1.1    .................... moves to amend H.F. No. 3201 as follows:
1.2Page 85, after line 9, insert:


1.5    Section 1. Minnesota Statutes 2006, section 276A.01, subdivision 3, is amended to
1.6read:
1.7    Subd. 3. Commercial-industrial property. "Commercial-industrial property"
1.8means the following categories of property, as defined in section 273.13, excluding that
1.9portion of the property (i) that may, by law, constitute the tax base for a tax increment
1.10pledged pursuant to section 469.042 or 469.162 or sections 469.174 to 469.178,
1.11certification of which was requested prior to May 1, 1996, to the extent and while the tax
1.12increment is so pledged; or (ii) that is exempt from taxation under section 272.02:
1.13    (1) that portion of class 5 property consisting of unmined iron ore and low-grade
1.14iron-bearing formations as defined in section 273.14, tools, implements, and machinery,
1.15except the portion of high voltage transmission lines, the value of which is deducted from
1.16net tax capacity under section 273.425; and
1.17    (2) that portion of class 3 and class 5 property which is either used or zoned for use
1.18for any commercial or industrial purpose, including property that becomes taxable under
1.19section 6, except for such property which is, or, in the case of property under construction,
1.20will when completed be used exclusively for residential occupancy and the provision of
1.21services to residential occupants thereof. Property must be considered as used exclusively
1.22for residential occupancy only if each of not less than 80 percent of its occupied residential
1.23units is, or, in the case of property under construction, will when completed be occupied
1.24under an oral or written agreement for occupancy over a continuous period of not less
1.25than 30 days.
2.1    If the classification of property prescribed by section 273.13 is modified by
2.2legislative amendment, the references in this subdivision are to the successor class or
2.3classes of property, or portions thereof, that include the kinds of property designated
2.4in this subdivision.
2.5EFFECTIVE DATE.This section is effective for the 2008 assessment and
2.6thereafter.

2.7    Sec. 2. Minnesota Statutes 2006, section 276A.04, is amended to read:
2.8276A.04 INCREASE IN NET TAX CAPACITY.
2.9    By July 15 of 1997 and each subsequent year, the auditor of each county in the
2.10area shall determine the amount, if any, by which the net tax capacity determined in the
2.11preceding year pursuant to section 276A.03, of commercial-industrial property subject to
2.12taxation within each municipality in the county exceeds the net tax capacity in 1995 of
2.13commercial-industrial property subject to taxation within that municipality, including the
2.14total net tax capacity of property that becomes taxable under section 6. If a municipality is
2.15located in two or more counties within the area, the auditors of those counties shall certify
2.16the data required by section 276A.03 to the county auditor responsible for allocating
2.17the levies of that municipality between or among the affected counties. That county
2.18auditor shall determine the amount of the net excess, if any, for the municipality under
2.19this section, and certify that amount under section 276A.05. The increase in total net tax
2.20capacity determined by this section must be reduced by the amount of any decreases in
2.21the net tax capacity of commercial-industrial property resulting from any court decisions,
2.22court-related stipulation agreements, or abatements for a prior year, and only in the
2.23amount of such decreases made during the 12-month period ending on May 1 of the
2.24current assessment year, where the decreases, if originally reflected in the determination of
2.25a prior year's net tax capacity under section 276A.03, would have resulted in a smaller
2.26contribution from the municipality in that year. An adjustment for the decreases shall be
2.27made only if the municipality made a contribution in a prior year based on the higher net
2.28tax capacity of the commercial-industrial property.
2.29EFFECTIVE DATE.This section is effective for the 2008 assessment and
2.30thereafter.

2.31    Sec. 3. Minnesota Statutes 2006, section 298.22, is amended by adding a subdivision
2.32to read:
3.1    Subd. 5a. Forest trust. The commissioner, upon the affirmative vote of a majority
3.2of the members of the board, may purchase forest lands in the taconite assistance area
3.3defined in under section 273.1341 with funds specifically authorized for the purchase. The
3.4acquired forest lands must be held in trust for the benefit of the citizens of the taconite
3.5assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be
3.6managed and developed for recreation and economic development purposes. Proceeds
3.7derived from the management of the lands and from the sale of timber or removal of
3.8gravel or other minerals from these forest lands shall be deposited into an Iron Range
3.9Miners' Memorial Forest account that is established within the state financial accounts.
3.10Funds may be expended from the account upon approval of a majority of the members of
3.11the board to purchase, manage, administer, convey interests in, and improve the forest
3.12lands. By majority vote of the members of the board, money in the Iron Range Miners'
3.13Memorial Forest account may be transferred into the corpus of the Douglas J. Johnson
3.14economic protection trust fund established under sections 298.291 to 298.294. The
3.15property acquired under the authority granted by this subdivision and income derived from
3.16the property or the operation or management of the property are exempt from taxation
3.17by the state or its political subdivisions.
3.18EFFECTIVE DATE.This section is effective the day following final enactment.

