HF 2201

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to baseball; providing for a process to 
  1.3             construct, fund, maintain, and govern a major league 
  1.4             baseball stadium; providing for powers and duties of 
  1.5             the metropolitan sports facilities commission; 
  1.6             authorizing certain taxes, revenue distributions, 
  1.7             bonds and other debt obligations, and allocations; 
  1.8             appropriating money; amending Minnesota Statutes 1996, 
  1.9             sections 240.15, subdivision 1; 297A.02, subdivision 
  1.10            3; 297A.259; 297E.02, subdivision 6; 473.551, 
  1.11            subdivision 8, and by adding subdivisions; 473.552; 
  1.12            473.553, subdivision 1; 473.556, subdivisions 3, 4, 5, 
  1.13            and by adding subdivisions; and 609.761, by adding a 
  1.14            subdivision; proposing coding for new law in Minnesota 
  1.15            Statutes, chapters 349A; and 473; proposing coding for 
  1.16            new law as Minnesota Statutes, chapter 473I. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18                             ARTICLE 1
  1.19                   BASEBALL STADIUM CONSTRUCTION
  1.20     Section 1.  Minnesota Statutes 1996, section 473.551, 
  1.21  subdivision 8, is amended to read: 
  1.22     Subd. 8.  [SPORTS FACILITY OR SPORTS FACILITIES.] "Sports 
  1.23  facility" or "sports facilities" means real or personal property 
  1.24  comprising a stadium, stadiums, or arenas suitable for 
  1.25  university or major league professional baseball, for university 
  1.26  or major league professional football and soccer, or for both, 
  1.27  or for university or major league hockey or basketball, or for 
  1.28  both, together with adjacent parking facilities, including on 
  1.29  the effective date of Laws 1994, chapter 648, the metrodome, the 
  1.30  baseball stadium, the met center, and, upon acquisition by the 
  1.31  commission, the basketball and hockey arena. 
  2.1      Sec. 2.  Minnesota Statutes 1996, section 473.551, is 
  2.2   amended by adding a subdivision to read: 
  2.3      Subd. 18.  [BASEBALL STADIUM.] "Baseball stadium" means a 
  2.4   stadium owned by the commission and designed for playing major 
  2.5   league professional baseball, as specified in section 473.5991. 
  2.6      Sec. 3.  Minnesota Statutes 1996, section 473.551, is 
  2.7   amended by adding a subdivision to read: 
  2.8      Subd. 19.  [BASEBALL STADIUM REVENUE.] "Baseball stadium 
  2.9   revenue" means all revenue received by or payable to the 
  2.10  commission for purposes of the baseball stadium, including all 
  2.11  money credited to the baseball stadium account under sections 
  2.12  349A.16, subdivision 8, clause (1), and 473I.02. 
  2.13     Sec. 4.  Minnesota Statutes 1996, section 473.551, is 
  2.14  amended by adding a subdivision to read: 
  2.15     Subd. 20.  [BASEBALL TEAM.] "Baseball team" means a major 
  2.16  league professional baseball team. 
  2.17     Sec. 5.  Minnesota Statutes 1996, section 473.551, is 
  2.18  amended by adding a subdivision to read: 
  2.19     Subd. 21.  [CITY.] "City" means the city of Minneapolis. 
  2.20     Sec. 6.  Minnesota Statutes 1996, section 473.551, is 
  2.21  amended by adding a subdivision to read: 
  2.22     Subd. 22.  [OWNER.] "Owner" means the individual or 
  2.23  individuals acting in concert, or a legal entity other than the 
  2.24  commission, who directly or indirectly owns at least a majority 
  2.25  or controlling interest in the baseball team. 
  2.26     Sec. 7.  Minnesota Statutes 1996, section 473.552, is 
  2.27  amended to read: 
  2.28     473.552 [LEGISLATIVE POLICY; PURPOSE.] 
  2.29     The legislature finds that: 
  2.30     (a) (1) the population in the metropolitan area has a need 
  2.31  for sports facilities and that this need cannot be met 
  2.32  adequately by the activities of individual municipalities, by 
  2.33  agreements among municipalities, or by the private efforts of 
  2.34  the people in the metropolitan area,; 
  2.35     (b) (2) the commission's ownership and operation of the 
  2.36  metrodome and met center has met in part the foregoing need and 
  3.1   has promoted the economic and social interests of the 
  3.2   metropolitan area, of the state, and of the public, and; 
  3.3      (c) (3) the commission's acquisition of the basketball and 
  3.4   hockey arena on the terms and conditions provided in sections 
  3.5   473.598 and 473.599 shall similarly and more fully meet the 
  3.6   foregoing needs and promote these interests; and 
  3.7      (4) the commission's construction and operation of the 
  3.8   baseball stadium by reasonable methods that the legislature and 
  3.9   the commission may devise will likewise meet the foregoing needs 
  3.10  and promote these interests. 
  3.11  It is therefore necessary for the public health, safety and 
  3.12  general welfare to establish a procedure for the acquisition and 
  3.13  betterment of sports facilities and to create a metropolitan 
  3.14  sports facilities commission. 
  3.15     Sec. 8.  Minnesota Statutes 1996, section 473.553, 
  3.16  subdivision 1, is amended to read: 
  3.17     Subdivision 1.  [GENERAL.] The metropolitan sports 
  3.18  facilities commission is established and as a local governmental 
  3.19  unit and political subdivision of the state that may exercise 
  3.20  its powers within the metropolitan area.  The commission shall 
  3.21  be organized, structured, and administered as provided in this 
  3.22  section. 
  3.23     Sec. 9.  Minnesota Statutes 1996, section 473.556, 
  3.24  subdivision 3, is amended to read: 
  3.25     Subd. 3.  [ACQUISITION OF PROPERTY.] The commission may 
  3.26  acquire by lease, purchase, gift, or devise all necessary right, 
  3.27  title, and interest in and to real or personal property deemed 
  3.28  necessary to the purposes contemplated by sections 473.551 to 
  3.29  473.599 within the limits of the metropolitan area.  The 
  3.30  commission may exercise the right of eminent domain under 
  3.31  chapter 117 to acquire a site for the baseball stadium.  The 
  3.32  obligation of the commission for the taking is limited to what 
  3.33  is compensable under the Minnesota and federal constitutions and 
  3.34  only to what is constitutionally required to be paid.  If the 
  3.35  commission determines that the amount of compensation required 
  3.36  to be paid is excessive, the commission may abandon the 
  4.1   condemnation process in whole or in part. 
