Minnesota Legislature
HF 2513
3rd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 05/07/2001 | |
| 1st Engrossment | Posted on 05/15/2001 | |
| 2nd Engrossment | Posted on 05/16/2001 | |
| 3rd Engrossment | Posted on 05/18/2001 |
Current Version - 3rd Engrossment
1.1 A bill for an act 1.2 relating to a baseball park; making legislative 1.3 findings and stating the intent and purpose of the 1.4 legislation; authorizing sale of state revenue bonds, 1.5 providing for their security, and authorizing a loan 1.6 of their proceeds; providing for the deposit and 1.7 disposition of certain departmental earnings and state 1.8 license and service fees; authorizing a process for 1.9 and selection of a local unit of government to provide 1.10 a site for a baseball park; providing for financing, 1.11 construction, and naming rights for the baseball park; 1.12 authorizing certain covenants and agreements; creating 1.13 a baseball park loan fund; creating special revenue 1.14 and debt service funds; requiring the use of steel 1.15 produced in the United States from taconite produced 1.16 in Minnesota; providing for repayment of the loan and 1.17 for certain guarantees by certain parties; providing 1.18 for imposition of an admissions tax; imposing 1.19 obligations on the major league baseball team and the 1.20 commissioner of trade and economic development and the 1.21 governor; imposing certain conditions; authorizing the 1.22 evaluation of a possible Olympic bid; requiring 1.23 appointment of a special panel to make certain 1.24 findings and determinations to the governor and the 1.25 legislative commission on planning and fiscal policy; 1.26 making a revisor's instruction; providing certain 1.27 temporary tax exemptions; authorizing the governor to 1.28 authorize a loan after making a determination; 1.29 requiring reports; appropriating money; amending 1.30 Minnesota Statutes 2000, sections 246.18, by adding a 1.31 subdivision; 272.02, by adding a subdivision; 297A.71, 1.32 by adding a subdivision; proposing coding for new law 1.33 in Minnesota Statutes, chapters 16A; 116J. 1.34 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.35 Section 1. [FINDINGS AND INTENT.] 1.36 The legislature finds that major league professional 1.37 baseball has value to the citizens and economy of this state. 1.38 The legislature further finds that this value can and should be 1.39 protected through the construction of a new baseball park to 2.1 ensure the successful continuation of major league professional 2.2 baseball in Minnesota. The legislature finds that this goal 2.3 requires a public/private partnership. It is therefore the 2.4 intention of the legislature to support the construction of a 2.5 baseball park to be substantially financed with private support. 2.6 Sec. 2. [PURPOSE.] 2.7 This act is designed to provide tax incentives to encourage 2.8 and stimulate private investment in a publicly owned baseball 2.9 park. It is a further purpose of this act to move major league 2.10 baseball towards a revenue sharing agreement and an economic 2.11 system that makes baseball more competitive and protects the 2.12 financial interest of teams with below average revenues. 2.13 Therefore, a loan cannot be made until the governor, with advice 2.14 from a special panel and the legislative commission on planning 2.15 and fiscal policy, determines that major league baseball and the 2.16 major league baseball players' association have created a new 2.17 financial structure requiring the league to ensure 2.18 competitiveness among all major league professional baseball 2.19 teams, thereby enhancing the viability of any new baseball park. 2.20 Sec. 3. [16A.6702] [REVENUE BONDS; BASEBALL PARK.] 2.21 Subdivision 1. [AUTHORIZATION.] The commissioner of 2.22 finance is authorized to sell and issue state revenue bonds to 2.23 fund a loan to a local government unit in the metropolitan area 2.24 to finance up to one-half of the costs to design, acquire, 2.25 construct, furnish, and equip a baseball park to be owned by the 2.26 local government unit and leased to a major league professional 2.27 baseball team, as provided in sections 116J.425 to 116J.4292, 2.28 and to pay costs of issuance of the bonds. The proceeds of the 2.29 bonds are appropriated for these purposes. The principal amount 2.30 of the bonds shall not exceed $140,500,000. The bonds shall be 2.31 sold and issued upon such terms and in such manner as the 2.32 commissioner shall determine to be in the best interests of the 2.33 state. The final maturity of the bonds shall be not later than 2.34 June 30, 2034. 