Introduction - 94th Legislature (2025 - 2026)
Posted on 05/17/2025 12:38 p.m.
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Introduction
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Posted on 05/16/2025 |
A bill for an act
relating to local government finance; health care; allowing Hennepin County to
use a portion of tax proceeds for specified uses; establishing a directed payment
arrangement for eligible health care providers; imposing term limits on members
of the Minnesota Ballpark Authority; amending Minnesota Statutes 2024, sections
473.755, subdivision 2; 473.756, by adding a subdivision; 473.757, subdivisions
1, 2, 3, 4, 7, 8, 9, 11, by adding subdivisions; 473.759, subdivision 3; proposing
coding for new law in Minnesota Statutes, chapter 256B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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(a) For the purposes of this section, the following terms have
the meanings given them.
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(b) "Billing professionals" means physicians, nurse practitioners, nurse midwives, clinical
nurse specialists, physician assistants, anesthesiologists, and certified registered nurse
anesthetists, and may include dentists, individually enrolled dental hygienists, and dental
therapists.
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Beginning July 1,
2025, the commissioner of human services must develop and implement a voluntary program
to increase medical assistance funding for eligible providers.
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Eligible providers under this section are a private, nonprofit
adult hospital located in Hennepin County designated by the commissioner of health as a
level I trauma hospital according to section 144.605, subdivision 3, that provides ground
and air emergency medical transportation services across the state and all the hospital's
owned or affiliated physicians, ambulance services, and other billing professionals.
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(a) In developing the voluntary program, the
commissioner must create a directed payment, as allowed under Code of Federal Regulations,
title 42, section 438.6, utilizing an intergovernmental transfer, as allowed under Code of
Federal Regulations, title 42, section 433.51.
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(b) The program must supplement, and not supplant or replace, any existing medical
assistance funding provided to the hospital and any or all of its affiliated physicians,
ambulance services, and billing professionals.
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(c) Managed care plans and county-based purchasing plans must pay the directed payment
under this section to eligible providers. If, for any contract year, federal approval is not
received for this paragraph, the commissioner must adjust the capitation rates paid to managed
care plans and county-based purchasing plans for that contract year to reflect the removal
of this provision. Contracts between managed care plans and county-based purchasing plans
and providers to whom this paragraph applies must allow recovery of payments from those
providers if capitation rates are adjusted in accordance with this paragraph. Payment
recoveries must not exceed the amount equal to any increase in rates that results from this
paragraph. This paragraph expires if federal approval is not received for this paragraph at
any time.
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The directed payment arrangement must align with the
state quality goals for medical assistance patients, including those with higher levels of
social and clinical risk, people with limited English proficiency, adults with serious chronic
conditions, and individuals of color. The directed payment arrangement must maintain
quality and access to the full range of health care delivery mechanisms for these patients,
which may include behavioral health, emergent care, preventive care, hospitalization,
transportation, interpreter services, and pharmaceutical services. The commissioner, in
consultation with qualifying entities, must submit to the Centers for Medicare and Medicaid
Services a methodology to measure access to care and the achievement of state quality
goals.
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(a) Payments under this subdivision end if the funding
of the nonfederal share ends or if the ownership or corporate governance structure of the
eligible provider is sold, transferred, or otherwise changed to an entity other than Hennepin
County.
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(b) If there is a change in ownership or corporate governance structure, the eligible
provider must provide notice to the commissioner at least 90 days before the change takes
effect.
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The commissioner must implement the program beginning
the later of January 1, 2026, or upon federal approval.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.755, subdivision 2, is amended to read:
(a) The Minnesota Ballpark Authority shall be governed by a
commission consisting of:
(1) two members appointed by the governor;
(2) two members, including the chair, appointed by the county board; and
(3) one member appointed by the governing body of the city of Minneapolis.
(b) All members serve at the pleasure of the appointing authority.
(c) Compensation of members appointed under paragraph (a) is governed by section
15.0575.
(d) One member appointed under paragraph (a), clause (1), must be a resident of a county
other than Hennepin. All other members appointed under paragraph (a) must be residents
of Hennepin County.
(e) No member of the Minnesota Ballpark Authority may have served as an elected
official of the city of Minneapolis or Hennepin County for a period of two years prior to
appointment to the authority.
