HF 1367

as introduced - 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 11A.24, by 
  1.9             adding a subdivision; 80A.15, by adding a subdivision; 
  1.10            297.02, subdivision 1; 297.03, subdivision 5; 297.13, 
  1.11            subdivision 1; 297.32, subdivisions 1, 2, and 9; and 
  1.12            297.35, subdivision 1; proposing coding for new law in 
  1.13            Minnesota Statutes, chapter 79; 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 commission may devise to further secure and 
  2.9   promote these public purposes, will increase and enhance the 
  2.10  value and public benefits afforded to the state and its citizens.
  2.11     (d) It is therefore necessary for the public health, 
  2.12  safety, and general welfare to aid in the financing of the 
  2.13  acquisition, construction, and operation of a new baseball 
  2.14  facility and to retain and secure the long-term commitment of a 
  2.15  major league professional baseball team by reasonable means, 
  2.16  which may include partial public ownership of the team, and by 
  2.17  authorizing financing and other arrangements as necessary to 
  2.18  accomplish that purpose.  It is hereby determined and declared 
  2.19  that the purposes of this act are public and governmental. 
  2.20     Sec. 2.  [473I.02] [RECOMMENDATIONS ON GOVERNING BODY.] 
  2.21     The metropolitan sports facilities commission shall make 
  2.22  recommendations to the legislature with respect to a new or 
  2.23  broadened membership structure or public authority that will 
  2.24  adequately represent the interests of the public.  The 
  2.25  recommendations must be delivered to the chairs of the house 
  2.26  local government and metropolitan affairs committee and the 
  2.27  senate metropolitan and local government committee by September 
  2.28  1, 1997. 
  2.29     Sec. 3.  [473I.03] [DEFINITIONS.] 
  2.30     Subdivision 1.  [APPLICATION; ADOPTED BY REFERENCE.] The 
  2.31  definitions in this section and in sections 473.121 and 473.551, 
  2.32  apply in this act. 
  2.33     Subd. 2.  [BASEBALL FACILITY DEFINED AND 
  2.34  DESCRIBED.] "Baseball facility" means a state-of-the-art open 
  2.35  air ball park designed for baseball only, that is suitable for 
  2.36  major league baseball and no other major league spectator sport 
  3.1   that uses a surface or seating configuration different from 
  3.2   major league baseball, and that is the major capital improvement 
  3.3   resulting from the project described in this act.  The baseball 
  3.4   facility may have a convertible roof that promotes the historic 
  3.5   amenities of an open air baseball park when weather permits and 
  3.6   a comfortable climate-controlled environment for performers and 
  3.7   patrons when uncomfortable weather is present or anticipated.  
  3.8   The baseball facility may include parking or other transit 
  3.9   facilities for patrons, performers, and employees and may 
  3.10  include other amenities to enhance or make the use of the 
  3.11  baseball facility convenient and predictably accessible to all 
  3.12  Minnesotans and others.  
  3.13     Subd. 3.  [THE PUBLIC AUTHORITY.] "The public authority" 
  3.14  means the metropolitan sports facilities commission or its 
  3.15  successor organization. 
  3.16     Subd. 4.  [PROJECT.] "Project" means the entire process 
  3.17  from inviting proposals for sites to completion of the baseball 
  3.18  facility and all amenities related to construction of the 
  3.19  baseball facility. 
  3.20     Subd. 5.  [CITY.] "City" means the city of Minneapolis. 
  3.21     Subd. 6.  [TEAM.] "Team" means the professional major 
  3.22  league baseball team. 
  3.23     Subd. 7.  [OWNER.] "Owner" means the individual or 
  3.24  individuals acting in concert as a partnership or corporation 
  3.25  that own at least a majority or controlling interest in the team.
  3.26     Subd. 8.  [NET OPERATING PROFITS.] "Net operating profits" 
  3.27  means the gross revenues remaining after payment of clauses (1), 
  3.28  (2), and (3) in section 473I.11, subdivision 2. 
  3.29     Sec. 4.  [473I.04] [POWERS AND DUTIES.] 
  3.30     Subdivision 1.  [IN THIS SECTION.] The public authority has 
  3.31  all powers necessary or convenient to discharge the duties 
  3.32  imposed on it by law, including, but not limited to, those 
  3.33  specified in this act, in sections 473.551 to 473.599, and in 
  3.34  other law. 
  3.35     Subd. 2.  [USE JOINT POWERS.] The public authority may 
  3.36  jointly or cooperatively exercise powers under section 471.59, 
  4.1   according to the terms of that section, with any other 
  4.2   governmental unit that may make use of section 471.59 with 
  4.3   another entity. 
  4.4      Subd. 3.  [SITE; BASEBALL FACILITY.] (a) The public 
  4.5   authority and the owner, by mutual agreement, must select a site 
  4.6   for the baseball facility in the city.  The process to select 
  4.7   the site must include a procedure to set minimum specifications 
  4.8   for the site, including necessary or desirable appropriate 
  4.9   economic development possibilities on adjacent property.  The 
  4.10  process must consider the use of incremental revenue to public 
  4.11  entities, as a result of or in anticipation of the project, as 
  4.12  revenue sources for the funding of the project. 
  4.13     (b) The public authority and the owner, by mutual 
  4.14  agreement, must determine the program elements of the baseball 
  4.15  facility, including, but not limited to, capacity, suites, club 
  4.16  seats, clubs, and amenities.  The public authority and the 
  4.17  owner, by mutual agreement, must also determine the baseball 
  4.18  facility design, and the selection of the project construction 
  4.19  team, including the architect and general contractor. 
