SF 2

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

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

  1.1                          A bill for an act 
  1.2             relating to capital improvements; providing for a 
  1.3             process to construct, fund, maintain, and govern a 
  1.4             major league baseball park; providing for powers and 
  1.5             duties of the metropolitan sports facilities 
  1.6             commission; authorizing certain taxes, revenue 
  1.7             distributions, bonds and other debt obligations, and 
  1.8             allocations; appropriating money for the baseball 
  1.9             park, a professional hockey arena in the city of St. 
  1.10            Paul, and the Minneapolis convention center; 
  1.11            authorizing taxation for the Duluth entertainment 
  1.12            convention center; amending Minnesota Statutes 1996, 
  1.13            sections 297A.135, subdivisions 2, 3, 4, and by adding 
  1.14            a subdivision; 297A.25, subdivision 60, and by adding 
  1.15            a subdivision; 349A.10, subdivision 5, and by adding 
  1.16            subdivisions; 473.551, subdivision 8, and by adding 
  1.17            subdivisions; 473.552; 473.553, subdivision 1; 
  1.18            473.556, subdivisions 3, 4, 5, and by adding 
  1.19            subdivisions; 473.595, subdivision 1; and 473F.08, 
  1.20            subdivision 5, and by adding a subdivision; Laws 1986, 
  1.21            chapter 396, sections 2, subdivision 1, as amended; 
  1.22            and 4, subdivision 3; Laws 1993, chapter 375, article 
  1.23            9, section 46, subdivisions 2, as amended, and 5; 
  1.24            proposing coding for new law in Minnesota Statutes, 
  1.25            chapter 473; proposing coding for new law as Minnesota 
  1.26            Statutes, chapters 473I; and 473J; repealing Laws 
  1.27            1986, chapter 396, section 2, subdivision 2. 
  1.28  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.29                             ARTICLE 1 
  1.30                     BASEBALL PARK CONSTRUCTION 
  1.31     Section 1.  Minnesota Statutes 1996, section 473.551, 
  1.32  subdivision 8, is amended to read: 
  1.33     Subd. 8.  [SPORTS FACILITY OR SPORTS FACILITIES.] "Sports 
  1.34  facility" or "sports facilities" means real or personal property 
  1.35  comprising a stadium, stadiums, baseball parks, or arenas 
  1.36  suitable for university or major league professional baseball, 
  2.1   for university or major league professional football and soccer, 
  2.2   or for both, or for university or major league hockey or 
  2.3   basketball, or for both, together with adjacent parking 
  2.4   facilities, including on the effective date of Laws 1994, 
  2.5   chapter 648, the metrodome, the baseball park, the met center, 
  2.6   and, upon acquisition by the commission, the basketball and 
  2.7   hockey arena. 
  2.8      Sec. 2.  Minnesota Statutes 1996, section 473.551, is 
  2.9   amended by adding a subdivision to read: 
  2.10     Subd. 18.  [BASEBALL PARK.] "Baseball park" means a park 
  2.11  owned by the commission and designed for playing major league 
  2.12  professional baseball, as specified in section 473.5991. 
  2.13     Sec. 3.  Minnesota Statutes 1996, section 473.551, is 
  2.14  amended by adding a subdivision to read: 
  2.15     Subd. 19.  [BASEBALL PARK REVENUE.] "Baseball park revenue" 
  2.16  means all revenue received by or payable to the commission 
  2.17  arising from its ownership and operation of the baseball park 
  2.18  including, but not limited to, revenues from admission taxes or 
  2.19  other special taxes, bond proceeds, fees, lottery proceeds, 
  2.20  loans, and gifts. 
  2.21     Sec. 4.  Minnesota Statutes 1996, section 473.551, is 
  2.22  amended by adding a subdivision to read: 
  2.23     Subd. 20.  [BASEBALL TEAM.] "Baseball team" means a major 
  2.24  league professional baseball team. 
  2.25     Sec. 5.  Minnesota Statutes 1996, section 473.551, is 
  2.26  amended by adding a subdivision to read: 
  2.27     Subd. 21.  [CITY.] "City" when referring to anything 
  2.28  involving the baseball park means the city in which the baseball 
  2.29  park is located. 
  2.30     Sec. 6.  Minnesota Statutes 1996, section 473.551, is 
  2.31  amended by adding a subdivision to read: 
  2.32     Subd. 22.  [COUNTY.] "County" when referring to anything 
  2.33  involving the baseball park means the county in which the 
  2.34  baseball park is located. 
  2.35     Sec. 7.  Minnesota Statutes 1996, section 473.551, is 
  2.36  amended by adding a subdivision to read: 
  3.1      Subd. 23.  [OWNER.] "Owner" means the individual or person 
  3.2   who directly or indirectly owns an interest in the baseball team.
  3.3   Owner does not mean the commission.  
  3.4      Sec. 8.  Minnesota Statutes 1996, section 473.552, is 
  3.5   amended to read: 
  3.6      473.552 [LEGISLATIVE POLICY; PURPOSE.] 
  3.7      The legislature finds that: 
  3.8      (a) (1) the population in the metropolitan area has a need 
  3.9   for sports facilities and that this need cannot be met 
  3.10  adequately by the activities of individual municipalities, by 
  3.11  agreements among municipalities, or by the private efforts of 
  3.12  the people in the metropolitan area,; 
  3.13     (b) (2) the commission's ownership and operation of the 
  3.14  metrodome and met center has met in part the foregoing need and 
  3.15  has promoted the economic and social interests of the 
  3.16  metropolitan area, of the state, and of the public, and; 
  3.17     (c) (3) the commission's acquisition of the basketball and 
  3.18  hockey arena on the terms and conditions provided in sections 
  3.19  473.598 and 473.599 shall similarly and more fully meet the 
  3.20  foregoing needs and promote these interests; and 
  3.21     (4) the commission's construction and operation of the 
  3.22  baseball park by reasonable methods that the legislature and the 
  3.23  commission may devise to secure the long-term commitment of the 
  3.24  baseball team, including, but not limited to, the assignment of 
  3.25  the operation of the baseball park to a private entity, all of 
  3.26  which may further secure and promote these public purposes, will 
  3.27  likewise meet the foregoing needs and promote these interests. 
  3.28  It is therefore necessary for the public health, safety and 
  3.29  general welfare to establish a procedure for the acquisition and 
  3.30  betterment of sports facilities and to create a metropolitan 
  3.31  sports facilities commission. 
  3.32     Sec. 9.  Minnesota Statutes 1996, section 473.553, 
  3.33  subdivision 1, is amended to read: 
  3.34     Subdivision 1.  [GENERAL.] The metropolitan sports 
  3.35  facilities commission is established and as a local governmental 
  3.36  unit and political subdivision of the state that may exercise 
  4.1   its powers within the metropolitan area.  The commission shall 
  4.2   be organized, structured, and administered as provided in this 
  4.3   section. 
  4.4      Sec. 10.  Minnesota Statutes 1996, section 473.556, 
  4.5   subdivision 3, is amended to read: 
  4.6      Subd. 3.  [ACQUISITION OF PROPERTY.] The commission may 
  4.7   acquire by lease, purchase, gift, or devise all necessary right, 
  4.8   title, and interest in and to real or personal property deemed 
  4.9   necessary to the purposes contemplated by sections 473.551 to 
  4.10  473.599 within the limits of the metropolitan area.  The city, 
  4.11  county, or commission may exercise the right of eminent domain 
  4.12  under chapter 117 to acquire a site for the baseball park and, 
  4.13  from time to time such other property, real, personal and 
  4.14  intangible, as are essential and integral to the successful 
  4.15  operation of a sports facility.  
  4.16     Sec. 11.  Minnesota Statutes 1996, section 473.556, 
  4.17  subdivision 4, is amended to read: 
  4.18     Subd. 4.  [EXEMPTION OF PROPERTY.] Any real or personal 
  4.19  property acquired, owned, leased, controlled, used, or occupied 
  4.20  by the commission for any of the purposes of sections 473.551 to 
  4.21  473.599 is declared to be acquired, owned, leased, controlled, 
  4.22  used and occupied for public, governmental, and municipal 
  4.23  purposes, and shall be exempt from ad valorem taxation by the 
  4.24  state or any political subdivision of the state, provided that 
  4.25  such properties shall be subject to special assessments levied 
  4.26  by a political subdivision for a local improvement in amounts 
  4.27  proportionate to and not exceeding the special benefit received 
  4.28  by the properties from the improvement.  No possible use of any 
  4.29  such properties in any manner different from their use under 
  4.30  sections 473.551 to 473.599 at the time shall be considered in 
  4.31  determining the special benefit received by the properties.  All 
  4.32  assessments shall be subject to final confirmation by the 
  4.33  council, whose determination of the benefits shall be conclusive 
  4.34  upon the political subdivision levying the assessment.  
  4.35  Notwithstanding the provisions of section 272.01, subdivision 2, 
  4.36  or 273.19, real or personal property leased by the commission to 
  5.1   another person for uses related to the purposes of sections 
  5.2   473.551 to 473.599, including the operation of the metrodome, 
  5.3   baseball park, met center, and, if acquired by the commission, 
  5.4   the basketball and hockey arena shall be exempt from taxation 
  5.5   regardless of the length of the lease.  The provisions of this 
  5.6   subdivision, insofar as they require exemption or special 
  5.7   treatment, shall not apply to any real property comprising the 
  5.8   met center which is leased by the commission for residential, 
  5.9   business, or commercial development or other purposes different 
  5.10  from those contemplated in sections 473.551 to 473.599. 
  5.11     Sec. 12.  Minnesota Statutes 1996, section 473.556, 
  5.12  subdivision 5, is amended to read: 
  5.13     Subd. 5.  [FACILITY OPERATION.] The commission may equip, 
  5.14  improve, operate, manage, maintain, and control the 
  5.15  metrodome, baseball park, met center, basketball and hockey 
  5.16  arena and sports facilities constructed, remodeled, or acquired 
  5.17  under the provisions of sections 473.551 to 473.599. 
  5.18     Sec. 13.  Minnesota Statutes 1996, section 473.556, is 
  5.19  amended by adding a subdivision to read: 
  5.20     Subd. 18.  [PRIVATE CONTRIBUTIONS.] Notwithstanding the 
  5.21  requirements of subdivision 9, the commission may accept grants, 
  5.22  gifts, or loans from public or private sources to further its 
  5.23  public purposes with respect to the baseball park.  The 
  5.24  contributions may be used by the commission for any purpose 
  5.25  related to the baseball park under sections 473.5991 to 
  5.26  473.5995, including, but not limited to, payment of revenue 
  5.27  bonds or revenue anticipation certificates issued under section 
  5.28  473.5993, or reducing or eliminating any ownership, operations, 
  5.29  or other obligations or liabilities of the commission under 
  5.30  sections 473.5991 to 473.5995. 
  5.31     Sec. 14.  Minnesota Statutes 1996, section 473.556, is 
  5.32  amended by adding a subdivision to read: 
  5.33     Subd. 19.  [BASEBALL PARK REVENUE.] The commission may 
  5.34  spend baseball park revenue to pay any reasonable expenses 
  5.35  necessary to administer, operate, improve, or maintain the 
  5.36  baseball park or to pay debt service on bonds or other 
  6.1   obligations sold for purposes of the baseball park.  Baseball 
  6.2   park revenue must be segregated from other revenue of the 
  6.3   commission. 
  6.4      Sec. 15.  [473.5991] [BASEBALL PARK.] 
  6.5      Subdivision 1.  [ESSENTIAL CHARACTERISTICS.] The baseball 
  6.6   park must be designed for playing major league baseball and no 
  6.7   other major league spectator sport that uses a surface or 
  6.8   seating configuration different from major league baseball.  The 
  6.9   baseball park shall be designed to have a retractable roof, but 
  6.10  no roof shall be constructed unless the owner pays the 
  6.11  commission in advance for the cost of the roof.  The baseball 
  6.12  park may include parking or other transit facilities for 
  6.13  patrons, performers, and employees and may include other 
  6.14  amenities to enhance or make the use of the baseball park 
  6.15  convenient and predictably accessible to all.  