(f) deleted text begin The legislature intends that the ballpark be constructed to be operational for the team
and the public no later than the opening of the 2010 season. Accordingly, the appointing
authorities must make their appointments to the authority within 30 days of May 27, 2006,
and if the governing bodies of the city of Minneapolis or the county should fail to do so,
the governor may appoint an interim member to serve until the authorized appointment is
made. The first meeting of the members shall take place at the direction of the chair within
45 days of May 27, 2006. Further, the authority must proceed with due speed in all of its
official organizing activities and in making decisions with respect to the development
agreement and lease or use agreement authorized by Laws 2006, chapter 257, or any other
agreements or matters as necessary to meet the timetables set forth in Laws 2006, chapter
257.deleted text end Any three members shall constitute a quorum for the conduct of business and action
may be taken upon the vote of a majority of members present at a meeting duly called and
held.
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(g) Any member appointed after January 1, 2026, shall serve a maximum term of four
years. Members appointed as of January 1, 2026, may serve until December 31, 2029, after
which new members must be appointed in accordance with this subdivision.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.756, is amended by adding a subdivision to
read:
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The authority is deemed a qualifying government for purposes of section
118A.09, subdivision 1. Whenever the authority's investments are managed by the county,
the authority's additional long-term equity investment limitations as provided in section
118A.09, subdivision 3, are calculated based on the county's most recent audited statement
of net position instead of the authority's most recent audited statement of net position.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, subdivision 1, is amended to read:
new text begin (a) To the extent funds are available from collections
of the tax authorized by subdivision 10, and subject to the limitations of subdivision 11a,
clause (2), new text end the county may authorize, by resolution, and make one or more grants to the
authority for ballpark development and construction, public infrastructure, new text begin capital
improvements of the ballpark or public infrastructure within the development area, new text end reserves
for capital improvements, and other purposes related to the ballpark on the terms and
conditions agreed to by the county and the authority.
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(b) Payments under this subdivision terminate if the team occupying the stadium as of
January 1, 2025, terminates its lease with the Minnesota Ballpark Authority.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, subdivision 2, is amended to read:
To the extent funds are available from collections of
the tax authorized by subdivision 10 deleted text begin after payment each year of debt service on the bonds
authorized and issued under subdivision 9 and payments for the purposes described in
subdivision 1deleted text end new text begin and subject to the limitations of subdivision 11a, clause (2)new text end , the county may
deleted text begin alsodeleted text end authorize, by resolution, and expend or make grants to the authority and to other
governmental units and nonprofit organizations in an aggregate amount of up to $4,000,000
annually, increased by up to 1.5 percent annually to fund equally: (1) youth activities and
youth and amateur sports within Hennepin County; and (2) the cost of extending the hours
of operation of Hennepin County libraries and Minneapolis public libraries.
The money provided under this subdivision is intended to supplement and not supplant
county expenditures for these purposes as of May 27, 2006.
Hennepin County must provide reports to the chairs of the committees and budget
divisions in the senate and the house of representatives that have jurisdiction over education
policy and funding, describing the uses of the money provided under this subdivision. The
first report must be made by January 15, 2009, and subsequent reports must be made on
January 15 of each subsequent odd-numbered year.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, is amended by adding a subdivision to
read:
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The county must authorize, by
resolution, and expend $5,000,000 annually for grants to county human services programs
related to new or existing homeless prevention and assistance projects or programs.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, is amended by adding a subdivision to
read:
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(a) To the extent money is available from
collections of the tax authorized by subdivision 10 the county may make grants to the
authority for capital improvement expenditures. The amount of any grant to the authority
for capital improvement expenditures must be in accordance with the limitations under
subdivision 11a, clause (2). The grants are subject to agreement under section 473.759,
subdivision 3, and to annual increases according to an inflation index acceptable to the
county. Grant agreements are valid and enforceable notwithstanding the fact that they involve
payments in future years. The grants do not constitute a debt of the county within the meaning
of any constitutional or statutory limitation or for which a referendum is required.
