HF 1018

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to culture and recreation; establishing the 
  1.3             commission on culture and recreation; providing 
  1.4             capital grants to construct and rehabilitate 
  1.5             facilities for the arts, professional sports, and the 
  1.6             University of Minnesota; authorizing the sale of state 
  1.7             revenue bonds backed by license and fee revenue; 
  1.8             appropriating money; proposing coding for new law as 
  1.9             Minnesota Statutes, chapter 240B. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [240B.01] [COMMISSION ON CULTURE AND 
  1.12  RECREATION.] 
  1.13     Subdivision 1.  [CREATION.] The commission on culture and 
  1.14  recreation consists of 12 members appointed by the governor 
  1.15  under section 15.0575, except as otherwise provided in this 
  1.16  section, plus the commissioner of finance.  The commissioner of 
  1.17  finance does not have the right to vote.  An appointment to the 
  1.18  board requires the advice and consent of two-thirds of the whole 
  1.19  senate.  The term of a member is six years, ending on the first 
  1.20  Monday in January.  The governor shall stagger the appointments 
  1.21  to the first commission so that the terms of one-third of the 
  1.22  members expire every two years.  At least one member of the 
  1.23  commission must be a resident of each congressional district and 
  1.24  at least one member must be a former legislator.  A current 
  1.25  legislator may not be a member of the commission.  No more than 
  1.26  six members of the commission may support the same political 
  1.27  party.  The governor may remove an appointed member from the 
  2.1   commission at any time. 
  2.2      Subd. 2.  [MEETINGS.] The commission must meet at least 
  2.3   once each calendar quarter.  Meetings must be open to the public 
  2.4   under section 471.705. 
  2.5      Subd. 3.  [VOTING.] Action to approve a project grant 
  2.6   requires the affirmative vote of two-thirds of all the members 
  2.7   of the commission. 
  2.8      Sec. 2.  [240B.02] [GRANTS FOR PROJECTS.] 
  2.9      Subdivision 1.  [CAPITAL GRANTS.] The commission shall make 
  2.10  grants for the sole purpose of constructing or rehabilitating 
  2.11  cultural and sports facilities for use by arts organizations, 
  2.12  professional sports teams, or the University of Minnesota.  The 
  2.13  commission may not own or operate cultural or sports facilities 
  2.14  or provide money for their operation.  
  2.15     Subd. 2.  [GUIDELINES.] The commission shall adopt rules 
  2.16  establishing guidelines for capital project grants.  An 
  2.17  application for a grant must demonstrate how the community in 
  2.18  which the project will be located has demonstrated its 
  2.19  commitment to the future through community investment, 
  2.20  partnerships, and vision, and how the project will contribute to 
  2.21  the vibrancy of the community.  The commission shall give 
  2.22  priority to projects that include partnerships between public 
  2.23  and private entities.  The commission may not provide money for 
  2.24  more than half the cost of a project.  Any increase in costs 
  2.25  after a grant has been made may not be borne by the commission. 
  2.26     Sec. 3.  [240B.03] [DEBT OBLIGATIONS.] 
  2.27     Subdivision 1.  [PURPOSES.] The commission may by 
  2.28  resolution authorize the sale and issuance of its revenue bonds 
  2.29  for the following purposes: 
  2.30     (1) to pay the costs of the acquisition and betterment of 
  2.31  cultural and recreation facilities; 
  2.32     (2) to pay issuance costs, interest costs during 
  2.33  construction, and costs of bond insurance or other credit 
  2.34  enhancement for the bonds and to establish necessary reserves 
  2.35  for operating and debt service costs; 
  2.36     (3) to refund bonds issued under this section; and 
  3.1      (4) to fund judgments entered by any court against the 
  3.2   commission in matters relating to the commission's functions 
  3.3   related to the cultural and recreation facilities. 
  3.4      Subd. 2.  [AMOUNT.] The principal amount of the bonds 
  3.5   issued for the purpose specified in subdivision 1, clause (1), 
  3.6   exclusive of any original issue discount, must not exceed 
  3.7   $....... 
  3.8      Subd. 3.  [TAXABILITY.] The bonds may be issued as 
  3.9   tax-exempt revenue bonds or as taxable revenue bonds in the 
  3.10  proportions that the commission may determine. 