  6.16     Subd. 2.  [DESIGN.] The commission shall determine the 
  6.17  program elements of the baseball park, including, but not 
  6.18  limited to, capacity, suites, club seats, clubs, and amenities.  
  6.19  The commission shall also determine the baseball park design, 
  6.20  and the selection of the project construction team, including 
  6.21  the architect and general contractor. 
  6.22     Subd. 3.  [SITE OPTIONS AND DEADLINE.] Before January 1, 
  6.23  1998, the city of Minneapolis may demonstrate by resolution its 
  6.24  ability and commitment to make available a site that meets the 
  6.25  commission's criteria and is fully acceptable to the 
  6.26  commission.  The commission shall then designate the site in the 
  6.27  city of Minneapolis as the baseball park location.  If the city 
  6.28  of Minneapolis does not demonstrate that ability and commitment 
  6.29  before January 1, 1998, the commission shall design a process to 
  6.30  select a site within the metropolitan area and request site 
  6.31  proposals from any municipality, including from the city of 
  6.32  Minneapolis.  The process to select a site must include a 
  6.33  procedure to set minimum specifications for the site, including 
  6.34  the necessary or desirable appropriate economic development 
  6.35  possibilities on adjacent property.  The process must consider 
  6.36  the capture and use of incremental revenue paid to or enjoyed by 
  7.1   public entities, as a result of or in anticipation of the 
  7.2   baseball park, as revenue sources for funding the baseball park. 
  7.3      Nothing in this act is intended to supersede amendment 
  7.4   number 145 to the home rule charter of the city of Minneapolis, 
  7.5   if the amendment is adopted at the election held in November 
  7.6   1997. 
  7.7      Subd. 4.  [RELATED INFRASTRUCTURE.] The commission shall 
  7.8   negotiate with the appropriate government entities, including 
  7.9   the city and county within which the baseball park is located, 
  7.10  and the metropolitan council for necessary or appropriate 
  7.11  infrastructure improvements to support the existence and 
  7.12  operation of the baseball park, the movement of patrons to and 
  7.13  from the baseball park, and their comfort, safety, and 
  7.14  convenience while in and around the baseball park. 
  7.15     Subd. 5.  [CONSTRUCTION METHODS.] The commission may 
  7.16  contract for construction materials, supplies, and equipment in 
  7.17  accordance with section 471.345, except that the commission may 
  7.18  employ persons, firms, or corporations to perform one or more or 
  7.19  all of the functions of architect, engineer, construction 
  7.20  manager, or contractor for both design and construction, with 
  7.21  respect to all or part of a project to build or remodel sports 
  7.22  facilities.  Contractors shall be selected through the process 
  7.23  of public bidding, under section 471.345, except that the 
  7.24  commission may narrow the listing of eligible bidders to those 
  7.25  the commission determines to possess sufficient expertise to 
  7.26  perform the intended functions and the commission may negotiate 
  7.27  with the three lowest responsible bidders to achieve the best 
  7.28  and final offer.  The commission may require a construction 
  7.29  manager to certify a construction price and completion date to 
  7.30  the commission.  The commission may require the posting of a 
  7.31  bond in an amount determined by the commission to cover any 
  7.32  costs that may be incurred over and above the certified price, 
  7.33  including, but not limited to, costs incurred by the commission 
  7.34  or loss of revenues resulting from incomplete construction on 
  7.35  the completion date and any other obligations the commission may 
  7.36  require the construction manager to bear.  The commission shall 
  8.1   secure surety bonds as required in section 574.26 securing 
  8.2   payment of just claims in connection with all public work 
  8.3   undertaken by it.  Persons entitled to the protection of the 
  8.4   bonds may enforce them as provided in sections 574.28 to 574.32 
  8.5   and are not entitled to a lien on any property of the commission 
  8.6   under sections 514.01 to 514.16. 
  8.7      Sec. 16.  [473.5992] [DETERMINATIONS BEFORE BONDS SOLD.] 
  8.8      Subdivision 1.  [WHEN.] (a) The commission must do what it 
  8.9   is required to do and determine that others have done what they 
  8.10  are required to do under this section before it authorizes the 
  8.11  sale of bonds under section 473.5993. 
  8.12     (b) If paragraph (a) is not complied with by March 31, 
  8.13  1998, the commission or the owner may require negotiations to 
  8.14  cease.  If the owner requires negotiations to cease under this 
  8.15  subdivision or subdivision 7, the owner shall pay all costs and 
  8.16  expenses of all deliberations of the commission incurred through 
  8.17  the date when negotiations cease. 
  8.18     Subd. 2.  [30-YEAR USE AGREEMENT.] (a) The commission must 
  8.19  execute agreements with the owner and the baseball team to use 
  8.20  the baseball park for all scheduled regular season and all 
  8.21  post-season division, league, and world series championship 
  8.22  play-off home games for no less than 30 years. 
  8.23     (b) The agreements shall afford to the commission, or to 
  8.24  another public entity as the commission deems appropriate, the 
  8.25  rights and remedies that are deemed necessary and appropriate to 
  8.26  provide reasonable assurances that the baseball team and the 
  8.27  owner will comply with the agreements throughout the 30-year 
  8.28  term.  The remedies must include liquidated damages in the 
  8.29  amount of $250,000,000, payable by the baseball team and the 
  8.30  owner jointly and severally to the commission in the event the 
  8.31  team relocates to another ballpark within the 30-year period, 
  8.32  less 1/30 of that amount for each year the team has met its 
  8.33  obligation to play in the baseball park.  The remedies may 
  8.34  include specific performance and injunctive relief and any other 
  8.35  equitable remedies and any additional remedies or ownership, 
  8.36  voting, or other security arrangements the commission reasonably 
  9.1   determines to be effective in ensuring the baseball team will 
  9.2   play the required games in the baseball park throughout the 
  9.3   30-year term.  In the enforcement of the agreements, the 
  9.4   commission may elect from among the rights and remedies provided 
  9.5   for in this paragraph, and that election does not extinguish the 
  9.6   commission's other rights and remedies except as may otherwise 
  9.7   be provided by law.  It is the intent of the legislature that a 
  9.8   material breach of an agreement between the commission and other 
  9.9   public bodies and professional athletic teams that commit to the 
  9.10  long-term playing of major league games at public facilities is 
  9.11  deemed to cause irreparable harm for which no adequate remedy at 
  9.12  law is available and that the grant of equitable relief to 
  9.13  remedy the breach is in the public interest and shall be 
  9.14  liberally so construed.  
  9.15     (c) The agreements shall provide for the annual payment of 
  9.16  rent by the baseball team for the use and enjoyment of the 
  9.17  baseball park, and for the allocation, between the commission 
  9.18  and the baseball team of all other revenues from whatever source 
  9.19  attributable to the baseball park. 
  9.20     Subd. 3.  [COMMUNITY OWNERSHIP.] The governor must submit 
  9.21  to the legislature by March 1, 1998, a plan to transfer the 
  9.22  ownership of the baseball team to the community through the sale 
  9.23  of shares to the public or through transfer of shares or other 
  9.24  interests in the team to a private nonprofit entity, or both, or 
  9.25  through some other means.  The commission may not authorize the 
  9.26  sale of bonds under section 473.5993 until a plan for community 
  9.27  ownership, either as submitted by the governor or as modified by 
  9.28  the legislature, has been approved by an act of the 
  9.29  legislature.  The agreements under subdivision 2 must provide 
  9.30  that the owner will use its good faith efforts to cause major 
  9.31  league baseball to approve the community ownership plan approved 
  9.32  by the legislature. 
  9.33     Subd. 4.  [OWNER'S ABILITY TO COMPLY.] The baseball team 
  9.34  and the owner must provide information sufficient to satisfy the 
  9.35  commission of the baseball team's and the owner's ability to 
  9.36  comply with the terms of the 30-year agreements. 
 10.1      Subd. 5.  [OWNER'S DONATION.] The owner must make an 
 10.2   enforceable pledge, in a form satisfactory to the commission, to 
 10.3   make a donation to the commission of cash or marketable 
 10.4   securities in an amount not less than $111,000,000 to help pay 
 10.5   the costs of constructing the baseball park, to be paid on a 
 10.6   date satisfactory to the commission.  If the owner does not pay 
 10.7   for the cost of constructing a retractable roof, the owner's 
 10.8   contribution shall be reduced accordingly. 
 10.9      Subd. 6.  [CONSTRUCTION COST OVERRUNS.] The commission, the 
 10.10  owner, and the baseball team must execute agreements to provide 
 10.11  that the owner and the baseball team are responsible for the 
 10.12  payment of any and all costs incurred in the construction of the 
 10.13  baseball park that exceed the guaranteed maximum price. 
 10.14     Subd. 7.  [PRIVATE SECTOR SUPPORT.] (a) Private sector 
 10.15  support for construction of the baseball park must be 
 10.16  demonstrated by the following:  
 10.17     (1) at least 80 percent of the private suites provided for 
 10.18  in the proposal for the baseball park have been sold or leased 
 10.19  for at least ten years; 
 10.20     (2) at least 80 percent of the club seats provided for in 
 10.21  the proposal for the baseball park are sold or leased for the 
 10.22  opening season; 
 10.23     (3) at least $25,000,000 in qualified pledges to purchase 
 10.24  permanent seat licenses are made; and 
 10.25     (4) pledges to purchase 22,000 season tickets for the 
 10.26  opening season are made. 
 10.27     (b) If the conditions in this subdivision are not met by 
 10.28  March 31, 1998, either the owner or the commission may require 
 10.29  negotiations for the baseball park to cease. 
 10.30     Subd. 8.  [PRIVATE SECTOR CAPITAL PLAN.] The owner must 
 10.31  develop a private sector capital plan approved by the commission 
 10.32  that includes the sale or lease of some or all promotional 
 10.33  rights in the baseball park. 
 10.34     Subd. 9.  [MAJOR LEAGUE BASEBALL CONTRIBUTION.] The 
 10.35  commission and the owner must enter into an agreement that 
 10.36  provides that the owner will use its best efforts to obtain 
 11.1   construction money for the baseball park from major league 
 11.2   baseball. 
 11.3      Subd. 10.  [COMMISSION TITLE TO PROPERTY.] The commission 
 11.4   must acquire, contract to acquire, or begin eminent domain 
 11.5   proceedings to acquire title to all real property including all 
 11.6   easements and other appurtenances needed for the construction 
 11.7   and operation of the baseball park and must receive a grant of 
 11.8   money or enter into agreements sufficient to ensure the receipt 
 11.9   of money, at the time and in the amount required, to make any 
 11.10  payment upon which the commission's acquisition of title and 
 11.11  possession of the real property is conditioned. 
 11.12     Subd. 11.  [SUFFICIENT MONEY FOR CLEARING PROPERTY.] The 
 11.13  commission must receive a grant of money or enter into 
 11.14  agreements sufficient in the judgment of the commission to 
 11.15  ensure the receipt of money, at the time and in the amount 
 11.16  required, to pay all costs of clearing the real property needed 
 11.17  for the construction and operation of the baseball park of all 
 11.18  improvements thereon which would interfere with the construction 
 11.19  or operation of the baseball park.  
 11.20     Subd. 12.  [GUARANTEED MAXIMUM PRICE.] The commission must 
 11.21  execute agreements that provide for the construction of the 
 11.22  baseball park for a guaranteed maximum price and substantial 
 11.23  completion date of April 1, 2001, and that requires performance 
 11.24  bonds in an amount at least equal to 100 percent of the 
 11.25  guaranteed maximum price to cover any costs incurred over and 
 11.26  above the guaranteed maximum price, including, but not limited 
 11.27  to, costs incurred by the commission or loss of revenues 
 11.28  resulting from incomplete construction on the substantial 
 11.29  completion date. 
