1.1                          A bill for an act 
  1.2             relating to the city of St. Paul; requiring the 
  1.3             expenditure of certain revenues from the city's sales 
  1.4             tax for cultural organizations; amending Laws 1993, 
  1.5             chapter 375, article 9, section 46, subdivision 2, as 
  1.6             amended. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1993, chapter 375, article 9, section 46, 
  1.9   subdivision 2, as amended by Laws 1997, chapter 231, article 7, 
  1.10  section 40, and Laws 1998, chapter 389, article 8, section 30, 
  1.11  is amended to read: 
  1.12     Subd. 2.  [USE OF REVENUES.] Revenues received from the tax 
  1.13  authorized by subdivision 1 may only be used by the city to pay 
  1.14  the cost of collecting the tax, and to pay for the following 
  1.15  projects or to secure or pay any principal, premium, or interest 
  1.16  on bonds issued in accordance with subdivision 3 for the 
  1.17  following projects.  
  1.18     (a) To pay all or a portion of the capital expenses of 
  1.19  construction, equipment and acquisition costs for the expansion 
  1.20  and remodeling of the St. Paul Civic Center complex, including 
  1.21  the demolition of the existing arena and the construction and 
  1.22  equipping of a new arena. 
  1.23     (b) The remainder of the funds must be spent for: 
  1.24     (1) capital projects to further residential, cultural, 
  1.25  commercial, and economic development in both downtown St. Paul 
  1.26  and St. Paul neighborhoods.  The amount apportioned under this 
  2.1   paragraph shall be no less than 60 percent of the revenues 
  2.2   derived from the tax each year, except to the extent that a 
  2.3   portion of that amount is required to pay debt service on (1) 
  2.4   bonds issued for the purposes of paragraph (a) prior to March 1, 
  2.5   1998; or (2) bonds issued for the purposes of paragraph (a) 
  2.6   after March 1, 1998, but only if the city council determines 
  2.7   that 40 percent of the revenues derived from the tax together 
  2.8   with other revenues pledged to the payment of the bonds, 
  2.9   including the proceeds of definitive bonds, is expected to 
  2.10  exceed the annual debt service on the bonds; and 
  2.11     (2) the operating expenses of cultural organizations in the 
  2.12  city, provided that the amount spent under this clause may not 
  2.13  exceed must equal ten percent of the total amount spent under 
  2.14  this paragraph in any year.  
  2.15     (c) The amount apportioned under paragraph (b) shall be no 
  2.16  less than 60 percent of the revenues derived from the tax each 
  2.17  year, except to the extent that a portion of that amount is 
  2.18  required to pay debt service on (1) bonds issued for the 
  2.19  purposes of paragraph (a) prior to March 1, 1998; or (2) bonds 
  2.20  issued for the purposes of paragraph (a) after March 1, 1998, 
  2.21  but only if the city council determines that 40 percent of the 
  2.22  revenues derived from the tax together with other revenues 
  2.23  pledged to the payment of the bonds, including the proceeds of 
  2.24  definitive bonds, is expected to exceed the annual debt service 
  2.25  on the bonds. 
  2.26     (d) If in any year more than 40 percent of the revenue 
  2.27  derived from the tax authorized by subdivision 1 is used to pay 
  2.28  debt service on the bonds issued for the purposes of paragraph 
  2.29  (a) and to fund a reserve for the bonds, the amount of the debt 
  2.30  service payment that exceeds 40 percent of the revenue must be 
  2.31  determined for that year.  In any year when 40 percent of the 
  2.32  revenue produced by the sales tax exceeds the amount required to 
  2.33  pay debt service on the bonds and to fund a reserve for the 
  2.34  bonds under paragraph (a), the amount of the excess must be made 
  2.35  available for capital projects to further residential, cultural, 
  2.36  commercial, and economic development in the neighborhoods and 
  3.1   downtown until the cumulative amounts determined for all years 
  3.2   under the preceding sentence have been made available under this 
  3.3   sentence.  The amount made available as reimbursement in the 
  3.4   preceding sentence is not included in the 60 percent determined 
  3.5   under paragraph (b) (c). 
  3.6      (d) (e) By January 15 of each odd-numbered year, the mayor 
  3.7   and the city council must report to the legislature on the use 
  3.8   of sales tax revenues during the preceding two-year period. 
  3.9      <b>[EFFECTIVE DATE.]</b> This section is effective for 
  3.10  distributions after April 30, 2003.