  4.20     Subd. 4.  [NEGOTIATIONS.] The public authority must 
  4.21  negotiate with the city or other governmental units to receive 
  4.22  some or all incremental revenue of whatever kind that flows to 
  4.23  the city or other local government units directly or indirectly 
  4.24  as a result of or in anticipation of the operation of the 
  4.25  baseball facility.  Revenue sources may include, but are not 
  4.26  limited to, transactions involving beverage sales, 
  4.27  entertainment, hotel occupancy, and parking.  The public 
  4.28  authority must also negotiate with appropriate governmental 
  4.29  entities, including the city, for necessary or appropriate 
  4.30  infrastructure to support the existence and operation of the 
  4.31  baseball facility, the movement of patrons to and from the 
  4.32  baseball facility, and their comfort, safety, and convenience 
  4.33  while in and around the baseball facility. 
  4.34     Subd. 5.  [EMINENT DOMAIN.] The public authority may 
  4.35  exercise the right of eminent domain under this act and chapter 
  4.36  117 to acquire a site for the baseball facility.  The obligation 
  5.1   of the public authority for the taking is limited to what is 
  5.2   compensable under the Minnesota and federal constitutions and 
  5.3   only to what is constitutionally required to be paid.  If the 
  5.4   public authority determines that the amount of compensation 
  5.5   required to be paid is excessive, the public authority may 
  5.6   abandon the condemnation process in whole or part. 
  5.7      Subd. 6.  [INTERGOVERNMENTAL FRANCHISE COMPETITION.] The 
  5.8   public authority may cooperate and contract with other political 
  5.9   entities in the United States, with which it may compete for 
  5.10  sports, exposition, and entertainment franchises and facilities 
  5.11  to form an entity to lobby the United States Congress to enact 
  5.12  legislation to prevent artificial competition among governmental 
  5.13  entities for sports, exposition, and entertainment franchises 
  5.14  and facilities. 
  5.15     Subd. 7.  [REVENUE BONDS.] The public authority may issue 
  5.16  and sell up to $....... of revenue bonds for site assembly.  The 
  5.17  revenue with which the principal and interest on the bonds is 
  5.18  paid may include some or all of any revenue received by the 
  5.19  public authority, as authorized in this act or in connection 
  5.20  with its ownership of the baseball facility.  The bonds must be 
  5.21  issued, sold, and secured in the manner provided in chapter 475, 
  5.22  for bonds payable solely from revenues, and the public authority 
  5.23  has the same powers and duties as a municipality and a 
  5.24  municipality's governing body in issuing bonds under chapter 
  5.25  475.  The public authority may pledge for the payment of bonds 
  5.26  the net revenues from the taxes and fees authorized in sections 
  5.27  473I.05 and 473I.07.  The bonds may be sold at any price and at 
  5.28  public or private sale as determined by the public authority.  
  5.29  The bonds are payable solely from the revenues to the public 
  5.30  authority attributable to the baseball facility and are not a 
  5.31  general obligation or debt of the public authority, and must not 
  5.32  be included in the net debt of any city, county, or other 
  5.33  subdivision of the state for the purpose of any net debt 
  5.34  limitation.  No election is required. 
  5.35     Subd. 8.  [REVENUE ANTICIPATION CERTIFICATES.] In 
  5.36  anticipation of the proceeds from the taxes imposed by or under 
  6.1   authority of this act and the revenues of the public authority 
  6.2   provided for in its budget, but subject to any limitation or 
  6.3   prohibition in a bond resolution or indenture, the public 
  6.4   authority may authorize the issuance, negotiation, and sale, in 
  6.5   the form and manner and upon the terms that it may determine, of 
  6.6   revenue anticipation certificates.  The principal amount of the 
  6.7   certificates outstanding may never exceed ....... percent of the 
  6.8   total amount of the tax and other revenues anticipated.  So much 
  6.9   of the anticipated tax and other revenues as may be needed for 
  6.10  the payment of the certificates and interest on them must be 
  6.11  paid into a special debt service fund established for the 
  6.12  certificates in the public authority's financial records.  The 
  6.13  proceeds of the certificates may be used for any purpose for 
  6.14  which the anticipated revenues or taxes may be used. 
  6.15     Subd. 9.  [DESIGN-BUILD.] In constructing the baseball 
  6.16  facility, the public authority must use the design-build method 
  6.17  of project development and construction as defined in Laws 1996, 
  6.18  chapter 463, section 58. 
  6.19     Subd. 10.  [LIMITATIONS.] (a) Except as provided in 
  6.20  paragraph (o), the public authority must not commit money for 
  6.21  the construction, acquisition, and betterment of the baseball 
  6.22  facility until after the public authority has made the 
  6.23  determinations in paragraphs (b) to (t). 
  6.24     (b) The public authority has executed agreements with the 
  6.25  owner to use the baseball facility for all scheduled regular 
  6.26  season and postseason home games.  The agreements must be for a 
  6.27  period of no less than 30 years, except as provided in paragraph 
  6.28  (p), and sections 473I.10 and 473I.11.  The agreements may 
  6.29  contain provisions negotiated with the owner that provide for 
  6.30  earlier termination of the use of the baseball facility upon 
  6.31  conditions related to and limited to the bankruptcy and 
  6.32  insolvency of the team.  The agreements shall afford to the 
  6.33  public authority or other public entity, as the public authority 
  6.34  deems appropriate, the remedies that are deemed necessary and 
  6.35  appropriate to provide reasonable assurances that the team and 
  6.36  the owner shall comply with the agreements.  The remedies may 
  7.1   include the payment of liquidated damages equivalent to direct 
  7.2   and consequential damages incurred by reason of the breach of 
  7.3   the agreements and any additional remedies or security 
  7.4   arrangements the public authority reasonably determines to be 
  7.5   effective in accomplishing the purpose of this subdivision.  At 
  7.6   any time after the effective date of this act, in the event of a 
  7.7   material breach of the agreements by the owner and the 
  7.8   subsequent failure to cure by the owner, the public authority 
  7.9   may exercise its option to purchase the team for $105,000,000.  