 11.30     Subd. 13.  [NO STRIKES OR LOCKOUTS.] The commission must 
 11.31  execute agreements with appropriate labor organizations and 
 11.32  construction contractors that provide that no labor strikes or 
 11.33  management lockouts will delay construction. 
 11.34     Subd. 14.  [BASEBALL TEAM TO OPERATE BASEBALL PARK.] (a) 
 11.35  The commission must execute agreements with the owner and the 
 11.36  baseball team that provide for operation and maintenance of the 
 12.1   baseball park at the expense of the owner and the team. 
 12.2      (b) The agreements may provide that: 
 12.3      (1) the baseball team will manage, maintain, operate, and 
 12.4   repair the baseball park and may contract with one or more 
 12.5   entities to operate part or all of the baseball park all subject 
 12.6   to the approval of the commission; and 
 12.7      (2) the baseball team shall contract with one or more 
 12.8   concessionaires to provide food and beverages for the baseball 
 12.9   park subject to the approval of the commission. 
 12.10     (c) The agreements must provide criteria for maintenance 
 12.11  and operation of the baseball park and remedies as referred to 
 12.12  in subdivision 2, paragraphs (b) and (c), that may be exercised 
 12.13  by the commission to ensure that the criteria are met.  The 
 12.14  agreements must also require that the baseball team and its 
 12.15  affiliates and subsidiaries that are involved in the maintenance 
 12.16  and operation provide annually audited financial statements to 
 12.17  the commission. 
 12.18     Subd. 15.  [OPERATION OF BASEBALL TEAM.] The commission and 
 12.19  the owner must enter into an agreement that obligates the owner 
 12.20  to operate the baseball team in good faith so as to achieve 
 12.21  profitable operation.  
 12.22     Subd. 16.  [COMMISSION PARTICIPATION IN BASEBALL TEAM 
 12.23  CONTRACTS.] The commission and the owner must execute an 
 12.24  agreement that provides that the commission may participate in 
 12.25  the negotiations of any operations, concessions, naming rights, 
 12.26  advertising, or any other contracts or agreements pertinent to 
 12.27  the operation and maintenance of the baseball park between the 
 12.28  owner and any other third party. 
 12.29     Subd. 17.  [CAPITAL REPAIRS AND IMPROVEMENTS.] The 
 12.30  commission must establish a baseball park capital repair and 
 12.31  improvement account and enter into an agreement with the owner 
 12.32  and the baseball team that provides that the owner and the 
 12.33  baseball team must pay at least $700,000 a year into the account 
 12.34  to be used by the commission to make any capital repairs, 
 12.35  improvements, enhancements, and betterments necessary to 
 12.36  maintain the baseball park.  The commission is not obligated to 
 13.1   spend money for these purposes in excess of the balance in the 
 13.2   capital repair and improvement account. 
 13.3      Subd. 18.  [UNIVERSITY OF MINNESOTA.] The commission must 
 13.4   consult with and consider the needs of the University of 
 13.5   Minnesota for baseball facilities for the next 20 years. 
 13.6      Subd. 19.  [REVENUES TO BE SUFFICIENT.] The anticipated 
 13.7   baseball park revenue must be sufficient to pay when due all 
 13.8   debt service on the revenue bonds and all administrative 
 13.9   expenses of the commission.  The anticipated revenue to the 
 13.10  baseball team must be sufficient to pay all operating and 
 13.11  maintenance expenses of the baseball park. 
 13.12     Subd. 20.  [LEAGUE, MAJOR LEAGUE BASEBALL GUARANTY.] The 
 13.13  commission must execute an agreement with the major league of 
 13.14  which the baseball team is a member and with major league 
 13.15  baseball that guarantees the continuance of the franchise in the 
 13.16  metropolitan area for the period of the agreement referred to in 
 13.17  subdivision 2. 
 13.18     Sec. 17.  [INTERSTATE COMPETITION.] 
 13.19     The commission may cooperate and contract with other 
 13.20  political entities in the United States, to petition or form an 
 13.21  entity to petition the United States Congress to enact 
 13.22  legislation to prevent injurious or uneconomic practices of 
 13.23  governmental entities in seeking sports, exposition, and 
 13.24  entertainment franchises and facilities.  The attorney general 
 13.25  may participate in appropriate litigation to prevent the 
 13.26  injurious or uneconomic practices. 
 13.27     Sec. 18.  [473.5993] [DEBT OBLIGATIONS FOR BASEBALL PARK.] 
 13.28     Subdivision 1.  [PURPOSES.] The commission may by 
 13.29  resolution authorize the sale and issuance of its revenue bonds 
 13.30  for the following purposes after complying with or determining 
 13.31  that section 473.5992, paragraph (a), has been or will be 
 13.32  complied with in material respects: 
 13.33     (1) to acquire and better facilities for a baseball park, 
 13.34  including, but not limited to, site assembly, preparation, and 
 13.35  construction; 
 13.36     (2) to reimburse the commission for its costs in complying 
 14.1   with and making the determinations required by section 473.5992, 
 14.2   whenever incurred; 
 14.3      (3) to pay issuance costs and costs of bond insurance or 
 14.4   other credit enhancement for the bonds and to establish 
 14.5   necessary reserves for operating and debt service costs; 
 14.6      (4) to refund bonds issued under this section; and 
 14.7      (5) to fund judgments entered by any court against the 
 14.8   commission in matters relating to the commission's functions 
 14.9   related to the baseball park. 
 14.10     Subd. 2.  [AMOUNT.] The principal amount of the bonds 
 14.11  issued under subdivision 1, clause (1), exclusive of any 
 14.12  original issue discount, must not exceed $250,000,000.  That 
 14.13  amount shall be reduced by the cost of constructing a 
 14.14  retractable roof if the owner does not pay for the cost of 
 14.15  constructing a roof.  
 14.16     Subd. 3.  [TAXABILITY.] The bonds may be issued as 
 14.17  tax-exempt revenue bonds or as taxable revenue bonds in the 
 14.18  proportions that the commission may determine. 
 14.19     Subd. 4.  [PROCEDURE.] The bonds shall be sold, issued, and 
 14.20  secured in the manner provided in chapter 475 for bonds payable 
 14.21  solely from revenues and the commission has the same powers and 
 14.22  duties as a municipality and its governing body in issuing bonds 
 14.23  under that chapter.  The bonds may be sold at any price and at 
 14.24  public or private sale as determined by the commission.  An 
 14.25  election is not required.  
 14.26     Subd. 5.  [NOT A GENERAL OR MORAL OBLIGATION.] The bonds 
 14.27  are payable solely from baseball park revenues.  The bonds are 
 14.28  not a general or moral obligation or debt of the commission, any 
 14.29  other political subdivision of the state, or the state, and must 
 14.30  not be included in the net debt of any city, county, or other 
 14.31  subdivision of the state for the purpose of any net debt 
 14.32  limitation.  The state does not assume any obligation or 
 14.33  liability for bonds sold or issued under this section.  
 14.34     Subd. 6.  [BROKERAGE FIRM AGREEMENT.] Before issuing debt 
 14.35  under this section, the commission must enter into an agreement 
 14.36  with the brokerage firm to be used in connection with the sale 
 15.1   and issuance of the bonds or revenue anticipation certificates 
 15.2   under this section, guaranteeing that fees and charges payable 
 15.3   to the brokerage firm under the agreement, including any 
 15.4   underwriting discounts, do not exceed fees and charges 
 15.5   customarily payable in connection with the sale and issuance of 
 15.6   bonds or revenue anticipation certificates. 
 15.7      Subd. 7.  [SECURITY.] Baseball park revenues must be and 
 15.8   remain pledged and appropriated, for the benefit of and 
 15.9   enforceable by the bondholders or their trustee, for the payment 
 15.10  of all necessary and reasonable expenses of the operation, 
 15.11  administration, maintenance, and debt service of the baseball 
 15.12  park until all bonds and certificates issued under this section 
 15.13  are fully paid or discharged in accordance with law.  Bonds 
 15.14  issued under this section may be secured by a bond resolution, 
 15.15  or by a trust indenture entered into by the commission with a 
 15.16  corporate trustee within or outside the state, which must define 
 15.17  the baseball park revenues pledged for the payment and security 
 15.18  of the bonds.  The pledge is a valid charge on the baseball park 
 15.19  revenues from the date when bonds are first issued or secured 
 15.20  under the resolution or indenture and secure the payment of 
 15.21  principal and interest and redemption premiums when due and the 
 15.22  maintenance at all times of a reserve securing the payments.  No 
 15.23  mortgage of or security interest in any tangible real or 
 15.24  personal property is granted to the bondholders or the trustee, 
 15.25  but they have a valid security interest in all baseball park 
 15.26  revenues of the commission as against the claims of all other 
 15.27  persons in tort, contract, or otherwise, irrespective of whether 
 15.28  the parties have notice of the claims, and without possession or 
 15.29  filing as provided in the uniform commercial code or any other 
 15.30  law.  In the bond resolution or trust indenture the commission 
 15.31  may make any covenants that are determined by the commission to 
 15.32  be usual and reasonably necessary for the protection of the 
 15.33  bondholders.  No pledge, mortgage, covenant, or agreement 
 15.34  securing bonds may be impaired, revoked, or amended by law or by 
 15.35  action of the commission except in accordance with the terms of 
 15.36  the resolution or indenture under which the bonds are issued, 
 16.1   until the obligations of the commission under the resolution or 
 16.2   indenture are fully discharged. 
 16.3      Subd. 8.  [REVENUE ANTICIPATION CERTIFICATES.] In any year, 
 16.4   upon final adoption by the commission of an annual budget of the 
 16.5   commission, including the baseball park revenues, and in 
 16.6   anticipation of the baseball park revenues, but subject to any 
 16.7   limitation or prohibition in a bond resolution or indenture, the 
 16.8   commission may authorize the issuance, negotiation, and sale, in 
 16.9   the form and manner and upon the terms it may determine, of 
 16.10  revenue anticipation certificates.  The principal amount of the 
 16.11  certificates outstanding may at no time exceed 25 percent of the 
 16.12  total amount of the revenues anticipated.  The certificates must 
 16.13  mature not later than three months after the close of the budget 
 16.14  year.  So much of the anticipated baseball park revenues as may 
 16.15  be needed for the payment of the certificates and interest 
 16.16  thereon shall be paid into a special debt service fund 
 16.17  established for the certificates in the commission's financial 
 16.18  records.  If for any reason the anticipated revenues are 
 16.19  insufficient, the certificates and interest must be paid from 
 16.20  the first revenues received, subject to any limitation or 
 16.21  prohibition in a bond resolution or indenture.  The proceeds of 
 16.22  the certificates may be used for any purpose for which the 
 16.23  anticipated revenues may be used or for any purpose for which 
 16.24  bond proceeds under subdivision 1 may be used. 
 16.25     Subd. 9.  [VALIDITY OF DEBT ISSUED.] The validity of any 
 16.26  bonds issued under this section and the obligations of the 
 16.27  commission related to them must not be conditioned upon or 
 16.28  impaired by the commission's determinations made under section 
 16.29  473.5992.  For the purposes of issuing bonds, the determinations 
 16.30  made by the commission are conclusive, and the commission is 
 16.31  obligated for the security and payment of the bonds, but only 
 16.32  from the sources pledged thereto, irrespective of determinations 
 16.33  that may be erroneous, inaccurate, or otherwise mistaken. 
