HF 2

1st Engrossment - 80th Legislature, 1997 3rd Special Session

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to public administration; providing for a 
  1.3             process to construct, fund, maintain, and govern a 
  1.4             major league baseball park; providing for powers, 
  1.5             duties, and membership of the metropolitan sports 
  1.6             facilities commission; authorizing certain taxes, 
  1.7             revenue distributions, bonds and other debt 
  1.8             obligations, and allocations; providing a process for 
  1.9             community ownership; proposing an amendment to the 
  1.10            Minnesota Constitution, article XI; appropriating 
  1.11            money; amending Minnesota Statutes 1996, sections 
  1.12            297A.135, subdivisions 2, 3, 4, and by adding a 
  1.13            subdivision; 297A.25, by adding a subdivision; 
  1.14            349A.10, by adding a subdivision; 473.551, subdivision 
  1.15            8, and by adding subdivisions; 473.552; 473.553, 
  1.16            subdivisions 1, 2, 3, 4, and 5; and 473.556, 
  1.17            subdivisions 3, 4, 5, and by adding subdivisions; 
  1.18            proposing coding for new law in Minnesota Statutes, 
  1.19            chapter 473; proposing coding for new law as Minnesota 
  1.20            Statutes, chapter 473I; repealing Minnesota Statutes 
  1.21            1996, section 473.553, subdivision 14. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23                             ARTICLE 1 
  1.24                     BASEBALL PARK CONSTRUCTION 
  1.25     Section 1.  Minnesota Statutes 1996, section 473.551, 
  1.26  subdivision 8, is amended to read: 
  1.27     Subd. 8.  [SPORTS FACILITY OR SPORTS FACILITIES.] "Sports 
  1.28  facility" or "sports facilities" means real or personal property 
  1.29  comprising a stadium, stadiums, baseball parks, or arenas 
  1.30  suitable for university or major league professional baseball, 
  1.31  for university or major league professional football and soccer, 
  1.32  or for both, or for university or major league hockey or 
  1.33  basketball, or for both, together with adjacent parking 
  2.1   facilities, including on the effective date of Laws 1994, 
  2.2   chapter 648, the metrodome, the baseball park, the met center, 
  2.3   and, upon acquisition by the commission, the basketball and 
  2.4   hockey arena. 
  2.5      Sec. 2.  Minnesota Statutes 1996, section 473.551, is 
  2.6   amended by adding a subdivision to read: 
  2.7      Subd. 18.  [BASEBALL PARK.] "Baseball park" means a park 
  2.8   owned by the commission and designed for playing major league 
  2.9   professional baseball, as specified in section 473.5991. 
  2.10     Sec. 3.  Minnesota Statutes 1996, section 473.551, is 
  2.11  amended by adding a subdivision to read: 
  2.12     Subd. 19.  [BASEBALL PARK REVENUE.] "Baseball park revenue" 
  2.13  means all revenue received by or payable to the commission 
  2.14  arising from its ownership and operation of the baseball park 
  2.15  including, but not limited to, revenues from admission taxes or 
  2.16  other special taxes, bond proceeds, fees, lottery proceeds, 
  2.17  loans, and gifts. 
  2.18     Sec. 4.  Minnesota Statutes 1996, section 473.551, is 
  2.19  amended by adding a subdivision to read: 
  2.20     Subd. 20.  [BASEBALL TEAM.] "Baseball team" means a major 
  2.21  league professional baseball team. 
  2.22     Sec. 5.  Minnesota Statutes 1996, section 473.551, is 
  2.23  amended by adding a subdivision to read: 
  2.24     Subd. 21.  [CITY.] "City" when referring to anything 
  2.25  involving the baseball park means the city in which the baseball 
  2.26  park is located. 
  2.27     Sec. 6.  Minnesota Statutes 1996, section 473.551, is 
  2.28  amended by adding a subdivision to read: 
  2.29     Subd. 22.  [COUNTY.] "County" when referring to anything 
  2.30  involving the baseball park means the county in which the 
  2.31  baseball park is located. 
  2.32     Sec. 7.  Minnesota Statutes 1996, section 473.551, is 
  2.33  amended by adding a subdivision to read: 
  2.34     Subd. 23.  [OWNER.] "Owner" means the individual or person 
  2.35  who directly or indirectly owns an interest in the baseball 
  2.36  team, or an authorized successor or transferee.  Owner does not 
  3.1   mean the commission.  
  3.2      Sec. 8.  Minnesota Statutes 1996, section 473.552, is 
  3.3   amended to read: 
  3.4      473.552 [LEGISLATIVE POLICY; PURPOSE.] 
  3.5      The legislature finds that: 
  3.6      (a) (1) the population in the metropolitan area has a need 
  3.7   for sports facilities and that this need cannot be met 
  3.8   adequately by the activities of individual municipalities, by 
  3.9   agreements among municipalities, or by the private efforts of 
  3.10  the people in the metropolitan area,; 
  3.11     (b) (2) the commission's ownership and operation of the 
  3.12  metrodome and met center has met in part the foregoing need and 
  3.13  has promoted the economic and social interests of the 
  3.14  metropolitan area, of the state, and of the public, and; 
  3.15     (c) (3) the commission's acquisition of the basketball and 
  3.16  hockey arena on the terms and conditions provided in sections 
  3.17  473.598 and 473.599 shall similarly and more fully meet the 
  3.18  foregoing needs and promote these interests; and 
  3.19     (4) the commission's construction and operation of the 
  3.20  baseball park by reasonable methods that the legislature and the 
  3.21  commission may devise to secure the long-term commitment of the 
  3.22  baseball team, including, but not limited to, public or 
  3.23  community ownership of the baseball team, the assignment of the 
  3.24  operation of the baseball park to a private entity, all of which 
  3.25  may further secure and promote these public purposes, will 
  3.26  likewise meet the foregoing needs and promote these interests. 
  3.27  It is therefore necessary for the public health, safety and 
  3.28  general welfare to establish a procedure for the acquisition and 
  3.29  betterment of sports facilities and to create a metropolitan 
  3.30  sports facilities commission. 
  3.31     Sec. 9.  Minnesota Statutes 1996, section 473.553, 
  3.32  subdivision 1, is amended to read: 
  3.33     Subdivision 1.  [GENERAL.] The metropolitan sports 
  3.34  facilities commission is established and as a local governmental 
  3.35  unit and political subdivision of the state that may exercise 
  3.36  its powers to the extent specifically provided by law.  The 
  4.1   commission shall be organized, structured, and administered as 
  4.2   provided in this section. 
  4.3      Sec. 10.  Minnesota Statutes 1996, section 473.556, 
  4.4   subdivision 3, is amended to read: 
  4.5      Subd. 3.  [ACQUISITION OF PROPERTY.] The commission may 
  4.6   acquire by lease, purchase, gift, or devise all necessary right, 
  4.7   title, and interest in and to real or personal property deemed 
  4.8   necessary to the purposes contemplated by sections 473.551 to 
  4.9   473.599 within the limits of the metropolitan area.  The city or 
  4.10  county may exercise the right of eminent domain under chapter 
  4.11  117 to acquire a site for the baseball park and, from time to 
  4.12  time such other property, real, personal and intangible, as are 
  4.13  essential and integral to the successful operation of a sports 
  4.14  facility.  
