1.1                          A bill for an act 
  1.2             relating to baseball; providing for a process to 
  1.3             construct, fund, maintain, and govern a major league 
  1.4             baseball park; providing for powers and duties of the 
  1.5             metropolitan sports facilities commission; authorizing 
  1.6             certain taxes, revenue distributions, bonds and other 
  1.7             debt obligations, and allocations; appropriating 
  1.8             money; amending Minnesota Statutes 1996, sections 
  1.9             297A.135, subdivisions 2, 3, 4, and by adding a 
  1.10            subdivision; 349A.10, by adding a subdivision; 
  1.11            473.551, subdivision 8, and by adding subdivisions; 
  1.12            473.552; 473.553, subdivision 1; and 473.556, 
  1.13            subdivisions 3, 4, 5, and by adding subdivisions; 
  1.14            473F.08, subdivision 5, and by adding a subdivision; 
  1.15            proposing coding for new law in Minnesota Statutes, 
  1.16            chapter 473; proposing coding for new law as Minnesota 
  1.17            Statutes, chapter 473I. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19                             ARTICLE 1
  1.20                     BASEBALL PARK CONSTRUCTION
  1.21     Section 1.  Minnesota Statutes 1996, section 473.551, 
  1.22  subdivision 8, is amended to read: 
  1.23     Subd. 8.  [SPORTS FACILITY OR SPORTS FACILITIES.] "Sports 
  1.24  facility" or "sports facilities" means real or personal property 
  1.25  comprising a stadium, stadiums, baseball parks, or arenas 
  1.26  suitable for university or major league professional baseball, 
  1.27  for university or major league professional football and soccer, 
  1.28  or for both, or for university or major league hockey or 
  1.29  basketball, or for both, together with adjacent parking 
  1.30  facilities, including on the effective date of Laws 1994, 
  1.31  chapter 648, the metrodome, the baseball park, the met center, 
  2.1   and, upon acquisition by the commission, the basketball and 
  2.2   hockey arena. 
  2.3      Sec. 2.  Minnesota Statutes 1996, section 473.551, is 
  2.4   amended by adding a subdivision to read: 
  2.5      Subd. 18.  [BASEBALL PARK.] "Baseball park" means a park 
  2.6   owned by the commission and designed for playing major league 
  2.7   professional baseball, as specified in section 473.5991. 
  2.8      Sec. 3.  Minnesota Statutes 1996, section 473.551, is 
  2.9   amended by adding a subdivision to read: 
  2.10     Subd. 19.  [BASEBALL PARK REVENUE.] "Baseball park revenue" 
  2.11  means all revenue received by or payable to the commission 
  2.12  arising from its ownership and operation of the baseball park 
  2.13  including, but not limited to, revenues from admission taxes or 
  2.14  other special taxes, bond proceeds, fees, lottery proceeds, 
  2.15  loans, and gifts. 
  2.16     Sec. 4.  Minnesota Statutes 1996, section 473.551, is 
  2.17  amended by adding a subdivision to read: 
  2.18     Subd. 20.  [BASEBALL TEAM.] "Baseball team" means a major 
  2.19  league professional baseball team. 
  2.20     Sec. 5.  Minnesota Statutes 1996, section 473.551, is 
  2.21  amended by adding a subdivision to read: 
  2.22     Subd. 21.  [CITY.] "City" when referring to anything 
  2.23  involving the baseball park means the city in which the baseball 
  2.24  park is located. 
  2.25     Sec. 6.  Minnesota Statutes 1996, section 473.551, is 
  2.26  amended by adding a subdivision to read: 
  2.27     Subd. 22.  [COUNTY.] "County" when referring to anything 
  2.28  involving the baseball park means the county in which the 
  2.29  baseball park is located. 
  2.30     Sec. 7.  Minnesota Statutes 1996, section 473.551, is 
  2.31  amended by adding a subdivision to read: 
  2.32     Subd. 23.  [OWNER.] "Owner" means the individual or person 
  2.33  who directly or indirectly owns an interest in the baseball team.
  2.34  Owner does not mean the commission.  
  2.35     Sec. 8.  Minnesota Statutes 1996, section 473.552, is 
  2.36  amended to read: 
  3.1      473.552 [LEGISLATIVE POLICY; PURPOSE.] 
  3.2      The legislature finds that: 
  3.3      (a) (1) the population in the metropolitan area has a need 
  3.4   for sports facilities and that this need cannot be met 
  3.5   adequately by the activities of individual municipalities, by 
  3.6   agreements among municipalities, or by the private efforts of 
  3.7   the people in the metropolitan area,; 
  3.8      (b) (2) the commission's ownership and operation of the 
  3.9   metrodome and met center has met in part the foregoing need and 
  3.10  has promoted the economic and social interests of the 
  3.11  metropolitan area, of the state, and of the public, and; 
  3.12     (c) (3) the commission's acquisition of the basketball and 
  3.13  hockey arena on the terms and conditions provided in sections 
  3.14  473.598 and 473.599 shall similarly and more fully meet the 
  3.15  foregoing needs and promote these interests; and 
  3.16     (4) the commission's construction and operation of the 
  3.17  baseball park by reasonable methods that the legislature and the 
  3.18  commission may devise to secure the long-term commitment of the 
  3.19  baseball team, including, but not limited to, the assignment of 
  3.20  the operation of the baseball park to a private entity, all of 
  3.21  which may further secure and promote these public purposes, will 
  3.22  likewise meet the foregoing needs and promote these interests. 
  3.23  It is therefore necessary for the public health, safety and 
  3.24  general welfare to establish a procedure for the acquisition and 
  3.25  betterment of sports facilities and to create a metropolitan 
  3.26  sports facilities commission. 
  3.27     Sec. 9.  Minnesota Statutes 1996, section 473.553, 
  3.28  subdivision 1, is amended to read: 
  3.29     Subdivision 1.  [GENERAL.] The metropolitan sports 
  3.30  facilities commission is established and as a local governmental 
  3.31  unit and political subdivision of the state that may exercise 
  3.32  its powers within the metropolitan area.  The commission shall 
  3.33  be organized, structured, and administered as provided in this 
  3.34  section. 
  3.35     Sec. 10.  Minnesota Statutes 1996, section 473.556, 
  3.36  subdivision 3, is amended to read: 
  4.1      Subd. 3.  [ACQUISITION OF PROPERTY.] The commission may 
  4.2   acquire by lease, purchase, gift, or devise all necessary right, 
  4.3   title, and interest in and to real or personal property deemed 
  4.4   necessary to the purposes contemplated by sections 473.551 to 
  4.5   473.599 within the limits of the metropolitan area.  The city, 
  4.6   county, or commission may exercise the right of eminent domain 
  4.7   under chapter 117 to acquire a site for the baseball park and, 
  4.8   from time to time such other property, real, personal and 
  4.9   intangible, as are essential and integral to the successful 
  4.10  operation of a sports facility.  
  4.11     Sec. 11.  Minnesota Statutes 1996, section 473.556, 
  4.12  subdivision 4, is amended to read: 
  4.13     Subd. 4.  [EXEMPTION OF PROPERTY.] Any real or personal 
  4.14  property acquired, owned, leased, controlled, used, or occupied 
  4.15  by the commission for any of the purposes of sections 473.551 to 
  4.16  473.599 is declared to be acquired, owned, leased, controlled, 
  4.17  used and occupied for public, governmental, and municipal 
  4.18  purposes, and shall be exempt from ad valorem taxation by the 
  4.19  state or any political subdivision of the state, provided that 
  4.20  such properties shall be subject to special assessments levied 
  4.21  by a political subdivision for a local improvement in amounts 
  4.22  proportionate to and not exceeding the special benefit received 
  4.23  by the properties from the improvement.  No possible use of any 
  4.24  such properties in any manner different from their use under 
  4.25  sections 473.551 to 473.599 at the time shall be considered in 
  4.26  determining the special benefit received by the properties.  All 
  4.27  assessments shall be subject to final confirmation by the 
  4.28  council, whose determination of the benefits shall be conclusive 
  4.29  upon the political subdivision levying the assessment.  
