HF 4841

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/09/2026 04:55 p.m.

A bill for an act
relating to taxation; modifying authority related to the Hennepin County local sales
tax; providing for grants to county health care facilities and to the ballpark authority
for certain improvements; amending Minnesota Statutes 2024, sections 473.756,
by adding a subdivision; 473.757, subdivisions 1, 3, 4, 7, 8, 9, 10, 11, by adding
subdivisions; 473.759, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 473.756, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Qualifying government. new text end

new text begin The authority is 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.
new text end

Sec. 2.

Minnesota Statutes 2024, section 473.757, subdivision 1, is amended to read:

Subdivision 1.

Ballpark grants.

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 improvement 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 new text begin , subject to
any applicable limits in subdivision 3a new text end .

Sec. 3.

Minnesota Statutes 2024, section 473.757, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Hennepin County health care facilities. new text end

new text begin To the extent money is available
from collections of the tax authorized by subdivision 10 after payment each year of debt
service on the bonds authorized and issued under subdivision 9 and payments for the purposes
described in subdivisions 1 and 2:
new text end

new text begin (1) the county may, subject to a grant agreement, distribute money according to the
formula in items (i) to (viii), up to $24,000,000 annually, subject to annual increases in
percentages acceptable to the county, to a private, nonprofit hospital located in Hennepin
County that is designated by the commissioner of health as a level I trauma hospital according
to section 144.605, subdivision 3, and provides statewide ground and air emergency medical
transportation services. The money must be used to fund uncompensated care provided in
facilities owned or operated by the eligible private, nonprofit hospital:
new text end

new text begin (i) uncompensated care charges of the eligible private, nonprofit hospital means the total
of all bad debt and charity care as determined by generally accepted accounting principles.
Uncompensated care charges do not include (A) payment for an episode of care for which
the eligible private, nonprofit hospital has been paid the lesser of a negotiated rate with the
patient's third-party payer or the medical assistance reimbursement rate as defined in item
(iii), or (B) the benchmark amount as defined in item (ii). For the purposes of this item, bad
debts derived from individuals who the eligible private, nonprofit hospital has reasonable
evidence that the individuals' income level exceeds 300 percent of federal poverty levels
are excluded;
new text end

new text begin (ii) the county must not provide payment to the eligible private, nonprofit hospital until
the aggregate amount of uncompensated care provided by the eligible private, nonprofit
hospital during a fiscal year exceeds the benchmark. The benchmark is the amount equal
to the average percent of gross revenues of uncompensated care for hospitals located in
Hennepin County as computed from the most recent data available from the Minnesota
Hospital Association;
new text end

new text begin (iii) the average medical assistance reimbursement rate must include the base payment
rate and any payments due by the eligible private, nonprofit hospital for services provided
in 2017 from upper payment limits and medical education payments;
new text end

new text begin (iv) the eligible private, nonprofit hospital must follow customary, lawful standard
hospital debt collection practices with respect to any amount owed as uncompensated care;
new text end

new text begin (v) the county must provide its uncompensated care subsidy only for the estimated cost
of care provided to Hennepin County residents. The residency status of patients must be
determined as of the date of service;
new text end

new text begin (vi) the eligible private, nonprofit hospital must not include Medicare bad debt claimed
on the hospital's Medicare cost report for that year in the calculation of this formula;
new text end

new text begin (vii) the eligible private, nonprofit hospital must also include its estimate of the cumulative
Medicare disproportionate share hospital reduction the hospital has incurred as a result of
the Affordable Care Act beginning in 2014. This amount must be added to the amount
calculated for uncompensated care; and
new text end

new text begin (viii) the eligible private, nonprofit hospital must determine if it has been paid any grant
money from the annual allotment from the state for the provision of care to emergency
medical assistance patients. Any receipts for this care that was previously counted as
uncompensated care must be used to reduce the total payment from the county;
new text end

new text begin (2) the county need not distribute money to the private, nonprofit hospital identified in
clause (1) if the ownership, corporate governance structure, or majority control of a hospital
operated by the private, nonprofit hospital is sold or transferred to an entity that is organized
for profit. The private, nonprofit hospital must provide notice to the county of a sale or
transfer described in this clause at least 90 days in advance of the sale or transfer; and
new text end

new text begin (3) the county may authorize from the remainder of the money available, by resolution,
appropriations to fund:
new text end

new text begin (i) the development, construction, improvement, and equipping of county-owned or
county-operated health care facilities;
new text end

new text begin (ii) public infrastructure determined by the county to facilitate the development and use
of facilities described in item (i);
new text end

new text begin (iii) reserves for county-owned or county-operated health care facilities capital
improvements;
new text end

new text begin (iv) uncompensated care provided in county-owned or county-operated health care
facilities;
new text end

new text begin (v) other purposes related to county-owned or county-operated health care facilities,
including operating expenses for county-owned or county-operated health care facilities;
new text end

new text begin (vi) other purposes related to county public health services or priorities; and
new text end

new text begin (vii) other county-identified services or programs, including low-barrier housing, that
address health-related social needs.
new text end

Sec. 4.

Minnesota Statutes 2024, section 473.757, subdivision 3, is amended to read:

Subd. 3.

Expenditure limitations.

The amount that the county may grant or expend for
ballpark costs shall not exceed $260,000,000. deleted text begin 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 county. deleted 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.

Sec. 5.