  4.15     Sec. 11.  Minnesota Statutes 1996, section 473.556, 
  4.16  subdivision 4, is amended to read: 
  4.17     Subd. 4.  [EXEMPTION OF PROPERTY.] (a) Except as provided 
  4.18  in paragraph (b), any real or personal property acquired, owned, 
  4.19  leased, controlled, used, or occupied by the commission for any 
  4.20  of the purposes of sections 473.551 to 473.599 is declared to be 
  4.21  acquired, owned, leased, controlled, used and occupied for 
  4.22  public, governmental, and municipal purposes, and shall be 
  4.23  exempt from ad valorem taxation by the state or any political 
  4.24  subdivision of the state, provided that such properties shall be 
  4.25  subject to special assessments levied by a political subdivision 
  4.26  for a local improvement in amounts proportionate to and not 
  4.27  exceeding the special benefit received by the properties from 
  4.28  the improvement.  No possible use of any such properties in any 
  4.29  manner different from their use under sections 473.551 to 
  4.30  473.599 at the time shall be considered in determining the 
  4.31  special benefit received by the properties.  All assessments 
  4.32  shall be subject to final confirmation by the council, whose 
  4.33  determination of the benefits shall be conclusive upon the 
  4.34  political subdivision levying the assessment.  Notwithstanding 
  4.35  the provisions of section 272.01, subdivision 2, or 273.19, real 
  4.36  or personal property leased by the commission to another person 
  5.1   for uses related to the purposes of sections 473.551 to 473.599, 
  5.2   including the operation of the metrodome, baseball park, met 
  5.3   center, and, if acquired by the commission, the basketball and 
  5.4   hockey arena shall be exempt from taxation regardless of the 
  5.5   length of the lease.  The provisions of this subdivision, 
  5.6   insofar as they require exemption or special treatment, shall 
  5.7   not apply to any real property comprising the met center which 
  5.8   is leased by the commission for residential, business, or 
  5.9   commercial development or other purposes different from those 
  5.10  contemplated in sections 473.551 to 473.599. 
  5.11     (b) The exemption from ad valorem taxation does not apply 
  5.12  to restaurants, lodging, or other facilities primarily engaged 
  5.13  in making retail sales to the public without regard to whether 
  5.14  there is an event at the facility. 
  5.15     Sec. 12.  Minnesota Statutes 1996, section 473.556, 
  5.16  subdivision 5, is amended to read: 
  5.17     Subd. 5.  [FACILITY OPERATION.] The commission may equip, 
  5.18  improve, operate, manage, maintain, and control the 
  5.19  metrodome, baseball park, met center, basketball and hockey 
  5.20  arena and sports facilities constructed, remodeled, or acquired 
  5.21  under the provisions of sections 473.551 to 473.599. 
  5.22     Sec. 13.  Minnesota Statutes 1996, section 473.556, is 
  5.23  amended by adding a subdivision to read: 
  5.24     Subd. 18.  [PRIVATE CONTRIBUTIONS.] Notwithstanding the 
  5.25  requirements of subdivision 9, the commission may accept grants, 
  5.26  gifts, or loans from public or private sources to further its 
  5.27  public purposes with respect to the baseball park.  The 
  5.28  contributions may be used by the commission for any purpose 
  5.29  related to the baseball park under sections 473.5991 to 
  5.30  473.5995, including, but not limited to, payment of revenue 
  5.31  bonds or revenue anticipation certificates issued under section 
  5.32  473.5993, or reducing or eliminating any ownership, operations, 
  5.33  or other obligations or liabilities of the commission under 
  5.34  sections 473.5991 to 473.5995. 
  5.35     Sec. 14.  Minnesota Statutes 1996, section 473.556, is 
  5.36  amended by adding a subdivision to read: 
  6.1      Subd. 19.  [BASEBALL PARK REVENUE.] The commission may 
  6.2   spend baseball park revenue to pay any reasonable expenses 
  6.3   necessary to administer, operate, improve, or maintain the 
  6.4   baseball park or to pay debt service on bonds or other 
  6.5   obligations sold for purposes of the baseball park.  Baseball 
  6.6   park revenue must be segregated from other revenue of the 
  6.7   commission. 
  6.8      Sec. 15.  [473.5991] [BASEBALL PARK.] 
  6.9      Subdivision 1.  [ESSENTIAL CHARACTERISTICS.] The baseball 
  6.10  park must be designed for playing major league baseball and no 
  6.11  other major league spectator sport that uses a surface or 
  6.12  seating configuration different from major league baseball.  The 
  6.13  baseball park shall be designed to have a retractable roof, but 
  6.14  no roof shall be constructed unless funding becomes available 
  6.15  from the lottery or from some private source.  The baseball park 
  6.16  may include parking or other transit facilities for patrons, 
  6.17  performers, and employees and may include other amenities to 
  6.18  enhance or make the use of the baseball park convenient and 
  6.19  predictably accessible to all.  
  6.20     Subd. 2.  [DESIGN.] The commission shall determine the 
  6.21  program elements of the baseball park, including, but not 
  6.22  limited to, capacity, suites, club seats, clubs, and amenities.  
  6.23  The commission shall also determine the baseball park design, 
  6.24  and the selection of the project construction team, including 
  6.25  the architect and general contractor. 
  6.26     Subd. 3.  [SITE.] The commission shall design a process to 
  6.27  select a site within the metropolitan area and request site 
  6.28  proposals from any municipality.  The process to select a site 
  6.29  must include a procedure to set minimum specifications for the 
  6.30  site, including the necessary or desirable appropriate economic 
  6.31  development possibilities on adjacent properties.  The process 
  6.32  must consider the capture and use of incremental revenue paid to 
  6.33  or enjoyed by public entities, as a result of or in anticipation 
  6.34  of the baseball park, as revenue sources for funding the 
  6.35  baseball park.  The commission may not select a site that is 
  6.36  located in a city that has not adopted an ordinance 
  7.1   conditionally imposing taxes or fees under section 473I.03, 
  7.2   subdivision 2, "consistent with the city's charter" and the 
  7.3   commission has determined that the taxes and fees will raise not 
  7.4   less than $3,000,000 per year beginning in fiscal year 2002. 
  7.5      Subd. 4.  [RELATED INFRASTRUCTURE.] The commission shall 
  7.6   negotiate with the appropriate government entities, including 
  7.7   the city and county within which the baseball park is located, 
  7.8   and the metropolitan council for necessary or appropriate 
  7.9   infrastructure improvements to support the existence and 
  7.10  operation of the baseball park, the movement of patrons to and 
  7.11  from the baseball park, and their comfort, safety, and 
  7.12  convenience while in and around the baseball park. 
  7.13     Subd. 5.  [CONSTRUCTION METHODS.] The commission may 
  7.14  contract for construction materials, supplies, and equipment in 
  7.15  accordance with section 471.345, except that the commission may 
  7.16  employ persons, firms, or corporations to perform one or more or 
  7.17  all of the functions of architect, engineer, construction 
  7.18  manager, or contractor for both design and construction, with 
  7.19  respect to all or part of a project to build or remodel sports 
  7.20  facilities.  Contractors shall be selected through the process 
  7.21  of public bidding, under section 471.345, except that the 
  7.22  commission may narrow the listing of eligible bidders to those 
  7.23  the commission determines to possess sufficient expertise to 
  7.24  perform the intended functions and the commission may negotiate 
  7.25  with the three lowest responsible bidders to achieve the best 
  7.26  and final offer.  The commission may require a construction 
  7.27  manager to certify a construction price and completion date to 
  7.28  the commission.  The commission may require the posting of a 
  7.29  bond in an amount determined by the commission to cover any 
  7.30  costs that may be incurred over and above the certified price, 
  7.31  including, but not limited to, costs incurred by the commission 
  7.32  or loss of revenues resulting from incomplete construction on 
  7.33  the completion date and any other obligations the commission may 
  7.34  require the construction manager to bear.  The commission shall 
  7.35  secure surety bonds as required in section 574.26 securing 
  7.36  payment of just claims in connection with all public work 
  8.1   undertaken by it.  Persons entitled to the protection of the 
  8.2   bonds may enforce them as provided in sections 574.28 to 574.32 
  8.3   and are not entitled to a lien on any property of the commission 
  8.4   under sections 514.01 to 514.16. 
  8.5      Subd. 6.  [CONSTRUCTION MATERIALS; SALES TAX 
  8.6   EXEMPTION.] Purchases of materials and supplies used or consumed 
  8.7   in constructing or incorporated into the construction of a 
  8.8   baseball park defined in section 473.551, subdivision 18, are 
  8.9   exempt from the taxes imposed under chapter 297A and from any 
  8.10  sales and use tax imposed by a local unit of government 
  8.11  notwithstanding any ordinance or charter provision.  This 
  8.12  exemption applies regardless of whether the materials and 
  8.13  supplies are purchased by the owner of the baseball park or by a 
  8.14  contractor or subcontractor.  
  8.15     Sec. 16.  [473.5992] [DETERMINATIONS BEFORE BONDS SOLD.] 
  8.16     Subdivision 1.  [WHEN.] (a) The commission must do what it 
  8.17  is required to do and determine that others have done what they 
  8.18  are required to do under this section before it authorizes the 
  8.19  sale of bonds under section 473.5993.  The revenue bonds of the 
  8.20  commission may not be sold under section 473.5993 until the 
  8.21  state board of investment approves. 
