Bill Text: MN HF2629 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Education finance; cooperatively authorized secondary programs encouraged and aid expanded, excise tax imposed on royalties, income and corporate franchise tax credit allowed, taconite production tax rate increased, distribution of production taxes modified, school bond payment security provided, Douglas J. Johnson economic protection trust fund uses authorized, trust account established to finance school facilities on the Iron Range, bonds issued, and money appropriated.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2014-03-13 - Committee report, to adopt as amended Taxes [HF2629 Detail]
Download: Minnesota-2013-HF2629-Engrossed.html
1.2relating to education finance; taxation; minerals; encouraging cooperatively
1.3authorized secondary programs; expanding cooperation aid; imposing an excise
1.4tax on royalties; allowing an income and corporate franchise tax credit; increasing
1.5the taconite production tax rate; modifying the distribution of production taxes;
1.6providing security for payment of certain school bonds; authorizing uses of the
1.7Douglas J. Johnson economic protection trust fund; establishing a trust account
1.8to finance school facilities on the Iron Range; authorizing the sale and issuance of
1.9state bonds; appropriating money;amending Minnesota Statutes 2012, sections
1.10123A.442, by adding a subdivision; 123A.485; 123A.64; 290.01, by adding a
1.11subdivision; 290.06, by adding a subdivision; 290.62; 290.923, by adding a
1.12subdivision; 298.28, subdivision 11, by adding a subdivision; Minnesota Statutes
1.132013 Supplement, sections 123B.53, subdivision 1; 126C.48, subdivision 8;
1.14290.10, subdivision 1; 298.292, subdivision 2; Laws 2013, chapter 116, article 1,
1.15section 58, subdivision 5; proposing coding for new law in Minnesota Statutes,
1.16chapters 123A; 290; 298; repealing Minnesota Statutes 2012, section 290.923,
1.17subdivision 1.
1.18BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.19 Section 1. Minnesota Statutes 2012, section 123A.442, is amended by adding a
1.20subdivision to read:
1.21 Subd. 4. Cooperatively operated secondary facilities. A school district or
1.22cooperative entity operating a cooperative secondary program that has been approved by
1.23the commissioner under section 123A.482 is eligible for a cooperative facilities grant.
1.24EFFECTIVE DATE.This section is effective the day following final enactment.
1.25 Sec. 2. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
1.26 Subdivision 1. Schools may be jointly operated. Two or more school districts may
1.27agree to jointly operate a secondary facility. The districts may choose to operate the
1.28facility according to a joint powers agreement under section 123A.78 or 471.59.
2.1 Subd. 2. Expanded program offerings. A jointly operated secondary program
2.2seeking funding under section 123A.485 must demonstrate to the commissioner's
2.3satisfaction that the jointly operated program provides enhanced learning opportunities and
2.4broader curriculum offerings to the students attending that program. The commissioner
2.5must approve or disapprove a cooperative secondary program within 60 days of receipt of
2.6an application.
2.7 Subd. 3. Revenue. An approved program that is jointly operated under this section
2.8is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections
2.9123A.44 to 123A.446.
2.10 Subd. 4. Duty to maintain elementary and secondary schools met. A school
2.11district operating a joint facility under this section meets the requirements of section
2.12123A.64.
2.13 Subd. 5. Estimated market value limit exclusion. Bonds for a cooperative facility
2.14operated under this section issued by a member school district are not subject to the net
2.15debt limit under section 475.53, subdivision 4.
2.16 Subd. 6. Allocation of levy authority for joint facility. For purposes of determining
2.17each member district's school levy, a jointly operated secondary program may allocate
2.18program costs to each member district according to the joint powers agreement and each
2.19member district may include those costs in its tax levy. The joint powers agreement may
2.20choose to allocate costs on any basis adopted as part of the joint powers agreement.
2.21 Subd. 7. Effect of consolidation. The joint powers agreement may allow member
2.22school districts that choose to consolidate to continue to certify levies separately based on
2.23each component district's characteristics.
2.24 Subd. 8. Bonds. A joint powers district formed under this section may issue bonds
2.25according to section 123A.78 or its member districts may issue bonds individually after
2.26complying with this subdivision. The joint powers board must submit the project for
2.27review and comment under section 123B.71. The joint powers board must hold a hearing
2.28on the proposal. If the bonds are not issued under section 123A.78, each member district
2.29of the joint powers district must submit the question of authorizing borrowing of funds for
2.30the project to the voters of the district at a special election. The question submitted shall
2.31state the total amount of funding needed from that district. The member district may issue
2.32the bonds according to chapter 475 and certify the levy required by section 475.61 only if
2.33a majority of those voting on the question in that district vote in the affirmative and only
2.34after the board has adopted a resolution pledging the full faith and credit of that unit. The
2.35resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy
2.36shortages that, together with other funds available, would allow the member school board
3.1to pay the principal and interest on the obligations. The clerk of the joint powers board
3.2must certify the vote of any bond elections to the commissioner.
3.3 Subd. 9. Election. A district entering into a joint powers agreement under this
3.4section may conduct a referendum seeking approval for a new facility. This election may
3.5be held separately or at the same time as a bond election under subdivision 8. If the
3.6election is held at the same time, the questions may be asked separately or as a conjunctive
3.7question. The question must be approved by a majority of those voting on the question.
3.8If asked separately and the question fails, a district may not proceed with the sale of
3.9bonds according to subdivision 8.
3.10EFFECTIVE DATE.This section is effective the day following final enactment.
3.11 Sec. 3. Minnesota Statutes 2012, section 123A.485, is amended to read:
3.12123A.485 CONSOLIDATION TRANSITIONREVENUE AID.
3.13 Subdivision 1. Eligibility and use. A district that operates a cooperative facility
3.14under section 123A.482 or that has been reorganized after June 30, 1994, under section
3.15123A.48
is eligible for consolidation transition revenue. Revenue is equal to the sum of
3.16 aidunder subdivision 2 and levy under subdivision 3. Consolidation transition revenue
3.17 aid may only be used according to this section. Revenue must be used for the following
3.18purposes and may be distributed among these purposes at the discretion of the district or
3.19the governing board of the cooperative facility:
3.20(1) to offer early retirement incentives as provided by section123A.48, subdivision
3.2123 ;
3.22(2) to reduce operating debt as defined in section123B.82 ;
3.23(3) to enhance learning opportunities for students in the reorganized district;and
3.24(4) to repay building debt; or
3.25(5) for other costs incurred in the reorganization.
3.26Revenue received and utilized under clause (3) or(4) (5) may be expended for
3.27operating, facilities, and/or equipment.