  4.30  Notwithstanding the provisions of section 272.01, subdivision 2, 
  4.31  or 273.19, real or personal property leased by the commission to 
  4.32  another person for uses related to the purposes of sections 
  4.33  473.551 to 473.599, including the operation of the metrodome, 
  4.34  baseball park, met center, and, if acquired by the commission, 
  4.35  the basketball and hockey arena shall be exempt from taxation 
  4.36  regardless of the length of the lease.  The provisions of this 
  5.1   subdivision, insofar as they require exemption or special 
  5.2   treatment, shall not apply to any real property comprising the 
  5.3   met center which is leased by the commission for residential, 
  5.4   business, or commercial development or other purposes different 
  5.5   from those contemplated in sections 473.551 to 473.599. 
  5.6      Sec. 12.  Minnesota Statutes 1996, section 473.556, 
  5.7   subdivision 5, is amended to read: 
  5.8      Subd. 5.  [FACILITY OPERATION.] The commission may equip, 
  5.9   improve, operate, manage, maintain, and control the 
  5.10  metrodome, baseball park, met center, basketball and hockey 
  5.11  arena and sports facilities constructed, remodeled, or acquired 
  5.12  under the provisions of sections 473.551 to 473.599. 
  5.13     Sec. 13.  Minnesota Statutes 1996, section 473.556, is 
  5.14  amended by adding a subdivision to read: 
  5.15     Subd. 18.  [PRIVATE CONTRIBUTIONS.] Notwithstanding the 
  5.16  requirements of subdivision 9, the commission may accept grants, 
  5.17  gifts, or loans from public or private sources to further its 
  5.18  public purposes with respect to the baseball park.  The 
  5.19  contributions may be used by the commission for any purpose 
  5.20  related to the baseball park under sections 473.5991 to 
  5.21  473.5995, including, but not limited to, payment of revenue 
  5.22  bonds or revenue anticipation certificates issued under section 
  5.23  473.5993, or reducing or eliminating any ownership, operations, 
  5.24  or other obligations or liabilities of the commission under 
  5.25  sections 473.5991 to 473.5995. 
  5.26     Sec. 14.  Minnesota Statutes 1996, section 473.556, is 
  5.27  amended by adding a subdivision to read: 
  5.28     Subd. 19.  [BASEBALL PARK REVENUE.] The commission may 
  5.29  spend baseball park revenue to pay any reasonable expenses 
  5.30  necessary to administer, operate, improve, or maintain the 
  5.31  baseball park or to pay debt service on bonds or other 
  5.32  obligations sold for purposes of the baseball park.  Baseball 
  5.33  park revenue must be segregated from other revenue of the 
  5.34  commission. 
  5.35     Sec. 15.  [473.5991] [BASEBALL PARK.] 
  5.36     Subdivision 1.  [ESSENTIAL CHARACTERISTICS.] The baseball 
  6.1   park must be designed for playing major league baseball and no 
  6.2   other major league spectator sport that uses a surface or 
  6.3   seating configuration different from major league baseball.  The 
  6.4   baseball park shall be designed to have a retractable roof, but 
  6.5   no roof shall be constructed unless the owner pays the 
  6.6   commission in advance for the cost of the roof.  The baseball 
  6.7   park may include parking or other transit facilities for 
  6.8   patrons, performers, and employees and may include other 
  6.9   amenities to enhance or make the use of the baseball park 
  6.10  convenient and predictably accessible to all.  
  6.11     Subd. 2.  [DESIGN.] The commission shall determine the 
  6.12  program elements of the baseball park, including, but not 
  6.13  limited to, capacity, suites, club seats, clubs, and amenities.  
  6.14  The commission shall also determine the baseball park design, 
  6.15  and the selection of the project construction team, including 
  6.16  the architect and general contractor. 
  6.17     Subd. 3.  [SITE OPTIONS AND DEADLINE.] Before January 1, 
  6.18  1998, the city of Minneapolis may demonstrate by resolution its 
  6.19  ability and commitment to make available a site that meets the 
  6.20  commission's criteria and is fully acceptable to the 
  6.21  commission.  The commission shall then designate the site in the 
  6.22  city of Minneapolis as the baseball park location.  If the city 
  6.23  of Minneapolis does not demonstrate that ability and commitment 
  6.24  before January 1, 1998, the commission shall design a process to 
  6.25  select a site within the metropolitan area and request site 
  6.26  proposals from any municipality, including from the city of 
  6.27  Minneapolis.  The process to select a site must include a 
  6.28  procedure to set minimum specifications for the site, including 
  6.29  the necessary or desirable appropriate economic development 
  6.30  possibilities on adjacent property.  The process must consider 
  6.31  the capture and use of incremental revenue paid to or enjoyed by 
  6.32  public entities, as a result of or in anticipation of the 
  6.33  baseball park, as revenue sources for funding the baseball park. 
  6.34     Subd. 4.  [RELATED INFRASTRUCTURE.] The commission shall 
  6.35  negotiate with the appropriate government entities, including 
  6.36  the city and county within which the baseball park is located, 
  7.1   and the metropolitan council for necessary or appropriate 
  7.2   infrastructure improvements to support the existence and 
  7.3   operation of the baseball park, the movement of patrons to and 
  7.4   from the baseball park, and their comfort, safety, and 
  7.5   convenience while in and around the baseball park. 
  7.6      Subd. 5.  [CONSTRUCTION METHODS.] The commission may 
  7.7   contract for construction materials, supplies, and equipment in 
  7.8   accordance with section 471.345, except that the commission may 
  7.9   employ persons, firms, or corporations to perform one or more or 
  7.10  all of the functions of architect, engineer, construction 
  7.11  manager, or contractor for both design and construction, with 
  7.12  respect to all or part of a project to build or remodel sports 
  7.13  facilities.  Contractors shall be selected through the process 
  7.14  of public bidding, under section 471.345, except that the 
  7.15  commission may narrow the listing of eligible bidders to those 
  7.16  the commission determines to possess sufficient expertise to 
  7.17  perform the intended functions and the commission may negotiate 
  7.18  with the three lowest responsible bidders to achieve the best 
  7.19  and final offer.  The commission may require a construction 
  7.20  manager to certify a construction price and completion date to 
  7.21  the commission.  The commission may require the posting of a 
  7.22  bond in an amount determined by the commission to cover any 
  7.23  costs that may be incurred over and above the certified price, 
  7.24  including, but not limited to, costs incurred by the commission 
  7.25  or loss of revenues resulting from incomplete construction on 
  7.26  the completion date and any other obligations the commission may 
  7.27  require the construction manager to bear.  The commission shall 
  7.28  secure surety bonds as required in section 574.26 securing 
  7.29  payment of just claims in connection with all public work 
  7.30  undertaken by it.  Persons entitled to the protection of the 
  7.31  bonds may enforce them as provided in sections 574.28 to 574.32 
  7.32  and are not entitled to a lien on any property of the commission 
  7.33  under sections 514.01 to 514.16. 