3.19    Sec. 4. Minnesota Statutes 2006, section 298.2214, subdivision 2, is amended to read:
3.20    Subd. 2. Iron Range Higher Education Committee; membership. The members
3.21of the committee shall consist of:
3.22    (1) one member appointed by the governor;
3.23    (2) one member appointed by the president of the University of Minnesota;
3.24    (3) two four members appointed by the commissioner of the Iron Range Resources
3.25and Rehabilitation Board appointed by the chair; and
3.26    (4) the commissioner of Iron Range resources and rehabilitation
3.27    (4) the president of the Northeast Higher Education District or its successor.

3.28    Sec. 5. Minnesota Statutes 2006, section 298.24, subdivision 1, is amended to read:
3.29    Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2001, 2002,
3.30and 2003, there is imposed upon taconite and iron sulphides, and upon the mining and
3.31quarrying thereof, and upon the production of iron ore concentrate therefrom, and upon
3.32the concentrate so produced, a tax of $2.103 per gross ton of merchantable iron ore
3.33concentrate produced therefrom. For concentrates produced in 2005, the tax rate is the
3.34same rate imposed for concentrates produced in 2004.
4.1    (b) For concentrates produced in 2006 and subsequent years, the tax rate shall be
4.2equal to the preceding year's tax rate plus an amount equal to the preceding year's tax rate
4.3multiplied by the percentage increase in the implicit price deflator from the fourth quarter
4.4of the second preceding year to the fourth quarter of the preceding year. "Implicit price
4.5deflator" means the implicit price deflator for the gross domestic product prepared by the
4.6Bureau of Economic Analysis of the United States Department of Commerce.
4.7    (c) On concentrates produced in 1997 and thereafter, an additional tax is imposed
4.8equal to three cents per gross ton of merchantable iron ore concentrate for each one
4.9percent that the iron content of the product exceeds 72 percent, when dried at 212 degrees
4.10Fahrenheit.
4.11    (d) The tax shall be imposed on the average of the production for the current year
4.12and the previous two years. The rate of the tax imposed will be the current year's tax rate.
4.13This clause shall not apply in the case of the closing of a taconite facility if the property
4.14taxes on the facility would be higher if this clause and section 298.25 were not applicable.
4.15    (e) If the tax or any part of the tax imposed by this subdivision is held to be
4.16unconstitutional, a tax of $2.103 per gross ton of merchantable iron ore concentrate
4.17produced shall be imposed.
4.18    (f) Consistent with the intent of this subdivision to impose a tax based upon the
4.19weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
4.20determine the weight of merchantable iron ore concentrate included in fluxed pellets by
4.21subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic
4.22flux additives included in the pellets from the weight of the pellets. For purposes of this
4.23paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite,
4.24olivine, or other basic flux additives are combined with merchantable iron ore concentrate.
4.25No subtraction from the weight of the pellets shall be allowed for binders, mineral and
4.26chemical additives other than basic flux additives, or moisture.
4.27    (g)(1) Notwithstanding any other provision of this subdivision, for the first two years
4.28of a plant's commercial production of direct reduced ore, no tax is imposed under this
4.29section. As used in this paragraph, "commercial production" is production of more than
4.3050,000 tons of direct reduced ore in the current year or in any prior year, "noncommercial
4.31production" is production of 50,000 tons or less of direct reduced ore in any year, and
4.32"direct reduced ore" is ore that results in a product that has an iron content of at least 75
4.33percent. For the third year of a plant's commercial production of direct reduced ore, the
4.34rate to be applied to direct reduced ore is 25 percent of the rate otherwise determined
4.35under this subdivision. For the fourth commercial production year, the rate is 50 percent of
4.36the rate otherwise determined under this subdivision; for the fifth commercial production
5.1year, the rate is 75 percent of the rate otherwise determined under this subdivision; and for
5.2all subsequent commercial production years, the full rate is imposed.
5.3    (2) Subject to clause (1), production of direct reduced ore in this state is subject to
5.4the tax imposed by this section, but if that production is not produced by a producer
5.5of taconite or iron sulfides, the production of taconite or iron sulfides consumed in the
5.6production of direct reduced iron in this state is not subject to the tax imposed by this
5.7section on taconite or iron sulfides.
5.8    (3) Notwithstanding any other provision of this subdivision, no tax is imposed
5.9on direct reduced ore under this section during the facility's noncommercial production
5.10of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial
5.11production of direct reduced ore is subject to the tax imposed by this section on taconite
5.12and iron sulphides. Three-year average production of direct reduced ore does not
5.13include production of direct reduced ore in any noncommercial year. Three-year average
5.14production for a direct reduced ore facility that has noncommercial production is the
5.15average of the commercial production of direct reduced ore for the current year and the
5.16previous two commercial years.
5.17    (4) This paragraph applies only to plants for which all environmental permits have
5.18been obtained and construction has begun before July 1, 2008.
5.19EFFECTIVE DATE.This section is effective the day following final enactment.