  8.22     (b) If paragraph (a) is not complied with by March 31, 
  8.23  1998, the commission or the owner may require negotiations to 
  8.24  cease.  If the owner requires negotiations to cease under this 
  8.25  subdivision or subdivision 7, the owner shall pay all costs and 
  8.26  expenses of all deliberations of the commission incurred through 
  8.27  the date when negotiations cease. 
  8.28     Subd. 2.  [30-YEAR USE AGREEMENT.] (a) The commission must 
  8.29  execute agreements with the owner and the baseball team to use 
  8.30  the baseball park for all scheduled regular season and all 
  8.31  postseason division, league, and world series championship 
  8.32  play-off home games for no less than 30 years, without an escape 
  8.33  clause for the owner.  The commission and the owner may also 
  8.34  negotiate new terms and conditions for the current use agreement.
  8.35     (b) The agreements shall afford to the commission, or to 
  8.36  another public entity as the commission deems appropriate, the 
  9.1   rights and remedies that are deemed necessary and appropriate to 
  9.2   provide reasonable assurances that the baseball team and the 
  9.3   owner will comply with the agreements throughout the 30-year 
  9.4   term.  The remedies must include liquidated damages in the 
  9.5   amount of $250,000,000 plus interest on the bonds sold for this 
  9.6   purpose, payable by the baseball team and the owner jointly and 
  9.7   severally to the commission in the event the team relocates to 
  9.8   another ballpark within the 30-year period, less 1/30 of that 
  9.9   amount for each year the team has met its obligation to play in 
  9.10  the baseball park.  The remedies may include specific 
  9.11  performance and injunctive relief and any other equitable 
  9.12  remedies, and any additional remedies or ownership, voting, or 
  9.13  other security arrangements the commission reasonably determines 
  9.14  to be effective in ensuring the baseball team will play the 
  9.15  required games in the baseball park throughout the 30-year 
  9.16  term.  In the enforcement of the agreements, the commission may 
  9.17  elect from among the rights and remedies provided for in this 
  9.18  paragraph, and that election does not extinguish the 
  9.19  commission's other rights and remedies except as may otherwise 
  9.20  be provided by law.  It is the intent of the legislature that a 
  9.21  material breach of an agreement between the commission and other 
  9.22  public bodies and professional athletic teams that commit to the 
  9.23  long-term playing of major league games at public facilities is 
  9.24  deemed to cause irreparable harm for which no adequate remedy at 
  9.25  law is available and that the grant of equitable relief to 
  9.26  remedy the breach is in the public interest and shall be 
  9.27  liberally so construed.  
  9.28     (c) The agreements must confer exclusive jurisdiction for 
  9.29  judicial enforcement of the agreements on Minnesota state courts 
  9.30  and provide that disputes arising under the agreement be 
  9.31  governed by Minnesota law.  
  9.32     (d) The agreements shall provide for the annual payment of 
  9.33  rent by the baseball team for the use and enjoyment of the 
  9.34  baseball park, and for the allocation, between the commission 
  9.35  and the baseball team of all other revenues from whatever source 
  9.36  attributable to the baseball park. 
 10.1      Subd. 3.  [COMMUNITY, CITIZEN OWNERSHIP AGREEMENTS.] (a)  
 10.2   The owner must execute a binding agreement which provides within 
 10.3   two years of the effective date of this article for a transfer 
 10.4   of ownership of the baseball team to the community either 
 10.5   through the sale of shares of stock or other interests in the 
 10.6   baseball team to citizens or through transfer of shares and 
 10.7   other interests in the baseball team by gift or otherwise to the 
 10.8   commission or to another public or private nonprofit entity or 
 10.9   through both.  The plan must provide for transfer of a majority 
 10.10  share of the shares of the team to community or citizen 
 10.11  ownership other than the current owner and members of the 
 10.12  current owner's family.  If ownership shares are to be sold to 
 10.13  citizens, the plan must provide that the publicly owned share 
 10.14  will be widely dispersed and not concentrated in a few 
 10.15  individuals or entities.  The bylaws or other governing 
 10.16  documents of the entity must provide that the team may not move 
 10.17  outside of the state without approval by 80 percent of the 
 10.18  publicly held ownership shares, including requiring approval by 
 10.19  the public or private nonprofit entity.  
 10.20     (b) The governor after consulting with the legislators 
 10.21  designated in paragraph (c) shall negotiate the agreement with 
 10.22  the owner. 
 10.23     (c) Eight legislators shall be appointed to consult with 
 10.24  the governor under paragraph (b):  four members of the house of 
 10.25  representatives appointed by the speaker, two from each caucus, 
 10.26  and four members of the senate appointed by the subcommittee on 
 10.27  committees of the committee on rules and administration, two 
 10.28  from each caucus. 
 10.29     Subd. 4.  [OWNER'S ABILITY TO COMPLY.] The baseball team 
 10.30  and the owner must provide information sufficient to satisfy the 
 10.31  commission of the baseball team's and the owner's ability to 
 10.32  comply with the terms of the 30-year agreements. 
 10.33     Subd. 5.  [OWNER'S INITIAL INVESTMENT.] The commission must 
 10.34  enter into an agreement with the owner that provides that the 
 10.35  owner will make an initial investment in the construction of the 
 10.36  baseball park by paying the commission not less than $75,000,000 
 11.1   to be paid on a date satisfactory to the commission.  The 
 11.2   initial investment shall not be secured by any property or 
 11.3   revenues of the commission. 
 11.4      Subd. 6.  [PRIVATE SECTOR SUPPORT.] (a) Private sector 
 11.5   support for construction of the baseball park must be 
 11.6   demonstrated by the following:  
 11.7      (1) at least 80 percent of the private suites provided for 
 11.8   in the proposal for the baseball park have been sold or leased 
 11.9   for at least ten years; 
 11.10     (2) at least 80 percent of the club seats provided for in 
 11.11  the proposal for the baseball park are sold or leased for the 
 11.12  opening season; 
 11.13     (3) at least $25,000,000 in qualified pledges to purchase 
 11.14  permanent seat licenses are made; and 
 11.15     (4) pledges to purchase 22,000 season tickets for the 
 11.16  opening season are made. 
 11.17     (b) If the conditions in this subdivision are not met by 
 11.18  March 31, 1998, either the owner or the commission may require 
 11.19  negotiations for the baseball park to cease. 
 11.20     Subd. 7.  [PRIVATE SECTOR CAPITAL PLAN.] The owner must 
 11.21  develop a private sector capital plan approved by the commission 
 11.22  that includes the sale or lease of some or all promotional 
 11.23  rights in the baseball park. 
 11.24     Subd. 8.  [MAJOR LEAGUE BASEBALL CONTRIBUTION.] The 
 11.25  commission and the owner must enter into an agreement that 
 11.26  provides that the owner will use its best efforts to obtain 
 11.27  construction money for the baseball park from major league 
 11.28  baseball. 
 11.29     Subd. 9.  [COMMISSION TITLE TO PROPERTY.] The commission 
 11.30  must acquire or contract to acquire title to all real property 
 11.31  including all easements and other appurtenances needed for the 
 11.32  construction and operation of the baseball park and must receive 
 11.33  a grant of money or enter into agreements sufficient to ensure 
 11.34  the receipt of money, at the time and in the amount required, to 
 11.35  make any payment upon which the commission's acquisition of 
 11.36  title and possession of the real property is conditioned. 
 12.1      Subd. 10.  [SUFFICIENT MONEY FOR CLEARING PROPERTY.] The 
 12.2   commission must receive a grant of money or enter into 
 12.3   agreements sufficient in the judgment of the commission to 
 12.4   ensure the receipt of money, at the time and in the amount 
 12.5   required, to pay all costs of clearing the real property needed 
 12.6   for the construction and operation of the baseball park of all 
 12.7   improvements thereon which would interfere with the construction 
 12.8   or operation of the baseball park.  
