SF 4

Introduction - 80th Legislature, 1997 3rd Special Session

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

  1.1                          A bill for an act
  1.2             relating to a baseball stadium; authorizing the 
  1.3             metropolitan council to finance, construct, own and 
  1.4             operate a baseball stadium in the metropolitan area; 
  1.5             providing for members of the metropolitan council to 
  1.6             serve four-year terms; appropriating money; amending 
  1.7             Minnesota Statutes 1996, sections 349A.10, subdivision 
  1.8             5, and by adding a subdivision; 473.123, subdivision 
  1.9             2a; and 473F.08, subdivision 5, and by adding a 
  1.10            subdivision; proposing coding for new law as Minnesota 
  1.11            Statutes, chapter 473I. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13                             ARTICLE 1
  1.14                   BASEBALL STADIUM CONSTRUCTION
  1.15     Section 1.  [473I.01] [DEFINITIONS.] 
  1.16     Subdivision 1.  [APPLICATION.] The definitions in section 
  1.17  473.121 apply to this chapter unless otherwise indicated.  For 
  1.18  purposes of this chapter, the terms in this section have the 
  1.19  meanings given them. 
  1.20     Subd. 2.  [BASEBALL STADIUM.] "Baseball stadium" means a 
  1.21  facility owned by the metropolitan council and designed for 
  1.22  major league professional baseball. 
  1.23     Subd. 3.  [BASEBALL STADIUM ACCOUNT.] "Baseball stadium 
  1.24  account" means the account established in section 473I.06. 
  1.25     Subd. 4.  [BASEBALL STADIUM REVENUE.] "Baseball stadium 
  1.26  revenue" means all revenue received by or payable to the 
  1.27  metropolitan council for the purposes of the baseball stadium as 
  1.28  provided in this chapter. 
  2.1      Subd. 5.  [BASEBALL TEAM.] "Baseball team" or "team" means 
  2.2   a major league professional baseball team. 
  2.3      Subd. 6.  [CITY.] "City" means the city in which the 
  2.4   baseball stadium is located. 
  2.5      Subd. 7.  [COUNTY.] "County" means the county in which the 
  2.6   baseball stadium is located. 
  2.7      Subd. 8.  [OWNER.] "Owner" means the person or persons who 
  2.8   directly or indirectly own an interest in the baseball team.  
  2.9   "Owner" does not mean the metropolitan council. 
  2.10     Sec. 2.  [473I.02] [METROPOLITAN COUNCIL POWERS AND 
  2.11  DUTIES.] 
  2.12     Subdivision 1.  [GENERAL.] For the purposes of carrying out 
  2.13  the duties assigned to it under this chapter, the council has 
  2.14  the powers and duties of the metropolitan council under chapter 
  2.15  473, the powers of the metropolitan sports facilities commission 
  2.16  under sections 473.551 to 473.599, and all the powers, necessary 
  2.17  and convenient, to carry out the duties assigned to it under 
  2.18  this chapter. 
  2.19     Subd. 2.  [EXEMPTION OF PROPERTY.] Any real or personal 
  2.20  property acquired, owned, leased, controlled, used, or occupied 
  2.21  by the metropolitan council for the purposes of this chapter is 
  2.22  acquired, owned, leased, controlled, used, and occupied for 
  2.23  public and governmental purposes, and is exempt from ad valorem 
  2.24  taxation by the state or any political subdivision of the 
  2.25  state.  Such properties, however, are subject to special 
  2.26  assessments.  A special assessment for a local improvement shall 
  2.27  be levied by the political subdivision as provided in chapter 
  2.28  429. 
  2.29     Subd. 3.  [EMINENT DOMAIN.] The council, the city, or the 
  2.30  county may exercise the right of eminent domain under chapter 
  2.31  117 to acquire any property, whether real, personal, or 
  2.32  intangible, that is determined to be essential and integral to 
  2.33  the successful operation of the baseball stadium. 
  2.34     Subd. 4.  [BASEBALL STADIUM OPERATION.] The metropolitan 
  2.35  council may construct, equip, improve, operate, manage, 
  2.36  maintain, and control the baseball stadium. 
  3.1      Subd. 5.  [USE OF BASEBALL STADIUM REVENUE.] The 
  3.2   metropolitan council may spend baseball stadium revenue to pay 
  3.3   any reasonable expenses necessary to construct, administer, 
  3.4   operate, improve, or maintain the baseball stadium or to pay 
  3.5   debt service on bonds or other obligations sold for purposes of 
  3.6   the baseball stadium. 
  3.7      Sec. 3.  [473I.03] [BASEBALL STADIUM.] 
  3.8      Subdivision 1.  [ESSENTIAL CHARACTERISTICS.] The baseball 
  3.9   stadium must be designed for playing major league professional 
  3.10  baseball and no other major league spectator sport that uses a 
  3.11  surface or seating configuration different from major league 
  3.12  baseball.  The baseball stadium must be designed and built to be 
  3.13  ready for a retractable roof, but no retractable roof shall be 
  3.14  constructed unless the baseball team owner pays the council for 
  3.15  the cost of the roof.  The baseball stadium may include parking 
  3.16  or other transit facilities for patrons, performers, and 
  3.17  employees and may include other amenities to enhance or make the 
  3.18  use of the baseball stadium convenient and predictably 
  3.19  accessible to all.  
  3.20     Subd. 2.  [DESIGN.] The metropolitan council shall 
  3.21  determine the program elements of the baseball stadium, 
  3.22  including, but not limited to, capacity, suites, club seats, 
  3.23  clubs, and amenities.  The council shall also determine the 
  3.24  baseball stadium design, and the selection of the project 
  3.25  construction team, including the architect and general 
  3.26  contractor. 
  3.27     Subd. 3.  [LOCATION.] The council shall select a site for 
  3.28  the baseball stadium within the metropolitan area.  
  3.29     Subd. 4.  [RELATED INFRASTRUCTURE.] The council shall 
  3.30  negotiate with the appropriate governmental entities, including 
  3.31  the city and county for necessary or appropriate infrastructure 
  3.32  improvements to support the existence and operation of the 
  3.33  baseball stadium, the movement of patrons to and from the 
  3.34  stadium, and their comfort, safety, and convenience while in and 
  3.35  around the baseball stadium. 
