HF 80

as introduced - 84th Legislature, 2005 1st Special Session (2005 - 2005) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; providing a process for
community ownership of the Minnesota Twins; proposing
coding for new law as Minnesota Statutes, chapter 4B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [4B.01] PURPOSE.
new text end

new text begin The legislature determines that:
new text end

new text begin (1) a professional baseball franchise is an important asset
to the state of Minnesota and ensuring that a franchise remains
in Minnesota is an important public purpose;
new text end

new text begin (2) providing broad-based local ownership of a major league
baseball franchise develops trust among fans, taxpayers, and the
team, and helps ensure this important asset will remain in the
state;
new text end

new text begin (3) providing community ownership of a professional
baseball franchise ensures that the financial benefits of any
increased value of the franchise will accrue to those members of
the community who own the franchise; and
new text end

new text begin (4) enacting legislation providing for community ownership
indicates to major league baseball continuing support for
professional baseball in Minnesota.
new text end

Sec. 2.

new text begin [4B.02] ACQUISITION.
new text end

new text begin The governor and the Metropolitan Sports Facilities
Commission must attempt to facilitate the formation of a
corporation to acquire the baseball franchise and to identify an
individual private managing owner of the corporation. The
corporation formed to acquire the franchise shall have a capital
structure in compliance with all of the following provisions:
new text end

new text begin (1) there may be two classes of capital stock: common
stock and preferred stock. Both classes of stock must give
holders voting rights with respect to any relocation or
voluntary contraction of the franchise;
new text end

new text begin (2) the private managing owner must own no less than 25
percent and no more than 35 percent of the common stock. For
purposes of this restriction, shares of common stock owned by
the private managing owner include shares of common stock owned
by any related taxpayer as defined in section 1313(c) of the
Internal Revenue Code of 1986, as amended. Other than the
rights of all other holders of common stock and preferred stock
with respect to relocation or voluntary contraction of the
franchise, the private managing owner must control all aspects
of the operation of the corporation;
new text end

new text begin (3) other than the private managing owner, no individual or
entity may own more than five percent of the common stock of the
corporation;
new text end

new text begin (4) at least 50 percent of the ownership of the common
stock must be sold to members of the general public in a general
solicitation and a person or entity must not own more than one
percent of common stock of the corporation; and
new text end

new text begin (5) the articles of incorporation, bylaws, and other
governing documents must provide that the franchise may not move
outside of the state or agree to voluntary contraction without
approval of at least 75 percent of the shares of common stock
and at least 75 percent of the shares of preferred stock.
Notwithstanding any law to the contrary, these 75 percent
approval requirements shall not be amended by the shareholders
or by any other means.
new text end

new text begin Except as specifically provided by this act, no state
agency may spend money from any state fund for the purpose of
generating revenue under this subdivision or for the purpose of
providing operating support or defraying operating losses of a
professional baseball franchise.
new text end