 12.9      Subd. 11.  [GUARANTEED MAXIMUM PRICE.] The commission must 
 12.10  execute agreements that provide for the construction of the 
 12.11  baseball park for a guaranteed maximum price and substantial 
 12.12  completion date of April 1, 2001, and that requires performance 
 12.13  bonds in an amount at least equal to 100 percent of the 
 12.14  guaranteed maximum price to cover any costs incurred over and 
 12.15  above the guaranteed maximum price, including, but not limited 
 12.16  to, costs incurred by the commission or loss of revenues 
 12.17  resulting from incomplete construction on the substantial 
 12.18  completion date. 
 12.19     Subd. 12.  [NO STRIKES OR LOCKOUTS.] The commission must 
 12.20  execute agreements with appropriate labor organizations and 
 12.21  construction contractors that provide that no labor strikes or 
 12.22  management lockouts will delay construction. 
 12.23     Subd. 13.  [BASEBALL TEAM TO OPERATE BASEBALL PARK.] (a) 
 12.24  The commission must execute agreements with the owner and the 
 12.25  baseball team that provide for operation and maintenance of the 
 12.26  baseball park at the expense of the owner and the team. 
 12.27     (b) The agreements may provide that: 
 12.28     (1) the baseball team will manage, maintain, operate, and 
 12.29  repair the baseball park and may contract with one or more 
 12.30  entities to operate part or all of the baseball park all subject 
 12.31  to the approval of the commission; and 
 12.32     (2) the baseball team shall contract with one or more 
 12.33  concessionaires to provide food and beverages for the baseball 
 12.34  park subject to the approval of the commission. 
 12.35     (c) The agreements must provide criteria for maintenance 
 12.36  and operation of the baseball park and remedies as referred to 
 13.1   in subdivision 2, paragraphs (b) and (c), that may be exercised 
 13.2   by the commission to ensure that the criteria are met.  The 
 13.3   agreements must also require that the baseball team and its 
 13.4   affiliates and subsidiaries that are involved in the maintenance 
 13.5   and operation provide annually audited financial statements to 
 13.6   the commission. 
 13.7      Subd. 14.  [COMMISSION PARTICIPATION IN BASEBALL TEAM 
 13.8   CONTRACTS.] The commission and the owner must execute an 
 13.9   agreement that provides that the commission may participate in 
 13.10  the negotiations of any operations, concessions, rights, 
 13.11  advertising, or any other contracts or agreements pertinent to 
 13.12  the operation and maintenance of the baseball park between the 
 13.13  owner and any other third party. 
 13.14     Subd. 15.  [CAPITAL REPAIRS AND IMPROVEMENTS.] The 
 13.15  commission must establish a baseball park capital repair and 
 13.16  improvement account and enter into an agreement with the owner 
 13.17  and the baseball team that provides that the owner and the 
 13.18  baseball team must pay at least $700,000 a year into the account 
 13.19  to be used by the commission to make any capital repairs, 
 13.20  improvements, enhancements, and betterments necessary to 
 13.21  maintain the baseball park.  The commission is not obligated to 
 13.22  spend money for these purposes in excess of the balance in the 
 13.23  capital repair and improvement account. 
 13.24     Subd. 16.  [UNIVERSITY OF MINNESOTA.] The commission must 
 13.25  consult with and consider the needs of the University of 
 13.26  Minnesota for baseball facilities for the next 20 years. 
 13.27     Subd. 17.  [REVENUES TO BE SUFFICIENT.] The anticipated 
 13.28  baseball park revenue must be sufficient to pay when due all 
 13.29  debt service on the revenue bonds and all administrative 
 13.30  expenses of the commission.  The anticipated revenue to the 
 13.31  baseball team must be sufficient to pay all operating and 
 13.32  maintenance expenses of the baseball park. 
 13.33     Subd. 18.  [LEAGUE, MAJOR LEAGUE BASEBALL GUARANTY.] The 
 13.34  commission must execute an agreement with the major league of 
 13.35  which the baseball team is a member and with major league 
 13.36  baseball that guarantees the continuance of the franchise in the 
 14.1   metropolitan area for the period of the agreement referred to in 
 14.2   subdivision 2. 
 14.3      Subd. 19.  [AFFORDABLE TICKETS.] The commission must obtain 
 14.4   a guarantee from the owner that at least ten percent of the 
 14.5   tickets in the baseball park sold for major league professional 
 14.6   baseball games will be available at prices that do not exceed 25 
 14.7   percent of the highest priced seats in the baseball park or $5 
 14.8   per ticket, whichever is lower.  Premium seating, such as seats 
 14.9   requiring personal seat licenses, luxury boxes, and similar 
 14.10  seating, must be excluded in determining the highest priced 
 14.11  seats in the baseball park.  The maximum price of affordable 
 14.12  tickets may be adjusted periodically for inflation.  Not less 
 14.13  than 20 percent of the tickets subject to the guarantee under 
 14.14  this subdivision may only be made available for sale on the day 
 14.15  of the game unless the game is a postseason division, league, or 
 14.16  world series championship game.  
 14.17     Sec. 17.  [INTERSTATE COMPETITION.] 
 14.18     The commission may cooperate and contract with other 
 14.19  political entities in the United States, to petition or form an 
 14.20  entity to petition the United States Congress to enact 
 14.21  legislation to prevent injurious or uneconomic practices of 
 14.22  governmental entities in seeking sports, exposition, and 
 14.23  entertainment franchises and facilities.  The attorney general 
 14.24  may participate in appropriate litigation to prevent the 
 14.25  injurious or uneconomic practices. 
 14.26     Sec. 18.  [473.5993] [DEBT OBLIGATIONS FOR BASEBALL PARK.] 
 14.27     Subdivision 1.  [PURPOSES.] The commission may by 
 14.28  resolution authorize the sale and issuance of its revenue bonds 
 14.29  for the following purposes after complying with or determining 
 14.30  that section 473.5992, paragraph (a), has been or will be 
 14.31  complied with in material respects: 
 14.32     (1) to acquire and better facilities for a baseball park, 
 14.33  including, but not limited to, site assembly, preparation, and 
 14.34  construction; 
 14.35     (2) to reimburse the commission for its costs in complying 
 14.36  with and making the determinations required by section 473.5992, 
 15.1   whenever incurred; 
 15.2      (3) to pay issuance costs and costs of bond insurance or 
 15.3   other credit enhancement for the bonds and to establish 
 15.4   necessary reserves for operating and debt service costs; 
 15.5      (4) to refund bonds issued under this section; and 
 15.6      (5) to fund judgments entered by any court against the 
 15.7   commission in matters relating to the commission's functions 
 15.8   related to the baseball park. 
 15.9      Subd. 2.  [AMOUNT.] The principal amount of the bonds 
 15.10  issued under subdivision 1, clause (1), exclusive of any 
 15.11  original issue discount, must not exceed $175,000,000. 
 15.12     Subd. 3.  [TAXABILITY.] The bonds may be issued as 
 15.13  tax-exempt revenue bonds or as taxable revenue bonds in the 
 15.14  proportions that the commission may determine. 
 15.15     Subd. 4.  [PROCEDURE.] The bonds shall be sold, issued, and 
 15.16  secured in the manner provided in chapter 475 for bonds payable 
 15.17  solely from revenues and the commission has the same powers and 
 15.18  duties as a municipality and its governing body in issuing bonds 
 15.19  under that chapter.  The bonds may be sold at any price and at 
 15.20  public or private sale as determined by the commission.  An 
 15.21  election is not required.  
 15.22     Subd. 5.  [NOT A GENERAL OR MORAL OBLIGATION.] The bonds 
 15.23  are payable solely from baseball park revenues.  The bonds are 
 15.24  not a general or moral obligation or debt of the commission, any 
 15.25  other political subdivision of the state, or the state, and must 
 15.26  not be included in the net debt of any city, county, or other 
 15.27  subdivision of the state for the purpose of any net debt 
 15.28  limitation.  The state does not assume any obligation or 
 15.29  liability for bonds sold or issued under this section.  
 15.30     Subd. 6.  [BROKERAGE FIRM AGREEMENT.] Before issuing debt 
 15.31  under this section, the commission must enter into an agreement 
 15.32  with the brokerage firm to be used in connection with the sale 
 15.33  and issuance of the bonds or revenue anticipation certificates 
 15.34  under this section, guaranteeing that fees and charges payable 
 15.35  to the brokerage firm under the agreement, including any 
 15.36  underwriting discounts, do not exceed fees and charges 
 16.1   customarily payable in connection with the sale and issuance of 
 16.2   bonds or revenue anticipation certificates. 