  7.34     Sec. 16.  [473.5992] [DETERMINATIONS BEFORE BONDS SOLD.] 
  7.35     Subdivision 1.  [WHEN.] (a) The commission must do what it 
  7.36  is required to do and determine that others have done what they 
  8.1   are required to do under this section before it authorizes the 
  8.2   sale of bonds under section 473.5993. 
  8.3      (b) If paragraph (a) is not complied with by March 31, 
  8.4   1998, the commission or the owner may require negotiations to 
  8.5   cease.  If the owner requires negotiations to cease under this 
  8.6   subdivision or subdivision 6, the owner shall pay all costs and 
  8.7   expenses of all deliberations of the commission incurred through 
  8.8   the date when negotiations cease. 
  8.9      Subd. 2.  [30-YEAR USE AGREEMENT.] (a) The commission must 
  8.10  execute agreements with the owner and the baseball team to use 
  8.11  the baseball park for all scheduled regular season and all 
  8.12  postseason division, league, and world series championship 
  8.13  play-off home games for no less than 30 years. 
  8.14     (b) The agreements shall afford to the commission, or to 
  8.15  another public entity as the commission deems appropriate, the 
  8.16  rights and remedies that are deemed necessary and appropriate to 
  8.17  provide reasonable assurances that the baseball team and the 
  8.18  owner will comply with the agreements throughout the 30-year 
  8.19  term.  The remedies must include liquidated damages in the 
  8.20  amount of $250,000,000, payable by the baseball team and the 
  8.21  owner jointly and severally to the commission in the event the 
  8.22  team relocates to another ballpark within the 30-year period, 
  8.23  less 1/30 of that amount for each year the team has met its 
  8.24  obligation to play in the baseball park.  The remedies may 
  8.25  include specific performance and injunctive relief and any other 
  8.26  equitable remedies and any additional remedies or ownership, 
  8.27  voting, or other security arrangements the commission reasonably 
  8.28  determines to be effective in ensuring the baseball team will 
  8.29  play the required games in the baseball park throughout the 
  8.30  30-year term.  In the enforcement of the agreements, the 
  8.31  commission may elect from among the rights and remedies provided 
  8.32  for in this paragraph, and that election does not extinguish the 
  8.33  commission's other rights and remedies except as may otherwise 
  8.34  be provided by law.  It is the intent of the legislature that a 
  8.35  material breach of an agreement between the commission and other 
  8.36  public bodies and professional athletic teams that commit to the 
  9.1   long-term playing of major league games at public facilities is 
  9.2   deemed to cause irreparable harm for which no adequate remedy at 
  9.3   law is available and that the grant of equitable relief to 
  9.4   remedy the breach is in the public interest and shall be 
  9.5   liberally so construed.  
  9.6      (c) The agreements shall provide for the annual payment of 
  9.7   rent by the baseball team for the use and enjoyment of the 
  9.8   baseball park, and for the allocation, between the commission 
  9.9   and the baseball team of all other revenues from whatever source 
  9.10  attributable to the baseball park. 
  9.11     (d) The agreements must anticipate the possible sale and 
  9.12  purchase of shares or other interests in the baseball team to 
  9.13  the community, and provide that the owner use its good faith 
  9.14  efforts to cause major league baseball to approve community 
  9.15  ownership provisions in franchises.  The commission shall report 
  9.16  to the legislature, no later than January 1, 1999, on the ways 
  9.17  and means appropriate and available to effectuate some form of 
  9.18  community ownership of shares or other interests in the baseball 
  9.19  team. 
  9.20     Subd. 3.  [OWNER'S ABILITY TO COMPLY.] The baseball team 
  9.21  and the owner must provide information sufficient to satisfy the 
  9.22  commission of the baseball team's and the owner's ability to 
  9.23  comply with the terms of the 30-year agreements. 
  9.24     Subd. 4.  [OWNER'S DONATION.] The owner must make an 
  9.25  enforceable pledge, in a form satisfactory to the commission, to 
  9.26  make a donation to the commission of cash or marketable 
  9.27  securities in an amount not less than $111,000,000 to help pay 
  9.28  the costs of constructing the baseball park, to be paid on a 
  9.29  date satisfactory to the commission.  If the owner does not pay 
  9.30  for the cost of constructing a retractable roof, the owner's 
  9.31  contribution shall be reduced accordingly. 
  9.32     Subd. 5.  [CONSTRUCTION COST OVERRUNS.] The commission, the 
  9.33  owner, and the baseball team must execute agreements to provide 
  9.34  that the owner and the baseball team are responsible for the 
  9.35  payment of any and all costs incurred in the construction of the 
  9.36  baseball park that exceed the guaranteed maximum price. 
 10.1      Subd. 6.  [PRIVATE SECTOR SUPPORT.] (a) Private sector 
 10.2   support for construction of the baseball park must be 
 10.3   demonstrated by the following:  
 10.4      (1) at least 80 percent of the private suites provided for 
 10.5   in the proposal for the baseball park have been sold or leased 
 10.6   for at least ten years; 
 10.7      (2) at least 80 percent of the club seats provided for in 
 10.8   the proposal for the baseball park are sold or leased for the 
 10.9   opening season; 
 10.10     (3) at least $25,000,000 in qualified pledges to purchase 
 10.11  permanent seat licenses are made; and 
 10.12     (4) pledges to purchase 22,000 season tickets for the 
 10.13  opening season are made. 
 10.14     (b) If the conditions in this subdivision are not met by 
 10.15  March 31, 1998, either the owner or the commission may require 
 10.16  negotiations for the baseball park to cease. 
 10.17     Subd. 7.  [PRIVATE SECTOR CAPITAL PLAN.] The owner must 
 10.18  develop a private sector capital plan approved by the commission 
 10.19  that includes the sale or lease of some or all promotional 
 10.20  rights in the baseball park. 
 10.21     Subd. 8.  [MAJOR LEAGUE BASEBALL CONTRIBUTION.] The 
 10.22  commission and the owner must enter into an agreement that 
 10.23  provides that the owner will use its best efforts to obtain 
 10.24  construction money for the baseball park from major league 
 10.25  baseball. 
 10.26     Subd. 9.  [COMMISSION TITLE TO PROPERTY.] The commission 
 10.27  must acquire, contract to acquire, or begin eminent domain 
 10.28  proceedings to acquire title to all real property including all 
 10.29  easements and other appurtenances needed for the construction 
 10.30  and operation of the baseball park and must receive a grant of 
 10.31  money or enter into agreements sufficient to ensure the receipt 
 10.32  of money, at the time and in the amount required, to make any 
 10.33  payment upon which the commission's acquisition of title and 
 10.34  possession of the real property is conditioned. 
 10.35     Subd. 10.  [SUFFICIENT MONEY FOR CLEARING PROPERTY.] The 
 10.36  commission must receive a grant of money or enter into 
 11.1   agreements sufficient in the judgment of the commission to 
 11.2   ensure the receipt of money, at the time and in the amount 
 11.3   required, to pay all costs of clearing the real property needed 
 11.4   for the construction and operation of the baseball park of all 
 11.5   improvements thereon which would interfere with the construction 
 11.6   or operation of the baseball park.  
 11.7      Subd. 11.  [GUARANTEED MAXIMUM PRICE.] The commission must 
 11.8   execute agreements that provide for the construction of the 
 11.9   baseball park for a guaranteed maximum price and substantial 
 11.10  completion date of April 1, 2001, and that requires performance 
 11.11  bonds in an amount at least equal to 100 percent of the 
 11.12  guaranteed maximum price to cover any costs incurred over and 
 11.13  above the guaranteed maximum price, including, but not limited 
 11.14  to, costs incurred by the commission or loss of revenues 
 11.15  resulting from incomplete construction on the substantial 
 11.16  completion date. 
