Introduction - 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 1.3 baseball stadium construction and funding; authorizing 1.4 revenue bonds; appropriating money; amending Minnesota 1.5 Statutes 1996, sections 349A.01, by adding 1.6 subdivisions; 349A.10, subdivision 5, and by adding a 1.7 subdivision; 473.551, subdivision 8, and by adding 1.8 subdivisions; 473.552; 473.553, subdivision 1; 1.9 473.556, subdivisions 3, 4, 5, and by adding 1.10 subdivisions; and 609.761, subdivision 2; Minnesota 1.11 Statutes 1997 Supplement, section 297A.259; proposing 1.12 coding for new law in Minnesota Statutes, chapters 1.13 349A; and 473. 1.14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.15 ARTICLE 1 1.16 BASEBALL STADIUM CONSTRUCTION 1.17 Section 1. Minnesota Statutes 1996, section 473.551, 1.18 subdivision 8, is amended to read: 1.19 Subd. 8. [SPORTS FACILITY OR SPORTS FACILITIES.] "Sports 1.20 facility" or "sports facilities" means real or personal property 1.21 comprising a stadium, stadiums, or arenas suitable for 1.22 university or major league professional baseball, for university 1.23 or major league professional football and soccer, or for both, 1.24 or for university or major league hockey or basketball, or for 1.25 both, together with adjacent parking facilities, includingon1.26the effective date of Laws 1994, chapter 648,the metrodome, the 1.27 baseball stadium, the met center, and, upon acquisition by the 1.28 commission, the basketball and hockey arena. 1.29 Sec. 2. Minnesota Statutes 1996, section 473.551, is 2.1 amended by adding a subdivision to read: 2.2 Subd. 18. [BASEBALL STADIUM.] "Baseball stadium" means a 2.3 stadium owned by the commission and designed for playing major 2.4 league professional baseball, as specified in section 473.5991. 2.5 Sec. 3. Minnesota Statutes 1996, section 473.551, is 2.6 amended by adding a subdivision to read: 2.7 Subd. 19. [BASEBALL STADIUM REVENUE.] "Baseball stadium 2.8 revenue" means all revenue received by or payable to the 2.9 commission arising from the ownership and operation of the 2.10 baseball stadium, including, but not limited to, revenues from 2.11 special taxes, revenue bond proceeds, and loans. Baseball 2.12 stadium revenues shall be and remain segregated from other 2.13 revenues of the commission attributable to its ownership and 2.14 operation of the metrodome. 2.15 Sec. 4. Minnesota Statutes 1996, section 473.551, is 2.16 amended by adding a subdivision to read: 2.17 Subd. 20. [BASEBALL TEAM.] "Baseball team" means a major 2.18 league professional baseball team. 2.19 Sec. 5. Minnesota Statutes 1996, section 473.551, is 2.20 amended by adding a subdivision to read: 2.21 Subd. 21. [CITY.] "City" means the city of Minneapolis. 2.22 Sec. 6. Minnesota Statutes 1996, section 473.551, is 2.23 amended by adding a subdivision to read: 2.24 Subd. 22. [OWNER.] "Owner" means the individual or 2.25 individuals who directly or indirectly own an interest in the 2.26 baseball team, but not the commission. 2.27 Sec. 7. Minnesota Statutes 1996, section 473.552, is 2.28 amended to read: 2.29 473.552 [LEGISLATIVE POLICY; PURPOSE.] 2.30 The legislature finds that: 2.31(a)(1) the population in the metropolitan area has a need 2.32 for sports facilities and that this need cannot be met 2.33 adequately by the activities of individual municipalities, by 2.34 agreements among municipalities, or by the private efforts of 2.35 the people in the metropolitan area,; 2.36(b)(2) the commission's ownership and operation of the 3.1 metrodome and met center has met in part the foregoing need and 3.2 has promoted the economic and social interests of the 3.3 metropolitan area, of the state, and of the public, and; 3.4(c)(3) the commission's acquisition of the basketball and 3.5 hockey arena on the terms and conditions provided in sections 3.6 473.598 and 473.599 shall similarly and more fully meet the 3.7 foregoing needs and promote these interests; and 3.8 (4) the commission's construction and operation of the 3.9 baseball stadium by reasonable methods that the legislature and 3.10 the commission may devise, to secure the long-term commitment of 3.11 the baseball team, including, but not limited to, public 3.12 ownership of the baseball team, or the assignment of the 3.13 operation of the baseball stadium to a private entity, to 3.14 further secure and promote these public purposes, will likewise 3.15 meet the foregoing needs and promote these interests. 3.16 It is therefore necessary for the public health, safety and 3.17 general welfare to establish a procedure for the acquisition and 3.18 betterment of sports facilities and to create a metropolitan 3.19 sports facilities commission. 3.20 Sec. 8. Minnesota Statutes 1996, section 473.553, 3.21 subdivision 1, is amended to read: 3.22 Subdivision 1. [GENERAL.] The metropolitan sports 3.23 facilities commission is establishedandas a local governmental 3.24 unit and political subdivision of the state that may exercise 3.25 its powers within the metropolitan area. The commission shall 3.26 be organized, structured, and administered as provided in this 3.27 section. 3.28 Sec. 9. Minnesota Statutes 1996, section 473.556, 3.29 subdivision 3, is amended to read: 3.30 Subd. 3. [ACQUISITION OF PROPERTY.] The commission may 3.31 acquire by lease, purchase, gift, or devise all necessary right, 3.32 title, and interest in and to real or personal property deemed 3.33 necessary to the purposes contemplated by sections 473.551 to 3.34 473.599 within the limits of the metropolitan area. The city, 3.35 county of Hennepin, or the commission may exercise the right of 3.36 eminent domain under chapter 117 to acquire a site for the 4.1 baseball stadium and, from time to time, other property, real 4.2 and personal, that are essential and integral to the successful 4.3 operation of the baseball stadium. 