addition to those authorized under paragraphs (a), (b), and (c) may be 
5.15 	expended on projects described in section  298.292, subdivision 1. 
5.16 	(e) Annual administrative costs, not including detailed engineering expenses for the 
5.17 	projects, shall not exceed five percent of the net interest, dividends, and earnings arising 
5.18 	from the trust in the preceding fiscal year.
5.19 	(f) Principal and interest received in repayment of loans made pursuant to this 
5.20 	section, and earnings on other investments made under section  298.292, subdivision 2, 
5.21 	clause (4), shall be deposited in the state treasury and credited to the trust. These receipts 
5.22 	are appropriated to the board commissioner for the purposes of sections  298.291 to  
5.23 	298.298. 

5.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

5.25 	Sec. 8.  REPEALER.
 5.26 	Minnesota Statutes 2005 Supplement, section 298.298, is repealed.

5.27 	EFFECTIVE DATE. This section is effective the day following final enactment.