  7.10     The agreements between the public authority and the owner 
  7.11  must also provide that: 
  7.12     (1) the owner, in consultation with the public authority, 
  7.13  must provide for management of the baseball facility and may 
  7.14  contract with one or more entities to operate part or all of the 
  7.15  baseball facility; 
  7.16     (2) the owner, in consultation with the public authority, 
  7.17  may contract with one or more food and beverage purveyors to 
  7.18  provide food and beverages for the baseball facility; 
  7.19     (3) the public authority's profit is 49 percent of the net 
  7.20  operating profit of the baseball facility, as defined in section 
  7.21  473I.03, subdivision 8, less the admission tax or ticket 
  7.22  surcharge revenue received by the public authority; 
  7.23     (4) the owner and the public authority have developed a 
  7.24  procedure, mutually agreed upon, for the public authority to be 
  7.25  represented in the budgeting process for the team; and 
  7.26     (5) the owner and the public authority have developed 
  7.27  criteria for performance and operation of the baseball facility 
  7.28  and the team. 
  7.29     (c) The team and the owner has provided information 
  7.30  sufficient to satisfy the public authority of the team's and the 
  7.31  owner's ability to comply with the terms of the 30-year use 
  7.32  agreement. 
  7.33     (d) The public authority has acquired, or has contracted to 
  7.34  acquire, title to all real property including all easements and 
  7.35  other appurtenances needed for the construction and operation of 
  7.36  the baseball facility or has received a grant of funds or has 
  8.1   entered into agreements sufficient in the judgment of the public 
  8.2   authority to ensure the receipt of funds, at the time and in the 
  8.3   amount required, to make any payment upon which the public 
  8.4   authority's acquisition of title and possession of the real 
  8.5   property is conditioned. 
  8.6      (e) The public authority has received a grant of funds or 
  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 pay all costs, except as provided in this 
  8.10  subdivision, of clearing the real property needed for the 
  8.11  construction and operation of the baseball facility of all 
  8.12  buildings, railroad tracks, and other structures including, 
  8.13  without limitation, all relocation costs including utility 
  8.14  relocation costs and all legal costs. 
  8.15     (f) The public authority has executed agreements with 
  8.16  appropriate labor organizations and construction contractors 
  8.17  that provide that no labor strikes or management lockouts will 
  8.18  delay construction. 
  8.19     (g) The public authority has executed agreements to provide 
  8.20  for the construction of the baseball facility for a guaranteed 
  8.21  maximum price and substantial completion date of April 1, 2001, 
  8.22  and that include performance bonds in an amount at least equal 
  8.23  to 100 percent of the guaranteed maximum price to cover any 
  8.24  costs that may be incurred over and above the guaranteed maximum 
  8.25  price, including, but not limited to, costs incurred by the 
  8.26  public authority or loss of revenues resulting from incomplete 
  8.27  construction on the substantial completion date. 
  8.28     (h) By December 31, 1997, (1) at least 80 percent of the 
  8.29  private boxes provided for in the proposal for the baseball 
  8.30  facility are sold or leased for at least ten years, (2) at least 
  8.31  80 percent of the club seats provided for in the proposal for 
  8.32  the baseball facility are sold or leased for the opening season, 
  8.33  (3) pledges to purchase permanent seat licenses have been made, 
  8.34  as agreed to jointly by the owner and the public authority, and 
  8.35  (4) pledges to purchase 22,000 season tickets for the opening 
  8.36  season have been made.  If the provisions of this paragraph are 
  9.1   not met, either the owner or the public authority may require 
  9.2   negotiations for a baseball facility to cease. 
  9.3      (i) The owner has made a pledge, in a form satisfactory to 
  9.4   the public authority, to make a charitable gift of cash or 
  9.5   marketable securities of not less than $15,000,000 to be paid on 
  9.6   or before April 1, 2001. 
  9.7      (j) The owner has, in consultation with the public 
  9.8   authority, developed a private sector capital plan that includes 
  9.9   the sale or lease of some or all promotional rights in, or, and 
  9.10  around the baseball facility. 
  9.11     (k) The anticipated revenue from the operation of the 
  9.12  baseball facility plus any additional available revenue of the 
  9.13  public authority and the revenue from the taxes imposed by or 
  9.14  under public authority of this act is an amount sufficient to 
  9.15  pay when due all debt service, if any, plus all administration, 
  9.16  operating, and maintenance expense. 
  9.17     (l) The public authority has studied and considered the 
  9.18  needs of the University of Minnesota for athletic facilities for 
  9.19  the next 20 years. 
  9.20     (m) The public authority has entered into an agreement with 
  9.21  the brokerage firm to be used in connection with the issuance 
  9.22  and sale of the bonds or revenue anticipation certificate 
  9.23  guaranteeing that fees and charges payable to the brokerage firm 
  9.24  under the agreement, including any underwriting discounts, do 
  9.25  not exceed fees and charges customarily payable in connection 
  9.26  with the issuance and sale of bonds or revenue anticipation 
  9.27  certificates. 
  9.28     (n) The validity of any bonds issued under subdivision 7, 
  9.29  and the obligations of the public authority related to them, 
  9.30  must not be conditioned upon or impaired by the public 
  9.31  authority's determinations made under this subdivision.  For 
  9.32  purposes of issuing bonds, the determinations made by the public 
  9.33  authority are conclusive, and the public authority is obligated 
  9.34  for the security and payment of the bonds irrespective of 
  9.35  determinations that may be erroneous, inaccurate, or otherwise 
  9.36  mistaken. 
