HF 2534

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to public contracts; defining public 
  1.3             contracts; making a legislative finding about them; 
  1.4             stating legislative intent regarding breach of a 
  1.5             public contract; prohibiting tortious interference 
  1.6             with a public contract; providing for standing, 
  1.7             injunctive relief, and triple damages; proposing 
  1.8             coding for new law in Minnesota Statutes, chapter 16C. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [16C.26] [PUBLIC CONTRACTS; PROFESSIONAL 
  1.11  ATHLETIC TEAMS.] 
  1.12     Subdivision 1.  [DEFINITIONS.] "Public contracts" within 
  1.13  the meaning of this section shall mean any binding agreement, 
  1.14  use agreement, or lease that is entered into by any governmental 
  1.15  body and that relates to the use of publicly owned or publicly 
  1.16  financed land or structures. 
  1.17     Subd. 2.  [FINDING.] The legislature finds that the public 
  1.18  relies on the security of public contracts and that significant 
  1.19  public resources and policy decisions are made in reliance on 
  1.20  the security of public contracts. 
  1.21     Subd. 3.  [EQUITABLE REMEDY.] It is the intent of the 
  1.22  legislature that a material breach of a public contract between 
  1.23  any governmental body and professional athletic teams that 
  1.24  commit to the long-term playing of major league games at public 
  1.25  facilities is deemed to cause irreparable harm for which no 
  1.26  adequate remedy at law is available and that the grant of 
  1.27  equitable relief to remedy the breach is in the public interest 
  2.1   and shall be liberally so construed. 
  2.2      Subd. 4.  [TORTIOUS INTERFERENCE.] (a) No person shall 
  2.3   tortiously interfere with any public contract. 
  2.4      (b) The governmental body which is a party to a public 
  2.5   contract shall have standing to sue any person who tortiously 
  2.6   interferes with such public contract and the district courts 
  2.7   shall, by reason of the harm occurring in Minnesota as a result 
  2.8   of such tortious interference, have personal and subject matter 
  2.9   jurisdiction over such actions. 
  2.10     (c) Any governmental body injured directly or indirectly by 
  2.11  a violation of this section shall be entitled to injunctive 
  2.12  relief, including a temporary restraining order and temporary 
  2.13  injunction, prohibiting such tortious interference and 
  2.14  vindicating the security of public contracts.  No bond shall be 
  2.15  required to secure emergency or temporary injunctive relief, 
  2.16  provided that the court finds the governmental body enjoys a 
  2.17  likelihood of success on the merits.  In addition, any 
  2.18  governmental body enjoys a likelihood of success on the merits.  
  2.19  In addition, any governmental body injured directly or 
  2.20  indirectly by a violation of this section shall recover three 
  2.21  times the actual damages sustained that are not cured by 
  2.22  injunctive relief, together with costs and disbursements, 
  2.23  including reasonable attorneys' fees. 
  2.24     Subd. 5.  [EFFECTIVE DATE.] This section shall be effective 
  2.25  the day following final enactment and shall apply to the 
  2.26  material breach of or interference with any public contract in 
  2.27  effect on or after the date of final enactment.