5.20    Sec. 6. Minnesota Statutes 2006, section 298.25, is amended to read:
5.21298.25 TAXES ADDITIONAL TO OCCUPATION TAX; IN LIEU OF OTHER
5.22TAXES.
5.23    The taxes imposed under section 298.24 shall be in addition to the occupation tax
5.24imposed upon the business of mining and producing iron ore. Except as herein otherwise
5.25provided, such taxes shall be in lieu of all other taxes upon such taconite, iron sulphides,
5.26and direct reduced ore or the lands in which they are contained, or upon the mining or
5.27quarrying thereof, or the production of concentrate or direct reduced ore therefrom, or
5.28upon the concentrate or direct reduced ore produced, or upon the machinery, equipment,
5.29tools, supplies and buildings used in such mining, quarrying or production, or upon the
5.30lands occupied by, or used in connection with, such mining, quarrying or production
5.31facilities. If electric or steam power for the mining, transportation or concentration of
5.32such taconite, concentrates or direct reduced ore produced therefrom is generated in
5.33plants principally devoted to the generation of power for such purposes, the plants in
5.34which such power is generated and all machinery, equipment, tools, supplies, transmission
5.35and distribution lines used in the generation and distribution of such power, shall not be
6.1considered to be machinery, equipment, tools, supplies and buildings used in the mining,
6.2quarrying, or production of taconite, taconite concentrates or direct reduced ore within
6.3the meaning of this section, and shall be subject to general property taxation. If part
6.4of the power generated in such a plant is used for purposes other than the mining or
6.5concentration of taconite or direct reduced ore or the transportation or loading of taconite,
6.6the concentrates thereof or direct reduced ore, a proportionate share of the value of such
6.7generating facilities, equal to the proportion that the power used for such other purpose
6.8bears to the generating capacity of the plant, shall be subject to the general property tax
6.9in the same manner as other property; provided, power generated in such a plant and
6.10exchanged for an equivalent amount of power which is used for the mining, transportation,
6.11or concentration of such taconite, concentrates or direct reduced ore produced therefrom,
6.12shall be considered as used for such purposes within the meaning of this section. Nothing
6.13herein shall prevent the assessment and taxation of the surface of reserve land containing
6.14taconite and not occupied by such facilities or used in connection therewith at the value
6.15thereof without regard to the taconite or iron sulphides therein, nor the assessment and
6.16taxation of merchantable iron ore or other minerals, or iron-bearing materials other than
6.17taconite or iron sulphides in such lands in the manner provided by law, nor the assessment
6.18and taxation of facilities used in producing sulphur or sulphur products from iron sulphide
6.19concentrates, or in refining such sulphur products, under the general property tax laws.
6.20Nothing herein shall except from general taxation or from taxation as provided by other
6.21laws any property used for residential or townsite purposes, including utility services
6.22thereto. This section does not provide an exemption from general property taxation for ore
6.23docks even if located at the site of a taconite production facility.
6.24EFFECTIVE DATE.This section is effective for taxes levied in 2008, payable
6.25in 2009, and thereafter.