 11.17     Subd. 12.  [NO STRIKES OR LOCKOUTS.] The commission must 
 11.18  execute agreements with appropriate labor organizations and 
 11.19  construction contractors that provide that no labor strikes or 
 11.20  management lockouts will delay construction. 
 11.21     Subd. 13.  [BASEBALL TEAM TO OPERATE BASEBALL PARK.] (a) 
 11.22  The commission must execute agreements with the owner and the 
 11.23  baseball team that provide for operation and maintenance of the 
 11.24  baseball park at the expense of the owner and the team. 
 11.25     (b) The agreements may provide that: 
 11.26     (1) the baseball team will manage, maintain, operate, and 
 11.27  repair the baseball park and may contract with one or more 
 11.28  entities to operate part or all of the baseball park all subject 
 11.29  to the approval of the commission; and 
 11.30     (2) the baseball team shall contract with one or more 
 11.31  concessionaires to provide food and beverages for the baseball 
 11.32  park subject to the approval of the commission. 
 11.33     (c) The agreements must provide criteria for maintenance 
 11.34  and operation of the baseball park and remedies as referred to 
 11.35  in subdivision 2, paragraphs (b) and (c), that may be exercised 
 11.36  by the commission to ensure that the criteria are met.  The 
 12.1   agreements must also require that the baseball team and its 
 12.2   affiliates and subsidiaries that are involved in the maintenance 
 12.3   and operation provide annually audited financial statements to 
 12.4   the commission. 
 12.5      Subd. 14.  [OPERATION OF BASEBALL TEAM.] The commission and 
 12.6   the owner must enter into an agreement that obligates the owner 
 12.7   to operate the baseball team in good faith so as to achieve 
 12.8   profitable operation.  
 12.9      Subd. 15.  [COMMISSION PARTICIPATION IN BASEBALL TEAM 
 12.10  CONTRACTS.] The commission and the owner must execute an 
 12.11  agreement that provides that the commission may participate in 
 12.12  the negotiations of any operations, concessions, naming rights, 
 12.13  advertising, or any other contracts or agreements pertinent to 
 12.14  the operation and maintenance of the baseball park between the 
 12.15  owner and any other third party. 
 12.16     Subd. 16.  [CAPITAL REPAIRS AND IMPROVEMENTS.] The 
 12.17  commission must establish a baseball park capital repair and 
 12.18  improvement account and enter into an agreement with the owner 
 12.19  and the baseball team that provides that the owner and the 
 12.20  baseball team must pay at least $700,000 a year into the account 
 12.21  to be used by the commission to make any capital repairs, 
 12.22  improvements, enhancements, and betterments necessary to 
 12.23  maintain the baseball park.  The commission is not obligated to 
 12.24  spend money for these purposes in excess of the balance in the 
 12.25  capital repair and improvement account. 
 12.26     Subd. 17.  [UNIVERSITY OF MINNESOTA.] The commission must 
 12.27  consult with and consider the needs of the University of 
 12.28  Minnesota for baseball facilities for the next 20 years. 
 12.29     Subd. 18.  [REVENUES TO BE SUFFICIENT.] The anticipated 
 12.30  baseball park revenue must be sufficient to pay when due all 
 12.31  debt service on the revenue bonds and all administrative 
 12.32  expenses of the commission.  The anticipated revenue to the 
 12.33  baseball team must be sufficient to pay all operating and 
 12.34  maintenance expenses of the baseball park. 
 12.35     Subd. 19.  [LEAGUE, MAJOR LEAGUE BASEBALL GUARANTY.] The 
 12.36  commission must execute an agreement with the major league of 
 13.1   which the baseball team is a member and with major league 
 13.2   baseball that guarantees the continuance of the franchise in the 
 13.3   metropolitan area for the period of the agreement referred to in 
 13.4   subdivision 2. 
 13.5      Sec. 17.  [INTERSTATE COMPETITION.] 
 13.6      The commission may cooperate and contract with other 
 13.7   political entities in the United States, to petition or form an 
 13.8   entity to petition the United States Congress to enact 
 13.9   legislation to prevent injurious or uneconomic practices of 
 13.10  governmental entities in seeking sports, exposition, and 
 13.11  entertainment franchises and facilities.  The attorney general 
 13.12  may participate in appropriate litigation to prevent the 
 13.13  injurious or uneconomic practices. 
 13.14     Sec. 18.  [473.5993] [DEBT OBLIGATIONS FOR BASEBALL PARK.] 
 13.15     Subdivision 1.  [PURPOSES.] The commission may by 
 13.16  resolution authorize the sale and issuance of its revenue bonds 
 13.17  for the following purposes after complying with or determining 
 13.18  that section 473.5992, paragraph (a), has been or will be 
 13.19  complied with in material respects: 
 13.20     (1) to acquire and better facilities for a baseball park, 
 13.21  including, but not limited to, site assembly, preparation, and 
 13.22  construction; 
 13.23     (2) to reimburse the commission for its costs in complying 
 13.24  with and making the determinations required by section 473.5992, 
 13.25  whenever incurred; 
 13.26     (3) to pay issuance costs and costs of bond insurance or 
 13.27  other credit enhancement for the bonds and to establish 
 13.28  necessary reserves for operating and debt service costs; 
 13.29     (4) to refund bonds issued under this section; and 
 13.30     (5) to fund judgments entered by any court against the 
 13.31  commission in matters relating to the commission's functions 
 13.32  related to the baseball park. 
 13.33     Subd. 2.  [AMOUNT.] The principal amount of the bonds 
 13.34  issued under subdivision 1, clause (1), exclusive of any 
 13.35  original issue discount, must not exceed $250,000,000.  That 
 13.36  amount shall be reduced by the cost of constructing a 
 14.1   retractable roof if the owner does not pay the cost of 
 14.2   constructing a roof. 
 14.3      Subd. 3.  [TAXABILITY.] The bonds may be issued as 
 14.4   tax-exempt revenue bonds or as taxable revenue bonds in the 
 14.5   proportions that the commission may determine. 
 14.6      Subd. 4.  [PROCEDURE.] The bonds shall be sold, issued, and 
 14.7   secured in the manner provided in chapter 475 for bonds payable 
 14.8   solely from revenues and the commission has the same powers and 
 14.9   duties as a municipality and its governing body in issuing bonds 
 14.10  under that chapter.  The bonds may be sold at any price and at 
 14.11  public or private sale as determined by the commission.  An 
 14.12  election is not required.  
 14.13     Subd. 5.  [NOT A GENERAL OR MORAL OBLIGATION.] The bonds 
 14.14  are payable solely from baseball park revenues.  The bonds are 
 14.15  not a general or moral obligation or debt of the commission, any 
 14.16  other political subdivision of the state, or the state, and must 
 14.17  not be included in the net debt of any city, county, or other 
 14.18  subdivision of the state for the purpose of any net debt 
 14.19  limitation.  The state does not assume any obligation or 
 14.20  liability for bonds sold or issued under this section.  
 14.21     Subd. 6.  [BROKERAGE FIRM AGREEMENT.] Before issuing debt 
 14.22  under this section, the commission must enter into an agreement 
 14.23  with the brokerage firm to be used in connection with the sale 
 14.24  and issuance of the bonds or revenue anticipation certificates 
 14.25  under this section, guaranteeing that fees and charges payable 
 14.26  to the brokerage firm under the agreement, including any 
 14.27  underwriting discounts, do not exceed fees and charges 
 14.28  customarily payable in connection with the sale and issuance of 
 14.29  bonds or revenue anticipation certificates. 
