HF 1367

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to sports; providing for a process to 
  1.3             construct, fund, maintain, and govern a major league 
  1.4             baseball-only facility; providing for powers and 
  1.5             duties of the governing entity; authorizing certain 
  1.6             taxes, revenue distributions, bonds and other debt 
  1.7             obligations, and allocations; appropriating money; 
  1.8             amending Minnesota Statutes 1996, sections 290.06, by 
  1.9             adding a subdivision; 290.62; 297A.01, subdivision 3, 
  1.10            and by adding a subdivision; 297A.02, by adding a 
  1.11            subdivision; 297A.44, subdivision 1; 349A.10, by 
  1.12            adding a subdivision; proposing coding for new law in 
  1.13            Minnesota Statutes, chapter 295; proposing coding for 
  1.14            new law as Minnesota Statutes, chapter 473I. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16                             ARTICLE 1 
  1.17     Section 1.  [473I.01] [LEGISLATIVE POLICY; PURPOSE.] 
  1.18     The legislature finds that: 
  1.19     (a) Obtaining and securing the retention and location of 
  1.20  professional major league sports teams in the state and within 
  1.21  the metropolitan area has and will provide economic development, 
  1.22  attract and secure additional employment, maintain and enhance 
  1.23  the tax base upon which the state and its political subdivisions 
  1.24  depend for the financing of other governmental functions, and 
  1.25  provide important social, entertainment, recreational, and 
  1.26  tourism opportunities for the state and its citizens. 
  1.27     (b) The metropolitan council and the metropolitan sports 
  1.28  facilities commission, in providing for the construction and 
  1.29  ownership of the Hubert H. Humphrey Metrodome, and the city of 
  1.30  Minneapolis in providing for the purchase and ownership of the 
  2.1   Target Center, have and will serve and achieve the foregoing 
  2.2   public purposes by promoting major league baseball, football, 
  2.3   and basketball games in the state and within the metropolitan 
  2.4   area. 
  2.5      (c) The retention of major league professional baseball and 
  2.6   the construction of an additional baseball facility in the state 
  2.7   and within the metropolitan area, by reasonable methods that the 
  2.8   legislature and the public authority may devise to further 
  2.9   secure and promote these public purposes, will increase and 
  2.10  enhance the value and public benefits afforded to the state and 
  2.11  its citizens. 
  2.12     Sec. 2.  [473I.02] [DEFINITIONS.] 
  2.13     Subdivision 1.  [APPLICATION; ADOPTED BY REFERENCE.] The 
  2.14  definitions in this section and in sections 473.121 and 473.551, 
  2.15  apply in this act. 
  2.16     Subd. 2.  [BASEBALL FACILITY DEFINED AND 
  2.17  DESCRIBED.] "Baseball facility" means an open-air ball park 
  2.18  designed for baseball only, that is suitable for major league 
  2.19  baseball and no other major league spectator sport that uses a 
  2.20  surface or seating configuration different from major league 
  2.21  baseball, and that is the major capital improvement resulting 
  2.22  from the project described in this act.  The baseball facility 
  2.23  must have a convertible roof that promotes the historic 
  2.24  amenities of an open-air baseball park when weather permits and 
  2.25  a comfortable environment for performers and patrons when 
  2.26  uncomfortable weather is present or anticipated.  The baseball 
  2.27  facility may include parking or other transit facilities for 
  2.28  patrons, performers, and employees and may include other 
  2.29  amenities to enhance or make the use of the baseball facility 
  2.30  convenient and predictably accessible to all Minnesotans and 
  2.31  others.  
  2.32     Subd. 3.  [THE PUBLIC AUTHORITY.] "The public authority" 
  2.33  means the metropolitan sports facilities commission or its 
  2.34  successor organization. 
  2.35     Subd. 4.  [PROJECT.] "Project" means the entire process 
  2.36  from inviting proposals for sites to completion of the baseball 
  3.1   facility and all amenities related to construction of the 
  3.2   baseball facility. 
  3.3      Subd. 5.  [CITY.] "City" means the city of Minneapolis. 
  3.4      Subd. 6.  [TEAM.] "Team" means the professional major 
  3.5   league baseball team. 
  3.6      Subd. 7.  [OWNER.] "Owner" means the individual or 
  3.7   individuals acting in concert, or other legal entity, who 
  3.8   directly or indirectly own at least a majority or controlling 
  3.9   interest in the team. 
  3.10     Subd. 8.  [NET OPERATING PROFITS.] "Net operating profits" 
  3.11  means the gross revenues remaining after payment under section 
  3.12  473I.10, subdivision 2, clauses (1), (2), and (3). 
  3.13     Subd. 9.  [GROSS REVENUES OF THE TEAM.] "Gross revenues of 
  3.14  the team" means all revenues of the team from whatever source, 
  3.15  but not any admissions tax or ticket surcharge revenues. 
  3.16     Sec. 3.  [473I.03] [POWERS AND DUTIES.] 
  3.17     Subdivision 1.  [SCOPE.] The public authority has all 
  3.18  powers necessary or convenient to discharge the duties imposed 
  3.19  on it by law, including, but not limited to, those specified in 
  3.20  this act, in sections 473.551 to 473.599, and in other law. 
  3.21     Subd. 2.  [USE JOINT POWERS.] The public authority may 
  3.22  jointly or cooperatively exercise powers under section 471.59, 
  3.23  according to the terms of that section, with any other 
  3.24  governmental unit that may make use of section 471.59 with 
  3.25  another entity. 
  3.26     Subd. 3.  [SITE; BASEBALL FACILITY.] (a) The public 
  3.27  authority and the owner, by mutual agreement, must select a site 
  3.28  for the baseball facility in the city.  The process to select 
  3.29  the site must include a procedure to set minimum specifications 
  3.30  for the site, including necessary or desirable appropriate 
  3.31  economic development possibilities on adjacent property.  The 
  3.32  process must consider the use of incremental revenue to public 
  3.33  entities, as a result of or in anticipation of the project, as 
  3.34  revenue sources for the funding of the project. 
  3.35     (b) The public authority and the owner, by mutual 
  3.36  agreement, must determine the program elements of the baseball 
  4.1   facility, including, but not limited to, capacity, suites, club 
  4.2   seats, clubs, and amenities.  The public authority and the 
  4.3   owner, by mutual agreement, must also determine the baseball 
  4.4   facility design and the selection of the project construction 
  4.5   team, including the architect and general contractor. 
  4.6      Subd. 4.  [NEGOTIATIONS.] The public authority must 
  4.7   negotiate with the city or other governmental units to receive 
  4.8   some or all incremental revenue of whatever kind that flows to 
  4.9   the city or other local government units directly or indirectly 
  4.10  as a result of or in anticipation of the operation of the 
  4.11  baseball facility.  Revenue sources may include, but are not 
  4.12  limited to, transactions involving beverage sales, 
  4.13  entertainment, hotel occupancy, and parking.  The public 
  4.14  authority must also negotiate with appropriate governmental 
  4.15  entities, including the city, for necessary or appropriate 
  4.16  infrastructure to support the existence and operation of the 
  4.17  baseball facility, the movement of patrons to and from the 
  4.18  baseball facility, and their comfort, safety, and convenience 
  4.19  while in and around the baseball facility. 
  4.20     Subd. 5.  [ACQUIRE SITE; EMINENT DOMAIN.] The public 
  4.21  authority may acquire by lease, purchase, gift, or devise all 
  4.22  necessary right, title, and interest in and to real or personal 
  4.23  property deemed necessary to the purposes of this chapter.  The 
  4.24  public authority may exercise the right of eminent domain under 
  4.25  this act and chapter 117 to acquire a site for the baseball 
  4.26  facility.  The obligation of the public authority for the taking 
  4.27  is limited to what is compensable under the Minnesota and 
  4.28  federal constitutions and only to what is constitutionally 
  4.29  required to be paid.  If the public authority determines that 
  4.30  the amount of compensation required to be paid is excessive, the 
  4.31  public authority may abandon the condemnation process in whole 
  4.32  or in part. 