  3.11     Subd. 4.  [PROCEDURE.] The bonds must be sold, issued, and 
  3.12  secured in the manner provided in chapter 475 for bonds payable 
  3.13  solely from revenues, and the commission has the same powers and 
  3.14  duties as a municipality and its governing body in issuing bonds 
  3.15  under that chapter.  The bonds may be sold at any price and at 
  3.16  public or private sale as determined by the commission.  The 
  3.17  bonds may be sold in one or more series.  Different series may 
  3.18  be backed by different sources.  An election is not required.  
  3.19     Subd. 5.  [NOT A GENERAL OR MORAL OBLIGATION.] The bonds 
  3.20  are special obligations of the commission secured by and payable 
  3.21  solely from the state license and fee revenue paid to the 
  3.22  commission under subdivision 9.  The bonds are not a general or 
  3.23  moral obligation of the commission or the state. 
  3.24     Subd. 6.  [BROKERAGE FIRM AGREEMENT.] Before issuing debt 
  3.25  under this section, the commission shall enter into an agreement 
  3.26  with the brokerage firm to be used in connection with the sale 
  3.27  and issuance of the bonds or revenue anticipation certificates 
  3.28  under this section, guaranteeing that fees and charges payable 
  3.29  to the brokerage firm under the agreement, including any 
  3.30  underwriting discounts, will not exceed fees and charges 
  3.31  customarily payable in connection with the sale and issuance of 
  3.32  bonds or revenue anticipation certificates. 
  3.33     Subd. 7.  [SECURITY.] (a) Bonds issued under this section 
  3.34  may be secured by a bond resolution, or by a trust indenture 
  3.35  entered into by the commission with a corporate trustee within 
  3.36  or outside the state.  In the resolution or the trust indenture, 
  4.1   the commission must establish covenants for the payment and 
  4.2   security of the bonds and pledge the state license and fee 
  4.3   revenue to be received by it under subdivision 9, other than 
  4.4   amounts paid to it for administrative costs, for this purpose.  
  4.5   In particular, but without limitation, the commission may 
  4.6   covenant and agree to enforce, or authorize the bondholders or 
  4.7   their trustee to enforce, all agreements entered into by the 
  4.8   commission with the state relating to the payment of state 
  4.9   license and fee revenue and other money, if any, to the 
  4.10  commission for the payment and security of the bonds. 
  4.11     (b) The pledge of state license and fee revenue for the 
  4.12  payment and security of the commission's revenue bonds is a 
  4.13  valid charge on those revenues from the date when bonds are 
  4.14  first issued or secured under the resolution or indenture and 
  4.15  secure the payment of principal and interest and redemption 
  4.16  premiums when due and the maintenance at all times of a reserve 
  4.17  securing the payments.  No mortgage of or security interest in 
  4.18  any tangible real or personal property is granted to the 
  4.19  bondholders or the trustee, but they have a valid, binding, and 
  4.20  enforceable first lien and security interest in all state 
  4.21  license and fee revenue pledged to the payment of the bonds by 
  4.22  the commission, as against the claims of all other persons in 
  4.23  tort, contract, or otherwise, irrespective of whether the 
  4.24  parties have notice of the claims, and without possession or 
  4.25  filing as provided in the Uniform Commercial Code or any other 
  4.26  law. 
  4.27     Subd. 8.  [REVENUE ANTICIPATION CERTIFICATES.] In any year, 
  4.28  upon final adoption by the commission of an annual budget of the 
  4.29  commission, and in anticipation of the receipt of state license 
  4.30  and fee revenue and other receipts of the commission, the 
  4.31  commission may authorize the issuance and sale, in the form and 
  4.32  manner and upon the terms it may determine, of revenue 
  4.33  anticipation certificates.  The terms and provisions of the 
  4.34  certificates and the security for their payment must be 
  4.35  consistent with and not violate the terms of any bond resolution 
  4.36  or indenture adopted or entered into by the commission under 
  5.1   subdivision 7.  The certificates must mature not later than 
  5.2   three months after the close of the budget year.  As much of the 
  5.3   anticipated state license and fee revenue and other money as may 
  5.4   be needed for the payment of the certificates and interest on 
  5.5   them must be paid into a special debt service fund established 
  5.6   for the certificates in the commission's financial records.  The 
  5.7   proceeds of the certificates may be used for any purpose for 
  5.8   which the anticipated revenues may be used or for any purpose 
  5.9   for which bond proceeds under subdivision 1 may be used. 
