HF 778

2nd Unofficial Engrossment - 90th Legislature (2017 - 2018) Posted on 03/22/2017 08:15am

1.1A bill for an act

1.2relating to the Minnesota Sports Facilities Authority; classifying data; providing
1.3for appointments; modifying duties; restricting the use of stadium space; requiring
1.4reports;amending Minnesota Statutes 2016, sections 13.55, subdivision 2; 473J.03,
1.5by adding a subdivision; 473J.07, subdivisions 2, 3, 4, 7, 8, 9, by adding a
1.6subdivision; 473J.09, subdivision 13, by adding subdivisions; repealing Minnesota
1.7Statutes 2016, section 473J.09, subdivision 14.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9    Section 1. Minnesota Statutes 2016, section 13.55, subdivision 2, is amended to read:
1.10    Subd. 2. Public data. (a) The data made not public by the provisions of subdivision 1
1.11shall become public upon the occurrence of any of the following:
1.12    (a) (1) five years elapse from the date on which the lease or contract is entered into
1.13between the facility and the inquiring party or parties or the event which was the subject of
1.14inquiry occurs at the facility, whichever occurs earlier;
1.15    (b) (2) the event which was the subject of inquiry does not occur; or
1.16    (c) (3) the event which was the subject of inquiry occurs elsewhere.
1.17    (b) Data regarding persons receiving free or discounted admission, tickets, or other gifts
1.18from publicly owned and operated convention facilities, civic center authorities, or the
1.19Minnesota Sports Facilities Authority are public data unless the data are subject to the
1.20provisions of subdivision 1 or 4, paragraph (b).

2.1    Sec. 2. Minnesota Statutes 2016, section 473J.03, is amended by adding a subdivision to
2.2read:
2.3    Subd. 13. Stadium space. "Stadium space" means a seat, personal seat license, suite,
2.4club room, parking, or any other part of the stadium or license to access any part of the
2.5stadium that a member of the general public would have to pay to use or access.

2.6    Sec. 3. Minnesota Statutes 2016, section 473J.07, subdivision 2, is amended to read:
2.7    Subd. 2. Membership. (a) The authority shall consist of five members.
2.8    (b) The chair and two Three members shall be appointed by the governor and confirmed
2.9by the senate. One member appointed by the governor shall serve until December 31 of the
2.10third year following appointment and one member shall serve until December 31 of the
2.11fourth year following appointment. Thereafter, members appointed by the governor shall
2.12serve four-year terms, beginning January 1. Each member serves until a successor is
2.13appointed and takes office unless removed by the appointing authority for cause. Cause for
2.14removal includes violation of the employee code of ethics in section 43A.38. The chair
2.15serves at the pleasure of the governor.
2.16    (c) The mayor of the city shall appoint and the senate shall confirm two members to the
2.17authority. One member appointed by the mayor of the city shall serve until December 31
2.18of the third year following appointment and one member shall serve until December 31 of
2.19the fourth year following appointment. Thereafter, members appointed under this paragraph
2.20shall serve four-year terms beginning January 1. Each member serves until a successor is
2.21appointed and takes office unless removed by the appointing authority for cause. Cause for
2.22removal includes violation of the employee code of ethics in section 43A.38. Members
2.23appointed under this paragraph may reside within the city and may be appointed officials
2.24of a political subdivision.
2.25    (d) The initial members of the authority must be appointed not later than June 13, 2012.

2.26    Sec. 4. Minnesota Statutes 2016, section 473J.07, subdivision 3, is amended to read:
2.27    Subd. 3. Compensation. The authority may compensate its members, other than the
2.28chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided by
2.29other law, a salary in an amount fixed by the authority, no more than half of the salary of
2.30the executive director of the authority and shall be reimbursed for reasonable expenses to
2.31the same extent as a member.

3.1    Sec. 5. Minnesota Statutes 2016, section 473J.07, subdivision 4, is amended to read:
3.2    Subd. 4. Chair. The chair presides at all meetings of the authority, if present, and
3.3performs all other assigned duties and functions. The members of the authority shall
3.4biennially elect a chair from among its members. The authority may appoint from among
3.5its members a vice-chair to act for the chair during the temporary absence or disability of
3.6the chair, and any other officers the authority determines are necessary or convenient.

3.7    Sec. 6. Minnesota Statutes 2016, section 473J.07, subdivision 7, is amended to read:
3.8    Subd. 7. Audit. The legislative auditor shall audit the books and accounts of the authority
3.9once each year or as often as the legislative auditor's funds and personnel permit. The
3.10authority shall pay the total cost of the audit pursuant to section 3.9741. The legislative
3.11auditor may conduct examinations of the authority's finances, budgets, expenditures,
3.12revenues, and its operation. The legislative auditor may periodically examine the authority's
3.13use of stadium space by the authority's members, staff, family, friends, charitable
3.14organizations, and vendors.