6.26    Sec. 7. Minnesota Statutes 2006, section 298.28, subdivision 4, is amended to read:
6.27    Subd. 4. School districts. (a) 17.15 23.15 cents per taxable ton, plus the increase
6.28provided in paragraph (d) must be allocated to qualifying school districts to be distributed,
6.29based upon the certification of the commissioner of revenue, under paragraphs (b) and,
6.30(c), except as otherwise provided in paragraph and (f).
6.31    (b) (i) 3.43 cents per taxable ton must be distributed to the school districts in which
6.32the lands from which taconite was mined or quarried were located or within which the
6.33concentrate was produced. The distribution must be based on the apportionment formula
6.34prescribed in subdivision 2.
7.1    (ii) Four cents per taxable ton from each taconite facility must be distributed to
7.2each affected school district for deposit in a fund dedicated to building maintenance
7.3and repairs, as follows:
7.4    (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
7.5School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
7.6districts;
7.7    (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
7.8Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
7.9districts;
7.10    (3) proceeds from the Mittal Steel Company and Minntac or their successors are
7.11distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
7.122711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
7.13    (4) proceeds from the Northshore Mining Company or its successor are distributed
7.14to Independent School Districts Nos. 2142, St. Louis County, and 318, Lake Superior,
7.15or their successor districts; and
7.16    (5) proceeds from United Taconite or its successor are distributed to Independent
7.17School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
7.18successor districts.
7.19    Revenues that are required to be distributed to more than one district shall be
7.20apportioned according to the number of pupil units identified in section 126C.05,
7.21subdivision 1, enrolled in the second previous year.
7.22    (c)(i) 13.72 15.72 cents per taxable ton, less any amount distributed under paragraph
7.23(e), shall be distributed to a group of school districts comprised of those school districts
7.24which qualify as a tax relief area under section 273.134, paragraph (b), or in which there is
7.25a qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
7.26to school district indexes as follows: for each school district, its pupil units determined
7.27under section 126C.05 for the prior school year shall be multiplied by the ratio of the
7.28average adjusted net tax capacity per pupil unit for school districts receiving aid under
7.29this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
7.30ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
7.31Each district shall receive that portion of the distribution which its index bears to the sum
7.32of the indices for all school districts that receive the distributions.
7.33    (ii) Notwithstanding clause (i), each school district that receives a distribution
7.34under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this
7.35clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on
7.36severed mineral values after reduction for any portion distributed to cities and towns under
8.1section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its levy
8.2reduction under section 126C.48, subdivision 8, for the second year prior to the year of the
8.3distribution shall receive a distribution equal to the difference; the amount necessary to
8.4make this payment shall be derived from proportionate reductions in the initial distribution
8.5to other school districts under clause (i).
8.6    (d) Any school district described in paragraph (c) where a levy increase pursuant to
8.7section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001,
8.8shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
8.9pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous
8.10year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
8.11times the district's taxable net tax capacity in the second previous year.
8.12    If the total amount provided by paragraph (d) is insufficient to make the payments
8.13herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
8.14so as not to exceed the funds available. Any amounts received by a qualifying school
8.15district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
8.16education aid which the district receives pursuant to section 126C.13 or the permissible
8.17levies of the district. Any amount remaining after the payments provided in this paragraph
8.18shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
8.19deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
8.20economic protection trust fund as provided in subdivision 11.
8.21    Each district receiving money according to this paragraph shall reserve the lesser of
8.22the amount received under this paragraph or $25 times the number of pupil units served
8.23in the district. It may use the money for early childhood programs or for outcome-based
8.24learning programs that enhance the academic quality of the district's curriculum. The
8.25outcome-based learning programs must be approved by the commissioner of education.
8.26    (e) There shall be distributed to any school district the amount which the school
8.27district was entitled to receive under section 298.32 in 1975.
8.28    (f) Effective for the distribution in 2003 only, five percent of the distributions to
8.29school districts under paragraphs (b), (c), and (e); subdivision 6, paragraph (c); subdivision
8.3011; and section 298.225, shall be distributed to the general fund. The remainder less any
8.31portion distributed to cities and towns under section 126C.48, subdivision 8, paragraph
8.32(5), shall be distributed to the Douglas J. Johnson economic protection trust fund created
8.33in section 298.292. Fifty percent of the amount distributed to the Douglas J. Johnson
8.34economic protection trust fund shall be made available for expenditure under section
8.35298.293 as governed by section 298.296. Effective in 2003 only, 100 percent of the
8.36distributions to school districts under section 477A.15 less any portion distributed to cities
9.1and towns under section 126C.48, subdivision 8, paragraph (5), shall be distributed to the
9.2general fund. Four cents per taxable ton must be distributed to qualifying school districts
9.3according to the distribution specified in paragraph (b), clause (ii), and two cents per
9.4taxable ton must be distributed according to the distribution specified in paragraph (c).
9.5These amounts are not subject to section 126C.48, subdivision 8.
9.6EFFECTIVE DATE.This section is effective for distributions in 2009 and
9.7thereafter.