  4.2      Sec. 10.  Minnesota Statutes 1996, section 473.556, 
  4.3   subdivision 4, is amended to read: 
  4.4      Subd. 4.  [EXEMPTION OF PROPERTY.] Any real or personal 
  4.5   property acquired, owned, leased, controlled, used, or occupied 
  4.6   by the commission for any of the purposes of sections 473.551 to 
  4.7   473.599 is declared to be acquired, owned, leased, controlled, 
  4.8   used and occupied for public, governmental, and municipal 
  4.9   purposes, and shall be exempt from ad valorem taxation by the 
  4.10  state or any political subdivision of the state, provided that 
  4.11  such properties shall be subject to special assessments levied 
  4.12  by a political subdivision for a local improvement in amounts 
  4.13  proportionate to and not exceeding the special benefit received 
  4.14  by the properties from the improvement.  No possible use of any 
  4.15  such properties in any manner different from their use under 
  4.16  sections 473.551 to 473.599 at the time shall be considered in 
  4.17  determining the special benefit received by the properties.  All 
  4.18  assessments shall be subject to final confirmation by the 
  4.19  council, whose determination of the benefits shall be conclusive 
  4.20  upon the political subdivision levying the assessment.  
  4.21  Notwithstanding the provisions of section 272.01, subdivision 2, 
  4.22  or 273.19, real or personal property leased by the commission to 
  4.23  another person for uses related to the purposes of sections 
  4.24  473.551 to 473.599, including the operation of the metrodome, 
  4.25  baseball stadium, met center, and, if acquired by the 
  4.26  commission, the basketball and hockey arena shall be exempt from 
  4.27  taxation regardless of the length of the lease.  The provisions 
  4.28  of this subdivision, insofar as they require exemption or 
  4.29  special treatment, shall not apply to any real property 
  4.30  comprising the met center which is leased by the commission for 
  4.31  residential, business, or commercial development or other 
  4.32  purposes different from those contemplated in sections 473.551 
  4.33  to 473.599. 
  4.34     Sec. 11.  Minnesota Statutes 1996, section 473.556, 
  4.35  subdivision 5, is amended to read: 
  4.36     Subd. 5.  [FACILITY OPERATION.] The commission may equip, 
  5.1   improve, operate, manage, maintain, and control the 
  5.2   metrodome, baseball stadium, met center, basketball and hockey 
  5.3   arena and sports facilities constructed, remodeled, or acquired 
  5.4   under the provisions of sections 473.551 to 473.599. 
  5.5      Sec. 12.  Minnesota Statutes 1996, section 473.556, is 
  5.6   amended by adding a subdivision to read: 
  5.7      Subd. 18.  [PRIVATE CONTRIBUTIONS.] Notwithstanding the 
  5.8   requirements of subdivision 9, the commission may accept private 
  5.9   contributions to further its public purposes with respect to the 
  5.10  baseball stadium.  Private contributions must be solicited by 
  5.11  the commission, the owner, and the baseball team.  The 
  5.12  contributions may be used by the commission for any purpose 
  5.13  under sections 473.5991 to 473.5993, including, but not limited 
  5.14  to, payment of revenue bonds or revenue anticipation 
  5.15  certificates issued under section 473.5993, or reducing or 
  5.16  eliminating any other liabilities of the commission under 
  5.17  sections 473.5991 to 473.5993. 
  5.18     Sec. 13.  Minnesota Statutes 1996, section 473.556, is 
  5.19  amended by adding a subdivision to read: 
  5.20     Subd. 19.  [BASEBALL STADIUM REVENUE.] The commission may 
  5.21  spend baseball stadium revenue to pay any reasonable expenses 
  5.22  necessary to administer, operate, or maintain the baseball 
  5.23  stadium or to pay debt service on bonds or other obligations 
  5.24  sold for purposes of the baseball stadium. 
  5.25     Sec. 14.  [473.5991] [BASEBALL STADIUM.] 
  5.26     Subdivision 1.  [ESSENTIAL CHARACTERISTICS.] The baseball 
  5.27  stadium must be designed for playing major league baseball and 
  5.28  no other major league spectator sport that uses a surface or 
  5.29  seating configuration different from major league baseball.  The 
  5.30  baseball stadium must have a retractable roof.  The baseball 
  5.31  stadium may include parking or other transit facilities for 
  5.32  patrons, performers, and employees and may include other 
  5.33  amenities to enhance or make the use of the baseball stadium 
  5.34  convenient and predictably accessible to all.  
  5.35     Subd. 2.  [DESIGN.] The commission and the baseball team 
  5.36  jointly shall determine the program elements of the baseball 
  6.1   stadium, including, but not limited to, capacity, suites, club 
  6.2   seats, clubs, and amenities.  The commission and the baseball 
  6.3   team jointly shall also determine the baseball stadium design 
  6.4   and the selection of the project construction team, including 
  6.5   the architect and general contractor. 
  6.6      Subd. 3.  [LOCATION.] The commission, after consultation 
  6.7   with the baseball team and the city, shall select a site for the 
  6.8   baseball stadium within the city.  The process to select the 
  6.9   site must include a procedure to set minimum specifications for 
  6.10  the site, including the necessary or desirable appropriate 
  6.11  economic development possibilities on adjacent property.  The 
  6.12  process must consider the use of incremental revenue to public 
  6.13  entities, as a result of or in anticipation of the project, as 
  6.14  revenue sources for funding the project.  The city must 
  6.15  contribute property or cash or infrastructure improvements with 
  6.16  a total value of at least $30,000,000 to facilitate the site 
  6.17  acquisition and development process. 
  6.18     Subd. 4.  [RELATED INFRASTRUCTURE.] The commission shall 
  6.19  negotiate with the appropriate governmental entities, including 
  6.20  the city of Minneapolis, Hennepin county, and the metropolitan 
  6.21  council for necessary or appropriate infrastructure improvements 
  6.22  to support the existence and operation of the baseball stadium, 
  6.23  the movement of patrons to and from the stadium, and their 
  6.24  comfort, safety, and convenience while in and around the 
  6.25  baseball stadium. 
  6.26     Subd. 5.  [CONSTRUCTION METHODS.] The commission may 
  6.27  contract for construction materials, supplies, and equipment in 
  6.28  accordance with section 471.345, except that the commission may 
  6.29  employ persons, firms, or corporations to perform one or more or 
  6.30  all of the functions of architect, engineer, construction 
  6.31  manager, or contractor for both design and construction, with 
  6.32  respect to all or part of a project to build or remodel sports 
  6.33  facilities.  Contractors shall be selected through the process 
  6.34  of public bidding, provided that the commission may narrow the 
  6.35  listing of eligible bidders to those the commission determines 
  6.36  to possess sufficient expertise to perform the intended 
  7.1   functions and the commission may negotiate with the three lowest 
  7.2   responsible bidders to achieve the lowest possible bid.  The 
  7.3   commission may require a construction manager to certify a 
  7.4   construction price and completion date to the commission.  The 
  7.5   commission may require the posting of a bond in an amount 
  7.6   determined by the commission to cover any costs that may be 
  7.7   incurred over and above the certified price, including, but not 
  7.8   limited to, costs incurred by the commission or loss of revenues 
  7.9   resulting from incomplete construction on the completion date 
  7.10  and any other obligations the commission may require the 
  7.11  construction manager to bear.  The commission shall secure 
  7.12  surety bonds as required in section 574.26 securing payment of 
  7.13  just claims in connection with all public work undertaken by 
  7.14  it.  Persons entitled to the protection of the bonds may enforce 
  7.15  them as provided in sections 574.28 to 574.32 and are not 
  7.16  entitled to a lien on any property of the commission under 
  7.17  sections 514.01 to 514.16. 