 14.30     Subd. 7.  [SECURITY.] Baseball park revenues must be and 
 14.31  remain pledged and appropriated, for the benefit of and 
 14.32  enforceable by the bondholders or their trustee, for the payment 
 14.33  of all necessary and reasonable expenses of the operation, 
 14.34  administration, maintenance, and debt service of the baseball 
 14.35  park until all bonds and certificates issued under this section 
 14.36  are fully paid or discharged in accordance with law.  Bonds 
 15.1   issued under this section may be secured by a bond resolution, 
 15.2   or by a trust indenture entered into by the commission with a 
 15.3   corporate trustee within or outside the state, which must define 
 15.4   the baseball park revenues pledged for the payment and security 
 15.5   of the bonds.  The pledge is a valid charge on the baseball park 
 15.6   revenues from the date when bonds are first issued or secured 
 15.7   under the resolution or indenture and secure the payment of 
 15.8   principal and interest and redemption premiums when due and the 
 15.9   maintenance at all times of a reserve securing the payments.  No 
 15.10  mortgage of or security interest in any tangible real or 
 15.11  personal property is granted to the bondholders or the trustee, 
 15.12  but they have a valid security interest in all baseball park 
 15.13  revenues of the commission as against the claims of all other 
 15.14  persons in tort, contract, or otherwise, irrespective of whether 
 15.15  the parties have notice of the claims, and without possession or 
 15.16  filing as provided in the uniform commercial code or any other 
 15.17  law.  In the bond resolution or trust indenture the commission 
 15.18  may make any covenants that are determined by the commission to 
 15.19  be usual and reasonably necessary for the protection of the 
 15.20  bondholders.  No pledge, mortgage, covenant, or agreement 
 15.21  securing bonds may be impaired, revoked, or amended by law or by 
 15.22  action of the commission except in accordance with the terms of 
 15.23  the resolution or indenture under which the bonds are issued, 
 15.24  until the obligations of the commission under the resolution or 
 15.25  indenture are fully discharged. 
 15.26     Subd. 8.  [REVENUE ANTICIPATION CERTIFICATES.] In any year, 
 15.27  upon final adoption by the commission of an annual budget of the 
 15.28  commission, including the baseball park revenues, and in 
 15.29  anticipation of the baseball park revenues, but subject to any 
 15.30  limitation or prohibition in a bond resolution or indenture, the 
 15.31  commission may authorize the issuance, negotiation, and sale, in 
 15.32  the form and manner and upon the terms it may determine, of 
 15.33  revenue anticipation certificates.  The principal amount of the 
 15.34  certificates outstanding may at no time exceed 25 percent of the 
 15.35  total amount of the revenues anticipated.  The certificates must 
 15.36  mature not later than three months after the close of the budget 
 16.1   year.  So much of the anticipated baseball park revenues as may 
 16.2   be needed for the payment of the certificates and interest 
 16.3   thereon shall be paid into a special debt service fund 
 16.4   established for the certificates in the commission's financial 
 16.5   records.  If for any reason the anticipated revenues are 
 16.6   insufficient, the certificates and interest must be paid from 
 16.7   the first revenues received, subject to any limitation or 
 16.8   prohibition in a bond resolution or indenture.  The proceeds of 
 16.9   the certificates may be used for any purpose for which the 
 16.10  anticipated revenues may be used or for any purpose for which 
 16.11  bond proceeds under subdivision 1 may be used. 
 16.12     Subd. 9.  [VALIDITY OF DEBT ISSUED.] The validity of any 
 16.13  bonds issued under this section and the obligations of the 
 16.14  commission related to them must not be conditioned upon or 
 16.15  impaired by the commission's determinations made under section 
 16.16  473.5992.  For the purposes of issuing bonds, the determinations 
 16.17  made by the commission are conclusive, and the commission is 
 16.18  obligated for the security and payment of the bonds, but only 
 16.19  from the sources pledged thereto, irrespective of determinations 
 16.20  that may be erroneous, inaccurate, or otherwise mistaken. 
 16.21     Sec. 19.  [473.5994] [CITY POWERS.] 
 16.22     Notwithstanding any law, charter, or ordinance provision to 
 16.23  the contrary, the city may acquire or condemn land, assemble and 
 16.24  prepare a site, make infrastructure improvements, or use its 
 16.25  resources in other ways it may devise to finance sports 
 16.26  facilities and to further the purposes of sections 473.551 to 
 16.27  473.5994. 
 16.28     Sec. 20.  [INSTRUCTION TO REVISOR.] 
 16.29     In the next edition of Minnesota Statutes, the revisor of 
 16.30  statutes shall change references to Minnesota Statutes, sections 
 16.31  473.551 to 473.599 to read "473.551 to 473.5994." 
 16.32     Sec. 21.  [APPLICATION.] 
 16.33     This article applies in the counties of Anoka, Carver, 
 16.34  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 16.35     Sec. 22.  [EFFECTIVE DATE.] 
 16.36     This article is effective the day following final enactment.
 17.1                              ARTICLE 2
 17.2                     BASEBALL PARK SPECIAL TAXES
 17.3      Section 1.  Minnesota Statutes 1996, section 297A.135, is 
 17.4   amended by adding a subdivision to read: 
 17.5      Subd. 1a.  [METROPOLITAN AREA SURTAX.] In addition to the 
 17.6   tax imposed under subdivision 1, a surtax of $1 a day is imposed 
 17.7   on each rental or lease transaction subject to the tax under 
 17.8   subdivision 1 that occurs within the metropolitan area defined 
 17.9   in section 473.121, subdivision 2. 
 17.10     Sec. 2.  Minnesota Statutes 1996, section 297A.135, 
 17.11  subdivision 2, is amended to read: 
 17.12     Subd. 2.  [SALES AND USE TAX.] The tax taxes imposed in 
 17.13  subdivision 1 is under subdivisions 1 and 1a are not included in 
 17.14  the sales price for purposes of determining the sales and use 
 17.15  tax imposed in this chapter or any sales and use tax imposed on 
 17.16  the transaction under a special law. 
 17.17     Sec. 3.  Minnesota Statutes 1996, section 297A.135, 
 17.18  subdivision 3, is amended to read: 
 17.19     Subd. 3.  [ADMINISTRATION.] The tax taxes imposed in 
 17.20  subdivision 1 under subdivisions 1 and 1a must be reported and 
 17.21  paid to the commissioner of revenue with the taxes imposed in 
 17.22  this chapter.  It is They are subject to the same interest, 
 17.23  penalty, and other provisions provided for sales and use taxes 
 17.24  under chapter 289A and this chapter.  The commissioner has the 
 17.25  same powers to assess and collect the tax taxes that are given 
 17.26  the commissioner in chapters 270 and 289A and this chapter to 
 17.27  assess and collect sales and use tax. 
 17.28     Sec. 4.  Minnesota Statutes 1996, section 297A.135, 
 17.29  subdivision 4, is amended to read: 
 17.30     Subd. 4.  [EXEMPTION.] The tax taxes imposed by this 
 17.31  section does do not apply to a lease or rental if the vehicle is 
 17.32  to be used by the lessee to provide a licensed taxi service. 
 17.33     Sec. 5.  Minnesota Statutes 1996, section 473F.08, is 
 17.34  amended by adding a subdivision to read: 
 17.35     Subd. 3c.  [BASEBALL PARK TAX LEVY.] By August 1 of each 
 17.36  year, the executive director of the metropolitan sports 
 18.1   facilities commission shall certify to the Hennepin county 
 18.2   auditor a levy in the amount of $7,300,000, plus any additional 
 18.3   amount that may be necessary, together with other revenue 
 18.4   available to the commission, to pay when due and in accordance 
 18.5   with the bond resolution or trust indenture all debt service on 
 18.6   bonds and other obligations issued under section 473.5993 for 
 18.7   the baseball park.  The Hennepin county auditor shall add this 
 18.8   amount to Hennepin county's areawide levy when certifying the 
 18.9   levy to the administrative auditor under subdivision 5. 