2.35 Subd. 2. [SECURITY; BONDS NOT PUBLIC DEBT.] The bonds and 2.36 the interest thereon shall be payable solely from repayments by 3.1 the local government unit in which the baseball park is located, 3.2 as provided in section 116J.426, and secured by the revenues 3.3 appropriated and transferred to the debt service fund 3.4 established for this purpose in subdivision 4 and investment 3.5 income thereon, and any bond reserve established for the bonds. 3.6 The bonds are not public debt, and the full faith, credit, and 3.7 taxing powers of the state are not pledged for their payment. 3.8 The bonds and the interest thereon shall not be paid, directly 3.9 or indirectly, in whole or in part, from a tax of statewide 3.10 application on any class of property, income, transaction, or 3.11 privilege. 3.12 Subd. 3. [SPECIAL REVENUE FUND.] There is established in 3.13 the state treasury a separate and special revenue fund for 3.14 deposit of revenues from net proceeds of the lottery in 3.15 accordance with section 349A.10, subdivision 5, money received 3.16 for payment or reimbursement of health care costs in accordance 3.17 with section 246.18, subdivision 7a, state license and service 3.18 fees as defined in section 16A.6703, and investment income 3.19 thereon. 3.20 Subd. 4. [DEBT SERVICE FUND.] There is established in the 3.21 state treasury a separate and special debt service fund. Money 3.22 transferred or appropriated to the fund and investment income 3.23 thereon on hand or required to be transferred to the fund shall 3.24 be used and are irrevocably appropriated for the payment of the 3.25 principal of and interest on the bonds authorized in this 3.26 section when due. 3.27 Subd. 5. [COVENANTS; AGREEMENTS.] The commissioner may, 3.28 for and on behalf of the state, enter into such covenants and 3.29 agreements not inconsistent with subdivisions 1 to 4 and 3.30 sections 246.18, subdivisions 4 and 6; and 349A.10, subdivision 3.31 5, as may be necessary or desirable to facilitate the sale and 3.32 issuance of the bonds on terms favorable to the state, 3.33 including, but not limited to, covenants and agreements relating 3.34 to the payment of and security for the bonds, tax-exemption, and 3.35 disclosure of information required by federal and state 3.36 securities laws. Such covenants and agreements of the 4.1 commissioner constitute an enforceable contract of the state and 4.2 the state pledges and agrees with the holders of any bonds that 4.3 the state will not limit or alter the rights vested in the 4.4 commissioner to fulfill the terms of any such covenants or 4.5 agreements made with the holders of the bonds, or in any way 4.6 impair the rights and remedies of the holders until the bonds, 4.7 together with the interest thereon, with interest on any unpaid 4.8 installments of interest, and all costs and expenses in 4.9 connection with any action or proceeding by or on behalf of such 4.10 holders, are fully met and discharged. The commissioner is 4.11 authorized to include this pledge and agreement of the state in 4.12 any covenant or agreement with the holders of such bonds. Such 4.13 covenants may not include covenants to continue to operate the 4.14 state lottery but may include covenants to continue to seek 4.15 payment by and reimbursement from nonstate sources of health 4.16 care costs so long as any bonds issued pursuant to this section 4.17 are outstanding. The provisions of sections 16A.672 and 16A.675 4.18 are applicable to the bonds. 4.19 Sec. 4. [16A.6703] [DEPOSIT OF CERTAIN STATE LICENSE FEES, 4.20 SERVICE FEES, AND CHARGES.] 4.21 Subdivision 1. [STATE LICENSE AND SERVICE FEES.] For 4.22 purposes of section 16A.6702, subdivision 3, and this section, 4.23 the term "state license and service fees" means, and refers to, 4.24 all license fees, service fees, and charges imposed by law and 4.25 collected by any state officer, agency, or employee, which are 4.26 listed below or which are defined as departmental earnings under 4.27 section 16A.1285, subdivision 1, and the use of which is not 4.28 otherwise restricted by law, and which are not required to be 4.29 credited or transferred to a fund other than the general fund: 4.30 Minnesota Statutes 2000, sections 3.9221; 5.12; 5.14; 5.16; 4.31 5A.04; 6.58; 13.03, subdivision 10; 16A.155; 16A.48; 16A.54; 4.32 16A.72; 16B.59; 16B.70; 17A.04; 18.51, subdivision 2; 18.53; 4.33 18.54; 18C.551; 19.58; 19.64; 27.041, subdivision 2, clauses (d) 4.34 and (e); 27.07, subdivision 5; 28A.08; 32.071; 32.075; 32.392; 4.35 35.71; 35.824; 35.95; 41C.12; 45.027, subdivisions 3 and 6; 4.36 46.041, subdivision 1; 46.131, subdivisions 2, 7, 8, 9, and 10; 5.1 47.101, subdivision 2; 47.54, subdivisions 1 and 4; 47.62, 5.2 subdivision 4; 47.65; 48.61, subdivision 7; 48.93; 48A.16; 5.3 49.36, subdivision 1; 52.01; 52.203; 53.03, subdivisions 1, 5, 5.4 and 6; 53.09, subdivision 1; 53A.03; 53A.05, subdivision 1; 5.5 