  4.33     Subd. 6.  [INTERGOVERNMENTAL FRANCHISE COMPETITION.] The 
  4.34  public authority may cooperate and contract with other political 
  4.35  entities in the United States, with which it may compete for 
  4.36  sports, exposition, and entertainment franchises and facilities 
  5.1   to form an entity to lobby the United States Congress to enact 
  5.2   legislation to prevent artificial competition among governmental 
  5.3   entities for sports, exposition, and entertainment franchises 
  5.4   and facilities. 
  5.5      Subd. 7.  [REVENUE BONDS.] (a) The metropolitan council may 
  5.6   issue and sell up to $25,000,000 of revenue bonds for site 
  5.7   assembly.  The bonds must be issued, sold, and secured in the 
  5.8   manner provided in chapter 475, for bonds payable solely from 
  5.9   revenues, and the metropolitan council has the same powers and 
  5.10  duties as a municipality and a municipality's governing body in 
  5.11  issuing bonds under chapter 475.  The metropolitan council may 
  5.12  pledge for the payment of the principal and interest on the 
  5.13  bonds the revenues from the taxes and fees authorized in 
  5.14  sections 473I.04 and 473I.06, net of expenses of collection and 
  5.15  administration.  The bonds may be sold at any price and at 
  5.16  public or private sale as determined by the metropolitan council.
  5.17  The bonds are payable solely from revenues of the baseball 
  5.18  facility and are not a general obligation or debt of the 
  5.19  metropolitan council, and must not be included in the net debt 
  5.20  of any city, county, or other subdivision of the state for the 
  5.21  purpose of any net debt limitation.  No election is required. 
  5.22     (b) The validity of any bonds issued under this 
  5.23  subdivision, and the obligations of the metropolitan council 
  5.24  related to them, must not be conditioned upon or impaired by the 
  5.25  public authority's determinations made under subdivision 10.  
  5.26  For purposes of issuing bonds, the determinations made by the 
  5.27  public authority are conclusive, and the metropolitan council is 
  5.28  obligated for the security and payment of the bonds, but only 
  5.29  from the sources pledged thereto, irrespective of determinations 
  5.30  that may be erroneous, inaccurate, or otherwise mistaken. 
  5.31     (c) Before issuing debt under this section, the 
  5.32  metropolitan council must enter into an agreement with the 
  5.33  brokerage firm to be used in connection with the issuance and 
  5.34  sale of the bonds under this subdivision or revenue anticipation 
  5.35  certificates authorized in subdivision 8, guaranteeing that fees 
  5.36  and charges payable to the brokerage firm under the agreement, 
  6.1   including any underwriting discounts, do not exceed fees and 
  6.2   charges customarily payable in connection with the issuance and 
  6.3   sale of bonds or revenue anticipation certificates. 
  6.4      Subd. 8.  [REVENUE ANTICIPATION CERTIFICATES.] In 
  6.5   anticipation of the proceeds from the taxes imposed by or under 
  6.6   authority of this act and the revenues of the public authority 
  6.7   provided for in its budget, but subject to any limitation or 
  6.8   prohibition in a bond resolution or indenture, the metropolitan 
  6.9   council may authorize the issuance, negotiation, and sale, in 
  6.10  the form and manner and upon the terms that it may determine, of 
  6.11  revenue anticipation certificates.  The principal amount of the 
  6.12  certificates outstanding may never exceed 25 percent of the 
  6.13  total amount of the tax and other revenues anticipated.  So much 
  6.14  of the anticipated tax and other revenues as may be needed for 
  6.15  the payment of the certificates and interest on them must be 
  6.16  paid into a special debt service fund established for the 
  6.17  certificates in the metropolitan council's financial records.  
  6.18  The proceeds of the certificates may be used for any purpose for 
  6.19  which the anticipated revenues or taxes may be used. 
  6.20     Subd. 9.  [DESIGN-BUILD.] In constructing the baseball 
  6.21  facility, the public authority must use the design-build method 
  6.22  of project development and construction as defined in Laws 1996, 
  6.23  chapter 463, section 58. 
  6.24     Subd. 10.  [LIMITATIONS.] (a) The public authority must not 
  6.25  commit money for the construction, acquisition, and betterment 
  6.26  of the baseball facility until after the public authority has 
  6.27  made the determinations in paragraphs (b) to (p). 
  6.28     (b) The public authority has executed agreements with the 
  6.29  owner to use the baseball facility for all scheduled regular 
  6.30  season and postseason home games.  The agreements must be for a 
  6.31  period of no less than 30 years, except as provided in paragraph 
  6.32  (m) and sections 473I.09 and 473I.10.  The agreements may 
  6.33  contain provisions negotiated with the owner that provide for 
  6.34  earlier termination of the use of the baseball facility upon 
  6.35  conditions related to and limited to the bankruptcy and 
  6.36  insolvency of the team.  The agreements shall afford to the 
  7.1   public authority or other public entity, as the public authority 
  7.2   deems appropriate, the remedies that are deemed necessary and 
  7.3   appropriate to provide reasonable assurances that the team and 
  7.4   the owner shall comply with the agreements.  The remedies may 
  7.5   include the payment of liquidated damages equivalent to direct 
  7.6   and consequential damages incurred by reason of the breach of 
  7.7   the agreements and any additional remedies or security 
  7.8   arrangements the public authority reasonably determines to be 
  7.9   effective in accomplishing the purpose of this subdivision.  At 
  7.10  any time after the effective date of this act, in the event of a 
  7.11  material breach of the agreements by the owner and the 
  7.12  subsequent failure to cure by the owner, the public authority 
  7.13  may exercise its option to purchase the owner's right, title, 
  7.14  and interest in the team, as provided in section 473I.09, 
  7.15  provided that the public authority is under no obligation to 
  7.16  purchase the team under this paragraph.  
  7.17     The agreements between the public authority and the owner 
  7.18  must also provide that: 
  7.19     (1) the owner, in consultation with the public authority, 
  7.20  must provide for management of the baseball facility and may 
  7.21  contract with one or more entities to operate part or all of the 
  7.22  baseball facility; 
  7.23     (2) the owner, in consultation with the public authority, 
  7.24  may contract with one or more concessionaires to provide food 
  7.25  and beverages for the baseball facility; 
  7.26     (3) the public authority shall receive 49 percent of the 
  7.27  net operating profits, as defined in section 473I.02, 
  7.28  subdivision 8; 
  7.29     (4) the owner and the public authority have developed a 
  7.30  procedure, mutually agreed upon, for the public authority to be 
  7.31  represented in the budgeting process for the team; and 
  7.32     (5) the owner and the public authority have developed 
  7.33  criteria for performance and operation of the baseball facility 
  7.34  and the team. 
  7.35     (c) The team and the owner have provided information 
  7.36  sufficient to satisfy the public authority of the team's and the 
  8.1   owner's ability to comply with the terms of the 30-year use 
  8.2   agreement. 
  8.3      (d) The public authority has acquired, or has contracted to 
  8.4   acquire, title to all real property including all easements and 
  8.5   other appurtenances needed for the construction and operation of 
  8.6   the baseball facility and has received a grant of funds or has 
  8.7   entered into agreements sufficient in the judgment of the public 
  8.8   authority to ensure the receipt of funds, at the time and in the 
  8.9   amount required, to make any payment upon which the public 
  8.10  authority's acquisition of title and possession of the real 
  8.11  property is conditioned. 
  8.12     (e) The public authority has received a grant of funds or 
  8.13  entered into agreements sufficient in the judgment of the public 
  8.14  authority to ensure the receipt of funds, at the time and in the 
  8.15  amount required, to pay all costs, except as provided in this 
  8.16  subdivision, of clearing the real property needed for the 
  8.17  construction and operation of the baseball facility of all 
  8.18  buildings, railroad tracks, and other structures including, 
  8.19  without limitation, all relocation costs including utility 
  8.20  relocation costs and all legal costs. 
  8.21     (f) The public authority has executed agreements with 
  8.22  appropriate labor organizations and construction contractors 
  8.23  that provide that no labor strikes or management lockouts will 
  8.24  delay construction. 
  8.25     (g) The public authority has executed agreements to provide 
  8.26  for the construction of the baseball facility for a guaranteed 
  8.27  maximum price and substantial completion date of April 1, 2001, 
  8.28  and that include performance bonds in an amount at least equal 
  8.29  to 100 percent of the guaranteed maximum price to cover any 
  8.30  costs that may be incurred over and above the guaranteed maximum 
  8.31  price, including, but not limited to, costs incurred by the 
  8.32  public authority or loss of revenues resulting from incomplete 
  8.33  construction on the substantial completion date. 