 10.1      (o) The public authority may use the appropriation advanced 
 10.2   to it in section 13 to carry out its duties under this 
 10.3   subdivision. 
 10.4      (p) The owner has entered into an enforceable contract with 
 10.5   the public authority providing the public authority with a 49 
 10.6   percent ownership interest in the team and providing the state, 
 10.7   or a political subdivision an option to acquire the team, as 
 10.8   provided in sections 473I.10 and 473I.11. 
 10.9      (q) The public authority and the owner have entered into an 
 10.10  agreement that obligates the owner to manage the team in good 
 10.11  faith so as to achieve profitable operation. 
 10.12     (r) The owner and the public authority have entered into an 
 10.13  agreement for the operation and maintenance of the baseball 
 10.14  facility. 
 10.15     (s) The public authority and the owner have entered into an 
 10.16  agreement that provides that the owner must: 
 10.17     (1) provide for the contractual arrangements relating to 
 10.18  naming rights and vendor agreements; 
 10.19     (2) use best efforts to obtain construction funds for the 
 10.20  baseball facility from major league baseball; and 
 10.21     (3) use best efforts to obtain a major league baseball 
 10.22  agreement for an all-star game in the baseball facility within 
 10.23  the first eight years following opening day. 
 10.24     (t) The public authority shall renegotiate the lease or use 
 10.25  agreement between the owner and the public authority for use of 
 10.26  the Metrodome in light of the pending construction of the 
 10.27  baseball facility.  The renegotiated agreement must provide that 
 10.28  the owner receive additional revenues equal to or greater than 
 10.29  the amount of the admissions tax collected by the team in the 
 10.30  Metrodome. 
 10.31     Subd. 11.  [PRIVATE CONTRIBUTIONS.] The public authority 
 10.32  may accept private contributions to further its public purposes. 
 10.33     Subd. 12.  [USE OF CERTAIN REVENUES.] No less than 
 10.34  $25,000,000 of revenues from the sale of naming rights, 
 10.35  concessionaire payments, and other project capital 
 10.36  opportunities, must be used to fund the baseball facility. 
 11.1      Subd. 13.  [AMATEUR ATHLETIC EVENTS.] The public authority, 
 11.2   jointly with the owner, must develop a scheduling system to make 
 11.3   the baseball facility reasonably available at net out-of-pocket 
 11.4   cost to amateur athletic events that do not conflict with major 
 11.5   league baseball or other scheduled revenue producing events.  
 11.6      Subd. 14.  [COMPATIBLE USES.] The public authority may do 
 11.7   what it considers appropriate to encourage and develop sports 
 11.8   and recreational opportunities, professional or otherwise, and 
 11.9   make arrangements, jointly with the owner, for the use of the 
 11.10  baseball facility for sports, recreation, entertainment, civic, 
 11.11  exposition, and other uses not incompatible with its primary 
 11.12  functions. 
 11.13     Subd. 15.  [CAPITAL REPAIR; IMPROVEMENTS.] The public 
 11.14  authority is responsible for capital repairs, improvements, and 
 11.15  enhancements and betterments necessary to maintain the baseball 
 11.16  facility as a state-of-the-art facility.  To the extent the 
 11.17  costs to maintain the facility as a state-of-the-art facility 
 11.18  exceed the funds in the capital improvement fund, the public 
 11.19  authority and the owner shall agree on the improvements to be 
 11.20  made. 
 11.21     Sec. 5.  [473I.05] [SPECIAL ECONOMIC DEVELOPMENT DISTRICT; 
 11.22  TAXES AND FEES.] 
 11.23     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
 11.24  finds that the construction of a baseball facility defined under 
 11.25  section 473I.03, subdivision 2, is a public improvement that has 
 11.26  regional and statewide economic benefits.  In addition, the 
 11.27  baseball facility will specifically benefit the class of persons 
 11.28  operating retail and service businesses within the surrounding 
 11.29  area.  The legislature finds that the designation by the public 
 11.30  authority of the area surrounding the baseball facility as a 
 11.31  special economic development district and the imposition of 
 11.32  taxes or fees within the district will more equitably apportion 
 11.33  the burdens of funding the baseball facility among the classes 
 11.34  of persons benefiting from the project. 
 11.35     Subd. 2.  [SPECIAL TAXES.] Notwithstanding section 
 11.36  477A.016, or any other limitation of law or charter, pursuant to 
 12.1   an agreement with the public authority under section 473I.04, 
 12.2   subdivision 4, the city or other local governmental unit may by 
 12.3   resolution impose liquor, entertainment, parking, and lodging 
 12.4   taxes or fees within the city or within the area within which 
 12.5   retail and service businesses receive special economic benefits 
 12.6   from the operation of the baseball facility, and so designated 
 12.7   by the city or other local governmental unit as a special 
 12.8   economic development district.  The resolution must provide for 
 12.9   dedication of the taxes or fees, after payment of collection and 
 12.10  administrative expenses and refunds, to payment of principal and 
 12.11  interest on bonds issued under section 473I.05, subdivision 7, 
 12.12  if any, or for general revenue for the purposes of this act, and 
 12.13  for the transfer of the taxes collected to the public authority 
 12.14  for those purposes. 
 12.15     Subd. 3.  [MINIMUM PAYMENTS.] The net revenues collected 
 12.16  under this section must be divided between the public authority 
 12.17  and the owner in proportion to the public authority's and the 
 12.18  owner's ownership interest in the team.  If the net revenues 
 12.19  collected under this section do not equal at least $3,000,000 
 12.20  per year, indexed after 1997 by the annual percentage change in 
 12.21  the consumer price index for urban consumers as prepared by the 
 12.22  United States Bureau of Labor Statistics, the state shall 
 12.23  reimburse the owner and the public authority an amount 
 12.24  sufficient to make up the difference. 