53A.081, subdivision 3; 54.294, subdivision 1; 55.04, 5.6 subdivision 2; 55.095; 56.02; 56.04; 56.10; 59A.03, subdivision 5.7 2; 59A.06, subdivision 3; 60A.14, subdivisions 1 and 2; 60A.23, 5.8 subdivision 8; 60K.19, subdivision 5; 65B.48, subdivision 3; 5.9 70A.14, subdivision 4; 72B.04, subdivision 10; 79.251, 5.10 subdivision 5; 80A.28, subdivisions 1, 2, 3, 4, 5, 6, 7, 7a, 8, 5.11 and 9; 80C.04, subdivision 1; 80C.07; 80C.08, subdivision 1; 5.12 80C.16, subdivisions 2 and 3; 80C.18, subdivision 2; 82.20, 5.13 subdivision 8 and 9; 82A.04, subdivision 1; 82A.08, subdivision 5.14 2; 82A.16, subdivisions 2 and 6; 82B.09, subdivision 1; 83.23, 5.15 subdivisions 2, 3, and 4; 83.25, subdivisions 1 and 2; 83.26, 5.16 subdivision 2; 83.30, subdivision 2; 83.31, subdivision 2; 5.17 83.38, subdivision 2; 85.052; 85.053; 85.055; 88.79, subdivision 5.18 2; 89.035; 89.21; 115.073; 115.77, subdivisions 1 and 2; 116.41, 5.19 subdivision 2; 116C.69; 116C.712; 116J.9673; 125.08; 136C.04, 5.20 subdivision 9; 155A.045; 155A.16; 168.27, subdivision 11; 5.21 168.33, subdivisions 3 and 7; 168.54; 168.67; 168.705; 168A.152; 5.22 168A.29; 169.345; 171.06, subdivision 2a; 171.29, subdivision 2; 5.23 176.102; 176.1351; 176.181, subdivision 2a; 177.30; 181A.12; 5.24 183.545; 183.57; 184.28; 184.29; 184A.09; 201.091, subdivision 5.25 5; 204B.11; 207A.02; 214.06; 216C.261; 221.0355; 239.101; 5.26 240.06; 240.07; 240.08; 240.09; 240.10; 246.51; 270.69, 5.27 subdivision 2; 270A.07; 272.484; 296A.03; 296A.04; 296A.27; 5.28 297F.03; 299C.46; 299C.62; 299K.09; 299K.095; 299L.07; 299M.04; 5.29 300.49; 318.02; 323.44, subdivision 3; 325D.415; 326.22; 5.30 326.3331; 326.47; 326.50; 326.92, subdivisions 1 and 3; 327.33; 5.31 331A.02; 332.15, subdivisions 2 and 3; 332.17; 332.22, 5.32 subdivision 1; 332.33, subdivisions 3 and 4; 332.54, subdivision 5.33 7; 333.055; 333.20; 333.23; 336.9-413; 336A.04; 336A.05; 5.34 336A.09; 345.35; 345.43, subdivision 2a; 345.44; 345.55, 5.35 subdivision 3; 347.33; 349.151; 349.161; 349.162; 349.163; 5.36 349.164; 349.165; 349.166; 349.167; 357.08; 359.01, subdivision 6.1 3; 360.018; 360.63; 386.68; and 414.01, subdivision 11; 6.2 Minnesota Statutes 2000, chapters 154; 216B; 237; 302A; 303; 6.3 308A; 317A; 322A; and 322B; Laws 1990, chapter 593; Laws 1993, 6.4 chapter 254, section 7; and Laws 1994, chapter 573, section 4; 6.5 Minnesota Rules, parts 1800.0500; 1950.1070; 2100.9300; 6.6 7515.0210; and 9545.2000 to 9545.2040. 6.7 Subd. 2. [FEES CREDITED TO SPECIAL REVENUE FUND.] During 6.8 any period in which bonds are issued and outstanding under 6.9 section 16A.6702, all state license and service fees must be 6.10 credited to the special revenue fund created in section 6.11 16A.6702, subdivision 3. Money credited to the special revenue 6.12 fund must be transferred to the debt service fund established in 6.13 section 16A.6702, subdivision 4, at the times and in the amounts 6.14 determined by the commissioner of finance to be necessary to 6.15 provide for the payment and security of bonds issued pursuant to 6.16 section 16A.6702. On or before the tenth day of each month, any 6.17 money in the special revenue fund not required to be transferred 6.18 to the debt service fund must be transferred to the general 6.19 fund. If bonds are not issued and outstanding under section 6.20 16A.6702, all state license and service fees must be credited to 6.21 the general fund. 6.22 Subd. 3. [APPLICABILITY.] If any state license or service 6.23 fee described in subdivision 1 is determined by the attorney 6.24 general or a court of competent jurisdiction to be a tax, the 6.25 provisions of subdivisions 1 and 2 no longer apply to it. 6.26 Sec. 5. [116J.425] [SELECTION PROCESS; BASEBALL PARK.] 6.27 (a) After the governor authorizes a loan to be made under 6.28 section 116J.4291, the commissioner of trade and economic 6.29 development shall select a unit of local government to provide a 6.30 site for the new baseball park. 6.31 (b) The required elements of the selection process are: 6.32 (1) the commissioner of trade and economic development 6.33 shall accept bids from any interested unit of local government 6.34 within the metropolitan area, as defined in section 473.121, 6.35 subdivision 2; 6.36 (2) acceptable bids must provide, at a maximum, for the 7.1 provision of land, in a condition appropriate for development, 7.2 and the provision of sufficient adjacent parking facilities to 7.3 be made available for use by the team; 7.4 (3) bids may not include other subsidies except private 7.5 improvements for the enhancement of the baseball park; 7.6 (4) the bid must specify the intent of the unit of local 7.7 government to own and operate the baseball park and demonstrate 7.8 a reasonable capacity to do so; 7.9 (5) in selecting a site, the commissioner of trade and 7.10 economic development shall consider public infrastructure costs 7.11 and significant potential development advantages; and 7.12 (6) the commissioner of trade and economic development 7.13 shall end the acceptance of bids 90 days after the governor's 7.14 authorization under section 116J.4291 and shall, after 7.15 considering the advice of the legislative commission on planning 7.16 and fiscal policy, select a site for a new baseball park within 7.17 150 days after that authorization. 