1.1                          A bill for an act 
  1.2             relating to baseball; providing for a process to 
  1.3             construct, fund, maintain, and govern a major league 
  1.4             baseball park; providing for powers and duties of the 
  1.5             metropolitan sports facilities commission; authorizing 
  1.6             certain taxes, revenue distributions, bonds and other 
  1.7             debt obligations, and allocations; appropriating 
  1.8             money; amending Minnesota Statutes 1996, sections 
  1.9             297E.02, by adding a subdivision; 349.15, subdivision 
  1.10            3; 349A.10, subdivision 5, and by adding a 
  1.11            subdivision; 473.551, subdivision 8, and by adding 
  1.12            subdivisions; 473.552; 473.553, subdivisions 1, 2, 3, 
  1.13            4, and 5; and 473.556, subdivisions 3, 4, 5, and by 
  1.14            adding subdivisions; Minnesota Statutes 1997 
  1.15            Supplement, sections 297A.259; 349.154, subdivision 2; 
  1.16            and 349.19, subdivision 2a; proposing coding for new 
  1.17            law in Minnesota Statutes, chapters 349A; and 473; 
  1.18            proposing coding for new law as Minnesota Statutes, 
  1.19            chapter 473I; repealing Minnesota Statutes 1996, 
  1.20            section 473.553, subdivision 14. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22                             ARTICLE 1
  1.23                     BASEBALL PARK CONSTRUCTION
  1.24     Section 1.  Minnesota Statutes 1996, section 473.551, 
  1.25  subdivision 8, is amended to read: 
  1.26     Subd. 8.  [SPORTS FACILITY OR SPORTS FACILITIES.] "Sports 
  1.27  facility" or "sports facilities" means real or personal property 
  1.28  comprising a stadium, stadiums, baseball parks, or arenas 
  1.29  suitable for university or major league professional baseball, 
  1.30  for university or major league professional football and soccer, 
  1.31  or for both, or for university or major league hockey or 
  1.32  basketball, or for both, together with adjacent parking 
  1.33  facilities, including on the effective date of Laws 1994, 
  2.1   chapter 648, the metrodome, the baseball park, the met center, 
  2.2   and, upon acquisition by the commission, the basketball and 
  2.3   hockey arena. 
  2.4      Sec. 2.  Minnesota Statutes 1996, section 473.551, is 
  2.5   amended by adding a subdivision to read: 
  2.6      Subd. 18.  [BASEBALL PARK.] "Baseball park" means a park 
  2.7   owned by the commission and designed for playing major league 
  2.8   professional baseball, as specified in section 473.5991. 
  2.9      Sec. 3.  Minnesota Statutes 1996, section 473.551, is 
  2.10  amended by adding a subdivision to read: 
  2.11     Subd. 19.  [BASEBALL PARK REVENUE.] "Baseball park revenue" 
  2.12  means all revenue received by or payable to the commission 
  2.13  arising from its ownership and operation of the baseball park 
  2.14  including, but not limited to, revenues from admission taxes or 
  2.15  other special taxes, bond proceeds, fees, lottery proceeds, 
  2.16  loans, and gifts. 
  2.17     Sec. 4.  Minnesota Statutes 1996, section 473.551, is 
  2.18  amended by adding a subdivision to read: 
  2.19     Subd. 20.  [BASEBALL TEAM.] "Baseball team" means a major 
  2.20  league professional baseball team. 
  2.21     Sec. 5.  Minnesota Statutes 1996, section 473.551, is 
  2.22  amended by adding a subdivision to read: 
  2.23     Subd. 21.  [CITY.] "City" when referring to anything 
  2.24  involving the baseball park means the city in which the baseball 
  2.25  park is located. 
  2.26     Sec. 6.  Minnesota Statutes 1996, section 473.551, is 
  2.27  amended by adding a subdivision to read: 
  2.28     Subd. 22.  [COUNTY.] "County" when referring to anything 
  2.29  involving the baseball park means the county in which the 
  2.30  baseball park is located. 
  2.31     Sec. 7.  Minnesota Statutes 1996, section 473.551, is 
  2.32  amended by adding a subdivision to read: 
  2.33     Subd. 23.  [OWNER.] "Owner" means the individual or person 
  2.34  who directly or indirectly owns an interest in the baseball team.
  2.35  Owner does not mean the commission.  
  2.36     Sec. 8.  Minnesota Statutes 1996, section 473.552, is 
  3.1   amended to read: 
  3.2      473.552 [LEGISLATIVE POLICY; PURPOSE.] 
  3.3      The legislature finds that: 
  3.4      (a) (1) the population in the metropolitan area has a need 
  3.5   for sports facilities and that this need cannot be met 
  3.6   adequately by the activities of individual municipalities, by 
  3.7   agreements among municipalities, or by the private efforts of 
  3.8   the people in the metropolitan area,; 
  3.9      (b) (2) the commission's ownership and operation of the 
  3.10  metrodome and met center has met in part the foregoing need and 
  3.11  has promoted the economic and social interests of the 
  3.12  metropolitan area, of the state, and of the public, and; 
  3.13     (c) (3) the commission's acquisition of the basketball and 
  3.14  hockey arena on the terms and conditions provided in sections 
  3.15  473.598 and 473.599 shall similarly and more fully meet the 
  3.16  foregoing needs and promote these interests; and 
  3.17     (4) the commission's construction and operation of the 
  3.18  baseball park by reasonable methods that the legislature and the 
  3.19  commission may devise to secure the long-term commitment of the 
  3.20  baseball team, including, but not limited to, the assignment of 
  3.21  the operation of the baseball park to a private entity, all of 
  3.22  which may further secure and promote these public purposes, will 
  3.23  likewise meet the foregoing needs and promote these interests. 
  3.24  It is therefore necessary for the public health, safety and 
  3.25  general welfare to establish a procedure for the acquisition and 
  3.26  betterment of sports facilities and to create a metropolitan 
  3.27  sports facilities commission. 
  3.28     Sec. 9.  Minnesota Statutes 1996, section 473.553, 
  3.29  subdivision 1, is amended to read: 
  3.30     Subdivision 1.  [GENERAL.] The metropolitan sports 
  3.31  facilities commission is established and as a local governmental 
  3.32  unit and political subdivision of the state that may exercise 
  3.33  its powers within the metropolitan area.  The commission shall 
  3.34  be organized, structured, and administered as provided in this 
  3.35  section. 
  3.36     Sec. 10.  Minnesota Statutes 1996, section 473.556, 
  4.1   subdivision 3, is amended to read: 
  4.2      Subd. 3.  [ACQUISITION OF PROPERTY.] The commission may 
  4.3   acquire by lease, purchase, gift, or devise all necessary right, 
  4.4   title, and interest in and to real or personal property deemed 
  4.5   necessary to the purposes contemplated by sections 473.551 to 
  4.6   473.599 within the limits of the metropolitan area.  The city, 
  4.7   county, or commission may exercise the right of eminent domain 
  4.8   under chapter 117 to acquire a site for the baseball park and, 
  4.9   from time to time such other property, real, personal and 
  4.10  intangible, as are essential and integral to the successful 
  4.11  operation of a sports facility.  
  4.12     Sec. 11.  Minnesota Statutes 1996, section 473.556, 
  4.13  subdivision 4, is amended to read: 
  4.14     Subd. 4.  [EXEMPTION OF PROPERTY.] Any real or personal 
  4.15  property acquired, owned, leased, controlled, used, or occupied 
  4.16  by the commission for any of the purposes of sections 473.551 to 
  4.17  473.599 is declared to be acquired, owned, leased, controlled, 
  4.18  used and occupied for public, governmental, and municipal 
  4.19  purposes, and shall be exempt from ad valorem taxation by the 
  4.20  state or any political subdivision of the state, provided that 
  4.21  such properties shall be subject to special assessments levied 
  4.22  by a political subdivision for a local improvement in amounts 
  4.23  proportionate to and not exceeding the special benefit received 
  4.24  by the properties from the improvement.  No possible use of any 
  4.25  such properties in any manner different from their use under 
  4.26  sections 473.551 to 473.599 at the time shall be considered in 
  4.27  determining the special benefit received by the properties.  All 
  4.28  assessments shall be subject to final confirmation by the 
  4.29  council, whose determination of the benefits shall be conclusive 
  4.30  upon the political subdivision levying the assessment.  
  4.31  Notwithstanding the provisions of section 272.01, subdivision 2, 
  4.32  or 273.19, real or personal property leased by the commission to 
  4.33  another person for uses related to the purposes of sections 
  4.34  473.551 to 473.599, including the operation of the metrodome, 
  4.35  baseball park, met center, and, if acquired by the commission, 
  4.36  the basketball and hockey arena shall be exempt from taxation 
  5.1   regardless of the length of the lease.  The provisions of this 
  5.2   subdivision, insofar as they require exemption or special 
  5.3   treatment, shall not apply to any real property comprising the 
  5.4   met center which is leased by the commission for residential, 
  5.5   business, or commercial development or other purposes different 
  5.6   from those contemplated in sections 473.551 to 473.599. 