 16.34     Sec. 19.  [473.5994] [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   473.5994. 
 17.5      Sec. 20.  [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 473.5994." 
 17.9      Sec. 21.  [APPLICATION.] 
 17.10     This article applies in the counties of Anoka, Carver, 
 17.11  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 17.12     Sec. 22.  [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.  Minnesota Statutes 1996, section 297A.135, is 
 17.17  amended by adding a subdivision to read: 
 17.18     Subd. 1a.  [METROPOLITAN AREA SURTAX.] In addition to the 
 17.19  tax imposed under subdivision 1, a surtax of $1 a day is imposed 
 17.20  on each rental or lease transaction subject to the tax under 
 17.21  subdivision 1 that occurs within the metropolitan area as 
 17.22  defined in section 473.121, subdivision 2. 
 17.23     Sec. 2.  Minnesota Statutes 1996, section 297A.135, 
 17.24  subdivision 2, is amended to read: 
 17.25     Subd. 2.  [SALES AND USE TAX.] The tax taxes imposed in 
 17.26  subdivision 1 is under subdivisions 1 and 1a are not included in 
 17.27  the sales price for purposes of determining the sales and use 
 17.28  tax imposed in this chapter or any sales and use tax imposed on 
 17.29  the transaction under a special law. 
 17.30     Sec. 3.  Minnesota Statutes 1996, section 297A.135, 
 17.31  subdivision 3, is amended to read: 
 17.32     Subd. 3.  [ADMINISTRATION.] The tax taxes imposed in 
 17.33  subdivision 1 under subdivisions 1 and 1a must be reported and 
 17.34  paid to the commissioner of revenue with the taxes imposed in 
 17.35  this chapter.  It is They are subject to the same interest, 
 17.36  penalty, and other provisions provided for sales and use taxes 
 18.1   under chapter 289A and this chapter.  The commissioner has the 
 18.2   same powers to assess and collect the tax taxes that are given 
 18.3   the commissioner in chapters 270 and 289A and this chapter to 
 18.4   assess and collect sales and use tax.  All revenues, including 
 18.5   interest and penalties, derived from the tax must be deposited 
 18.6   in the state treasury.  The proceeds of the tax imposed by 
 18.7   subdivision 1, and an amount that equals the direct department 
 18.8   costs necessary to administer, audit, and collect the surtax 
 18.9   imposed by subdivision 1a, must be credited to the general 
 18.10  fund.  The balance of the proceeds of the surtax imposed by 
 18.11  subdivision 1a must be credited to the baseball park account in 
 18.12  the special revenue fund. 
 18.13     Sec. 4.  Minnesota Statutes 1996, section 297A.135, 
 18.14  subdivision 4, is amended to read: 
 18.15     Subd. 4.  [EXEMPTION.] The tax taxes imposed by this 
 18.16  section does do not apply to a lease or rental if the vehicle is 
 18.17  to be used by the lessee to provide a licensed taxi service. 
 18.18     Sec. 5.  Minnesota Statutes 1996, section 473.595, 
 18.19  subdivision 1, is amended to read: 
 18.20     Subdivision 1.  [METRODOME ADMISSION TAX.] The commission 
 18.21  shall by resolution impose and maintain a ten percent admission 
 18.22  tax upon the granting, issuance, sale, or distribution, by any 
 18.23  private or public person, association, or corporation, of the 
 18.24  privilege of admission to activities at the metrodome.  No other 
 18.25  tax, surcharge, or governmental imposition, except the taxes 
 18.26  imposed by chapter 297A, may be levied by any other unit of 
 18.27  government upon any such sale or distribution.  The admission 
 18.28  tax shall be stated and charged separately from the sales price 
 18.29  so far as practicable and shall be collected by the grantor, 
 18.30  seller, or distributor from the person admitted and shall be a 
 18.31  debt from that person to the grantor, issuer, seller, or 
 18.32  distributor, and the tax required to be collected shall 
 18.33  constitute a debt owed by the grantor, issuer, seller, or 
 18.34  distributor to the commission, which shall be recoverable at law 
 18.35  in the same manner as other debts.  Every person granting, 
 18.36  issuing, selling, or distributing tickets for such admissions 
 19.1   may be required, as provided in resolutions of the commission, 
 19.2   to secure a permit, to file returns, to deposit security for the 
 19.3   payment of the tax, and to pay such penalties for nonpayment and 
 19.4   interest on late payments, as shall be deemed necessary or 
 19.5   expedient to assure the prompt and uniform collection of the tax.
 19.6      Notwithstanding any other provisions of this subdivision, 
 19.7   the imposition of an admission tax upon a national superbowl 
 19.8   football game conducted at the metrodome is discretionary with 
 19.9   the commission.  
 19.10     Notwithstanding section 473.581, subdivision 4, when the 
 19.11  debt obligations issued under section 473.581, to which revenues 
 19.12  derived from the tax imposed under this subdivision have been 
 19.13  pledged are fully paid or discharged, the revenue from the tax 
 19.14  attributable to admissions to major league professional baseball 
 19.15  games shall be deposited in the state treasury and credited to 
 19.16  the baseball park account in the special revenue fund. 
 19.17     Sec. 6.  Minnesota Statutes 1996, section 473F.08, is 
 19.18  amended by adding a subdivision to read: 
 19.19     Subd. 3c.  [BASEBALL PARK TAX LEVY.] By December 1, 1997, 
 19.20  and by August 1 of each year thereafter, the executive director 
 19.21  of the metropolitan sports facilities commission shall certify 
 19.22  to the Hennepin county auditor a levy in the amount of 
 19.23  $7,300,000, plus any additional amount that may be necessary, 
 19.24  together with other revenue available to the commission, to pay 
 19.25  when due and in accordance with the bond resolution or trust 
 19.26  indenture all debt service on bonds and other obligations issued 
 19.27  under section 473.5993 for the baseball park.  The Hennepin 
 19.28  county auditor shall add this amount to Hennepin county's 
 19.29  areawide levy when certifying the levy to the administrative 
 19.30  auditor under subdivision 5. 
 19.31     Sec. 7.  Minnesota Statutes 1996, section 473F.08, 
 19.32  subdivision 5, is amended to read: 
 19.33     Subd. 5.  [AREAWIDE TAX RATE.] On or before August 25 of 
 19.34  each year, the county auditor shall certify to the 
 19.35  administrative auditor that portion of the levy of each 
 19.36  governmental unit determined under subdivisions 3, clause (a), 
 20.1   3a, and 3b, and 3c.  The administrative auditor shall then 
 20.2   determine the areawide tax rate sufficient to yield an amount 
 20.3   equal to the sum of such levies from the areawide net tax 
 20.4   capacity.  On or before September 1 of each year, the 
 20.5   administrative auditor shall certify the areawide tax rate to 
 20.6   each of the county auditors. 
 20.7      Sec. 8.  [473I.01] [DEFINITIONS.] 
 20.8      Subdivision 1.  [APPLICATION.] The definitions in sections 
 20.9   473.121, 473.551, and this section apply to this chapter. 
 20.10     Subd. 2.  [BASEBALL PARK.] "Baseball park" means the 
 20.11  baseball park described in section 473.5991. 
 20.12     Sec. 9.  [473I.02] [BASEBALL PARK ACCOUNT.] 
 20.13     The baseball park account is established in the special 
 20.14  revenue fund in the state treasury.  All money credited to the 
 20.15  baseball park account is appropriated to the commissioner of 
 20.16  revenue for payment to the commission for purposes of the 
 20.17  baseball park.  The commission shall use all receipts from the 
 20.18  baseball park account to administer, operate, and maintain the 
 20.19  baseball park and to pay debt service on bonds or other 
 20.20  obligations sold for purposes of the baseball park.  When the 
 20.21  bonds and other obligations issued under section 473.5993 have 
 20.22  been paid off or defeased, the balance on hand and any future 
 20.23  receipts to the baseball park account are appropriated to the 
 20.24  commissioner of revenue for transfer to the general fund to 
 20.25  reimburse the general fund for proceeds of the state lottery 
 20.26  that were used to construct the baseball park.  The 
 20.27  reimbursement must include interest at a rate to be determined 
 20.28  by the commissioner of finance that is comparable to the rate 
 20.29  earned by the state on invested treasurer's cash.  After the 
 20.30  general fund has been reimbursed, sections 6, 10, 20, and 22 
 20.31  expire and the amounts received from the taxes imposed under 
 20.32  sections 1, 11 to 19, and 21 are appropriated to the 
 20.33  commissioner of revenue for payment to the metropolitan 
 20.34  council.  The metropolitan council shall credit the amounts 
 20.35  received to the debt service fund or reserve or special funds 
 20.36  established under article 4, section 7.  When the bonds and 
 21.1   other obligations issued under article 4, section 7, have been 
 21.2   paid off or defeased, sections 1, 11 to 19, and 21 expire. 
 21.3      Sec. 10.  [473I.03] [ADMISSION TAX; TICKET SURCHARGE.] 
 21.4      The commission may by resolution impose and maintain an 
 21.5   admission tax or ticket surcharge, or both, upon the granting, 
 21.6   issuance, sale, or distribution, by any private or public 
 21.7   person, association, or corporation, of the privilege of 
 21.8   admission to activities at the baseball park.  No other tax, 
 21.9   surcharge, or governmental imposition, except the taxes imposed 
 21.10  by chapter 297A, may be levied by any other unit of government 
 21.11  upon that sale or distribution.  The tax or surcharge imposed by 
 21.12  this section is included in the sales price for purposes of 
 21.13  determining the sales and use tax imposed by chapter 297A.  If 
 21.14  the commission imposes a ticket surcharge, it must be at least 
 21.15  $1 per ticket for the seats affected.  The commission and the 
 21.16  owner may by mutual agreement exempt sections of the baseball 
 21.17  park from the ticket surcharge.  The admission tax or ticket 
 21.18  surcharge must be stated and charged separately from the sales 
 21.19  price so far as practicable.  The tax or surcharge imposed under 
 21.20  this section must be reported and paid to the commissioner of 
 21.21  revenue with the taxes imposed by chapter 297A and in accordance 
 21.22  with an agreement between the commission and the commissioner of 
 21.23  revenue.  It is subject to the same interest, penalty, and other 
 21.24  provisions provided for sales and use taxes under chapters 289A 
 21.25  and 297A.  The commissioner has the same powers to assess and 
 21.26  collect the tax that are given the commissioner in chapters 270, 
 21.27  289A, and 297A to assess and collect sales and use tax.  All 
 21.28  revenues, including interest and penalties, derived from the 
 21.29  admissions tax or ticket surcharge must be deposited in the 
 21.30  state treasury.  An amount that equals the direct department 
 21.31  costs necessary to administer, audit, and collect this tax must 
 21.32  be credited to the general fund.  The balance must be credited 
 21.33  to the baseball park account in the special revenue fund. 
 21.34     Sec. 11.  [473I.04] [SPORTS FACILITIES SALES TAX.] 
 21.35     Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
 21.36  chapter 297A and in this subdivision apply to this section. 
 22.1      (b) "Sports facilities sale" means a taxable sale under 
 22.2   chapter 297A, or a lease of a private suite or club seat, that 
 22.3   occurs on the premises of the metrodome or baseball park, or the 
 22.4   St. Paul hockey arena described in article 4, section 3.  This 
 22.5   does not include an admission subject to tax under section 10 or 
 22.6   a purchase by the owner, operator, or a tenant of the metrodome 
 22.7   or baseball park. 
 22.8      Subd. 2.  [TAX IMPOSED.] The commission may by resolution 
 22.9   impose a tax on sports facilities sales at the rate of nine 
 22.10  percent.  This tax is in lieu of all other taxes levied by any 
 22.11  unit of government on these sales, including the tax under 
 22.12  section 297A.02, subdivision 1. 
 22.13     Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 22.14  section must be collected in the manner provided for taxes 
 22.15  imposed under chapter 297A and in accordance with an agreement 
 22.16  between the commission and the commissioner of revenue.  All 
 22.17  revenues, including interest and penalties, derived from the tax 
 22.18  imposed on sports facilities sales must be deposited in the 
 22.19  state treasury and credited to the baseball park account in the 
 22.20  special revenue fund. 