Minnesota Statutes 2024, section 473.757, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Capital improvement grants. new text end

new text begin Notwithstanding the limitations in subdivision
3, the county may make grants to the authority for capital improvement expenditures for
purposes permitted under subdivision 1. The amount of any grant to the authority for capital
improvement expenditures must not exceed $7,000,000 annually. 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 grant agreements 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.
new text end

Sec. 6.

Minnesota Statutes 2024, section 473.757, subdivision 4, is amended to read:

Subd. 4.

Property acquisition and disposition.

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.

new text begin (b) The county or any of its subsidiaries may acquire by purchase, eminent domain, or
gift the land rights, air rights, and other property interests within the county for health care
facilities and related infrastructure.
new text end

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.

Sec. 7.

Minnesota Statutes 2024, section 473.757, subdivision 7, is amended to read:

Subd. 7.

Local government expenditures.

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 act new 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 257 new text begin ,
and this act new 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.

Sec. 8.

Minnesota Statutes 2024, section 473.757, subdivision 8, is amended to read:

Subd. 8.

County authority.

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.

Sec. 9.

Minnesota Statutes 2024, section 473.757, subdivision 9, is amended to read:

Subd. 9.

County revenue bonds.

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.

new text begin (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 county-operated health
care facilities, including but not limited to site acquisition, site improvements, and other
activities necessary to prepare a site for development of health care facilities and to construct,
maintain, and improve health care facilities; establishing and funding any capital
improvement reserves; acquiring and constructing any related parking facilities and related
infrastructure; and for 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, and 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 must 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.
new text end

Sec. 10.

Minnesota Statutes 2024, section 473.757, subdivision 10, is amended to read:

Subd. 10.

Sales and use tax.

(a) Notwithstanding section 477A.016, or other law, the
governing body of the county may by ordinance, impose a sales and use tax at the rate of
deleted text begin 0.15 deleted text end new text begin 1.0 new text end percent for the purposes listed in this section. The taxes authorized under this
section and the manner in which they are imposed are exempt from the rules of section
297A.99, subdivisions 2 and 3. The provisions of section 297A.99, except for subdivisions
2 and 3, apply to the imposition, administration, collection, and enforcement of this tax.

(b) The tax imposed under this section is not included in determining if the total tax on
lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
12, section 87, or in determining a tax that may be imposed under any other limitations.

Sec. 11.

Minnesota Statutes 2024, section 473.757, subdivision 11, is amended to read:

Subd. 11.

Uses of tax.

(a) Revenues received from the tax imposed under subdivision
10 may be used new text begin for the following and for no other purpose new 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 new text begin , and this act new text end ;

deleted text begin (3) to pay costs and make expenditures and grants described in this section, including
financing costs related to them;
deleted text end

deleted text begin (4) deleted text end new text begin (3) new text end to maintain reserves for the foregoing purposes deemed reasonable and appropriate
by the county;

deleted text begin (5) deleted text end new text begin (4) new text end to pay for operating costs of the ballpark authority other than the cost of operating
or maintaining the ballpark; deleted text begin and
deleted text end

deleted text begin (6) deleted text end new text begin (5) new text end to make expenditures and grants for youth activities and amateur sports and
extension of library hours as described in subdivision 2;

deleted text begin and for no other purpose.
deleted text end

new text begin (6) to make expenditures and grants for Hennepin County health care facilities as
described in subdivision 2a, including financing costs related to them;
new text end

new text begin (7) to make grants to the authority for capital improvement expenditures as authorized
by subdivision 3a and for purposes permitted under subdivision 1; and
new text end

new text begin (8) to pay costs and make expenditures and grants for any other purpose described in
this section, including financing costs related to them.
new text end

(b) Revenues from the tax designated for use under paragraph (a), clause (5), must be
deposited in the operating fund of the ballpark authority.

(c) 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
deleted text begin (6) deleted text end new text begin (8) new text end , shall be used to deleted text begin (i) deleted text end new text begin (1) new text end redeem or defease the bonds new text begin , new text end and deleted text begin (ii) deleted text end new text begin (2) new text end prepay or establish
a fund for deleted text begin 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 terminate and shall not be reimposed deleted text end new text begin reserves adequate to meet such future
obligations 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 deleted text begin (5) deleted text end new text begin (4) new text end and deleted text begin (6) deleted text end new text begin (5) new text end , and to fund the
reserve for capital improvements required under section 473.759, subdivision 3, for new text begin the later
of (i) new text end the 30-year period beginning on the date of the original issuance of the new text begin latest-issued
series of new text end bonds new text begin issued pursuant to subdivision 9 new text end , less those obligations that the county has
already paid new text begin , or (ii) the period extending through the final term of the agreement in section
473.759, subdivision 4, as the agreement may be modified or extended from time to time new text end .

Sec. 12.

Minnesota Statutes 2024, section 473.759, subdivision 3, is amended to read:

Subd. 3.

Reserve for capital improvements.

The authority shall require that a reserve
fund for capital improvements to the ballpark new text begin and public infrastructure within the
development area new text end be established and funded with annual payments of deleted text begin $2,000,000 deleted text end new text begin
$14,000,000 new text end , with the team's share of those payments to be approximately deleted text begin $1,000,000 deleted text end new text begin
$7,000,000 new 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 index deleted text end new text begin county 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.

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 12 are effective the day following final enactment.
new text end