7.18 Sec. 6. [116J.426] [FINANCING; CONSTRUCTION; NAMING 7.19 RIGHTS.] 7.20 Subdivision 1. [PRIVATE FUNDING; OWNERSHIP.] At least 7.21 one-half of the cost of the baseball park must be funded by the 7.22 owner of the major league professional baseball team or through 7.23 other private sector funding. The local unit of government 7.24 shall own the baseball park. 7.25 Subd. 2. [LOAN.] The commissioner of trade and economic 7.26 development shall, upon authorization by the governor made under 7.27 section 116J.4291, provide a loan, in an amount up to 7.28 $140,000,000, from the baseball park loan fund created under 7.29 section 116J.427 to the unit of local government selected to own 7.30 the new baseball park when funds from the major league 7.31 professional baseball team specified under subdivision 1 are 7.32 made available to that unit of government. 7.33 Subd. 3. [REPAYMENT; GUARANTEE.] The loan must be repaid 7.34 to the baseball park loan fund by the local unit of government 7.35 and the local unit of government must guarantee repayment of the 7.36 loan, pledging the revenues listed in this subdivision, 8.1 including its full faith and credit. The loan must be repaid 8.2 using revenues of the local unit of government in the following 8.3 order: (1) lease payments by the team for use of the baseball 8.4 park, (2) ticket tax revenues collected as authorized under 8.5 subdivision 5, (3) payments made under the guarantees by major 8.6 league baseball, the team and owners, and (4) any other revenues 8.7 available to the local unit of government, including any 8.8 property tax revenues. Any property tax levied to repay the 8.9 loan is outside the levy limits in sections 275.70 to 275.74. 8.10 Repayment must be in an amount sufficient to cover the principal 8.11 of the loan plus the interest paid by the state for the bonds 8.12 issued under section 16A.6702, costs of issuance, any ongoing 8.13 costs related to the bonds issued, including but not limited to 8.14 trustee expenses, bond counsel expenses, and any arbitrage, and 8.15 any other costs incurred by the state related to the bonds. 8.16 Amortization payments on the loan must be structured to ensure 8.17 no cash loss to the general fund. The loan must be 8.18 unconditionally guaranteed by major league baseball and by the 8.19 baseball team and personally guaranteed by the holders of the 8.20 majority equity interest in the baseball team. The loan must be 8.21 repaid within 30 years after the date the first payment is due 8.22 and must not be forgiven. 8.23 Subd. 4. [NAMING RIGHTS.] Naming rights from the major 8.24 league baseball park shall be sold by the unit of local 8.25 government that owns the baseball park. Revenues from that sale 8.26 are to be retained by the unit of local government and must be 8.27 used for operating costs of the baseball park. Any excess 8.28 revenues after operating costs are compensated for must be held 8.29 by the unit of government in a reserve account, and used for 8.30 long-term refurbishment of the baseball park. 8.31 Subd. 5. [BASEBALL PARK ADMISSIONS TAX.] Notwithstanding 8.32 any other law, ordinance, or charter provision, the unit of 8.33 local government that owns the baseball park may, by resolution, 8.34 impose and maintain a ten percent admissions tax upon the 8.35 granting, issuance, sales, or distribution, by any private or 8.36 public person, association, or corporation, of the privilege of 9.1 admission to activities at the baseball park. No other tax, 9.2 surcharge, or governmental imposition, except the taxes imposed 9.3 by chapter 297A, may be levied by any other unit of government 9.4 upon any such sale or distribution. 