 22.21     Sec. 12.  [473I.05] [SPORTS MEMORABILIA TAX.] 
 22.22     The commission by resolution may impose a tax on each sale 
 22.23  of sports memorabilia at wholesale to a retailer doing business 
 22.24  in the metropolitan area.  The rate of the tax is ten percent of 
 22.25  the gross earnings from the sale. 
 22.26     Sec. 13.  [473I.06] [DEFINITIONS.] 
 22.27     Subdivision 1.  [TERMS.] For purposes of sections 473I.05 
 22.28  to 473I.12, the following terms have the meanings given them. 
 22.29     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
 22.30  commissioner of revenue. 
 22.31     Subd. 3.  [RETAILER.] "Retailer" has the meaning given in 
 22.32  section 297A.01, subdivision 10. 
 22.33     Subd. 4.  [SALE.] "Sale" means a transfer of title or 
 22.34  possession of tangible personal property, whether absolutely or 
 22.35  conditionally. 
 22.36     Subd. 5.  [SPORTS MEMORABILIA OR SPORTS LICENSED GOODS.] 
 23.1   (a) "Sports memorabilia" or "sports licensed goods" means items 
 23.2   available for sale to the public that relate to professional 
 23.3   sports, such as: 
 23.4      (1) one-of-a-kind items related to professional sports 
 23.5   figures, teams, or events; 
 23.6      (2) professional sports trading cards; 
 23.7      (3) professional sports photographs; 
 23.8      (4) league and individual athlete licensed items; 
 23.9      (5) professional sporting event licensed items; and 
 23.10     (6) similar items. 
 23.11     (b) It does not include items licensed by: 
 23.12     (1) a sports regulating authority for the purpose of 
 23.13  proving the item meets the standards of the sport; 
 23.14     (2) an elementary, high school, college, or university or 
 23.15  an association, league, or other organization operated by, 
 23.16  organized by, comprised of those entities, or regulating 
 23.17  collegiate or high school baseball. 
 23.18     (c) It does not include any item of clothing. 
 23.19     Subd. 6.  [WHOLESALE OR SALE AT WHOLESALE.] "Wholesale" or 
 23.20  "sale at wholesale" means a sale to a retailer for the purpose 
 23.21  of reselling the property to a third party. 
 23.22     Subd. 7.  [WHOLESALER.] "Wholesaler" means any person 
 23.23  making wholesale sales. 
 23.24     Sec. 14.  [473I.07] [COLLECTION.] 
 23.25     Subdivision 1.  [PAYMENT AND COLLECTION OBLIGATION.] The 
 23.26  retailer must pay the tax to the wholesaler and each wholesaler 
 23.27  must collect from the retailer the full amount of the tax 
 23.28  payable for each taxable sale, unless the state or federal 
 23.29  constitution prohibits the wholesaler from collecting the tax 
 23.30  from the retailer. 
 23.31     Subd. 2.  [TAX SEPARATELY STATED.] The tax must be 
 23.32  separately stated from the selling price in any sales invoice or 
 23.33  any instrument of sale.  Failure to separately state the tax 
 23.34  creates a conclusive presumption that the tax has not been 
 23.35  collected. 
 23.36     Subd. 3.  [TAX IS IN ADDITION TO OTHERS.] The tax under 
 24.1   sections 473I.05 to 473I.12 is in addition to any other tax that 
 24.2   applies under the laws of this state. 
 24.3      Sec. 15.  [473I.08] [COMPLEMENTARY USE TAX.] 
 24.4      If the tax is not paid under section 473I.05, a tax is 
 24.5   imposed on possession for sale or use of sports memorabilia or 
 24.6   sports licensed goods in the metropolitan area.  The rate of tax 
 24.7   equals the rate under section 473I.05 and must be paid by the 
 24.8   possessor of the items. 
 24.9      Sec. 16.  [473I.09] [EXEMPTIONS.] 
 24.10     The tax imposed by sections 473I.05 to 473I.12 does not 
 24.11  apply to: 
 24.12     (1) any successive sale if the tax was previously imposed 
 24.13  and collected on the same sports memorabilia or sports licensed 
 24.14  goods; and 
 24.15     (2) any sale of sports memorabilia or sports licensed goods 
 24.16  that is transferred to a point outside of the metropolitan area 
 24.17  for sale or use outside of the metropolitan area.  
 24.18     Sec. 17.  [473I.10] [ADMINISTRATIVE PROVISIONS.] 
 24.19     Subdivision 1.  [APPLICATION OF OTHER CHAPTERS.] To the 
 24.20  extent not inconsistent with sections 473I.05 to 473I.12, the 
 24.21  enforcement, interest, and penalty provisions under chapter 294, 
 24.22  appeal provisions in sections 289A.43 and 289A.65, criminal 
 24.23  penalties in section 289A.63, refund provisions in section 
 24.24  289A.50, and collection and rulemaking provisions under chapter 
 24.25  270, apply to the tax under sections 473I.05 to 473I.12. 
 24.26     Subd. 2.  [QUARTERLY ESTIMATED PAYMENTS.] (a) Each 
 24.27  wholesaler must make estimated payments of the tax for the 
 24.28  calendar year to the commissioner in accordance with an 
 24.29  agreement between the commission and the commissioner in 
 24.30  quarterly installments by April 15, July 15, October 15, and 
 24.31  January 15 of the following calendar year. 
 24.32     (b) Estimated tax payments are not required if the tax for 
 24.33  the calendar year is less than $500. 
 24.34     (c) Underpayment of estimated installments bear interest at 
 24.35  the rate specified in section 270.75, from the due date of the 
 24.36  payment until paid or until the due date of the annual return at 
 25.1   the rate specified in section 270.75.  An underpayment of an 
 25.2   estimated installment is the difference between the amount paid 
 25.3   and the lesser of (1) 90 percent of the one-quarter of the tax 
 25.4   for the calendar year, or (2) the tax for the actual gross 
 25.5   revenues received during the quarter. 
 25.6      Subd. 3.  [ELECTRONIC FUNDS-TRANSFER PAYMENTS.] A taxpayer 
 25.7   with an aggregate tax liability of $120,000 or more during a 
 25.8   fiscal year ending June 30, must remit all liabilities by funds 
 25.9   transfer as defined in section 336.4A-104, paragraph (a), in the 
 25.10  next calendar year.  The funds-transfer payment date, as defined 
 25.11  in section 336.4A-401, is on or before the date the tax is due.  
 25.12  If the date the tax is due is not a funds-transfer business day, 
 25.13  as defined in section 336.4A-105, paragraph (a), clause (4), the 
 25.14  payment date is on or before the first funds-transfer business 
 25.15  day after the date the tax is due. 
 25.16     Subd. 4.  [ANNUAL RETURN.] The taxpayer must file an annual 
 25.17  return reconciling the estimated payments by March 15 of the 
 25.18  following calendar year. 
 25.19     Subd. 5.  [FORM OF RETURNS.] The estimated payments and 
 25.20  annual return must contain the information and be in the form 
 25.21  prescribed by the commissioner. 
 25.22     Sec. 18.  [473I.11] [DISCLOSURE ON PRODUCTS.] 
 25.23     A wholesaler subject to tax under section 473I.05 must 
 25.24  apply a tag, stamp, mark, or other indicia on sports memorabilia 
 25.25  subject to the tax that states "This product was subject to the 
 25.26  sports memorabilia tax" or another statement to similar effect. 
 25.27     Sec. 19.  [473I.12] [DISPOSITION OF REVENUES.] 
 25.28     The commissioner shall deposit all revenues, including 
 25.29  interest and penalties, derived from the tax imposed on sports 
 25.30  memorabilia and sports licensed goods under section 473I.05 in 
 25.31  the state treasury and credit them to the baseball park account 
 25.32  in the special revenue fund.  
 25.33     Sec. 20.  [473I.13] [PARKING TAX.] 
 25.34     Subdivision 1.  [TAX IMPOSED.] The commission may by 
 25.35  resolution impose a parking tax of not less than $1 per vehicle 
 25.36  per event at the baseball park.  The commission shall consult 
 26.1   with the city about the definition of event parking and the rate 
 26.2   of the tax before imposing or adjusting the tax.  
 26.3      Subd. 2.  [AREA OF APPLICATION.] The tax applies to parking 
 26.4   in the baseball park district designated under section 473I.15 
 26.5   and in any additional area providing event parking, as mutually 
 26.6   agreed by the city and the commission, except for parking at a 
 26.7   parking meter. 
 26.8      Subd. 3.  [COLLECTION.] The tax imposed under this section 
 26.9   must be reported and paid to the commissioner of revenue with 
 26.10  the taxes imposed in chapter 297A and in accordance with an 
 26.11  agreement between the commission and the commissioner of 
 26.12  revenue.  It is subject to the same interest, penalty, and other 
 26.13  provisions provided for sales and use taxes under chapters 289A 
 26.14  and 297A.  The commissioner has the same powers to assess and 
 26.15  collect the tax that are given the commissioner in chapters 270, 
 26.16  289A, and 297A to assess and collect sales and use tax. 
 26.17     Subd. 4.  [DISPOSITION OF PROCEEDS.] All revenues, 
 26.18  including interest and penalties, derived from the tax must be 
 26.19  deposited in the state treasury.  An amount that equals the 
 26.20  direct department costs necessary to administer, audit, and 
 26.21  collect this tax must be credited to the general fund.  The 
 26.22  balance must be credited to the baseball park account in the 
 26.23  special revenue fund. 
 26.24     Sec. 21.  [473I.14] [PROFESSIONAL ATHLETE INCOME SURTAX.] 
 26.25     Subdivision 1.  [TAX IMPOSED.] The commission may by 
 26.26  resolution impose a tax on the taxable baseball park income of a 
 26.27  qualified employee of a major league professional baseball team 
 26.28  that uses the baseball park or the metrodome defined in section 
 26.29  473.551, subdivision 9, or the St. Paul hockey arena described 
 26.30  in article 4, section 3.  The tax equals four percent of taxable 
 26.31  baseball park income for the taxable year. 
 26.32     Subd. 2.  [DEFINITIONS.] (a) The definitions in chapter 290 
 26.33  and in this subdivision apply to this section. 
 26.34     (b) "Taxable baseball park income" means wages, salaries, 
 26.35  or other compensation derived from the performance of personal 
 26.36  services in the baseball park or the metrodome.  For both 
 27.1   residents and nonresidents, the amount attributable to 
 27.2   performance of personal services in the baseball park is 
 27.3   determined by first subtracting $100,000 from total compensation 
 27.4   for the performance of personal service and then applying the 
 27.5   allocation rules under section 290.17, subdivision 2, paragraph 
 27.6   (a), clauses (1) and (2).  The amount may not be less than zero. 
 27.7      (c) A "qualified employee" means an employee who derives 
 27.8   wages, salaries, or other compensation of at least $100,000 for 
 27.9   the performance of personal services from a sports organization 
 27.10  for the taxable year. 
 27.11     (d) A "sports organization" means any organization that 
 27.12  operates a major league professional sports franchise.  A sports 
 27.13  organization includes a visiting team regardless of whether it 
 27.14  has a direct agreement with the owner or operator of the 
 27.15  baseball park, the metrodome, or the St. Paul hockey arena. 
 27.16     Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 27.17  section must be collected in the manner provided for individual 
 27.18  income taxes imposed under chapter 290 and in accordance with an 
 27.19  agreement between the commission and the commissioner of 
 27.20  revenue.  The revenue from the tax must be deposited in the 
 27.21  state treasury and credited to the baseball park account in the 
 27.22  special revenue fund. 