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(b) Payments under this subdivision terminate if the team occupying the stadium as of
January 1, 2025, terminates its lease with the Minnesota Ballpark Authority.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, is amended by adding a subdivision to
read:
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(a) The county may authorize grants
by resolution. The county may resolve to make one or more grants to fund:
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(1) the development, construction, improvement, and equipping of county-owned or
operated health care facilities;
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(2) public infrastructure determined by the county to facilitate the development and use
of facilities described in clause (1);
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(3) reserves for capital improvements;
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(4) uncompensated or undercompensated care; and
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(5) other purposes related to health care facilities.
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(b) The money authorized under paragraph (a) must be distributed as follows for the
purposes described in paragraph (a):
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(1) 50 percent to county-owned or operated facilities; and
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(2) 50 percent to the level I trauma center operated by North Memorial Health System
within the county, subject to the execution of a grant agreement approved by the county.
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(c) The county must not authorize the proceeds of the tax to be distributed pursuant to
paragraph (b), clause (2), if the ownership or corporate governance structure of the level I
trauma center operated by North Memorial Health System as of July 1, 2025, is thereafter
sold, transferred, or otherwise changed to an entity other than Hennepin County.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, subdivision 3, is amended to read:
The amount that the county may grant or expend for
ballpark costs shall not exceed $260,000,000. The amount of any grant for capital
improvement reserves shall not exceed $1,000,000 annually, subject to the agreement under
section 473.759, subdivision 3, and to annual increases according to an inflation index
acceptable to the countynew text begin , not to exceed the limitations under subdivision 11a, clause (2)new text end .
The amount of grants or expenditures for land, site improvements, and public infrastructure
shall not exceed $90,000,000, excluding capital improvement reserves, bond reserves,
capitalized interest, and financing costs. The authority to spend money for land, site
improvements, and public infrastructure is limited to payment of amounts incurred or for
construction contracts entered into during the period ending five years after the date of the
issuance of the initial series of bonds under Laws 2006, chapter 257. Such grant agreements
are valid and enforceable notwithstanding that they involve payments in future years and
they do not constitute a debt of the county within the meaning of any constitutional or
statutory limitation or for which a referendum is required.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, subdivision 4, is amended to read:
new text begin (a) new text end The county may acquire by purchase,
eminent domain, or gift, land, air rights, and other property interests within the development
area for the ballpark site and public infrastructure and convey it to the authority with or
without consideration, prepare a site for development as a ballpark, and acquire and construct
any related public infrastructure. The purchase of property and development of public
infrastructure financed with revenues under this section is limited to infrastructure within
the development area or within 1,000 feet of the border of the development area. The public
infrastructure may include the construction and operation of parking facilities within the
development area notwithstanding any law imposing limits on county parking facilities in
the city of Minneapolis. The county may acquire and construct property, facilities, and
improvements within the stated geographical limits for the purpose of drainage and
environmental remediation for property within the development area, walkways and a
pedestrian bridge to link the ballpark to Third Avenue distributor ramps, street and road
improvements and access easements for the purpose of providing access to the ballpark,
streetscapes, connections to transit facilities and bicycle trails, and any utility modifications
which are incidental to any utility modifications within the development area.
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(b) The county or any of its subsidiaries may acquire by purchase, eminent domain, or
gift, land, air rights, and other property interests within the county for health care facilities
and related infrastructure.