  8.34     (h) By December 31, 1997:  (1) at least 80 percent of the 
  8.35  private boxes provided for in the proposal for the baseball 
  8.36  facility are sold or leased for at least ten years; (2) at least 
  9.1   80 percent of the club seats provided for in the proposal for 
  9.2   the baseball facility are sold or leased for the opening season; 
  9.3   (3) pledges to purchase permanent seat licenses have been made, 
  9.4   as agreed to jointly by the owner and the public authority; and 
  9.5   (4) pledges to purchase 22,000 season tickets for the opening 
  9.6   season have been made.  If the provisions of this paragraph are 
  9.7   not met, either the owner or the public authority may require 
  9.8   negotiations for a baseball facility to cease. 
  9.9      (i) The owner has made a pledge, in a form satisfactory to 
  9.10  the public authority, to make a charitable gift of cash or 
  9.11  marketable securities of not less than $50,000,000 to be paid on 
  9.12  or before April 1, 2001. 
  9.13     (j) The owner has, in consultation with the public 
  9.14  authority, developed a private sector capital plan that includes 
  9.15  the sale or lease of some or all promotional rights in and/or 
  9.16  around the baseball facility. 
  9.17     (k) The anticipated revenue from the operation of the 
  9.18  baseball facility plus any additional available revenue of the 
  9.19  public authority and the revenue from the taxes imposed by or 
  9.20  under authority of this act is an amount sufficient to pay when 
  9.21  due all debt service, if any, plus all administration, 
  9.22  operating, and maintenance expense. 
  9.23     (l) The public authority has studied and considered the 
  9.24  needs of the University of Minnesota for athletic facilities for 
  9.25  the next 20 years. 
  9.26     (m) The owner has entered into an enforceable contract with 
  9.27  the public authority providing the public authority with a 49 
  9.28  percent ownership interest in the team and providing the public 
  9.29  authority an option to acquire the owner's interest in the team, 
  9.30  as provided in sections 473I.09 and 473I.10. 
  9.31     (n) The public authority and the owner have entered into an 
  9.32  agreement that obligates the owner to manage the team in good 
  9.33  faith so as to achieve profitable operation. 
  9.34     (o) The owner and the public authority have entered into an 
  9.35  agreement for the operation and maintenance of the baseball 
  9.36  facility. 
 10.1      (p) The public authority and the owner have entered into an 
 10.2   agreement that provides that the owner must: 
 10.3      (1) provide for the contractual arrangements relating to 
 10.4   naming rights and vendor agreements; 
 10.5      (2) use best efforts to obtain construction funds for the 
 10.6   baseball facility from major league baseball; and 
 10.7      (3) use best efforts to obtain a major league baseball 
 10.8   agreement for an all-star game in the baseball facility within 
 10.9   the first eight years following opening day. 
 10.10     Subd. 11.  [PRIVATE CONTRIBUTIONS.] The public authority 
 10.11  may accept private contributions to further its public purposes. 
 10.12  Private contributions must be solicited by the public authority, 
 10.13  the owner, the team, or any public or private entity, and such 
 10.14  contributions may be used by the public authority for any 
 10.15  purpose under this act, including, but not limited to, payment 
 10.16  of revenue bonds or revenue anticipation certificates issued 
 10.17  under subdivision 7 or 8, or section 473I.09, subdivision 6, or 
 10.18  reducing or eliminating any other liabilities of the public 
 10.19  authority under this act. 
 10.20     Subd. 12.  [USE OF CERTAIN REVENUES.] No less than 
 10.21  $25,000,000 of revenues from the sale of naming rights, 
 10.22  concessionaire payments, and other project capital 
 10.23  opportunities, must be used to fund the baseball facility. 
 10.24     Subd. 13.  [AMATEUR ATHLETIC EVENTS.] The public authority, 
 10.25  jointly with the owner, must develop a scheduling system to make 
 10.26  the baseball facility reasonably available at net out-of-pocket 
 10.27  cost to amateur athletic events that do not conflict with major 
 10.28  league baseball or other scheduled revenue producing events.  
 10.29     Subd. 14.  [COMPATIBLE USES.] The public authority may do 
 10.30  what it considers appropriate to encourage and develop sports 
 10.31  and recreational opportunities, professional or otherwise, and 
 10.32  make arrangements, jointly with the owner, for the use of the 
 10.33  baseball facility for sports, recreation, entertainment, civic, 
 10.34  exposition, and other uses not incompatible with its primary 
 10.35  functions. 
 10.36     Subd. 15.  [CAPITAL REPAIR; IMPROVEMENTS.] The public 
 11.1   authority is responsible for capital repairs, improvements, and 
 11.2   enhancements and betterments necessary to maintain the baseball 
 11.3   facility.  To the extent the costs to maintain the facility 
 11.4   exceed the funds in the capital improvement fund, the public 
 11.5   authority and the owner shall agree on the improvements to be 
 11.6   made. 
 11.7      Subd. 16.  [NO STATE GENERAL OBLIGATIONS.] In no event 
 11.8   shall revenue bonds which may be issued, sold, and secured under 
 11.9   subdivision 7 and section 473I.09, subdivision 6, be an 
 11.10  obligation of the state.  Bonds issued and sold by the 
 11.11  metropolitan council under subdivision 7 are payable solely from 
 11.12  revenues of the baseball facility, and bonds issued and sold by 
 11.13  the public authority under section 473I.09, subdivision 6, must 
 11.14  be secured first by the value of the team and second, by 
 11.15  revenues of the team and baseball facility.  The state shall not 
 11.16  assume any obligation or liability for bonds issued or sold 
 11.17  under this act. 
 11.18     Subd. 17.  [DEBT RESERVE FUND.] The public authority must 
 11.19  establish a debt reserve account in which to deposit funds the 
 11.20  public authority receives under section 473I.10, if necessary to 
 11.21  ensure payment of any debt issued by the public authority or the 
 11.22  metropolitan council under this act. 
 11.23     Sec. 4.  [473I.04] [SPECIAL ECONOMIC DEVELOPMENT DISTRICT; 
 11.24  TAXES AND FEES.] 
 11.25     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
 11.26  finds that the construction of a baseball facility defined in 
 11.27  section 473I.02, subdivision 2, is a public improvement that has 
 11.28  regional and statewide economic benefits.  In addition, the 
 11.29  baseball facility will specifically benefit the class of persons 
 11.30  operating retail and service businesses within the surrounding 
 11.31  area.  The legislature finds that the designation by the public 
 11.32  authority, in mutual agreement with the city, of the area 
 11.33  surrounding the baseball facility as a special economic 
 11.34  development district and the imposition of taxes or fees within 
 11.35  the district will more equitably apportion the burdens of 
 11.36  funding the baseball facility among the classes of persons 
 12.1   benefiting from the baseball facility. 
 12.2      Subd. 2.  [SPECIAL TAXES.] Notwithstanding section 
 12.3   477A.016, or any other limitation of law or charter, pursuant to 
 12.4   an agreement with the public authority under section 473I.03, 
 12.5   subdivision 4, the city or other local governmental unit may by 
 12.6   resolution impose liquor, entertainment, parking, and lodging 
 12.7   taxes or fees within the city or within the area within which 
 12.8   retail and service businesses receive special economic benefits 
 12.9   from the operation of the baseball facility, and that is 
 12.10  designated by the public authority, in mutual agreement with the 
 12.11  city, as a special economic development district.  The district 
 12.12  shall not be greater than an area measured by a radius of six 
 12.13  blocks in any direction from the baseball stadium.  The 
 12.14  resolution must provide for dedication of the taxes or fees, 
 12.15  after payment of collection and administrative expenses and 
 12.16  refunds, to payment of principal and interest on bonds issued 
 12.17  under section 473I.03, subdivision 7, if any, or for general 
 12.18  revenue for the purposes of this act, and for the transfer of 
 12.19  the taxes collected to the public authority for those purposes. 