  5.7      Sec. 12.  Minnesota Statutes 1996, section 473.556, 
  5.8   subdivision 5, is amended to read: 
  5.9      Subd. 5.  [FACILITY OPERATION.] The commission may equip, 
  5.10  improve, operate, manage, maintain, and control the 
  5.11  metrodome, baseball park, met center, basketball and hockey 
  5.12  arena and sports facilities constructed, remodeled, or acquired 
  5.13  under the provisions of sections 473.551 to 473.599. 
  5.14     Sec. 13.  Minnesota Statutes 1996, section 473.556, is 
  5.15  amended by adding a subdivision to read: 
  5.16     Subd. 18.  [PRIVATE CONTRIBUTIONS.] Notwithstanding the 
  5.17  requirements of subdivision 9, the commission may accept grants, 
  5.18  gifts, or loans from public or private sources to further its 
  5.19  public purposes with respect to the baseball park.  The 
  5.20  contributions may be used by the commission for any purpose 
  5.21  related to the baseball park under sections 473.5991 to 
  5.22  473.5995, including, but not limited to, payment of revenue 
  5.23  bonds or revenue anticipation certificates issued under section 
  5.24  473.5993, or reducing or eliminating any ownership, operations, 
  5.25  or other obligations or liabilities of the commission under 
  5.26  sections 473.5991 to 473.5995. 
  5.27     Sec. 14.  Minnesota Statutes 1996, section 473.556, is 
  5.28  amended by adding a subdivision to read: 
  5.29     Subd. 19.  [BASEBALL PARK REVENUE.] The commission may 
  5.30  spend baseball park revenue to pay any reasonable expenses 
  5.31  necessary to administer, operate, improve, or maintain the 
  5.32  baseball park or to pay debt service on bonds or other 
  5.33  obligations sold for purposes of the baseball park.  Baseball 
  5.34  park revenue must be segregated from other revenue of the 
  5.35  commission. 
  5.36     Sec. 15.  [473.5991] [BASEBALL PARK.] 
  6.1      Subdivision 1.  [ESSENTIAL CHARACTERISTICS.] The baseball 
  6.2   park must be designed for playing major league baseball and no 
  6.3   other major league spectator sport that uses a surface or 
  6.4   seating configuration different from major league baseball.  The 
  6.5   baseball park shall have a retractable roof.  The baseball park 
  6.6   may include parking or other transit facilities for patrons, 
  6.7   performers, and employees and may include other amenities to 
  6.8   enhance or make the use of the baseball park convenient and 
  6.9   predictably accessible to all.  
  6.10     Subd. 2.  [DESIGN.] The commission shall determine the 
  6.11  program elements of the baseball park, including, but not 
  6.12  limited to, capacity, suites, club seats, clubs, and amenities.  
  6.13  The commission shall also determine the baseball park design, 
  6.14  and the selection of the project construction team, including 
  6.15  the architect and general contractor. 
  6.16     Subd. 3.  [RELATED INFRASTRUCTURE.] The commission shall 
  6.17  negotiate with the appropriate government entities, including 
  6.18  the city and county within which the baseball park is located, 
  6.19  and the metropolitan council for necessary or appropriate 
  6.20  infrastructure improvements to support the existence and 
  6.21  operation of the baseball park, the movement of patrons to and 
  6.22  from the baseball park, and their comfort, safety, and 
  6.23  convenience while in and around the baseball park. 
  6.24     Subd. 4.  [CONSTRUCTION METHODS.] The commission may 
  6.25  contract for construction materials, supplies, and equipment in 
  6.26  accordance with section 471.345, except that the commission may 
  6.27  employ persons, firms, or corporations to perform one or more or 
  6.28  all of the functions of architect, engineer, construction 
  6.29  manager, or contractor for both design and construction, with 
  6.30  respect to all or part of a project to build or remodel sports 
  6.31  facilities.  Contractors shall be selected through the process 
  6.32  of public bidding, under section 471.345, except that the 
  6.33  commission may narrow the listing of eligible bidders to those 
  6.34  the commission determines to possess sufficient expertise to 
  6.35  perform the intended functions and the commission may negotiate 
  6.36  with the three lowest responsible bidders to achieve the best 
  7.1   and final offer.  The commission may require a construction 
  7.2   manager to certify a construction price and completion date to 
  7.3   the commission.  The commission may require the posting of a 
  7.4   bond in an amount determined by the commission to cover any 
  7.5   costs that may be incurred over and above the certified price, 
  7.6   including, but not limited to, costs incurred by the commission 
  7.7   or loss of revenues resulting from incomplete construction on 
  7.8   the completion date and any other obligations the commission may 
  7.9   require the construction manager to bear.  The commission shall 
  7.10  secure surety bonds as required in section 574.26 securing 
  7.11  payment of just claims in connection with all public work 
  7.12  undertaken by it.  Persons entitled to the protection of the 
  7.13  bonds may enforce them as provided in sections 574.28 to 574.32 
  7.14  and are not entitled to a lien on any property of the commission 
  7.15  under sections 514.01 to 514.16. 
  7.16     Sec. 16.  [473.5992] [DETERMINATIONS BEFORE BONDS SOLD.] 
  7.17     Subdivision 1.  [WHEN.] (a) The commission must do what it 
  7.18  is required to do and determine that others have done what they 
  7.19  are required to do under this section before it authorizes the 
  7.20  sale of bonds under section 473.5993. 
  7.21     (b) If paragraph (a) is not complied with by March 31, 
  7.22  1998, the commission or the owner may require negotiations to 
  7.23  cease.  If the owner requires negotiations to cease under this 
  7.24  subdivision or subdivision 7, the owner shall pay all costs and 
  7.25  expenses of all deliberations of the commission incurred through 
  7.26  the date when negotiations cease. 
  7.27     Subd. 2.  [30-YEAR USE AGREEMENT.] (a) The commission must 
  7.28  execute agreements with the owner and the baseball team to use 
  7.29  the baseball park for all scheduled regular season and all 
  7.30  postseason division, league, and world series championship 
  7.31  play-off home games for no less than 30 years. 
  7.32     (b) The agreements shall afford to the commission, or to 
  7.33  another public entity as the commission deems appropriate, the 
  7.34  rights and remedies that are deemed necessary and appropriate to 
  7.35  provide reasonable assurances that the baseball team and the 
  7.36  owner will comply with the agreements throughout the 30-year 
  8.1   term.  The remedies must include liquidated damages in the 
  8.2   amount of $250,000,000, payable by the baseball team and the 
  8.3   owner jointly and severally to the commission in the event the 
  8.4   team relocates to another ballpark within the 30-year period, 
  8.5   less 1/30 of that amount for each year the team has met its 
  8.6   obligation to play in the baseball park.  The remedies may 
  8.7   include specific performance and injunctive relief and any other 
  8.8   equitable remedies, and any additional remedies or ownership, 
  8.9   voting, or other security arrangements the commission reasonably 
  8.10  determines to be effective in ensuring the baseball team will 
  8.11  play the required games in the baseball park throughout the 
  8.12  30-year term.  In the enforcement of the agreements, the 
  8.13  commission may elect from among the rights and remedies provided 
  8.14  for in this paragraph, and that election does not extinguish the 
  8.15  commission's other rights and remedies except as may otherwise 
  8.16  be provided by law.  It is the intent of the legislature that a 
  8.17  material breach of an agreement between the commission and other 
  8.18  public bodies and professional athletic teams that commit to the 
  8.19  long-term playing of major league games at public facilities is 
  8.20  deemed to cause irreparable harm for which no adequate remedy at 
  8.21  law is available and that the grant of equitable relief to 
  8.22  remedy the breach is in the public interest and shall be 
  8.23  liberally so construed.  
  8.24     (c) The agreements shall provide for the annual payment of 
  8.25  rent by the baseball team for the use and enjoyment of the 
  8.26  baseball park, and for the allocation, between the commission 
  8.27  and the baseball team of all other revenues from whatever source 
  8.28  attributable to the baseball park. 
  8.29     (d) The agreements must anticipate the possible sale and 
  8.30  purchase of shares or other interests in the baseball team to 
  8.31  the community, and provide that the owner use its good faith 
  8.32  efforts to cause major league baseball to approve community 
  8.33  ownership provisions in franchises.  The commission shall report 
  8.34  to the legislature, no later than January 1, 1999, on the ways 
  8.35  and means appropriate and available to effectuate some form of 
  8.36  community ownership of shares or other interests in the baseball 
  9.1   team. 
  9.2      Subd. 3.  [OWNER'S ABILITY TO COMPLY.] The baseball team 
  9.3   and the owner must provide information sufficient to satisfy the 
  9.4   commission of the baseball team's and the owner's ability to 
  9.5   comply with the terms of the 30-year agreements. 
  9.6      Subd. 4.  [OWNER'S INITIAL INVESTMENT.] The commission must 
  9.7   enter into an agreement with the owner that provides that the 
  9.8   owner will make an initial investment in the construction of the 
  9.9   baseball park by paying the commission not less than $....... to 
  9.10  be paid on a date satisfactory to the commission.  The initial 
  9.11  investment shall not be secured by any property or revenues of 
  9.12  the commission. 
  9.13     Subd. 5.  [PRIVATE SECTOR SUPPORT.] (a) Private sector 
  9.14  support for construction of the baseball park must be 
  9.15  demonstrated by the following:  
  9.16     (1) at least 80 percent of the private suites provided for 
  9.17  in the proposal for the baseball park have been sold or leased 
  9.18  for at least ten years; 
  9.19     (2) at least 80 percent of the club seats provided for in 
  9.20  the proposal for the baseball park are sold or leased for the 
  9.21  opening season; 
  9.22     (3) at least $25,000,000 in qualified pledges to purchase 
  9.23  permanent seat licenses are made; and 
  9.24     (4) pledges to purchase 22,000 season tickets for the 
  9.25  opening season are made. 