  5.10     Subd. 9.  [APPROPRIATION; STATE LICENSE AND FEE 
  5.11  REVENUE.] There is appropriated to the commissioner of finance, 
  5.12  for payment to the commission for the payment and security of 
  5.13  bonds issued by the commission under subdivision 1, the amount 
  5.14  of money on hand in the special revenue fund established in 
  5.15  section 16A.67, subdivision 3, received from state license and 
  5.16  service fees as defined in section 16A.6701.  This pledge is 
  5.17  subordinate to the pledge and appropriation of the revenues in 
  5.18  the special revenue fund from the payment and security of the 
  5.19  state's outstanding revenue bonds series 1996A and any other 
  5.20  similar bonds issued under section 16A.67, and the commissioner 
  5.21  of finance shall transfer money from the special revenue fund to 
  5.22  the commission only after transfers sufficient to pay debt 
  5.23  service on the outstanding bonds under section 16A.67 payable 
  5.24  from the revenues have been made.  
  5.25     Subd. 10.  [AGREEMENT BY COMMISSIONER OF FINANCE.] (a) The 
  5.26  commissioner of finance, on behalf of the state, shall enter 
  5.27  into an agreement with the commission obligating the state to 
  5.28  pay to the commission the money appropriated by subdivision 9 at 
  5.29  the times and in the amounts determined by the commission to be 
  5.30  necessary or desirable to enable the commission to carry out its 
  5.31  powers and duties under sections 1 to 3.  In the agreement, the 
  5.32  commissioner shall also covenant and agree on behalf of the 
  5.33  state that, so long as any bonds or other obligations issued by 
  5.34  the commission under this section are outstanding and not 
  5.35  discharged in accordance with the resolutions authorizing their 
  5.36  issuance: 
  6.1      (1) the state will maintain the special revenue fund 
  6.2   established in section 16A.67, subdivision 3; 
  6.3      (2) the state will not reduce or repeal the appropriation 
  6.4   made in subdivision 9; 
  6.5      (3) the state will not direct or appropriate to another 
  6.6   fund or account money now required to be deposited in the 
  6.7   special revenue fund established in section 16A.67, subdivision 
  6.8   3, provided that the state retains authority to provide for the 
  6.9   deposit of health care reimbursements described in section 
  6.10  246.18 directly to the general fund or another fund of the 
  6.11  state, and to alter, reduce, eliminate, dedicate to another 
  6.12  fund, or add to the state license and service fees or 
  6.13  departmental earnings described in sections 16A.1285 and 
  6.14  16A.6701; and 
  6.15     (4) the state will provide information necessary to enable 
  6.16  the commission to comply with federal securities laws, rules, 
  6.17  and regulations applicable to bonds issued under subdivision 1.  
  6.18  The agreement may also contain any other covenants and 
  6.19  agreements the commissioner considers necessary that are 
  6.20  consistent with existing law, but the covenants may not include 
  6.21  a covenant to continue to operate the state lottery. 
  6.22     (b) The agreement is enforceable against the state in the 
  6.23  district court for Ramsey county.  The state waives immunity 
  6.24  from suit in connection with the agreement and confers 
  6.25  jurisdiction on the district court to determine the matter in 
  6.26  the manner provided for civil actions in the district court.  
  6.27  Section 3.751, subdivisions 3 and 4, apply. 
  6.28     Sec. 4.  [APPROPRIATION.] 
  6.29     $10,000,000 is appropriated from the general fund to the 
  6.30  commission on culture and recreation to make capital grants 
  6.31  under section 2 and for the commission's general administrative 
  6.32  costs.  $....... for fiscal year 2000 and $....... for fiscal 
  6.33  year 2001 are for administrative costs.  The balance of the 
  6.34  appropriation is available until June 30, 2001.  The 
  6.35  appropriation must be repaid to the general fund by June 30, 
  6.36  2005, from state license and fee revenue the commission receives 
  7.1   under section 3, subdivision 9, that is not needed to repay the 
  7.2   commission's bonds or certificates.