  7.18     Subd. 6.  [STADIUM COSTS.] The legislature intends that all 
  7.19  costs of constructing, operating, and maintaining the baseball 
  7.20  stadium will be paid by the combination of user charges, special 
  7.21  taxes, and state gaming facility proceeds provided for by this 
  7.22  act and that none of those costs will ever be paid by a tax of 
  7.23  statewide application. 
  7.24     Sec. 15.  [473.5992] [DETERMINATIONS BEFORE BONDS SOLD.] 
  7.25     Subdivision 1.  [REQUIREMENT.] The commission shall make 
  7.26  all the determinations required by this section before it 
  7.27  authorizes the sale of bonds under section 473.5993. 
  7.28     Subd. 2.  [30-YEAR USE AGREEMENT.] (a) The commission has 
  7.29  executed agreements with the baseball team to use the baseball 
  7.30  stadium for all scheduled regular season and postseason home 
  7.31  games for no less than 30 years, except as provided in this 
  7.32  subdivision.  The baseball team must make annual payments of no 
  7.33  less than $2,500,000 to the commission for the use of the 
  7.34  facility.  The agreements may contain provisions negotiated with 
  7.35  the baseball team that provide for earlier termination of the 
  7.36  use of the baseball stadium upon conditions related to and 
  8.1   limited to the bankruptcy and insolvency of the baseball team.  
  8.2      (b) The agreements shall afford to the commission, or to 
  8.3   another public entity as the commission deems appropriate, the 
  8.4   remedies that are deemed necessary and appropriate to provide 
  8.5   reasonable assurances that the baseball team and the owner will 
  8.6   comply with the agreements.  The remedies may include equitable 
  8.7   relief, the payment of liquidated damages equivalent to direct 
  8.8   and consequential damages incurred by reason of the breach of 
  8.9   the agreements, and any additional remedies or security 
  8.10  arrangements the commission reasonably determines to be 
  8.11  effective in accomplishing the purpose of this subdivision.  
  8.12     Subd. 3.  [OWNER'S ABILITY TO COMPLY.] The baseball team 
  8.13  and the owner have provided information sufficient to satisfy 
  8.14  the commission of the baseball team's and the owner's ability to 
  8.15  comply with the terms of the 30-year agreement. 
  8.16     Subd. 4.  [OWNER'S CONTRIBUTION.] The owner has made a 
  8.17  pledge, in a form satisfactory to the commission, to make a 
  8.18  donation to the commission of cash or marketable securities in 
  8.19  an amount not less than $100,000,000 to help pay the costs of 
  8.20  constructing the baseball stadium, to be paid before April 1, 
  8.21  1998. 
  8.22     Subd. 5.  [NAMING RIGHTS.] The commission has entered into 
  8.23  an agreement with the baseball team that provides to the 
  8.24  baseball team all revenues from naming rights and other project 
  8.25  capital opportunities. 
  8.26     Subd. 6.  [COMMISSION TITLE TO PROPERTY.] The commission 
  8.27  has acquired, or has contracted to acquire, title to all real 
  8.28  property including all easements and other appurtenances needed 
  8.29  for the construction and operation of the baseball stadium and 
  8.30  has received a grant of money or has entered into agreements 
  8.31  sufficient to ensure the receipt of money, at the time and in 
  8.32  the amount required, to make any payment upon which the 
  8.33  commission's acquisition of title and possession of the real 
  8.34  property is conditioned. 
  8.35     Subd. 7.  [SUFFICIENT MONEY FOR CLEARING PROPERTY.] The 
  8.36  commission has received a grant of money or entered into 
  9.1   agreements sufficient in the judgment of the commission to 
  9.2   ensure the receipt of money, at the time and in the amount 
  9.3   required, to pay all costs, except as provided in this section, 
  9.4   of clearing the real property needed for the construction and 
  9.5   operation of the baseball stadium of all buildings, railroad 
  9.6   tracks, and other structures including, without limitation, all 
  9.7   relocation costs including utility relocation costs and all 
  9.8   legal costs. 
  9.9      Subd. 8.  [GUARANTEED MAXIMUM PRICE.] The commission has 
  9.10  executed agreements to provide for the construction of the 
  9.11  baseball stadium for a guaranteed maximum price and substantial 
  9.12  completion date of April 1, 2001, and that include performance 
  9.13  bonds in an amount at least equal to 100 percent of the 
  9.14  guaranteed maximum price to cover any costs that may be incurred 
  9.15  over and above the guaranteed maximum price, including, but not 
  9.16  limited to, costs incurred by the commission or loss of revenues 
  9.17  resulting from incomplete construction on the substantial 
  9.18  completion date. 
  9.19     Subd. 9.  [NO STRIKES OR LOCKOUTS.] The commission has 
  9.20  executed agreements with appropriate labor organizations and 
  9.21  construction contractors that provide that no labor strikes or 
  9.22  management lockouts will delay construction. 
  9.23     Subd. 10.  [BASEBALL TEAM TO OPERATE STADIUM.] (a) The 
  9.24  commission has executed agreements with the baseball team that 
  9.25  provide for operation and maintenance of the baseball stadium.  
  9.26     (b) The agreements must provide that: 
  9.27     (1) the baseball team will manage the baseball stadium and, 
  9.28  with the approval of the commission, may contract with one or 
  9.29  more entities to operate part or all of the baseball stadium; 
  9.30  and 
  9.31     (2) the baseball team, with the approval of the commission, 
  9.32  may contract with one or more concessionaires to provide food 
  9.33  and beverages for the baseball stadium. 
  9.34     (c) The agreements must provide criteria for maintenance 
  9.35  and operation of the baseball stadium and remedies that may be 
  9.36  exercised by the commission to ensure that the criteria are met. 
 10.1      Subd. 11.  [MANAGEMENT OF BASEBALL TEAM.] The commission 
 10.2   and the owner have entered into an agreement that obligates the 
 10.3   owner to manage the baseball team in good faith so as to achieve 
 10.4   profitable operation. 
 10.5      Subd. 12.  [CAPITAL REPAIRS AND IMPROVEMENTS.] The 
 10.6   commission has established a baseball stadium capital repair and 
 10.7   improvement account and has entered into an agreement with the 
 10.8   team whereby $700,000 a year of the rent paid by the team 
 10.9   pursuant to subdivision 2 will be paid into the account to be 
 10.10  used by the commission to make any capital repairs, 
 10.11  improvements, enhancements, and betterments necessary to 
 10.12  maintain the baseball stadium.  The commission is not obligated 
 10.13  to spend money for these purposes in excess of the balance in 
 10.14  the capital repair and improvement account. 
 10.15     Subd. 13.  [REVENUES TO BE SUFFICIENT.] The commission has 
 10.16  determined that the anticipated baseball stadium revenue is an 
 10.17  amount sufficient to pay when due all debt service on the 
 10.18  revenue bonds and all administrative expenses and that the 
 10.19  anticipated revenue to the baseball team is an amount sufficient 
 10.20  to pay all operating and maintenance expenses of the baseball 
 10.21  stadium. 