 16.3      Subd. 7.  [SECURITY.] Baseball park revenues must be and 
 16.4   remain pledged and appropriated, for the benefit of and 
 16.5   enforceable by the bondholders or their trustee, for the payment 
 16.6   of all necessary and reasonable expenses of the operation, 
 16.7   administration, maintenance, and debt service of the baseball 
 16.8   park until all bonds and certificates issued under this section 
 16.9   are fully paid or discharged in accordance with law.  Bonds 
 16.10  issued under this section may be secured by a bond resolution, 
 16.11  or by a trust indenture entered into by the commission with a 
 16.12  corporate trustee within or outside the state, which must define 
 16.13  the baseball park revenues pledged for the payment and security 
 16.14  of the bonds.  The pledge is a valid charge on the baseball park 
 16.15  revenues from the date when bonds are first issued or secured 
 16.16  under the resolution or indenture and secure the payment of 
 16.17  principal and interest and redemption premiums when due and the 
 16.18  maintenance at all times of a reserve securing the payments.  No 
 16.19  mortgage of or security interest in any tangible real or 
 16.20  personal property is granted to the bondholders or the trustee, 
 16.21  but they have a valid security interest in all baseball park 
 16.22  revenues of the commission as against the claims of all other 
 16.23  persons in tort, contract, or otherwise, irrespective of whether 
 16.24  the parties have notice of the claims, and without possession or 
 16.25  filing as provided in the uniform commercial code or any other 
 16.26  law.  In the bond resolution or trust indenture the commission 
 16.27  may make any covenants that are determined by the commission to 
 16.28  be usual and reasonably necessary for the protection of the 
 16.29  bondholders.  No pledge, mortgage, covenant, or agreement 
 16.30  securing bonds may be impaired, revoked, or amended by law or by 
 16.31  action of the commission except in accordance with the terms of 
 16.32  the resolution or indenture under which the bonds are issued, 
 16.33  until the obligations of the commission under the resolution or 
 16.34  indenture are fully discharged. 
 16.35     Subd. 8.  [REVENUE ANTICIPATION CERTIFICATES.] In any year, 
 16.36  upon final adoption by the commission of an annual budget of the 
 17.1   commission, including the baseball park revenues, and in 
 17.2   anticipation of the baseball park revenues, but subject to any 
 17.3   limitation or prohibition in a bond resolution or indenture, the 
 17.4   commission may authorize the issuance, negotiation, and sale, in 
 17.5   the form and manner and upon the terms it may determine, of 
 17.6   revenue anticipation certificates.  The principal amount of the 
 17.7   certificates outstanding may at no time exceed 25 percent of the 
 17.8   total amount of the revenues anticipated.  The certificates must 
 17.9   mature not later than three months after the close of the budget 
 17.10  year.  So much of the anticipated baseball park revenues as may 
 17.11  be needed for the payment of the certificates and interest 
 17.12  thereon shall be paid into a special debt service fund 
 17.13  established for the certificates in the commission's financial 
 17.14  records.  If for any reason the anticipated revenues are 
 17.15  insufficient, the certificates and interest must be paid from 
 17.16  the first revenues received, subject to any limitation or 
 17.17  prohibition in a bond resolution or indenture.  The proceeds of 
 17.18  the certificates may be used for any purpose for which the 
 17.19  anticipated revenues may be used or for any purpose for which 
 17.20  bond proceeds under subdivision 1 may be used. 
 17.21     Subd. 9.  [VALIDITY OF DEBT ISSUED.] The validity of any 
 17.22  bonds issued under this section and the obligations of the 
 17.23  commission related to them must not be conditioned upon or 
 17.24  impaired by the commission's determinations made under section 
 17.25  473.5992.  For the purposes of issuing bonds, the determinations 
 17.26  made by the commission are conclusive, and the commission is 
 17.27  obligated for the security and payment of the bonds, but only 
 17.28  from the sources pledged thereto, irrespective of determinations 
 17.29  that may be erroneous, inaccurate, or otherwise mistaken. 
 17.30     Sec. 19.  [473.5994] [PROFIT SHARING.] 
 17.31     Subdivision 1.  [DEFINITIONS.] (a) [APPLICATION.] The 
 17.32  definitions in this subdivision apply to this section. 
 17.33     (b) [GROSS REVENUES OF THE BASEBALL TEAM.] "Gross revenues 
 17.34  of the baseball team" means all revenues of the baseball team 
 17.35  from whatever source, including, but not limited to, any 
 17.36  revenues as may be negotiated with the commission from baseball 
 18.1   park rights, concessions, signage, and revenues from ticket 
 18.2   sales, and other revenues including major league profit sharing, 
 18.3   royalties, television, radio, and any other receipts or 
 18.4   revenues, ordinary or extraordinary, not otherwise provided for 
 18.5   in sections 473.5991 to 473.5995. 
 18.6      (c) [NET OPERATING PROFITS.] "Net operating profits" means 
 18.7   the gross revenues of the baseball team remaining after its 
 18.8   payment of or deduction for its baseball team operating 
 18.9   expenses, its baseball park operating expenses, and its funding 
 18.10  of the baseball park capital repair and improvement account.  
 18.11  Net operating profits must be computed in accordance with 
 18.12  generally accepted accounting principles. 
 18.13     Subd. 2.  [BASEBALL TEAM OPERATING EXPENSES; LOSS.] The 
 18.14  owner shall assume all risk for and timely pay all operating 
 18.15  expenses of the baseball team and the baseball park as provided 
 18.16  in this act and in agreements authorized by this act.  The 
 18.17  baseball team shall be organized so that under Minnesota law, 
 18.18  the commission is not liable for any operating loss, liability, 
 18.19  or obligation of the baseball team, or baseball park.  The 
 18.20  commission shall have no duty to reimburse the owner or any 
 18.21  creditor of the owner, the baseball team, or the baseball park 
 18.22  for any operating loss, liability, or obligation of the baseball 
 18.23  team or baseball park, and shall be indemnified by the owner 
 18.24  against losses or claims. 
 18.25     Sec. 20.  [473.5995] [PROFITS UPON SALE OF BASEBALL TEAM.] 
 18.26     (a) The commission and the owner shall enter into an 
 18.27  agreement that provides for the sharing of profits upon the sale 
 18.28  of the baseball team.  
 18.29     (b) If: 
 18.30     (1) the baseball team is sold, transferred, or assigned 
 18.31  sooner than 15 years after the first regular season game played 
 18.32  in the baseball park; and 
 18.33     (2) the value of the baseball team has appreciated above 
 18.34  $125,000,000 or the sale price exceeds that amount, 
 18.35  then the commission shall receive a payment reflecting its share 
 18.36  that is stated in the agreement upon the closing of such sale, 
 19.1   transfer, or assignment. 
 19.2      Sec. 21.  [INSTRUCTION TO REVISOR.] 
 19.3      In the next edition of Minnesota Statutes, the revisor of 
 19.4   statutes shall change references to Minnesota Statutes, sections 
 19.5   473.551 to 473.599 to read "473.551 to 473.5995." 
 19.6      Sec. 22.  [APPLICATION.] 
 19.7      This article applies in the counties of Anoka, Carver, 
 19.8   Dakota, Hennepin, Ramsey, Scott, and Washington. 
 19.9      Sec. 23.  [EFFECTIVE DATE.] 
 19.10     This article is effective the day following final enactment.
 19.11                             ARTICLE 2
 19.12                    BASEBALL PARK SPECIAL TAXES
 19.13     Section 1.  Minnesota Statutes 1996, section 297A.135, is 
 19.14  amended by adding a subdivision to read: 
 19.15     Subd. 1a.  [METROPOLITAN AREA SURTAX.] In addition to the 
 19.16  tax imposed under subdivision 1, the metropolitan sports 
 19.17  facilities commission may impose a surtax of $1 a day on each 
 19.18  rental or lease transaction subject to the tax under subdivision 
 19.19  1 that occurs within the metropolitan area defined in section 
 19.20  473.121, subdivision 2.  The tax under this subdivision does not 
 19.21  apply if the rental or lease transaction is entered into as part 
 19.22  of or in connection with the provision by the lessor of motor 
 19.23  vehicle repair services. 