  9.26     (b) If the conditions in this subdivision are not met by 
  9.27  March 31, 1998, either the owner or the commission may require 
  9.28  negotiations for the baseball park to cease. 
  9.29     Subd. 6.  [PRIVATE SECTOR CAPITAL PLAN.] The owner must 
  9.30  develop a private sector capital plan approved by the commission 
  9.31  that includes the sale or lease of some or all promotional 
  9.32  rights in the baseball park. 
  9.33     Subd. 7.  [MAJOR LEAGUE BASEBALL CONTRIBUTION.] The 
  9.34  commission and the owner must enter into an agreement that 
  9.35  provides that the owner will use its best efforts to obtain 
  9.36  construction money for the baseball park from major league 
 10.1   baseball. 
 10.2      Subd. 8.  [COMMISSION TITLE TO PROPERTY.] The commission 
 10.3   must acquire, contract to acquire, or begin eminent domain 
 10.4   proceedings to acquire title to all real property including all 
 10.5   easements and other appurtenances needed for the construction 
 10.6   and operation of the baseball park and must receive a grant of 
 10.7   money or enter into agreements sufficient to ensure the receipt 
 10.8   of money, at the time and in the amount required, to make any 
 10.9   payment upon which the commission's acquisition of title and 
 10.10  possession of the real property is conditioned. 
 10.11     Subd. 9.  [SUFFICIENT MONEY FOR CLEARING PROPERTY.] The 
 10.12  commission must receive a grant of money or enter into 
 10.13  agreements sufficient in the judgment of the commission to 
 10.14  ensure the receipt of money, at the time and in the amount 
 10.15  required, to pay all costs of clearing the real property needed 
 10.16  for the construction and operation of the baseball park of all 
 10.17  improvements thereon which would interfere with the construction 
 10.18  or operation of the baseball park.  
 10.19     Subd. 10.  [GUARANTEED MAXIMUM PRICE.] The commission must 
 10.20  execute agreements that provide for the construction of the 
 10.21  baseball park for a guaranteed maximum price and substantial 
 10.22  completion date of April 1, 2001, and that requires performance 
 10.23  bonds in an amount at least equal to 100 percent of the 
 10.24  guaranteed maximum price to cover any costs incurred over and 
 10.25  above the guaranteed maximum price, including, but not limited 
 10.26  to, costs incurred by the commission or loss of revenues 
 10.27  resulting from incomplete construction on the substantial 
 10.28  completion date. 
 10.29     Subd. 11.  [NO STRIKES OR LOCKOUTS.] The commission must 
 10.30  execute agreements with appropriate labor organizations and 
 10.31  construction contractors that provide that no labor strikes or 
 10.32  management lockouts will delay construction. 
 10.33     Subd. 12.  [BASEBALL TEAM TO OPERATE BASEBALL PARK.] (a) 
 10.34  The commission must execute agreements with the owner and the 
 10.35  baseball team that provide for operation and maintenance of the 
 10.36  baseball park at the expense of the owner and the team. 
 11.1      (b) The agreements may provide that: 
 11.2      (1) the baseball team will manage, maintain, operate, and 
 11.3   repair the baseball park and may contract with one or more 
 11.4   entities to operate part or all of the baseball park all subject 
 11.5   to the approval of the commission; and 
 11.6      (2) the baseball team shall contract with one or more 
 11.7   concessionaires to provide food and beverages for the baseball 
 11.8   park subject to the approval of the commission. 
 11.9      (c) The agreements must provide criteria for maintenance 
 11.10  and operation of the baseball park and remedies as referred to 
 11.11  in subdivision 2, paragraphs (b) and (c), that may be exercised 
 11.12  by the commission to ensure that the criteria are met.  The 
 11.13  agreements must also require that the baseball team and its 
 11.14  affiliates and subsidiaries that are involved in the maintenance 
 11.15  and operation provide annually audited financial statements to 
 11.16  the commission. 
 11.17     Subd. 13.  [COMMISSION PARTICIPATION IN BASEBALL TEAM 
 11.18  CONTRACTS.] The commission and the owner must execute an 
 11.19  agreement that provides that the commission may participate in 
 11.20  the negotiations of any operations, concessions, rights, 
 11.21  advertising, or any other contracts or agreements pertinent to 
 11.22  the operation and maintenance of the baseball park between the 
 11.23  owner and any other third party. 
 11.24     Subd. 14.  [CAPITAL REPAIRS AND IMPROVEMENTS.] The 
 11.25  commission must establish a baseball park capital repair and 
 11.26  improvement account and enter into an agreement with the owner 
 11.27  and the baseball team that provides that the owner and the 
 11.28  baseball team must pay at least $700,000 a year into the account 
 11.29  to be used by the commission to make any capital repairs, 
 11.30  improvements, enhancements, and betterments necessary to 
 11.31  maintain the baseball park.  The commission is not obligated to 
 11.32  spend money for these purposes in excess of the balance in the 
 11.33  capital repair and improvement account. 
 11.34     Subd. 15.  [UNIVERSITY OF MINNESOTA.] The commission must 
 11.35  consult with and consider the needs of the University of 
 11.36  Minnesota for baseball facilities for the next 20 years. 
 12.1      Subd. 16.  [REVENUES TO BE SUFFICIENT.] The anticipated 
 12.2   baseball park revenue must be sufficient to pay when due all 
 12.3   debt service on the revenue bonds and all administrative 
 12.4   expenses of the commission.  The anticipated revenue to the 
 12.5   baseball team must be sufficient to pay all operating and 
 12.6   maintenance expenses of the baseball park. 
 12.7      Subd. 17.  [LEAGUE, MAJOR LEAGUE BASEBALL GUARANTY.] The 
 12.8   commission must execute an agreement with the major league of 
 12.9   which the baseball team is a member and with major league 
 12.10  baseball that guarantees the continuance of the franchise in the 
 12.11  metropolitan area for the period of the agreement referred to in 
 12.12  subdivision 2. 
 12.13     Sec. 17.  [INTERSTATE COMPETITION.] 
 12.14     The commission may cooperate and contract with other 
 12.15  political entities in the United States, to petition or form an 
 12.16  entity to petition the United States Congress to enact 
 12.17  legislation to prevent injurious or uneconomic practices of 
 12.18  governmental entities in seeking sports, exposition, and 
 12.19  entertainment franchises and facilities.  The attorney general 
 12.20  may participate in appropriate litigation to prevent the 
 12.21  injurious or uneconomic practices. 
 12.22     Sec. 18.  [473.5993] [DEBT OBLIGATIONS FOR BASEBALL PARK.] 
 12.23     Subdivision 1.  [PURPOSES.] The commission may by 
 12.24  resolution authorize the sale and issuance of its revenue bonds 
 12.25  for the following purposes after complying with or determining 
 12.26  that section 473.5992, paragraph (a), has been or will be 
 12.27  complied with in material respects: 
 12.28     (1) to acquire and better facilities for a baseball park, 
 12.29  including, but not limited to, site assembly, preparation, and 
 12.30  construction; 
 12.31     (2) to reimburse the commission for its costs in complying 
 12.32  with and making the determinations required by section 473.5992, 
 12.33  whenever incurred; 
 12.34     (3) to pay issuance costs and costs of bond insurance or 
 12.35  other credit enhancement for the bonds and to establish 
 12.36  necessary reserves for operating and debt service costs; 
 13.1      (4) to refund bonds issued under this section; and 
 13.2      (5) to fund judgments entered by any court against the 
 13.3   commission in matters relating to the commission's functions 
 13.4   related to the baseball park. 
 13.5      Subd. 2.  [AMOUNT.] The principal amount of the bonds 
 13.6   issued under subdivision 1, clause (1), exclusive of any 
 13.7   original issue discount, must not exceed $250,000,000. 
 13.8      Subd. 3.  [TAXABILITY.] The bonds may be issued as 
 13.9   tax-exempt revenue bonds or as taxable revenue bonds in the 
 13.10  proportions that the commission may determine. 
 13.11     Subd. 4.  [PROCEDURE.] The bonds shall be sold, issued, and 
 13.12  secured in the manner provided in chapter 475 for bonds payable 
 13.13  solely from revenues and the commission has the same powers and 
 13.14  duties as a municipality and its governing body in issuing bonds 
 13.15  under that chapter.  The bonds may be sold at any price and at 
 13.16  public or private sale as determined by the commission.  An 
 13.17  election is not required.  
 13.18     Subd. 5.  [NOT A GENERAL OR MORAL OBLIGATION.] The bonds 
 13.19  are payable solely from baseball park revenues.  The bonds are 
 13.20  not a general or moral obligation or debt of the commission, any 
 13.21  other political subdivision of the state, or the state, and must 
 13.22  not be included in the net debt of any city, county, or other 
 13.23  subdivision of the state for the purpose of any net debt 
 13.24  limitation.  The state does not assume any obligation or 
 13.25  liability for bonds sold or issued under this section.  