4.4 Sec. 10. Minnesota Statutes 1996, section 473.556, 4.5 subdivision 4, is amended to read: 4.6 Subd. 4. [EXEMPTION OF PROPERTY.] Any real or personal 4.7 property acquired, owned, leased, controlled, used, or occupied 4.8 by the commission for any of the purposes of sections 473.551 to 4.9 473.599 is declared to be acquired, owned, leased, controlled, 4.10 used and occupied for public, governmental, and municipal 4.11 purposes, and shall be exempt from ad valorem taxation by the 4.12 state or any political subdivision of the state, provided that 4.13 such properties shall be subject to special assessments levied 4.14 by a political subdivision for a local improvement in amounts 4.15 proportionate to and not exceeding the special benefit received 4.16 by the properties from the improvement. No possible use of any 4.17 such properties in any manner different from their use under 4.18 sections 473.551 to 473.599 at the time shall be considered in 4.19 determining the special benefit received by the properties. All 4.20 assessments shall be subject to final confirmation by the 4.21 council, whose determination of the benefits shall be conclusive 4.22 upon the political subdivision levying the assessment. 4.23 Notwithstanding the provisions of section 272.01, subdivision 2, 4.24 or 273.19, real or personal property leased by the commission to 4.25 another person for uses related to the purposes of sections 4.26 473.551 to 473.599, including the operation of the metrodome, 4.27 baseball stadium, met center, and, if acquired by the 4.28 commission, the basketball and hockey arena shall be exempt from 4.29 taxation regardless of the length of the lease. The provisions 4.30 of this subdivision, insofar as they require exemption or 4.31 special treatment, shall not apply to any real property 4.32 comprising the met center which is leased by the commission for 4.33 residential, business, or commercial development or other 4.34 purposes different from those contemplated in sections 473.551 4.35 to 473.599. 4.36 Sec. 11. Minnesota Statutes 1996, section 473.556, 5.1 subdivision 5, is amended to read: 5.2 Subd. 5. [FACILITY OPERATION.] The commission may equip, 5.3 improve, operate, manage, maintain, and control the 5.4 metrodome, baseball stadium, met center, basketball and hockey 5.5 arena and sports facilities constructed, remodeled, or acquired 5.6 under the provisions of sections 473.551 to 473.599. 5.7 Sec. 12. Minnesota Statutes 1996, section 473.556, is 5.8 amended by adding a subdivision to read: 5.9 Subd. 18. [PRIVATE CONTRIBUTIONS.] Notwithstanding the 5.10 requirements of subdivision 9, the commission may accept grants, 5.11 gifts, or loans from public or private sources to further its 5.12 public purposes with respect to the baseball stadium. Private 5.13 contributions must be solicited by the commission, the owner, 5.14 and the baseball team. The contributions may be used by the 5.15 commission for any purpose under sections 473.5991 to 473.5995, 5.16 including, but not limited to, payment of revenue bonds or 5.17 revenue anticipation certificates issued under section 473.5993, 5.18 or reducing or eliminating any ownership, operations, or other 5.19 obligations or liabilities of the commission under sections 5.20 473.5991 to 473.5995. 5.21 Sec. 13. Minnesota Statutes 1996, section 473.556, is 5.22 amended by adding a subdivision to read: 5.23 Subd. 19. [COMPATIBLE USES.] The commission may do what it 5.24 considers appropriate to encourage and develop sports and 5.25 recreational opportunities, professional or otherwise, and make 5.26 arrangements for the use of the baseball stadium for sports, 5.27 recreation, entertainment, civic, exposition, and other uses not 5.28 incompatible with its primary functions. 5.29 Sec. 14. Minnesota Statutes 1996, section 473.556, is 5.30 amended by adding a subdivision to read: 5.31 Subd. 20. [BASEBALL STADIUM REVENUE.] The commission may 5.32 spend baseball stadium revenue to pay any reasonable expenses 5.33 necessary to administer, operate, improve, or maintain the 5.34 baseball stadium or to pay debt service on bonds or other 5.35 obligations sold for purposes of the baseball stadium. 5.36 Sec. 15. [473.5991] [BASEBALL STADIUM.] 6.1 Subdivision 1. [ESSENTIAL CHARACTERISTICS.] The baseball 6.2 stadium must be designed for playing major league baseball and 6.3 no other major league spectator sport that uses a surface or 6.4 seating configuration different from major league baseball. The 6.5 baseball stadium must have a retractable roof. The baseball 6.6 stadium may include parking or other transit facilities for 6.7 patrons, performers, and employees and may include other 6.8 amenities to enhance or make the use of the baseball stadium 6.9 convenient and predictably accessible to all. 6.10 Subd. 2. [DESIGN.] The commission, in consultation with 6.11 the baseball team, shall determine the program elements of the 6.12 baseball stadium, including, but not limited to, capacity, 6.13 suites, club seats, clubs, and amenities. The commission, in 6.14 consultation with the baseball team, shall also determine the 6.15 baseball stadium design, and the selection of the project 6.16 construction team, including the architect and general 6.17 contractor. 6.18 Subd. 3. [LOCATION.] The commission, after consultation 6.19 with the baseball team and the city shall select a site for the 6.20 baseball stadium within the city. The process to select the 6.21 site must include a procedure to set minimum specifications for 6.22 the site, including the necessary or desirable appropriate 6.23 economic development possibilities on adjacent property. The 6.24 city must donate the site or funds sufficient to acquire the 6.25 site to the commission. The process must consider the capture 6.26 and use of incremental revenue paid to or enjoyed by public 6.27 entities, as a result of or in anticipation of the baseball 6.28 stadium, as revenue sources for funding the baseball stadium. 6.29 Subd. 4. [RELATED INFRASTRUCTURE.] The commission shall 6.30 negotiate with the appropriate governmental entities, including 6.31 the city of Minneapolis, Hennepin county, and the metropolitan 6.32 council for necessary or appropriate infrastructure improvements 6.33 to support the existence and operation of the baseball stadium, 6.34 the movement of patrons to and from the stadium, and their 6.35 comfort, safety, and convenience while in and around the 6.36 baseball stadium. The city must donate its share of 7.1 infrastructure improvements. 