3.28 Subd. 2. Aid.(a) Consolidation transition aid is equal to $200 $300 times the
3.29number ofresident adjusted pupil units in the newly created cooperative facility under
3.30section 123A.482 or the consolidated districtin the year of consolidation and $100 times
3.31the number of resident pupil units in the first year following the year of consolidation
3.32 under section 123A.48.The number of pupil units used to calculate aid in either year
3.33shall not exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts
4.1consolidating July 1, 1995, and thereafter A district may receive aid under this section for
4.2not more than five years except as provided in subdivision 4.
4.3(b) If the total appropriation for consolidation transition aid for any fiscal year, plus
4.4any amount transferred under section
127A.41, subdivision 8, is insufficient to pay all
4.5districts the full amount of aid earned, the department must first pay the districts in the first
4.6year following the year of consolidation the full amount of aid earned and distribute any
4.7remaining funds to the newly created districts in the first year of consolidation.
4.8 Subd. 3. Levy. If the aid available in subdivision 2 is insufficient to cover the costs
4.9of the district under section123A.48, subdivision 23 , the district may levy the difference
4.10over a period of time not to exceed three years.
4.11 Subd. 4. New districts. If a district enters into a cooperative secondary facilities
4.12program or consolidates with another district that has received aid under section123A.39,
4.13subdivision 3 , or
123A.485 for a combination or consolidation taking effect within
4.14six years of the effective date of the new consolidation or the start of the cooperative
4.15secondary facilities program, only the pupil units in the district or districts not previously
4.16 cooperating or reorganized must be counted for aid purposes under subdivision 2. If
4.17two or more districts consolidate and all districts received aid under subdivision 2 for a
4.18consolidation taking effect within six years of the effective date of the new consolidation,
4.19only one quarter of the pupil units in the newly created district must be used to determine
4.20aid under subdivision 2.
4.21EFFECTIVE DATE.This section is effective for state aid for fiscal year 2015
4.22and later.
4.23 Sec. 4. Minnesota Statutes 2012, section 123A.64, is amended to read:
4.24123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY
4.25SCHOOLS.
4.26Each district must maintain classified elementary and secondary schools, grades 1
4.27through 12, unless the district is exempt according to section123A.61 or
123A.62 , has
4.28made an agreement with another district or districts as provided in sections123A.30 ,
4.29123A.32
, or sections
123A.35 to
123A.43 , or
123A.17, subdivision 7 , or has received a
4.30grant under sections123A.441 to
123A.446 , or has formed a cooperative under section
4.31123A.482. A district that has an agreement according to sections123A.35 to
123A.43 or
4.32123A.32
must operate a school with the number of grades required by those sections. A
4.33district that has an agreement according to section123A.30 or
123A.17, subdivision 7 , or
5.1has received a grant under sections123A.441 to
123A.446 must operate a school for the
5.2grades not included in the agreement, but not fewer than three grades.
5.3 Sec. 5. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is
5.4amended to read:
5.5 Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service
5.6revenue of a district is defined as follows:
5.7 (1) the amount needed to produce between five and six percent in excess of the
5.8amount needed to meet when due the principal and interest payments on the obligations
5.9of the district for eligible projects according to subdivision 2, including the amounts
5.10necessary for repayment of energy loans according to section216C.37 or sections
298.292
5.11to298.298 , debt service loans and capital loans, lease purchase payments under section
5.12126C.40, subdivision 2
, alternative facilities levies under section
123B.59, subdivision
5.135 , paragraph (a), minus
5.14 (2) the amount of debt service excess levy reduction for that school year calculated
5.15according to the procedure established by the commissioner.
5.16 (b) The obligations in this paragraph are excluded from eligible debt service revenue:
5.17 (1) obligations under section123B.61 ;
5.18 (2) the part of debt service principal and interest paid from the taconite environmental
5.19protection fund or Douglas J. Johnson economic protection trust, excluding both the
5.20portion of taconite payments from the school construction and improvement trust account
5.21under section 298.301, and any payments made from the Douglas J. Johnson economic
5.22protection trust fund under section 298.292, subdivision 2, clause (6);
5.23 (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
5.24amended by Laws 1992, chapter 499, article 5, section 24; and
5.25 (4) obligations under section123B.62 .
5.26 (c) For purposes of this section, if a preexisting school district reorganized under
5.27sections123A.35 to
123A.43 ,
123A.46 , and
123A.48 is solely responsible for retirement
5.28of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
5.29service equalization aid must be computed separately for each of the preexisting districts.
5.30 (d) For purposes of this section, the adjusted net tax capacity determined according
5.31to sections127A.48 and
273.1325 shall be adjusted to include the tax capacity of property
5.32generally exempted from ad valorem taxes under section272.02 , subdivision 64.
5.33 Sec. 6. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is
5.34amended to read:
6.1 Subd. 8. Taconite payment and other reductions. (1) Reductions in levies
6.2pursuant to subdivision 1 must be made prior to the reductions in clause (2).
6.3(2) Notwithstanding any other law to the contrary, districts that have revenue
6.4pursuant to sections298.018 ;
298.225 ;
298.24 to
298.28 , except an amount distributed
6.5under sections298.26 ;
298.28, subdivision 4 , paragraphs (c), clause (ii), and (d);
298.34
6.6to
298.39 ;
298.391 to
298.396 ;
298.405 ;
477A.15 ; and any law imposing a tax upon
6.7severed mineral values must reduce the levies authorized by this chapter and chapters
6.8120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
6.9previous year's revenue specified under this clause and the amount attributable to the same
6.10production year distributed to the cities and townships within the school district under
6.11section298.28, subdivision 2 , paragraph (c).
6.12(3) The amount of any voter approved referendum, facilities down payment, and
6.13debt levies shall not be reduced by more than 50 percent under this subdivision, except
6.14that payments under sections 298.301 and 298.292, subdivision 2, clause (6), may reduce
6.15the debt service levy by more than 50 percent. In administering this paragraph, the
6.16commissioner shall first reduce the nonvoter approved levies of a district; then, if any
6.17payments, severed mineral value tax revenue or recognized revenue under paragraph (2)
6.18remains, the commissioner shall reduce any voter approved referendum levies authorized
6.19under section126C.17 ; then, if any payments, severed mineral value tax revenue or
6.20recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter
6.21approved facilities down payment levies authorized under section123B.63 and then, if
6.22any payments, severed mineral value tax revenue or recognized revenue under paragraph
6.23(2) remains, the commissioner shall reduce any voter approved debt levies.
6.24(4) Before computing the reduction pursuant to this subdivision of the health and
6.25safety levy authorized by sections123B.57 and
126C.40, subdivision 5 , the commissioner
6.26shall ascertain from each affected school district the amount it proposes to levy under
6.27each section or subdivision. The reduction shall be computed on the basis of the amount
6.28so ascertained.