 12.25     Sec. 6.  [473I.06] [CONSTRUCTION MATERIALS; SALES TAX 
 12.26  EXEMPTION.] 
 12.27     Purchases of materials and supplies used or consumed in 
 12.28  constructing or incorporated into the construction of a baseball 
 12.29  facility defined under section 473I.03, subdivision 2, are 
 12.30  exempt from the taxes imposed under chapter 297A, and from any 
 12.31  sales and use tax imposed by a local unit of government 
 12.32  notwithstanding any ordinance or charter provision.  This 
 12.33  exemption applies regardless of whether the materials and 
 12.34  supplies are purchased by the owner of the baseball facility, 
 12.35  the construction managers, or by a contractor or subcontractor. 
 12.36     Sec. 7.  [473I.07] [FISCAL DISPARITIES EXEMPTION; TRANSFER 
 13.1   TO PUBLIC AUTHORITY.] 
 13.2      (a) The county auditor shall not include the taxable net 
 13.3   tax capacity of any development within the special economic 
 13.4   development district as defined in section 473I.05, subdivision 
 13.5   2, in determining the net tax capacity of the municipality under 
 13.6   section 473F.05. 
 13.7      (b) The city shall annually transfer to the public 
 13.8   authority an amount determined by multiplying the taxable net 
 13.9   tax capacity of development within the special economic 
 13.10  development district by the ratio determined pursuant to section 
 13.11  473F.08, subdivision 6, by the areawide tax rate determined 
 13.12  under section 473F.08, subdivision 5.  The amount transferred 
 13.13  must be used by the public authority to pay principal and 
 13.14  interest on bonds issued under section 473I.04, subdivision 7, 
 13.15  if any, or for other purposes of this act. 
 13.16     Sec. 8.  [473I.08] [EXEMPTION OF PROPERTY.] 
 13.17     Any real or personal property acquired, owned, leased, 
 13.18  controlled, used, or occupied by the public authority for any of 
 13.19  the purposes of this chapter is declared to be acquired, owned, 
 13.20  leased, controlled, used, and occupied for public, governmental, 
 13.21  and municipal purposes and is exempt from ad valorem taxation by 
 13.22  the state or any political subdivision of the state.  The 
 13.23  properties are subject to special assessments levied by a 
 13.24  political subdivision for a local improvement in amounts 
 13.25  proportionate to and not exceeding the special benefit received 
 13.26  by the properties from the improvement.  A possible use of the 
 13.27  properties in any manner different from their use under this act 
 13.28  at the time must not be considered in determining the special 
 13.29  benefit received by the properties.  Notwithstanding section 
 13.30  272.01, subdivision 2, or 273.19, real or personal property 
 13.31  leased by the public authority to another for the operation of 
 13.32  the baseball facility is exempt from taxation regardless of the 
 13.33  length of the lease. 
 13.34     Sec. 9.  [473I.09] [ADMISSION TAX; TICKET SURCHARGE.] 
 13.35     The public authority shall by resolution impose and 
 13.36  maintain an admission tax or ticket surcharge upon the granting, 
 14.1   issuance, sale, or distribution, by any private or public 
 14.2   person, association, or corporation, of the privilege of 
 14.3   admission to activities at the baseball facility.  No other tax, 
 14.4   surcharge, or governmental imposition, except the taxes imposed 
 14.5   by chapter 297A, may be levied by any other unit of government 
 14.6   upon any such sale or distribution.  The admission tax or ticket 
 14.7   surcharge must be stated and charged separately from the sales 
 14.8   price so far as practicable and must be collected by the 
 14.9   grantor, seller, or distributor from the person admitted and is 
 14.10  a debt from that person to the grantor, issuer, seller, or 
 14.11  distributor, and the tax required to be collected is a debt owed 
 14.12  by the grantor, issuer, seller, or distributor to the public 
 14.13  authority.  The debt is recoverable at law in the same manner as 
 14.14  other debts.  Every person who grants, issues, sells, or 
 14.15  distributes tickets for the admissions may be required, as 
 14.16  provided in resolutions of the public authority to secure a 
 14.17  permit, to file returns, to deposit security for the payment of 
 14.18  the tax, and to pay penalties for nonpayment and interest on 
 14.19  late payments, that are considered necessary or expedient to 
 14.20  ensure the prompt and uniform collection of the tax. 
 14.21     Sec. 10.  [473I.10] [PUBLIC PURCHASE AND SALE OF TEAM.] 
 14.22     Subdivision 1.  [GENERAL.] The owner shall enter into an 
 14.23  agreement, in form and substance acceptable to both the owner 
 14.24  and the public authority, that provides for the public authority 
 14.25  to purchase the team under the conditions in this section. 
 14.26     Subd. 2.  [BASEBALL RULES.] If the public authority 
 14.27  purchases the team, the owner may retain a minimal ownership 
 14.28  interest in the team with operational control, if required by 
 14.29  the major league baseball rules then in effect. 