7.2 Subd. 5. [CONSTRUCTION METHODS.] The commission may 7.3 contract for construction materials, supplies, and equipment in 7.4 accordance with section 471.345, except that the commission may 7.5 employ persons, firms, or corporations to perform one or more or 7.6 all of the functions of architect, engineer, construction 7.7 manager, or contractor for both design and construction, with 7.8 respect to all or part of a project to build or remodel sports 7.9 facilities. Contractors shall be selected through the process 7.10 of public bidding, provided that the commission may narrow the 7.11 listing of eligible bidders to those the commission determines 7.12 to possess sufficient expertise to perform the intended 7.13 functions and the commission may negotiate with the three lowest 7.14 responsible bidders to achieve the best and final offer. The 7.15 commission may require a construction manager to certify a 7.16 construction price and completion date to the commission. The 7.17 commission may require the posting of a bond in an amount 7.18 determined by the commission to cover any costs that may be 7.19 incurred over and above the certified price, including, but not 7.20 limited to, costs incurred by the commission or loss of revenues 7.21 resulting from incomplete construction on the completion date 7.22 and any other obligations the commission may require the 7.23 construction manager to bear. The commission shall secure 7.24 surety bonds as required in section 574.26 securing payment of 7.25 just claims in connection with all public work undertaken by 7.26 it. Persons entitled to the protection of the bonds may enforce 7.27 them as provided in sections 574.28 to 574.32 and are not 7.28 entitled to a lien on any property of the commission under 7.29 sections 514.01 to 514.16. 7.30 Subd. 6. [STADIUM COSTS.] The legislature intends that all 7.31 costs of constructing, operating, and maintaining the baseball 7.32 stadium will be paid by the combination of user charges, special 7.33 taxes, and lottery proceeds provided for by this act and that 7.34 none of those costs will ever be paid by a tax of statewide 7.35 application. 7.36 Sec. 16. [473.5992] [DETERMINATIONS BEFORE BONDS SOLD.] 8.1 Subdivision 1. [WHEN.] The commission shall make all the 8.2 determinations required by this section before it authorizes the 8.3 sale of bonds under section 473.5993. 8.4 Subd. 2. [30-YEAR USE AGREEMENT.] (a) The commission has 8.5 executed agreements with the owners and the baseball team to use 8.6 the baseball stadium for all scheduled regular season and all 8.7 post-season division, league, and world series championship 8.8 playoffs and home games for no less than 30 years, except as 8.9 provided in this subdivision. The baseball team must make 8.10 annual payments of no less than $2,000,000 to the commission for 8.11 the use of the facility. 8.12 (b) The agreements shall afford to the commission, or to 8.13 another public entity as the commission deems appropriate, the 8.14 rights and remedies that are deemed necessary and appropriate to 8.15 provide reasonable assurances that the baseball team and the 8.16 owner will comply with the agreements throughout its 30-year 8.17 term. The remedies may include equitable relief, including 8.18 specific performance and injunctive relief, the payment of 8.19 liquidated damages equivalent to direct and consequential 8.20 damages incurred by reason of the breach of the agreements, and 8.21 any additional remedies or security arrangements the commission 8.22 reasonably determines to be effective in assuring the baseball 8.23 team will play the required games in the baseball stadium 8.24 throughout the 30-year term. In the enforcement of the 8.25 agreements, the commission may elect from among the rights and 8.26 remedies provided for in this paragraph and in paragraph (c) and 8.27 that election shall not extinguish the commission's other rights 8.28 and remedies except as may otherwise be provided by law. It is 8.29 the intent of the legislature that a material breach of an 8.30 agreement between the commission and all other public bodies and 8.31 professional athletic teams which commit to the long-term 8.32 playing of major league games at public facilities shall be 8.33 deemed to cause irreparable harm for which no adequate remedy at 8.34 law may be available and that the grant of equitable relief to 8.35 remedy the breach is in the public interest and shall be 8.36 liberally so construed. 9.1 Subd. 3. [OWNER'S ABILITY TO COMPLY.] The baseball team 9.2 and the owner have provided information sufficient to satisfy 9.3 the commission of the baseball team's and the owner's ability to 9.4 comply with the terms of the 30-year agreement. 9.5 Subd. 4. [OWNER'S DONATION.] The owner has made an 9.6 enforceable pledge, in a form satisfactory to the commission, to 9.7 make a donation to the commission of cash or marketable 9.8 securities in an amount not less than $50,000,000 to help pay 9.9 the costs of constructing the baseball stadium, of which 9.10 $25,000,000 must be paid by April 1, 1998, and the remainder 9.11 must be paid before the first opening day game at the baseball 9.12 stadium or April 1, 2001, whichever occurs first. 9.13 Subd. 5. [NAMING RIGHTS.] The commission has entered into 9.14 an agreement with the baseball team that provides to the 9.15 baseball team all revenues from naming rights and other project 9.16 capital opportunities. 9.17 Subd. 6. [APPROVAL REQUIRED.] The owner must obtain major 9.18 league baseball approval of the ownership structure contemplated 9.19 by this act. 9.20 Subd. 7. [COMMISSION TITLE TO PROPERTY.] The commission 9.21 has acquired, has contracted to acquire, or has initiated 9.22 eminent domain proceedings to acquire, title to all real 9.23 property including all easements and other appurtenances needed 9.24 for the construction and operation of the baseball stadium and 9.25 has received a grant of money or has entered into agreements 9.26 sufficient to ensure the receipt of money, at the time and in 9.27 the amount required, to make any payment upon which the 9.28 commission's acquisition of title and possession of the real 9.29 property is conditioned. 