 10.22     Sec. 16.  [473.5993] [DEBT OBLIGATIONS FOR BASEBALL 
 10.23  STADIUM.] 
 10.24     Subdivision 1.  [PURPOSES.] The commission may by 
 10.25  resolution authorize the sale and issuance of its revenue bonds 
 10.26  for the following purposes after determining that the conditions 
 10.27  imposed by section 473.5992 have been met: 
 10.28     (1) to acquire and better facilities for a baseball 
 10.29  stadium, including, but not limited to, site assembly and 
 10.30  construction; 
 10.31     (2) to reimburse the commission for its costs in making the 
 10.32  determinations required by section 473.5992, whenever incurred; 
 10.33     (3) to provide money for site assembly and construction of 
 10.34  the state gaming facility; 
 10.35     (4) to pay issuance costs and costs of bond insurance or 
 10.36  other credit enhancement for the bonds and to establish 
 11.1   necessary reserves for operating and debt service costs; 
 11.2      (5) to refund bonds issued under this section; and 
 11.3      (6) to fund judgments entered by any court against the 
 11.4   commission in matters relating to the commission's functions 
 11.5   related to the baseball stadium. 
 11.6      Subd. 2.  [AMOUNT.] (a) The principal amount of the bonds 
 11.7   issued under subdivision 1, clause (1), exclusive of any 
 11.8   original issue discount, may not exceed $....... 
 11.9      (b) The principal amount of the bonds issued under 
 11.10  subdivision 1, clause (3), exclusive of any original issue 
 11.11  discount, may not exceed $....... 
 11.12     Subd. 3.  [TAXABILITY.] The bonds may be issued as 
 11.13  tax-exempt revenue bonds or as taxable revenue bonds in the 
 11.14  proportions that the commission may determine. 
 11.15     Subd. 4.  [PROCEDURE.] The bonds shall be sold, issued, and 
 11.16  secured in the manner provided in chapter 475 for bonds payable 
 11.17  solely from revenues and the commission has the same powers and 
 11.18  duties as a municipality and its governing body in issuing bonds 
 11.19  under that chapter.  The bonds may be sold at any price and at 
 11.20  public or private sale as determined by the commission.  An 
 11.21  election is not required.  
 11.22     Subd. 5.  [NOT A GENERAL OR MORAL OBLIGATION.] The bonds 
 11.23  are payable solely from baseball stadium revenues and state 
 11.24  gaming facility revenues.  The bonds are not a general or moral 
 11.25  obligation or debt of the commission, any other political 
 11.26  subdivision of the state, or the state, and must not be included 
 11.27  in the net debt of any city, county, or other subdivision of the 
 11.28  state for the purpose of any net debt limitation.  The state 
 11.29  does not assume any obligation or liability for bonds sold or 
 11.30  issued under this section.  
 11.31     Subd. 6.  [BROKERAGE FIRM AGREEMENT.] Before issuing debt 
 11.32  under this section, the commission must enter into an agreement 
 11.33  with the brokerage firm to be used in connection with the sale 
 11.34  and issuance of the bonds or revenue anticipation certificates 
 11.35  under this section, guaranteeing that fees and charges payable 
 11.36  to the brokerage firm under the agreement, including any 
 12.1   underwriting discounts, do not exceed fees and charges 
 12.2   customarily payable in connection with the sale and issuance of 
 12.3   bonds or revenue anticipation certificates. 
 12.4      Subd. 7.  [SECURITY.] Baseball stadium revenues must be and 
 12.5   remain pledged and appropriated for the payment of all necessary 
 12.6   and reasonable expenses of the operation, administration, 
 12.7   maintenance, and debt service of the baseball stadium until all 
 12.8   bonds and certificates issued under this section are fully paid 
 12.9   or discharged in accordance with law.  Bonds issued under this 
 12.10  section may be secured by a bond resolution, or by a trust 
 12.11  indenture entered into by the commission with a corporate 
 12.12  trustee within or outside the state, which must define the 
 12.13  baseball stadium revenues pledged for the payment and security 
 12.14  of the bonds.  The pledge is a valid charge on the baseball 
 12.15  stadium revenues from the date when bonds are first issued or 
 12.16  secured under the resolution or indenture and secure the payment 
 12.17  of principal and interest and redemption premiums when due and 
 12.18  the maintenance at all times of a reserve securing the 
 12.19  payments.  No mortgage of or security interest in any tangible 
 12.20  real or personal property is granted to the bondholders or the 
 12.21  trustee, but they have a valid security interest in all baseball 
 12.22  stadium revenues and accounts receivable by the commission under 
 12.23  this section, as against the claims of all other persons in 
 12.24  tort, contract, or otherwise, irrespective of whether the 
 12.25  parties have notice of the claims, and without possession or 
 12.26  filing as provided in the uniform commercial code or any other 
 12.27  law.  In the bond resolution or trust indenture the commission 
 12.28  may make any covenants that are determined to be usual and 
 12.29  reasonably necessary for the protection of the bondholders.  No 
 12.30  pledge, mortgage, covenant, or agreement securing bonds may be 
 12.31  impaired, revoked, or amended by law or by action of the 
 12.32  commission or city, except in accordance with the terms of the 
 12.33  resolution or indenture under which the bonds are issued, until 
 12.34  the obligations of the commission under the resolution or 
 12.35  indenture are fully discharged. 
 12.36     Subd. 8.  [DEBT SERVICE RESERVE ACCOUNT.] The commission 
 13.1   must establish a debt service reserve account or provide 
 13.2   adequate insurance in lieu of this account.  The commission 
 13.3   shall deposit in the account baseball stadium revenue and other 
 13.4   money the commission receives to ensure payment of the bonds 
 13.5   issued under this section as provided in the bond resolution or 
 13.6   trust indenture. 
 13.7      Subd. 9.  [REVENUE ANTICIPATION CERTIFICATES.] Upon final 
 13.8   adoption by the commission of an annual budget of the 
 13.9   commission, including the baseball stadium revenues, and in 
 13.10  anticipation of the baseball stadium revenues and the revenues 
 13.11  of the commission provided for in the budget, but subject to any 
 13.12  limitation or prohibition in a bond resolution or indenture, the 
 13.13  commission may authorize the issuance, negotiation, and sale, in 
 13.14  the form and manner and upon the terms it may determine, of 
 13.15  revenue anticipation certificates.  The principal amount of the 
 13.16  certificates outstanding may at no time exceed 25 percent of the 
 13.17  total amount of the revenues anticipated.  The certificates must 
 13.18  mature no later than three months after the close of the budget 
 13.19  year.  So much of the anticipated baseball stadium revenues as 
 13.20  may be needed for the payment of the certificates and interest 
 13.21  thereon shall be paid into a special debt service fund 
 13.22  established for the certificates in the commission's financial 
 13.23  records.  If for any reason the anticipated revenues are 
 13.24  insufficient, the certificates and interest must be paid from 
 13.25  the first revenues received, subject to any limitation or 
 13.26  prohibition in a bond resolution or indenture.  The proceeds of 
 13.27  the certificates may be used for any purpose for which the 
 13.28  anticipated revenues may be used or for any purpose for which 
 13.29  bond proceeds under subdivision 1 may be used. 