6.29(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
6.30limitation in paragraph (3), an amount equal to the excess must be distributed from the
6.31school district's distribution under sections298.225 ,
298.28 , and
477A.15 in the following
6.32year to the cities and townships within the school district in the proportion that their
6.33taxable net tax capacity within the school district bears to the taxable net tax capacity of
6.34the school district for property taxes payable in the year prior to distribution. No city or
6.35township shall receive a distribution greater than its levy for taxes payable in the year prior
6.36to distribution. The commissioner of revenue shall certify the distributions of cities and
7.1towns under this paragraph to the county auditor by September 30 of the year preceding
7.2distribution. The county auditor shall reduce the proposed and final levies of cities and
7.3towns receiving distributions by the amount of their distribution. Distributions to the cities
7.4and towns shall be made at the times provided under section298.27 .
7.5 Sec. 7. Minnesota Statutes 2012, section 290.01, is amended by adding a subdivision
7.6to read:
7.7 Subd. 33. Royalty. "Royalty" means the amount in money or value of property
7.8received by any person having any right, title, or interest in any tract of land in this state
7.9for permission to explore, mine, take out, and remove metals, minerals, or ore, as those
7.10terms are used in chapter 298, but excluding "aggregate material" as defined in section
7.11298.75, subdivision 1, paragraph (a), clause (1).
7.12EFFECTIVE DATE.This section is effective for taxable years beginning after
7.13December 31, 2013.
7.14 Sec. 8. Minnesota Statutes 2012, section 290.06, is amended by adding a subdivision
7.15to read:
7.16 Subd. 37. Credit; royalty excise tax. A credit is allowed against the taxes imposed
7.17by this section, equal to the amount of the royalty excise tax paid under section 290.0923
7.18for the taxable year.
7.19EFFECTIVE DATE.This section is effective for taxable years beginning after
7.20December 31, 2013.
7.21 Sec. 9. [290.0923] EXCISE TAX; MINERAL ROYALTIES.
7.22(a) In addition to the taxes otherwise imposed by this chapter, an excise tax equal
7.23to 5.5 percent of the gross amount of royalties received or accrued during the taxable
7.24year is imposed on individuals, trusts, estates, and corporations, subject to tax under
7.25section 290.06.
7.26(b) For royalties paid to a partnership, the tax is imposed on each partner in
7.27proportion to the partner's distributive share of the income under section 704 of the
7.28Internal Revenue Code. For royalties paid to an S corporation, the tax is imposed on
7.29each shareholder in proportion to the shareholder's distributive share of income of the
7.30corporation under section 1366 of the Internal Revenue Code.
7.31EFFECTIVE DATE.This section is effective for royalties received or accrued in
7.32taxable years beginning after December 31, 2013.
8.1 Sec. 10. Minnesota Statutes 2013 Supplement, section 290.10, subdivision 1, is
8.2amended to read:
8.3 Subdivision 1. Expenses, interest, and taxes. In computing the net income of
8.4a taxpayer no deduction shall in any case be allowed for expenses, interest and taxes
8.5connected with or allocable against the production or receipt of all income not included in
8.6the measure of the tax imposed by this chapter, except that for corporations engaged in the
8.7business of mining or producing iron ore, the mining of which is subject to the occupation
8.8tax imposed by section298.01, subdivision 4 , this shall not prevent the deduction of
8.9expenses and other items to the extent that the expenses and other items are allowable
8.10under this chapter and are not deductible, capitalizable, retainable in basis, or taken into
8.11account by allowance or otherwise in computing the occupation tax and do not exceed the
8.12amounts taken for federal income tax purposes for that year. Occupation taxes imposed
8.13under chapter 298, royalty taxes imposed underchapter 299 section 290.0923, or depletion
8.14expenses may not be deducted under this subdivision.
8.15EFFECTIVE DATE.This section is effective for taxable years beginning after
8.16December 31, 2013.
8.17 Sec. 11. Minnesota Statutes 2012, section 290.62, is amended to read:
8.18290.62 DISTRIBUTION OF REVENUES.
8.19(a) All revenues derived from the taxes, interest, penalties and charges under this
8.20chapter shall, notwithstanding any other provisions of law except paragraph (b), be paid
8.21into the state treasury and credited to the general fund, and be distributed as follows:
8.22(1) There shall, notwithstanding any other provision of the law, be paid from this
8.23general fund all refunds of taxes erroneously collected from taxpayers under this chapter
8.24as provided herein;
8.25(2) There is hereby appropriated to the persons entitled to payment herein, from
8.26the fund or account in the state treasury to which the money was credited, an amount
8.27sufficient to make the refund and payment.
8.28(b) Notwithstanding paragraph (a), all of the revenues derived from the taxes, interest,
8.29penalties, and charges imposed by section 290.0923, less the amount of any credits allowed
8.30under section 290.06, subdivision 37, must be deposited in and credited to the Iron Range
8.31school construction and improvement trust account established under section 298.301.
8.32EFFECTIVE DATE.This section is effective the day following final enactment.
9.1 Sec. 12. Minnesota Statutes 2012, section 290.923, is amended by adding a subdivision
9.2to read:
9.3 Subd. 12. Royalty excise tax. The provisions of this section apply to each person
9.4paying royalties subject to taxation under section 290.0923 to require deducting and
9.5withholding the tax under that section from the royalty payments. The commissioner shall
9.6provide appropriate tables and forms for the withholding so that the amounts withheld
9.7approximate the tax as closely as possible, reflecting the liability that applies under section
9.8290.0923, less the amount of any credits allowed under section 290.06, subdivision 37.
9.9The provisions of subdivision 9 apply only to the extent that the payee is an entity exempt
9.10under section 290.05.
9.11EFFECTIVE DATE.This section is effective July 1, 2014.
9.12 Sec. 13. Minnesota Statutes 2012, section 298.28, is amended by adding a subdivision
9.13to read:
9.14 Subd. 9e. School construction and improvement trust account. (a) The following
9.15amounts must be allocated to the Iron Range Resources and Rehabilitation Board to be
9.16deposited in the Iron Range school construction and improvement trust account under
9.17section 298.301:
9.18(1) the amount derived from the increase in the rate attributable to the percentage
9.19change in the implicit price deflator in section 298.24, subdivision 1, paragraph (b), for
9.20concentrates produced in 2014 as compared to 2013, effective for the 2015 distribution,
9.21and the amount derived from the increase in the rate attributable to the percentage change
9.22in the implicit price deflator for concentrates produced in 2013 as compared to 2015,
9.23effective for the 2016 distribution and thereafter;
9.24(2) $2,500,000 per year beginning with the 2015 distribution; and
9.25(3) the amounts under paragraph (b).
