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Legislative News and Views - Rep. Tom Hackbarth (R)

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Legislative update

Thursday, April 14, 2016
 

Dear Neighbor,

Legislation I introduced in the House this week aims to bring more transparency, accountability and responsibility to the Iron Range Resources Rehabilitation Board's economic development grant/loan process.

This legislation is in response to a report released by the Minnesota Office of the Legislative Auditor last month which raised serious questions regarding the management and effectiveness of the IRRRB's economic development subsidies.

The IRRRB distributes millions of dollars in grants and loans each year in the name of economic development for northeastern Minnesota. There has been zero follow-up to determine whether grants or loans are achieving the intended results. What we do know is the IRRRB has provided subsidies year after year to enterprises that have gone out of business or simply vacated the region.

My bill establishes an oversight commission for the IRRRB's economic development. This model is in line with the OLA's recommendation to fashion a panel similar to the one currently providing oversight for the Legislative-Citizen Commission on Minnesota Resources.

One thing I want to make very clear is my bill does not address the funding schools and local governments receive from IRRRB. My bill is specific to funding the IRRRB provides businesses in the name of economic development.

The proposal is to establish a nine-member commission comprised of six legislators without regional distinction and three at-large citizens from the Iron Range. This board would review grant proposals and make decisions accordingly. The panel also would conduct follow-up reports to determine whether progress is being made toward stated goals. Consequences – such as returning the funding – could be levied in certain situations.

Taxpayers, especially citizens on the Iron Range, should support this bill. Increased oversight on this issue would promote better economic development in the region instead of just watching our tax dollars go down the drain.

In other news from the Capitol, the House passed bills this week to legalize aerial and audible fireworks. This Fireworks Freedom Act is different from previous fireworks legislation previously vetoed by Governor Dayton in that it would allow fireworks to be sold and used from June 1 to July 10 each year. Also, local governments would have control over charging licensing fees or could altogether prohibit them from being sold.

The House also passed a bill to affirm the legality of fantasy sports games. There is no formal language pertaining to fantasy sports in state statute and this bill is an attempt to make sure these games can continue. Some consumer protections also are included so Minnesotans have confidence in the games they choose to participate in.

Sincerely,

Tom

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