 13.30     Subd. 10.  [VALIDITY OF DEBT ISSUED.] The validity of any 
 13.31  bonds issued under this section and the obligations of the 
 13.32  commission related to them must not be conditioned upon or 
 13.33  impaired by the commission's determinations made under section 
 13.34  473.5992.  For the purposes of issuing bonds, the determinations 
 13.35  made by the commission are conclusive, and the commission is 
 13.36  obligated for the security and payment of the bonds, but only 
 14.1   from the sources pledged thereto, irrespective of determinations 
 14.2   that may be erroneous, inaccurate, or otherwise mistaken. 
 14.3      Sec. 17.  [INSTRUCTION TO REVISOR.] 
 14.4      In the next edition of Minnesota Statutes, the revisor of 
 14.5   statutes shall change references to Minnesota Statutes, sections 
 14.6   473.551 to 473.599 to read "473.551 to 473.5593." 
 14.7      Sec. 18.  [EFFECTIVE DATE; APPLICATION.] 
 14.8      This article applies in the counties of Anoka, Carver, 
 14.9   Dakota, Hennepin, Ramsey, Scott, and Washington.  This article 
 14.10  is effective July 1, 1997. 
 14.11                             ARTICLE 2 
 14.12                       STATE GAMING FACILITY 
 14.13     Section 1.  Minnesota Statutes 1996, section 297A.259, is 
 14.14  amended to read: 
 14.15     297A.259 [LOTTERY TICKETS; IN LIEU TAX.] 
 14.16     (a) Sales of state lottery tickets are exempt from the tax 
 14.17  imposed under section 297A.02.  
 14.18     (b) The state lottery must on or before the 20th day of 
 14.19  each month transmit to the commissioner of revenue an amount 
 14.20  equal to the gross receipts from the sale of lottery tickets for 
 14.21  the previous month multiplied by the combined tax rate under 
 14.22  sections 297A.02, subdivision 1, and 297A.021, subdivision 1.  
 14.23  The resulting payment is in lieu of the sales tax that otherwise 
 14.24  would be imposed by this chapter.  The commissioner shall 
 14.25  deposit the money transmitted under this paragraph as provided 
 14.26  by section 297A.44 and the money must be treated as other 
 14.27  proceeds of the sales tax.  Gross receipts for purposes of this 
 14.28  section paragraph mean the proceeds of the sale of tickets 
 14.29  before deduction of a commission or other compensation paid to 
 14.30  the vendor or retailer for selling tickets. 
 14.31     (c) The state lottery must on or before the 20th day of 
 14.32  each month transmit to the commissioner of finance an amount 
 14.33  equal to 50 percent of the adjusted gross revenue from the 
 14.34  operation of a gaming facility under section 349A.16 for the 
 14.35  previous month.  The commissioner of finance shall deposit the 
 14.36  money transmitted under this paragraph in the state treasury to 
 15.1   be credited as provided in section 349A.16, subdivision 8.  The 
 15.2   resulting payment is in lieu of the sales tax that otherwise 
 15.3   would be imposed by this chapter.  The adjusted gross revenue 
 15.4   from the operation of a gaming facility under section 349A.16 
 15.5   means the revenue derived from that operation after the 
 15.6   deduction of prizes paid for games conducted at the facility and 
 15.7   before the deduction of any other expenses. 
 15.8      Sec. 2.  [349A.16] [STATE GAMING FACILITY.] 
 15.9      Subdivision 1.  [AUTHORIZATION; AGREEMENT.] The executive 
 15.10  council described in section 9.011 shall, by July 1, 1997, enter 
 15.11  into an agreement with the director of the state lottery under 
 15.12  which the director would establish and operate a gaming facility 
 15.13  at a site located in the metropolitan area defined in section 
 15.14  473.121, that is determined by the executive council, in 
 15.15  consultation with the director, to maximize state revenues from 
 15.16  the gaming facility operations. 
 15.17     Subd. 2.  [OPERATION.] The director shall construct, 
 15.18  purchase, or lease necessary equipment and facilities for the 
 15.19  operation of the gaming facility.  Contracts entered into under 
 15.20  this section are not subject to chapter 16B. 
 15.21     Subd. 3.  [EMPLOYEES.] The director may appoint personnel 
 15.22  as necessary to operate the gaming facility in accordance with 
 15.23  chapter 43A, except that all employees will be in the 
 15.24  unclassified service.  Section 349A.02, subdivision 6, applies 
 15.25  to all employees hired under this section. 
 15.26     Subd. 4.  [GAMES.] Games to be offered at the facility are 
 15.27  limited to blackjack, video games, pulltabs, and bingo.  The 
 15.28  director shall determine the rules for the games as provided 
 15.29  under section 349A.04.  Gaming machines in which a coin, token, 
 15.30  or currency is deposited in order to play a game, which use a 
 15.31  video display and a microprocessor or an electromagnetic device 
 15.32  with a spinning reel, must be provided at the facility.  
 15.33  Notwithstanding section 349A.13, clause (2), the director may 
 15.34  authorize a game or install a device that when operated by coin 
 15.35  or currency determines the winner of a game. 
 15.36     Subd. 5.  [PRIZES.] A person who plays a game at the gaming 
 16.1   facility agrees to be bound by the game procedures applicable to 
 16.2   that particular game.  The player acknowledges that the 
 16.3   determination of whether the player has won a prize is subject 
 16.4   to the rules of the director, game procedures established for 
 16.5   that game, claim procedures established for that game, any 
 16.6   confidential or public validation procedures established by the 
 16.7   director for that game.  Any prize won at the gaming facility is 
 16.8   not subject to section 349A.08, subdivision 8. 
 16.9      Subd. 6.  [AGE RESTRICTIONS.] No person under the age of 18 
 16.10  may play any game at the gaming facility or win a prize from any 
 16.11  game at the facility. 
 16.12     Subd. 7.  [CONFLICT OF INTEREST.] The director or any 
 16.13  employee of the lottery, or a member of the immediate family of 
 16.14  the director or employee residing in the same household may not 
 16.15  play any game or win any prize from a game at the gaming 
 16.16  facility or have any interest in any contract entered into by 
 16.17  the director for the operation of the facility. 