9.8    Sec. 8. Minnesota Statutes 2006, section 298.28, subdivision 5, is amended to read:
9.9    Subd. 5. Counties. (a) 26.05 cents per taxable ton is allocated to counties to be
9.10distributed, based upon certification by the commissioner of revenue, under paragraphs
9.11(b) to (d).
9.12    (b) 20.525 15.525 cents per taxable ton shall be distributed to the county in which
9.13the taconite is mined or quarried or in which the concentrate is produced, less any
9.14amount which is to be distributed pursuant to paragraph (c). The apportionment formula
9.15prescribed in subdivision 2 is the basis for the distribution.
9.16    (c) If an electric power plant owned by and providing the primary source of power
9.17for a taxpayer mining and concentrating taconite is located in a county other than the
9.18county in which the mining and the concentrating processes are conducted, one cent per
9.19taxable ton of the tax distributed to the counties pursuant to paragraph (b) and imposed
9.20on and collected from such taxpayer shall be paid to the county in which the power plant
9.21is located.
9.22    (d) 5.525 10.525 cents per taxable ton shall be paid to the county from which the
9.23taconite was mined, quarried or concentrated to be deposited in the county road and
9.24bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those
9.25processes are carried on in more than one county, the commissioner shall follow the
9.26apportionment formula prescribed in subdivision 2.
9.27EFFECTIVE DATE.This section is effective for distributions in 2009 and
9.28thereafter.

9.29    Sec. 9. Minnesota Statutes 2006, section 298.28, is amended by adding a subdivision
9.30to read:
9.31    Subd. 9d. Iron Range higher education account. Two cents per taxable ton must
9.32be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
9.33an Iron Range higher education account that is hereby created, to be used for higher
9.34education programs conducted at educational institutions in the taconite assistance area
10.1defined in section 273.1341. The Iron Range Higher Education committee under section
10.2298.2214 and the Iron Range Resources and Rehabilitation Board must approve all
10.3expenditures from the account.
10.4EFFECTIVE DATE.This section is effective for production in 2007, distributions
10.5in 2008, and thereafter.

10.6    Sec. 10. Minnesota Statutes 2006, section 298.282, subdivision 1, is amended to read:
10.7    Subdivision 1. Distribution of taconite municipal aid account. The amount
10.8deposited with the county as provided in section 298.28, subdivision 3, must be distributed
10.9as provided by this section among: (1) the municipalities comprising a tax relief area
10.10under section 273.134, paragraph (b),; (2) a township that contains a state park consisting
10.11primarily of an underground iron ore mine; and (3) a city located within five miles of that
10.12state park, each being referred to in this section as a qualifying municipality.
10.13EFFECTIVE DATE.This section is effective for distributions in 2008 and
10.14thereafter.

10.15    Sec. 11. Minnesota Statutes 2006, section 298.292, subdivision 2, is amended to read:
10.16    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
10.17fund may be used for the following purposes:
10.18    (1) to provide loans, loan guarantees, interest buy-downs and other forms of
10.19participation with private sources of financing, but a loan to a private enterprise shall be
10.20for a principal amount not to exceed one-half of the cost of the project for which financing
10.21is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
10.22lesser of eight percent or an interest rate three percentage points less than a full faith
10.23and credit obligation of the United States government of comparable maturity, at the
10.24time that the loan is approved;
10.25    (2) to fund reserve accounts established to secure the payment when due of the
10.26principal of and interest on bonds issued pursuant to section 298.2211;
10.27    (3) to pay in periodic payments or in a lump sum payment any or all of the interest
10.28on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
10.29or retrofitting heating facilities in connection with district heating systems or systems
10.30utilizing alternative energy sources; and
10.31    (4) to invest in a venture capital fund or enterprise that will provide capital to other
10.32entities that are engaging in, or that will engage in, projects or programs that have the
10.33purposes set forth in subdivision 1. No investments may be made in a venture capital fund
10.34or enterprise unless at least two other unrelated investors make investments of at least
11.1$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
11.2J. Johnson economic protection trust fund may not exceed the amount of the largest
11.3investment by an unrelated investor in the venture capital fund or enterprise. For purposes
11.4of this subdivision, an "unrelated investor" is a person or entity that is not related to
11.5the entity in which the investment is made or to any individual who owns more than 40
11.6percent of the value of the entity, in any of the following relationships: spouse, parent,
11.7child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
11.8the value of all interests in it. For purposes of determining the limitations under this
11.9clause, the amount of investments made by an investor other than the Douglas J. Johnson
11.10economic protection trust fund is the sum of all investments made in the venture capital
11.11fund or enterprise during the period beginning one year before the date of the investment
11.12by the Douglas J. Johnson economic protection trust fund; and
11.13    (5) to purchase forest land in the taconite assistance area defined in section 273.1341
11.14to be held and managed as a public trust for the benefit of the area for the purposes
11.15authorized in section 298.22, subdivision 5a.
11.16    Money from the trust fund shall be expended only in or for the benefit of the taconite
11.17assistance area defined in section 273.1341.
11.18EFFECTIVE DATE.This section is effective the day following final enactment.

