Minnesota Legislature
HF 2483
as introduced - 93rd Legislature (2023 - 2024) Posted on 03/02/2023 02:13pm
Bill Text Versions
| Engrossments | ||
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| Introduction | Posted on 03/02/2023 |
Current Version - as introduced
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A bill for an act
relating to stadium finance; modifying city of Minneapolis local sales and use tax
provisions, lawful gambling tax provisions, and other stadium-related provisions;
providing for certain bonds to be retired early; modifying requirements for operating
expenses and capital improvements; appropriating money; amending Minnesota
Statutes 2022, sections 16A.726; 297A.994, subdivision 4, by adding a subdivision;
297E.021, subdivision 4; 473J.03, subdivision 2; 473J.13, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 16A.726, is amended to read:
16A.726 SPORTS FACILITIES TRANSFERS; APPROPRIATIONS.
(a) If state appropriation bonds have not been issued under section 16A.965, amounts
not to exceed the increased revenues estimated by the commissioner of management and
budget under section 297E.021, subdivision 2, are appropriated from the general fund to
the commissioner of management and budget to make transfers to the Minnesota Sports
Facilities Authority for stadium costs as defined under section 473J.03, subdivision 9.
(b) The commissioner shall make transfers to the Minnesota Sports Facilities Authority
required to make the state payments under section 473J.13, subdivisions 2 and 4deleted text begin , and for
the amount of Minneapolis taxes withheld under section 297A.994, subdivision 4, paragraph
(a), clause (5)deleted text end . Amounts sufficient to make the transfers are appropriated to the commissioner
from the general fund.
(c) $2,700,000 is annually appropriated from the general fund from fiscal year 2014
through fiscal year 2033 to the commissioner of management and budget for a grant to the
city of St. Paul for the operating or capital costs of new or existing sports facilities.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2022, section 297A.994, subdivision 4, is amended to read:
Subd. 4.
General fund allocations.
new text begin Except as provided in subdivision 5, new text end the
commissioner must retain and deposit to the general fund the following amounts, as required
by subdivision 3, clause (3):
(1) for state bond debt service support beginning in calendar year 2021, and for each
calendar year thereafter through calendar year 2046, periodic amounts so that not later than
December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has been
deposited in the general fund. To determine aggregate present value, the commissioner must
consult with the commissioner of management and budget regarding the present value dates,
discount rate or rates, and schedules of annual amounts. The present value date or dates
must be based on the date or dates bonds are sold under section 16A.965, or the date or
dates other state funds, if any, are deposited into the construction fund. The discount rate
or rates must be based on the true interest cost of the bonds issued under section 16A.965,
or an equivalent 30-year bond index, as determined by the commissioner of management
and budget. The schedule of annual amounts must be certified to the commissioner by the
commissioner of management and budget and the finance officer of the city;
(2) for the capital improvement reserve appropriation to the Minnesota Sports Facilities
Authority beginning in calendar year 2021, and for each calendar year thereafter through
calendar year 2046, an aggregate annual amount equal to the amount paid by the state for
this purpose in that calendar year under section 473J.13, subdivision 4;
(3) for the operating expense appropriation to the Minnesota Sports Facilities Authority
beginning in calendar year 2021, and for each calendar year thereafter through calendar
year 2046, an aggregate annual amount equal to the amount paid by the state for this purpose
in that calendar year under section 473J.13, subdivision 2;new text begin and
new text end
(4) for recapture of state advances for capital improvements and operating expenses for
calendar years 2016 through 2020 beginning in calendar year 2021, and for each calendar
year thereafter until all amounts under this clause have been paid, proportionate amounts
periodically until an aggregate amount equal to the present value of all amounts paid by the
state have been deposited in the general fund. To determine the present value of the amounts
paid by the state to the authority and the present value of amounts deposited to the general
fund under this clause, the commissioner shall consult with the commissioner of management
and budget regarding the present value dates, discount rate or rates, and schedule of annual
amounts. The present value dates must be based on the dates state funds are paid to the
authority, or the dates the commissioner of revenue deposits taxes for purposes of this clause
to the general fund. The discount rates must be based on the reasonably equivalent cost of
state funds as determined by the commissioner of management and budget. The schedule
of annual amounts must be revised to reflect amounts paid under section 473J.13, subdivision
2, paragraph (b), for 2016 to 2020, and subdivision 4, paragraph (c), for 2016 to 2020, and
taxes deposited to the general fund from time to time under this clause, and the schedule
and revised schedules must be certified to the commissioner by the commissioner of
management and budget and the finance officer of the city, and are transferred as accrued
from the general fund for repayment of advances made by the state to the authoritydeleted text begin ; anddeleted text end new text begin .
new text end
deleted text begin
(5) to capture increases in taxes imposed under the special law, for the benefit of the
Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for each calendar
year thereafter through 2046, there shall be deposited to the general fund in proportionate
periodic payments in the following year, an amount equal to the following:
deleted text end
deleted text begin
(i) 50 percent of the difference, if any, by which the amount of the net annual taxes for
the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus
$1,000,000, inflated at two percent per year since 2011, minus
deleted text end
deleted text begin
(ii) 25 percent of the difference, if any, by which the amount of the net annual taxes for
the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus
$3,000,000, inflated at two percent per year since 2011.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2022, section 297A.994, is amended by adding a subdivision
to read:
new text begin Subd. 5. new text end
new text begin Retention of sales tax; exceptions. new text end
new text begin
(a) If the stadium bonds issued under
section 16A.965 are prepaid and defeased, the aggregate present value of the city's state
bond debt service support payments in subdivision 4, clause (1), is zero, and no tax must
be retained under that clause for the debt service support payments.
new text end
new text begin
(b) If an amount equal to the aggregate present value of the state advances described in
subdivision 4, clause (4), is transferred as required under section 297E.021, subdivision 4,
clause (3), the aggregate present value of the advances in subdivision 4, clause (4), is zero,
and no tax must be retained under that subdivision for the advances.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2022, section 297E.021, subdivision 4, is amended to read:
Subd. 4.