  3.36     Subd. 5.  [CONSTRUCTION METHODS.] The council may contract 
  4.1   for construction materials, supplies, and equipment in 
  4.2   accordance with section 471.345, except that the council may 
  4.3   employ persons, firms, or corporations to perform one or more or 
  4.4   all of the functions of architect, engineer, construction 
  4.5   manager, or contractor for both design and construction, with 
  4.6   respect to all or part of a project to build or remodel sports 
  4.7   facilities.  Contractors shall be selected through the process 
  4.8   of public bidding, provided that the council may narrow the 
  4.9   listing of eligible bidders to those the council determines to 
  4.10  possess sufficient expertise to perform the intended functions 
  4.11  and the council may negotiate with the three lowest responsible 
  4.12  bidders to achieve the best and final offer.  The council may 
  4.13  require a construction manager to certify a construction price 
  4.14  and completion date to the council.  The council may require the 
  4.15  posting of a bond in an amount determined by the council to 
  4.16  cover any costs that may be incurred over and above the 
  4.17  certified price, including, but not limited to, costs incurred 
  4.18  by the council or loss of revenues resulting from incomplete 
  4.19  construction on the completion date and any other obligations 
  4.20  the council may require the construction manager to bear.  The 
  4.21  council shall secure surety bonds as required in section 574.26 
  4.22  securing payment of just claims in connection with all public 
  4.23  work undertaken by it.  Persons entitled to the protection of 
  4.24  the bonds may enforce them as provided in sections 574.28 to 
  4.25  574.32 and are not entitled to a lien on any property of the 
  4.26  council under sections 514.01 to 514.16. 
  4.27     Sec. 4.  [473I.04] [DETERMINATIONS BEFORE BONDS SOLD.] 
  4.28     Subdivision 1.  [WHEN.] The metropolitan council shall make 
  4.29  all the determinations and enter into all the agreements 
  4.30  required by this section before it authorizes the sale of bonds 
  4.31  under section 473I.05. 
  4.32     Subd. 2.  [30-YEAR USE AGREEMENT.] (a) The council has 
  4.33  executed noncancellable agreements with the owner and the 
  4.34  baseball team to use the baseball stadium for all scheduled 
  4.35  regular season and all postseason division, league, and world 
  4.36  series championship playoff home games for no less than 30 years.
  5.1      (b) The agreements shall afford to the council, or to 
  5.2   another public entity or entities as the council deems 
  5.3   appropriate, the rights and remedies that are deemed necessary 
  5.4   and appropriate to provide assurances that the baseball team and 
  5.5   the owner will comply with the agreements throughout its 30-year 
  5.6   term.  The remedies may include equitable relief, including 
  5.7   specific performance and injunctive relief, the payment of 
  5.8   liquidated damages equivalent to direct and consequential 
  5.9   damages incurred by reason of the breach of the agreements, and 
  5.10  any additional remedies or ownership, voting, or other security 
  5.11  arrangements the council reasonably determines to be effective 
  5.12  in assuring the baseball team will play the required games in 
  5.13  the baseball stadium throughout the 30-year term.  In the 
  5.14  enforcement of the agreements, the council may elect from among 
  5.15  the rights and remedies provided for in this paragraph, and that 
  5.16  election shall not extinguish the council's other rights and 
  5.17  remedies except as may otherwise be provided by law.  It is the 
  5.18  intent of the legislature that a material breach of an agreement 
  5.19  between the council and other public bodies and professional 
  5.20  athletic teams which commit to the long-term playing of major 
  5.21  league games at public facilities shall be deemed to cause 
  5.22  irreparable harm for which no adequate remedy at law may be 
  5.23  available and that the grant of equitable relief to remedy such 
  5.24  breach is in the public interest and shall be liberally so 
  5.25  construed.  
  5.26     Subd. 3.  [OWNER'S ABILITY TO COMPLY.] The baseball team 
  5.27  and the owner have provided information and, if reasonably 
  5.28  necessary, posted security sufficient to satisfy the council of 
  5.29  the baseball team's and the owner's ability to comply with the 
  5.30  terms of the 30-year agreement. 
  5.31     Subd. 4.  [OWNER'S CONTRIBUTION.] The owner has made an 
  5.32  enforceable pledge, in a form satisfactory to the council, to 
  5.33  make a contribution to the council of cash or marketable 
  5.34  securities in an amount not less than $65,000,000 to help pay 
  5.35  the costs of constructing the baseball stadium, to be paid prior 
  5.36  to construction.  The requirement of this subdivision is in 
  6.1   addition to the requirements in subdivision 12 and any other 
  6.2   requirements. 
  6.3      Subd. 5.  [OTHER CONTRIBUTIONS.] The council has received 
  6.4   at least $1,000,000 in contributions for which the contributors 
  6.5   will be recognized in a visible place in the baseball stadium.  
  6.6   The recognition may be in the form of the contributor's name on 
  6.7   a brick in the baseball stadium structure.  
  6.8      Subd. 6.  [NAMING RIGHTS; OTHER PROJECT CAPITAL 
  6.9   OPPORTUNITIES.] The council has entered into agreements with the 
  6.10  owner and the baseball team that provides to the owner and the 
  6.11  baseball team all revenues from the sale or lease of naming 
  6.12  rights, permanent seat licenses, promotional rights, 
  6.13  concessions, and other project capital opportunities. 
  6.14     Subd. 7.  [CAPITAL PLAN.] The owner has developed a capital 
  6.15  plan approved by the council for the sale or lease of the 
  6.16  project capital opportunities from which the owner and the team 
  6.17  shall receive revenues as provided in subdivision 6. 
  6.18     Subd. 8.  [MAJOR LEAGUE BASEBALL CONTRIBUTION.] The council 
  6.19  and the owner have entered into an agreement that provides that 
  6.20  the owner will use its best efforts to obtain construction money 
  6.21  for the baseball stadium from major league baseball. 
  6.22     Subd. 9.  [ALL-STAR GAME.] The council and the owner have 
  6.23  entered into an agreement that provides that the owner and the 
  6.24  baseball team must use their best efforts to obtain a major 
  6.25  league baseball agreement for an all-star game in the baseball 
  6.26  stadium within the first eight years following opening day. 