9.30 Subd. 8. [SUFFICIENT MONEY FOR CLEARING PROPERTY.] The 9.31 commission has received a grant of money or entered into 9.32 agreements sufficient in the judgment of the commission to 9.33 ensure the receipt of money, at the time and in the amount 9.34 required, to pay all costs of clearing the real property needed 9.35 for the construction and operation of the baseball stadium of 9.36 all improvements thereon which would interfere with the 10.1 construction or operation of the baseball stadium. 10.2 Subd. 9. [GUARANTEED MAXIMUM PRICE.] The commission has 10.3 executed agreements to provide for the construction of the 10.4 baseball stadium for a guaranteed maximum price and substantial 10.5 completion date of April 1, 2001, and that include performance 10.6 bonds in an amount at least equal to 100 percent of the 10.7 guaranteed maximum price to cover any costs that may be incurred 10.8 over and above the guaranteed maximum price, including, but not 10.9 limited to, costs incurred by the commission or loss of revenues 10.10 resulting from incomplete construction on the substantial 10.11 completion date. 10.12 Subd. 10. [NO STRIKES OR LOCKOUTS.] The commission has 10.13 executed agreements with appropriate labor organizations and 10.14 construction contractors that provide that no labor strikes or 10.15 management lockouts will delay construction. 10.16 Subd. 11. [BASEBALL TEAM TO OPERATE STADIUM.] The 10.17 commission has executed agreements with the owner and the 10.18 baseball team that provide for operation and maintenance of the 10.19 baseball stadium at their expense. The agreements must provide 10.20 that: 10.21 (1) the baseball team will manage, maintain, operate, and 10.22 repair the baseball stadium and, with the approval of the 10.23 commission, may contract with one or more entities to operate 10.24 part or all of the baseball stadium; and 10.25 (2) the baseball team, with the approval of the commission, 10.26 shall contract with one or more concessionaires to provide food 10.27 and beverages for the baseball stadium. 10.28 The agreements must provide criteria for maintenance and 10.29 operation of the baseball stadium and remedies as referred to in 10.30 subdivision 2, paragraph (b), that may be exercised by the 10.31 commission to ensure that the criteria are met. The agreements 10.32 must also provide that the baseball team must provide annually 10.33 audited financial statements. 10.34 Subd. 12. [MANAGEMENT OF BASEBALL TEAM.] The commission 10.35 and the owner have entered into an agreement that obligates the 10.36 owner to manage the baseball team in good faith so as to achieve 11.1 profitable operation. 11.2 Subd. 13. [COMMISSION PARTICIPATION IN BASEBALL TEAM 11.3 BUDGETING PROCESS AND CONTRACTS.] The commission and the owner 11.4 have executed an agreement that provides for a procedure for the 11.5 commission to participate in the annual budgeting process of the 11.6 baseball team commensurate with its contractual, ownership, 11.7 voting, and profit sharing interest, and in the negotiations of 11.8 any operations, concessions, naming rights, advertising, or any 11.9 other contracts or agreements pertinent to the operation and 11.10 maintenance of the baseball stadium between the owner and any 11.11 other third party. 11.12 Subd. 14. [CAPITAL REPAIRS AND IMPROVEMENTS.] The 11.13 commission has established a baseball stadium capital repair and 11.14 improvement account and has entered into an agreement with the 11.15 owner and the baseball team whereby the owner and the baseball 11.16 team will pay $700,000 a year into the account to be used by the 11.17 commission to make any capital repairs, improvements, 11.18 enhancements, and betterments necessary to maintain the baseball 11.19 stadium. The commission is not obligated to spend money for 11.20 these purposes in excess of the balance in the capital repair 11.21 and improvement account. 11.22 Subd. 15. [REVENUES TO BE SUFFICIENT.] The anticipated 11.23 baseball stadium revenue is an amount sufficient to pay when due 11.24 all debt service on the revenue bonds and all administrative 11.25 expenses and the anticipated revenue to the baseball team is an 11.26 amount sufficient to pay all operating and maintenance expenses 11.27 of the baseball stadium. 11.28 Subd. 16. [GAMING MACHINE CONTRACT.] The director of the 11.29 state lottery has entered into a contract with a person to 11.30 provide locations for and to provide services related to gaming 11.31 machines as defined in section 349A.01 and to conduct games as 11.32 permitted under section 349A.19. 11.33 Sec. 17. [473.5993] [DEBT OBLIGATIONS FOR BASEBALL 11.34 STADIUM.] 11.35 Subdivision 1. [PURPOSES.] The commission may by 11.36 resolution authorize the sale and issuance of its revenue bonds 12.1 for the following purposes after determining that the conditions 12.2 imposed by section 473.5992 have been or will be met in material 12.3 respects: 12.4 (1) to acquire and better facilities for a baseball 12.5 stadium, including, but not limited to, site assembly and 12.6 construction; 12.7 (2) to reimburse the commission for its costs in making the 12.8 determinations required by section 473.5992, whenever incurred; 12.9 (3) to pay issuance costs and costs of bond insurance or 12.10 other credit enhancement for the bonds and to establish 12.11 necessary reserves for operating and debt service costs; 12.12 (4) to refund bonds issued under this section; and 12.13 (5) to fund judgments entered by any court against the 12.14 commission in matters relating to the commission's functions 12.15 related to the baseball stadium. 12.16 Subd. 2. [AMOUNT.] The principal amount of the bonds 12.17 issued under subdivision 1, clause (1), exclusive of any 12.18 original issue discount, may not exceed $350,000,000. 12.19 Subd. 3. [TAXABILITY.] The bonds may be issued as 12.20 tax-exempt revenue bonds or as taxable revenue bonds in the 12.21 proportions that the commission may determine. 