9.5 The admission tax must be stated and charged separately 9.6 from the sales price so far as practicable and must be collected 9.7 by the grantor, seller, or distributor from the person 9.8 admitted. The admission tax collected must be paid to the unit 9.9 of local government for deposit in the baseball park loan fund 9.10 for transfer to the special debt service fund under section 9.11 16A.6702, for repayment of the bonds issued. The tax is a debt 9.12 from that person to the grantor, issuer, seller, or distributor, 9.13 and the tax required to be collected is a debt owed by the 9.14 grantor, issuer, seller, or distributor to the local unit of 9.15 government, recoverable at law in the same manner as other 9.16 debts. Every person granting, issuing, selling, or distributing 9.17 tickets for such admissions may be required, as provided in 9.18 resolutions of the unit of local government, to secure a permit, 9.19 to file returns, to deposit security for the payment of the tax, 9.20 and to pay such penalties for nonpayment and interest on late 9.21 payments, as shall be deemed necessary or expedient to assure 9.22 the prompt and uniform collection of the tax. 9.23 Subd. 6. [MAJOR LEAGUE BASEBALL GUARANTY.] Before making a 9.24 loan under this section, the commissioner must execute an 9.25 agreement with the major league of which the baseball team is a 9.26 member and with major league baseball that guarantees the 9.27 continuance of a major league franchise in the metropolitan area 9.28 for at least the term of the loan under subdivision 2. 9.29 Sec. 7. [116J.427] [BASEBALL PARK LOAN FUND.] 9.30 Subdivision 1. [CREATION.] A baseball park loan fund is 9.31 created as an account within the special revenue fund. 9.32 Subd. 2. [REVENUE BOND PROCEEDS.] After the governor 9.33 authorizes a loan to be made under section 116J.426, the 9.34 commissioner of finance shall transfer the proceeds of the bonds 9.35 sold under section 16A.6702, subdivision 1, to the baseball park 9.36 loan fund. Funds from the repayment of the loan made under 10.1 section 116J.426, subdivision 3, must be transferred from the 10.2 baseball park loan fund to the special debt service fund under 10.3 section 16A.6702, for repayment of the bonds issued. If the 10.4 special debt service fund is fully funded in any fiscal year and 10.5 any funds from the special revenue fund established under 10.6 section 16A.6702, subdivision 3, have been transferred to the 10.7 special debt service fund, the commissioner of finance shall 10.8 transfer the loan repayments not needed for debt service to the 10.9 general fund, up to the amount transferred from the special 10.10 revenue fund. Any loan repayment amount in excess of the amount 10.11 needed to refund the general fund must be deposited in the 10.12 special debt service fund. 10.13 Sec. 8. [116J.428] [OBLIGATIONS; MAJOR LEAGUE PROFESSIONAL 10.14 BASEBALL TEAM.] 10.15 Subdivision 1. [OBLIGATIONS PRIOR TO STATE 10.16 ASSISTANCE.] (a) The major league professional baseball team 10.17 must fully and completely do its part to accomplish the 10.18 requirements of paragraphs (b) and (c) before the governor may 10.19 authorize the commissioner to make the loan under section 10.20 116J.4291 and before the commissioner of finance may issue bonds 10.21 under section 16A.6702. 10.22 (b) The requirements are that: 10.23 (1) a signed lease for not less than 30 years between the 10.24 unit of local government selected by the commissioner and the 10.25 major league professional baseball team must be completed, with 10.26 no escape clauses; 10.27 (2) the commissioner of finance must certify that the major 10.28 league professional baseball team has made available 10.29 $150,000,000 in private cash support to the local unit of 10.30 government for the construction of a baseball park; 10.31 (3) the major league professional baseball team has signed 10.32 an agreement with the unit of local government agreeing to allow 10.33 the baseball park to be available on nongame days for potential 10.34 use by the University of Minnesota, Minnesota state colleges and 10.35 universities, private colleges and universities, the state high 10.36 school league, and the unit of local government for community 11.1 events; 11.2 (4) the major league of which the baseball team is a member 11.3 and major league baseball have both executed an agreement with 11.4 the commissioner that guarantees the continuance of a major 11.5 league franchise in the metropolitan area for at least the term 11.6 of the loan under section 116J.426, subdivision 2; 11.7 (5) the major league professional baseball team and major 11.8 league baseball have signed an agreement with the unit of local 11.9 government to cooperate in maintaining the facility as a 11.10 smoke-free facility; and 11.11 (6) the major league professional baseball team has agreed 11.12 to make all reasonable efforts to ensure that businesses owned 11.13 by socially disadvantaged persons are awarded contracts for 11.14 construction and operation of the baseball park in proportion to 11.15 the number of qualified businesses owned by socially 11.16 disadvantaged persons in the metropolitan area. In addition, 11.17 the team has agreed to make all reasonable efforts to ensure 11.18 that employment of socially disadvantaged persons for the 11.19 construction or operation of the baseball park will be 11.20 proportionate to the number of qualified workers who are 11.21 socially disadvantaged persons in the metropolitan area. For 11.22 the purposes of this clause, "socially disadvantaged person" is 11.23 as defined in Minnesota Rules, part 1230.0150, subpart 24. The 11.24 local unit of government must report to the legislature annually 11.25 on the implementation of this clause. 