9.26(b) In each year subsequent to the year in which the following appropriations
9.27terminate under their terms, an amount equal to the amount of the last year of the
9.28terminating appropriation is appropriated from the same sources for use as provided
9.29under paragraph (a), clause (3), to the Iron Range school construction and improvement
9.30trust account:
9.31(1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for
9.32bonds of Independent School District No. 166, Cook County;
9.33(2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
9.34bonds of Independent School District No. 696, Ely;
10.1(3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
10.2bonds of Independent School District No. 706, Virginia:
10.3(4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
10.4bonds of Independent School District No. 2154, Eveleth-Gilbert;
10.5(5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for
10.6bonds of Independent School District No. 712, Mountain Iron-Buhl; and
10.7(6) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of
10.8Independent School District No. 2711, Mesabi East.
10.9EFFECTIVE DATE.This section is effective beginning with the distribution
10.10in 2015.
10.11 Sec. 14. Minnesota Statutes 2012, section 298.28, subdivision 11, is amended to read:
10.12 Subd. 11. Remainder. (a) The proceeds of the tax imposed by section298.24 which
10.13remain after the distributions and payments in subdivisions 2 to 10a, as certified by the
10.14commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with
10.15interest earned on all money distributed under this section prior to distribution, shall be
10.16divided between the taconite environmental protection fund created in section298.223
10.17and the Douglas J. Johnson economic protection trust fund created in section298.292 as
10.18follows: Two-thirds to the taconite environmental protection fund; $2,500,000 to the Iron
10.19Range school construction and improvement trust account; andone-third the remainder to
10.20the Douglas J. Johnson economic protection trust fund. The proceeds shall be placed in
10.21the respective special accounts.
10.22(b) There shall be distributed to each city, town, and county the amount that it
10.23received under section294.26 in calendar year 1977; provided, however, that the amount
10.24distributed in 1981 to the unorganized territory number 2 of Lake County and the town
10.25of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be
10.26distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake
10.27County and the towns of Beaver Bay and Stony River based on the miles of track of Erie
10.28Mining Company in each taxing district.
10.29(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board
10.30the amounts it received in 1977 under section298.22 . The amount distributed under
10.31this paragraph shall be expended within or for the benefit of the taconite assistance area
10.32defined in section273.1341 .
10.33(d) There shall be distributed to each school district 62 percent of the amount that it
10.34received under section294.26 in calendar year 1977.
11.1EFFECTIVE DATE.This section is effective beginning with the distribution
11.2in 2015.
11.3 Sec. 15. Minnesota Statutes 2013 Supplement, section 298.292, subdivision 2, is
11.4amended to read:
11.5 Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
11.6fund may be used for the following purposes:
11.7 (1) to provide loans, loan guarantees, interest buy-downs and other forms of
11.8participation with private sources of financing, but a loan to a private enterprise shall be
11.9for a principal amount not to exceed one-half of the cost of the project for which financing
11.10is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
11.11lesser of eight percent or an interest rate three percentage points less than a full faith
11.12and credit obligation of the United States government of comparable maturity, at the
11.13time that the loan is approved;
11.14 (2) to fund reserve accounts established to secure the payment when due of the
11.15principal of and interest on bonds issued pursuant to section298.2211 ;
11.16 (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
11.17on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
11.18or retrofitting heating facilities in connection with district heating systems or systems
11.19utilizing alternative energy sources;
11.20 (4) to invest in a venture capital fund or enterprise that will provide capital to other
11.21entities that are engaging in, or that will engage in, projects or programs that have the
11.22purposes set forth in subdivision 1. No investments may be made in a venture capital fund
11.23or enterprise unless at least two other unrelated investors make investments of at least
11.24$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
11.25J. Johnson economic protection trust fund may not exceed the amount of the largest
11.26investment by an unrelated investor in the venture capital fund or enterprise. For purposes
11.27of this subdivision, an "unrelated investor" is a person or entity that is not related to
11.28the entity in which the investment is made or to any individual who owns more than 40
11.29percent of the value of the entity, in any of the following relationships: spouse, parent,
11.30child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
11.31the value of all interests in it. For purposes of determining the limitations under this
11.32clause, the amount of investments made by an investor other than the Douglas J. Johnson
11.33economic protection trust fund is the sum of all investments made in the venture capital
11.34fund or enterprise during the period beginning one year before the date of the investment
11.35by the Douglas J. Johnson economic protection trust fund;and
12.1 (5) to purchase forest land in the taconite assistance area defined in section273.1341
12.2to be held and managed as a public trust for the benefit of the area for the purposes
12.3authorized in section298.22, subdivision 5a . Property purchased under this section may
12.4be sold by the commissioner upon approval by the board. The net proceeds must be
12.5deposited in the trust fund for the purposes and uses of this section.; and
12.6(6) to make payments to school districts or to pay bonds under appropriations of
12.7or allocations money from the Iron Range school construction and improvement trust
12.8account under section 298.301 if the amounts in that account are insufficient to pay the
12.9appropriations or allocations. Notwithstanding the restrictions in sections 298.293 and
12.10298.296, subdivision 2, or any other law to the contrary, the corpus of the fund may be
12.11used to make payments under this clause.
12.12 Money from the trust fund shall be expended only in or for the benefit of the taconite
12.13assistance area defined in section273.1341 .
12.14EFFECTIVE DATE.This section is effective the day following final enactment.
12.15 Sec. 16. [298.301] IRON RANGE SCHOOL CONSTRUCTION AND
12.16IMPROVEMENT TRUST ACCOUNT.
12.17 Subdivision 1. Account established. The Iron Range school construction and
12.18improvement trust account is established to receive amounts deposited under sections
12.19290.62, paragraph (b), and 298.28, subdivision 9e. Amounts in the account must be used
12.20to finance school buildings, technology improvements, and other major construction and
12.21improvements for school districts located in the taconite tax relief area.
12.22 Subd. 2. Distributions. (a) Each year, beginning in calendar year 2015, the
12.23following amounts are distributed from the account established in subdivision 1 for
12.24reduction of the district's net debt service levy:
12.25(1) for Independent School District No. 2711, Mesabi East, $600,000 applied to debt
12.26service amounts currently incurred or future amounts for a period not to exceed ten years;
12.27(2) for Independent School District No. 2142, St. Louis County, $1,500,000 for a
12.28period not to exceed 15 years; and
12.29(3) for Independent School District No. 706, Virginia, $5,500,000 for a period
12.30not to exceed 20 years.
12.31 (b) The amounts in paragraph (a), clause (3), may be reallocated to the remaining
12.32districts approving bond issues if the voters of Independent School District No. 706,
12.33Virginia, fail to approve a bond election for a cooperative high school, according to the
12.34terms of the joint powers agreement entered into under section 123A.482.