 16.18     Subd. 8.  [USE OF NET PROCEEDS.] Within 30 days after the 
 16.19  end of each month, the director shall deposit in the state 
 16.20  treasury the proceeds from gaming conducted at the gaming 
 16.21  facility after payment of all expenses, including prizes and 
 16.22  payout of winnings, relating to the construction, maintenance, 
 16.23  and operation of the facility.  The remainder of the net 
 16.24  proceeds must be credited as follows in the order provided: 
 16.25     (1) each year, an amount sufficient to pay the debt service 
 16.26  on obligations issued under section 473.5993 shall be credited 
 16.27  to the baseball stadium account in the special revenue fund; 
 16.28     (2) $50,000,000 must be credited to a sports infrastructure 
 16.29  fund in the state treasury to be used exclusively for 
 16.30  construction of a new facility, or remodeling of an existing 
 16.31  facility, at a sight selected by the executive council described 
 16.32  in section 9.011 in the city of St. Paul for professional hockey 
 16.33  and other purposes, provided that no amount will be credited 
 16.34  under this clause after $50,000,000 has been credited for this 
 16.35  purpose; 
 16.36     (3) each year, $5,000,000 shall be credited to an amateur 
 17.1   sports facilities fund and is appropriated to the Minnesota 
 17.2   amateur sports commission to be spent as grants for facilities 
 17.3   and equipment for sports and recreational opportunities 
 17.4   primarily for persons under age 18; 
 17.5      (4) the commissioner of revenue shall annually determine 
 17.6   the amount sufficient to compensate the general fund for the tax 
 17.7   reductions provided in sections 240.15, subdivision 1, 297A.02, 
 17.8   subdivision 3, and 297E.02, subdivision 6; this amount must be 
 17.9   credited to the general fund each year; 
 17.10     (5) the amount necessary to increase the purses for races 
 17.11  as provided in section 240.13, subdivision 5, by five percent, 
 17.12  not to exceed $2,000,000 per year, is appropriated to the 
 17.13  Minnesota racing commission for this purpose; and 
 17.14     (6) all revenue not credited or appropriated under clauses 
 17.15  (1) to (5) must be credited to a property tax relief and 
 17.16  education aids fund to be used to implement programs that 
 17.17  provide property tax reductions and reform and improved funding 
 17.18  for K-12 education. 
 17.19     Sec. 3.  Minnesota Statutes 1996, section 609.761, is 
 17.20  amended by adding a subdivision to read: 
 17.21     Subd. 3.  [LOTTERY GAMING FACILITY.] Sections 609.755 and 
 17.22  609.76 do not prohibit the operation of a gaming facility or the 
 17.23  playing of any game at that facility under section 349A.16. 
 17.24     Sec. 4.  [APPROPRIATION.] 
 17.25     $....... is appropriated from the general fund to the 
 17.26  director of the lottery for the initial costs incurred for 
 17.27  establishing a gaming facility under section 349A.16 that are 
 17.28  not paid from the proceeds of obligations issued under section 
 17.29  473.5993.  The amount appropriated under this section must be 
 17.30  repaid to the general fund by the director, with interest at the 
 17.31  rate agreed to by the director of the lottery and the 
 17.32  commissioner of finance, within six months after the gaming 
 17.33  facility begins operation. 
 17.34                             ARTICLE 3
 17.35                   SPECIAL TAXES AND EXPENDITURES
 17.36     Section 1.  Minnesota Statutes 1996, section 240.15, 
 18.1   subdivision 1, is amended to read: 
 18.2      Subdivision 1.  [TAXES IMPOSED.] (a) From July 1, 1996, 
 18.3   until July 1, 1999, There is imposed a tax at the rate of six 
 18.4   percent of the amount in excess of $12,000,000 annually withheld 
 18.5   from all pari-mutuel pools by the licensee, including breakage 
 18.6   and amounts withheld under section 240.13, subdivision 4.  After 
 18.7   June 30, 1999, the tax is imposed on the total amount withheld 
 18.8   from all pari-mutuel pools.  For the purpose of this 
 18.9   subdivision, "annually" is the period from July 1 to June 30 of 
 18.10  the next year. 
 18.11     In addition to the above tax, the licensee must designate 
 18.12  and pay to the commission a tax of one percent of the total 
 18.13  amount bet on each racing day, for deposit in the Minnesota 
 18.14  breeders fund.  
 18.15     The taxes imposed by this clause must be paid from the 
 18.16  amounts permitted to be withheld by a licensee under section 
 18.17  240.13, subdivision 4.  
 18.18     (b) The commission may impose an admissions tax of not more 
 18.19  than ten cents on each paid admission at a licensed racetrack on 
 18.20  a racing day if:  
 18.21     (1) the tax is requested by a local unit of government 
 18.22  within whose borders the track is located; 
 18.23     (2) a public hearing is held on the request; and 
 18.24     (3) the commission finds that the local unit of government 
 18.25  requesting the tax is in need of its revenue to meet 
 18.26  extraordinary expenses caused by the racetrack. 
 18.27     Sec. 2.  Minnesota Statutes 1996, section 297A.02, 
 18.28  subdivision 3, is amended to read: 
 18.29     Subd. 3.  [LIQUOR AND BEER SALES.] Notwithstanding the 
 18.30  provisions of subdivision 1, the rate of the excise tax imposed 
 18.31  upon sales of intoxicating liquor, as defined in section 
 18.32  340A.101, subdivision 14, and 3.2 percent malt liquor, as 
 18.33  defined in section 340A.101, subdivision 19, shall be eight 
 18.34  percent for sales at on-sale establishments and nine percent 
 18.35  when sold at all other establishments.  The 3.2 percent malt 
 18.36  liquor is subject to taxation under this subdivision only when 
 19.1   sold at an on-sale or off-sale municipal liquor store or other 
 19.2   establishment licensed to sell any type of intoxicating liquor.  
 19.3      Sec. 3.  Minnesota Statutes 1996, section 297E.02, 
 19.4   subdivision 6, is amended to read: 
 19.5      Subd. 6.  [COMBINED RECEIPTS TAX.] In addition to the taxes 
 19.6   imposed under subdivisions 1 and 4, a tax is imposed on the 
 19.7   combined receipts of the organization.  As used in this section, 
 19.8   "combined receipts" is the sum of the organization's gross 
 19.9   receipts from lawful gambling less gross receipts directly 
 19.10  derived from the conduct of bingo, raffles, and paddlewheels, as 
 19.11  defined in section 297E.01, subdivision 8, for the fiscal year.  
 19.12  The combined receipts of an organization are subject to a tax 
 19.13  computed according to the following schedule: 
 19.14     If the combined receipts for the          The tax is:
 19.15     fiscal year are:
 19.16     Not over $500,000                   zero
 19.17     Over $500,000, but not over
 19.18     $700,000                            two percent of the amount
 19.19                                         over $500,000, but not
 19.20                                         over $700,000
 19.21     Over $700,000, but not over
 19.22     $900,000                            $4,000 plus four percent
 19.23                                         of the amount over
 19.24                                         $700,000, but not over
 19.25                                         $900,000
 19.26     Over $900,000                       $12,000 plus six percent
 19.27                                         of the amount over
 19.28                                         $900,000
 19.29     Not over $700,000                   zero
 19.30     Over $700,000, but not over
 19.31     $900,000                            two percent of the amount
 19.32                                         over $700,000, but not
 19.33                                         over $900,000
 19.34     Over $900,000, but not over
 19.35     $1,100,000                          $4,000 plus four percent
 19.36                                         of the amount over
 20.1                                          $900,000, but not over
 20.2                                          $1,100,000
 20.3      Over $1,100,000                     $12,000 plus six percent
 20.4                                          of the amount over
 20.5                                          $1,100,000
 20.6      Sec.  4.  [473I.01] [DEFINITIONS.] 
 20.7      Subdivision 1.  [APPLICATION.] The definitions in section 
 20.8   473.551 and in this section apply to this chapter. 