11.26 (c) The major league baseball team must sign, as a 11.27 condition of receiving any state assistance, a contract with the 11.28 state under which the state would obtain from the team the 11.29 rights to the control and use of the team name and logo in the 11.30 event that the team relocates to another state. Under such a 11.31 contract, the team must notify the state within 24 hours of 11.32 signing an agreement to relocate, and at midnight immediately 11.33 following notification all income from existing contracts for 11.34 the use of the team name and/or logo and all team property with 11.35 the team name and/or logo, other than personal property of team 11.36 members and principals, will become the property of the state. 12.1 Subd. 2. [DESIGN AND CONSTRUCTION.] (a) The major league 12.2 professional baseball team shall design and construct the 12.3 baseball park and is responsible for all cost overruns that may 12.4 occur. Before the design process is complete and construction 12.5 begins, the local unit of government and the team must hold at 12.6 least one public hearing on the proposed design. All funds 12.7 appropriated to the unit of local government under sections 12.8 116J.425 to 116J.4292 shall be managed by the unit of local 12.9 government and made available to the team as the team deems 12.10 necessary for construction purposes. 12.11 (b) All construction materials for the baseball park 12.12 produced from or containing steel must use steel produced in the 12.13 United States from taconite produced in Minnesota. The local 12.14 unit of government shall establish and impose on the major 12.15 league professional baseball team appropriate compliance 12.16 procedures. 12.17 Subd. 3. [OBLIGATIONS DURING CONSTRUCTION.] The major 12.18 league professional baseball team during the period of 12.19 construction of a baseball park must: 12.20 (1) pay prevailing wage levels as defined under section 12.21 177.42 to all construction workers; 12.22 (2) provide to the commissioner of trade and economic 12.23 development a signed agreement between the major league 12.24 professional baseball team and the construction unions that will 12.25 work on the new baseball park that mandates a no-strike and 12.26 no-lockout period during construction of the baseball park; and 12.27 (3) pay any cost overruns that occur during the 12.28 construction period. 12.29 Sec. 9. [116J.4285] [SALE OF BASEBALL FRANCHISE.] 12.30 Subdivision 1. [APPLICATION.] As a condition of a loan 12.31 being made under section 116J.426, the owner of the major league 12.32 professional baseball team must agree that before the owner 12.33 sells a majority ownership interest in the team, the owner will 12.34 attempt for a reasonable time to comply with subdivision 2 or 12.35 with subdivision 3. 12.36 Subd. 2. [COMMUNITY OWNERSHIP.] The owner of the team must 13.1 work with the governor, the commissioner, and a community 13.2 foundation or corporation on a plan to: 13.3 (1) transfer by gift to the foundation or corporation all 13.4 ownership interests in the team; 13.5 (2) provide for sale of shares in the team by the 13.6 foundation or corporation to the community, in a manner such 13.7 that: 13.8 (i) one individual or entity who is the managing partner 13.9 may own up to 25 percent of the voting stock; 13.10 (ii) no other individual or entity may own more than five 13.11 percent of the voting stock; and 13.12 (iii) at least 50 percent of the voting stock must be 13.13 dispersed so that no person owns more than one percent; and 13.14 (3) ensure that the franchise may not move from Minnesota 13.15 without approval of 80 percent of the shares of voting stock. 13.16 Subd. 3. [LOCAL PRIVATE OWNERSHIP.] The owner of the team 13.17 must attempt to reach an agreement on the sale of a majority 13.18 interest in the team to one or more Minnesota buyers before 13.19 attempting to sell the majority interest to others. 13.20 Subd. 4. [REPORT.] If the owner of the team attempts to 13.21 sell a majority interest in the team, the commissioner must 13.22 report to the legislature at the beginning of the next 13.23 legislative session on efforts to work with the owner of the 13.24 team to implement this section. 13.25 Sec. 10. [116J.429] [OBLIGATIONS; DEPARTMENT OF TRADE AND 13.26 ECONOMIC DEVELOPMENT.] 