13.1 Subd. 3. Payment adjustment. The commissioner of the Iron Range Resources
13.2and Rehabilitation Board, with the approval of the board, may adjust the payments to a
13.3district specified in subdivision 2 if the recipient district presents to the commissioner an
13.4initial bond repayment schedule or a revised bond replacement schedule that necessitates a
13.5different payment amount.
13.6 Subd. 4. Additional projects. To the extent that funds remain in the account after
13.7distribution under subdivision 2, the commissioner of the Iron Range Resources and
13.8Rehabilitation Board may enter into agreements with other districts eligible for revenue
13.9under section 298.28, subdivision 4, that have formed a joint powers cooperative under
13.10section 123A.482.
13.11EFFECTIVE DATE.This section is effective the day following final enactment.
13.12 Sec. 17. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
13.13 Subd. 5. Consolidation transition. For districts consolidating under Minnesota
13.14Statutes, section123A.485 :
13.18The 2014 appropriation includes $40,000 for 2013 and $432,000 for 2014.
13.19The 2015 appropriation includes $68,000 for 2014 and$412,000 $....... for 2015.
13.20 Sec. 18. STATE BOND AUTHORIZATION.
13.21 Subdivision 1. Appropriation. $....... is appropriated from the bond proceeds
13.22fund to the commissioner of education for cooperative facilities grants under Minnesota
13.23Statutes, sections 123A.441 to 123A.446.
13.24 Subd. 2. Bond proceeds fund. To provide the money appropriated in subdivision
13.251 from the bond proceeds fund, the commissioner of management and budget shall sell
13.26and issue bonds of the state in an amount up to $....... in the manner, upon the terms, and
13.27with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
13.28Minnesota Constitution, article XI, sections 4 to 7.
13.29 Sec. 19. REPEALER.
13.30Minnesota Statutes 2012, section 290.923, subdivision 1, is repealed.
1.3authorized secondary programs; expanding cooperation aid; imposing an excise
1.4tax on royalties; allowing an income and corporate franchise tax credit; increasing
1.5the taconite production tax rate; modifying the distribution of production taxes;
1.6providing security for payment of certain school bonds; authorizing uses of the
1.7Douglas J. Johnson economic protection trust fund; establishing a trust account
1.8to finance school facilities on the Iron Range; authorizing the sale and issuance of
1.9state bonds; appropriating money;amending Minnesota Statutes 2012, sections
1.10123A.442, by adding a subdivision; 123A.485; 123A.64; 290.01, by adding a
1.11subdivision; 290.06, by adding a subdivision; 290.62; 290.923, by adding a
1.12subdivision; 298.28, subdivision 11, by adding a subdivision; Minnesota Statutes
1.132013 Supplement, sections 123B.53, subdivision 1; 126C.48, subdivision 8;
1.14290.10, subdivision 1; 298.292, subdivision 2; Laws 2013, chapter 116, article 1,
1.15section 58, subdivision 5; proposing coding for new law in Minnesota Statutes,
1.16chapters 123A; 290; 298; repealing Minnesota Statutes 2012, section 290.923,
1.17subdivision 1.
1.18BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.19 Section 1. Minnesota Statutes 2012, section 123A.442, is amended by adding a
1.20subdivision to read:
1.21 Subd. 4. Cooperatively operated secondary facilities. A school district or
1.22cooperative entity operating a cooperative secondary program that has been approved by
1.23the commissioner under section 123A.482 is eligible for a cooperative facilities grant.
1.24EFFECTIVE DATE.This section is effective the day following final enactment.
1.25 Sec. 2. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
1.26 Subdivision 1. Schools may be jointly operated. Two or more school districts may
1.27agree to jointly operate a secondary facility. The districts may choose to operate the
1.28facility according to a joint powers agreement under section 123A.78 or 471.59.
2.1 Subd. 2. Expanded program offerings. A jointly operated secondary program
2.2seeking funding under section 123A.485 must demonstrate to the commissioner's
2.3satisfaction that the jointly operated program provides enhanced learning opportunities and
2.4broader curriculum offerings to the students attending that program. The commissioner
2.5must approve or disapprove a cooperative secondary program within 60 days of receipt of
2.6an application.
2.7 Subd. 3. Revenue. An approved program that is jointly operated under this section
2.8is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections
2.9123A.44 to 123A.446.
2.10 Subd. 4. Duty to maintain elementary and secondary schools met. A school
2.11district operating a joint facility under this section meets the requirements of section
2.12123A.64.
2.13 Subd. 5. Estimated market value limit exclusion. Bonds for a cooperative facility
2.14operated under this section issued by a member school district are not subject to the net
2.15debt limit under section 475.53, subdivision 4.
2.16 Subd. 6. Allocation of levy authority for joint facility. For purposes of determining
2.17each member district's school levy, a jointly operated secondary program may allocate
2.18program costs to each member district according to the joint powers agreement and each
2.19member district may include those costs in its tax levy. The joint powers agreement may
2.20choose to allocate costs on any basis adopted as part of the joint powers agreement.
2.21 Subd. 7. Effect of consolidation. The joint powers agreement may allow member
2.22school districts that choose to consolidate to continue to certify levies separately based on
2.23each component district's characteristics.
2.24 Subd. 8. Bonds. A joint powers district formed under this section may issue bonds
2.25according to section 123A.78 or its member districts may issue bonds individually after
2.26complying with this subdivision. The joint powers board must submit the project for
2.27review and comment under section 123B.71. The joint powers board must hold a hearing
2.28on the proposal. If the bonds are not issued under section 123A.78, each member district
2.29of the joint powers district must submit the question of authorizing borrowing of funds for
2.30the project to the voters of the district at a special election. The question submitted shall
2.31state the total amount of funding needed from that district. The member district may issue
2.32the bonds according to chapter 475 and certify the levy required by section 475.61 only if
2.33a majority of those voting on the question in that district vote in the affirmative and only
2.34after the board has adopted a resolution pledging the full faith and credit of that unit. The
2.35resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy
2.36shortages that, together with other funds available, would allow the member school board
3.1to pay the principal and interest on the obligations. The clerk of the joint powers board
3.2must certify the vote of any bond elections to the commissioner.
3.3 Subd. 9. Election. A district entering into a joint powers agreement under this
3.4section may conduct a referendum seeking approval for a new facility. This election may
3.5be held separately or at the same time as a bond election under subdivision 8. If the
3.6election is held at the same time, the questions may be asked separately or as a conjunctive
3.7question. The question must be approved by a majority of those voting on the question.
3.8If asked separately and the question fails, a district may not proceed with the sale of
3.9bonds according to subdivision 8.
3.10EFFECTIVE DATE.This section is effective the day following final enactment.