 27.23     Sec. 22.  [473I.15] [LIQUOR, ENTERTAINMENT TAXES, FEES.] 
 27.24     Subdivision 1.  [TAX IMPOSED.] Notwithstanding section 
 27.25  477A.016 or any other law, the commission may by resolution 
 27.26  impose a sales tax of not more than 1.5 percent on the gross 
 27.27  receipts from retail sales of the following: 
 27.28     (1) on-sales of intoxicating liquor and fermented malt 
 27.29  beverages when sold at a licensed on-sale liquor establishment 
 27.30  or municipal liquor store; or 
 27.31     (2) the furnishing for consideration of entertainment; or 
 27.32     (3) both.  
 27.33     A tax under this section may be imposed only within the 
 27.34  downtown taxing area defined in Laws 1986, chapter 396, section 
 27.35  1, as amended.  The commission shall consult with the city 
 27.36  before imposing or adjusting the tax.  The tax imposed under 
 28.1   this section is included in the sales price for purposes of 
 28.2   determining the sales and use tax imposed by chapter 297A. 
 28.3      Subd. 2.  [COLLECTION.] The tax imposed under this section 
 28.4   must be reported and paid to the commissioner of revenue with 
 28.5   the taxes imposed in chapter 297A and in accordance with an 
 28.6   agreement between the commission and the commissioner of 
 28.7   revenue.  It is subject to the same interest, penalty, and other 
 28.8   provisions provided for sales and use taxes under chapters 289A 
 28.9   and 297A.  The commissioner has the same powers to assess and 
 28.10  collect the tax that are given the commissioner in chapters 270, 
 28.11  289A, and 297A to assess and collect sales and use tax. 
 28.12     Subd. 3.  [DISPOSITION OF PROCEEDS.] All revenues, 
 28.13  including interest and penalties, derived from the tax must be 
 28.14  deposited in the state treasury.  An amount that equals the 
 28.15  direct department costs necessary to administer, audit, and 
 28.16  collect this tax must be credited to the general fund.  The 
 28.17  balance must be credited to the baseball park account in the 
 28.18  special revenue fund. 
 28.19     Sec. 23.  [APPLICATION.] 
 28.20     This article applies in the counties of Anoka, Carver, 
 28.21  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 28.22     Sec. 24.  [EFFECTIVE DATE.] 
 28.23     Sections 1 to 4 are effective for rental and lease 
 28.24  transactions occurring after March 31, 1998. 
 28.25     Section 6 is effective for taxes levied in 1997, payable in 
 28.26  1998, and thereafter, subject to the expiration provided in 
 28.27  section 9.  The provisions of Minnesota Statutes, section 
 28.28  275.065, relating to proposed property tax notices does not 
 28.29  apply to the levy for taxes payable in 1998. 
 28.30     Sections 5, 8, 9, 23, and 24 are effective the day 
 28.31  following final enactment. 
 28.32     Sections 10 and 20 are effective for events occurring and 
 28.33  for admissions on or after January 1, 2001. 
 28.34     Sections 11 to 19 are effective for sales made after June 
 28.35  30, 1998. 
 28.36     Section 21 is effective for taxable years beginning after 
 29.1   December 31, 1997. 
 29.2                              ARTICLE 3 
 29.3                           LOTTERY REVENUES
 29.4      Section 1.  Minnesota Statutes 1996, section 349A.10, 
 29.5   subdivision 5, is amended to read: 
 29.6      Subd. 5.  [DEPOSIT OF NET PROCEEDS.] Within 30 days after 
 29.7   the end of each month, the director shall deposit in the state 
 29.8   treasury the net proceeds of the lottery, which is the balance 
 29.9   in the lottery fund after transfers to the lottery prize fund 
 29.10  and credits to the lottery operations account.  Of the net 
 29.11  proceeds, 40 percent must be credited to the Minnesota 
 29.12  environment and natural resources trust fund, and the remainder 
 29.13  must be credited to the special revenue fund created in section 
 29.14  16A.67, subdivision 3.  Money credited to the special revenue 
 29.15  fund must be transferred to the debt service fund established in 
 29.16  section 16A.67, subdivision 4, at the times and in the amounts 
 29.17  determined by the commissioner of finance to be necessary to 
 29.18  provide for the payment and security of bonds issued pursuant to 
 29.19  section 16A.67.  On or before the tenth day of each month, any 
 29.20  money in the special revenue fund not required to be transferred 
 29.21  to the debt service fund or to the baseball park account under 
 29.22  subdivision 5a must be transferred to the general fund. 
 29.23     Sec. 2.  Minnesota Statutes 1996, section 349A.10, is 
 29.24  amended by adding a subdivision to read: 
 29.25     Subd. 5a.  [BASEBALL PARK ACCOUNT.] After any necessary 
 29.26  amounts have been transferred to the debt service account 
 29.27  created in section 16A.67, subdivision 4, the commissioner of 
 29.28  finance shall transfer from the special revenue account created 
 29.29  in section 16A.67, subdivision 3, to the baseball park account 
 29.30  created in section 473I.02 the sum of $6,000,000 in each of the 
 29.31  months January to June. 
 29.32     Sec. 3.  Minnesota Statutes 1996, section 349A.10, is 
 29.33  amended by adding a subdivision to read: 
 29.34     Subd. 5b.  [SPECIAL LOTTERY GAMES.] (a) The lottery shall 
 29.35  conduct instant lottery games each year with a baseball theme. 
 29.36     (b) The net revenues from the games conducted under this 
 30.1   subdivision, after the deduction of the net revenue to be paid 
 30.2   to the Minnesota environment and natural resources trust fund, 
 30.3   must be credited to the baseball park account created in section 
 30.4   473I.02. 
 30.5      Sec. 4.  [EFFECTIVE DATE; EXPIRATION.] 
 30.6      This article is effective January 1, 1998.  Sections 2 and 
 30.7   3 expire July 1, 2001. 
 30.8                              ARTICLE 4 
 30.9                       METROPOLITAN FACILITIES 
 30.10     Section 1.  Minnesota Statutes 1996, section 297A.25, is 
 30.11  amended by adding a subdivision to read: 
 30.12     Subd. 73.  [SALES TAX EXEMPTION.] Purchases of materials, 
 30.13  supplies, or equipment used or consumed in the construction, 
 30.14  equipment, improvement, or expansion of the Minneapolis 
 30.15  convention center are exempt from the taxes imposed under 
 30.16  chapter 297A and from any sales and use tax imposed by a local 
 30.17  unit of government notwithstanding any ordinance or charter 
 30.18  provision.  This exemption applies regardless of whether the 
 30.19  materials, supplies, or equipment are purchased by the city or 
 30.20  by a construction manager or contractor. 
 30.21     Sec. 2.  [473J.01] [DEFINITIONS.] 
 30.22     The definitions in section 473.121 apply to this chapter. 
 30.23     Sec. 3.  [473J.02] [ST.PAUL HOCKEY ARENA.] 
 30.24     (a) The metropolitan council may make a grant of up to 
 30.25  $50,000,000 to the city of St. Paul to plan, design, clear a 
 30.26  site for, construct, and equip a new arena as part of the St. 
 30.27  Paul Civic Center complex.  The metropolitan council shall make 
 30.28  this grant only after the council determines that the National 
 30.29  Hockey League has awarded an expansion hockey franchise to one 
 30.30  or more owners who have made a legally binding commitment to 
 30.31  play National Hockey League games in the new arena. 
 30.32     (b) The commitment must be that the hockey team will lease 
 30.33  the new arena for the purpose of playing all of its National 
 30.34  Hockey League home games and will not relocate the team from the 
 30.35  arena during the lease term; provided, that the team will have 
 30.36  the right after the first ten years of the lease term to 
 31.1   terminate the lease by paying the city and the metropolitan 
 31.2   council an amount required to discharge the outstanding city and 
 31.3   metropolitan council bonds, including any related premium or 
 31.4   early retirement penalty associated with prepayment.  
 31.5      (c) The commitment must include an agreement whereby the 
 31.6   team will pay liquidated damages in the event of a breach of its 
 31.7   covenant to operate exclusively at the new arena during the 
 31.8   first ten years of the lease term or, after the first ten years 
 31.9   of the lease term, to pay the city and metropolitan council the 
 31.10  amount required to discharge the outstanding city and 
 31.11  metropolitan council bonds if it relocates the team.  The amount 
 31.12  of the liquidated damages must be the unpaid principal balance 
 31.13  of the outstanding city and metropolitan council bonds, 
 31.14  including any related premium or early retirement penalty 
 31.15  associated with prepayment, plus the amount of money expended by 
 31.16  the city and the St. Paul Civic Center authority for 
 31.17  construction costs. 
 31.18     (d) Disputes between the parties under the lease must be 
 31.19  venued exclusively in Ramsey county. 
 31.20     Sec. 4.  [473J.03] [ST. PAUL CIVIC CENTER BONDING.] 
 31.21     Subdivision 1.  [BONDS AUTHORIZED.] The city of St. Paul 
 31.22  may, by resolution of its city council, authorize, issue, and 
 31.23  sell special obligation bonds or general obligation bonds to 
 31.24  finance or refinance any expenditure for the acquisition, 
 31.25  construction, demolition, betterment, and equipping of a new 
 31.26  arena as part of the St. Paul Civic Center complex, including 
 31.27  related facilities, and related bond issuance costs, and the 
 31.28  fund of any capitalized interest and debt service reserve for 
 31.29  the bonds.  Except as otherwise provided in this section, the 
 31.30  bonds shall be authorized, issued, and sold in the manner, and 
 31.31  subject to the same conditions provided in, chapter 475.  The 
 31.32  bonds may not be authorized unless the design of the arena is 
 31.33  for a convertible-use facility that will accommodate various 
 31.34  entertainment venues. 
 31.35     Subd. 2.  [SECURITY.] Bonds authorized under subdivision 1 
 31.36  shall be payable from and secured by a pledge of one or more of 
 32.1   the following primary sources of payment, in whole or in part: 
 32.2      (1) revenues derived from the St. Paul Civic Center complex 
 32.3   and any related facilities; 
 32.4      (2) the 40 percent of revenue from the sales tax imposed 
 32.5   under Laws 1993, chapter 375, article 9, section 46, that has 
 32.6   been designated by resolution of the St. Paul city council for 
 32.7   the St. Paul Civic Center account, provided that the pledge of 
 32.8   this revenue shall not delay repayments to the cultural projects 
 32.9   account and the neighborhood investment account of amounts 
 32.10  advanced from those accounts to cover shortages for financing 
 32.11  the debt service for the revenue bonds issued for the St. Paul 
 32.12  Civic Center construction program as provided by resolution of 
 32.13  the St. Paul city council; 
 32.14     (3) revenue from any lodging tax imposed under Laws 1982, 
 32.15  chapter 523, article 25, section 1, and Laws 1986, chapter 462, 
 32.16  section 31; 
 32.17     (4) parking revenues from ramps or spaces owned by the St. 
 32.18  Paul Civic Center authority, the city, or its housing and 
 32.19  redevelopment authority; and 
 32.20     (5) any new revenue source made available by the 80th 
 32.21  legislature for the specific purpose of paying off these bonds. 
 32.22     Subd. 3.  [CITY MAY PLEDGE FULL FAITH AND CREDIT.] 
 32.23  Notwithstanding any law or charter provision to the contrary, in 
 32.24  addition to the primary sources of payment in subdivision 2, the 
 32.25  city of St. Paul may pledge to the payment of the bonds 
 32.26  authorized under subdivision 1 the city's full faith and credit, 
 32.27  or subject to any outstanding contractual obligations, any other 
 32.28  revenues, charges, assessments, or taxes which either the city 
 32.29  or the St. Paul Civic Center authority may be entitled to 
 32.30  receive.  