13.27 The commissioner of trade and economic development shall 13.28 negotiate and sign a contract, on behalf of the state, with the 13.29 unit of local government for the loan made under section 13.30 116J.426, that includes the schedule of repayment, a guarantee 13.31 by the unit of local government that it will repay the loan, the 13.32 guarantees of the team and the holders of the majority equity 13.33 interest in the team that are required under section 116J.426, 13.34 subdivision 3, and that provides that the unit of local 13.35 government will prohibit smoking within the facility. The terms 13.36 of the loan contract must require that at least one public 14.1 hearing on the proposed baseball park design will be held by the 14.2 local unit of government and the team before construction 14.3 begins. The terms of the loan contract must require that the 14.4 major league baseball team must provide an average over the 14.5 season of at least 7,000 seats per game to be sold as general 14.6 admission, reduced price or free seats in the new baseball park. 14.7 Sec. 11. [116J.4291] [GOVERNOR'S DETERMINATION; 14.8 AUTHORIZATION OF LOAN.] 14.9 (a) The governor shall appoint a special panel consisting 14.10 of three retired state court judges. The special panel shall 14.11 review information from major league baseball to determine if 14.12 major league baseball and the major league baseball players' 14.13 association have agreed upon a new economic system, including 14.14 enhanced revenue sharing that makes baseball more competitive, 14.15 protects the financial interest of teams with below average 14.16 revenues, and enhances the viability of any new baseball park. 14.17 The special panel shall provide its determination to the 14.18 governor and to the legislative commission on planning and 14.19 fiscal policy. 14.20 (b) The panel may not make these findings under paragraph 14.21 (a), unless the agreement between major league baseball and the 14.22 major league baseball players' association is estimated to 14.23 satisfy at least one of the following: 14.24 (1) the increases in revenue sharing among major league 14.25 baseball teams is estimated, after full implementation of the 14.26 agreement, to reduce the disparity in team revenues so that the 14.27 average revenues of the teams with revenues in the top quartile 14.28 will be no more than 40 percent higher than the average revenues 14.29 of teams in the bottom quartile (ranked by total revenues); 14.30 (2) as a result of increases in revenue sharing, 14.31 limitations on payrolls, or other elements of the agreement, the 14.32 ratio of payrolls of the teams in the top quartile to teams in 14.33 the bottom quartile (ranked by payrolls) is estimated, after 14.34 full implementation of the agreement, to average 2:1 or less; or 14.35 (3) the agreement substantially implements four or more of 14.36 the recommendations, excluding the recommendation that major 15.1 league baseball utilize strategic franchise locations to address 15.2 competitive issues, of "The Report of the Independent Members of 15.3 the Commissioner's Blue Ribbon Panel on Baseball Economics," 15.4 dated July 2000. 15.5 The estimates under this paragraph must be made by either 15.6 the commissioner of finance or an independent consultant 15.7 retained by the commissioner of finance. 15.8 (c) The legislative commission on planning and fiscal 15.9 policy shall review the determination and make its advisory 15.10 recommendation to the governor on whether to authorize the 15.11 commissioner of trade and economic development to make a loan 15.12 under this act. The governor may authorize the commissioner to 15.13 make a loan under sections 116J.425 to 116J.4292 only after 15.14 considering the recommendations and determining that major 15.15 league baseball and the major league baseball players' 15.16 association have agreed upon a new economic system, including 15.17 enhanced revenue sharing that makes baseball more competitive, 15.18 protects the financial interests of teams with below average 15.19 revenues, and enhances the viability of any new baseball park. 15.20 Sec. 12. [116J.4292] [ANNUAL REPORT.] 