 12.20     Subd. 3.  [MINIMUM PAYMENTS.] After payment of debt service 
 12.21  for the bonds issued under section 473I.03, subdivision 7, the 
 12.22  remaining net revenues collected under this section and section 
 12.23  473I.06 must be divided between the public authority and the 
 12.24  owner in proportion to the public authority's and the owner's 
 12.25  ownership interests in the team.  If the remaining net revenues 
 12.26  do not equal at least $3,000,000 per year, indexed after 1997 by 
 12.27  the annual percentage change in the Consumer Price Index for 
 12.28  urban consumers as prepared by the United States Bureau of Labor 
 12.29  Statistics, the city and Hennepin county shall reimburse the 
 12.30  owner and the public authority an amount sufficient to make up 
 12.31  the difference. 
 12.32     Subd. 4.  [EXPIRATION.] When the bonds or other debt has 
 12.33  been defeased or retired to which the revenues collected under 
 12.34  this section have been pledged, this section expires. 
 12.35     Sec. 5.  [473I.05] [CONSTRUCTION MATERIALS; SALES TAX 
 12.36  EXEMPTION.] 
 13.1      Purchases of materials and supplies used or consumed in 
 13.2   constructing or incorporated into the construction of a baseball 
 13.3   facility defined under section 473I.02, subdivision 2, are 
 13.4   exempt from the taxes imposed under chapter 297A, and from any 
 13.5   sales and use tax imposed by a local unit of government 
 13.6   notwithstanding any ordinance or charter provision.  This 
 13.7   exemption applies regardless of whether the materials and 
 13.8   supplies are purchased by the owner of the baseball facility, 
 13.9   the construction managers, or by a contractor or subcontractor. 
 13.10     Sec. 6.  [473I.06] [FISCAL DISPARITIES EXEMPTION; TRANSFER 
 13.11  TO PUBLIC AUTHORITY.] 
 13.12     (a) The county auditor shall not include any net tax 
 13.13  capacity within the special economic development district as 
 13.14  defined in section 473I.04, subdivision 2, in determining the 
 13.15  contribution net tax capacity of the municipality under sections 
 13.16  473F.05 and 473F.06, and in determining the municipality's 
 13.17  contribution ratio under section 473F.08, subdivisions 2 and 6. 
 13.18     (b) An amount equal to the contribution ratio determined 
 13.19  under section 473F.08, subdivision 2, multiplied by the net tax 
 13.20  capacity of all commercial-industrial property within the 
 13.21  special economic development district, shall be excluded from 
 13.22  the net tax capacity of all taxing jurisdictions containing the 
 13.23  special economic development district in computing tax rates 
 13.24  under section 275.08, subdivision 1b. 
 13.25     (c) The county shall annually transfer to the public 
 13.26  authority an amount determined by multiplying the 
 13.27  commercial-industrial net tax capacity within the special 
 13.28  economic development district by the ratio determined pursuant 
 13.29  to section 473F.08, subdivision 6, and by the areawide tax rate 
 13.30  determined under section 473F.08, subdivision 5.  The amount 
 13.31  transferred must be used by the public authority to pay 
 13.32  principal and interest on bonds issued under section 473I.03, 
 13.33  subdivision 7, if any, or to pay principal and interest on other 
 13.34  debt issued by the metropolitan council or the public authority 
 13.35  for construction, acquisition, and betterment of the baseball 
 13.36  facility. 
 14.1      (d) When the bonds or other debt has been defeased or 
 14.2   retired to which the revenues collected under this section have 
 14.3   been pledged, this section expires. 
 14.4      Sec. 7.  [473I.07] [EXEMPTION OF PROPERTY.] 
 14.5      Any real or personal property acquired, owned, leased, 
 14.6   controlled, used, or occupied by the public authority for any of 
 14.7   the purposes of this chapter is declared to be acquired, owned, 
 14.8   leased, controlled, used, and occupied for public, governmental, 
 14.9   and municipal purposes and is exempt from ad valorem taxation by 
 14.10  the state or any political subdivision of the state.  The 
 14.11  properties are subject to special assessments levied by a 
 14.12  political subdivision for a local improvement in amounts 
 14.13  proportionate to and not exceeding the special benefit received 
 14.14  by the properties from the improvement.  A possible use of the 
 14.15  properties in any manner different from their use under this act 
 14.16  at the time must not be considered in determining the special 
 14.17  benefit received by the properties.  Notwithstanding section 
 14.18  272.01, subdivision 2, or 273.19, real or personal property 
 14.19  leased by the public authority to another for the operation of 
 14.20  the baseball facility is exempt from taxation regardless of the 
 14.21  length of the lease. 
 14.22     Sec. 8.  [473I.08] [ADMISSION TAX; TICKET SURCHARGE.] 
 14.23     The public authority shall by resolution impose and 
 14.24  maintain an admission tax or ticket surcharge upon the granting, 
 14.25  issuance, sale, or distribution, by any private or public 
 14.26  person, association, or corporation, of the privilege of 
 14.27  admission to activities at the baseball facility.  No other tax, 
 14.28  surcharge, or governmental imposition, except the taxes imposed 
 14.29  by chapter 297A, may be levied by any other unit of government 
 14.30  upon any such sale or distribution.  If the public authority 
 14.31  imposes a ticket surcharge, it must be at least $1 per ticket 
 14.32  for the seats affected.  The public authority and the owner may 
 14.33  by mutual agreement exempt sections of the baseball facility 
 14.34  from the ticket surcharge.  The admission tax or ticket 
 14.35  surcharge must be stated and charged separately from the sales 
 14.36  price so far as practicable and must be collected by the 
 15.1   grantor, issuer, seller, or distributor from the person admitted 
 15.2   and is a debt from that person to the grantor, issuer, seller, 
 15.3   or distributor, and the tax required to be collected is a debt 
 15.4   owed by the grantor, issuer, seller, or distributor to the 
 15.5   public authority.  The debt is recoverable at law in the same 
 15.6   manner as other debts.  Every person who grants, issues, sells, 
 15.7   or distributes tickets for the admissions may be required, as 
 15.8   provided in resolutions of the public authority to secure a 
 15.9   permit, to file returns, to deposit security for the payment of 
 15.10  the tax, and to pay penalties for nonpayment and interest on 
 15.11  late payments, that are considered necessary or expedient to 
 15.12  ensure the prompt and uniform collection of the tax. 
 15.13     Sec. 9.  [473I.09] [PUBLIC PURCHASE AND SALE OF TEAM.] 
 15.14     Subdivision 1.  [GENERAL.] The owner shall enter into an 
 15.15  agreement, in form and substance acceptable to both the owner 
 15.16  and the public authority, that provides for the public authority 
 15.17  to purchase the owner's title, right, and interest in the team 
 15.18  under the conditions in this section.  The public authority may 
 15.19  purchase the owner's interest in the team only upon a showing by 
 15.20  the owner to the satisfaction of the public authority that it 
 15.21  has operated the team in good faith, using and substantiating 
 15.22  its best efforts to achieve a profitable operation, and so long 
 15.23  as there has been no material breach by the owner of the 
 15.24  agreements required by this act, and under the conditions of 
 15.25  this section. 
 15.26     Subd. 2.  [BASEBALL RULES.] If the public authority 
 15.27  purchases the owner's interest in the team, the owner may retain 
 15.28  a minimal ownership interest in the team with operational 
 15.29  control, if required by the major league baseball rules then in 
 15.30  effect. 
 15.31     Subd. 3.  [NOTICE; PRICE.] The owner may sell the owner's 
 15.32  interest in the team to the public authority for $105,000,000 no 
 15.33  sooner than the fifth anniversary of the first regular home game 
 15.34  played in the baseball facility, or April 1, 2006, whichever is 
 15.35  earlier, except as provided in subdivision 4.  The owner must 
 15.36  provide a written notice to the public authority and to the 
 16.1   commissioner of finance of the owner's intention to offer the 
 16.2   owner's interest in the team for sale to the public authority at 
 16.3   least one year before the obligation of the public authority to 
 16.4   purchase the team arises.  During the one-year notice period, 
 16.5   the public authority shall seek a suitable private purchaser.  
 16.6   If a suitable private purchaser is found, the sale price must be 
 16.7   no less than the price that the public authority would pay under 
 16.8   this subdivision.  If, during the one-year period, the public 
 16.9   authority is not able to find a suitable private purchaser, the 
 16.10  public authority may purchase the owner's interest in the team. 