 14.30     Subd. 3.  [NOTICE; PRICE.] The owner may sell the team to 
 14.31  the public authority for $105,000,000 no sooner than the fifth 
 14.32  anniversary of the first regular home game played in the 
 14.33  baseball facility, or April 1, 2006, whichever is earlier, 
 14.34  except as provided in subdivision 4.  The owner must provide a 
 14.35  written notice to the public authority and to the commissioner 
 14.36  of finance of the owner's intention to offer the team for sale 
 15.1   to the public authority at least one year before the obligation 
 15.2   of the public authority to purchase the team arises.  During the 
 15.3   one-year notice period, the public authority shall seek a 
 15.4   suitable private purchaser.  If a suitable private purchaser is 
 15.5   found, the sale price must be no less than the price that the 
 15.6   public authority would pay under this subdivision.  If, during 
 15.7   the one-year period, the public authority is not able to find a 
 15.8   suitable private purchaser, the public authority shall purchase 
 15.9   the team.  
 15.10     Subd. 4.  [DECLINE IN TEAM VALUE.] At any time after the 
 15.11  effective date of this act, if the value of the team declines by 
 15.12  ten percent or more below $105,000,000, as confirmed by an 
 15.13  appraisal process agreed upon by both parties, the public 
 15.14  authority may purchase the team for $105,000,000. 
 15.15     Subd. 5.  [APPRECIATION IN TEAM VALUE.] If the public 
 15.16  authority acquires the team under this section, the owner shall 
 15.17  receive ten percent of any appreciation in the team's value 
 15.18  above $105,000,000 in 2005, and an additional 2-1/2 percent each 
 15.19  year after 2005, up to a maximum of 25 percent. 
 15.20     Sec. 11.  [473I.11] [PROFIT SHARING.] 
 15.21     Subdivision 1.  [PROFITS; RENTS.] The public authority must 
 15.22  receive 49 percent of the net operating profits, less the 
 15.23  admissions tax or ticket surcharge revenue.  This allocation of 
 15.24  49 percent of the net operating profits represents a percentage 
 15.25  rent payment from the team. 
 15.26     Subd. 2.  [PRIORITY OF PAYMENTS.] Gross revenues of the 
 15.27  team must be allocated in the following order of priority: 
 15.28     (1) operating expenses of the team, including debt service 
 15.29  on no more than $21,000,000 of the team debt, unless otherwise 
 15.30  agreed to by the public authority and the owner, and excluding 
 15.31  seasonal working capital requirements; 
 15.32     (2) operating expenses of the baseball facility; 
 15.33     (3) funding of a capital improvement fund in an amount not 
 15.34  to exceed $700,000 per year, unless otherwise agreed to by the 
 15.35  public authority and the owner; and 
 15.36     (4) of the remaining gross revenues, payment to the public 
 16.1   authority of 49 percent, less an amount equal to any admissions 
 16.2   tax or ticket surcharge revenues received by the public 
 16.3   authority, and payment to the owner of the remainder. 
 16.4      If net operating profits in a year exceed $......., the 
 16.5   owner shall receive $....... before the allocation under clause 
 16.6   (4) is made. 
 16.7      Subd. 3.  [TEAM OPERATING EXPENSES; LOSS.] The owner shall 
 16.8   assume all risk for funding operating expenses of the team as 
 16.9   described in subdivision 2, clause (1).  The public authority is 
 16.10  not liable for any operating loss of the team.  The public 
 16.11  authority shall not reimburse the owner or any creditor of the 
 16.12  team for any operating loss of the team. 
 16.13     Subd. 4.  [GENERAL PARTNER.] The owner is the controlling 
 16.14  general partner.  The owner's compensation under this section is 
 16.15  limited exclusively to 51 percent of the team's net operating 
 16.16  profits and any incentive payment described in subdivision 2. 
 16.17     Sec. 12.  [473I.12] [ANNUAL APPROPRIATION.] 
 16.18     (a) For fiscal year 1998 and annually thereafter, the 
 16.19  commissioner of revenue shall certify to the legislature and to 
 16.20  the public authority the amount of tax receipts of the state 
 16.21  deposited in the public authority account according to sections 
 16.22  297.13, subdivision 1, paragraph (b), clauses (2) and (3); 
 16.23  297.32, subdivision 9; and article 2, section 6, subdivision 4.  
 16.24  The certified amount is appropriated to the authority. 
 16.25     (b) An amount equal to the amount appropriated in section 
 16.26  13 must be deducted from the amount that would otherwise be 
 16.27  appropriated for fiscal year 1998 under paragraph (a).  The 
 16.28  amount of the deduction must be transferred to the general fund. 
 16.29     Sec. 13.  [APPROPRIATION.] 
 16.30     $....... is appropriated for fiscal year 1997 from the 
 16.31  general fund to the public authority for the purposes of section 
 16.32  473I.04, subdivision 10, paragraph (o).  
 16.33                             ARTICLE 2 
 16.34     Section 1.  Minnesota Statutes 1996, section 11A.24, is 
 16.35  amended by adding a subdivision to read: 
 16.36     Subd. 6a.  [SPORTS AUTHORITY DEBT.] In addition to the 
 17.1   investments authorized in subdivisions 1 to 6, the state board 
 17.2   may invest funds in debt obligations of the public authority 
 17.3   defined in section 473I.03, subdivision 3. 
 17.4      Sec. 2.  [79.362] [ADDITIONAL POWERS.] 
 17.5      In addition to the powers granted in sections 79.35 and 
 17.6   79.36, the reinsurance association may invest in debt 
 17.7   obligations of the public authority defined in section 473I.03, 
 17.8   subdivision 3. 
 17.9      Sec. 3.  Minnesota Statutes 1996, section 80A.15, is 
 17.10  amended by adding a subdivision to read: 
 17.11     Subd. 1a.  [ADDITIONAL EXEMPT SECURITIES.] Any security 
 17.12  evidencing a share in the public authority's ownership interest 
 17.13  in a Minnesota major league professional baseball team is exempt 
 17.14  from sections 80A.08 and 80A.16. 