  6.27     Subd. 10.  [LOCAL GOVERNMENT CONTRIBUTION.] The council has 
  6.28  executed an agreement with the city, county, or both, under 
  6.29  which the city, county, or both will:  (a) provide to the 
  6.30  council title to all real property, including all easements and 
  6.31  other appurtenances needed for the construction and operation of 
  6.32  the baseball stadium, and (b) prepare the site for construction 
  6.33  and operation of the baseball stadium, including clearing the 
  6.34  property of all improvements thereon which would interfere with 
  6.35  the construction and operation of the baseball stadium. 
  6.36     Subd. 11.  [GUARANTEED MAXIMUM PRICE.] The council has 
  7.1   executed agreements to provide for the construction of the 
  7.2   baseball stadium for a guaranteed maximum price and substantial 
  7.3   completion date of April 1, ...., and that include performance 
  7.4   bonds in an amount at least equal to 100 percent of the 
  7.5   guaranteed maximum price to cover any costs that may be incurred 
  7.6   over and above the guaranteed maximum price, including, but not 
  7.7   limited to, costs incurred by the council or loss of revenues 
  7.8   resulting from incomplete construction on the substantial 
  7.9   completion date.  
  7.10     Subd. 12.  [ROOF AND COST OVERRUNS TO BE PAID BY 
  7.11  OWNER.] The metropolitan council, the owner, and the team have 
  7.12  executed agreements to provide that, in addition to the owner's 
  7.13  contribution required in subdivision 4, the owner and the 
  7.14  baseball team will be responsible for the payment of any and all 
  7.15  costs of the retractable roof and for any and all costs that may 
  7.16  be incurred in the construction of the baseball stadium which 
  7.17  exceed the guaranteed maximum price.  
  7.18     Subd. 13.  [NO STRIKES OR LOCKOUTS.] The council has 
  7.19  executed agreements with appropriate labor organizations and 
  7.20  construction contractors that provide that no labor strikes or 
  7.21  management lockouts will delay construction. 
  7.22     Subd. 14.  [BASEBALL TEAM TO OPERATE STADIUM.] The council 
  7.23  has executed agreements with the owner and the baseball team 
  7.24  that provide for operation and maintenance of the baseball 
  7.25  stadium at the owner's and team's expense.  The agreements must 
  7.26  provide that: 
  7.27     (1) the baseball team will manage, maintain, operate, and 
  7.28  repair the baseball stadium and, with the approval of the 
  7.29  council, may contract with one or more entities to operate part 
  7.30  or all of the baseball stadium; and 
  7.31     (2) the baseball team, with the approval of the council, 
  7.32  shall contract with one or more concessionaires to provide food 
  7.33  and beverages for the baseball stadium. 
  7.34     The agreements must provide criteria for maintenance and 
  7.35  operation of the baseball stadium and remedies as referred to in 
  7.36  subdivision 2, paragraph (b), that may be exercised by the 
  8.1   council to ensure that the criteria are met.  The agreements 
  8.2   must also require that the baseball team provide annually 
  8.3   audited financial statements to the council. 
  8.4      Subd. 15.  [MANAGEMENT OF BASEBALL TEAM.] The council and 
  8.5   the owner have entered into an agreement that obligates the 
  8.6   owner to manage the baseball team in good faith so as to achieve 
  8.7   profitable operation. 
  8.8      Subd. 16.  [COUNCIL PARTICIPATION IN CONTRACT 
  8.9   NEGOTIATIONS.] The council and the owner have executed an 
  8.10  agreement that provides for a procedure for the council to 
  8.11  participate in the negotiations of any operations, concessions, 
  8.12  naming rights, advertising, or any other contracts or agreements 
  8.13  pertinent to the operation and maintenance of the baseball 
  8.14  stadium between the owner and any other third party. 
  8.15     Subd. 17.  [CAPITAL REPAIRS AND IMPROVEMENTS.] The council 
  8.16  has established a baseball stadium capital repair and 
  8.17  improvement account and has entered into an agreement with the 
  8.18  owner and the baseball team that provides that the owner and the 
  8.19  baseball team will pay $....... a year into the account to be 
  8.20  used by the council to make any capital repairs, improvements, 
  8.21  enhancements, and betterments necessary to maintain the baseball 
  8.22  stadium.  The council is not obligated to spend money for these 
  8.23  purposes in excess of the balance in the capital repair and 
  8.24  improvement account. 
  8.25     Subd. 18.  [UNIVERSITY OF MINNESOTA.] The council has 
  8.26  consulted with and considered the needs of the University of 
  8.27  Minnesota for baseball facilities for the next 30 years. 
  8.28     Subd. 19.  [REVENUES TO BE SUFFICIENT.] The anticipated 
  8.29  baseball stadium revenue is an amount sufficient to pay when due 
  8.30  all debt service on the revenue bonds and all administrative 
  8.31  expenses, and the owner's and baseball team's anticipated 
  8.32  revenue is an amount sufficient to pay all operating and 
  8.33  maintenance expenses of the baseball stadium for the 30-year 
  8.34  lease term.  
  8.35     Subd. 20.  [BASEBALL TEAM OPERATING EXPENSES; LOSS.] The 
  8.36  council and the owner and the baseball team have executed 
  9.1   agreements providing that the owner and the team shall assume 
  9.2   all risk for, and timely pay, all operating, maintenance, and 
  9.3   repair expenses of the baseball team and the baseball stadium.  
  9.4   The baseball team shall be organized so that under Minnesota 
  9.5   law, the council is not liable for any operating loss, 
  9.6   liability, or obligation of the baseball team, or baseball 
  9.7   stadium.  The council shall have no duty to reimburse the owner 
  9.8   or any creditor of the owner, the baseball team, or the baseball 
  9.9   stadium for any operating loss, liability, or obligation of the 
  9.10  baseball team or baseball stadium, and shall be indemnified by 
  9.11  the owner against losses or claims. 