 19.24     Sec. 2.  Minnesota Statutes 1996, section 297A.135, 
 19.25  subdivision 2, is amended to read: 
 19.26     Subd. 2.  [SALES AND USE TAX.] The tax taxes imposed in 
 19.27  subdivision 1 is under subdivisions 1 and 1a are not included in 
 19.28  the sales price for purposes of determining the sales and use 
 19.29  tax imposed in this chapter or any sales and use tax imposed on 
 19.30  the transaction under a special law. 
 19.31     Sec. 3.  Minnesota Statutes 1996, section 297A.135, 
 19.32  subdivision 3, is amended to read: 
 19.33     Subd. 3.  [ADMINISTRATION.] The tax taxes imposed in 
 19.34  subdivision 1 under subdivisions 1 and 1a must be reported and 
 19.35  paid to the commissioner of revenue with the taxes imposed in 
 19.36  this chapter.  It is They are subject to the same interest, 
 20.1   penalty, and other provisions provided for sales and use taxes 
 20.2   under chapter 289A and this chapter.  The commissioner has the 
 20.3   same powers to assess and collect the tax taxes that are given 
 20.4   the commissioner in chapters 270 and 289A and this chapter to 
 20.5   assess and collect sales and use tax. 
 20.6      Sec. 4.  Minnesota Statutes 1996, section 297A.135, 
 20.7   subdivision 4, is amended to read: 
 20.8      Subd. 4.  [EXEMPTION.] The tax taxes imposed by this 
 20.9   section does do not apply to a lease or rental if the vehicle is 
 20.10  to be used by the lessee to provide a licensed taxi service. 
 20.11     Sec. 5.  Minnesota Statutes 1996, section 297A.25, is 
 20.12  amended by adding a subdivision to read: 
 20.13     Subd. 73.  [BASEBALL PARK SALES.] The gross receipts from 
 20.14  sales that are subject to taxation under section 473I.06 are 
 20.15  exempt. 
 20.16     Sec. 6.  Minnesota Statutes 1996, section 349A.10, is 
 20.17  amended by adding a subdivision to read: 
 20.18     Subd. 5b.  [SPECIAL LOTTERY GAME.] (a) The lottery shall 
 20.19  conduct an instant lottery game each year with a baseball theme. 
 20.20     (b) The net revenues from the game conducted under this 
 20.21  subdivision, after the deduction of the net revenue to be paid 
 20.22  to the Minnesota environment and natural resources trust fund, 
 20.23  must be credited to the baseball park account created in section 
 20.24  473I.02. 
 20.25     (c) Net revenues for purposes of this subdivision equal the 
 20.26  net revenues from the special lottery game, less any reduction 
 20.27  in the net revenues from other lottery games that result from 
 20.28  the availability of the special games, as estimated by the 
 20.29  commissioner of finance. 
 20.30     Sec. 7.  [473I.01] [DEFINITIONS.] 
 20.31     Subdivision 1.  [APPLICATION.] The definitions in sections 
 20.32  473.121, 473.551, and this section apply to this chapter. 
 20.33     Subd. 2.  [BASEBALL PARK.] "Baseball park" means the 
 20.34  baseball park described in section 473.5991. 
 20.35     Sec. 8.  [473I.02] [BASEBALL PARK ACCOUNT.] 
 20.36     The baseball park account is established in the special 
 21.1   revenue fund in the state treasury.  All money credited to the 
 21.2   baseball park account is appropriated to the commissioner of 
 21.3   revenue for payment to the commission for purposes of the 
 21.4   baseball park.  The commission shall use all receipts from the 
 21.5   baseball park account to administer, operate, and maintain the 
 21.6   baseball park and to pay debt service on bonds or other 
 21.7   obligations sold for purposes of the baseball park. 
 21.8      Sec. 9.  [473I.03] [BASEBALL PARK DISTRICT; TAXES AND 
 21.9   FEES.] 
 21.10     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
 21.11  finds that the construction of the baseball park is a public 
 21.12  improvement that has regional and statewide economic benefits.  
 21.13  In addition, the baseball park will specifically benefit the 
 21.14  class of persons operating retail and service businesses within 
 21.15  the surrounding area.  The legislature finds that the 
 21.16  designation by the commission, in mutual agreement with the 
 21.17  city, of the area surrounding the baseball park as a baseball 
 21.18  park district and the imposition of taxes or fees within the 
 21.19  district will more equitably apportion the burdens of funding 
 21.20  the baseball park among the classes of persons benefiting from 
 21.21  the baseball park. 
 21.22     Subd. 2.  [SPECIAL TAXES.] Notwithstanding section 
 21.23  477A.016, but subject to any charter of the city, under an 
 21.24  agreement with the commission, the city may by ordinance impose 
 21.25  liquor and entertainment taxes or fees within the area within 
 21.26  which retail and service businesses receive special economic 
 21.27  benefits from the operation of the baseball park, and that is 
 21.28  designated by the commission, in mutual agreement with the city, 
 21.29  and after consultation with the affected hospitality industry, 
 21.30  as a baseball park district.  The district may not be greater 
 21.31  than an area the commission specifically finds by resolution 
 21.32  receives special economic benefits from the baseball park.  The 
 21.33  ordinance must provide for dedication of the taxes or fees, 
 21.34  after payment of collection and administrative expenses and 
 21.35  refunds, to payment of principal and interest on bonds issued 
 21.36  under section 473.5993 and for the transfer of the taxes 
 22.1   collected to the commission for those purposes. 
 22.2      Sec. 10.  [473I.04] [STADIUM INCOME SURTAX.] 
 22.3      Subdivision 1.  [TAX IMPOSED.] The commission may by 
 22.4   resolution impose a tax on the taxable baseball park income of a 
 22.5   qualified employee of a sports organization that uses the 
 22.6   baseball park.  The tax equals two percent of taxable baseball 
 22.7   park income for the taxable year. 
 22.8      Subd. 2.  [DEFINITIONS.] (a) The definitions in chapter 290 
 22.9   and in this subdivision apply to this section. 
 22.10     (b) "Taxable baseball park income" means wages, salaries, 
 22.11  or other compensation derived from the performance of personal 
 22.12  services for a sports organization.  For both residents and 
 22.13  nonresidents, the amount attributable to performance of personal 
 22.14  services for a sports organization is determined by first 
 22.15  subtracting $150,000 from total compensation for the performance 
 22.16  of personal service and then applying the allocation rules under 
 22.17  section 290.17, subdivision 2, paragraph (a), clauses (1) and 
 22.18  (2).  The amount may not be less than zero. 
 22.19     (c) A "qualified employee" means an employee who derives 
 22.20  wages, salaries, or other compensation of at least $150,000 for 
 22.21  the performance of personal services from a sports organization 
 22.22  for the taxable year. 
 22.23     (d) A "sports organization" means any organization that 
 22.24  operates a major league baseball franchise.  A sports 
 22.25  organization includes a visiting team regardless of whether it 
 22.26  has a direct agreement with the owner or operator of the 
 22.27  baseball park. 
 22.28     Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 22.29  section must be collected in the manner provided for individual 
 22.30  income taxes imposed under chapter 290 and in accordance with an 
 22.31  agreement between the commission and the commissioner of revenue.
 22.32  The revenue from the tax must be deposited in the baseball 
 22.33  stadium account in the special revenue fund. 