11.19    Sec. 12. Minnesota Statutes 2006, section 298.296, subdivision 2, is amended to read:
11.20    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended
11.21on projects and for administration of the trust fund only from the net interest, earnings,
11.22and dividends arising from the investment of the trust at any time, including net interest,
11.23earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
11.24available for use in fiscal year 1983, except that any amount required to be paid out of the
11.25trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
11.26X, section 4, and to make school bond payments and payments to recipients of taconite
11.27production tax proceeds pursuant to section 298.225, may be taken from the corpus of
11.28the trust.
11.29    (b) Additionally, upon recommendation by the board, up to $13,000,000 from the
11.30corpus of the trust may be made available for use as provided in subdivision 4, and up to
11.31$10,000,000 from the corpus of the trust may be made available for use as provided in
11.32section 298.2961.
11.33    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
11.34on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
11.35made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article
12.18, section 17, may be expended on projects. Funds may be expended for projects under
12.2this paragraph only if the project:
12.3    (1) is for the purposes established under section 298.292, subdivision 1, clause
12.4(1) or (2); and
12.5    (2) is approved by the board upon an affirmative vote of at least ten of its members.
12.6No money made available under this paragraph or paragraph (d) can be used for
12.7administrative or operating expenses of the Iron Range Resources and Rehabilitation
12.8Board or expenses relating to any facilities owned or operated by the board on May 18,
12.92002.
12.10    (d) Upon recommendation by a unanimous vote of all members of the board,
12.11amounts in addition to those authorized under paragraphs (a), (b), and (c) may be
12.12expended on projects described in section 298.292, subdivision 1.
12.13    (e) Annual administrative costs, not including detailed engineering expenses for the
12.14projects, shall not exceed five percent of the net interest, dividends, and earnings arising
12.15from the trust in the preceding fiscal year.
12.16    (f) Principal and interest received in repayment of loans made pursuant to this
12.17section, and earnings on other investments made under section 298.292, subdivision 2,
12.18clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
12.19are appropriated to the board for the purposes of sections 298.291 to 298.298.
12.20    (g) Additionally, notwithstanding section 298.293, upon affirmative vote of a
12.21majority of the members of the board, money from the corpus of the trust may be expanded
12.22to purchase forest lands within the taconite assistance area as provided in sections 298.22,
12.23subdivision 5a, and 298.292, subdivision 2, clause (5).
12.24EFFECTIVE DATE.This section is effective the day following final enactment.

12.25    Sec. 13. Minnesota Statutes 2006, section 298.2961, subdivision 4, is amended to read:
12.26    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions
12.27under section 298.28, subdivision 9b, and to make grants or loans as provided in this
12.28subdivision. Any grant or loan made under this subdivision must be approved by
12.29a majority of the members of the Iron Range Resources and Rehabilitation Board,
12.30established under section 298.22.
12.31    (b) Distributions received in calendar year 2005 are allocated to the city of Virginia
12.32for improvements and repairs to the city's steam heating system.
12.33    (c) Distributions received in calendar year 2006 are allocated to a project of the
12.34public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
12.35generating plants to the use of biomass products, such as wood.
13.1    (d) Distributions received in calendar year 2007 must be paid to the city of Tower to
13.2be used for the East Two Rivers project in or near the city of Tower.
13.3    (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
13.4must be paid to St. Louis County for deposit in its county road and bridge fund to be used
13.5for relocation of St. Louis County Road 715, commonly referred to as Pike River Road.
13.6The remainder of the 2008 distribution and the full amount of the distributions must be
13.7paid to St. Louis County for a grant to the city of Virginia for connecting sewer and water
13.8lines to the St. Louis County maintenance garage on Highway 135, further extending the
13.9lines to interconnect with the city of Gilbert's sewer and water lines. The remainder of the
13.10distributions received in 2008 and all distributions received in 2009 and subsequent years
13.11is are allocated for projects under section 298.223, subdivision 1.
13.12EFFECTIVE DATE.This section is effective the day following final enactment.