 13.26     Subd. 6.  [BROKERAGE FIRM AGREEMENT.] Before issuing debt 
 13.27  under this section, the commission must enter into an agreement 
 13.28  with the brokerage firm to be used in connection with the sale 
 13.29  and issuance of the bonds or revenue anticipation certificates 
 13.30  under this section, guaranteeing that fees and charges payable 
 13.31  to the brokerage firm under the agreement, including any 
 13.32  underwriting discounts, do not exceed fees and charges 
 13.33  customarily payable in connection with the sale and issuance of 
 13.34  bonds or revenue anticipation certificates. 
 13.35     Subd. 7.  [SECURITY.] Baseball park revenues must be and 
 13.36  remain pledged and appropriated, for the benefit of and 
 14.1   enforceable by the bondholders or their trustee, for the payment 
 14.2   of all necessary and reasonable expenses of the operation, 
 14.3   administration, maintenance, and debt service of the baseball 
 14.4   park until all bonds and certificates issued under this section 
 14.5   are fully paid or discharged in accordance with law.  Bonds 
 14.6   issued under this section may be secured by a bond resolution, 
 14.7   or by a trust indenture entered into by the commission with a 
 14.8   corporate trustee within or outside the state, which must define 
 14.9   the baseball park revenues pledged for the payment and security 
 14.10  of the bonds.  The pledge is a valid charge on the baseball park 
 14.11  revenues from the date when bonds are first issued or secured 
 14.12  under the resolution or indenture and secure the payment of 
 14.13  principal and interest and redemption premiums when due and the 
 14.14  maintenance at all times of a reserve securing the payments.  No 
 14.15  mortgage of or security interest in any tangible real or 
 14.16  personal property is granted to the bondholders or the trustee, 
 14.17  but they have a valid security interest in all baseball park 
 14.18  revenues of the commission as against the claims of all other 
 14.19  persons in tort, contract, or otherwise, irrespective of whether 
 14.20  the parties have notice of the claims, and without possession or 
 14.21  filing as provided in the uniform commercial code or any other 
 14.22  law.  In the bond resolution or trust indenture the commission 
 14.23  may make any covenants that are determined by the commission to 
 14.24  be usual and reasonably necessary for the protection of the 
 14.25  bondholders.  No pledge, mortgage, covenant, or agreement 
 14.26  securing bonds may be impaired, revoked, or amended by law or by 
 14.27  action of the commission except in accordance with the terms of 
 14.28  the resolution or indenture under which the bonds are issued, 
 14.29  until the obligations of the commission under the resolution or 
 14.30  indenture are fully discharged. 
 14.31     Subd. 8.  [REVENUE ANTICIPATION CERTIFICATES.] In any year, 
 14.32  upon final adoption by the commission of an annual budget of the 
 14.33  commission, including the baseball park revenues, and in 
 14.34  anticipation of the baseball park revenues, but subject to any 
 14.35  limitation or prohibition in a bond resolution or indenture, the 
 14.36  commission may authorize the issuance, negotiation, and sale, in 
 15.1   the form and manner and upon the terms it may determine, of 
 15.2   revenue anticipation certificates.  The principal amount of the 
 15.3   certificates outstanding may at no time exceed 25 percent of the 
 15.4   total amount of the revenues anticipated.  The certificates must 
 15.5   mature not later than three months after the close of the budget 
 15.6   year.  So much of the anticipated baseball park revenues as may 
 15.7   be needed for the payment of the certificates and interest 
 15.8   thereon shall be paid into a special debt service fund 
 15.9   established for the certificates in the commission's financial 
 15.10  records.  If for any reason the anticipated revenues are 
 15.11  insufficient, the certificates and interest must be paid from 
 15.12  the first revenues received, subject to any limitation or 
 15.13  prohibition in a bond resolution or indenture.  The proceeds of 
 15.14  the certificates may be used for any purpose for which the 
 15.15  anticipated revenues may be used or for any purpose for which 
 15.16  bond proceeds under subdivision 1 may be used. 
 15.17     Subd. 9.  [VALIDITY OF DEBT ISSUED.] The validity of any 
 15.18  bonds issued under this section and the obligations of the 
 15.19  commission related to them must not be conditioned upon or 
 15.20  impaired by the commission's determinations made under section 
 15.21  473.5992.  For the purposes of issuing bonds, the determinations 
 15.22  made by the commission are conclusive, and the commission is 
 15.23  obligated for the security and payment of the bonds, but only 
 15.24  from the sources pledged thereto, irrespective of determinations 
 15.25  that may be erroneous, inaccurate, or otherwise mistaken. 
 15.26     Sec. 19.  [473.5994] [PROFIT SHARING.] 
 15.27     Subdivision 1.  [DEFINITIONS.] (a) [APPLICATION.] The 
 15.28  definitions in this subdivision apply to this section. 
 15.29     (b) [GROSS REVENUES OF THE BASEBALL TEAM.] "Gross revenues 
 15.30  of the baseball team" means all revenues of the baseball team 
 15.31  from whatever source, including, but not limited to, any 
 15.32  revenues as may be negotiated with the commission from baseball 
 15.33  park rights, concessions, signage, and revenues from ticket 
 15.34  sales, and other revenues including major league profit sharing, 
 15.35  royalties, television, radio, and any other receipts or 
 15.36  revenues, ordinary or extraordinary, not otherwise provided for 
 16.1   in sections 473.5991 to 473.5995. 
 16.2      (c) [NET OPERATING PROFITS.] "Net operating profits" means 
 16.3   the gross revenues of the baseball team remaining after its 
 16.4   payment of or deduction for its baseball team operating 
 16.5   expenses, its baseball park operating expenses, and its funding 
 16.6   of the baseball park capital repair and improvement account.  
 16.7   Net operating profits must be computed in accordance with 
 16.8   generally accepted accounting principles. 
 16.9      Subd. 2.  [BASEBALL TEAM OPERATING EXPENSES; LOSS.] The 
 16.10  owner shall assume all risk for and timely pay all operating 
 16.11  expenses of the baseball team and the baseball park as provided 
 16.12  in this act and in agreements authorized by this act.  The 
 16.13  baseball team shall be organized so that under Minnesota law, 
 16.14  the commission is not liable for any operating loss, liability, 
 16.15  or obligation of the baseball team, or baseball park.  The 
 16.16  commission shall have no duty to reimburse the owner or any 
 16.17  creditor of the owner, the baseball team, or the baseball park 
 16.18  for any operating loss, liability, or obligation of the baseball 
 16.19  team or baseball park, and shall be indemnified by the owner 
 16.20  against losses or claims. 
 16.21     Sec. 20.  [473.5995] [PROFITS UPON SALE OF BASEBALL TEAM.] 
 16.22     (a) The commission and the owner shall enter into an 
 16.23  agreement that provides for the sharing of profits upon the sale 
 16.24  of the baseball team.  
 16.25     (b) If: 
 16.26     (1) the baseball team is sold, transferred, or assigned 
 16.27  sooner than 15 years after the first regular season game played 
 16.28  in the baseball park; and 
 16.29     (2) the value of the baseball team has appreciated above 
 16.30  $125,000,000 or the sale price exceeds that amount, 
 16.31  then the commission shall receive a payment reflecting its share 
 16.32  that is stated in the agreement upon the closing of such sale, 
 16.33  transfer, or assignment. 
 16.34     Sec. 21.  [473.5996] [CITY POWERS.] 
 16.35     Notwithstanding any law, charter, or ordinance provision to 
 16.36  the contrary, the city may acquire or condemn land, assemble and 
 17.1   prepare a site, make infrastructure improvements, or use its 
 17.2   resources in other ways it may devise to finance sports 
 17.3   facilities and to further the purposes of sections 473.551 to 
 17.4   473.5996. 
 17.5      Sec. 22.  [INSTRUCTION TO REVISOR.] 
 17.6      In the next edition of Minnesota Statutes, the revisor of 
 17.7   statutes shall change references to Minnesota Statutes, sections 
 17.8   473.551 to 473.599 to read "473.551 to 473.5996." 
 17.9      Sec. 23.  [APPLICATION.] 
 17.10     This article applies in the counties of Anoka, Carver, 
 17.11  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 17.12     Sec. 24.  [EFFECTIVE DATE.] 
 17.13     This article is effective the day following final enactment.
 17.14                             ARTICLE 2
 17.15                    BASEBALL PARK SPECIAL TAXES
 17.16     Section 1.  [473I.01] [DEFINITIONS.] 
 17.17     Subdivision 1.  [APPLICATION.] The definitions in sections 
 17.18  473.121, 473.551, and this section apply to this chapter. 
 17.19     Subd. 2.  [BASEBALL PARK.] "Baseball park" means the 
 17.20  baseball park described in section 473.5991. 
 17.21     Sec. 2.  [473I.02] [BASEBALL PARK ACCOUNT.] 
 17.22     The baseball park account is established in the special 
 17.23  revenue fund in the state treasury.  All money credited to the 
 17.24  baseball park account is appropriated to the commissioner of 
 17.25  revenue for payment to the commission for purposes of the 
 17.26  baseball park.  The commission shall use all receipts from the 
 17.27  baseball park account to administer, operate, and maintain the 
 17.28  baseball park and to pay debt service on bonds or other 
 17.29  obligations sold for purposes of the baseball park. 