12.22 Subd. 4. [PROCEDURE.] The bonds shall be sold, issued, and 12.23 secured in the manner provided in chapter 475 for bonds payable 12.24 solely from revenues and the commission has the same powers and 12.25 duties as a municipality and its governing body in issuing bonds 12.26 under that chapter. The bonds may be sold at any price and at 12.27 public or private sale as determined by the commission. An 12.28 election is not required. 12.29 Subd. 5. [NOT A GENERAL OR MORAL OBLIGATION.] The bonds 12.30 are payable solely from baseball stadium revenues. The bonds 12.31 are not a general or moral obligation or debt of the commission, 12.32 any other political subdivision of the state, or the state, and 12.33 must not be included in the net debt of any city, county, or 12.34 other subdivision of the state for the purpose of any net debt 12.35 limitation. The state does not assume any obligation or 12.36 liability for bonds sold or issued under this section. 13.1 Subd. 6. [BROKERAGE FIRM AGREEMENT.] Before issuing debt 13.2 under this section, the commission must enter into an agreement 13.3 with the brokerage firm to be used in connection with the sale 13.4 and issuance of the bonds or revenue anticipation certificates 13.5 under this section, guaranteeing that fees and charges payable 13.6 to the brokerage firm under the agreement, including any 13.7 underwriting discounts, do not exceed fees and charges 13.8 customarily payable in connection with the sale and issuance of 13.9 bonds or revenue anticipation certificates. 13.10 Subd. 7. [SECURITY.] Baseball stadium revenues must be and 13.11 remain pledged and appropriated for the benefit of and 13.12 enforceable by the bondholders or their trustee, for the payment 13.13 of all necessary and reasonable expenses of the operation, 13.14 administration, maintenance, and debt service of the baseball 13.15 stadium until all bonds and certificates issued under this 13.16 section are fully paid or discharged in accordance with law. 13.17 Bonds issued under this section may be secured by a bond 13.18 resolution, or by a trust indenture entered into by the 13.19 commission with a corporate trustee within or outside the state, 13.20 which must define the baseball stadium revenues pledged for the 13.21 payment and security of the bonds. The pledge is a valid charge 13.22 on the baseball stadium revenues from the date when bonds are 13.23 first issued or secured under the resolution or indenture and 13.24 secure the payment of principal and interest and redemption 13.25 premiums when due and the maintenance at all times of a reserve 13.26 securing the payments. No mortgage of or security interest in 13.27 any tangible real or personal property is granted to the 13.28 bondholders or the trustee, but they have a valid security 13.29 interest in all baseball stadium revenues of the commission as 13.30 against the claims of all other persons in tort, contract, or 13.31 otherwise, irrespective of whether the parties have notice of 13.32 the claims, and without possession or filing as provided in the 13.33 Uniform Commercial Code or any other law. In the bond 13.34 resolution or trust indenture, the commission may make any 13.35 covenants that are determined to be usual and reasonably 13.36 necessary for the protection of the bondholders. No pledge, 14.1 mortgage, covenant, or agreement securing bonds may be impaired, 14.2 revoked, or amended by law or by action of the commission, 14.3 except in accordance with the terms of the resolution or 14.4 indenture under which the bonds are issued, until the 14.5 obligations of the commission under the resolution or indenture 14.6 are fully discharged. 14.7 Subd. 8. [DEBT SERVICE RESERVE ACCOUNT.] The commission 14.8 must establish a debt service reserve account or provide 14.9 adequate insurance in lieu of this account. The commission 14.10 shall deposit in the account baseball stadium revenue to ensure 14.11 payment of the bonds issued under this section as provided in 14.12 the bond resolution or trust indenture. 14.13 Subd. 9. [REVENUE ANTICIPATION CERTIFICATES.] Upon final 14.14 adoption by the commission of an annual budget of the 14.15 commission, including the baseball stadium revenues, and in 14.16 anticipation of the baseball stadium revenues, but subject to 14.17 any limitation or prohibition in a bond resolution or indenture, 14.18 the commission may authorize the issuance, negotiation, and 14.19 sale, in the form and manner and upon the terms it may 14.20 determine, of revenue anticipation certificates. The principal 14.21 amount of the certificates outstanding may at no time exceed 25 14.22 percent of the total amount of the revenues anticipated. The 14.23 certificates must mature not later than three months after the 14.24 close of the budget year. So much of the anticipated baseball 14.25 stadium revenues as may be needed for the payment of the 14.26 certificates and interest thereon shall be paid into a special 14.27 debt service fund established for the certificates in the 14.28 commission's financial records. If for any reason the 14.29 anticipated revenues are insufficient, the certificates and 14.30 interest must be paid from the first revenues received, subject 14.31 to any limitation or prohibition in a bond resolution or 14.32 indenture. The proceeds of the certificates may be used for any 14.33 purpose for which the anticipated revenues may be used or for 14.34 any purpose for which bond proceeds under subdivision 1 may be 14.35 used. 14.36 Subd. 10. [VALIDITY OF DEBT ISSUED.] The validity of any 15.1 bonds issued under this section and the obligations of the 15.2 commission related to them must not be conditioned upon or 15.3 impaired by the commission's determinations made under section 15.4 473.5992. For the purposes of issuing bonds, the determinations 15.5 made by the commission are conclusive, and the commission is 15.6 obligated for the security and payment of the bonds, but only 15.7 from the sources pledged thereto, irrespective of determinations 15.8 that may be erroneous, inaccurate, or otherwise mistaken. 