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new text begin (c) new text end To the extent property parcels or interests acquired are more extensive than the public
infrastructure requirements, the county may sell or otherwise dispose of the excess. The
proceeds from sales of excess property must be deposited in the debt service reserve fund.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, subdivision 7, is amended to read:
The county may make expenditures or grants
for other costs incidental and necessary to further the purposes of Laws 2006, chapter 257,new text begin
and this actnew text end and may by agreement, reimburse in whole or in part, any entity that has granted,
loaned, or advanced funds to the county to further the purposes of Laws 2006, chapter 257new text begin ,
and this actnew text end . The county shall reimburse a local governmental entity within its jurisdiction
or make a grant to such a governmental unit for site acquisition, preparation of the site for
ballpark development, and public infrastructure. Amounts expended by a local governmental
unit with the proceeds of a grant or under an agreement that provides for reimbursement by
the county shall not be deemed an expenditure or other use of local governmental resources
by the governmental unit within the meaning of any law or charter limitation. Exercise by
the county of its powers under this section shall not affect the amounts that the county is
otherwise eligible to spend, borrow, tax, or receive under any law.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, subdivision 8, is amended to read:
It is the intent of the legislature that, except as expressly
limited herein, the county has the authority to acquire and develop a site for the ballpark
and public infrastructure, to enter into contracts with the authority and other governmental
or nongovernmental entities, to appropriate funds, new text begin to fund capital reserves and make capital
improvements, new text end and to make employees, consultants, and other revenues available for those
purposes.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, subdivision 9, is amended to read:
new text begin (a) new text end The county may, by resolution, authorize, sell, and
issue revenue bonds to provide funds to make a grant or grants to the authority and to finance
all or a portion of the costs of site acquisition, site improvements, and other activities
necessary to prepare a site for development of a ballpark, to construct, improve, and maintain
the ballpark and to establish and fund any capital improvement reserves, and to acquire and
construct any related parking facilities and other public infrastructure and for other costs
incidental and necessary to further the purposes of Laws 2006, chapter 257. The county
may also, by resolution, issue bonds to refund the bonds issued pursuant to this section. The
bonds must be limited obligations, payable solely from or secured by taxes levied under
subdivision 10, and any other revenues to become available under Laws 2006, chapter 257.
The bonds may be issued in one or more series and sold without an election. The bonds
shall be sold in the manner provided by section 475.60. The bonds shall be secured, bear
the interest rate or rates or a variable rate, have the rank or priority, be executed in the
manner, be payable in the manner, mature, and be subject to the defaults, redemptions,
repurchases, tender options, or other terms, as the county may determine. The county may
enter into and perform all contracts deemed necessary or desirable by it to issue and secure
the bonds, including an indenture of trust with a trustee within or without the state. The debt
represented by the bonds shall not be included in computing any debt limitation applicable
to the county. Subject to this subdivision, the bonds must be issued and sold in the manner
provided in chapter 475. The bonds shall recite that they are issued under Laws 2006, chapter
257, and the recital shall be conclusive as to the validity of the bonds and the imposition
and pledge of the taxes levied for their payment. In anticipation of the issuance of the bonds
authorized under this subdivision and the collection of taxes levied under subdivision 10,
the county may provide funds for the purposes authorized by Laws 2006, chapter 257,
through temporary interfund loans from other available funds of the county which shall be
repaid with interest.
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(b) The county may, by resolution, authorize, sell, and issue revenue bonds to provide
money to finance all or a portion of the costs of county-owned or -operated health care
facilities. Authorized uses of bond proceeds include but are not limited to: site acquisition,
site improvements, and other activities necessary to prepare a site for development of health
care facilities; construction, maintenance, and improvement of health care facilities;
establishment and funding of any capital improvement reserves; acquisition and construction
of any related parking facilities and infrastructure; and other costs incidental and necessary
to further the purposes of this act. The county may also, by resolution, issue bonds to refund
the bonds issued pursuant to this section. The bonds may be limited obligations, payable
solely from or secured by taxes levied under subdivision 10 and any other revenues made
available under this act. The county may also pledge its full faith, credit, and taxing power
as additional security for the bonds. The bonds may be issued in one or more series and
sold without an election. The bonds shall be sold in the manner provided by section 475.60.