 20.9      Subd. 2.  [BASEBALL STADIUM.] "Baseball stadium" means the 
 20.10  baseball stadium located in the city of Minneapolis and 
 20.11  described in section 473.5991. 
 20.12     Subd. 3.  [COMMISSION.] "Commission" means the metropolitan 
 20.13  sports facilities commission. 
 20.14     Subd. 4.  [METROPOLITAN AREA.] "Metropolitan area" means 
 20.15  the metropolitan area defined in section 473.121, subdivision 2. 
 20.16     Sec. 5.  [473I.02] [BASEBALL STADIUM ACCOUNT.] 
 20.17     The baseball stadium account is created in the special 
 20.18  revenue fund in the state treasury.  All money credited to the 
 20.19  baseball stadium account is appropriated to the commissioner of 
 20.20  revenue for payment to the commission for purposes of the 
 20.21  baseball stadium.  The commission shall use all receipts from 
 20.22  the baseball stadium account to administer, operate, and 
 20.23  maintain the baseball stadium and to pay debt service on bonds 
 20.24  or other obligations sold for purposes of the baseball stadium. 
 20.25     Sec. 6.  [473I.03] [BASEBALL STADIUM DISTRICT; TAXES AND 
 20.26  FEES.] 
 20.27     Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
 20.28  finds that the construction of the baseball stadium is a public 
 20.29  improvement that has regional and statewide economic benefits.  
 20.30  In addition, the baseball stadium will specifically benefit the 
 20.31  class of persons operating retail and service businesses within 
 20.32  the surrounding area.  The legislature finds that the 
 20.33  designation by the commission, in agreement with the city of 
 20.34  Minneapolis and Hennepin county, of the area surrounding the 
 20.35  baseball stadium as a baseball stadium district and the 
 20.36  imposition of taxes or fees within the district will more 
 21.1   equitably apportion the burdens of funding the baseball stadium 
 21.2   among the classes of persons benefiting from the baseball 
 21.3   stadium. 
 21.4      Subd. 2.  [SPECIAL TAXES.] Notwithstanding section 
 21.5   477A.016, or any other limitation of law or charter, under an 
 21.6   agreement with the commission and Hennepin county, the city of 
 21.7   Minneapolis may by resolution impose liquor, entertainment, 
 21.8   parking, and lodging taxes or fees within the city or within the 
 21.9   area within which retail and service businesses receive special 
 21.10  economic benefits from the operation of the baseball stadium, 
 21.11  and that is designated by the commission, in agreement with the 
 21.12  city and Hennepin county, as a baseball stadium district.  The 
 21.13  district may not be greater than an area measured by a radius of 
 21.14  ..... blocks in any direction from the baseball stadium.  The 
 21.15  resolution must provide for dedication of the taxes or fees, 
 21.16  after payment of collection and administrative expenses and 
 21.17  refunds, to payment of principal and interest on bonds issued 
 21.18  under section 473.5993, if any, or for general revenue for the 
 21.19  purposes of the commission, and for the transfer of the taxes 
 21.20  collected to the commission for those purposes. 
 21.21     Subd. 3.  [EXPIRATION.] When the bonds and other debt to 
 21.22  which the revenues collected under this section have been 
 21.23  pledged have been defeased or retired, this section expires. 
 21.24     Sec. 7.  [473I.04] [STADIUM BOND BACKUP TAX.] 
 21.25     In order to secure the revenue bonds issued under section 
 21.26  473.5993, the commission may levy a tax as provided in section 
 21.27  473F.081.  The tax must be in an amount determined necessary, 
 21.28  together with other revenues available to the commission 
 21.29  attributable to the baseball stadium, to pay when due all debt 
 21.30  service on bonds and revenue anticipation certificates issued 
 21.31  under section 473.5993 and expenses of administration.  The levy 
 21.32  may not exceed the amount specified in section 473F.081, 
 21.33  subdivision 2.  The proceeds of the tax must be credited, 
 21.34  together with baseball stadium revenues, to the debt service 
 21.35  account and used to secure payment of debts of the commission 
 21.36  arising from its ownership of the baseball stadium. 
 22.1      Sec. 8.  [473I.05] [STADIUM INCOME SURTAX.] 
 22.2      Subdivision 1.  [TAX IMPOSED.] The commission may by 
 22.3   resolution impose a tax on the taxable net income of a qualified 
 22.4   employee of a sports organization that uses the baseball 
 22.5   stadium.  The tax equals four percent of the amount of taxable 
 22.6   net income over $100,000 for the taxable year. 
 22.7      Subd. 2.  [DEFINITIONS.] (a) The definitions in chapter 290 
 22.8   and in this subdivision apply to this section. 
 22.9      (b) A "qualified employee" means an employee who derives 
 22.10  wages, salaries, or other compensation of at least $100,000 for 
 22.11  the performance of personal services from a sports organization 
 22.12  for the taxable year. 
 22.13     (c) A "sports organization" means any organization that 
 22.14  operates a major league professional sports franchise.  A sports 
 22.15  organization includes a visiting team regardless of whether it 
 22.16  has a direct agreement with the owner or operator of the 
 22.17  baseball stadium. 
 22.18     Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 22.19  section must be collected in the manner provided for individual 
 22.20  income taxes imposed under chapter 290 and in accordance with an 
 22.21  agreement between the commission and the commissioner of 
 22.22  revenue.  The revenue from the tax must be deposited in the 
 22.23  baseball stadium account in the special revenue fund. 
 22.24     Sec. 9.  [473I.06] [PARKING TAX.] 
 22.25     Subdivision 1.  [TAX IMPOSED.] The commission may by 
 22.26  resolution impose a parking tax of not less than $1 per vehicle 
 22.27  per event at the baseball stadium.  The city shall collect the 
 22.28  tax on behalf of the commission in accordance with an agreement 
 22.29  with the commission. 
 22.30     Subd. 2.  [AREA OF APPLICATION.] The tax applies to parking 
 22.31  in the baseball stadium district designated under section 
 22.32  473I.03 and in any additional area providing event parking, as 
 22.33  mutually agreed by the city and commission. 
 22.34     Subd. 3.  [TERMS SET BY AGREEMENT.] The commission and city 
 22.35  shall mutually agree upon the terms and provisions of the tax, 
 22.36  including: 
 23.1      (1) the definition of event parking; 
 23.2      (2) any additional area in which the tax applies; 
 23.3      (3) procedures and times for payment of the tax; 
 23.4      (4) procedures and times for remitting proceeds to the 
 23.5   state; 
 23.6      (5) penalty and interest provisions; 
 23.7      (6) the method of determining the cost of collection; and 
 23.8      (7) other provisions with a material effect upon revenues 
 23.9   from the tax. 