Appropriation; general reserve account.
new text begin (a) new text end To the extent the commissioner
determines that revenues are available under subdivision 3 for the fiscal year, those amounts
are appropriated from the general fund for deposit in a general reserve account established
by order of the commissioner of management and budget. new text begin Provided sufficient amounts are
available in the reserve for each appropriation, new text end amounts in this reserve are appropriated new text begin to
the commissioner of management and budget for the following purposes, in the following
order:
new text end
new text begin
(1) to prepay and defease the stadium bonds issued under section 16A.965;
new text end
new text begin
(2) to make a transfer of $....... to the capital reserve fund established in section 473J.13,
subdivision 4;
new text end
new text begin
(3) to make a transfer equal to the aggregate present value of the state advances of the
city's share of capital improvements and operating expenses described in section 297A.994,
subdivision 4, clause (4), to the general fund; and
new text end
new text begin (4) new text end as necessary for application against any shortfall in the amounts deposited to the
general fund under section 297A.994 or, after consultation with the Legislative Commission
on Planning and Fiscal Policy, amounts in this reserve are appropriated to the commissioner
of management and budget for other uses related to the stadium authorized under section
473J.03, subdivision 8, that the commissioner deems financially prudent including but not
limited to reimbursements for capital and operating costs relating to the stadium, refundings,
and prepayment of debt.
new text begin (b) new text end In no eventdeleted text begin ,deleted text end shall available revenues be pledged, nor shall the appropriations of
available revenues made by this section constitute a pledge of available revenues as security
for the prepayment of principal and interest on the appropriation bonds under section
16A.965.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2022, section 473J.03, subdivision 2, is amended to read:
Subd. 2.
Annual adjustment factor.
"Annual adjustment factor" means for any year,
the increase, if any, in the amounts of the city of Minneapolis taxes, imposed under a special
law originally enacted in 1986, that are received by the commissioner of revenue in the
preceding year over the amount received in the year prior to the preceding year, expressed
as a percentage of the amount received in the year prior to the preceding year; provided that
the adjustment factor for any year must not be less than zero percent nor more than deleted text begin fivedeleted text end new text begin
2.75new text end percent.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for adjustments beginning in 2023.
new text end
Sec. 6.
Minnesota Statutes 2022, section 473J.13, subdivision 4, is amended to read:
Subd. 4.
Capital improvements.
(a) The authority shall establish a capital reserve fund.
The authority shall be responsible for making, or for causing others to make, all capital
repairs, replacements, and improvements for the stadium and stadium infrastructure. The
authority shall maintain, or cause others to maintain, the stadium and stadium infrastructure
in a safe, clean, attractive, and first-class manner so as to cause them to remain in a condition
comparable to that of other comparable NFL facilities of similar design and age. The authority
shall make, or cause others to make, all necessary or appropriate repairs, renewals, and
replacements, whether structural or nonstructural, interior or exterior, ordinary or
extraordinary, foreseen or unforeseen, in a prompt and timely manner. In addition, the
authority, with approval of the NFL team, may enter into an agreement with a program
manager to perform some or all of the responsibilities of the authority in this subdivision
and to assume and accept financial liability for the cost of performing the responsibilities.
(b) The NFL team must contribute deleted text begin $1,500,000deleted text end new text begin $5,000,000new text end each year, beginning in deleted text begin 2016
or as otherwise determined for the term of the lease or use agreement to the capital reserve
fund, increased by a three percent annual inflation ratedeleted text end new text begin 2023 until January 1, 2047new text end .
(c) The state shall contribute deleted text begin $1,500,000deleted text end new text begin $5,000,000new text end each year, beginning in deleted text begin 2016 or as
otherwise determined for the term of the lease to the capital reserve fund. The contributions
of the state are subject to increase by an annual adjustment factor. The contribution under
this paragraph by the state from 2016 through 2020 shall be repaid to the statedeleted text end new text begin 2023 until
January 1, 2047,new text end using funds new text begin generated new text end in accordance withnew text begin the city of Minneapolis as
specified undernew text end section 297A.994, subdivision 4, clause deleted text begin (4)deleted text end new text begin (2)new text end .
(d) The authority with input from the NFL team shall develop short-term and long-term
capital funding plans and shall use those plans to guide the future capital needs of the stadium
and stadium infrastructure. The authority shall make the final determination with respect
to funding capital needs. Any capital improvement proposed by the NFL team intended
primarily to provide revenue enhancements to the NFL team shall be paid for by the NFL
team, unless otherwise agreed to with the authority.
(e) The NFL team has authority to determine the design of a retractable roof feature for
the stadium. The NFL team must cooperate with the authority in designing the feature to
minimize any additional operating cost. The design must not result in a material marginal
increase in the operating or capital costs of the stadium, considering current collections and
reserves.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for contributions beginning in 2023.
new text end