  9.12     Sec. 5.  [473I.05] [DEBT OBLIGATIONS FOR BASEBALL STADIUM.] 
  9.13     Subdivision 1.  [PURPOSES.] The council may by resolution 
  9.14  authorize the sale and issuance of its revenue bonds for the 
  9.15  following purposes after determining that the conditions imposed 
  9.16  by section 473I.04 have been or will be met in material respects:
  9.17     (1) to acquire and better facilities for a baseball 
  9.18  stadium, including, but not limited to, construction; 
  9.19     (2) to reimburse the council for its costs in making the 
  9.20  determinations required by section 473I.04, whenever incurred; 
  9.21     (3) to pay issuance costs and costs of bond insurance or 
  9.22  other credit enhancement for the bonds and to establish 
  9.23  necessary reserves for operating and debt service costs; 
  9.24     (4) to refund bonds issued under this section; and 
  9.25     (5) to fund judgments entered by any court against the 
  9.26  council in matters relating to the council's functions related 
  9.27  to the baseball stadium. 
  9.28     Subd. 2.  [AMOUNT.] The principal amount of the bonds 
  9.29  issued under subdivision 1, clause (1), exclusive of any 
  9.30  original issue discount, may not exceed $285,000,000. 
  9.31     Subd. 3.  [TAXABILITY.] The bonds may be issued as 
  9.32  tax-exempt revenue bonds or as taxable revenue bonds in the 
  9.33  proportions that the council may determine. 
  9.34     Subd. 4.  [PROCEDURE.] The bonds shall be sold, issued, and 
  9.35  secured in the manner provided in chapter 475 for bonds payable 
  9.36  solely from revenues and the council has the same powers and 
 10.1   duties as a municipality and its governing body in issuing bonds 
 10.2   under that chapter.  The bonds may be sold at any price and at 
 10.3   public or private sale as determined by the council.  An 
 10.4   election is not required.  
 10.5      Subd. 5.  [NOT A GENERAL OR MORAL OBLIGATION.] The bonds 
 10.6   are payable solely from baseball stadium revenues.  The bonds 
 10.7   are not a general or moral obligation or debt of the council, 
 10.8   any other political subdivision of the state, or the state, and 
 10.9   must not be included in the net debt of any city, county, or 
 10.10  other subdivision of the state for the purpose of any net debt 
 10.11  limitation.  The state does not assume any obligation or 
 10.12  liability for bonds sold or issued under this section.  
 10.13     Subd. 6.  [BROKERAGE FIRM AGREEMENT.] Before issuing debt 
 10.14  under this section, the council must enter into an agreement 
 10.15  with the brokerage firm to be used in connection with the sale 
 10.16  and issuance of the bonds or revenue anticipation certificates 
 10.17  under this section, guaranteeing that fees and charges payable 
 10.18  to the brokerage firm under the agreement, including any 
 10.19  underwriting discounts, do not exceed fees and charges 
 10.20  customarily payable in connection with the sale and issuance of 
 10.21  bonds or revenue anticipation certificates. 
 10.22     Subd. 7.  [SECURITY.] Baseball stadium revenues must be and 
 10.23  remain pledged and appropriated, for the benefit of and 
 10.24  enforceable by the bondholders or their trustee, for the payment 
 10.25  of all necessary and reasonable expenses of the operation, 
 10.26  administration, maintenance, and debt service of the baseball 
 10.27  stadium until all bonds and certificates issued under this 
 10.28  section are fully paid or discharged in accordance with law.  
 10.29  Bonds issued under this section may be secured by a bond 
 10.30  resolution, or by a trust indenture entered into by the council 
 10.31  with a corporate trustee within or outside the state, which must 
 10.32  define the baseball stadium revenues pledged for the payment and 
 10.33  security of the bonds.  The pledge is a valid charge on the 
 10.34  baseball stadium revenues from the date when bonds are first 
 10.35  issued or secured under the resolution or indenture and secure 
 10.36  the payment of principal and interest and redemption premiums 
 11.1   when due and the maintenance at all times of a reserve securing 
 11.2   the payments.  No mortgage of or security interest in any 
 11.3   tangible real or personal property is granted to the bondholders 
 11.4   or the trustee, but they have a valid security interest in all 
 11.5   baseball stadium revenues of the council as against the claims 
 11.6   of all other persons in tort, contract, or otherwise, 
 11.7   irrespective of whether the parties have notice of the claims, 
 11.8   and without possession or filing as provided in the uniform 
 11.9   commercial code or any other law.  
 11.10     The council may pledge as additional security for the bonds 
 11.11  the imposition of a fiscal disparities backup tax under section 
 11.12  473F.08, subdivision 3c.  This tax may be imposed, for any year, 
 11.13  only if the other sources of revenues securing the bonds are 
 11.14  insufficient to fund the debt service reserve account at the 
 11.15  level required by the bond resolution or trust indenture.  In 
 11.16  the bond resolution or trust indenture the council may make any 
 11.17  covenants that are determined to be usual and reasonably 
 11.18  necessary for the protection of the bondholders.  No pledge, 
 11.19  mortgage, covenant, or agreement securing bonds may be impaired, 
 11.20  revoked, or amended by law or by action of the council except in 
 11.21  accordance with the terms of the resolution or indenture under 
 11.22  which the bonds are issued, until the obligations of the council 
 11.23  under the resolution or indenture are fully discharged. 
 11.24     Subd. 8.  [DEBT SERVICE RESERVE ACCOUNT.] The council must 
 11.25  establish a debt service reserve account or provide adequate 
 11.26  insurance in lieu of this account.  The council shall deposit in 
 11.27  the account baseball stadium revenue to ensure payment of the 
 11.28  bonds issued under this section as provided in the bond 
 11.29  resolution or trust indenture. 
 11.30     Subd. 9.  [REVENUE ANTICIPATION CERTIFICATES.] Upon final 
 11.31  adoption by the council of an annual budget, including the 
 11.32  baseball stadium revenues, and in anticipation of the baseball 
 11.33  stadium revenues, but subject to any limitation or prohibition 
 11.34  in a bond resolution or indenture, the council may authorize the 
 11.35  issuance, negotiation, and sale, in the form and manner and upon 
 11.36  the terms it may determine, of revenue anticipation 
 12.1   certificates.  The principal amount of the certificates 
 12.2   outstanding may at no time exceed 25 percent of the total amount 
 12.3   of the baseball stadium revenues anticipated.  The certificates 
 12.4   must mature not later than three months after the close of the 
 12.5   budget year.  So much of the anticipated baseball stadium 
 12.6   revenues as may be needed for the payment of the certificates 
 12.7   and interest thereon shall be paid into a special debt service 
 12.8   fund established for the certificates in the council's financial 
 12.9   records.  If for any reason the anticipated revenues are 
 12.10  insufficient, the certificates and interest must be paid from 
 12.11  the first revenues received, subject to any limitation or 
 12.12  prohibition in a bond resolution or indenture.  The proceeds of 
 12.13  the certificates may be used for any purpose for which the 
 12.14  anticipated revenues may be used or for any purpose for which 
 12.15  bond proceeds under subdivision 1 may be used. 