 16.11     Subd. 4.  [DECLINE IN TEAM VALUE.] At any time after the 
 16.12  effective date of this section, if the value of the team 
 16.13  declines by ten percent or more below $105,000,000, as confirmed 
 16.14  by an appraisal process agreed upon by both parties, the public 
 16.15  authority may purchase the owner's interest in the team for the 
 16.16  appraised value. 
 16.17     Subd. 5.  [APPRECIATION IN TEAM VALUE.] If the public 
 16.18  authority acquires the owner's interest in the team under this 
 16.19  section, the owner shall receive ten percent of any appreciation 
 16.20  in the team's value above $105,000,000 in 2005, and an 
 16.21  additional 2-1/2 percent each year after 2005, up to a maximum 
 16.22  of 25 percent. 
 16.23     Subd. 6.  [REVENUE BONDS; OBLIGATION.] Upon the effective 
 16.24  date of the agreements entered into between the public authority 
 16.25  and the owner under section 473I.03, subdivision 10, the public 
 16.26  authority must issue and sell revenue bonds up to $105,000,000, 
 16.27  if necessary, to purchase the owner's interest in the team under 
 16.28  this section.  The revenue bonds must be secured first by the 
 16.29  value of team and secondly, by the revenues of the team and 
 16.30  baseball facility.  The bonds must be issued, sold, and secured 
 16.31  in the manner provided in chapter 475, for bonds payable solely 
 16.32  from revenues, and the public authority has the same powers and 
 16.33  duties as a municipality and a municipality's governing body in 
 16.34  issuing bonds under chapter 475.  The bonds may be sold at any 
 16.35  price and at public or private sale as determined by the public 
 16.36  authority.  The bonds are payable solely from the proceeds of 
 17.1   the sale of the team by the public authority and the revenues of 
 17.2   the team and the baseball facility, and are not a general 
 17.3   obligation or debt of the public authority, and must not be 
 17.4   included in the net debt of any city, county, or other 
 17.5   subdivision of the state for the purpose of any net debt 
 17.6   limitation.  No election is required. 
 17.7      Sec. 10.  [473I.10] [PROFIT SHARING.] 
 17.8      Subdivision 1.  [PROFITS; RENTS.] The public authority must 
 17.9   receive 49 percent of the net operating profits.  This 
 17.10  allocation of 49 percent of the net operating profits represents 
 17.11  a percentage rent payment from the team. 
 17.12     Subd. 2.  [PRIORITY OF PAYMENTS.] Gross revenues of the 
 17.13  team must be allocated in the following order of priority: 
 17.14     (1) operating expenses of the team unless otherwise agreed 
 17.15  to by the public authority and the owner, and excluding seasonal 
 17.16  working capital requirements; 
 17.17     (2) operating expenses of the baseball facility; 
 17.18     (3) funding of a capital improvement fund in an amount not 
 17.19  to exceed $700,000 per year, unless otherwise agreed to by the 
 17.20  public authority and the owner; and 
 17.21     (4) of the remaining gross revenues, payment to the public 
 17.22  authority of 49 percent.  
 17.23     The owner may receive up to $1,000,000 per year before the 
 17.24  allocation under clause (4) is made, as provided in an agreement 
 17.25  between the owner and the public authority.  The agreement must 
 17.26  provide that this payment is contingent on increased investment 
 17.27  in the baseball facility by the owner resulting in increased 
 17.28  revenues of the team or baseball facility, or reduced costs 
 17.29  during the year. 
 17.30     Subd. 3.  [TEAM OPERATING EXPENSES; LOSS.] The owner shall 
 17.31  assume all risk for funding operating expenses of the team.  The 
 17.32  public authority is not liable for any operating loss of the 
 17.33  team.  The public authority shall not reimburse the owner or any 
 17.34  creditor of the team for any operating loss of the team. 
 17.35     Subd. 4.  [OWNER'S COMPENSATION.] The owner's compensation 
 17.36  under this section is limited exclusively to the owner's share 
 18.1   of the team's net operating profits and any incentive payment as 
 18.2   described in subdivision 2. 
 18.3      Sec. 11.  [473I.11] [OPERATION OF BASEBALL FACILITY TO BE 
 18.4   SELF-SUPPORTING.] 
 18.5      The legislature intends that the rates, rentals, and other 
 18.6   charges imposed in the operation of the baseball facility permit 
 18.7   the baseball facility to be self-supporting in its operations, 
 18.8   to the maximum extent possible consistent with the provisions of 
 18.9   this act. 
 18.10     Sec. 12.  [473I.12] [ANNUAL APPROPRIATION.] 
 18.11     (a) For fiscal year 1998 and annually thereafter, the 
 18.12  commissioner of revenue shall certify to the legislature and to 
 18.13  the public authority the amount of tax receipts of the state 
 18.14  deposited in the baseball facility account according to section 
 18.15  295.67.  The certified amount is appropriated to the public 
 18.16  authority. 
 18.17     (b) An amount equal to the amount appropriated in section 
 18.18  13 must be deducted from the amount that would otherwise be 
 18.19  appropriated for fiscal year 1998 under paragraph (a).  The 
 18.20  amount of the deduction must be transferred to the general fund. 
 18.21     Sec. 13.  [APPROPRIATION.] 
 18.22     $....... is appropriated for fiscal year 1997 from the 
 18.23  general fund to the public authority for the purposes of 
 18.24  Minnesota Statutes, section 473I.03, subdivision 10.  
 18.25     Sec. 14.  [SALE OF MET CENTER; DEFEASANCE OF METRODOME 
 18.26  BONDS.] 
 18.27     Subdivision 1.  [SALE.] The metropolitan sports facilities 
 18.28  commission shall sell the met center within a reasonable time. 
 18.29     Subd. 2.  [DEFEASANCE OF METRODOME BONDS.] Upon the sale of 
 18.30  the met center, the commission shall escrow money or securities 
 18.31  sufficient to defease the outstanding debt on the metrodome. 
 18.32     Subd. 3.  [USE OF COMMISSION RESERVE ACCOUNT FUNDS.] After 
 18.33  the commission has escrowed money or securities sufficient to 
 18.34  defease the outstanding debt on the metrodome, the commission 
 18.35  shall make available for the construction, acquisition, and 
 18.36  betterment of the baseball facility, the remaining metrodome 
 19.1   reserve account funds. 
 19.2      Sec. 15.  [RECOMMENDATIONS ON GOVERNING BODY.] 
 19.3      The metropolitan sports facilities commission shall make 
 19.4   recommendations to the legislature with respect to a new or 
 19.5   broadened membership structure or public authority that will 
 19.6   adequately represent the interests of the public.  The 
 19.7   recommendations must be delivered to the chairs of the house 
 19.8   local government and metropolitan affairs committee and the 
 19.9   senate metropolitan and local government committee by September 
 19.10  1, 1997. 
 19.11     Sec. 16.  [EFFECTIVE DATES; APPLICATION.] 
 19.12     This article applies in the counties of Anoka, Carver, 
 19.13  Dakota, Hennepin, Ramsey, Scott, and Washington.  Section 15 is 
 19.14  effective the day after final enactment.  The remainder of this 
 19.15  article is effective July 1, 1997. 
 19.16                             ARTICLE 2
 19.17     Section 1.  Minnesota Statutes 1996, section 290.06, is 
 19.18  amended by adding a subdivision to read: 
 19.19     Subd. 2g.  [STADIUM SURTAX.] (a) In addition to the other 
 19.20  taxes imposed under this chapter, a tax is imposed on the 
 19.21  taxable net income of a qualified employee of a sports 
 19.22  organization.  The tax equals four percent of the amount of 
 19.23  taxable net income over $100,000 for the taxable year. 
 19.24     (b) For purposes of this subdivision, the following terms 
 19.25  have the meanings given: 
 19.26     (1) A "qualified employee" means an employee who derives 
 19.27  wages, salaries, or other compensation of at least $200,000 for 
 19.28  the performance of personal services from a sports organization 
 19.29  for the taxable year. 