 22.34     Sec. 11.  [473I.05] [ADMISSION TAX; TICKET SURCHARGE.] 
 22.35     The commission may by resolution impose and maintain an 
 22.36  admission tax or ticket surcharge, or both, upon the granting, 
 23.1   issuance, sale, or distribution, by any private or public 
 23.2   person, association, or corporation, of the privilege of 
 23.3   admission to activities at the baseball park.  No other tax, 
 23.4   surcharge, or governmental imposition, except the taxes imposed 
 23.5   by chapter 297A or under section 473I.06, may be levied by any 
 23.6   other unit of government upon that sale or distribution.  If the 
 23.7   commission imposes a ticket surcharge, it must be at least $1 
 23.8   per ticket for the seats affected.  The commission and the owner 
 23.9   may by mutual agreement exempt sections of the baseball park 
 23.10  from the ticket surcharge.  The admission tax or ticket 
 23.11  surcharge must be stated and charged separately from the sales 
 23.12  price so far as practicable and must be collected by the 
 23.13  grantor, issuer, seller, or distributor from the person admitted 
 23.14  and is a debt from that person to the grantor, issuer, seller, 
 23.15  or distributor, and the tax required to be collected is a debt 
 23.16  owed by the grantor, issuer, seller, or distributor to the 
 23.17  commission.  The debt is recoverable at law in the same manner 
 23.18  as other debts.  Every person who grants, issues, sells, or 
 23.19  distributes tickets for the admissions may be required, as 
 23.20  provided in resolutions of the commission to secure a permit, to 
 23.21  file returns, to deposit security for the payment of the tax, 
 23.22  and to pay penalties for nonpayment and interest on late 
 23.23  payments, that are considered necessary or expedient to ensure 
 23.24  the prompt and uniform collection of the tax.  Receipts from the 
 23.25  admission tax must be used for purposes of the baseball park.  
 23.26     Sec. 12.  [473I.06] [SPORTS FACILITIES SALES TAX.] 
 23.27     Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
 23.28  chapter 297A and in this subdivision apply to this section. 
 23.29     (b) "Sports facilities sale" means any transaction, 
 23.30  including a transfer of tangible personal property or provision 
 23.31  of taxable services, that occurs on the premises of the baseball 
 23.32  park and that would be taxable under chapter 297A but for the 
 23.33  exemption under section 297A.25, subdivision 73.  
 23.34     Subd. 2.  [TAX IMPOSED.] The commission may by resolution 
 23.35  impose a tax on sports facilities sales at the rate of seven 
 23.36  percent.  
 24.1      Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 24.2   section must be collected in the manner provided for taxes 
 24.3   imposed under chapter 297A and in accordance with an agreement 
 24.4   between the commission and the commissioner of revenue.  All 
 24.5   revenues, including interest and penalties, derived from the tax 
 24.6   imposed on sports facilities sales must be deposited in the 
 24.7   state treasury and credited to the baseball park account in the 
 24.8   special revenue fund. 
 24.9      Subd. 4.  [TRANSFER TO GENERAL FUND.] (a) The commissioner 
 24.10  of revenue shall annually estimate the amount of the tax imposed 
 24.11  under this section that would have been collected under chapter 
 24.12  297A, if the baseball park had not been financed and constructed 
 24.13  and if the exemption under section 297A.25, subdivision 73, did 
 24.14  not apply.  
 24.15     (b) Each fiscal year that the tax applies under this 
 24.16  section, the commissioner of finance shall transfer the amount 
 24.17  estimated by the commissioner of revenue under paragraph (a) 
 24.18  from the baseball park account in the special revenue fund to 
 24.19  the general fund.  
 24.20     Sec. 13.  [473I.07] [SPORTS MEMORABILIA TAX.] 
 24.21     Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
 24.22  chapter 297A and in this subdivision apply to this section.  
 24.23     (b)(1) "Sports memorabilia" or "sports licensed goods" 
 24.24  means items available for sale to the public that relate to 
 24.25  professional sports, such as: 
 24.26     (i) one-of-a-kind items related to professional sports 
 24.27  figures, teams, or events; 
 24.28     (ii) professional sports trading cards; 
 24.29     (iii) professional sports photographs; 
 24.30     (iv) league and individual athlete licensed items; 
 24.31     (v) professional sporting event licensed items; and 
 24.32     (vi) similar items. 
 24.33     (2) It does not include items licensed by: 
 24.34     (i) a sports regulating authority for the purpose of 
 24.35  proving the item meets the standards of the sport; 
 24.36     (ii) an elementary, high school, college, or university or 
 25.1   an association, league, or other organization operated by, 
 25.2   organized by, comprised of those entities, or regulating 
 25.3   collegiate or high school baseball. 
 25.4      (3) It does not include clothing and wearing apparel, 
 25.5   exempt under section 297A.25, subdivision 8. 
 25.6      Subd. 2.  [AUTHORITY TO IMPOSE.] The commission may by 
 25.7   resolution impose a tax at a rate of up to four percent of the 
 25.8   gross receipts from the sales at retail of sports memorabilia in 
 25.9   the metropolitan area or their use, if the sale was not subject 
 25.10  to the tax.  
 25.11     Subd. 3.  [COLLECTION; DEPOSIT.] A tax imposed under this 
 25.12  section must be collected in the manner provided for taxes under 
 25.13  chapter 297A and in accordance with an agreement between the 
 25.14  commission and the commissioner of revenue.  All revenues, 
 25.15  including interest and penalties, derived from the tax must be 
 25.16  deposited in the state treasury and credited to the baseball 
 25.17  park account in the special revenue fund. 
 25.18     Sec. 14.  [473I.08] [BACKUP TAX AUTHORITY.] 
 25.19     Subdivision 1.  [AUTHORITY AND ORDER OF TAXES.] (a) The 
 25.20  commission may impose the car rental tax under section 297A.135, 
 25.21  subdivision 1a, excluding courtesy rental cars, and the lodging 
 25.22  tax under section 473I.09, only if all the other sources of 
 25.23  revenues pledged to pay the bonds issued under section 473.5993 
 25.24  to finance the baseball park are insufficient as provided by 
 25.25  subdivision 2.  Imposition of the taxes under sections 297A.135, 
 25.26  subdivision 1a, and 473I.09 is subject to the requirement of 
 25.27  this section.  
 25.28     (b) The commissioner must first impose the car rental tax 
 25.29  under section 297A.135, subdivision 1a.  If the revenues from 
 25.30  this tax are insufficient, then the commissioner may impose the 
 25.31  lodging tax under section 473I.09.  
 25.32     Subd. 2.  [SUSPENSION; REIMPOSITION.] Subject to the 
 25.33  limitations on the rates and the order of imposition of the 
 25.34  backup taxes, the commission may provide for the suspension, 
 25.35  reimposition, reduction, or increase in tax collections upon its 
 25.36  determination that the actions are appropriate or necessary for 
 26.1   the purposes for which the tax is imposed, provided that the 
 26.2   balance in the debt service fund or funds, including any reserve 
 26.3   for debt service, must be maintained at least at an amount 
 26.4   sufficient to pay the principal and interest on bonds that will 
 26.5   become due within the next succeeding one-year period and, 
 26.6   except as otherwise provided by the agreement, must not be 
 26.7   maintained at an amount greater than that required to pay 
 26.8   principal and interest on bonds that will become due within the 
 26.9   next succeeding two-year period.  
 26.10     Subd. 3.  [DEPOSIT AND USE OF REVENUES.] The commissioner 
 26.11  of revenue shall pay the net revenues from taxes imposed under 
 26.12  this section and sections 297A.135, subdivision 1a, and 473I.09 
 26.13  to the commission.  The commission shall place these revenues 
 26.14  into the debt service fund or reserve or special funds 
 26.15  established under section 473.5993 or the bond resolution or 
 26.16  trust indenture.  The revenues may be used for payment of debt 
 26.17  service on bonds and revenue anticipation certificates issued 
 26.18  under section 473.5993. 
 26.19     Sec. 15.  [473I.09] [LODGING TAX.] 
 26.20     The commission may levy a tax on the gross receipts from 
 26.21  the furnishing for consideration of lodging for a period of less 
 26.22  than 30 days at a hotel, motel, rooming house, tourist court, or 
 26.23  trailer camp located within the metropolitan area.  The tax may 
 26.24  be imposed notwithstanding the limitations of Laws 1986, chapter 
 26.25  396, section 5, clause (2).  The tax is a sales tax, 
 26.26  supplemental to the general sales tax imposed in chapter 297A.  
 26.27  The tax or taxes may be imposed at whatever rate or rates, up to 
 26.28  three percent, that may be necessary to produce revenues that 
 26.29  the commission determines from year to year to be required, 
 26.30  together with other revenue available to the commission, to pay 
 26.31  when due all debt service on bonds and revenue anticipation 
 26.32  certificates issued under section 473.5993.  The tax must be 
 26.33  reported and paid to the commissioner of revenue with and as 
 26.34  part of the state sales and use taxes, and is subject to the 
 26.35  same penalties, interest, and enforcement provisions.  The 
 26.36  collections of the tax, less refunds and a proportionate share 
 27.1   of the costs of collection, are appropriated to the commissioner 
 27.2   of revenue, who must remit them at least quarterly to the 
 27.3   commission.  The commissioner of revenue shall deduct from the 
 27.4   proceeds remitted to the commission an amount that equals the 
 27.5   direct department costs necessary to administer, audit, and 
 27.6   collect this tax.  The amount deducted must be credited to the 
 27.7   general fund of the state.  