3.11 Sec. 3. Minnesota Statutes 2012, section 123A.485, is amended to read:
3.12123A.485 CONSOLIDATION TRANSITION
3.13 Subdivision 1. Eligibility and use. A district that operates a cooperative facility
3.14under section 123A.482 or that has been reorganized after June 30, 1994, under section
3.16 aid
3.17 aid may only be used according to this section. Revenue must be used for the following
3.18purposes and may be distributed among these purposes at the discretion of the district or
3.19the governing board of the cooperative facility:
3.20(1) to offer early retirement incentives as provided by section
3.2123
3.22(2) to reduce operating debt as defined in section
3.23(3) to enhance learning opportunities for students in the reorganized district;
3.24(4) to repay building debt; or
3.25(5) for other costs incurred in the reorganization.
3.26Revenue received and utilized under clause (3) or
3.27operating, facilities, and/or equipment.
3.28 Subd. 2. Aid.
3.29number of
3.30section 123A.482 or the consolidated district
3.31
3.32 under section 123A.48.
3.33
4.1
4.2not more than five years except as provided in subdivision 4.
4.3
4.4
4.5
4.6
4.7
4.8 Subd. 3. Levy. If the aid available in subdivision 2 is insufficient to cover the costs
4.9of the district under section
4.10over a period of time not to exceed three years.
4.11 Subd. 4. New districts. If a district enters into a cooperative secondary facilities
4.12program or consolidates with another district that has received aid under section
4.13subdivision 3
4.14six years of the effective date of the new consolidation or the start of the cooperative
4.15secondary facilities program, only the pupil units in the district or districts not previously
4.16 cooperating or reorganized must be counted for aid purposes under subdivision 2. If
4.17two or more districts consolidate and all districts received aid under subdivision 2 for a
4.18consolidation taking effect within six years of the effective date of the new consolidation,
4.19only one quarter of the pupil units in the newly created district must be used to determine
4.20aid under subdivision 2.
4.21EFFECTIVE DATE.This section is effective for state aid for fiscal year 2015
4.22and later.
4.23 Sec. 4. Minnesota Statutes 2012, section 123A.64, is amended to read:
4.24123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY
4.25SCHOOLS.
4.26Each district must maintain classified elementary and secondary schools, grades 1
4.27through 12, unless the district is exempt according to section
4.28made an agreement with another district or districts as provided in sections
4.30grant under sections
4.31123A.482. A district that has an agreement according to sections
4.33district that has an agreement according to section
5.1has received a grant under sections
5.2grades not included in the agreement, but not fewer than three grades.
5.3 Sec. 5. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is
5.4amended to read:
5.5 Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service
5.6revenue of a district is defined as follows:
5.7 (1) the amount needed to produce between five and six percent in excess of the
5.8amount needed to meet when due the principal and interest payments on the obligations
5.9of the district for eligible projects according to subdivision 2, including the amounts
5.10necessary for repayment of energy loans according to section
5.11to
5.135
5.14 (2) the amount of debt service excess levy reduction for that school year calculated
5.15according to the procedure established by the commissioner.
5.16 (b) The obligations in this paragraph are excluded from eligible debt service revenue:
5.17 (1) obligations under section
5.18 (2) the part of debt service principal and interest paid from the taconite environmental
5.19protection fund or Douglas J. Johnson economic protection trust, excluding both the
5.20portion of taconite payments from the school construction and improvement trust account
5.21under section 298.301, and any payments made from the Douglas J. Johnson economic
5.22protection trust fund under section 298.292, subdivision 2, clause (6);
5.23 (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
5.24amended by Laws 1992, chapter 499, article 5, section 24; and
5.25 (4) obligations under section
5.26 (c) For purposes of this section, if a preexisting school district reorganized under
5.27sections
5.28of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
5.29service equalization aid must be computed separately for each of the preexisting districts.
5.30 (d) For purposes of this section, the adjusted net tax capacity determined according
5.31to sections
5.32generally exempted from ad valorem taxes under section
5.33 Sec. 6. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is
5.34amended to read:
6.1 Subd. 8. Taconite payment and other reductions. (1) Reductions in levies
6.2pursuant to subdivision 1 must be made prior to the reductions in clause (2).
6.3(2) Notwithstanding any other law to the contrary, districts that have revenue
6.4pursuant to sections
6.5under sections
6.7severed mineral values must reduce the levies authorized by this chapter and chapters
6.8120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
6.9previous year's revenue specified under this clause and the amount attributable to the same
6.10production year distributed to the cities and townships within the school district under
6.11section
6.12(3) The amount of any voter approved referendum, facilities down payment, and
6.13debt levies shall not be reduced by more than 50 percent under this subdivision, except
6.14that payments under sections 298.301 and 298.292, subdivision 2, clause (6), may reduce
6.15the debt service levy by more than 50 percent. In administering this paragraph, the
6.16commissioner shall first reduce the nonvoter approved levies of a district; then, if any
6.17payments, severed mineral value tax revenue or recognized revenue under paragraph (2)
6.18remains, the commissioner shall reduce any voter approved referendum levies authorized
6.19under section
6.20recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter
6.21approved facilities down payment levies authorized under section
6.22any payments, severed mineral value tax revenue or recognized revenue under paragraph
6.23(2) remains, the commissioner shall reduce any voter approved debt levies.
6.24(4) Before computing the reduction pursuant to this subdivision of the health and
6.25safety levy authorized by sections
6.26shall ascertain from each affected school district the amount it proposes to levy under
6.27each section or subdivision. The reduction shall be computed on the basis of the amount
6.28so ascertained.
6.29(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
6.30limitation in paragraph (3), an amount equal to the excess must be distributed from the
6.31school district's distribution under sections
6.32year to the cities and townships within the school district in the proportion that their
6.33taxable net tax capacity within the school district bears to the taxable net tax capacity of
6.34the school district for property taxes payable in the year prior to distribution. No city or
6.35township shall receive a distribution greater than its levy for taxes payable in the year prior
6.36to distribution. The commissioner of revenue shall certify the distributions of cities and
7.1towns under this paragraph to the county auditor by September 30 of the year preceding
7.2distribution. The county auditor shall reduce the proposed and final levies of cities and
7.3towns receiving distributions by the amount of their distribution. Distributions to the cities
7.4and towns shall be made at the times provided under section
7.5 Sec. 7. Minnesota Statutes 2012, section 290.01, is amended by adding a subdivision
7.6to read:
7.7 Subd. 33. Royalty. "Royalty" means the amount in money or value of property
7.8received by any person having any right, title, or interest in any tract of land in this state
7.9for permission to explore, mine, take out, and remove metals, minerals, or ore, as those
7.10terms are used in chapter 298, but excluding "aggregate material" as defined in section
7.11298.75, subdivision 1, paragraph (a), clause (1).
7.12EFFECTIVE DATE.This section is effective for taxable years beginning after
7.13December 31, 2013.