 17.30     Sec. 3.  [473I.03] [BASEBALL PARK DISTRICT; TAXES AND 
 17.31  FEES.] 
 17.32     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
 17.33  finds that the construction of the baseball park is a public 
 17.34  improvement that has regional and statewide economic benefits.  
 17.35  In addition, the baseball park will specifically benefit the 
 17.36  class of persons operating retail and service businesses within 
 18.1   the surrounding area.  The legislature finds that the 
 18.2   designation by the commission, in mutual agreement with the 
 18.3   city, of the area surrounding the baseball park as a baseball 
 18.4   park district and the imposition of taxes or fees within the 
 18.5   district will more equitably apportion the burdens of funding 
 18.6   the baseball park among the classes of persons benefiting from 
 18.7   the baseball park. 
 18.8      Subd. 2.  [SPECIAL TAXES.] Notwithstanding section 
 18.9   477A.016, or any other limitation of law or charter, under an 
 18.10  agreement with the commission, the city may by resolution impose 
 18.11  liquor, entertainment, parking, and lodging taxes or fees within 
 18.12  the city or within the area within which retail and service 
 18.13  businesses receive special economic benefits from the operation 
 18.14  of the baseball park, and that is designated by the commission, 
 18.15  in mutual agreement with the city, as a baseball park district.  
 18.16  The district may not be greater than an area measured by a 
 18.17  radius of 15 blocks in any direction from the baseball park.  
 18.18  The resolution must provide for dedication of the taxes or fees, 
 18.19  after payment of collection and administrative expenses and 
 18.20  refunds, to payment of principal and interest on bonds issued 
 18.21  under section 473.5993, if any, or for general revenue for the 
 18.22  purposes of the commission, and for the transfer of the taxes 
 18.23  collected to the commission for those purposes. 
 18.24     Sec. 4.  [473I.05] [BASEBALL PARK INCOME SURTAX.] 
 18.25     Subdivision 1.  [TAX IMPOSED.] The commission may by 
 18.26  resolution impose a tax on the taxable net income of a qualified 
 18.27  employee of a sports organization that uses the baseball park.  
 18.28  The tax equals four percent of the amount of taxable 
 18.29  compensation over $100,000 for the taxable year. 
 18.30     Subd. 2.  [DEFINITIONS.] (a) The definitions in chapter 290 
 18.31  and in this subdivision apply to this section. 
 18.32     (b) A "qualified employee" means an employee who is a 
 18.33  salaried athletic team employee and who derives wages, salaries, 
 18.34  or other compensation of at least $100,000 for the performance 
 18.35  of personal services from a sports organization for the taxable 
 18.36  year. 
 19.1      (c) A "sports organization" means any organization that 
 19.2   operates a major league professional sports franchise.  A sports 
 19.3   organization includes a visiting team regardless of whether it 
 19.4   has a direct agreement with the owner or operator of the 
 19.5   baseball park. 
 19.6      (d) "Taxable compensation" means compensation earned for 
 19.7   services performed in the metropolitan area as an employee of a 
 19.8   sports organization.  The provisions of section 290.17 apply to 
 19.9   determine the proportion of compensation that is earned for 
 19.10  services performed in the metropolitan area, except that the 
 19.11  "metropolitan area" is substituted for "Minnesota" in applying 
 19.12  section 290.17. 
 19.13     Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 19.14  section must be collected in the manner provided for individual 
 19.15  income taxes imposed under chapter 290 and in accordance with an 
 19.16  agreement between the commission and the commissioner of 
 19.17  revenue.  The revenue from the tax must be deposited in the 
 19.18  baseball park account in the special revenue fund. 
 19.19     Sec. 5.  [473I.06] [PARKING TAX.] 
 19.20     Subdivision 1.  [TAX IMPOSED.] The commission may by 
 19.21  resolution impose a parking tax of not less than $1 per vehicle 
 19.22  per event at the baseball park.  The city shall collect the tax 
 19.23  on behalf of the commission in accordance with an agreement with 
 19.24  the commission. 
 19.25     Subd. 2.  [AREA OF APPLICATION.] The tax applies to parking 
 19.26  in the baseball park district designated under section 473I.03 
 19.27  and in any additional area providing event parking, as mutually 
 19.28  agreed by the city and commission. 
 19.29     Subd. 3.  [TERMS SET BY AGREEMENT.] The commission and city 
 19.30  shall mutually agree upon the terms and provisions of the tax, 
 19.31  including: 
 19.32     (1) the definition of event parking; 
 19.33     (2) any additional area in which the tax applies; 
 19.34     (3) procedures and times for payment of the tax; 
 19.35     (4) procedures and times for remitting proceeds to the 
 19.36  state; 
 20.1      (5) penalty and interest provisions; 
 20.2      (6) the method of determining the cost of collection; and 
 20.3      (7) other provisions with a material effect upon revenues 
 20.4   from the tax. 
 20.5      Subd. 4.  [DISPOSITION OF PROCEEDS.] The city must pay the 
 20.6   proceeds of the tax, including interest and penalties, less the 
 20.7   reasonable cost of collection, to the commission for the 
 20.8   purposes of this chapter. 
 20.9      Sec. 6.  [473I.07] [ADMISSION TAX; TICKET SURCHARGE.] 
 20.10     The commission may by resolution impose and maintain an 
 20.11  admission tax or ticket surcharge, or both, upon the granting, 
 20.12  issuance, sale, or distribution, by any private or public 
 20.13  person, association, or corporation, of the privilege of 
 20.14  admission to activities at the baseball park.  No other tax, 
 20.15  surcharge, or governmental imposition, except the taxes imposed 
 20.16  by chapter 297A, may be levied by any other unit of government 
 20.17  upon that sale or distribution.  If the commission imposes a 
 20.18  ticket surcharge, it must be at least $1 per ticket for the 
 20.19  seats affected.  The commission and the owner may by mutual 
 20.20  agreement exempt sections of the baseball park from the ticket 
 20.21  surcharge.  The admission tax or ticket surcharge must be stated 
 20.22  and charged separately from the sales price so far as 
 20.23  practicable and must be collected by the grantor, issuer, 
 20.24  seller, or distributor from the person admitted and is a debt 
 20.25  from that person to the grantor, issuer, seller, or distributor, 
 20.26  and the tax required to be collected is a debt owed by the 
 20.27  grantor, issuer, seller, or distributor to the commission.  The 
 20.28  debt is recoverable at law in the same manner as other debts.  
 20.29  Every person who grants, issues, sells, or distributes tickets 
 20.30  for the admissions may be required, as provided in resolutions 
 20.31  of the commission to secure a permit, to file returns, to 
 20.32  deposit security for the payment of the tax, and to pay 
 20.33  penalties for nonpayment and interest on late payments, that are 
 20.34  considered necessary or expedient to ensure the prompt and 
 20.35  uniform collection of the tax.  Receipts from the admission tax 
 20.36  must be used for purposes of the baseball park.  
 21.1      Sec. 7.  [473I.08] [BASEBALL SALES TAX.] 
 21.2      Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
 21.3   chapter 297A and in this subdivision apply to this section. 
 21.4      (b) "Baseball sales" means any transaction, including 
 21.5   transfers of tangible personal property and provision of taxable 
 21.6   services, that occurs on the premises of the metrodome or 
 21.7   baseball park.  This includes, but is not limited to, concession 
 21.8   sales and private suite rentals but excludes purchases by the 
 21.9   owner, operator, or a tenant of the metrodome or baseball park. 
 21.10     Subd. 2.  [TAX IMPOSED.] The commission may by resolution 
 21.11  impose a tax on baseball sales at the rate of nine percent.  
 21.12  This tax is in lieu of all other taxes levied by any unit of 
 21.13  government on these sales, including the tax under section 
 21.14  297A.02, subdivision 1. 
 21.15     Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 21.16  section must be collected in the manner provided for taxes 
 21.17  imposed under chapter 297A and in accordance with an agreement 
 21.18  between the commission and the commissioner of revenue.  All 
 21.19  revenues, including interest and penalties, derived from the tax 
 21.20  imposed on baseball sales must be deposited in the state 
 21.21  treasury and credited to the baseball park account in the 
 21.22  special revenue fund. 
 21.23     Sec. 8.  [473I.09] [SPORTS MEMORABILIA TAX.] 
 21.24     The commission by resolution may impose a tax on each sale 
 21.25  at wholesale of sports memorabilia in the metropolitan area.  
 21.26  The rate of the tax is ten percent of the gross earnings from 
 21.27  the sale. 
 21.28     Sec. 9.  [473I.10] [DEFINITIONS.] 
 21.29     Subdivision 1.  [TERMS.] For purposes of sections 473I.09 
 21.30  to 473I.16, the following terms have the meanings given them. 
 21.31     Subd. 2.  [BUYER.] "Buyer" means any person that purchases 
 21.32  sports memorabilia at wholesale in the metropolitan area. 
 21.33     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 21.34  commissioner of revenue. 
 21.35     Subd. 4.  [SALE.] "Sale" means a transfer of title or 
 21.36  possession of tangible personal property, whether absolutely or 
 22.1   conditionally. 