 19.30     (2) A "sports organization" means any organization that 
 19.31  operates a major league professional sports franchise and that 
 19.32  uses the baseball facility, as defined in section 473I.03, 
 19.33  subdivision 2.  A sports organization includes a visiting team 
 19.34  regardless of whether it has a direct agreement with the owner 
 19.35  or operator of the sports facility. 
 19.36     Sec. 2.  Minnesota Statutes 1996, section 290.62, is 
 20.1   amended to read: 
 20.2      290.62 [DISTRIBUTION OF REVENUES.] 
 20.3      All revenues derived from the taxes, interest, penalties 
 20.4   and charges under this chapter shall, notwithstanding any other 
 20.5   provisions of law, be paid into the state treasury and credited 
 20.6   to the general fund, and be distributed as follows: 
 20.7      (1) There shall, notwithstanding any other provision of the 
 20.8   law, be paid from this general fund all refunds of taxes 
 20.9   erroneously collected from taxpayers under this chapter as 
 20.10  provided herein; 
 20.11     (2) There is hereby appropriated to the persons entitled to 
 20.12  payment herein, from the fund or account in the state treasury 
 20.13  to which the money was credited, an amount sufficient to make 
 20.14  the refund and payment; and 
 20.15     (3) The revenues from the tax imposed by section 290.06, 
 20.16  subdivision 2g, must be deposited in the baseball facility 
 20.17  account. 
 20.18     Sec. 3.  [295.60] [SPORTS MEMORABILIA TAX.] 
 20.19     A tax is imposed on each sale at wholesale of sports 
 20.20  memorabilia in this state.  The rate of the tax is ten percent 
 20.21  of the gross earnings from the sale. 
 20.22     Sec. 4.  [295.61] [DEFINITIONS.] 
 20.23     Subdivision 1.  [TERMS.] For purposes of this section, the 
 20.24  following terms have the meanings given them. 
 20.25     Subd. 2.  [BUYER.] "Buyer" means any person that purchases 
 20.26  sports memorabilia at wholesale in this state. 
 20.27     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 20.28  commissioner of revenue. 
 20.29     Subd. 4.  [SALE.] "Sale" means a transfer of title or 
 20.30  possession of tangible personal property, whether absolutely or 
 20.31  conditionally. 
 20.32     Subd. 5.  [SPORTS MEMORABILIA OR SPORTS LICENSED GOODS.] 
 20.33  "Sports memorabilia" or "sports licensed goods" means items 
 20.34  available for sale to the public, such as: 
 20.35     (1) one-of-a-kind items related to sports figures, teams, 
 20.36  or events; 
 21.1      (2) sports trading cards; 
 21.2      (3) sports photographs; 
 21.3      (4) league and individual athlete licensed items; 
 21.4      (5) sports event licensed items; and 
 21.5      (6) similar items. 
 21.6      Subd. 6.  [WHOLESALE OR SALE AT WHOLESALE.] "Wholesale" or 
 21.7   "sale at wholesale" means a sale to a retailer, as defined in 
 21.8   section 297A.01, subdivision 10, for the purpose of reselling 
 21.9   the property to a third party. 
 21.10     Subd. 7.  [WHOLESALER.] "Wholesaler" means any person 
 21.11  making wholesale sales of sports memorabilia to purchasers in 
 21.12  this state. 
 21.13     Sec. 5.  [295.63] [COLLECTION.] 
 21.14     Subdivision 1.  [PAYMENT AND COLLECTION OBLIGATION.] The 
 21.15  buyer must pay the tax to the wholesaler and each wholesaler 
 21.16  must collect from the buyer the full amount of the tax payable 
 21.17  for each taxable sale, unless the state or federal constitution 
 21.18  prohibits the wholesaler from collecting the tax from the buyer. 
 21.19  The tax applies only to sports memorabilia that: 
 21.20     (1) the wholesaler sells to a tenant of the baseball 
 21.21  facility or a subsidiary, affiliate, or entity under contract 
 21.22  with the tenant to sell items on its behalf; or 
 21.23     (2) contains the name or a logo of a tenant of the facility.
 21.24     Subd. 2.  [TAX SEPARATELY STATED.] The tax must be 
 21.25  separately stated from the selling price in any sales invoice or 
 21.26  any instrument of sale.  Failure to separately state the tax 
 21.27  creates a conclusive presumption that the tax has not been 
 21.28  collected. 
 21.29     Subd. 3.  [TAX IS IN ADDITION TO OTHERS.] The tax under 
 21.30  sections 295.60 to 295.68 is in addition to any other tax that 
 21.31  applies under the laws of this state. 
 21.32     Sec. 6.  [295.64] [COMPLEMENTARY USE TAX.] 
 21.33     If the tax is not paid under section 295.63, a tax is 
 21.34  imposed on possession for sale or use of sports memorabilia or 
 21.35  sports licensed goods in this state.  The rate of tax equals the 
 21.36  rate under section 295.60 and must be paid by the possessor of 
 22.1   the items. 
 22.2      Sec. 7.  [295.65] [EXEMPTIONS.] 
 22.3      The tax imposed by sections 295.60 to 295.68 does not apply 
 22.4   to: 
 22.5      (1) any successive sale if the tax was previously imposed 
 22.6   and collected on the same sports memorabilia or sports licensed 
 22.7   goods; and 
 22.8      (2) any sale of sports memorabilia or sports licensed goods 
 22.9   that is transferred to a point outside of the state for sale or 
 22.10  use outside of the state.  
 22.11     Sec. 8.  [295.66] [ADMINISTRATIVE PROVISIONS.] 
 22.12     Subdivision 1.  [APPLICATION OF OTHER CHAPTERS.] To the 
 22.13  extent not inconsistent with the provisions of sections 295.60 
 22.14  to 295.68, the enforcement, interest, and penalty provisions 
 22.15  under chapter 294, appeal provisions in sections 289A.43 and 
 22.16  289A.65, criminal penalties in section 289A.63, refund 
 22.17  provisions in section 289A.50, and collection and rulemaking 
 22.18  provisions under chapter 270, apply to the tax under sections 
 22.19  295.60 to 295.68. 
 22.20     Subd. 2.  [QUARTERLY ESTIMATED PAYMENTS.] (a) Each 
 22.21  wholesaler must make estimated payments of the tax for the 
 22.22  calendar year in quarterly installments to the commissioner by 
 22.23  April 15, July 15, October 15, and January 15 of the following 
 22.24  calendar year. 
 22.25     (b) Estimated tax payments are not required if the tax for 
 22.26  the calendar year is less than $500. 
 22.27     (c) Underpayment of estimated installments bear interest at 
 22.28  the rate specified in section 270.75, from the due date of the 
 22.29  payment until paid or until the due date of the annual return at 
 22.30  the rate specified in section 270.75.  An underpayment of an 
 22.31  estimated installment is the difference between the amount paid 
 22.32  and the lesser of (1) 90 percent of the one-quarter of the tax 
 22.33  for the calendar year, or (2) the tax for the actual gross 
 22.34  revenues received during the quarter. 
 22.35     Subd. 3.  [ELECTRONIC FUNDS-TRANSFER PAYMENTS.] A taxpayer 
 22.36  with an aggregate tax liability of $120,000 or more during a 
 23.1   fiscal year ending June 30, must remit all liabilities by funds 
 23.2   transfer as defined in section 336.4A-104, paragraph (a), in the 
 23.3   next calendar year.  The funds-transfer payment date, as defined 
 23.4   in section 336.4A-401, is on or before the date the tax is due.  
 23.5   If the date the tax is due is not a funds-transfer business day, 
 23.6   as defined in section 336.4A-105, paragraph (a), clause (4), the 
 23.7   payment date is on or before the first funds-transfer business 
 23.8   day after the date the tax is due. 
 23.9      Subd. 4.  [ANNUAL RETURN.] The taxpayer must file an annual 
 23.10  return reconciling the estimated payments by March 15 of the 
 23.11  following calendar year. 
 23.12     Subd. 5.  [FORM OF RETURNS.] The estimated payments and 
 23.13  annual return must contain the information and be in the form 
 23.14  prescribed by the commissioner. 
 23.15     Sec. 9.  [295.67] [DISCLOSURE ON PRODUCTS.] 
 23.16     A wholesaler subject to tax under section 295.60 must apply 
 23.17  a tag, stamp, mark, or other indicia on sports memorabilia 
 23.18  subject to the tax that states "This product was subject to the 
 23.19  special Minnesota stadium tax" or another statement to similar 
 23.20  effect. 