13.13    Sec. 14. Minnesota Statutes 2006, section 298.2961, subdivision 5, is amended to read:
13.14    Subd. 5. Public works and local economic development fund. For distributions in
13.152007 only, a special fund is established to receive 38.4 cents per ton that otherwise would
13.16be allocated under section 298.28, subdivision 6. The following amounts are allocated to
13.17St. Louis County acting as the fiscal agent for the recipients for the specific purposes:
13.18    (1) 13.4 cents per ton for the Central Iron Range Sanitary Sewer District for
13.19construction of a combined wastewater facility and notwithstanding section 298.28,
13.20subdivision 11, paragraph (a), or any other law, interest accrued on this money while held
13.21by St. Louis County shall also be distributed to the recipient;
13.22    (2) six cents per ton to the city of Eveleth to redesign and design and construct
13.23improvements to renovate its water treatment facility;
13.24    (3) one cent per ton for the East Range Joint Powers Board to acquire land for and to
13.25design a central wastewater collection and treatment system;
13.26    (4) 0.5 cents per ton to the city of Hoyt Lakes to repair Leeds Road;
13.27    (5) 0.7 cents per ton to the city of Virginia to extend Eighth Street South;
13.28    (6) 0.7 cents per ton to the city of Mountain Iron to repair Hoover Road;
13.29    (7) 0.9 cents per ton to the city of Gilbert for alley repairs between Michigan and
13.30Indiana Avenues and for repayment of a loan to the Minnesota Department of Employment
13.31and Economic Development;
13.32    (8) 0.4 cents per ton to the city of Keewatin for a new city well;
13.33    (9) 0.3 cents per ton to the city of Grand Rapids for planning for a fire and hazardous
13.34materials center;
14.1    (10) 0.9 cents per ton to Aitkin County Growth for an economic development
14.2project for peat harvesting;
14.3    (11) 0.4 cents per ton to the city of Nashwauk to develop a comprehensive city plan;
14.4    (12) 0.4 cents per ton to the city of Taconite for development of a city comprehensive
14.5plan;
14.6    (13) 0.3 cents per ton to the city of Marble for water and sewer infrastructure;
14.7    (14) 0.8 cents per ton to Aitkin County for improvements to the Long Lake
14.8Environmental Learning Center;
14.9    (15) 0.3 cents per ton to the city of Coleraine for the Coleraine Technology Center;
14.10    (16) 0.5 cents per ton to the Economic Development Authority of the city of Grand
14.11Rapids for planning for the North Central Research and Technology Laboratory;
14.12    (17) 0.6 cents per ton to the city of Bovey for sewer and water extension;
14.13    (18) 0.3 cents per ton to the city of Calumet for infrastructure improvements; and
14.14    (19) ten cents per ton to an economic development authority in a city through which
14.15State Highway 1 passes, or a city in Independent School District No. 2142 that has an
14.16active mine, the commissioner of Iron Range Resources and Rehabilitation for deposit
14.17in a Highway 1 Corridor Account established by the commissioner, to be distributed by
14.18the commissioner to any of the cities of Babbitt, Cook, Ely, or Tower, for an economic
14.19development project projects approved by the Iron Range Resources and Rehabilitation
14.20Board; notwithstanding section 298.28, subdivision 11, paragraph (a), or any other law,
14.21interest accrued on this money while held by St. Louis County or the commissioner
14.22shall also be distributed to the recipient.
14.23EFFECTIVE DATE.This section is effective for distributions made in 2008 and
14.24thereafter.

14.25    Sec. 15. Minnesota Statutes 2006, section 298.75, subdivision 1, is amended to read:
14.26    Subdivision 1. Definitions. Except as may otherwise be provided, the following
14.27words, when used in this section, shall have the meanings herein ascribed to them.
14.28    (1) (a) "Aggregate material" shall mean means:
14.29    (1) nonmetallic natural mineral aggregate including, but not limited to sand, silica
14.30sand, gravel, crushed rock, limestone, granite, and borrow, but only if the borrow is
14.31transported on a public road, street, or highway., provided that nonmetallic aggregate
14.32material shall does not include dimension stone and dimension granite; and
14.33    (2) taconite tailings, crushed rock, and architectural or dimension stone and
14.34dimension granite removed from a taconite mine or the site of a previously operated
14.35taconite mine.
15.1    Aggregate material must be measured or weighed after it has been extracted from
15.2the pit, quarry, or deposit.
15.3    (2) (b) "Person" shall mean means any individual, firm, partnership, corporation,
15.4organization, trustee, association, or other entity.
15.5    (3) (c) "Operator" shall mean means any person engaged in the business of removing
15.6aggregate material from the surface or subsurface of the soil, for the purpose of sale,
15.7either directly or indirectly, through the use of the aggregate material in a marketable
15.8product or service.
15.9    (4) (d) "Extraction site" shall mean means a pit, quarry, or deposit containing
15.10aggregate material and any contiguous property to the pit, quarry, or deposit which is used
15.11by the operator for stockpiling the aggregate material.
15.12    (5) (e) "Importer" shall mean means any person who buys aggregate material
15.13produced from a county not listed in paragraph (6) (f) or another state and causes the
15.14aggregate material to be imported into a county in this state which imposes a tax on
15.15aggregate material.
15.16    (6) (f) "County" shall mean means the counties of Pope, Stearns, Benton, Sherburne,
15.17Carver, Scott, Dakota, Le Sueur, Kittson, Marshall, Pennington, Red Lake, Polk, Norman,
15.18Mahnomen, Clay, Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, Sibley,
15.19Hennepin, Washington, Chisago, and Ramsey. County also means any other county whose
15.20board has voted after a public hearing to impose the tax under this section and has notified
15.21the commissioner of revenue of the imposition of the tax.
15.22    (7) (g) "Borrow" shall mean means granular borrow, consisting of durable particles
15.23of gravel and sand, crushed quarry or mine rock, crushed gravel or stone, or any
15.24combination thereof, the ratio of the portion passing the (#200) sieve divided by the
15.25portion passing the (1 inch) sieve may not exceed 20 percent by mass.
15.26EFFECTIVE DATE.This section is effective for aggregate material removed
15.27beginning June 1, 2008.