 22.2      Subd. 5.  [SPORTS MEMORABILIA OR SPORTS LICENSED GOODS.] 
 22.3   (a) "Sports memorabilia" or "sports licensed goods" means items 
 22.4   available for sale to the public that relate to the game of 
 22.5   baseball, such as: 
 22.6      (1) one-of-a-kind items related to baseball figures, teams, 
 22.7   or events; 
 22.8      (2) baseball trading cards; 
 22.9      (3) baseball photographs; 
 22.10     (4) league and individual athlete licensed items; 
 22.11     (5) baseball event licensed items; and 
 22.12     (6) similar items. 
 22.13     (b) It does not include items licensed by: 
 22.14     (1) a sports regulating authority for the purpose of 
 22.15  proving the item meets the standards of the sport; 
 22.16     (2) an elementary, high school, college, or university or 
 22.17  an association, league, or other organization operated by, 
 22.18  organized by, comprised of such entities, or regulating 
 22.19  collegiate or high school baseball. 
 22.20     Subd. 6.  [WHOLESALE OR SALE AT WHOLESALE.] "Wholesale" or 
 22.21  "sale at wholesale" means a sale to a retailer, as defined in 
 22.22  section 297A.01, subdivision 10, for the purpose of reselling 
 22.23  the property to a third party. 
 22.24     Subd. 7.  [WHOLESALER.] "Wholesaler" means any person 
 22.25  making wholesale sales of sports memorabilia to purchasers in 
 22.26  the metropolitan area. 
 22.27     Sec. 10.  [473I.11] [COLLECTION.] 
 22.28     Subdivision 1.  [PAYMENT AND COLLECTION OBLIGATION.] The 
 22.29  buyer must pay the tax to the wholesaler and each wholesaler 
 22.30  must collect from the buyer the full amount of the tax payable 
 22.31  for each taxable sale, unless the state or federal constitution 
 22.32  prohibits the wholesaler from collecting the tax from the buyer. 
 22.33     Subd. 2.  [TAX SEPARATELY STATED.] The tax must be 
 22.34  separately stated from the selling price in any sales invoice or 
 22.35  any instrument of sale.  Failure to separately state the tax 
 22.36  creates a conclusive presumption that the tax has not been 
 23.1   collected. 
 23.2      Subd. 3.  [TAX IS IN ADDITION TO OTHERS.] The tax under 
 23.3   sections 473I.09 to 473I.16 is in addition to any other tax that 
 23.4   applies under the laws of this state. 
 23.5      Sec. 11.  [473I.12] [COMPLEMENTARY USE TAX.] 
 23.6      If the tax is not paid under section 473I.09, a tax is 
 23.7   imposed on possession for sale or use of sports memorabilia or 
 23.8   sports licensed goods in the metropolitan area.  The rate of tax 
 23.9   equals the rate under section 473I.09 and must be paid by the 
 23.10  possessor of the items. 
 23.11     Sec. 12.  [473I.13] [EXEMPTIONS.] 
 23.12     The tax imposed by sections 473I.09 to 473I.16 does not 
 23.13  apply to: 
 23.14     (1) any successive sale if the tax was previously imposed 
 23.15  and collected on the same sports memorabilia or sports licensed 
 23.16  goods; and 
 23.17     (2) any sale of sports memorabilia or sports licensed goods 
 23.18  that is transferred to a point outside of the metropolitan area 
 23.19  for sale or use outside of the metropolitan area.  
 23.20     Sec. 13.  [473I.14] [ADMINISTRATIVE PROVISIONS.] 
 23.21     Subdivision 1.  [APPLICATION OF OTHER CHAPTERS.] To the 
 23.22  extent not inconsistent with sections 473I.09 to 473I.16, the 
 23.23  enforcement, interest, and penalty provisions under chapter 294, 
 23.24  appeal provisions in sections 289A.43 and 289A.65, criminal 
 23.25  penalties in section 289A.63, refund provisions in section 
 23.26  289A.50, and collection and rulemaking provisions under chapter 
 23.27  270, apply to the tax under sections 473I.09 to 473I.16. 
 23.28     Subd. 2.  [QUARTERLY ESTIMATED PAYMENTS.] (a) Each 
 23.29  wholesaler must make estimated payments of the tax for the 
 23.30  calendar year to the commissioner in accordance with an 
 23.31  agreement between the commission and the commissioner in 
 23.32  quarterly installments by April 15, July 15, October 15, and 
 23.33  January 15 of the following calendar year. 
 23.34     (b) Estimated tax payments are not required if the tax for 
 23.35  the calendar year is less than $500. 
 23.36     (c) Underpayment of estimated installments bear interest at 
 24.1   the rate specified in section 270.75, from the due date of the 
 24.2   payment until paid or until the due date of the annual return at 
 24.3   the rate specified in section 270.75.  An underpayment of an 
 24.4   estimated installment is the difference between the amount paid 
 24.5   and the lesser of (1) 90 percent of the one-quarter of the tax 
 24.6   for the calendar year, or (2) the tax for the actual gross 
 24.7   revenues received during the quarter. 
 24.8      Subd. 3.  [ELECTRONIC FUNDS-TRANSFER PAYMENTS.] A taxpayer 
 24.9   with an aggregate tax liability of $120,000 or more during a 
 24.10  fiscal year ending June 30, must remit all liabilities by funds 
 24.11  transfer as defined in section 336.4A-104, paragraph (a), in the 
 24.12  next calendar year.  The funds-transfer payment date, as defined 
 24.13  in section 336.4A-401, is on or before the date the tax is due.  
 24.14  If the date the tax is due is not a funds-transfer business day, 
 24.15  as defined in section 336.4A-105, paragraph (a), clause (4), the 
 24.16  payment date is on or before the first funds-transfer business 
 24.17  day after the date the tax is due. 
 24.18     Subd. 4.  [ANNUAL RETURN.] The taxpayer must file an annual 
 24.19  return reconciling the estimated payments by March 15 of the 
 24.20  following calendar year. 
 24.21     Subd. 5.  [FORM OF RETURNS.] The estimated payments and 
 24.22  annual return must contain the information and be in the form 
 24.23  prescribed by the commissioner. 
 24.24     Sec. 14.  [473I.15] [DISCLOSURE ON PRODUCTS.] 
 24.25     A wholesaler subject to tax under section 473I.09 must 
 24.26  apply a tag, stamp, mark, or other indicia on sports memorabilia 
 24.27  subject to the tax that states "This product was subject to the 
 24.28  special Minnesota park tax" or another statement to similar 
 24.29  effect. 
 24.30     Sec. 15.  [473I.16] [DISPOSITION OF REVENUES.] 
 24.31     The commissioner shall deposit all revenues, including 
 24.32  interest and penalties, derived from the tax imposed on sports 
 24.33  memorabilia and sports licensed goods under section 473I.09 in 
 24.34  the state treasury and credit them to the baseball park account 
 24.35  in the special revenue fund.  
 24.36     Sec. 16.  [APPLICATION.] 
 25.1      This article applies in the counties of Anoka, Carver, 
 25.2   Dakota, Hennepin, Ramsey, Scott, and Washington. 
 25.3      Sec. 17.  [EFFECTIVE DATE.] 
 25.4      Sections 1 to 3 and 16 are effective the day following 
 25.5   final enactment. 
 25.6      Section 4 is effective for taxable years beginning after 
 25.7   December 31, 1997. 
 25.8      Sections 5 and 6 are effective for events occurring and for 
 25.9   admissions on or after January 1, 2001. 
 25.10     Section 7 is effective for sales occurring after December 
 25.11  31, 1997. 
 25.12     Sections 8 to 15 are effective for sales made after June 
 25.13  30, 1998. 
 25.14                             ARTICLE 3
 25.15                          LOTTERY REVENUES
 25.16     Section 1.  Minnesota Statutes 1997 Supplement, section 
 25.17  297A.259, is amended to read: 
 25.18     297A.259 [LOTTERY TICKETS; IN LIEU TAX.] 
 25.19     (a) Sales of state lottery tickets and gross gaming 
 25.20  facility revenue as defined in section 349A.24, subdivision 9, 
 25.21  paragraph (a), are exempt from the tax imposed under section 
 25.22  297A.02. 
 25.23     (b) The state lottery must on or before the 20th day of 
 25.24  each month transmit to the commissioner of revenue an amount 
 25.25  equal to the gross receipts from the sale of lottery tickets for 
 25.26  the previous month, and the gross gaming facility revenue as 
 25.27  defined in section 349A.24, subdivision 9, paragraph (a), 
 25.28  multiplied by the tax rate under section 297A.02, subdivision 
 25.29  1.  The resulting payment is in lieu of the sales tax that 
 25.30  otherwise would be imposed by this chapter.  
 25.31     (c) The commissioner shall deposit the money transmitted 
 25.32  received from the tax on gross receipts from the sale of lottery 
 25.33  tickets as provided by section 297A.44 and the money must be 
 25.34  treated as other proceeds of the sales tax. 
 25.35     Gross receipts (d) The commissioner shall deposit the money 
 25.36  received from the tax on gross gaming facility revenue into the 
 26.1   baseball stadium account established in section 473I.02. 
 26.2      (e) For purposes of this section mean, "gross receipts from 
 26.3   the sale of lottery tickets" means the proceeds of the sale of 
 26.4   tickets before deduction of a commission or other compensation 
 26.5   paid to the vendor or retailer for selling tickets. 