 32.31     Subd. 4.  [EXCEPTIONS.] (a) Notwithstanding chapter 475, or 
 32.32  any other law or charter provision to the contrary: 
 32.33     (1) the bonds authorized under subdivision 1 may be 
 32.34  authorized, issued, and sold without vote of the electorate and 
 32.35  shall not be included in the net debt or per capita tax 
 32.36  limitations of the city; and 
 33.1      (2) the estimated collection of revenues, charges, 
 33.2   assessments, or taxes pledged to the payment of general 
 33.3   obligation bonds under subdivision 2 or 3 may be deducted from 
 33.4   the general ad valorem taxes otherwise required before the 
 33.5   issuance of bonds under section 475.61, subdivision 1. 
 33.6      (b) If the bonds are special obligation bonds, the city may 
 33.7   exercise any of the powers granted an authority for issuing 
 33.8   revenue bonds under section 469.178, subdivision 4.  The St. 
 33.9   Paul Civic Center authority may make covenants that the 
 33.10  authority by resolution deems to be necessary and proper to 
 33.11  secure payments of the bonds. 
 33.12     Subd. 5.  [SALES TAX; AUTHORITY.] Notwithstanding any law 
 33.13  or charter provision to the contrary, the authority to impose a 
 33.14  sales tax under Laws 1993, chapter 375, article 9, section 46, 
 33.15  does not expire before the date on which any bonds issued under 
 33.16  this section are repaid in full. 
 33.17     Sec. 5.  [473J.04] [COMPETITIVE BIDDING.] 
 33.18     Contracts for the acquisition, construction, equipping, 
 33.19  remodeling, repair, or improvement of the St. Paul Civic Center 
 33.20  arena and any related facilities, may be entered into without 
 33.21  compliance with the provisions of section 471.345, subdivision 3.
 33.22     Sec. 6.  [473J.05] [MINNEAPOLIS CONVENTION CENTER.] 
 33.23     If it issues bonds under section 7, subdivision 1, clause 
 33.24  (2), the metropolitan council shall make a grant of $75,000,000 
 33.25  to the city of Minneapolis to begin improvements to expand the 
 33.26  Minneapolis convention center. 
 33.27     Sec. 7.  [473J.06] [DEBT OBLIGATIONS.] 
 33.28     Subdivision 1.  [PURPOSES.] The metropolitan council may by 
 33.29  resolution authorize the sale and issuance of its revenue bonds 
 33.30  for the following purposes: 
 33.31     (1) $50,000,000 in principal amount, exclusive of any 
 33.32  original issue discount, to make the grant for a hockey arena 
 33.33  authorized in section 3; 
 33.34     (2) $75,000,000 in principal amount, exclusive of any 
 33.35  original issue discount, to make the grant for a convention 
 33.36  center authorized in section 6; 
 34.1      (3) to pay issuance costs and costs of bond insurance or 
 34.2   other credit enhancement for the bonds and to establish 
 34.3   necessary reserves for debt service costs; 
 34.4      (4) to refund bonds issued under this section; and 
 34.5      (5) to fund judgments entered by any court against the 
 34.6   council in matters relating to the council's functions related 
 34.7   to the grants. 
 34.8      Subd. 2.  [TAXABILITY.] The bonds may be issued as 
 34.9   tax-exempt revenue bonds or as taxable revenue bonds in the 
 34.10  proportions that the council may determine. 
 34.11     Subd. 3.  [PROCEDURE.] The bonds shall be sold, issued, and 
 34.12  secured in the manner provided in chapter 475 for bonds payable 
 34.13  solely from revenues and the council has the same powers and 
 34.14  duties as a municipality and its governing body in issuing bonds 
 34.15  under that chapter.  The bonds may be sold at any price and at 
 34.16  public or private sale as determined by the council.  An 
 34.17  election is not required.  
 34.18     Subd. 4.  [NOT A GENERAL OR MORAL OBLIGATION.] The bonds 
 34.19  are payable solely from the lodging tax authorized by section 
 34.20  8.  The bonds are not a general or moral obligation or debt of 
 34.21  the commission, any other political subdivision of the state, or 
 34.22  the state, and must not be included in the net debt of any city, 
 34.23  county, or other subdivision of the state for the purpose of any 
 34.24  net debt limitation.  The state does not assume any obligation 
 34.25  or liability for bonds sold or issued under this section.  
 34.26     Subd. 5.  [BROKERAGE FIRM AGREEMENT.] Before issuing debt 
 34.27  under this section, the council must enter into an agreement 
 34.28  with the brokerage firm to be used in connection with the sale 
 34.29  and issuance of the bonds or revenue anticipation certificates 
 34.30  under this section, guaranteeing that fees and charges payable 
 34.31  to the brokerage firm under the agreement, including any 
 34.32  underwriting discounts, do not exceed fees and charges 
 34.33  customarily payable in connection with the sale and issuance of 
 34.34  bonds or revenue anticipation certificates. 
 34.35     Subd. 6.  [SECURITY.] Lodging tax revenues must be and 
 34.36  remain pledged and appropriated, for the benefit of and 
 35.1   enforceable by the bondholders or their trustee, for the payment 
 35.2   of all debt service until all bonds and certificates issued 
 35.3   under this section are fully paid or discharged in accordance 
 35.4   with law.  Bonds issued under this section may be secured by a 
 35.5   bond resolution, or by a trust indenture entered into by the 
 35.6   council with a corporate trustee within or outside the state.  
 35.7   The pledge is a valid charge on the lodging tax revenues from 
 35.8   the date when bonds are first issued or secured under the 
 35.9   resolution or indenture and secure the payment of principal and 
 35.10  interest and redemption premiums when due and the maintenance at 
 35.11  all times of a reserve securing the payments.  No mortgage of or 
 35.12  security interest in any tangible real or personal property is 
 35.13  granted to the bondholders or the trustee, but they have a valid 
 35.14  security interest in all lodging tax revenues of the council as 
 35.15  against the claims of all other persons in tort, contract, or 
 35.16  otherwise, irrespective of whether the parties have notice of 
 35.17  the claims, and without possession or filing as provided in the 
 35.18  uniform commercial code or any other law.  In the bond 
 35.19  resolution or trust indenture the council may make any covenants 
 35.20  that are determined by the council to be usual and reasonably 
 35.21  necessary for the protection of the bondholders.  No pledge, 
 35.22  mortgage, covenant, or agreement securing bonds may be impaired, 
 35.23  revoked, or amended by law or by action of the council except in 
 35.24  accordance with the terms of the resolution or indenture under 
 35.25  which the bonds are issued, until the obligations of the council 
 35.26  under the resolution or indenture are fully discharged. 
 35.27     Subd. 7.  [REVENUE ANTICIPATION CERTIFICATES.] In any year, 
 35.28  upon final adoption by the council of an annual budget of the 
 35.29  council, including the lodging tax revenues, and in anticipation 
 35.30  of the lodging tax revenues, but subject to any limitation or 
 35.31  prohibition in a bond resolution or indenture, the council may 
 35.32  authorize the issuance, negotiation, and sale, in the form and 
 35.33  manner and upon the terms it may determine, of revenue 
 35.34  anticipation certificates.  The principal amount of the 
 35.35  certificates outstanding may at no time exceed 25 percent of the 
 35.36  total amount of the revenues anticipated.  The certificates must 
 36.1   mature not later than three months after the close of the budget 
 36.2   year.  So much of the anticipated lodging tax revenues as may be 
 36.3   needed for the payment of the certificates and interest thereon 
 36.4   shall be paid into a special debt service fund established for 
 36.5   the certificates in the council's financial records.  If for any 
 36.6   reason the anticipated revenues are insufficient, the 
 36.7   certificates and interest must be paid from the first revenues 
 36.8   received, subject to any limitation or prohibition in a bond 
 36.9   resolution or indenture.  The proceeds of the certificates may 
 36.10  be used for any purpose for which the anticipated revenues may 
 36.11  be used or for any purpose for which bond proceeds under 
 36.12  subdivision 1 may be used. 
 36.13     Subd. 8.  [VALIDITY OF DEBT ISSUED.] The validity of any 
 36.14  bonds issued under this section and the obligations of the 
 36.15  council related to them must not be conditioned upon or impaired 
 36.16  by the council's determinations made under section 473J.02.  For 
 36.17  the purposes of issuing bonds, the determinations made by the 
 36.18  council are conclusive, and the council is obligated for the 
 36.19  security and payment of the bonds, but only from the sources 
 36.20  pledged thereto, irrespective of determinations that may be 
 36.21  erroneous, inaccurate, or otherwise mistaken. 
 36.22     Sec. 8.  [473J.07] [LODGING TAX.] 
 36.23     The metropolitan council may levy a tax on the gross 
 36.24  receipts from the furnishing for consideration of lodging for a 
 36.25  period of less than 30 days at a hotel, motel, rooming house, 
 36.26  tourist court, or trailer camp located within the metropolitan 
 36.27  area.  The tax may be imposed notwithstanding the limitations of 
 36.28  Laws 1986, chapter 396, section 5, clause (2).  The tax is a 
 36.29  sales tax, supplemental to the general sales tax imposed in 
 36.30  chapter 297A for the purposes and in accordance with the 
 36.31  requirements specified in sections 2 to 7.  The tax or taxes may 
 36.32  be imposed at whatever rate or rates, up to four percent, that 
 36.33  may be necessary to produce revenues that are determined by the 
 36.34  council from year to year to be required, together with other 
 36.35  revenue available to the council, to pay when due all debt 
 36.36  service on bonds and revenue anticipation certificates issued 
 37.1   under section 7.  The council may provide for the suspension, 
 37.2   reimposition, reduction, or increase in tax collections upon its 
 37.3   determination that the actions are appropriate or necessary for 
 37.4   the purposes for which the tax is imposed, provided that the 
 37.5   balance in the debt service fund or funds, including any reserve 
 37.6   for debt service, must be maintained at least at an amount 
 37.7   sufficient to pay the principal and interest on bonds that will 
 37.8   become due within the next succeeding one-year period and, 
 37.9   except as otherwise provided by the agreement, must not be 
 37.10  maintained at an amount greater than that required to pay 
 37.11  principal and interest on bonds that will become due within the 
 37.12  next succeeding two-year period.  The tax must be reported and 
 37.13  paid to the commissioner of revenue with and as part of the 
 37.14  state sales and use taxes, and is subject to the same penalties, 
 37.15  interest, and enforcement provisions.  The collections of the 
 37.16  tax, less refunds and a proportionate share of the costs of 
 37.17  collection, are appropriated to the commissioner of revenue, who 
 37.18  must remit them at least quarterly to the council.  The 
 37.19  commissioner of revenue shall deduct from the proceeds remitted 
 37.20  to the council an amount that equals the direct department costs 
 37.21  necessary to administer, audit, and collect this tax.  The 
 37.22  amount deducted must be credited to the general fund of the 
 37.23  state.  The proceeds remitted to the council must be placed, 
 37.24  together with other revenue available to the council for this 
 37.25  purpose, into the debt service fund or reserve or special funds 
 37.26  established under section 7.  The proceeds may be used for 
 37.27  payment of debt service on bonds and revenue anticipation 
 37.28  certificates issued under section 7. 
 37.29     Sec. 9.  Laws 1986, chapter 396, section 2, subdivision 1, 
 37.30  as amended by Laws 1987, chapter 55, section 4, and Laws 1989, 
 37.31  chapter 54, section 2, is amended to read: 
 37.32     Subdivision 1.  [ACTIVITIES; CONTRACTS.] The city may 
 37.33  acquire, design, construct, equip, improve, expand, control, 
 37.34  operate, and maintain the convention center and related 
 37.35  facilities.  The city shall have all powers necessary or 
 37.36  convenient for those purposes and may enter into any contract 
 38.1   for those purposes, including the financing of the convention 
 38.2   center and any related facilities. 