 23.10     Subd. 4.  [DISPOSITION OF PROCEEDS.] The city must pay the 
 23.11  proceeds of the tax, including interest and penalties, less the 
 23.12  reasonable cost of collection, to the commissioner of revenue 
 23.13  for deposit in state treasury and credit to the baseball stadium 
 23.14  account in the special revenue fund. 
 23.15     Sec. 10.  [473I.07] [ADMISSION TAX; TICKET SURCHARGE.] 
 23.16     The commission may by resolution impose and maintain an 
 23.17  admission tax or ticket surcharge, or both, upon the granting, 
 23.18  issuance, sale, or distribution, by any private or public 
 23.19  person, association, or corporation, of the privilege of 
 23.20  admission to activities at the baseball stadium.  No other tax, 
 23.21  surcharge, or governmental imposition, except the taxes imposed 
 23.22  by chapter 297A, may be levied by any other unit of government 
 23.23  upon that sale or distribution.  If the commission imposes a 
 23.24  ticket surcharge, it must be at least $1 per ticket for the 
 23.25  seats affected.  The commission and the owner may by mutual 
 23.26  agreement exempt sections of the baseball stadium from the 
 23.27  ticket surcharge.  The admission tax or ticket surcharge must be 
 23.28  stated and charged separately from the sales price so far as 
 23.29  practicable and must be collected by the grantor, issuer, 
 23.30  seller, or distributor from the person admitted and is a debt 
 23.31  from that person to the grantor, issuer, seller, or distributor. 
 23.32  The tax required to be collected is a debt owed by the grantor, 
 23.33  issuer, seller, or distributor to the commission.  The debt is 
 23.34  recoverable at law in the same manner as other debts.  Every 
 23.35  person who grants, issues, sells, or distributes tickets for the 
 23.36  admissions may be required, as provided in resolutions of the 
 24.1   commission to secure a permit, to file returns, to deposit 
 24.2   security for the payment of the tax, and to pay penalties for 
 24.3   nonpayment and interest on late payments, that are considered 
 24.4   necessary or expedient to ensure the prompt and uniform 
 24.5   collection of the tax.  Receipts from the admission tax must be 
 24.6   used for purposes of the baseball stadium and credited to the 
 24.7   baseball stadium debt service account. 
 24.8      Sec. 11.  [473I.08] [STADIUM SALES TAX.] 
 24.9      Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
 24.10  chapter 297A and in this subdivision apply to this section. 
 24.11     (b) "Stadium sales" means any transaction, including 
 24.12  transfers of tangible personal property and provision of taxable 
 24.13  services, that occurs on the premises of the baseball stadium.  
 24.14  This includes, but is not limited to, concession sales and 
 24.15  skybox rentals but excludes purchases by the owner, operator, or 
 24.16  a tenant of the baseball stadium. 
 24.17     Subd. 2.  [TAX IMPOSED.] The commission may by resolution 
 24.18  impose a tax on stadium sales at the rate of nine percent.  This 
 24.19  tax is in lieu of all other taxes levied by any unit of 
 24.20  government on these sales, including the tax under section 
 24.21  297A.02, subdivision 1. 
 24.22     Subd. 3.  [COLLECTION; DEPOSIT.] The tax imposed by this 
 24.23  section must be collected in the manner provided for taxes 
 24.24  imposed under chapter 297A and in accordance with an agreement 
 24.25  between the commission and the commissioner of revenue.  All 
 24.26  revenues, including interest and penalties, derived from the tax 
 24.27  imposed on stadium sales must be deposited in the state treasury 
 24.28  and credited to the baseball stadium account in the special 
 24.29  revenue fund. 
 24.30     Sec. 12.  [SUNSET OF SPECIAL TAXES AND REVENUES.] 
 24.31     The tax increases provided in sections 6 to 11 expire on 
 24.32  the December 31 next following the date when all revenue bonds 
 24.33  issued under Minnesota Statutes, section 473.5993, have been 
 24.34  defeased or retired. 
 24.35     Sec. 13.  [APPLICATION.] 
 24.36     This article applies in the counties of Anoka, Carver, 
 25.1   Dakota, Hennepin, Ramsey, Scott, and Washington. 
 25.2      Sec. 14.  [EFFECTIVE DATE.] 
 25.3      Sections 1 to 3 are effective July 1, 1999. 
 25.4      Sections 4 to 7 are effective July 1, 1997. 
 25.5      Section 8 is effective for taxable years beginning after 
 25.6   December 31, 1997. 
 25.7      Sections 9 to 11 are effective for events occurring and for 
 25.8   admissions and sales made on or after January 1, 2001. 
 25.9                              ARTICLE 4
 25.10                       TRIBAL-STATE AGREEMENT
 25.11     Section 1.  [AGREEMENT ON GAMING ISSUES.] 
 25.12     Subdivision 1.  [NEGOTIATIONS REQUIRED.] The executive 
 25.13  council described in Minnesota Statutes, section 9.011, shall 
 25.14  enter into negotiations with the governing body of each Indian 
 25.15  tribe located within the boundaries of the state of Minnesota 
 25.16  that conducts either class II or III gambling, as defined in 
 25.17  section 4 of the Indian Gaming Regulatory Act, Public Law Number 
 25.18  100-497, and amendments to it. 
 25.19     Subd. 2.  [TRIBAL AGREEMENT.] The object of the negotiation 
 25.20  is to reach an agreement between the executive council and the 
 25.21  tribe under which the tribe agrees to: 
 25.22     (1) make payments to the state to compensate the state and 
 25.23  local governments for their costs related to the operation of 
 25.24  the tribe's gaming facilities, and additional revenue-sharing 
 25.25  payments required by the state; and 
 25.26     (2) make payment to the state that will be credited to an 
 25.27  Indian grant program fund and appropriated to the Indian affairs 
 25.28  council for: 
 25.29     (i) grants to projects to promote the economic and social 
 25.30  well-being of Indians residing in Minnesota who are not living 
 25.31  on reservations and are not receiving proceeds from tribal 
 25.32  gambling operations; and 
 25.33     (ii) grants to projects to promote the economic and social 
 25.34  well-being of Indians residing on Minnesota reservations that 
 25.35  receive minimal or no benefit from gaming operations. 
 25.36  The payments required to be made by each tribe shall be in an 
 26.1   amount deemed by the executive council to be proportionate to 
 26.2   the revenues derived by the tribe from its gaming operations.  
 26.3   The amount required to be paid under clause (1) to compensate 
 26.4   for local government costs shall be determined after 
 26.5   consultation with the local governments that have incurred the 
 26.6   costs; the payments received for that purpose shall be disbursed 
 26.7   by the commissioner of finance to the local governments. 
 26.8      Subd. 3.  [STATE AGREEMENT.] If the governing bodies of all 
 26.9   the Indian tribes described in subdivision 1 agree to make the 
 26.10  payments described in subdivision 2, the executive council must 
 26.11  agree that the state will not authorize any expansion of 
 26.12  gambling activities within the state for ten years after 
 26.13  enactment of this article.