HF 1368

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; providing a process for community ownership of
the Minnesota Twins; proposing coding for new law as Minnesota Statutes,
chapter 4B.

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

Section 1.

new text begin [4B.01] PURPOSE.
new text end

new text begin The legislature determines that:
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new text begin (1) a professional baseball franchise is an important asset to the state of Minnesota
and ensuring that a franchise remains in Minnesota is an important public purpose;
new text end

new text begin (2) providing broad-based local ownership of a major league baseball franchise
develops trust among fans, taxpayers, and the team, and helps ensure this important asset
will remain in the state;
new text end

new text begin (3) providing community ownership of a professional baseball franchise ensures that
the financial benefits of any increased value of the franchise will accrue to those members
of the community who own the franchise; and
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new text begin (4) enacting legislation providing for community ownership indicates to major
league baseball continuing support for professional baseball in Minnesota.
new text end

Sec. 2.

new text begin [4B.02] ACQUISITION.
new text end

new text begin The governor and the Metropolitan Sports Facilities Commission must attempt to
facilitate the formation of a corporation to acquire the baseball franchise and to identify
an individual private managing owner of the corporation. The corporation formed to
acquire the franchise shall have a capital structure in compliance with all of the following
provisions:
new text end

new text begin (1) there may be two classes of capital stock: common stock and preferred stock.
Both classes of stock must give holders voting rights with respect to any relocation or
voluntary contraction of the franchise;
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new text begin (2) the private managing owner must own no less than 25 percent and no more than
35 percent of the common stock. For purposes of this restriction, shares of common stock
owned by the private managing owner include shares of common stock owned by any
related taxpayer as defined in section 1313(c) of the Internal Revenue Code of 1986, as
amended. Other than the rights of all other holders of common stock and preferred stock
with respect to relocation or voluntary contraction of the franchise, the private managing
owner must control all aspects of the operation of the corporation;
new text end

new text begin (3) other than the private managing owner, no individual or entity may own more
than five percent of the common stock of the corporation;
new text end

new text begin (4) at least 50 percent of the ownership of the common stock must be sold to
members of the general public in a general solicitation and a person or entity must not
own more than one percent of common stock of the corporation; and
new text end

new text begin (5) the articles of incorporation, bylaws, and other governing documents must
provide that the franchise may not move outside of the state or agree to voluntary
contraction without approval of at least 75 percent of the shares of common stock and at
least 75 percent of the shares of preferred stock. Notwithstanding any law to the contrary,
these 75 percent approval requirements shall not be amended by the shareholders or
by any other means.
new text end

new text begin Except as specifically provided by this act, no state agency may spend money from
any state fund for the purpose of generating revenue under this subdivision or for the
purpose of providing operating support or defraying operating losses of a professional
baseball franchise.
new text end