15.28    Sec. 16. Minnesota Statutes 2006, section 298.75, subdivision 3, is amended to read:
15.29    Subd. 3. Report and remittance. (a) By the 14th day following the last day of each
15.30calendar quarter, every operator or importer shall make and file with the county auditor of
15.31the county in which the aggregate material is removed or imported, a correct report under
15.32oath, in such form and containing such information as the auditor shall require relative to
15.33the quantity of aggregate material removed or imported during the preceding calendar
15.34quarter. The report shall be accompanied by a remittance of the amount of tax due.
16.1    (b) If any of the proceeds of the tax is to be apportioned as provided in subdivision
16.22, the operator or importer shall also include on the report any relevant information
16.3concerning the amount of aggregate material transported, the tax and the county of
16.4destination. The county auditor shall notify the county treasurer of the amount of such
16.5tax and the county to which it is due. The county treasurer shall remit the tax to the
16.6appropriate county within 30 days, except as provided in paragraph (c).
16.7    (c) The proceeds of the tax on aggregate material as defined in subdivision 1,
16.8paragraph (a), clause (2), must be remitted to the commissioner of iron range resources
16.9and rehabilitation to be deposited in the taconite area environmental protection fund under
16.10section 298.223, and used for the purposes of that fund.
16.11EFFECTIVE DATE.This section is effective for aggregate material removed
16.12beginning June 1, 2008.

16.13    Sec. 17. Minnesota Statutes 2006, section 298.75, subdivision 7, is amended to read:
16.14    Subd. 7. Proceeds of taxes. All money collected as taxes under this section on
16.15aggregate material as defined in subdivision 1, paragraph (a), clause (1), shall be deposited
16.16in the county treasury and credited as follows, for expenditure by the county board:
16.17    (a) Sixty percent to the county road and bridge fund for expenditure for the
16.18maintenance, construction and reconstruction of roads, highways and bridges;
16.19    (b) Thirty percent to the road and bridge fund of those towns as determined by the
16.20county board and to the general fund or other designated fund of those cities as determined
16.21by the county board, to be expended for maintenance, construction and reconstruction of
16.22roads, highways and bridges; and
16.23    (c) Ten percent to a special reserve fund which is hereby established, for expenditure
16.24for the restoration of abandoned pits, quarries, or deposits located upon public and tax
16.25forfeited lands within the county.
16.26    If there are no abandoned pits, quarries or deposits located upon public or tax
16.27forfeited lands within the county, this portion of the tax shall be deposited in the county
16.28road and bridge fund for expenditure for the maintenance, construction and reconstruction
16.29of roads, highways and bridges.
16.30EFFECTIVE DATE.This section is effective for aggregate material removed
16.31beginning June 1, 2008.

16.32    Sec. 18. IRON RANGE RESOURCES AND REHABILITATION BOARD;
16.33APPROPRIATION; RETIRE BONDS.
17.1    Commencing with taxes payable in 2008 there is annually appropriated from
17.2the distribution of the taconite production tax revenues to the taconite environmental
17.3protection fund under Minnesota Statutes, section 298.28, subdivision 11, and to the
17.4Douglas J. Johnson economic protection trust fund under Minnesota Statutes, section
17.5298.28, subdivisions 9 and 11, in equal shares, an amount of $500,000 per year.
17.6    The revenue received under this section shall be used only to retire Mesabi East
17.7School District No. 2711 bonds in the amount of $9,000,000 issued September 1, 2006,
17.8and in the amount of $6,250,000 issued March 1, 2007. The payments shall continue
17.9for a period of ten years ending with taxes payable in 2017. Payments to the school
17.10district shall be made annually on March 1, except that the initial annual payment shall
17.11be made by September 1, 2008.
17.12EFFECTIVE DATE.This section is effective the day following final enactment."
17.13Renumber the articles in sequence and correct the internal references
17.14Amend the title accordingly