 23.21     Sec. 10.  [295.68] [DISPOSITION OF REVENUES.] 
 23.22     The commissioner shall deposit all revenues, including 
 23.23  interest and penalties, derived from the tax imposed on sports 
 23.24  memorabilia and sports licensed goods under section 295.60 in 
 23.25  the baseball facility account in the general fund.  
 23.26     Sec. 11.  Minnesota Statutes 1996, section 297A.01, 
 23.27  subdivision 3, is amended to read: 
 23.28     Subd. 3.  A "sale" and a "purchase" includes, but is not 
 23.29  limited to, each of the following transactions: 
 23.30     (a) Any transfer of title or possession, or both, of 
 23.31  tangible personal property, whether absolutely or conditionally, 
 23.32  and the leasing of or the granting of a license to use or 
 23.33  consume tangible personal property other than manufactured homes 
 23.34  used for residential purposes for a continuous period of 30 days 
 23.35  or more, for a consideration in money or by exchange or barter; 
 23.36     (b) The production, fabrication, printing, or processing of 
 24.1   tangible personal property for a consideration for consumers who 
 24.2   furnish either directly or indirectly the materials used in the 
 24.3   production, fabrication, printing, or processing; 
 24.4      (c) The furnishing, preparing, or serving for a 
 24.5   consideration of food, meals, or drinks.  "Sale" does not 
 24.6   include: 
 24.7      (1) meals or drinks served to patients, inmates, or persons 
 24.8   residing at hospitals, sanitariums, nursing homes, senior 
 24.9   citizens homes, and correctional, detention, and detoxification 
 24.10  facilities; 
 24.11     (2) meals or drinks purchased for and served exclusively to 
 24.12  individuals who are 60 years of age or over and their spouses or 
 24.13  to the handicapped and their spouses by governmental agencies, 
 24.14  nonprofit organizations, agencies, or churches or pursuant to 
 24.15  any program funded in whole or part through 42 USCA sections 
 24.16  3001 through 3045, wherever delivered, prepared or served; or 
 24.17     (3) meals and lunches served at public and private schools, 
 24.18  universities, or colleges. 
 24.19  Notwithstanding section 297A.25, subdivision 2, taxable food or 
 24.20  meals include, but are not limited to, the following:  
 24.21     (i) heated food or drinks; 
 24.22     (ii) sandwiches prepared by the retailer; 
 24.23     (iii) single sales of prepackaged ice cream or ice milk 
 24.24  novelties prepared by the retailer; 
 24.25     (iv) hand-prepared or dispensed ice cream or ice milk 
 24.26  products including cones, sundaes, and snow cones; 
 24.27     (v) soft drinks and other beverages prepared or served by 
 24.28  the retailer; 
 24.29     (vi) gum; 
 24.30     (vii) ice; 
 24.31     (viii) all food sold in vending machines; 
 24.32     (ix) party trays prepared by the retailers; and 
 24.33     (x) all meals and single servings of packaged snack food, 
 24.34  single cans or bottles of pop, sold in restaurants and bars; 
 24.35     (d) The granting of the privilege of admission to places of 
 24.36  amusement, recreational areas, or athletic events, except a 
 25.1   world championship football game sponsored by the national 
 25.2   football league, and the privilege of having access to and the 
 25.3   use of amusement devices, tanning facilities, reducing salons, 
 25.4   steam baths, turkish baths, health clubs, and spas or athletic 
 25.5   facilities; 
 25.6      (e) The furnishing for a consideration of lodging and 
 25.7   related services by a hotel, rooming house, tourist court, motel 
 25.8   or trailer camp and of the granting of any similar license to 
 25.9   use real property other than the renting or leasing thereof for 
 25.10  a continuous period of 30 days or more; 
 25.11     (f) The furnishing for a consideration of electricity, gas, 
 25.12  water, or steam for use or consumption within this state, or 
 25.13  local exchange telephone service, intrastate toll service, and 
 25.14  interstate toll service, if that service originates from and is 
 25.15  charged to a telephone located in this state.  Telephone service 
 25.16  includes paging services and private communication service, as 
 25.17  defined in United States Code, title 26, section 4252(d), except 
 25.18  for private communication service purchased by an agent acting 
 25.19  on behalf of the state lottery.  The furnishing for a 
 25.20  consideration of access to telephone services by a hotel to its 
 25.21  guests is a sale under this clause.  Sales by municipal 
 25.22  corporations in a proprietary capacity are included in the 
 25.23  provisions of this clause.  The furnishing of water and sewer 
 25.24  services for residential use shall not be considered a sale.  
 25.25  The sale of natural gas to be used as a fuel in vehicles 
 25.26  propelled by natural gas shall not be considered a sale for the 
 25.27  purposes of this section; 
 25.28     (g) The furnishing for a consideration of cable television 
 25.29  services, including charges for basic service, charges for 
 25.30  premium service, and any other charges for any other 
 25.31  pay-per-view, monthly, or similar television services; 
 25.32     (h) The furnishing for a consideration of parking services, 
 25.33  whether on a contractual, hourly, or other periodic basis, 
 25.34  except for parking at a meter; 
 25.35     (i) The furnishing for a consideration of services listed 
 25.36  in this paragraph: 
 26.1      (i) laundry and dry cleaning services including cleaning, 
 26.2   pressing, repairing, altering, and storing clothes, linen 
 26.3   services and supply, cleaning and blocking hats, and carpet, 
 26.4   drapery, upholstery, and industrial cleaning.  Laundry and dry 
 26.5   cleaning services do not include services provided by coin 
 26.6   operated facilities operated by the customer; 
 26.7      (ii) motor vehicle washing, waxing, and cleaning services, 
 26.8   including services provided by coin-operated facilities operated 
 26.9   by the customer, and rustproofing, undercoating, and towing of 
 26.10  motor vehicles; 
 26.11     (iii) building and residential cleaning, maintenance, and 
 26.12  disinfecting and exterminating services; 
 26.13     (iv) detective services, security services, burglar, fire 
 26.14  alarm, and armored car services not including services performed 
 26.15  within the jurisdiction they serve by off-duty licensed peace 
 26.16  officers as defined in section 626.84, subdivision 1; 
 26.17     (v) pet grooming services; 
 26.18     (vi) lawn care, fertilizing, mowing, spraying and sprigging 
 26.19  services; garden planting and maintenance; tree, bush, and shrub 
 26.20  pruning, bracing, spraying, and surgery; tree, bush, shrub and 
 26.21  stump removal; and tree trimming for public utility lines.  
 26.22  Services performed under a construction contract for the 
 26.23  installation of shrubbery, plants, sod, trees, bushes, and 
 26.24  similar items are not taxable; 
 26.25     (vii) mixed municipal solid waste management services as 
 26.26  described in section 297A.45; 
 26.27     (viii) massages, except when provided by a licensed health 
 26.28  care facility or professional or upon written referral from a 
 26.29  licensed health care facility or professional for treatment of 
 26.30  illness, injury, or disease; and 
 26.31     (ix) the furnishing for consideration of lodging, board and 
 26.32  care services for animals in kennels and other similar 
 26.33  arrangements, but excluding veterinary and horse boarding 
 26.34  services. 