3.15    Sec. 7. Minnesota Statutes 2016, section 473J.07, subdivision 8, is amended to read:
3.16    Subd. 8. Executive director; employees. The authority may appoint an executive director
3.17to serve as the chief executive officer of the authority. The executive director serves at the
3.18pleasure of the authority and receives compensation as determined by the authority but not
3.19to exceed 115 percent of the governor's salary. The executive director may be responsible
3.20for the operation, management, and promotion of activities of the authority, as prescribed
3.21by the authority. The executive director has the powers necessarily incident to the
3.22performance of duties required and powers granted by the authority, but does not have
3.23authority to incur liability or make expenditures on behalf of the authority without general
3.24or specific directions by the authority, as shown by the bylaws or minutes of a meeting of
3.25the authority. The executive director is responsible for hiring, supervision, and dismissal
3.26of all other employees of the authority. The authority must conduct an annual employee
3.27evaluation of the executive director, which must be reviewed and approved by the entire
3.28board.

4.1    Sec. 8. Minnesota Statutes 2016, section 473J.07, is amended by adding a subdivision to
4.2read:
4.3    Subd. 8a. Budget; report. After adoption, the authority shall submit its annual budget
4.4to the commissioner of management and budget and to the chairs and ranking minority
4.5members of the senate finance and house of representatives ways and means committees.

4.6    Sec. 9. Minnesota Statutes 2016, section 473J.07, subdivision 9, is amended to read:
4.7    Subd. 9. Web site. The authority shall establish a Web site for purposes of providing
4.8information to the public concerning all actions taken by the authority. At a minimum, the
4.9Web site must contain a current version of the authority's bylaws, notices of upcoming
4.10meetings, minutes of the authority's meetings, each annual budget, each use agreement,
4.11each management agreement, each sponsorship agreement, meeting minutes for all meetings,
4.12policies, and procedures, and contact telephone, electronic mail, and facsimile numbers for
4.13public comments. This subdivision does not apply to information that is classified as not
4.14public data, as defined in section 13.02, subdivision 8a, under other law.

4.15    Sec. 10. Minnesota Statutes 2016, section 473J.09, subdivision 13, is amended to read:
4.16    Subd. 13. Legislative report. The authority must report to the Legislative Commission
4.17on Minnesota Sports Facilities and the chairs and ranking minority members of the legislative
4.18committees with jurisdiction over state government finance and to the senate Finance
4.19Committee and the house of representatives Ways and Means Committee by January 15 of
4.20each year on the following:
4.21(1) any recommended increases in the rate or dollar amount of tax;
4.22(2) any recommended increases in the debt of the authority;
4.23(3) the overall work and role of the authority;
4.24(4) the authority's proposed operating and capital budgets; and
4.25(5) the authority's implementation of the operating and capital budgets., including
4.26information on actual revenues and expenditures, events conducted, and all expected or
4.27unexpected maintenance and capital repair needs arising since the time of the last report;
4.28and
4.29(6) a listing of all stadium amenities under the control of the authority since the time of
4.30the last report, and how the amenities were used.

5.1    Sec. 11. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
5.2to read:
5.3    Subd. 16. Use of stadium space by authority members. Authority members may not
5.4use stadium space unless the use is for a legitimate business purpose. Legitimate business
5.5purposes are:
5.6    (1) participating in a marketing effort arranged by the authority's marketing vendor;
5.7    (2) conducting oversight of the operation of the stadium; or
5.8    (3) making stadium space available to nonprofit charitable organizations to provide
5.9access to events at the stadium for people served by the charitable organization.

5.10    Sec. 12. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
5.11to read:
5.12    Subd. 17. Use of stadium space by staff members. The executive director may not use
5.13stadium space unless the use is for a legitimate business purpose and is approved by a vote
5.14of the authority at a public meeting, and the legitimate business purpose is made a part of
5.15the public record. Stadium space may not be used by the authority's staff members, other
5.16than the executive director, unless the use is with the express written assignment of duties
5.17by the executive director. Staff may not receive free food or beverages and may not receive
5.18free parking unless necessary to complete the assigned duties.

5.19    Sec. 13. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
5.20to read:
5.21    Subd. 18. Use of stadium space by family and friends of authority members. The
5.22authority or its members may not grant access to stadium space to family members or friends
5.23of the authority's members or staff unless the use is for a legitimate business purpose and
5.24is approved by a vote of the authority at a public meeting, and the legitimate business purpose
5.25is made a part of the public record. A legitimate business purpose under this subdivision
5.26means being a prospective user of the stadium.