 12.16     Subd. 10.  [VALIDITY OF DEBT ISSUED.] The validity of any 
 12.17  bonds issued under this section and the obligations of the 
 12.18  council related to them must not be conditioned upon or impaired 
 12.19  by the council's determinations made under section 473I.04.  For 
 12.20  the purposes of issuing bonds, the determinations made by the 
 12.21  council are conclusive, and the council is obligated for the 
 12.22  security and payment of the bonds, but only from the sources 
 12.23  pledged thereto, irrespective of determinations that may be 
 12.24  erroneous, inaccurate, or otherwise mistaken. 
 12.25     Sec. 6.  [473I.06] [BASEBALL STADIUM ACCOUNT.] 
 12.26     The baseball stadium account is created in the special 
 12.27  revenue fund in the state treasury.  All money credited to the 
 12.28  baseball stadium account is appropriated to the commissioner of 
 12.29  revenue for payment to the metropolitan council for purposes of 
 12.30  the baseball stadium.  The council shall use all receipts from 
 12.31  the baseball stadium account to administer, operate, and 
 12.32  maintain the baseball stadium and to pay debt service on bonds 
 12.33  or other obligations sold for purposes of the baseball stadium. 
 12.34     Sec. 7.  [APPLICATION; EFFECTIVE DATE.] 
 12.35     This article applies in the counties of Anoka, Carver, 
 12.36  Dakota, Hennepin, Ramsey, Scott, and Washington.  This article 
 13.1   is effective the day following final enactment. 
 13.2                              ARTICLE 2
 13.3                      STADIUM FINANCING REVENUES
 13.4      Section 1.  Minnesota Statutes 1996, section 349A.10, 
 13.5   subdivision 5, is amended to read: 
 13.6      Subd. 5.  [DEPOSIT OF NET PROCEEDS.] (a) Within 30 days 
 13.7   after the end of each month, the director shall deposit in the 
 13.8   state treasury the net proceeds of the lottery, which is the 
 13.9   balance in the lottery fund after transfers to the lottery prize 
 13.10  fund and credits to the lottery operations account.  
 13.11     (b) Of the net proceeds, 40 percent must be credited to the 
 13.12  Minnesota environment and natural resources trust fund, and. 
 13.13     (c) The remainder must be credited to the special revenue 
 13.14  fund created in section 16A.67, subdivision 3.  Money credited 
 13.15  to the special revenue fund must be transferred to the debt 
 13.16  service fund established in section 16A.67, subdivision 4, at 
 13.17  the times and in the amounts determined by the commissioner of 
 13.18  finance to be necessary to provide for the payment and security 
 13.19  of bonds issued pursuant to section 16A.67.  On or before the 
 13.20  tenth day of each month, any money in the special revenue fund 
 13.21  not required to be transferred to the debt service fund must be 
 13.22  transferred to the general fund.  This paragraph no longer 
 13.23  applies when all the bonds that are secured by the debt service 
 13.24  fund established in section 16A.67, subdivision 4, and that were 
 13.25  issued and sold before October 1, 1997, have been paid or fully 
 13.26  defeased, whichever occurs first. 
 13.27     (d) Beginning with the first day when paragraph (c) no 
 13.28  longer applies, the remainder of the net proceeds must be 
 13.29  deposited in the baseball stadium account in the special revenue 
 13.30  fund.  Any amounts not needed to pay debt service on the 
 13.31  baseball stadium bonds, issued under section 473I.05, or other 
 13.32  costs of the metropolitan council for the baseball stadium, in 
 13.33  any year, must be deposited in the general fund.  After all of 
 13.34  the baseball stadium bonds, issued under section 473I.05, have 
 13.35  been paid or defeased, all of the remainder of the net proceeds 
 13.36  must be deposited in the general fund. 
 14.1      Sec. 2.  Minnesota Statutes 1996, section 349A.10, is 
 14.2   amended by adding a subdivision to read: 
 14.3      Subd. 5a.  [SPECIAL LOTTERY GAME.] (a) The lottery shall 
 14.4   conduct an instant lottery game each year with a baseball theme. 
 14.5      (b) The net revenues from the game conducted under this 
 14.6   subdivision, after the deduction of the net revenue to be paid 
 14.7   to the Minnesota environment and natural resources trust fund, 
 14.8   must be credited to the baseball stadium account in the special 
 14.9   revenue fund and are appropriated to the metropolitan council. 
 14.10     Sec. 3.  Minnesota Statutes 1996, section 473F.08, is 
 14.11  amended by adding a subdivision to read: 
 14.12     Subd. 3c.  [STADIUM BACKUP TAX.] By August 1 of each year, 
 14.13  the regional administrator of the metropolitan council shall 
 14.14  determine the amount of revenues needed to fund the stadium bond 
 14.15  debt service reserve account, as provided under section 473I.05, 
 14.16  subdivision 8, and the bond resolution or trust indenture.  The 
 14.17  regional administrator shall certify this amount as an 
 14.18  additional levy against the fiscal disparities areawide tax base 
 14.19  to the Ramsey county auditor, except that the amount levied may 
 14.20  not exceed $10,000,000 in any year.  The Ramsey county auditor 
 14.21  shall certify the levy to the administrative auditor as an 
 14.22  addition to the metropolitan council's areawide levy under 
 14.23  subdivision 5. 
 14.24     Sec. 4.  Minnesota Statutes 1996, section 473F.08, 
 14.25  subdivision 5, is amended to read: 
 14.26     Subd. 5.  [AREAWIDE TAX RATE.] On or before August 25 of 
 14.27  each year, the county auditor shall certify to the 
 14.28  administrative auditor that portion of the levy of each 
 14.29  governmental unit determined under subdivisions 3, clause (a), 
 14.30  3a, and 3b, and 3c.  The administrative auditor shall then 
 14.31  determine the areawide tax rate sufficient to yield an amount 
 14.32  equal to the sum of such levies from the areawide net tax 
 14.33  capacity.  On or before September 1 of each year, the 
 14.34  administrative auditor shall certify the areawide tax rate to 
 14.35  each of the county auditors. 