15.9 Sec. 18. [473.5994] [BASEBALL STADIUM ACCOUNT.] 15.10 The baseball stadium account is created in the special 15.11 revenue fund in the state treasury. All money credited to the 15.12 baseball stadium account is appropriated to the commissioner of 15.13 revenue for payment to the commission for purposes of the 15.14 baseball stadium. The commission shall use all receipts from 15.15 the baseball stadium account to administer, operate, and 15.16 maintain the baseball stadium and to pay debt service on bonds 15.17 or other obligations sold for purposes of the baseball stadium. 15.18 Sec. 19. [INSTRUCTION TO REVISOR.] 15.19 In the next edition of Minnesota Statutes, the revisor of 15.20 statutes shall change references to Minnesota Statutes, sections 15.21 "473.551 to 473.599" to read "473.551 to 473.5994." 15.22 Sec. 20. [APPLICATION.] 15.23 This article applies in the counties of Anoka, Carver, 15.24 Dakota, Hennepin, Ramsey, Scott, and Washington. 15.25 Sec. 21. [EFFECTIVE DATE.] 15.26 This article is effective the day after its final enactment. 15.27 ARTICLE 2 15.28 BASEBALL STADIUM FUNDING SOURCES 15.29 Section 1. Minnesota Statutes 1997 Supplement, section 15.30 297A.259, is amended to read: 15.31 297A.259 [LOTTERY TICKETS; IN LIEU TAX.] 15.32 Sales of state lottery tickets are exempt from the tax 15.33 imposed under section 297A.02. The state lottery must on or 15.34 before the 20th day of each month transmit to the commissioner 15.35 of revenue an amount equal to the gross receipts from the sale 15.36 of lottery tickets for the previous month multiplied by the tax 16.1 rate under section 297A.02, subdivision 1. The gross receipts 16.2 from the operation of gaming machines operated by the state 16.3 lottery and the conduct of card games under section 349A.19 are 16.4 exempt from the tax imposed under section 297A.02 and the in 16.5 lieu tax payment under this section. The resulting payment is 16.6 in lieu of the sales tax that otherwise would be imposed by this 16.7 chapter. The commissioner shall deposit the money transmitted 16.8 as provided by section 297A.44 and the money must be treated as 16.9 other proceeds of the sales tax. Gross receipts for purposes of 16.10 this section mean the proceeds of the sale of tickets before 16.11 deduction of a commission or other compensation paid to the 16.12 vendor or retailer for selling tickets. 16.13 Sec. 2. Minnesota Statutes 1996, section 349A.01, is 16.14 amended by adding a subdivision to read: 16.15 Subd. 14. [GAMING MACHINE.] "Gaming machine" means any 16.16 machine in which a coin, token, or currency are deposited in 16.17 order to play a game that uses a video display and 16.18 microprocessors or an electromechanical device with a spinning 16.19 reel. 16.20 Sec. 3. Minnesota Statutes 1996, section 349A.01, is 16.21 amended by adding a subdivision to read: 16.22 Subd. 15. [GAMING MACHINE GAME.] "Gaming machine game" 16.23 means a game operated by a gaming machine as authorized by the 16.24 director. 16.25 Sec. 4. Minnesota Statutes 1996, section 349A.01, is 16.26 amended by adding a subdivision to read: 16.27 Subd. 16. [GAMING MACHINE PLAY.] "Gaming machine play" 16.28 means an electronic record that proves participation in a gaming 16.29 machine game. 16.30 Sec. 5. Minnesota Statutes 1996, section 349A.01, is 16.31 amended by adding a subdivision to read: 16.32 Subd. 17. [ADJUSTED GROSS GAMING MACHINE 16.33 REVENUE.] "Adjusted gross gaming machine revenue" means the sum 16.34 of all money received by the lottery for gaming machine plays, 16.35 less the amount paid out in prizes for gaming machine games. 16.36 Sec. 6. Minnesota Statutes 1996, section 349A.01, is 17.1 amended by adding a subdivision to read: 17.2 Subd. 18. [ADJUSTED GROSS CARD REVENUE.] "Adjusted gross 17.3 card revenue" means the sum of money received by the lottery 17.4 from playing games authorized under section 349A.19, less the 17.5 amount paid out in prizes for those games. 17.6 Sec. 7. Minnesota Statutes 1996, section 349A.10, 17.7 subdivision 5, is amended to read: 17.8 Subd. 5. [DEPOSIT OF NET PROCEEDS.] Within 30 days after 17.9 the end of each month, the director shall deposit in the state 17.10 treasury the net proceeds of the lottery, which is the balance 17.11 in the lottery fund after transfers to the lottery prize fund 17.12 and credits to the lottery operations account. Of the net 17.13 proceeds, 40 percent must be credited to the Minnesota 17.14 environment and natural resources trust fund, and the remainder 17.15 must be credited to the special revenue fund created in section 17.16 16A.67, subdivision 3. Money credited to the special revenue 17.17 fund must be transferred to the debt service fund established in 17.18 section 16A.67, subdivision 4, at the times and in the amounts 17.19 determined by the commissioner of finance to be necessary to 17.20 provide for the payment and security of bonds issued pursuant to 17.21 section 16A.67. On or before the tenth day of each month, any 17.22 money in the special revenue fund not required to be transferred 17.23 to the debt service fund or to the baseball stadium account 17.24 under subdivision 5a must be transferred to the general fund. 17.25 Sec. 8. Minnesota Statutes 1996, section 349A.10, is 17.26 amended by adding a subdivision to read: 17.27 Subd. 5a. [BASEBALL STADIUM ACCOUNT.] After any necessary 17.28 amounts have been transferred to the debt service account 17.29 created in section 16A.67, subdivision 4, an amount equal to the 17.30 net proceeds attributable to gaming machines, the net proceeds 17.31 attributable to card games under section 349A.19, and the net 17.32 proceeds attributable to the instant lottery game with a 17.33 baseball theme required under section 349A.31 must be 17.34 transferred from the special revenue account created in section 17.35 16A.67, subdivision 3, to the baseball stadium account created 17.36 in section 473.5994. 18.1 Sec. 9. [349A.16] [VENDOR CONTRACTS; GAMING MACHINES; CARD 18.2 GAMES.] 