 18.10     Sec. 6.  Minnesota Statutes 1996, section 473F.08, 
 18.11  subdivision 5, is amended to read: 
 18.12     Subd. 5.  [AREAWIDE TAX RATE.] On or before August 25 of 
 18.13  each year, the county auditor shall certify to the 
 18.14  administrative auditor that portion of the levy of each 
 18.15  governmental unit determined under subdivisions 3, clause (a), 
 18.16  3a, and 3b, and 3c.  The administrative auditor shall then 
 18.17  determine the areawide tax rate sufficient to yield an amount 
 18.18  equal to the sum of such levies from the areawide net tax 
 18.19  capacity.  On or before September 1 of each year, the 
 18.20  administrative auditor shall certify the areawide tax rate to 
 18.21  each of the county auditors. 
 18.22     Sec. 7.  [473I.01] [DEFINITIONS.] 
 18.23     Subdivision 1.  [APPLICATION.] The definitions in sections 
 18.24  473.121, 473.551, and this section apply to this chapter. 
 18.25     Subd. 2.  [BASEBALL PARK.] "Baseball park" means the 
 18.26  baseball park described in section 473.5991. 
 18.27     Sec. 8.  [473I.02] [BASEBALL PARK ACCOUNT.] 
 18.28     The baseball park account is established in the special 
 18.29  revenue fund in the state treasury.  All money credited to the 
 18.30  baseball park account is appropriated to the commissioner of 
 18.31  revenue for payment to the commission for purposes of the 
 18.32  baseball park.  The commission shall use all receipts from the 
 18.33  baseball park account to administer, operate, and maintain the 
 18.34  baseball park and to pay debt service on bonds or other 
 18.35  obligations sold for purposes of the baseball park. 
 18.36     Sec. 9.  [473I.03] [BASEBALL PARK DISTRICT; TAXES AND 
 19.1   FEES.] 
 19.2      Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
 19.3   finds that the construction of the baseball park is a public 
 19.4   improvement that has regional and statewide economic benefits.  
 19.5   In addition, the baseball park will specifically benefit the 
 19.6   class of persons operating retail and service businesses within 
 19.7   the surrounding area.  The legislature finds that the 
 19.8   designation by the commission, in mutual agreement with the 
 19.9   city, of the area surrounding the baseball park as a baseball 
 19.10  park district and the imposition of taxes or fees within the 
 19.11  district will more equitably apportion the burdens of funding 
 19.12  the baseball park among the classes of persons benefiting from 
 19.13  the baseball park. 
 19.14     Subd. 2.  [SPECIAL TAXES.] Notwithstanding section 
 19.15  477A.016, or any other limitation of law or charter, under an 
 19.16  agreement with the commission, the city may by resolution impose 
 19.17  taxes or fees on liquor or entertainment, or both, within the 
 19.18  downtown taxing area defined in Laws 1986, chapter 396, section 
 19.19  1, as amended.  The resolution must provide for dedication of 
 19.20  the taxes or fees, after payment of collection and 
 19.21  administrative expenses and refunds, to payment of principal and 
 19.22  interest on bonds issued under section 473.5993, if any, or for 
 19.23  general revenue for the purposes of the commission, and for the 
 19.24  transfer of the taxes collected to the commission for those 
 19.25  purposes. 
 19.26     Sec. 10.  [473I.04] [BASEBALL PARK BOND BACKUP TAX.] 
 19.27     In order to secure the revenue bonds issued under section 
 19.28  473.5993, the commission may levy a tax on the gross receipts 
 19.29  from the furnishing for consideration of lodging for a period of 
 19.30  less than 30 days at a hotel, motel, rooming house, tourist 
 19.31  court, or trailer camp located within the metropolitan area.  
 19.32  The tax may be imposed notwithstanding the limitations of Laws 
 19.33  1986, chapter 396, section 5, clause (2).  The tax is a sales 
 19.34  tax, supplemental to the general sales tax imposed in chapter 
 19.35  297A for the purposes and in accordance with the requirements 
 19.36  specified in sections 473.551 to 473.5994.  The tax or taxes may 
 20.1   be imposed at whatever rate or rates, up to three percent, that 
 20.2   may be necessary to produce revenues that are determined by the 
 20.3   commission from year to year to be required, together with other 
 20.4   revenue available to the commission, to pay when due all debt 
 20.5   service on bonds and revenue anticipation certificates issued 
 20.6   under section 473.5993, and all necessary expenses of operation, 
 20.7   administration, and maintenance of the baseball park.  The 
 20.8   commission may provide for the suspension, reimposition, 
 20.9   reduction, or increase in tax collections upon its determination 
 20.10  that the actions are appropriate or necessary for the purposes 
 20.11  for which the tax is imposed, provided that the balance in the 
 20.12  baseball park debt service fund or funds, including any reserve 
 20.13  for debt service, shall be maintained at least at an amount 
 20.14  sufficient to pay the principal and interest on bonds that will 
 20.15  become due within the next succeeding one-year period and, 
 20.16  except as otherwise provided by the agreement, shall not be 
 20.17  maintained at an amount greater than that required to pay 
 20.18  principal and interest on bonds that will become due within the 
 20.19  next succeeding two-year period.  The tax shall be reported and 
 20.20  paid to the commissioner of revenue with and as part of the 
 20.21  state sales and use taxes, and shall be subject to the same 
 20.22  penalties, interest, and enforcement provisions.  The 
 20.23  collections of the tax, less refunds and a proportionate share 
 20.24  of the costs of collection, are appropriated to the commissioner 
 20.25  of revenue, who must remit them at least quarterly to the 
 20.26  commission.  The commissioner of revenue shall deduct from the 
 20.27  proceeds remitted to the commission an amount that equals the 
 20.28  direct department costs necessary to administer, audit, and 
 20.29  collect this tax.  The amount deducted shall be credited to the 
 20.30  general fund of the state.  The proceeds remitted with respect 
 20.31  to the baseball park shall be placed, together with baseball 
 20.32  park revenue available to the commission, into the debt service 
 20.33  fund or reserve or special funds, established under section 
 20.34  473.5993, and any funds established to secure payment of 
 20.35  operating deficits of the commission arising from its ownership 
 20.36  and operation of the baseball park.  The proceeds may be used 
 21.1   for payment of debt service on bonds and revenue anticipation 
 21.2   certificates issued under section 473.5993, and expenses of 
 21.3   operation, administration, and maintenance of the baseball park. 
 21.4      Sec. 11.  [473I.05] [BASEBALL PARK INCOME SURTAX.] 
 21.5      Subdivision 1.  [TAX IMPOSED.] The commission may by 
 21.6   resolution impose a tax on the taxable net income of a qualified 
 21.7   employee of a sports organization that uses the baseball park.  
 21.8   The tax equals four percent of the amount of taxable 
 21.9   compensation over $100,000 for the taxable year. 
 21.10     Subd. 2.  [DEFINITIONS.] (a) The definitions in chapter 290 
 21.11  and in this subdivision apply to this section. 
 21.12     (b) A "qualified employee" means an employee who is a 
 21.13  salaried athletic team employee and who derives wages, salaries, 
 21.14  or other compensation of at least $100,000 for the performance 
 21.15  of personal services from a sports organization for the taxable 
 21.16  year. 