 38.3      The city may contract for construction materials, supplies, 
 38.4   and equipment in accordance with Minnesota Statutes, section 
 38.5   471.345, except that it may enter into contracts with persons, 
 38.6   firms, or corporations to perform one or more or all of the 
 38.7   functions of architect, engineer, and construction manager with 
 38.8   respect to all or part of a project to build or remodel the 
 38.9   convention center and related facilities.  Contractors shall be 
 38.10  selected through the process of public bidding, provided that it 
 38.11  shall be permissible for the city to narrow the listing of 
 38.12  eligible bidders to those which the city determines to possess 
 38.13  sufficient expertise to perform the intended functions and the 
 38.14  city may negotiate with the three lowest responsible bidders to 
 38.15  achieve the lowest possible bid.  Notwithstanding any other law 
 38.16  or charter provision to the contrary, the city may, at the 
 38.17  discretion of the city council, enter into agreements relating 
 38.18  to the convention center, related facilities or any other city 
 38.19  construction project with appropriate labor organizations and 
 38.20  contractors which provide that no strike or lockout may be 
 38.21  ordered during the term of the agreements.  These provisions and 
 38.22  necessary procedures may be utilized for the purpose of 
 38.23  maintaining employment stability and avoiding delay or 
 38.24  interference with the performance of the fast-track construction 
 38.25  schedule in connection with the project.  The city may require 
 38.26  any construction manager to certify a construction price and 
 38.27  completion date to the city.  The city may require the posting 
 38.28  of a bond in an amount determined by the city to cover any costs 
 38.29  which may be incurred over and above the certified price, 
 38.30  including but not limited to costs incurred by the city or loss 
 38.31  of revenues resulting from incomplete construction on the 
 38.32  completion date and any other obligations the city may require 
 38.33  the construction manager to bear.  The city shall secure surety 
 38.34  bonds as required in Minnesota Statutes, section 574.26, 
 38.35  securing payment of just claims in connection with all public 
 38.36  work undertaken by it.  Persons entitled to the protection of 
 39.1   the bonds may enforce them as provided in Minnesota Statutes, 
 39.2   sections 574.28 to 574.32, and shall not be entitled to a lien 
 39.3   on any property of the city under the provisions of Minnesota 
 39.4   Statutes, sections 514.01 to 514.16. 
 39.5      Sec. 10.  Laws 1986, chapter 396, section 4, subdivision 3, 
 39.6   is amended to read: 
 39.7      Subd. 3.  [USE OF PROPERTY.] (a) Revenues received from the 
 39.8   tax may only be used for the following purposes or as provided 
 39.9   in paragraph (b): 
 39.10     (1) to pay costs of collection; 
 39.11     (2) to pay or secure the payment of any principal of, 
 39.12  premium or interest on bonds issued in accordance with this act; 
 39.13     (3) to pay costs to acquire, design, equip, construct, 
 39.14  improve, maintain, operate, administer, or promote the 
 39.15  convention center or related facilities, including financing 
 39.16  costs related to them; 
 39.17     (4) to pay reasonable and appropriate costs determined by 
 39.18  the city to replace housing removed from the site; and 
 39.19     (5) to maintain reserves for the foregoing purposes deemed 
 39.20  reasonable and appropriate by the city. 
 39.21     (b) After payment of the costs described in paragraph (a), 
 39.22  the city must use the revenues from the tax to pay debt service 
 39.23  on the bonds or other obligations issued by the metropolitan 
 39.24  council to fund the grant made under Minnesota Statutes, section 
 39.25  473J.05.  The city must remit payments to the metropolitan 
 39.26  council at least quarterly.  The metropolitan council shall 
 39.27  credit the amounts received to the debt service fund or reserve 
 39.28  or special funds established under Minnesota Statutes, section 
 39.29  473J.06. 
 39.30     (c) In the event of any amendment to chapter 297A enacted 
 39.31  subsequent to the effective date of this act which exempts sales 
 39.32  or uses which were taxable under chapter 297A on the effective 
 39.33  date of this act, the city may by ordinance extend the tax 
 39.34  authorized hereby to any such sales or uses provided that the 
 39.35  city council shall have determined that such extension is 
 39.36  necessary to provide revenues for the uses to which taxes may be 
 40.1   applied under this section and further provided that, in the 
 40.2   estimation of the city council, the aggregate annual collections 
 40.3   following such extension will not exceed the aggregate annual 
 40.4   collections which would have been generated if chapter 297A, as 
 40.5   in effect on the effective date of this act, were then in 
 40.6   effect.  Any revenue bonds issued in accordance with this act 
 40.7   may, with the consent of the city council, contain a covenant 
 40.8   that the tax will be so extended to the extent necessary to pay 
 40.9   principal and interest on the bonds when due. 
 40.10     Money for replacement housing shall be made available by 
 40.11  the city only for new construction, conversion of nonresidential 
 40.12  buildings, and for rehabilitation of vacant residential 
 40.13  structures, only if all of the units in the newly constructed 
 40.14  building, converted nonresidential building, or rehabilitated 
 40.15  residential structure are to be used for replacement housing.  
 40.16     Sec. 11.  Laws 1993, chapter 375, article 9, section 46, 
 40.17  subdivision 2, as amended by Laws 1997, chapter 231, article 7, 
 40.18  section 40, is amended to read: 
 40.19     Subd. 2.  [USE OF REVENUES.] (a) Revenues received from the 
 40.20  tax authorized by subdivision 1 may only be used by the city to 
 40.21  pay the cost of collecting the tax, and to pay for the following 
 40.22  projects or to secure or pay any principal, premium, or interest 
 40.23  on bonds issued in accordance with subdivision 3 for the 
 40.24  following projects or as provided in paragraph (b).  
 40.25     (a) (1) To pay all or a portion of the capital expenses of 
 40.26  construction, equipment and acquisition costs for the expansion 
 40.27  and remodeling of the St. Paul Civic Center complex. 
 40.28     (b) (2) The remainder of the funds must be spent for: 
 40.29     (1) (i) capital projects to further residential, cultural, 
 40.30  commercial, and economic development in both downtown St. Paul 
 40.31  and St. Paul neighborhoods; and 
 40.32     (2) (ii) the operating expenses of cultural organizations 
 40.33  in the city, provided that the amount spent under this clause 
 40.34  may not exceed ten percent of the total amount spent under this 
 40.35  paragraph. 
 40.36     By January 15 of each odd-numbered year, the mayor and the 
 41.1   city council must report to the legislature on the use of sales 
 41.2   tax revenues during the preceding two-year period. 
 41.3      (b) After payment of the items described in paragraph (a), 
 41.4   revenues derived from the tax must be used to pay debt service 
 41.5   on the bonds or other obligations issued by the metropolitan 
 41.6   council to fund the grant provided under Minnesota Statutes, 
 41.7   section 473J.02.  The city must remit payments to the 
 41.8   metropolitan council at least quarterly.  The metropolitan 
 41.9   council shall credit the amounts received to the debt service 
 41.10  fund or reserve or special funds established under Minnesota 
 41.11  Statutes, section 473J.06.  
 41.12     Sec. 12.  Laws 1993, chapter 375, article 9, section 46, 
 41.13  subdivision 5, is amended to read: 
 41.14     Subd. 5.  [EXPIRATION OF TAXING AUTHORITY.] The authority 
 41.15  granted by subdivision 1 to the city to impose a sales tax shall 
 41.16  expire when the principal and interest on any bonds or other 
 41.17  obligations issued to finance projects authorized in subdivision 
 41.18  2, paragraph (a), clause (1), have been paid and the debt 
 41.19  referred to in subdivision 2, paragraph (b), has been retired or 
 41.20  defeased or at an earlier time as the city shall, by ordinance, 
 41.21  determine provided that the debt referred to in subdivision 2, 
 41.22  paragraph (b), has been retired or defeased.  Any funds 
 41.23  remaining after completion of projects approved under 
 41.24  subdivision 2, paragraph (a), clause (1), and retirement or 
 41.25  redemption of any bonds or other obligations may be placed in 
 41.26  the general fund of the city. 
 41.27     Sec. 13.  [REPEALER.] 
 41.28     Laws 1986, chapter 396, section 2, subdivision 2, is 
 41.29  repealed. 
 41.30     Sec. 14.  [SUNSET.] 
 41.31     Section 8 expires January 1, 2018. 
 41.32     Sec. 15.  [APPLICATION.] 
 41.33     This article applies in the counties of Anoka, Carver, 
 41.34  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 41.35     Sec. 16.  [EFFECTIVE DATE.] 
 41.36     This article is effective the day following final 
 42.1   enactment, except that sections 4 and 5 are effective the day 
 42.2   after compliance by the St. Paul city council with Minnesota 
 42.3   Statutes, section 645.021, subdivision 3, and section 8 is 
 42.4   effective for sales occurring after March 31, 1998. 
 42.5                              ARTICLE 5
 42.6                           DULUTH FACILITY
 42.7      Section 1.  [REVENUES FOR SUPPORT OF DULUTH ENTERTAINMENT 
 42.8   CONVENTION CENTER.] 
 42.9      Subdivision 1.  [LODGING TAX.] Notwithstanding Minnesota 
 42.10  Statutes, section 477A.016, the city of Duluth may impose a tax 
 42.11  at the rate of up to one percent on the gross receipts from the 
 42.12  furnishing for consideration of lodging for a period of less 
 42.13  than 30 days at a hotel, motel, rooming house, tourist court, or 
 42.14  trailer camp located within the city of Duluth.  
 42.15     Subd. 2.  [FOOD AND BEVERAGE TAX.] Notwithstanding 
 42.16  Minnesota Statutes, section 477A.016, the city of Duluth may 
 42.17  impose a tax at a rate of up to one percent on sales of food and 
 42.18  beverages that are taxable under Laws 1977, chapter 438, section 
 42.19  1, subdivision 2. 
 42.20     Subd. 3.  [NATURE OF TAXES; ADMINISTRATION.] These taxes 
 42.21  are sales taxes, supplemental to the general sales tax, and are 
 42.22  in addition to all other taxes imposed under state law or local 
 42.23  ordinance or charter provisions.  The taxes must be reported and 
 42.24  paid to the commissioner of revenue with and as part of the 
 42.25  state sales and use taxes, and are subject to the same 
 42.26  penalties, interest, and enforcement provisions.  The 
 42.27  collections of the taxes, less refunds, are appropriated to the 
 42.28  commissioner of revenue, who must remit them at least quarterly 
 42.29  to the city.  The commissioner of revenue shall deduct from the 
 42.30  proceeds remitted to the city an amount that equals the direct 
 42.31  department costs necessary to administer, audit, and collect 
 42.32  this tax.  The amount deducted must be credited to the general 
 42.33  fund of the state.  The proceeds remitted to the city must be 
 42.34  used for the improvement of the Duluth entertainment convention 
 42.35  center. 
 42.36     Sec. 2.  Minnesota Statutes 1996, section 297A.25, 
 43.1   subdivision 60, is amended to read: 
 43.2      Subd. 60.  [CONSTRUCTION MATERIALS; STATE CONVENTION 
 43.3   CENTER.] Construction materials and supplies are exempt from the 
 43.4   tax imposed under this chapter, regardless of whether purchased 
 43.5   by the owner or a contractor, subcontractor, or builder, if: 
 43.6      (1) the materials and supplies are used or consumed in 
 43.7   constructing improvements to a state convention center located 
 43.8   in a city located outside of the metropolitan area as defined in 
 43.9   section 473.121, subdivision 2, and the center is governed by an 
 43.10  11-person board of which four are appointed by the governor; and 
 43.11     (2) the improvements are financed in whole or in part by 
 43.12  nonstate resources including, but not limited to, revenue or 
 43.13  general obligations issued by the state convention center board 
 43.14  of the city in which the center is located. 
 43.15     The exemption provided by this subdivision applies to 
 43.16  construction materials and supplies purchased prior to December 
 43.17  31, 1998. 
 43.18     Sec. 3.  [EFFECTIVE DATE.] 
 43.19     Section 1 is effective the day following final enactment, 
 43.20  upon compliance with Minnesota Statutes, section 645.021, 
 43.21  subdivision 3, by the governing body of the city of Duluth.