18.3 Subdivision 1. [PROCUREMENT CONTRACTS.] The director may 18.4 enter into contracts for the procurement of gaming machines or 18.5 any other contract necessary for maintaining, advertising, 18.6 promoting, or monitoring gaming machines or for conducting, 18.7 promoting, or advertising card games authorized under section 18.8 349A.19. In entering into a contract under this section, the 18.9 director must comply with the requirements of section 349A.07. 18.10 Subd. 2. [LOCATION CONTRACT.] The director may enter into 18.11 a contract with a person to provide locations for and to provide 18.12 services related to gaming machines, and to conduct card games 18.13 as permitted under section 349A.19. Contracts entered into 18.14 under this section are not subject to chapter 16B. The director 18.15 may only enter a contract under this subdivision with a person 18.16 who holds a class A license under chapter 240. The gaming 18.17 machines may only be placed, and the card games permitted under 18.18 section 349A.19 may only be conducted, at the racetrack for 18.19 which the class A license under chapter 240 was issued. 18.20 Subd. 3. [CONFLICT OF INTEREST.] The director or any 18.21 employee of the lottery, or a member of their immediate family 18.22 residing in the same household, may not have any personal 18.23 pecuniary interest in any vendor holding a contract with the 18.24 lottery under this section. 18.25 Sec. 10. [349A.17] [GAMING MACHINES.] 18.26 Subdivision 1. [SPECIFICATIONS.] Gaming machines must: 18.27 (1) maintain on nonresettable meters a permanent record, 18.28 capable of being printed out, of all transactions by the machine 18.29 and all entries into the machine; and 18.30 (2) be capable of being linked electronically to a central 18.31 communication system to provide auditing program information as 18.32 required by the director. 18.33 Subd. 2. [GAMES.] The director shall specify the games 18.34 that may be played on a gaming machine as set forth under 18.35 section 349A.04. 18.36 Subd. 3. [EXAMINATION OF MACHINES.] The director shall 19.1 examine prototypes of gaming machines and require that the 19.2 manufacturer of the machine pay the cost of the examination. 19.3 The director may contract for the examination of gaming machines. 19.4 Subd. 4. [TESTING OF MACHINES.] The director may require 19.5 working models of a gaming machine transported to the locations 19.6 the director designates for testing, examination, and analysis. 19.7 The manufacturer shall pay all costs of any testing, 19.8 examination, analysis, and transportation of the machine model. 19.9 Subd. 5. [PRIZES.] A person who plays a gaming machine 19.10 agrees to be bound by the rules and game procedures applicable 19.11 to that particular gaming machine game. The player acknowledges 19.12 that the determination of whether the player has won a prize is 19.13 subject to the rules and game procedures adopted by the 19.14 director, claim procedures established by the director for the 19.15 game, and any confidential or public validation tests 19.16 established by the director for that game. A person under 18 19.17 years of age may not claim a prize from the operation of a 19.18 gaming machine. A prize claimed from the play of a gaming 19.19 machine game is not subject to the provisions of section 19.20 349A.08, subdivision 8. 19.21 Subd. 6. [PROHIBITIONS.] (a) A person under the age of 18 19.22 years may not play a game on a gaming machine and the lottery 19.23 may not allow a person under the age of 18 years to play a game 19.24 on a gaming machine. 19.25 (b) The director or any employee of the lottery, or a 19.26 member of their immediate family residing in the same household, 19.27 may not play a game on a gaming machine or receive a prize from 19.28 the operation of a gaming machine. 19.29 Subd. 7. [COMPULSIVE GAMBLING NOTICE.] The director shall 19.30 prominently post in the area where the gaming machines are 19.31 located the toll-free telephone number established by the 19.32 commissioner of human services in connection with the compulsive 19.33 gambling program established under section 245.98. 19.34 Sec. 11. [349A.18] [ADJUSTED GROSS GAMING MACHINE 19.35 REVENUE.] 19.36 Subdivision 1. [VIDEO LOTTERY LICENSEE.] The video lottery 20.1 licensee shall retain 19 percent of adjusted gross gaming 20.2 machine revenue to be distributed as follows: 20.3 (1) six percent of adjusted gross gaming machine revenue to 20.4 be set aside and used for purses for live races conducted by the 20.5 video lottery licensee at its facility; and 20.6 (2) 13 percent to the video lottery licensee. 20.7 Subd. 2. [LOTTERY OPERATIONS.] The director may not credit 20.8 in any fiscal year more than 15 percent of adjusted gross gaming 20.9 machine revenue to the lottery operations account established 20.10 under section 349A.10, subdivision 3, for the operation of the 20.11 video lottery terminal system. 20.12 Subd. 3. [OPTIONAL ARRANGEMENT.] The amount set aside for 20.13 purses and the amount retained by the licensee may be adjusted 20.14 by written agreement between the licensee and the horseperson's 20.15 organization representing the majority of horsepersons who have 20.16 raced at the facility during the 24 months immediately preceding 20.17 the agreement, but the total amount cannot exceed 19 percent of 20.18 the net terminal income. 20.19 Subd. 4. [DEPOSIT OF RECEIPTS.] The director may require 20.20 the video lottery licensee to deposit in a separate account to 20.21 the credit of the lottery, in banks designated by the director, 20.22 adjusted gross gaming machine revenue, less money retained by 20.23 the video lottery licensee as set forth in subdivision 1, and 20.24 allow money deposited to be transferred to the lottery through 20.25 electronic fund transfer. 20.26 Subd. 5. [PENALTY; INTEREST.] The video lottery licensee 20.27 shall pay interest at the rate established for purposes of 20.28 section 349A.10, subdivision 4, paragraph (c), on any amount 20.29 owed to the director and not paid within the time prescribed by 20.30 the director. 