15.21 If a loan is made under section 116J.426, beginning in 15.22 2002, the commissioner of finance must report by July 1 of each 15.23 year to the committees of the house of representatives and the 15.24 senate with jurisdiction over finance on: 15.25 (1) the current and anticipated loan repayment schedule and 15.26 whether payments are being made in a timely fashion; 15.27 (2) when the loan is expected to be repaid in full; 15.28 (3) state and local tax revenues resulting from naming 15.29 rights, admissions taxes, and any other revenue, or loss of 15.30 revenue, that can be attributed to the baseball park; and 15.31 (4) state and local expenditures that can be directly or 15.32 indirectly attributed to the baseball park. 15.33 Sec. 13. Minnesota Statutes 2000, section 246.18, is 15.34 amended by adding a subdivision to read: 15.35 Subd. 7a. [USE OF CERTAIN REIMBURSEMENT FUNDS.] Except as 15.36 provided in subdivisions 2, 5, and 6, and unless otherwise 16.1 required by federal law, during any period in which bonds are 16.2 issued and outstanding under section 16A.6702, all money 16.3 received from the federal government or other nonstate source 16.4 for payment or reimbursement of health care costs incurred at 16.5 regional treatment centers, state nursing homes, and other state 16.6 facilities as defined in section 246.50, subdivision 3, must be 16.7 credited to the special revenue fund created in section 16.8 16A.6702, subdivision 3. Money credited to the special revenue 16.9 fund must be transferred to the debt service fund established in 16.10 section 16A.6702, subdivision 4, at the times and in the amounts 16.11 determined by order of the commissioner of finance to be 16.12 necessary to provide for the payment and security of bonds 16.13 issued pursuant to section 16A.6702. On or before the tenth day 16.14 of each month, any money in the special revenue fund not 16.15 required to be transferred to the debt service fund must be 16.16 transferred to the general fund. Except as provided in 16.17 subdivisions 2, 5, and 6, and unless otherwise required by 16.18 federal law, if bonds are not issued and outstanding under 16.19 section 16A.6702 all money received from the federal government 16.20 or other nonstate source for payment or reimbursement of health 16.21 care costs incurred at regional treatment centers, state nursing 16.22 homes, and other state facilities as defined in section 246.50, 16.23 subdivision 3, must be credited to the general fund. 16.24 Sec. 14. Minnesota Statutes 2000, section 272.02, is 16.25 amended by adding a subdivision to read: 16.26 Subd. 45. [BASEBALL PARK.] Real or personal property 16.27 acquired, owned, leased, controlled, used, or occupied as a 16.28 baseball park by a major league professional baseball team is 16.29 exempt from taxation but the property is subject to special 16.30 assessments levied by a political subdivision under chapter 429. 16.31 The baseball park includes parking facilities and land necessary 16.32 to and part of the use of the baseball park. A use of the 16.33 property in any manner different from its use under sections 16.34 116J.425 to 116J.4292 at the time must not be considered in 16.35 determining the special benefit under chapter 429 received by 16.36 the properties. Notwithstanding section 272.01, subdivision 2, 17.1 or 273.19, real or personal property at the site of the baseball 17.2 park leased by the local unit of government that operates the 17.3 baseball park to another person or entity for uses directly 17.4 related to the purposes of sections 116J.425 to 116J.4292 is 17.5 exempt from taxation regardless of the length of the lease. 17.6 This subdivision shall expire one month after repayment of the 17.7 loan under section 116J.426, subdivision 3. 17.8 Sec. 15. Minnesota Statutes 2000, section 297A.71, is 17.9 amended by adding a subdivision to read: 17.10 Subd. 23. [CONSTRUCTION MATERIALS; BASEBALL 17.11 PARK.] Materials, supplies, or equipment used or consumed in the 17.12 construction, equipment, or improvement of the baseball park 17.13 constructed under sections 116J.425 to 116J.4292, are exempt. 17.14 This subdivision expires one year after substantial completion 17.15 of the baseball park. 17.16 Sec. 16. [OLYMPIC BID; FACILITY CONSTRUCTION.] 17.17 The governor must evaluate: (1) the feasibility of 17.18 Minnesota preparing a bid to host the 2012 or future summer 17.19 Olympics; and (2) the possibility that hosting the 2012 or 17.20 future summer Olympics may result in sources other than the 17.21 state or a local governmental unit constructing facilities that 17.22 could be used by Minnesota professional sports teams after 17.23 completion of the Olympics. 17.24 If the governor determines that preparation of a bid to 17.25 host the 2012 or future Olympics could be cost-beneficial to the 17.26 state, the governor, in consultation with appropriate persons in 17.27 the public and private sector, must take steps necessary to 17.28 begin bid preparation. 17.29 Sec. 17. [REVISOR INSTRUCTION.] 17.30 The revisor of statutes shall change the citation to 17.31 section 16A.67, wherever it appears in Minnesota Statutes to 17.32 section 16A.6702, in the next edition of Minnesota Statutes. 17.33 Sec. 18. [EFFECTIVE DATE.] 17.34 Section 16 is effective the day following final enactment.