5.27    Sec. 14. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
5.28to read:
5.29    Subd. 19. Use of stadium space by marketing vendor. If the authority contracts with
5.30a vendor for services to market the stadium, the authority may extend to the marketing
5.31vendor complimentary access to stadium space for the purpose of marketing the stadium to
6.1prospective users of the stadium, provided the contract requires the vendor to report to the
6.2authority the following information within 30 days after each event at which the vendor has
6.3used stadium space:
6.4    (1) the costs of use;
6.5    (2) the identity of each adult attendee and their legitimate business purpose for attendance;
6.6    (3) the date, time, and a general description of the stadium event at which the suite was
6.7used; and
6.8    (4) the value and description of any food, parking, or other benefits provided to attendees.
6.9    Data that the authority receives under this subdivision is public data unless otherwise
6.10classified by section 13.55.

6.11    Sec. 15. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
6.12to read:
6.13    Subd. 21. Report on stadium space use by authority members, staff, and vendors.
6.14    The authority shall report the following information annually to the governor, the mayor of
6.15the city of Minneapolis, the chair of the Legislative Commission on Minnesota Sports
6.16Facilities, and the chairs and ranking minority members of the senate Finance Committee
6.17and the house of representatives Ways and Means Committee regarding use of stadium
6.18space by authority members, staff, family, friends, charitable organizations, and vendors or
6.19their guests:
6.20    (1) the costs of use;
6.21    (2) the identity of each adult attendee and their legitimate business purpose for attendance;
6.22    (3) the date, time, and a general description of the stadium event at which the suite was
6.23used; and
6.24    (4) the value and description of any food, parking, or other benefits provided to attendees.

6.25    Sec. 16. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
6.26to read:
6.27    Subd. 22. Open market purchase. This section does not prohibit an authority member,
6.28staff member, friend, or family member of the authority or staff from attending events,
6.29renting rooms, or using suites at the stadium for which the person purchased a ticket, rented
6.30a room, or purchased a suite, on the open market through the same channels for the same
6.31prices as are available to the public.

7.1    Sec. 17. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
7.2to read:
7.3    Subd. 23. Code of conduct. The authority shall adopt and comply with the latest version
7.4of the state code of conduct promulgated by Minnesota Management and Budget. For
7.5purposes of section 43A.38 as applied to the authority, an authority member or an authority
7.6staff member is an "employee of the executive branch"; use of or preferential access to
7.7stadium space by an authority member or by authority staff, unless permitted under this
7.8section, constitutes a "gift" under section 43A.38, subdivision 2; and constitutes "use of
7.9state property for the employee's private interest" under section 43A.48, subdivision 4.

7.10    Sec. 18. LEGISLATIVE AUDITOR REVIEW OF MINNESOTA SPORTS
7.11FACILITIES AUTHORITY MANAGEMENT STRUCTURE.
7.12The legislative auditor is requested to conduct a review of the management structure of
7.13the Minnesota Sports Facilities Authority established in Minnesota Statutes, chapter 473J.
7.14The review is requested to prioritize consideration of the authority's leadership positions,
7.15including the necessity for the authority to be simultaneously led by a full-time executive
7.16director and a full-time chair. As appropriate, the review may include recommendations for
7.17legislation to improve the authority's management structure. The review must be submitted
7.18to the Legislative Commission on Minnesota Sports Facilities, and the chairs and ranking
7.19minority members of the legislative committees with jurisdiction over state government
7.20finance and to the chairs and ranking minority members of the senate Finance Committee
7.21and the house of representatives Ways and Means Committee, no later than January 15,
7.222018.

7.23    Sec. 19. RECOVERY.
7.24The Minnesota Sports Facilities Authority must make every effort to recover the fair
7.25market value of any food, parking, tickets, and access to stadium suites provided to a person
7.26prior to January 1, 2017, if the provision of those benefits to the person was not in the public
7.27interest. The authority shall report on recovery efforts to the commissioner of management
7.28and budget and to the chairs and ranking minority members of the senate finance and house
7.29of representatives ways and means committees by May 31, 2017.
7.30EFFECTIVE DATE.This section is effective the day following final enactment.

8.1    Sec. 20. TRANSFER OF SUITE.
8.2The Legislative Commission on Minnesota Sports Facilities shall report to the chairs
8.3and ranking minority members of the committees in the house of representatives and the
8.4senate with jurisdiction over finance by February 1, 2018, with recommendations for
8.5requiring the Minnesota Sports Facilities Authority to transfer its rights to one suite in the
8.6NFL stadium under the use agreement with the primary tenant or to make that suite available
8.7for use by charitable organizations. The report shall include any draft legislation necessary
8.8to implement the recommendations.

8.9    Sec. 21. REPEALER.
8.10Minnesota Statutes 2016, section 473J.09, subdivision 14, is repealed.

8.11    Sec. 22. EFFECTIVE DATE.
8.12Except where otherwise provided, this act is effective May 1, 2017, and, notwithstanding
8.13any law to the contrary, the terms of all current members of the authority terminate on that
8.14date. New appointments must be made by the appointing authorities by May 1, 2017.