20.31 Subd. 6. [DEPOSIT.] Notwithstanding section 349A.10, 20.32 subdivision 5, within 30 days after the end of each month, the 20.33 director shall deposit in the state treasury the adjusted gross 20.34 gaming machine revenue, less amounts paid to the video lottery 20.35 licensee, amounts paid to the commissioner of administration 20.36 under subdivision 7, and amounts credited to the lottery 21.1 operations account. This revenue shall be retained in the state 21.2 treasury in the baseball stadium account created in section 21.3 473.5994. 21.4 Subd. 7. [INDIAN BENEFIT GRANTS.] The commissioner of 21.5 administration shall receive four percent of adjusted gross 21.6 gaming machine revenue to be administered in grants to 21.7 nonreservation Indian projects. The purpose of these projects 21.8 is to encourage the economic and social well-being of Indians 21.9 residing in Minnesota who are not living on reservations or 21.10 receiving proceeds from tribal gambling operations. 21.11 Subd. 8. [LOCAL SHARE.] The city of Shakopee and Scott 21.12 county shall each receive a one-half percent share of adjusted 21.13 gross gaming machine revenue. 21.14 Sec. 12. [349A.19] [CARD GAMES.] 21.15 Subdivision 1. [DEFINITIONS.] For the purposes of this 21.16 section, "blackjack" means the banking card game that involves 21.17 the use of one or more decks of playing cards, the purpose of 21.18 which is to reach the number "21" (or as close thereto as 21.19 possible without exceeding the number "21") through the 21.20 cumulative addition of cards dealt to the player and the house. 21.21 Subd. 2. [AUTHORIZATION.] The director may conduct the 21.22 game of blackjack at a location authorized under section 21.23 349A.16, subdivision 2, subject to the requirements of this 21.24 section. 21.25 Subd. 3. [GAME PROCEDURES.] The director shall adopt game 21.26 procedures under section 349A.04 for conducting blackjack games. 21.27 Subd. 4. [PROHIBITIONS.] (a) A person under the age of 18 21.28 years may not win a prize from the game of blackjack conducted 21.29 under this section and the lottery may not permit a person under 21.30 the age of 18 years to play a game of blackjack under this 21.31 section. 21.32 (b) The director or any employee of the lottery, or a 21.33 member of their immediate family residing in the same household, 21.34 may not play a game authorized by this section or receive a 21.35 prize from a game authorized by this section. 21.36 Subd. 5. [COMPULSIVE GAMBLING NOTICE.] The director shall 22.1 prominently post in the area where the games authorized by this 22.2 section are conducted the toll-free telephone number established 22.3 by the commissioner of human services in connection with the 22.4 compulsive gambling program established under section 245.98. 22.5 Subd. 6. [PRIZES.] A person who plays a game conducted 22.6 under this section agrees to be bound by the rules and game 22.7 procedures applicable to that game. The player acknowledges 22.8 that the determination of whether the player has won a prize is 22.9 subject to the rules and game procedures adopted by the 22.10 director, claim procedures established by the director for that 22.11 game, and any confidential or public validation tests 22.12 established by the director for that game. A prize claimed from 22.13 the play of a game under this section is not subject to section 22.14 349A.08, subdivision 8. 22.15 Subd. 7. [DEPOSIT OF RECEIPTS.] The director shall deposit 22.16 the adjusted gross card revenue into the lottery fund. 22.17 Subd. 8. [LOTTERY OPERATIONS.] The director may not credit 22.18 in any fiscal year more than 50 percent of the adjusted gross 22.19 card revenue to the lottery operations account established under 22.20 section 349A.10, subdivision 3, for conducting, promoting, and 22.21 advertising card games authorized under this section. 22.22 Sec. 13. [349A.20] [LOCAL LICENSES.] 22.23 No political subdivision may require a local license to 22.24 operate a gaming machine, restrict or regulate the placement of 22.25 a gaming machine, restrict or regulate the conduct of games 22.26 authorized under section 349A.19, or impose a tax or fee on the 22.27 business of operating gaming machines or the conduct of games 22.28 under section 349A.19. 22.29 Sec. 14. [349A.21] [CRIMINAL HISTORY.] 22.30 The director has access to all criminal history data 22.31 compiled by the director of gambling enforcement on any person 22.32 under contract with the lottery to provide goods or services 22.33 under section 349A.16. 22.34 Sec. 15. [349A.22] [GAMING MACHINES; CARD GAMES.] 22.35 Notwithstanding section 349A.13, clause (2), the director 22.36 may install and operate a gaming machine operated by coin or 23.1 currency that when operated determines the winner of a game 23.2 under sections 349A.16 to 349A.18. Section 340A.410 does not 23.3 prohibit the placement, operation, or possession of a gaming 23.4 machine under this chapter or the conduct of card games 23.5 authorized under section 349A.19. 23.6 Sec. 16. [349A.23] [EMPLOYEES; GAMING MACHINES; CARD 23.7 GAMES.] 23.8 The director may appoint personnel as necessary to operate 23.9 gaming machines, to provide support for the conduct of gaming 23.10 machine games, and to conduct games authorized under section 23.11 349A.19, except that all employees appointed under this section 23.12 are in the unclassified service. Section 349A.02, subdivision 23.13 6, applies to all employees hired under this section. 23.14 Sec. 17. [349A.31] [BASEBALL LOTTERY GAME.] 23.15 The lottery shall conduct an instant lottery game each year 23.16 with a baseball theme. 23.17 Sec. 18. Minnesota Statutes 1996, section 609.761, 23.18 subdivision 2, is amended to read: 23.19 Subd. 2. [STATE LOTTERY.] Sections 609.755 and 609.76 do 23.20 not prohibit the operation of the state lottery or the sale, 23.21 possession, or purchase of tickets for the state lottery under 23.22 chapter 349A, or the manufacture, possession, sale, or operation 23.23 of a gaming machine under chapter 349A, or the conduct or 23.24 playing of a card game as authorized under section 349A.19. 23.25 Sec. 19. [EFFECTIVE DATE.] 23.26 This article is effective December 1, 1997.