 26.6      Sec. 2.  Minnesota Statutes 1996, section 297E.02, is 
 26.7   amended by adding a subdivision to read: 
 26.8      Subd. 12.  [TAX REBATES AND CREDITS.] A lawful gambling tax 
 26.9   rebate fund is created in the state treasury, consisting of 
 26.10  money deposited in the fund under section 349A.24, subdivision 
 26.11  10, paragraph (c), and interest thereon.  Money in the fund is 
 26.12  appropriated to the commissioner of revenue.  The commissioner 
 26.13  shall spend money so appropriated as tax rebates to 
 26.14  organizations that pay taxes under this section.  The 
 26.15  commissioner shall pay rebates to all such organizations in each 
 26.16  fiscal year in proportion to each organization's total tax paid 
 26.17  under this section in the previous fiscal year.  The 
 26.18  commissioner may grant the rebate as a credit against an 
 26.19  organization's tax owing under this section. 
 26.20     Sec. 3.  Minnesota Statutes 1996, section 349.15, 
 26.21  subdivision 3, is amended to read: 
 26.22     Subd. 3.  [REFUNDS AND CREDITS.] For purposes of this 
 26.23  section "gross profit" does not include any refund, or credit, 
 26.24  or rebate received under section 297E.02, subdivision 4, 
 26.25  paragraph (d); or subdivision 12. 
 26.26     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
 26.27  349.154, subdivision 2, is amended to read: 
 26.28     Subd. 2.  [NET PROFIT REPORTS.] (a) Each licensed 
 26.29  organization must report monthly to the board on a form 
 26.30  prescribed by the board each expenditure and contribution of net 
 26.31  profits from lawful gambling.  The reports must provide for each 
 26.32  expenditure or contribution: 
 26.33     (1) the name, address, and telephone number of the 
 26.34  recipient of the expenditure or contribution; 
 26.35     (2) the date the contribution was approved by the 
 26.36  organization; 
 27.1      (3) the date, amount, and check number of the expenditure 
 27.2   or contribution; 
 27.3      (4) a brief description of how the expenditure or 
 27.4   contribution meets one or more of the purposes in section 
 27.5   349.12, subdivision 25; and 
 27.6      (5) in the case of expenditures authorized under section 
 27.7   349.12, subdivision 25, paragraph (a), clause (7), whether the 
 27.8   expenditure is for a facility or activity that primarily 
 27.9   benefits male or female participants. 
 27.10     (b) The board shall make available to the commissioners of 
 27.11  revenue and public safety copies of reports received under this 
 27.12  subdivision and requested by them. 
 27.13     (c) The report required under this subdivision must provide 
 27.14  for a separate accounting for all expenditures made from the 
 27.15  reporting organization's tax refund or credit authorized under 
 27.16  section 297E.02, subdivision 4, paragraph (d), or rebate or 
 27.17  credit authorized under section 297E.02, subdivision 12. 
 27.18     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
 27.19  349.19, subdivision 2a, is amended to read: 
 27.20     Subd. 2a.  [TAX REFUND AND CREDIT ACCOUNT.] (a) Each 
 27.21  organization that receives a refund or credit under section 
 27.22  297E.02, subdivision 4, paragraph (d), or a tax rebate under 
 27.23  section 297E.02, subdivision 12, must within four business days 
 27.24  of receiving such a refund under that paragraph or rebate 
 27.25  deposit the refund or rebate in the organization's gambling 
 27.26  account. 
 27.27     (b) The organization may expend the tax refund or credit 
 27.28  issued under section 297E.02, subdivision 4, paragraph (d), or 
 27.29  tax rebate or credit issued under section 297E.02, subdivision 
 27.30  12, only for lawful purposes, other than lawful purposes 
 27.31  described in section 349.12, subdivision 25, paragraph (a), 
 27.32  clauses (8), (9), and (12).  Amounts received as refunds or 
 27.33  rebates or allowed as credits must be spent for qualifying 
 27.34  lawful purposes no later than one year after the refund or 
 27.35  credit is received. 
 27.36     Sec. 6.  Minnesota Statutes 1996, section 349A.10, 
 28.1   subdivision 5, is amended to read: 
 28.2      Subd. 5.  [DEPOSIT OF NET PROCEEDS.] (a) Within 30 days 
 28.3   after the end of each month, the director shall deposit in the 
 28.4   state treasury the net proceeds of the lottery, which is the 
 28.5   balance in the lottery fund after transfers to the lottery prize 
 28.6   fund and credits to the lottery operations account.  
 28.7      (b) Of the net proceeds, 40 percent must be credited to the 
 28.8   Minnesota environment and natural resources trust fund, and. 
 28.9      (c) Through June 30, 2001, the remainder must be credited 
 28.10  to the special revenue fund created in section 16A.67, 
 28.11  subdivision 3.  Money credited to the special revenue fund must 
 28.12  be transferred to the debt service fund established in section 
 28.13  16A.67, subdivision 4, at the times and in the amounts 
 28.14  determined by the commissioner of finance to be necessary to 
 28.15  provide for the payment and security of bonds issued pursuant to 
 28.16  section 16A.67.  On or before the tenth day of each month, any 
 28.17  money in the special revenue fund not required to be transferred 
 28.18  to the debt service fund must be transferred to the general fund.
 28.19     (d) On and after July 1, 2001, the first $30,000,000 of the 
 28.20  remainder in each fiscal year must be credited to the sports 
 28.21  facilities fund established in subdivision 5a, and all amounts 
 28.22  in excess of $30,000,000 in that fiscal year must be credited to 
 28.23  the general fund.  This paragraph does not apply to gross gaming 
 28.24  facility revenue as defined in section 349A.24, subdivision 9. 
 28.25     (e) This paragraph does not apply to any lottery revenues 
 28.26  that are governed by section 349A.24. 
 28.27     Sec. 7.  Minnesota Statutes 1996, section 349A.10, is 
 28.28  amended by adding a subdivision to read: 
 28.29     Subd. 5a.  [SPORTS FACILITIES FUND.] A sports facilities 
 28.30  fund is established in the state treasury.  Money in the fund 
 28.31  may be spent by legislative appropriation only for the following 
 28.32  purposes: 
 28.33     (1) payment of debt service on state debt issued for the 
 28.34  construction of a facility for professional hockey in St. Paul; 
 28.35     (2) appropriation to the Minnesota amateur sports 
 28.36  commission for matching grants for the construction, operation, 
 29.1   and maintenance of public ice facilities under section 240A.09; 
 29.2   and 
 29.3      (3) appropriation to the metropolitan sports facilities 
 29.4   commission for remodeling and upgrading of the Hubert H. 
 29.5   Humphrey Metrodome, or for the cost to the commission of lease 
 29.6   adjustments for tenants of the facility. 
 29.7      Sec. 8.  [349A.24] [GAMING FACILITY.] 
 29.8      Subdivision 1.  [AUTHORIZATION.] The director may establish 
 29.9   and operate a gaming facility at a racetrack licensed under 
 29.10  section 240.06.  
 29.11     Subd. 2.  [FACILITY.] The director shall design and 
 29.12  construct a gaming facility at the racetrack or enter into an 
 29.13  agreement with the holder of a class B license at the racetrack 
 29.14  for the design and construction of the gaming facility. 
 29.15     Subd. 3.  [MANAGEMENT.] (a) The director shall enter into 
 29.16  an agreement with one or more federally recognized Indian tribes 
 29.17  within the state for management services for the gaming 
 29.18  facility, including the provision of personnel for the 
 29.19  management and operation of the facility.  
 29.20     Subd. 4.  [EQUIPMENT.] The director shall purchase or lease 
 29.21  necessary equipment for the operation of the gaming facility.  
 29.22  Section 349A.07 applies to contracts entered into under this 
 29.23  subdivision. 
 29.24     Subd. 5.  [GAMES.] The director shall operate electronic 
 29.25  and mechanical gambling devices at the gaming facility.  The 
 29.26  director may not conduct any other form of gaming at the 
 29.27  facility.  The director shall prescribe game procedures for 
 29.28  devices authorized under this subdivision as provided in section 
 29.29  349A.04.  Section 349A.13, clause (2), does not apply to devices 
 29.30  authorized under this subdivision. 
 29.31     Subd. 6.  [PRIZES.] A person who plays a game at the gaming 
 29.32  facility agrees to be bound by the game procedures applicable to 
 29.33  that particular game.  The player acknowledges that the 
 29.34  determination of whether the player has won a prize is subject 
 29.35  to the rules of the director, game procedures established for 
 29.36  that game, claim procedures established for that game, and 
 30.1   confidential or public validation procedures established by the 
 30.2   director for that game.  Any prize won at the gaming facility is 
 30.3   not subject to the provisions of section 349A.08, subdivision 8. 
 30.4      Subd. 7.  [AGE RESTRICTIONS.] No person under the age of 18 
 30.5   years may play any game at the gaming facility or win a prize 
 30.6   from any game at the facility. 
 30.7      Subd. 8.  [CONFLICT OF INTEREST.] The director or any 
 30.8   employee of the lottery, or a member of the immediate family of 
 30.9   the director or employee residing in the same household, may not 
 30.10  play any game or win any prize from a game at the gaming 
 30.11  facility or have any interest in any contract entered into by 
 30.12  the director for the operation of the facility. 