 14.36     Sec. 5.  [473I.07] [STADIUM INCOME SURTAX.] 
 15.1      Subdivision 1.  [TAX IMPOSED.] The metropolitan council may 
 15.2   by resolution impose a tax on the taxable baseball stadium 
 15.3   income of a qualified employee of a sports organization that 
 15.4   uses the baseball stadium.  The tax equals two percent of 
 15.5   taxable baseball stadium income for the taxable year. 
 15.6      Subd. 2.  [DEFINITIONS.] (a) The definitions in chapter 290 
 15.7   and in this subdivision apply to this section. 
 15.8      (b) "Taxable baseball stadium income" means wages, 
 15.9   salaries, or other compensation derived from the performance of 
 15.10  personal services in the baseball stadium, less $100,000.  For 
 15.11  both residents and nonresidents, the amount attributable to 
 15.12  performance of personal services in the baseball stadium is 
 15.13  determined under the allocation rules under section 290.17, 
 15.14  subdivision 2, paragraph (a), clause (2), except the days or 
 15.15  performances in the baseball stadium are to be used instead of 
 15.16  days or performances in Minnesota. 
 15.17     (c) A "qualified employee" means an employee who derives 
 15.18  wages, salaries, or other compensation of at least $100,000 for 
 15.19  the performance of personal services from a sports organization 
 15.20  for the taxable year. 
 15.21     (d) A "sports organization" means any organization that 
 15.22  operates a major league professional sports franchise.  A sports 
 15.23  organization includes a visiting team regardless of whether it 
 15.24  has a direct agreement with the owner or operator of the 
 15.25  baseball stadium. 
 15.26     Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 15.27  section must be collected in the manner provided for individual 
 15.28  income taxes imposed under chapter 290 and in accordance with an 
 15.29  agreement between the council and the commissioner of revenue.  
 15.30  The revenue from the tax must be deposited in the baseball 
 15.31  stadium account in the special revenue fund. 
 15.32     Sec. 6.  [473I.08] [PARKING TAX.] 
 15.33     Subdivision 1.  [TAX IMPOSED.] The council may by 
 15.34  resolution impose a parking tax of not less than $1 per vehicle 
 15.35  per event at the baseball stadium or the metrodome, as defined 
 15.36  in section 473.551, subdivision 9, or both.  The city shall 
 16.1   collect the tax on behalf of the council.  The tax does not 
 16.2   apply to metrodome parking until the bonds issued under section 
 16.3   473.581 to finance the metrodome have been fully paid or 
 16.4   defeased. 
 16.5      Subd. 2.  [DEFINITION.] For purposes of the tax on 
 16.6   metrodome event parking, "city" means the city of Minneapolis. 
 16.7      Subd. 3.  [AREA OF APPLICATION.] The tax applies to parking 
 16.8   in the area providing event parking, as mutually agreed by the 
 16.9   city and council.  The area of application for purposes of the 
 16.10  tax on metrodome event parking is the area in which the 
 16.11  pre-existing parking tax applied under the ten-year agreement 
 16.12  between the metropolitan sports facilities commission and the 
 16.13  city of Minneapolis unless another area is mutually agreed upon 
 16.14  by the city and the council. 
 16.15     Subd. 4.  [TERMS SET BY AGREEMENT.] The council and city 
 16.16  shall mutually agree upon the terms and provisions of the tax, 
 16.17  including: 
 16.18     (1) the definition of event parking; 
 16.19     (2) procedures and times for payment of the tax; 
 16.20     (3) procedures and times for remitting proceeds to the 
 16.21  state; 
 16.22     (4) penalty and interest provisions; 
 16.23     (5) the method of determining the cost of collection; and 
 16.24     (6) other provisions with a material effect upon revenues 
 16.25  from the tax. 
 16.26     Subd. 5.  [DISPOSITION OF PROCEEDS.] The city must pay the 
 16.27  proceeds of the tax, including interest and penalties, less the 
 16.28  reasonable cost of collection, to the commissioner of revenue 
 16.29  for deposit in the state treasury and credit to the baseball 
 16.30  stadium account in the special revenue fund. 
 16.31     Sec. 7.  [473I.09] [ADMISSION TAX; TICKET SURCHARGE.] 
 16.32     The council may by resolution impose and maintain an 
 16.33  admission tax or ticket surcharge, or both, upon the granting, 
 16.34  issuance, sale, or distribution, by any private or public 
 16.35  person, association, or corporation, of the privilege of 
 16.36  admission to activities at the baseball stadium.  No other tax, 
 17.1   surcharge, or governmental imposition, except the taxes imposed 
 17.2   by chapter 297A, may be levied by any other unit of government 
 17.3   upon that sale or distribution.  If the council imposes a ticket 
 17.4   surcharge, it must be at least $1 per ticket for the seats 
 17.5   affected.  The council may exempt sections of the baseball 
 17.6   stadium from the ticket surcharge.  The admission tax or ticket 
 17.7   surcharge must be stated and charged separately from the sales 
 17.8   price so far as practicable and must be collected by the 
 17.9   grantor, issuer, seller, or distributor from the person admitted 
 17.10  and is a debt from that person to the grantor, issuer, seller, 
 17.11  or distributor.  The tax is a debt owed by the grantor, issuer, 
 17.12  seller, or distributor to the council.  The debt is recoverable 
 17.13  at law in the same manner as other debts.  Every person who 
 17.14  grants, issues, sells, or distributes tickets for the admissions 
 17.15  may be required, as provided in resolutions of the council to 
 17.16  secure a permit, to file returns, to deposit security for the 
 17.17  payment of the tax, and to pay penalties for nonpayment and 
 17.18  interest on late payments, that are considered necessary or 
 17.19  expedient to ensure the prompt and uniform collection of the 
 17.20  tax.  Receipts from the admission tax must be credited to the 
 17.21  baseball stadium account. 
 17.22     Sec. 8.  [473I.10] [STADIUM SALES TAX.] 
 17.23     Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
 17.24  chapter 297A and in this subdivision apply to this section. 