 26.35  The services listed in this paragraph are taxable under section 
 26.36  297A.02 if the service is performed wholly within Minnesota or 
 27.1   if the service is performed partly within and partly without 
 27.2   Minnesota and the greater proportion of the service is performed 
 27.3   in Minnesota, based on the cost of performance.  In applying the 
 27.4   provisions of this chapter, the terms "tangible personal 
 27.5   property" and "sales at retail" include taxable services and the 
 27.6   provision of taxable services, unless specifically provided 
 27.7   otherwise.  Services performed by an employee for an employer 
 27.8   are not taxable under this paragraph.  Services performed by a 
 27.9   partnership or association for another partnership or 
 27.10  association are not taxable under this paragraph if one of the 
 27.11  entities owns or controls more than 80 percent of the voting 
 27.12  power of the equity interest in the other entity.  Services 
 27.13  performed between members of an affiliated group of corporations 
 27.14  are not taxable.  For purposes of this section, "affiliated 
 27.15  group of corporations" includes those entities that would be 
 27.16  classified as a member of an affiliated group under United 
 27.17  States Code, title 26, section 1504, and who are eligible to 
 27.18  file a consolidated tax return for federal income tax purposes; 
 27.19     (j) A "sale" and a "purchase" includes the transfer of 
 27.20  computer software, meaning information and directions that 
 27.21  dictate the function performed by data processing equipment.  A 
 27.22  "sale" and a "purchase" does not include the design, 
 27.23  development, writing, translation, fabrication, lease, or 
 27.24  transfer for a consideration of title or possession of a custom 
 27.25  computer program; and 
 27.26     (k) The granting of membership in a club, association, or 
 27.27  other organization if: 
 27.28     (1) the club, association, or other organization makes 
 27.29  available for the use of its members sports and athletic 
 27.30  facilities (without regard to whether a separate charge is 
 27.31  assessed for use of the facilities); and 
 27.32     (2) use of the sports and athletic facilities is not made 
 27.33  available to the general public on the same basis as it is made 
 27.34  available to members.  
 27.35  Granting of membership includes both one-time initiation fees 
 27.36  and periodic membership dues.  Sports and athletic facilities 
 28.1   include golf courses, tennis, racquetball, handball and squash 
 28.2   courts, basketball and volleyball facilities, running tracks, 
 28.3   exercise equipment, swimming pools, and other similar athletic 
 28.4   or sports facilities.  The provisions of this paragraph do not 
 28.5   apply to camps or other recreation facilities owned and operated 
 28.6   by an exempt organization under section 501(c)(3) of the 
 28.7   Internal Revenue Code of 1986, as amended through December 31, 
 28.8   1992, for educational and social activities for young people 
 28.9   primarily age 18 and under; and 
 28.10     (l) The leasing, renting, or granting of use of a skybox or 
 28.11  private luxury box in the baseball facility, as defined in 
 28.12  section 473I.03, subdivision 2.  
 28.13     Sec. 12.  Minnesota Statutes 1996, section 297A.01, is 
 28.14  amended by adding a subdivision to read: 
 28.15     Subd. 22.  [STADIUM SALES.] "Stadium sales" means any 
 28.16  transaction, including transfers of tangible personal property 
 28.17  and provision of taxable services, that occurs on the premises 
 28.18  of the baseball facility as defined in section 473I.03, 
 28.19  subdivision 2.  This includes, but is not limited to, 
 28.20  admissions, concession sales, parking charges, and skybox 
 28.21  rentals but excludes purchases by the owner, operator, or a 
 28.22  tenant of the baseball facility. 
 28.23     Sec. 13.  Minnesota Statutes 1996, section 297A.02, is 
 28.24  amended by adding a subdivision to read: 
 28.25     Subd. 6.  [STADIUM TAX.] The rate of tax on stadium sales 
 28.26  is nine percent.  This tax is in lieu of all other taxes levied 
 28.27  by any unit of government on these sales, including the tax 
 28.28  under subdivision 1. 
 28.29     Sec. 14.  Minnesota Statutes 1996, section 297A.44, 
 28.30  subdivision 1, is amended to read: 
 28.31     Subdivision 1.  (a) Except as provided in paragraphs (b), 
 28.32  (c), and (d), and (e), all revenues, including interest and 
 28.33  penalties, derived from the excise and use taxes imposed by 
 28.34  sections 297A.01 to 297A.44 shall be deposited by the 
 28.35  commissioner in the state treasury and credited to the general 
 28.36  fund.  
 29.1      (b) All excise and use taxes derived from sales and use of 
 29.2   property and services purchased for the construction and 
 29.3   operation of an agricultural resource project, from and after 
 29.4   the date on which a conditional commitment for a loan guaranty 
 29.5   for the project is made pursuant to section 41A.04, subdivision 
 29.6   3, shall be deposited in the Minnesota agricultural and economic 
 29.7   account in the special revenue fund.  The commissioner of 
 29.8   finance shall certify to the commissioner the date on which the 
 29.9   project received the conditional commitment.  The amount 
 29.10  deposited in the loan guaranty account shall be reduced by any 
 29.11  refunds and by the costs incurred by the department of revenue 
 29.12  to administer and enforce the assessment and collection of the 
 29.13  taxes.  
 29.14     (c) All revenues, including interest and penalties, derived 
 29.15  from the excise and use taxes imposed on sales and purchases 
 29.16  included in section 297A.01, subdivision 3, paragraphs (d) and 
 29.17  (l), clauses (1) and (2), must be deposited by the commissioner 
 29.18  in the state treasury, and credited as follows: 
 29.19     (1) first to the general obligation special tax bond debt 
 29.20  service account in each fiscal year the amount required by 
 29.21  section 16A.661, subdivision 3, paragraph (b); and 
 29.22     (2) after the requirements of clause (1) have been met, the 
 29.23  balance must be credited to the general fund. 
 29.24     (d) The revenues, including interest and penalties, derived 
 29.25  from the taxes imposed on solid waste collection services as 
 29.26  described in section 297A.45, shall be deposited by the 
 29.27  commissioner in the state treasury and credited to the general 
 29.28  fund to be used for funding solid waste reduction and recycling 
 29.29  programs. 
 29.30     (e) The commissioner shall deposit all revenues, including 
 29.31  interest and penalties, derived from the taxes imposed on 
 29.32  stadium sales under sections 297A.02, subdivision 6, and 
 29.33  297A.14, in the baseball facility account in the general fund. 
 29.34     Sec. 15.  Minnesota Statutes 1996, section 349A.10, is 
 29.35  amended by adding a subdivision to read: 
 29.36     Subd. 5a.  [SPECIAL LOTTERY GAME.] (a) The lottery shall 
 30.1   conduct an instant lottery game each year with a baseball theme. 
 30.2      (b) The net revenues from the game conducted under this 
 30.3   subdivision, after the deduction of the net revenue to be paid 
 30.4   to the Minnesota environment and natural resources trust fund, 
 30.5   must be credited to the baseball facility account and is 
 30.6   appropriated to the public authority. 
 30.7      Sec. 16.  [473I.13] [PARKING TAX.] 
 30.8      Subdivision 1.  [TAX IMPOSED.] The city shall impose and 
 30.9   collect a parking tax equal to, at least, $1 per vehicle per 
 30.10  event at the baseball facility. 
 30.11     Subd. 2.  [AREA OF APPLICATION.] The tax applies to parking 
 30.12  in the special economic development district, designated under 
 30.13  section 473I.05, and in any additional area providing event 
 30.14  parking, as mutually agreed by the city and commission. 
 30.15     Subd. 3.  [TERMS SET BY AGREEMENT.] The commission and city 
 30.16  shall mutually agree upon the terms and provisions of the tax, 
 30.17  including: 
 30.18     (1) the definition of event parking; 
 30.19     (2) any additional area in which the tax applies; 
 30.20     (3) procedures and times for payment of the tax; 
 30.21     (4) procedures and times for remitting proceeds to the 
 30.22  state; 
 30.23     (5) penalty and interest provisions; 
 30.24     (6) the method of determining the cost of collection; and 
 30.25     (7) other provisions with a material effect upon revenues 
 30.26  from the tax. 
 30.27     Subd. 4.  [DISPOSITION OF PROCEEDS.] The city must pay the 
 30.28  proceeds of the tax, including interest and penalties, less the 
 30.29  reasonable cost of collection, to the state treasurer for 
 30.30  deposit in the baseball facility account in the general fund. 
 30.31     Sec. 17.  [SUNSET OF SPECIAL TAXES AND REVENUES.] 
 30.32     Article 2 expires when all revenue bonds issued for 
 30.33  construction of a baseball facility have been defeased or 
 30.34  retired. 
 30.35     Sec. 18.  [EFFECTIVE DATE.] 
 30.36     Sections 1 and 2 are effective for taxable years beginning 
 31.1   after December 31, ..... 
 31.2      Sections 3 to 10 are effective for sales made after June 
 31.3   30, 1997. 
 31.4      Sections 11 to 14 are effective for sales made after June 
 31.5   30, .....  
 31.6      Section 16 is effective upon local approval by the city of 
 31.7   Minneapolis under Minnesota Statutes, section 645.021.