IRRRB overhaul bill clears Minnesota House panel

A Minnesota House panel advanced legislation Wednesday to overhaul the Iron Range Resources and Rehabilitation Board.

The action follows a highly critical report from the Office of the Legislative Auditor on the regional economic development agency. The auditor's review highlighted several shortcomings in IRRRB operations and record keeping, including its loans to businesses.

The bill abolishes the current board and creates a new commission made of six state lawmakers and three public members. The agency’s spending decisions would need legislative approval.

Rep. Tom Hackbarth, R-Cedar, told members of the House Governmental Operations and Elections Committee that his bill would bring needed oversight to the agency’s job-creating efforts.

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“This bill is not meant to be adversarial at all,” Hackbarth said. “I believe that the citizens on the Iron Range deserve better. They should know where this money is going and the amount of jobs that the IRRRB is creating.”

Iron Range legislators spoke against the bill. They say the IRRRB, which is funded through a taconite production tax, is already making improvements.

Rep. Tom Anzelc, DFL-Balsam Township, said the bill is “unfriendly” to entrepreneurs and businesses that are seeking IRRRB loans and grants .

Rep. Rob Ecklund, DFL-International Falls, said the locally-generated tax revenue should not be subjected to legislative approval.

“No other region in the state is facing this type of scrutiny or legislative oversight,” Ecklund said. “We will fix the areas addressed in the OLA report, but this bill, in my opinion, is not the way to address it.”

The committee approved the bill by a vote of 10-5.

The bill does not have a Senate companion.