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Minnesota Legislature

Office of the Revisor of Statutes

HF 4207

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 04/21/2008

Current Version - as introduced

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A bill for an act
relating to certain state contracts; requiring full enforcement of certain
agreements between the state and an airline company.

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

Section 1. new text beginAGREEMENTS WITH AIRLINE COMPANY; FULL
ENFORCEMENT REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in
this subdivision have the meanings given.
new text end

new text begin (b) "Agreement with the state" means a written agreement, contract, or lease
between Northwest and the state.
new text end

new text begin (c) "MAC" means the Metropolitan Airports Commission.
new text end

new text begin (d) "Northwest" means Northwest Airlines, Inc.; Northwest Airlines Corporation;
and any affiliates of either of them.
new text end

new text begin (e) "Merger agreement" means any contract, memorandum of understanding, plan or
articles of merger or exchange as described in sections 302A.601 through 302A.615, or
other agreement by which two or more corporations or other business entities come under
common ownership or control.
new text end

new text begin (f) "The state" means the state of Minnesota, a commissioner or department of the
state of Minnesota, or the MAC.
new text end

new text begin Subd. 2. new text end

new text begin Full enforcement. new text end

new text begin (a) The state shall fully enforce any agreement with
the state that is breached or is likely to be breached, including breach of any covenant
regarding maintenance of Northwest's hub, corporate headquarters, or employment level,
as a result of a proposed, agreed to, implemented, or completed merger agreement,
or related transaction, entered into by Northwest with any other airline or affiliate of
an airline. The state shall make full use of any legal or equitable remedies, including
injunctive relief, available under an agreement with the state or otherwise.
new text end

new text begin (b) In a situation described in paragraph (a), the state shall seek repayment of any
outstanding loans and payment for any concessions granted by the state to Northwest,
including favorable gate lease rates, preferential rights to lease desired gates, and other
concessions granted in connection with an agreement with the state.
new text end

new text begin (c) In a situation described in paragraph (a), the state shall seek all incidental,
consequential, liquidated, and other damages available under the agreement with the
state or otherwise.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to merger agreements entered into before, on, or after that date.
new text end