Senate version of IRRRB bill gets initial look

Proposed revisions to how the Iron Range Resources and Rehabilitation Board makes grant and spending decisions received initial consideration Tuesday in the Minnesota Senate.

The Senate Taxes Committee considered a bill from Majority Leader Tom Bakk, DFL-Cook. It would make a board now comprised of legislators advisory in spending matters rather than giving the panel joint authority to decide how economic development dollars get used.

"We need to fix this potential constitutional governance problem," Bakk said before his bill was set aside for inclusion in broader tax bill.

Legislators are considering bills to restructure the agency governance after a sharply critical audit questioned how money has been spent and whether the current setup is even constitutional.

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Under the Bakk bill, final decisions would rest with the IRRRB commissioner, who is appointed by the governor, after that administrator seeks input.

The changes are less pronounced than competing House legislation, which would abolish the existing board and give state lawmakers more power to affect agency spending decisions.

Sen. Carla Nelson, R-Rochester, wanted assurances that spending decisions weren't being loosened too much by the Senate bill.

"Are we putting all of the power in this one commissioner? Checks and balances are so important," Nelson said, adding, "It just seems like suddenly it's a lot of power and a lot of financial discretion in the hands of just this one commissioner."

Auditor James Nobles, who did the earlier review, told the committee that the new setup wouldn't be out of line with executive decisions made in other agencies.