 17.25     (b) "Stadium sales" means any transaction, including 
 17.26  transfers of tangible personal property and provision of taxable 
 17.27  services, that occurs on the premises of the baseball stadium or 
 17.28  the metrodome, as defined in section 473.551, subdivision 9.  
 17.29  This includes, but is not limited to, concession sales and 
 17.30  skybox rentals but excludes purchases by the owner, operator, or 
 17.31  a tenant of the baseball stadium. 
 17.32     Subd. 2.  [TAX IMPOSED.] The council may by resolution 
 17.33  impose a tax on stadium sales at the rate of up to 2.5 percent.  
 17.34  This tax is in lieu of all other taxes levied by any unit of 
 17.35  government on these sales, except the taxes imposed under this 
 17.36  chapter or chapter 297A.  The tax does not apply to metrodome 
 18.1   sales until the bonds issued under section 473.581 to finance 
 18.2   the metrodome have been fully paid or defeased. 
 18.3      Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 18.4   section must be collected in the manner provided for taxes 
 18.5   imposed under chapter 297A and in accordance with an agreement 
 18.6   between the council and the commissioner of revenue.  All 
 18.7   revenues, including interest and penalties, derived from the tax 
 18.8   imposed on stadium sales must be deposited in the state treasury 
 18.9   and credited to the baseball stadium account in the special 
 18.10  revenue fund. 
 18.11     Sec. 9.  [473I.11] [SPORTS MEMORABILIA TAX.] 
 18.12     The council by resolution may impose a tax on each sale at 
 18.13  wholesale of sports memorabilia in the metropolitan area.  The 
 18.14  rate of the tax is ten percent of the gross earnings from the 
 18.15  sale. 
 18.16     Sec. 10.  [473I.12] [DEFINITIONS.] 
 18.17     Subdivision 1.  [TERMS.] For purposes of sections 473I.11 
 18.18  to 473I.18, the following terms have the meanings given them. 
 18.19     Subd. 2.  [BUYER.] "Buyer" means any person that purchases 
 18.20  sports memorabilia at wholesale in the metropolitan area. 
 18.21     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 18.22  commissioner of revenue. 
 18.23     Subd. 4.  [SALE.] "Sale" means a transfer of title or 
 18.24  possession of tangible personal property, whether absolutely or 
 18.25  conditionally. 
 18.26     Subd. 5.  [SPORTS MEMORABILIA OR SPORTS LICENSED GOODS.] 
 18.27  (a) "Sports memorabilia" or "sports licensed goods" means items 
 18.28  available for sale to the public that relate to the game of 
 18.29  baseball, such as: 
 18.30     (1) one-of-a-kind items related to baseball figures, teams, 
 18.31  or events; 
 18.32     (2) baseball trading cards; 
 18.33     (3) baseball photographs; 
 18.34     (4) league and individual athlete licensed items; 
 18.35     (5) baseball event licensed items; and 
 18.36     (6) similar items. 
 19.1      (b) It does not include items licensed by: 
 19.2      (1) a sports regulating authority for the purpose of 
 19.3   proving the item meets the standards of the sport; 
 19.4      (2) an elementary, high school, college, or university or 
 19.5   an association, league, or other organization operated by, 
 19.6   organized by, comprised of such entities, or regulating 
 19.7   collegiate or high school baseball. 
 19.8      Subd. 6.  [WHOLESALE OR SALE AT WHOLESALE.] "Wholesale" or 
 19.9   "sale at wholesale" means a sale to a retailer, as defined in 
 19.10  section 297A.01, subdivision 10, for the purpose of reselling 
 19.11  the property to a third party. 
 19.12     Subd. 7.  [WHOLESALER.] "Wholesaler" means any person 
 19.13  making wholesale sales of sports memorabilia to purchasers in 
 19.14  the metropolitan area. 
 19.15     Sec. 11.  [473I.13] [COLLECTION.] 
 19.16     Subdivision 1.  [PAYMENT AND COLLECTION OBLIGATION.] The 
 19.17  buyer must pay the tax to the wholesaler and each wholesaler 
 19.18  must collect from the buyer the full amount of the tax payable 
 19.19  for each taxable sale, unless the state or federal constitution 
 19.20  prohibits the wholesaler from collecting the tax from the buyer. 
 19.21     Subd. 2.  [TAX SEPARATELY STATED.] The tax must be 
 19.22  separately stated from the selling price in any sales invoice or 
 19.23  any instrument of sale.  Failure to separately state the tax 
 19.24  creates a conclusive presumption that the tax has not been 
 19.25  collected. 
 19.26     Subd. 3.  [TAX IS IN ADDITION TO OTHERS.] The tax under 
 19.27  sections 473I.11 to 473I.18 is in addition to any other tax that 
 19.28  applies under the laws of this state. 
 19.29     Sec. 12.  [473I.14] [COMPLEMENTARY USE TAX.] 
 19.30     If the tax is not paid under section 473I.10, a tax is 
 19.31  imposed on possession for sale or use of sports memorabilia or 
 19.32  sports licensed goods in the metropolitan area.  The rate of tax 
 19.33  equals the rate under section 473I.10 and must be paid by the 
 19.34  possessor of the items. 
 19.35     Sec. 13.  [473I.15] [EXEMPTIONS.] 
 19.36     The tax imposed by sections 473I.11 to 473I.18 does not 
 20.1   apply to: 
 20.2      (1) any successive sale if the tax was previously imposed 
 20.3   and collected on the same sports memorabilia or sports licensed 
 20.4   goods; and 
 20.5      (2) any sale of sports memorabilia or sports licensed goods 
 20.6   that is transferred to a point outside of the metropolitan area 
 20.7   for sale or use outside of the metropolitan area.  
 20.8      Sec. 14.  [473I.16] [ADMINISTRATIVE PROVISIONS.] 
 20.9      Subdivision 1.  [APPLICATION OF OTHER CHAPTERS.] To the 
 20.10  extent not inconsistent with sections 473I.11 to 473I.18, the 
 20.11  enforcement, interest, and penalty provisions under chapter 294, 
 20.12  appeal provisions in sections 289A.43 and 289A.65, criminal 
 20.13  penalties in section 289A.63, refund provisions in section 
 20.14  289A.50, and collection and rulemaking provisions under chapter 
 20.15  270, apply to the tax under sections 473I.11 to 473I.18. 