 21.17     (c) A "sports organization" means any organization that 
 21.18  operates a major league professional sports franchise.  A sports 
 21.19  organization includes a visiting team regardless of whether it 
 21.20  has a direct agreement with the owner or operator of the 
 21.21  baseball park. 
 21.22     (d) "Taxable compensation" means compensation earned for 
 21.23  services performed in the metropolitan area as an employee of a 
 21.24  sports organization.  The provisions of section 290.17 apply to 
 21.25  determine the proportion of compensation that is earned for 
 21.26  services performed in the metropolitan area, except that the 
 21.27  "metropolitan area" is substituted for "Minnesota" in applying 
 21.28  section 290.17. 
 21.29     Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 21.30  section must be collected in the manner provided for individual 
 21.31  income taxes imposed under chapter 290 and in accordance with an 
 21.32  agreement between the commission and the commissioner of 
 21.33  revenue.  The revenue from the tax must be deposited in the 
 21.34  baseball park account in the special revenue fund. 
 21.35     Sec. 12.  [473I.06] [PARKING TAX.] 
 21.36     Subdivision 1.  [TAX IMPOSED.] The commission may by 
 22.1   resolution impose a parking tax of not less than $1 per vehicle 
 22.2   per event at the baseball park.  The city shall collect the tax 
 22.3   on behalf of the commission in accordance with an agreement with 
 22.4   the commission. 
 22.5      Subd. 2.  [AREA OF APPLICATION.] The tax applies to parking 
 22.6   in the baseball park district designated under section 473I.03 
 22.7   and in any additional area providing event parking, as mutually 
 22.8   agreed by the city and commission. 
 22.9      Subd. 3.  [TERMS SET BY AGREEMENT.] The commission and city 
 22.10  shall mutually agree upon the terms and provisions of the tax, 
 22.11  including: 
 22.12     (1) the definition of event parking; 
 22.13     (2) any additional area in which the tax applies; 
 22.14     (3) procedures and times for payment of the tax; 
 22.15     (4) procedures and times for remitting proceeds to the 
 22.16  state; 
 22.17     (5) penalty and interest provisions; 
 22.18     (6) the method of determining the cost of collection; and 
 22.19     (7) other provisions with a material effect upon revenues 
 22.20  from the tax. 
 22.21     Subd. 4.  [DISPOSITION OF PROCEEDS.] The city must pay the 
 22.22  proceeds of the tax, including interest and penalties, less the 
 22.23  reasonable cost of collection, to the commission for the 
 22.24  purposes of this chapter. 
 22.25     Sec. 13.  [473I.07] [ADMISSION TAX; TICKET SURCHARGE.] 
 22.26     The commission may by resolution impose and maintain an 
 22.27  admission tax or ticket surcharge, or both, upon the granting, 
 22.28  issuance, sale, or distribution, by any private or public 
 22.29  person, association, or corporation, of the privilege of 
 22.30  admission to activities at the baseball park.  No other tax, 
 22.31  surcharge, or governmental imposition, except the taxes imposed 
 22.32  by chapter 297A, may be levied by any other unit of government 
 22.33  upon that sale or distribution.  If the commission imposes a 
 22.34  ticket surcharge, it must be at least $1 per ticket for the 
 22.35  seats affected.  The commission and the owner may by mutual 
 22.36  agreement exempt sections of the baseball park from the ticket 
 23.1   surcharge.  The admission tax or ticket surcharge must be stated 
 23.2   and charged separately from the sales price so far as 
 23.3   practicable and must be collected by the grantor, issuer, 
 23.4   seller, or distributor from the person admitted and is a debt 
 23.5   from that person to the grantor, issuer, seller, or distributor, 
 23.6   and the tax required to be collected is a debt owed by the 
 23.7   grantor, issuer, seller, or distributor to the commission.  The 
 23.8   debt is recoverable at law in the same manner as other debts.  
 23.9   Every person who grants, issues, sells, or distributes tickets 
 23.10  for the admissions may be required, as provided in resolutions 
 23.11  of the commission to secure a permit, to file returns, to 
 23.12  deposit security for the payment of the tax, and to pay 
 23.13  penalties for nonpayment and interest on late payments, that are 
 23.14  considered necessary or expedient to ensure the prompt and 
 23.15  uniform collection of the tax.  Receipts from the admission tax 
 23.16  must be used for purposes of the baseball park.  
 23.17     Sec. 14.  [473I.08] [SPORTS FACILITIES SALES TAX.] 
 23.18     Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
 23.19  chapter 297A and in this subdivision apply to this section. 
 23.20     (b) "Sports facilities sale" means any transaction, 
 23.21  including a transfer of tangible personal property or provision 
 23.22  of taxable services, that occurs on the premises of the 
 23.23  metrodome or baseball park.  This includes, but is not limited 
 23.24  to, concession sales and the rental of private suites and club 
 23.25  seats but excludes purchases by the owner, operator, or a tenant 
 23.26  of the metrodome or baseball park. 
 23.27     Subd. 2.  [TAX IMPOSED.] The commission may by resolution 
 23.28  impose a tax on sports facilities sales at the rate of nine 
 23.29  percent.  This tax is in lieu of all other taxes levied by any 
 23.30  unit of government on these sales, including the tax under 
 23.31  section 297A.02, subdivision 1. 
 23.32     Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 23.33  section must be collected in the manner provided for taxes 
 23.34  imposed under chapter 297A and in accordance with an agreement 
 23.35  between the commission and the commissioner of revenue.  All 
 23.36  revenues, including interest and penalties, derived from the tax 
 24.1   imposed on sports facilities sales must be deposited in the 
 24.2   state treasury and credited to the baseball park account in the 
 24.3   special revenue fund. 
 24.4      Sec. 15.  [473I.09] [SPORTS MEMORABILIA TAX.] 
 24.5      The commission by resolution may impose a tax on each sale 
 24.6   at wholesale of sports memorabilia in the metropolitan area.  
 24.7   The rate of the tax is ten percent of the gross earnings from 
 24.8   the sale. 
 24.9      Sec. 16.  [473I.10] [DEFINITIONS.] 
 24.10     Subdivision 1.  [TERMS.] For purposes of sections 473I.09 
 24.11  to 473I.16, the following terms have the meanings given them. 
 24.12     Subd. 2.  [BUYER.] "Buyer" means any person that purchases 
 24.13  sports memorabilia at wholesale in the metropolitan area. 
 24.14     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 24.15  commissioner of revenue. 
 24.16     Subd. 4.  [SALE.] "Sale" means a transfer of title or 
 24.17  possession of tangible personal property, whether absolutely or 
 24.18  conditionally. 
 24.19     Subd. 5.  [SPORTS MEMORABILIA OR SPORTS LICENSED GOODS.] 
 24.20  (a) "Sports memorabilia" or "sports licensed goods" means items 
 24.21  available for sale to the public that relate to professional 
 24.22  sports, such as: 
 24.23     (1) one-of-a-kind items related to professional sports 
 24.24  figures, teams, or events; 
 24.25     (2) professional sports trading cards; 
 24.26     (3) professional sports photographs; 
 24.27     (4) league and individual athlete licensed items; 
 24.28     (5) professional sporting event licensed items; and 
 24.29     (6) similar items. 
 24.30     (b) It does not include items licensed by: 
 24.31     (1) a sports regulating authority for the purpose of 
 24.32  proving the item meets the standards of the sport; 
 24.33     (2) an elementary, high school, college, or university or 
 24.34  an association, league, or other organization operated by, 
 24.35  organized by, comprised of those entities, or regulating 
 24.36  collegiate or high school baseball. 