The bonds shall be secured, bear the interest rate or rates or a variable rate, have the rank
or priority, be executed in the manner, be payable in the manner, mature, and be subject to
the defaults, redemptions, repurchases, tender options, or other terms, as the county may
determine. The county may enter into and perform all contracts deemed necessary or desirable
to issue and secure the bonds, including an indenture of trust with a trustee within or outside
of the state. The debt represented by the bonds must not be included in computing any debt
limitation applicable to the county. Subject to this subdivision, the bonds must be issued
and sold in the manner provided in chapter 475. The bonds must recite that they are issued
under this act, and the recital is conclusive as to the validity of the bonds and the imposition
and pledge of the taxes levied for their payment. In anticipation of the issuance of the bonds
authorized under this subdivision and the collection of taxes levied under subdivision 10,
the county may provide money for the purposes authorized by this act, through temporary
interfund loans from other available county money which must be repaid with interest.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, subdivision 11, is amended to read:
(a) Revenues received from the tax imposed under subdivision
10 may be usednew text begin for the following and for no other purposenew text end :
(1) to pay costs of collection;
(2) to pay or reimburse or secure the payment of any principal of, premium, or interest
on bonds issued in accordance with Laws 2006, chapter 257, section 12;
(3) to pay costs and make expenditures and grants described in deleted text begin this sectiondeleted text end new text begin subdivisions
1 and 2bnew text end , including financing costs related to them;
(4) to maintain reserves for the foregoing purposes deemed reasonable and appropriate
by the county;
(5) to pay for operating costs of the ballpark authority other than the cost of operating
or maintaining the ballpark; deleted text begin and
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(6) to make expenditures and grants for youth activities and amateur sports and extension
of library hours as described in subdivision 2;
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(7) to fund new or existing homeless prevention and assistance projects or programs as
described in subdivision 2a; and
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(8) to make expenditures and grants to county health care facilities as described in
subdivision 2c.
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and for no other purpose.
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(b) Revenues must be distributed in accordance with subdivision 11a.
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deleted text begin (b)deleted text end new text begin (c)new text end Revenues from the tax designated for use under paragraph (a), clause (5), must
be deposited in the operating fund of the ballpark authority.
deleted text begin (c)deleted text end new text begin (d)new text end After completion of the ballpark and public infrastructure, the tax revenues not
required for current payments of the expenditures described in paragraph (a), clauses (1) to
(6), shall be used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for
payment of future obligations under grants or other commitments for future expenditures
which are permitted by this section. Upon the redemption or defeasance of the bonds and
the establishment of reserves adequate to meet such future obligations, the taxes shall
deleted text begin terminate and shall not be reimposeddeleted text end new text begin be used for the purposes specified in paragraph (a),
clauses (3) to (8)new text end . For purposes of this subdivision, "reserves adequate to meet such future
obligations" means a reserve that does not exceed the net present value of the county's
obligation to make grants under paragraph (a), clauses (5) and (6), and to fund the reserve
for capital improvements required under section 473.759, subdivision 3, for new text begin the later of:
new text end
new text begin (1) new text end the 30-year period beginning on the date of the original issuance of thenew text begin latest-issued
series ofnew text end bondsnew text begin issued pursuant to subdivision 9new text end , less those obligations that the county has
already paidnew text begin ; or
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new text begin (2) the period extending through the final terms of the agreement in section 473.759,
subdivision 4, as the agreement may be modified or extended from time to timenew text end .
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.757, is amended by adding a subdivision
to read:
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The county must allocate the revenue generated
under subdivision 10 for the purposes listed below in priority order:
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(1) $5,000,000 annually for county human services payments required under subdivision
2a;
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(2) of the remaining funds, up to the lesser of 20 percent or $10,000,000 must be used
by the county:
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(i) for grants for youth sports and libraries under subdivision 2;
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(ii) for capital improvement grants under subdivisions 1 and 2b; and
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(iii) to fund capital reserves under section 473.759, subdivision 3; and
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(3) the remainder of funds must be used for county health care facilities for the purposes
required under subdivision 2c.
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This section is effective the day following final enactment.
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Minnesota Statutes 2024, section 473.759, subdivision 3, is amended to read:
The authority shall require that a reserve
fund for capital improvements to the ballpark be established and funded with annual payments
of deleted text begin $2,000,000deleted text end new text begin $9,000,000new text end , with the team's share of those payments to be approximately
deleted text begin $1,000,000deleted text end new text begin $5,400,000new text end , as determined by agreement of the team and county. The annual
payments shall increase according to an inflation index determined by the deleted text begin authority, provided
that any portion of the team's contribution that has already been reduced to present value
shall not increase according to an inflation indexdeleted text end new text begin county, but not to exceed the limitations
imposed by section 473.757, subdivision 11a, clause (2)new text end . The authority may accept
contributions from the county or other source for the portion of the funding not required to
be provided by the team.
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The commissioner of human services must seek federal approval to establish a directed
payment arrangement as provided under Minnesota Statutes, section 256B.1975.
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This section is effective the day following final enactment.
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