 20.16     Subd. 2.  [QUARTERLY ESTIMATED PAYMENTS.] (a) Each 
 20.17  wholesaler must make estimated payments of the tax for the 
 20.18  calendar year to the commissioner in accordance with an 
 20.19  agreement between the commission and the commissioner in 
 20.20  quarterly installments by April 15, July 15, October 15, and 
 20.21  January 15 of the following calendar year. 
 20.22     (b) Estimated tax payments are not required if the tax for 
 20.23  the calendar year is less than $500. 
 20.24     (c) Underpayment of estimated installments bear interest at 
 20.25  the rate specified in section 270.75, from the due date of the 
 20.26  payment until paid or until the due date of the annual return at 
 20.27  the rate specified in section 270.75.  An underpayment of an 
 20.28  estimated installment is the difference between the amount paid 
 20.29  and the lesser of: 
 20.30     (1) 90 percent of the one-quarter of the tax for the 
 20.31  calendar year; or 
 20.32     (2) the tax for the actual gross revenues received during 
 20.33  the quarter. 
 20.34     Subd. 3.  [ELECTRONIC FUNDS-TRANSFER PAYMENTS.] A taxpayer 
 20.35  with an aggregate tax liability of $120,000 or more during a 
 20.36  fiscal year ending June 30, must remit all liabilities by funds 
 21.1   transfer as defined in section 336.4A-104, paragraph (a), in the 
 21.2   next calendar year.  The funds-transfer payment date, as defined 
 21.3   in section 336.4A-401, is on or before the date the tax is due.  
 21.4   If the date the tax is due is not a funds-transfer business day, 
 21.5   as defined in section 336.4A-105, paragraph (a), clause (4), the 
 21.6   payment date is on or before the first funds-transfer business 
 21.7   day after the date the tax is due. 
 21.8      Subd. 4.  [ANNUAL RETURN.] The taxpayer must file an annual 
 21.9   return reconciling the estimated payments by March 15 of the 
 21.10  following calendar year. 
 21.11     Subd. 5.  [FORM OF RETURNS.] The estimated payments and 
 21.12  annual return must contain the information and be in the form 
 21.13  prescribed by the commissioner. 
 21.14     Sec. 15.  [473I.17] [DISCLOSURE ON PRODUCTS.] 
 21.15     A wholesaler subject to tax under section 473I.11 must 
 21.16  apply a tag, stamp, mark, or other indicia on sports memorabilia 
 21.17  subject to the tax that states "This product was subject to the 
 21.18  special Minnesota stadium tax" or another statement to similar 
 21.19  effect. 
 21.20     Sec. 16.  [473I.18] [DISPOSITION OF REVENUES.] 
 21.21     The commissioner shall deposit all revenues, including 
 21.22  interest and penalties, derived from the tax imposed on sports 
 21.23  memorabilia and sports licensed goods under section 473I.11 in 
 21.24  the state treasury and credit them to the baseball stadium 
 21.25  account in the special revenue fund.  
 21.26     Sec. 17.  [SUNSET OF SPECIAL TAXES AND REVENUES.] 
 21.27     This article expires when all revenue bonds issued under 
 21.28  Minnesota Statutes, section 473I.05, have been defeased or 
 21.29  retired. 
 21.30     Sec. 18.  [APPLICATION.] 
 21.31     This article applies in the counties of Anoka, Carver, 
 21.32  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 21.33     Sec. 19.  [EFFECTIVE DATE.] 
 21.34     Sections 1 to 4, 6, and 8 to 16 are effective the day 
 21.35  following final enactment. 
 21.36     Section 5 is effective for taxable years beginning after 
 22.1   December 31, 1997. 
 22.2      Section 7 is effective for events occurring and for 
 22.3   admissions and sales made on or after January 1, 2001. 
 22.4                              ARTICLE 3
 22.5                 METROPOLITAN COUNCIL MEMBERS' TERMS
 22.6      Section 1.  Minnesota Statutes 1996, section 473.123, 
 22.7   subdivision 2a, is amended to read: 
 22.8      Subd. 2a.  [TERMS.] Following each apportionment of council 
 22.9   districts, as provided under subdivision 3a, council members 
 22.10  must be appointed from newly drawn districts as provided in 
 22.11  subdivision 3a.  Each council member, other than the chair, must 
 22.12  reside in the council district represented.  Each council 
 22.13  district must be represented by one member of the council.  The 
 22.14  terms of members end with the term of the governor, are as 
 22.15  follows:  members representing even-numbered districts for terms 
 22.16  ending the first Monday in January of the year ending in the 
 22.17  numeral "7"; members representing odd-numbered districts for 
 22.18  terms ending the first Monday in January of the year ending in 
 22.19  the numeral "5."  Thereafter, the term of each member is four 
 22.20  years, with terms ending the first Monday in January, except 
 22.21  that all terms expire on the effective date of the next 
 22.22  apportionment.  A member serves at the pleasure of the 
 22.23  governor.  A member shall continue to serve the member's 
 22.24  district until a successor is appointed and qualified; except 
 22.25  that, following each apportionment, the member shall continue to 
 22.26  serve at large until the governor appoints 16 council members, 
 22.27  one from each of the newly drawn council districts as provided 
 22.28  under subdivision 3a, to serve terms as provided under this 
 22.29  section.  The appointment to the council must be made by the 
 22.30  first Monday in March of the year in which the term ends.  
 22.31     Sec. 2.  [TRANSITION.] 
 22.32     Until redistricting and the appointment of metropolitan 
 22.33  council members under Minnesota Statutes, section 473.123, 
 22.34  subdivision 3a, council members' terms are as follows:  members 
 22.35  from even-numbered districts shall serve terms ending the first 
 22.36  Monday in January 2001; and members from odd-numbered districts 
 23.1   shall serve terms ending the first Monday in January 1999.  
 23.2   Thereafter, the members shall serve four-year terms. 
 23.3      Sec. 3.  [EFFECTIVE DATE; APPLICATION.] 
 23.4      This article is effective the day following final enactment 
 23.5   and applies in the counties of Anoka, Carver, Dakota, Hennepin, 
 23.6   Ramsey, Scott, and Washington.