 25.1      (c) It does not include any item of clothing. 
 25.2      Subd. 6.  [WHOLESALE OR SALE AT WHOLESALE.] "Wholesale" or 
 25.3   "sale at wholesale" means a sale to a retailer, as defined in 
 25.4   section 297A.01, subdivision 10, for the purpose of reselling 
 25.5   the property to a third party. 
 25.6      Subd. 7.  [WHOLESALER.] "Wholesaler" means any person 
 25.7   making wholesale sales of sports memorabilia to purchasers in 
 25.8   the metropolitan area. 
 25.9      Sec. 17.  [473I.11] [COLLECTION.] 
 25.10     Subdivision 1.  [PAYMENT AND COLLECTION OBLIGATION.] The 
 25.11  buyer must pay the tax to the wholesaler and each wholesaler 
 25.12  must collect from the buyer the full amount of the tax payable 
 25.13  for each taxable sale, unless the state or federal constitution 
 25.14  prohibits the wholesaler from collecting the tax from the buyer. 
 25.15     Subd. 2.  [TAX SEPARATELY STATED.] The tax must be 
 25.16  separately stated from the selling price in any sales invoice or 
 25.17  any instrument of sale.  Failure to separately state the tax 
 25.18  creates a conclusive presumption that the tax has not been 
 25.19  collected. 
 25.20     Subd. 3.  [TAX IS IN ADDITION TO OTHERS.] The tax under 
 25.21  sections 473I.09 to 473I.16 is in addition to any other tax that 
 25.22  applies under the laws of this state. 
 25.23     Sec. 18.  [473I.12] [COMPLEMENTARY USE TAX.] 
 25.24     If the tax is not paid under section 473I.09, a tax is 
 25.25  imposed on possession for sale or use of sports memorabilia or 
 25.26  sports licensed goods in the metropolitan area.  The rate of tax 
 25.27  equals the rate under section 473I.09 and must be paid by the 
 25.28  possessor of the items. 
 25.29     Sec. 19.  [473I.13] [EXEMPTIONS.] 
 25.30     The tax imposed by sections 473I.09 to 473I.16 does not 
 25.31  apply to: 
 25.32     (1) any successive sale if the tax was previously imposed 
 25.33  and collected on the same sports memorabilia or sports licensed 
 25.34  goods; and 
 25.35     (2) any sale of sports memorabilia or sports licensed goods 
 25.36  that is transferred to a point outside of the metropolitan area 
 26.1   for sale or use outside of the metropolitan area.  
 26.2      Sec. 20.  [473I.14] [ADMINISTRATIVE PROVISIONS.] 
 26.3      Subdivision 1.  [APPLICATION OF OTHER CHAPTERS.] To the 
 26.4   extent not inconsistent with sections 473I.09 to 473I.16, the 
 26.5   enforcement, interest, and penalty provisions under chapter 294, 
 26.6   appeal provisions in sections 289A.43 and 289A.65, criminal 
 26.7   penalties in section 289A.63, refund provisions in section 
 26.8   289A.50, and collection and rulemaking provisions under chapter 
 26.9   270, apply to the tax under sections 473I.09 to 473I.16. 
 26.10     Subd. 2.  [QUARTERLY ESTIMATED PAYMENTS.] (a) Each 
 26.11  wholesaler must make estimated payments of the tax for the 
 26.12  calendar year to the commissioner in accordance with an 
 26.13  agreement between the commission and the commissioner in 
 26.14  quarterly installments by April 15, July 15, October 15, and 
 26.15  January 15 of the following calendar year. 
 26.16     (b) Estimated tax payments are not required if the tax for 
 26.17  the calendar year is less than $500. 
 26.18     (c) Underpayment of estimated installments bear interest at 
 26.19  the rate specified in section 270.75, from the due date of the 
 26.20  payment until paid or until the due date of the annual return at 
 26.21  the rate specified in section 270.75.  An underpayment of an 
 26.22  estimated installment is the difference between the amount paid 
 26.23  and the lesser of (1) 90 percent of the one-quarter of the tax 
 26.24  for the calendar year, or (2) the tax for the actual gross 
 26.25  revenues received during the quarter. 
 26.26     Subd. 3.  [ELECTRONIC FUNDS-TRANSFER PAYMENTS.] A taxpayer 
 26.27  with an aggregate tax liability of $120,000 or more during a 
 26.28  fiscal year ending June 30, must remit all liabilities by funds 
 26.29  transfer as defined in section 336.4A-104, paragraph (a), in the 
 26.30  next calendar year.  The funds-transfer payment date, as defined 
 26.31  in section 336.4A-401, is on or before the date the tax is due.  
 26.32  If the date the tax is due is not a funds-transfer business day, 
 26.33  as defined in section 336.4A-105, paragraph (a), clause (4), the 
 26.34  payment date is on or before the first funds-transfer business 
 26.35  day after the date the tax is due. 
 26.36     Subd. 4.  [ANNUAL RETURN.] The taxpayer must file an annual 
 27.1   return reconciling the estimated payments by March 15 of the 
 27.2   following calendar year. 
 27.3      Subd. 5.  [FORM OF RETURNS.] The estimated payments and 
 27.4   annual return must contain the information and be in the form 
 27.5   prescribed by the commissioner. 
 27.6      Sec. 21.  [473I.15] [DISCLOSURE ON PRODUCTS.] 
 27.7      A wholesaler subject to tax under section 473I.09 must 
 27.8   apply a tag, stamp, mark, or other indicia on sports memorabilia 
 27.9   subject to the tax that states "This product was subject to the 
 27.10  sports memorabilia tax" or another statement to similar effect. 
 27.11     Sec. 22.  [473I.16] [DISPOSITION OF REVENUES.] 
 27.12     The commissioner shall deposit all revenues, including 
 27.13  interest and penalties, derived from the tax imposed on sports 
 27.14  memorabilia and sports licensed goods under section 473I.09 in 
 27.15  the state treasury and credit them to the baseball park account 
 27.16  in the special revenue fund.  
 27.17     Sec. 23.  [APPLICATION.] 
 27.18     This article applies in the counties of Anoka, Carver, 
 27.19  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 27.20     Sec. 24.  [EFFECTIVE DATE.] 
 27.21     Sections 1 to 4 are effective for rental and lease 
 27.22  transactions occurring after December 31, 1997. 
 27.23     Sections 7 to 10 and 23 are effective the day following 
 27.24  final enactment. 
 27.25     Section 11 is effective for taxable years beginning after 
 27.26  December 31, 1997. 
 27.27     Sections 12 and 13 are effective for events occurring and 
 27.28  for admissions on or after January 1, 2001. 
 27.29     Section 14 is effective for sales occurring after December 
 27.30  31, 1997. 
 27.31     Sections 15 to 22 are effective for sales made after June 
 27.32  30, 1998. 
 27.33                             ARTICLE 3
 27.34                          LOTTERY REVENUES
 27.35     Section 1.  Minnesota Statutes 1996, section 349A.10, is 
 27.36  amended by adding a subdivision to read: 
 28.1      Subd. 5a.  [SPECIAL LOTTERY GAME.] (a) The lottery shall 
 28.2   conduct an instant lottery game each year with a baseball theme. 
 28.3      (b) The net revenues from the game conducted under this 
 28.4   subdivision, after the deduction of the net revenue to be paid 
 28.5   to the Minnesota environment and natural resources trust fund, 
 28.6   must be credited to the baseball park account in the special 
 28.7   revenue fund. 
 28.8      Sec. 2.  [EFFECTIVE DATE.] 
 28.9      This article is effective January 1, 1998.