 17.15     Sec. 4.  Minnesota Statutes 1996, section 297.02, 
 17.16  subdivision 1, is amended to read: 
 17.17     Subdivision 1.  [RATES.] A tax is hereby imposed upon the 
 17.18  sale of cigarettes in this state or having cigarettes in 
 17.19  possession in this state with intent to sell and upon any person 
 17.20  engaged in business as a distributor thereof, at the following 
 17.21  rates, subject to the discount provided in section 297.03: 
 17.22     (1) On cigarettes weighing not more than three pounds per 
 17.23  thousand, 24 29 mills on each such cigarette; 
 17.24     (2) On cigarettes weighing more than three pounds per 
 17.25  thousand, 48 58 mills on each such cigarette. 
 17.26     Sec. 5.  Minnesota Statutes 1996, section 297.03, 
 17.27  subdivision 5, is amended to read: 
 17.28     Subd. 5.  [SALE OF STAMPS.] The commissioner shall sell 
 17.29  stamps to any person licensed as a distributor at a discount of 
 17.30  1.0 .8 percent from the face amount of the stamps for the first 
 17.31  $1,500,000 of such stamps purchased in any fiscal year; and at a 
 17.32  discount of .60 .5 percent on the remainder of such stamps 
 17.33  purchased in any fiscal year.  The commissioner shall not sell 
 17.34  stamps to any other person.  The commissioner may prescribe the 
 17.35  method of shipment of the stamps to the distributor as well as 
 17.36  the quantities of stamps purchased.  
 18.1      Sec. 6.  [FLOOR STOCKS TAX.] 
 18.2      Subdivision 1.  [CIGARETTES.] A floor stocks tax is imposed 
 18.3   on every person engaged in business in this state as a 
 18.4   distributor, retailer, subjobber, vendor, manufacturer, or 
 18.5   manufacturer's representative of cigarettes, on the stamped 
 18.6   cigarettes and unaffixed stamps in the person's possession or 
 18.7   under the person's control at 12:01 a.m. on July 1, 1997.  The 
 18.8   tax is imposed at the following rates, subject to the discounts 
 18.9   in Minnesota Statutes, section 297.03: 
 18.10     (1) on cigarettes weighing not more than three pounds a 
 18.11  thousand, 5 mills on each cigarette; and 
 18.12     (2) on cigarettes weighing more than three pounds a 
 18.13  thousand, 10 mills on each cigarette. 
 18.14     Each distributor, by July 8, 1997, shall file a report with 
 18.15  the commissioner, in the form the commissioner prescribes, 
 18.16  showing the stamped cigarettes and unaffixed stamps on hand at 
 18.17  12:01 a.m. on July 1, 1997, and the amount of tax due on the 
 18.18  cigarettes and unaffixed stamps.  The tax imposed by this 
 18.19  section is due and payable by August 1, 1997, and after that 
 18.20  date bears interest as provided in Minnesota Statutes, section 
 18.21  270.75. 
 18.22     Each retailer, subjobber, vendor, manufacturer, or 
 18.23  manufacturer's representative shall file a return with the 
 18.24  commissioner, in the form the commissioner prescribes, showing 
 18.25  the cigarettes on hand at 12:01 a.m. on July 1, 1997, and pay 
 18.26  the tax due on them by August 1, 1997.  Tax not paid by the due 
 18.27  date bears interest as provided in Minnesota Statutes, section 
 18.28  270.75. 
 18.29     Subd. 2.  [TOBACCO PRODUCTS.] A floor stocks tax is imposed 
 18.30  upon every person engaged in business in this state as a 
 18.31  distributor of tobacco products, at the rate of seven percent of 
 18.32  the wholesale sales price of each tobacco product in the 
 18.33  person's possession or under the person's control at 12:01 a.m. 
 18.34  on July 1, 1997.  Each distributor, by July 8, 1997, shall file 
 18.35  a report with the commissioner, in the form the commissioner 
 18.36  prescribes, showing the tobacco products on hand at 12:01 a.m. 
 19.1   on July 1, 1997, and the amount of tax due on them.  The tax 
 19.2   imposed by this section less the discount provided in Minnesota 
 19.3   Statutes, section 297.35, subdivision 1, is due and payable by 
 19.4   August 1, 1997, and thereafter bears interest as provided in 
 19.5   Minnesota Statutes, section 270.75. 
 19.6      Subd. 3.  [AUDIT AND ENFORCEMENT.] The tax imposed by this 
 19.7   section is subject to the audit, assessment, and collection 
 19.8   provisions applicable to the taxes imposed under Minnesota 
 19.9   Statutes, chapter 297.  The commissioner may require a 
 19.10  distributor to receive and maintain copies of floor stock tax 
 19.11  returns filed by all persons requesting a credit for returned 
 19.12  cigarettes.  
 19.13     Subd. 4.  [DEPOSIT OF PROCEEDS.] The revenue from the tax 
 19.14  imposed under this section must be deposited by the commissioner 
 19.15  in the state treasury and credited to the public authority and 
 19.16  the youth smoking prevention education accounts in proportions 
 19.17  as provided in Minnesota Statutes, section 297.13, subdivision 1.
