State Senator Jeremy Miller (R-Winona), the chairman of the Senate Jobs and Economic Growth Committee, has sent a letter to Department of Iron Range Resources and Rehabilitation (IRRRB) Commissioner Mark Phillips seeking answers to several questions related to recent media reports that the IRRRB plans to officially begin operations of the Range Trust in the coming weeks.=

The letter questions Commissioner Phillips about Range Trust operations, funding, accountability, and transparency.

“As a senator from Southeastern Minnesota, I typically would not get involved in Iron Range issues,” said Sen. Miller. “However, this issue was brought to my attention, and as chairman of the Senate committee charged with oversight of the IRRRB, it is imperative we ensure taconite tax dollars are used only as intended – for economic development and job creation. At the end of the day, we have to make sure the Range Trust is transparent and accountable to residents of the Range. I look forward to hearing from Commissioner Phillips on this important issue.”

The IRRRB created the Range Trust in 2014 as a non-profit, private entity where the board could transfer funds collected from the Range’s taconite tax. At their next meeting, tentatively scheduled for January 24, the IRRRB intends to spend $50,000 to complete the Range Trust’s organizational process.

 

See below for the complete text of the letter:

January 4, 2018

Mark Phillips
Commissioner, Iron Range Resources & Rehabilitation
PO Box 441
4261 Hwy 53 S
Eveleth, MN 55734

Dear Commissioner Phillips,

I understand you intend to spend $50,000 to begin the organization of the Range Trust at the next meeting of the Iron Range Resources and Rehabilitation Board (IRRRB), tentatively scheduled for January 24.

As chairman of the Senate committee with jurisdiction over the IRRRB, I have several questions related to the Range Trust and how it will interact with the IRRRB given the statutory changes we made to the Board last session. I would appreciate responses to these questions prior to the January 24 meeting.

• After the $50,000 is allocated and spent, how will each of the following conditions related to the Range Trust Project be completed, as laid out in Resolution No.15-016?
  • (1) An open process is established to select the first slate of Trustees, and the Board has representation in such process;
  • (2) Range Trust conducts its organizational meeting;
  • (3) The first slate of permanent trustees are elected based on recommendations provided through the process abided by in (1) above;
  • (4) Bylaws are adopted that are satisfactory to the IRRRB and ensure representation by the Board on the nonprofit’s Board of Trustees;
  • (5) The IRRRB executes a contract with Range Trust that allows the IRRRB to claw back the funds transferred in the event Range Trust commits a material breach of any of the conditions contained in such contract; and
  • (6) The Board affirms its support of such contract by at least seven of its members.

• What actions have been taken to date related to the Range Trust?
• As commissioner of the Department of Iron Range Resources and Rehabilitation, do you believe you will have full authority to determine transfers to the Range Trust? Will you respect the Board’s positive or negative recommendations related to Range Trust transfers or other organizational matters?
• How long will Range Trust Board Trustees serve?
• How will the Range Trust’s unelected board be accountable to the people of the Iron Range, and to the legislature, to guarantee funds are spent only on projects related to economic development and job creation?
• Given that the IRRR Board’s makeup and role look extremely different today than in 2014, will you commit to giving the current board an opportunity to revisit Resolution No. 15-016?

I appreciate you taking the time to review my questions. I look forward to your response.

Respectfully,

Jeremy Miller
Chair, Senate Jobs and Economic Growth Committee