7.14 Sec. 8. Minnesota Statutes 2012, section 290.06, is amended by adding a subdivision
7.15to read:
7.16 Subd. 37. Credit; royalty excise tax. A credit is allowed against the taxes imposed
7.17by this section, equal to the amount of the royalty excise tax paid under section 290.0923
7.18for the taxable year.
7.19EFFECTIVE DATE.This section is effective for taxable years beginning after
7.20December 31, 2013.
7.21 Sec. 9. [290.0923] EXCISE TAX; MINERAL ROYALTIES.
7.22(a) In addition to the taxes otherwise imposed by this chapter, an excise tax equal
7.23to 5.5 percent of the gross amount of royalties received or accrued during the taxable
7.24year is imposed on individuals, trusts, estates, and corporations, subject to tax under
7.25section 290.06.
7.26(b) For royalties paid to a partnership, the tax is imposed on each partner in
7.27proportion to the partner's distributive share of the income under section 704 of the
7.28Internal Revenue Code. For royalties paid to an S corporation, the tax is imposed on
7.29each shareholder in proportion to the shareholder's distributive share of income of the
7.30corporation under section 1366 of the Internal Revenue Code.
7.31EFFECTIVE DATE.This section is effective for royalties received or accrued in
7.32taxable years beginning after December 31, 2013.
8.1 Sec. 10. Minnesota Statutes 2013 Supplement, section 290.10, subdivision 1, is
8.2amended to read:
8.3 Subdivision 1. Expenses, interest, and taxes. In computing the net income of
8.4a taxpayer no deduction shall in any case be allowed for expenses, interest and taxes
8.5connected with or allocable against the production or receipt of all income not included in
8.6the measure of the tax imposed by this chapter, except that for corporations engaged in the
8.7business of mining or producing iron ore, the mining of which is subject to the occupation
8.8tax imposed by section
8.9expenses and other items to the extent that the expenses and other items are allowable
8.10under this chapter and are not deductible, capitalizable, retainable in basis, or taken into
8.11account by allowance or otherwise in computing the occupation tax and do not exceed the
8.12amounts taken for federal income tax purposes for that year. Occupation taxes imposed
8.13under chapter 298, royalty taxes imposed under
8.14expenses may not be deducted under this subdivision.
8.15EFFECTIVE DATE.This section is effective for taxable years beginning after
8.16December 31, 2013.
8.17 Sec. 11. Minnesota Statutes 2012, section 290.62, is amended to read:
8.18290.62 DISTRIBUTION OF REVENUES.
8.19(a) All revenues derived from the taxes, interest, penalties and charges under this
8.20chapter shall, notwithstanding any other provisions of law except paragraph (b), be paid
8.21into the state treasury and credited to the general fund, and be distributed as follows:
8.22(1) There shall, notwithstanding any other provision of the law, be paid from this
8.23general fund all refunds of taxes erroneously collected from taxpayers under this chapter
8.24as provided herein;
8.25(2) There is hereby appropriated to the persons entitled to payment herein, from
8.26the fund or account in the state treasury to which the money was credited, an amount
8.27sufficient to make the refund and payment.
8.28(b) Notwithstanding paragraph (a), all of the revenues derived from the taxes, interest,
8.29penalties, and charges imposed by section 290.0923, less the amount of any credits allowed
8.30under section 290.06, subdivision 37, must be deposited in and credited to the Iron Range
8.31school construction and improvement trust account established under section 298.301.
8.32EFFECTIVE DATE.This section is effective the day following final enactment.
9.1 Sec. 12. Minnesota Statutes 2012, section 290.923, is amended by adding a subdivision
9.2to read:
9.3 Subd. 12. Royalty excise tax. The provisions of this section apply to each person
9.4paying royalties subject to taxation under section 290.0923 to require deducting and
9.5withholding the tax under that section from the royalty payments. The commissioner shall
9.6provide appropriate tables and forms for the withholding so that the amounts withheld
9.7approximate the tax as closely as possible, reflecting the liability that applies under section
9.8290.0923, less the amount of any credits allowed under section 290.06, subdivision 37.
9.9The provisions of subdivision 9 apply only to the extent that the payee is an entity exempt
9.10under section 290.05.
9.11EFFECTIVE DATE.This section is effective July 1, 2014.
9.12 Sec. 13. Minnesota Statutes 2012, section 298.28, is amended by adding a subdivision
9.13to read:
9.14 Subd. 9e. School construction and improvement trust account. (a) The following
9.15amounts must be allocated to the Iron Range Resources and Rehabilitation Board to be
9.16deposited in the Iron Range school construction and improvement trust account under
9.17section 298.301:
9.18(1) the amount derived from the increase in the rate attributable to the percentage
9.19change in the implicit price deflator in section 298.24, subdivision 1, paragraph (b), for
9.20concentrates produced in 2014 as compared to 2013, effective for the 2015 distribution,
9.21and the amount derived from the increase in the rate attributable to the percentage change
9.22in the implicit price deflator for concentrates produced in 2013 as compared to 2015,
9.23effective for the 2016 distribution and thereafter;
9.24(2) $2,500,000 per year beginning with the 2015 distribution; and
9.25(3) the amounts under paragraph (b).
9.26(b) In each year subsequent to the year in which the following appropriations
9.27terminate under their terms, an amount equal to the amount of the last year of the
9.28terminating appropriation is appropriated from the same sources for use as provided
9.29under paragraph (a), clause (3), to the Iron Range school construction and improvement
9.30trust account:
9.31(1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for
9.32bonds of Independent School District No. 166, Cook County;
9.33(2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
9.34bonds of Independent School District No. 696, Ely;
10.1(3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
10.2bonds of Independent School District No. 706, Virginia:
10.3(4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for
10.4bonds of Independent School District No. 2154, Eveleth-Gilbert;
10.5(5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for
10.6bonds of Independent School District No. 712, Mountain Iron-Buhl; and
10.7(6) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of
10.8Independent School District No. 2711, Mesabi East.
10.9EFFECTIVE DATE.This section is effective beginning with the distribution
10.10in 2015.
10.11 Sec. 14. Minnesota Statutes 2012, section 298.28, subdivision 11, is amended to read:
10.12 Subd. 11. Remainder. (a) The proceeds of the tax imposed by section
10.13remain after the distributions and payments in subdivisions 2 to 10a, as certified by the
10.14commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with
10.15interest earned on all money distributed under this section prior to distribution, shall be
10.16divided between the taconite environmental protection fund created in section
10.17and the Douglas J. Johnson economic protection trust fund created in section
10.18follows: Two-thirds to the taconite environmental protection fund; $2,500,000 to the Iron
10.19Range school construction and improvement trust account; and
10.20the Douglas J. Johnson economic protection trust fund. The proceeds shall be placed in
10.21the respective special accounts.