 19.18     Sec. 7.  Minnesota Statutes 1996, section 297.13, 
 19.19  subdivision 1, is amended to read: 
 19.20     Subdivision 1.  [CIGARETTE TAX APPORTIONMENT.] Revenues 
 19.21  received from taxes, penalties, and interest under sections 
 19.22  297.01 to 297.13 and from license fees and miscellaneous sources 
 19.23  of revenue shall be deposited by the commissioner of revenue in 
 19.24  the state treasury and credited as follows:  
 19.25     (a) first to the general obligation special tax bond debt 
 19.26  service account in each fiscal year the amount required to 
 19.27  increase the balance on hand in the account on each December 1 
 19.28  to an amount equal to the full amount of principal and interest 
 19.29  to come due on all outstanding bonds whose debt service is 
 19.30  payable primarily from the proceeds of the tax to and including 
 19.31  the second following July 1; and 
 19.32     (b) after the requirements of paragraph (a) have been met: 
 19.33     (1) the revenue produced by one mill of the tax on 
 19.34  cigarettes weighing not more than three pounds a thousand and 
 19.35  two mills of the tax on cigarettes weighing more than three 
 19.36  pounds a thousand must be credited to the Minnesota future 
 20.1   resources fund; 
 20.2      (2) the revenue due to 4.5 mills of tax per cigarette must 
 20.3   be credited to the public authority account; 
 20.4      (3) the revenue due to 0.5 mills of tax per cigarette must 
 20.5   be credited to the youth smoking prevention education account; 
 20.6   and 
 20.7      (4) the balance of the revenues derived from taxes, 
 20.8   penalties, and interest under sections 297.01 to 297.13 and from 
 20.9   license fees and miscellaneous sources of revenue shall be 
 20.10  credited to the general fund. 
 20.11     Sec. 8.  Minnesota Statutes 1996, section 297.32, 
 20.12  subdivision 1, is amended to read: 
 20.13     Subdivision 1.  A tax is hereby imposed upon all tobacco 
 20.14  products in this state and upon any person engaged in business 
 20.15  as a distributor thereof, at the rate of 35 42 percent of the 
 20.16  wholesale sales price of such tobacco products.  Such tax shall 
 20.17  be imposed at the time the distributor (1) brings, or causes to 
 20.18  be brought, into this state from without the state tobacco 
 20.19  products for sale; (2) makes, manufactures, or fabricates 
 20.20  tobacco products in this state for sale in this state; or (3) 
 20.21  ships or transports tobacco products to retailers in this state, 
 20.22  to be sold by those retailers.  
 20.23     Sec. 9.  Minnesota Statutes 1996, section 297.32, 
 20.24  subdivision 2, is amended to read: 
 20.25     Subd. 2.  A tax is hereby imposed upon the use or storage 
 20.26  by consumers of tobacco products in this state, and upon such 
 20.27  consumers, at the rate of 35 42 percent of the cost of such 
 20.28  tobacco products.  
 20.29     The tax imposed by this subdivision shall not apply if the 
 20.30  tax imposed by subdivision 1 on such tobacco products has been 
 20.31  paid.  
 20.32     This tax shall not apply to the use or storage of tobacco 
 20.33  products in quantities of: 
 20.34     1.  not more than 50 cigars; 
 20.35     2.  not more than ten oz. snuff or snuff powder; 
 20.36     3.  not more than one lb. smoking or chewing tobacco or 
 21.1   other tobacco products not specifically mentioned herein, in the 
 21.2   possession of any one consumer.  
 21.3      Sec. 10.  Minnesota Statutes 1996, section 297.32, 
 21.4   subdivision 9, is amended to read: 
 21.5      Subd. 9.  Revenue derived from the taxes imposed by this 
 21.6   section must be deposited by the commissioner in the state 
 21.7   treasury and credited as follows: 
 21.8      (1) 90 percent of the revenue produced by a tax of seven 
 21.9   percent of the wholesale sales price of the tobacco products 
 21.10  under subdivision 1 and of the cost of the tobacco products 
 21.11  under subdivision 2 must be credited to the public authority 
 21.12  account and ten percent must be credited to the youth smoking 
 21.13  prevention education account; and 
 21.14     (2) the balance of the revenue shall be credited to the 
 21.15  general fund. 
 21.16     Sec. 11.  Minnesota Statutes 1996, section 297.35, 
 21.17  subdivision 1, is amended to read: 
 21.18     Subdivision 1.  On or before the 18th day of each calendar 
 21.19  month every distributor with a place of business in this state 
 21.20  shall file a return with the commissioner showing the quantity 
 21.21  and wholesale sales price of each tobacco product (1) brought, 
 21.22  or caused to be brought, into this state for sale; and (2) made, 
 21.23  manufactured, or fabricated in this state for sale in this 
 21.24  state, during the preceding calendar month.  Every licensed 
 21.25  distributor outside this state shall in like manner file a 
 21.26  return showing the quantity and wholesale sales price of each 
 21.27  tobacco product shipped or transported to retailers in this 
 21.28  state to be sold by those retailers, during the preceding 
 21.29  calendar month.  Returns shall be made upon forms furnished and 
 21.30  prescribed by the commissioner and shall contain such other 
 21.31  information as the commissioner may require.  Each return shall 
 21.32  be accompanied by a remittance for the full tax liability shown 
 21.33  therein, less 1.5 1.2 percent of such liability as compensation 
 21.34  to reimburse the distributor for expenses incurred in the 
 21.35  administration of sections 297.31 to 297.39.  The return for the 
 21.36  May liability and 75 percent of the estimated June liability is 
 22.1   due on the date payment of the tax is due. 
 22.2      A distributor having a liability of $120,000 or more during 
 22.3   a fiscal year ending June 30 must remit all liabilities in the 
 22.4   subsequent calendar year by means of a funds transfer as defined 
 22.5   in section 336.4A-104, paragraph (a).  The funds transfer 
 22.6   payment date, as defined in section 336.4A-401, must be on or 
 22.7   before the date the tax is due.  If the date the tax is due is 
 22.8   not a funds transfer business day, as defined in section 
 22.9   336.4A-105, paragraph (a), clause (4), the payment date must be 
 22.10  on or before the funds transfer business day next following the 
 22.11  date the tax is due.