 27.8      Sec. 16.  [473I.10] [PARKING TAX.] 
 27.9      Subdivision 1.  [TAX IMPOSED.] The commission may by 
 27.10  resolution impose a parking tax of not less than $1 per vehicle 
 27.11  per event at the baseball park.  The commission shall consult 
 27.12  with the city about the definition of event parking and the rate 
 27.13  of the tax before imposing or adjusting the tax.  
 27.14     Subd. 2.  [AREA OF APPLICATION.] The tax applies to parking 
 27.15  in the baseball park district designated under section 473I.15 
 27.16  and in any additional area providing event parking, as mutually 
 27.17  agreed by the city and the commission, except for parking at a 
 27.18  parking meter. 
 27.19     Subd. 3.  [COLLECTION.] The tax imposed under this section 
 27.20  must be reported and paid to the commissioner of revenue with 
 27.21  the taxes imposed in chapter 297A and in accordance with an 
 27.22  agreement between the commission and the commissioner of 
 27.23  revenue.  It is subject to the same interest, penalty, and other 
 27.24  provisions provided for sales and use taxes under chapters 289A 
 27.25  and 297A.  The commissioner has the same powers to assess and 
 27.26  collect the tax that are given the commissioner in chapters 270, 
 27.27  289A, and 297A to assess and collect sales and use tax. 
 27.28     Subd. 4.  [DISPOSITION OF PROCEEDS.] All revenues, 
 27.29  including interest and penalties, derived from the tax must be 
 27.30  deposited in the state treasury.  An amount that equals the 
 27.31  direct department costs necessary to administer, audit, and 
 27.32  collect this tax must be credited to the general fund.  The 
 27.33  balance must be credited to the baseball park account in the 
 27.34  special revenue fund.  
 27.35     Sec. 17.  [APPLICATION.] 
 27.36     Sections 1 to 16 apply in the counties of Anoka, Carver, 
 28.1   Dakota, Hennepin, Ramsey, Scott, and Washington. 
 28.2      Sec. 18.  [EFFECTIVE DATE.] 
 28.3      This article is effective the day following final enactment.
 28.4                              ARTICLE 3 
 28.5                      CONSTITUTIONAL AMENDMENTS
 28.6      Section 1.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
 28.7      An amendment is proposed to the Minnesota Constitution, 
 28.8   article XI.  If the amendment is adopted, article XI will be 
 28.9   amended by adding a section to read: 
 28.10     Sec. 15.  A Minnesota sports, recreation, and arts fund is 
 28.11  established in the state treasury.  Money in the fund must be 
 28.12  spent, as provided by law, for facilities for professional 
 28.13  sports and community-based athletic, recreational, and arts 
 28.14  facilities.  Thirty percent of the net proceeds from any 
 28.15  state-operated lottery must be credited to the fund until June 
 28.16  30, 2020. 
 28.17     Sec. 2.  [SUBMISSION TO VOTERS.] 
 28.18     The amendment proposed in section 1 shall be submitted to 
 28.19  the people at the 1998 general election.  The question submitted 
 28.20  shall be: 
 28.21     "Without reducing the 40 percent for the Minnesota 
 28.22  environment and natural resources trust fund, shall the 
 28.23  Minnesota Constitution be amended to require 30 percent of state 
 28.24  lottery revenues to be used to finance facilities for 
 28.25  professional sports, community sports, recreation, and arts 
 28.26  until the year 2020? 
 28.27                                     Yes .......
 28.28                                     No ........"
 28.29                             ARTICLE 4 
 28.30                             GOVERNANCE 
 28.31     Section 1.  Minnesota Statutes 1996, section 473.553, 
 28.32  subdivision 2, is amended to read: 
 28.33     Subd. 2.  [MEMBERSHIP.] The commission shall consist of six 
 28.34  16 members, plus a chair appointed as provided in subdivision 3, 
 28.35  13 of whom shall be voting members and four of whom shall be 
 28.36  nonvoting members.  
 29.1      (a) Six voting members shall be appointed by the city 
 29.2   council of the city in which the stadium metrodome is located 
 29.3   plus a chair appointed as provided in subdivision 3.  If the 
 29.4   baseball park is located other than in the city of Minneapolis, 
 29.5   then three voting members shall be appointed by the city council 
 29.6   of the city of Minneapolis, and three voting members shall be 
 29.7   appointed by the city council of the city in which the baseball 
 29.8   park is located.  
 29.9      (b) Six voting members from the metropolitan area shall be 
 29.10  appointed by the governor.  The governor's appointees shall 
 29.11  reflect fairly the various interests throughout the metropolitan 
 29.12  area that are affected by the commission's ownership and 
 29.13  operation of the metrodome and baseball park.  
 29.14     (c) Four nonvoting members shall be legislators, two state 
 29.15  representatives and two state senators.  One state 
 29.16  representative shall be appointed by the speaker of the house 
 29.17  and one state representative shall be appointed by the minority 
 29.18  caucus leader.  The two state senators shall be appointed by the 
 29.19  subcommittee on committees of the senate committee on rules and 
 29.20  administration. 
 29.21     Sec. 2.  Minnesota Statutes 1996, section 473.553, 
 29.22  subdivision 3, is amended to read: 
 29.23     Subd. 3.  [CHAIR.] The chair shall be appointed by the 
 29.24  governor as the ninth 13th voting member and shall meet all of 
 29.25  the qualifications of a member, except the chair need only 
 29.26  reside outside the city of Minneapolis.  The chair shall preside 
 29.27  at all meetings of the commission, if present, and shall perform 
 29.28  all other duties and functions assigned by the commission or by 
 29.29  law.  The commission may appoint from among its members a 
 29.30  vice-chair to act for the chair during temporary absence or 
 29.31  disability. 
 29.32     Sec. 3.  Minnesota Statutes 1996, section 473.553, 
 29.33  subdivision 4, is amended to read: 
 29.34     Subd. 4.  [QUALIFICATIONS.] A voting member shall not 
 29.35  during a term of office hold the office of metropolitan council 
 29.36  member or be a member of another metropolitan agency or hold any 
 30.1   judicial office or office of state government.  None of the 
 30.2   members appointed by the city council of the city in which 
 30.3   the stadium metrodome is located shall be an elected public 
 30.4   official of that city or of another political subdivision any 
 30.5   part of whose territory is shared with that city.  Each member 
 30.6   shall qualify by taking and subscribing the oath of office 
 30.7   prescribed by the Minnesota Constitution, article V, section 6.  
 30.8   The oath, duly certified by the official administering it, shall 
 30.9   be filed with the chair of the metropolitan council.  
 30.10     Sec. 4.  Minnesota Statutes 1996, section 473.553, 
 30.11  subdivision 5, is amended to read: 
 30.12     Subd. 5.  [TERMS.] The terms of three the voting members 
 30.13  shall end the first Monday in January in the year ending in the 
 30.14  numeral "5".  The terms of the other members and the chair shall 
 30.15  end the first Monday in January in the year ending in the 
 30.16  numeral "7".  The term of each member and the chair, shall be 
 30.17  four years.  The terms shall continue until a successor is 
 30.18  appointed and qualified.  Members may be removed only for 
 30.19  cause.  Each nonvoting member appointed as provided in 
 30.20  subdivision 2, paragraph (c), shall serve at the pleasure of the 
 30.21  respective appointing authority. 
 30.22     Sec. 5.  [REPEALER.] 
 30.23     Minnesota Statutes 1996, section 473.553, subdivision 14, 
 30.24  is repealed.  
 30.25     Sec. 6.  [APPLICATION.] 
 30.26     This article applies in the counties of Anoka, Carver, 
 30.27  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 30.28     Sec. 7.  [EFFECTIVE DATE.] 
 30.29     Sections 1 to 6 are effective the day following final 
 30.30  enactment.