 30.13     Subd. 9.  [ALLOCATION OF GROSS GAMING FACILITY REVENUE.] (a)
 30.14  For purposes of this section, "gross gaming facility revenue" 
 30.15  means all amounts paid into electronic and mechanical gambling 
 30.16  devices less prizes paid out. 
 30.17     (b) The director shall deposit the gross gaming facility 
 30.18  revenue into the lottery fund.  The director may create a net 
 30.19  operating reserve and deposit fund as necessary to meet the 
 30.20  operating expenses of the lottery, provided that the amount so 
 30.21  credited in any fiscal year into the net operating reserve 
 30.22  account may not exceed 15 percent of gross gaming facility 
 30.23  revenue. 
 30.24     (c) By January 15 of each year, the director shall pay to 
 30.25  the class B licensee at the racetrack an amount equal to 19 
 30.26  percent of the gross gaming facility revenue for the previous 
 30.27  calendar year.  Of this amount, the licensee must spend not less 
 30.28  than 26 percent in the year in which it is received for purses 
 30.29  on horse races the licensee conducts at the racetrack. 
 30.30     (d) By July 15 of each year, the director shall deposit one 
 30.31  percent of gross gaming facility revenues for the previous 
 30.32  fiscal year in the state treasury for credit to a gaming 
 30.33  facility local grant fund which is hereby created.  Money in the 
 30.34  fund is annually appropriated to the commissioner of public 
 30.35  safety.  The commissioner may spend this appropriation only as 
 30.36  grants to the county, city, and town in which the gaming 
 31.1   facility is located, to assist them in paying for 
 31.2   infrastructure, law enforcement, and other costs directly 
 31.3   related to the location of the gaming facility.  The 
 31.4   commissioner may by rule provide for applications for grants 
 31.5   from the fund and criteria for making grants.  Any money 
 31.6   appropriated to the commissioner under this paragraph that is 
 31.7   not spent by the end of the fiscal year in which it is 
 31.8   appropriated cancels to the general fund. 
 31.9      (e) By July 15 of each year, the director shall deposit two 
 31.10  percent of the gross gaming facility revenues for the previous 
 31.11  fiscal year in the state treasury for credit to a Minnesota 
 31.12  Indian benefit fund.  Money in the fund is appropriated to the 
 31.13  commissioner of administration.  The commissioner shall spend 
 31.14  money in the fund for grants for projects and programs that are 
 31.15  primarily intended to advance the economic, physical, and social 
 31.16  well-being of Minnesota Indians who receive little or no direct 
 31.17  economic benefits from the operation of tribal gaming facilities 
 31.18  in the state.  
 31.19     Subd. 10.  [ALLOCATION OF NET GAMING FACILITY REVENUE.] (a) 
 31.20  For purposes of this section, "net gaming facility revenue" 
 31.21  means the gross gaming facility revenue as defined in 
 31.22  subdivision 9, less expenditures and payments by the director 
 31.23  under subdivision 9, paragraphs (b), (c), and (d). 
 31.24     (b) Within 30 days after the end of each month in which net 
 31.25  gaming facility revenue is received, the director shall deposit 
 31.26  the net gaming facility revenue into the state treasury.  Of the 
 31.27  amount so deposited: 
 31.28     (1) sixty percent of the net gaming facility revenues must 
 31.29  be credited to the baseball stadium account established in 
 31.30  section 473I.02; and 
 31.31     (2) forty percent of the net gaming facility revenue must 
 31.32  be credited to the Minnesota environment and natural resources 
 31.33  trust fund.  
 31.34     (c) On and after July 1, 2002, the amount credited to the 
 31.35  baseball stadium account under paragraph (b) may not exceed 
 31.36  $30,000,000 in any fiscal year.  Amounts in excess of 
 32.1   $30,000,000 in any fiscal year that would otherwise be credited 
 32.2   to the baseball stadium account must be credited to the lawful 
 32.3   gambling tax rebate fund established under section 297E.02, 
 32.4   subdivision 12. 
 32.5      Sec. 9.  [APPROPRIATION.] 
 32.6      $12,000,000 is appropriated from the general fund to the 
 32.7   director of the Minnesota state lottery for initial expenses 
 32.8   required to implement section 8.  This appropriation must be 
 32.9   repaid from the state lottery fund, with interest computed at 
 32.10  the average monthly rate on invested treasurer's cash, within 
 32.11  six months of the date on which the director first conducts 
 32.12  gaming at the gaming facility under section 8. 
 32.13     Sec. 10.  [EFFECTIVE DATE.] 
 32.14     (a) Sections 1 to 9 are effective the day following final 
 32.15  enactment. 
 32.16     (b) The director may not take any action to implement 
 32.17  section 8, or spend any money appropriated under section 9, for 
 32.18  60 days after the effective date of sections 1 to 9.  The 
 32.19  director may not implement section 8, or spend any money 
 32.20  appropriated under section 9, after the 60th day after the 
 32.21  effective date of sections 1 to 9 if at any time during the 
 32.22  60-day period the governor informs the director that an amount 
 32.23  has been received or assured from nonstate sources that will 
 32.24  approximately equal the annual revenues to be deposited under 
 32.25  section 8, subdivision 10, paragraph (b), for a length of time 
 32.26  sufficient to pay all anticipated debt service for debt 
 32.27  obligations authorized under article 1, section 18. 
 32.28                             ARTICLE 4 
 32.29                             GOVERNANCE 
 32.30     Section 1.  Minnesota Statutes 1996, section 473.553, 
 32.31  subdivision 2, is amended to read: 
 32.32     Subd. 2.  [MEMBERSHIP.] The commission shall consist of six 
 32.33  16 members, plus a chair appointed as provided in subdivision 3, 
 32.34  13 of whom shall be voting members and four of whom shall be 
 32.35  nonvoting members.  
 32.36     (a) Six voting members shall be appointed by the city 
 33.1   council of the city in which the stadium metrodome is located 
 33.2   plus a chair appointed as provided in subdivision 3.  
 33.3      (b) Six voting members from the metropolitan area shall be 
 33.4   appointed by the governor.  The governor's appointees shall 
 33.5   reflect fairly the various interests throughout the metropolitan 
 33.6   area that are affected by the commission's ownership and 
 33.7   operation of the metrodome and baseball park.  
 33.8      (c) Four nonvoting members shall be legislators, two state 
 33.9   representatives and two state senators.  One state 
 33.10  representative shall be appointed by the speaker of the house 
 33.11  and one state representative shall be appointed by the minority 
 33.12  caucus leader.  The two state senators shall be appointed by the 
 33.13  subcommittee on committees of the senate committee on rules and 
 33.14  administration. 
 33.15     Sec. 2.  Minnesota Statutes 1996, section 473.553, 
 33.16  subdivision 3, is amended to read: 
 33.17     Subd. 3.  [CHAIR.] The chair shall be appointed by the 
 33.18  governor as the ninth 13th voting member and shall meet all of 
 33.19  the qualifications of a member, except the chair need only 
 33.20  reside outside the city of Minneapolis.  The chair shall preside 
 33.21  at all meetings of the commission, if present, and shall perform 
 33.22  all other duties and functions assigned by the commission or by 
 33.23  law.  The commission may appoint from among its members a 
 33.24  vice-chair to act for the chair during temporary absence or 
 33.25  disability. 
 33.26     Sec. 3.  Minnesota Statutes 1996, section 473.553, 
 33.27  subdivision 4, is amended to read: 
 33.28     Subd. 4.  [QUALIFICATIONS.] A voting member shall not 
 33.29  during a term of office hold the office of metropolitan council 
 33.30  member or be a member of another metropolitan agency or hold any 
 33.31  judicial office or office of state government.  None of the 
 33.32  members appointed by the city council of the city in which 
 33.33  the stadium metrodome is located shall be an elected public 
 33.34  official of that city or of another political subdivision any 
 33.35  part of whose territory is shared with that city.  Each member 
 33.36  shall qualify by taking and subscribing the oath of office 
 34.1   prescribed by the Minnesota Constitution, article V, section 6.  
 34.2   The oath, duly certified by the official administering it, shall 
 34.3   be filed with the chair of the metropolitan council.  
 34.4      Sec. 4.  Minnesota Statutes 1996, section 473.553, 
 34.5   subdivision 5, is amended to read: 
 34.6      Subd. 5.  [TERMS.] The terms of three the voting members 
 34.7   shall end the first Monday in January in the year ending in the 
 34.8   numeral "5".  The terms of the other members and the chair shall 
 34.9   end the first Monday in January in the year ending in the 
 34.10  numeral "7".  The term of each member and, other than the chair, 
 34.11  shall be four years.  The terms shall continue until a successor 
 34.12  is appointed and qualified.  Members may be removed only for 
 34.13  cause.  The chair serves at the pleasure of the governor.  Each 
 34.14  nonvoting member appointed as provided in subdivision 2, 
 34.15  paragraph (c), shall serve at the pleasure of the respective 
 34.16  appointing authority. 
 34.17     Sec. 5.  [REPEALER.] 
 34.18     Minnesota Statutes 1996, section 473.553, subdivision 14, 
 34.19  is repealed.  
 34.20     Sec. 6.  [APPLICATION.] 
 34.21     This article applies in the counties of Anoka, Carver, 
 34.22  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 34.23     Sec. 7.  [EFFECTIVE DATE.] 
 34.24     Sections 1 to 6 are effective the day following final 
 34.25  enactment.