10.22(b) There shall be distributed to each city, town, and county the amount that it
10.23received under section
10.24distributed in 1981 to the unorganized territory number 2 of Lake County and the town
10.25of Beaver Bay based on the between-terminal trackage of Erie Mining Company will be
10.26distributed in 1982 and subsequent years to the unorganized territory number 2 of Lake
10.27County and the towns of Beaver Bay and Stony River based on the miles of track of Erie
10.28Mining Company in each taxing district.
10.29(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board
10.30the amounts it received in 1977 under section
10.31this paragraph shall be expended within or for the benefit of the taconite assistance area
10.32defined in section
10.33(d) There shall be distributed to each school district 62 percent of the amount that it
10.34received under section
11.1EFFECTIVE DATE.This section is effective beginning with the distribution
11.2in 2015.
11.3 Sec. 15. Minnesota Statutes 2013 Supplement, section 298.292, subdivision 2, is
11.4amended to read:
11.5 Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
11.6fund may be used for the following purposes:
11.7 (1) to provide loans, loan guarantees, interest buy-downs and other forms of
11.8participation with private sources of financing, but a loan to a private enterprise shall be
11.9for a principal amount not to exceed one-half of the cost of the project for which financing
11.10is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
11.11lesser of eight percent or an interest rate three percentage points less than a full faith
11.12and credit obligation of the United States government of comparable maturity, at the
11.13time that the loan is approved;
11.14 (2) to fund reserve accounts established to secure the payment when due of the
11.15principal of and interest on bonds issued pursuant to section
11.16 (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
11.17on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
11.18or retrofitting heating facilities in connection with district heating systems or systems
11.19utilizing alternative energy sources;
11.20 (4) to invest in a venture capital fund or enterprise that will provide capital to other
11.21entities that are engaging in, or that will engage in, projects or programs that have the
11.22purposes set forth in subdivision 1. No investments may be made in a venture capital fund
11.23or enterprise unless at least two other unrelated investors make investments of at least
11.24$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
11.25J. Johnson economic protection trust fund may not exceed the amount of the largest
11.26investment by an unrelated investor in the venture capital fund or enterprise. For purposes
11.27of this subdivision, an "unrelated investor" is a person or entity that is not related to
11.28the entity in which the investment is made or to any individual who owns more than 40
11.29percent of the value of the entity, in any of the following relationships: spouse, parent,
11.30child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
11.31the value of all interests in it. For purposes of determining the limitations under this
11.32clause, the amount of investments made by an investor other than the Douglas J. Johnson
11.33economic protection trust fund is the sum of all investments made in the venture capital
11.34fund or enterprise during the period beginning one year before the date of the investment
11.35by the Douglas J. Johnson economic protection trust fund;
12.1 (5) to purchase forest land in the taconite assistance area defined in section
12.3authorized in section
12.4be sold by the commissioner upon approval by the board. The net proceeds must be
12.5deposited in the trust fund for the purposes and uses of this section
12.6(6) to make payments to school districts or to pay bonds under appropriations of
12.7or allocations money from the Iron Range school construction and improvement trust
12.8account under section 298.301 if the amounts in that account are insufficient to pay the
12.9appropriations or allocations. Notwithstanding the restrictions in sections 298.293 and
12.10298.296, subdivision 2, or any other law to the contrary, the corpus of the fund may be
12.11used to make payments under this clause.
12.12 Money from the trust fund shall be expended only in or for the benefit of the taconite
12.13assistance area defined in section
12.14EFFECTIVE DATE.This section is effective the day following final enactment.
12.15 Sec. 16. [298.301] IRON RANGE SCHOOL CONSTRUCTION AND
12.16IMPROVEMENT TRUST ACCOUNT.
12.17 Subdivision 1. Account established. The Iron Range school construction and
12.18improvement trust account is established to receive amounts deposited under sections
12.19290.62, paragraph (b), and 298.28, subdivision 9e. Amounts in the account must be used
12.20to finance school buildings, technology improvements, and other major construction and
12.21improvements for school districts located in the taconite tax relief area.
12.22 Subd. 2. Distributions. (a) Each year, beginning in calendar year 2015, the
12.23following amounts are distributed from the account established in subdivision 1 for
12.24reduction of the district's net debt service levy:
12.25(1) for Independent School District No. 2711, Mesabi East, $600,000 applied to debt
12.26service amounts currently incurred or future amounts for a period not to exceed ten years;
12.27(2) for Independent School District No. 2142, St. Louis County, $1,500,000 for a
12.28period not to exceed 15 years; and
12.29(3) for Independent School District No. 706, Virginia, $5,500,000 for a period
12.30not to exceed 20 years.
12.31 (b) The amounts in paragraph (a), clause (3), may be reallocated to the remaining
12.32districts approving bond issues if the voters of Independent School District No. 706,
12.33Virginia, fail to approve a bond election for a cooperative high school, according to the
12.34terms of the joint powers agreement entered into under section 123A.482.
13.1 Subd. 3. Payment adjustment. The commissioner of the Iron Range Resources
13.2and Rehabilitation Board, with the approval of the board, may adjust the payments to a
13.3district specified in subdivision 2 if the recipient district presents to the commissioner an
13.4initial bond repayment schedule or a revised bond replacement schedule that necessitates a
13.5different payment amount.
13.6 Subd. 4. Additional projects. To the extent that funds remain in the account after
13.7distribution under subdivision 2, the commissioner of the Iron Range Resources and
13.8Rehabilitation Board may enter into agreements with other districts eligible for revenue
13.9under section 298.28, subdivision 4, that have formed a joint powers cooperative under
13.10section 123A.482.
13.11EFFECTIVE DATE.This section is effective the day following final enactment.
13.12 Sec. 17. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
13.13 Subd. 5. Consolidation transition. For districts consolidating under Minnesota
13.14Statutes, section
| 13.15 |
$ |
472,000 |
..... |
2014 |
|
| 13.16 13.17 |
$ |
....... |
..... |
2015 |
13.19The 2015 appropriation includes $68,000 for 2014 and
13.20 Sec. 18. STATE BOND AUTHORIZATION.
13.21 Subdivision 1. Appropriation. $....... is appropriated from the bond proceeds
13.22fund to the commissioner of education for cooperative facilities grants under Minnesota
13.23Statutes, sections 123A.441 to 123A.446.
13.24 Subd. 2. Bond proceeds fund. To provide the money appropriated in subdivision
13.251 from the bond proceeds fund, the commissioner of management and budget shall sell
13.26and issue bonds of the state in an amount up to $....... in the manner, upon the terms, and
13.27with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
13.28Minnesota Constitution, article XI, sections 4 to 7.
13.29 Sec. 19. REPEALER.
13.30Minnesota Statutes 2012, section 290.923, subdivision 1, is repealed.
