SF 626

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/14/2017 09:39am

A bill for an act
relating to the Minnesota Sports Facilities Authority; classifying data; providing
for appointments; modifying duties; restricting the use of stadium space; requiring
reports; amending Minnesota Statutes 2016, sections 13.55, subdivision 2; 473J.03,
by adding a subdivision; 473J.07, subdivisions 2, 3, 4, 7, 8, 9, by adding a
subdivision; 473J.09, by adding subdivisions; repealing Minnesota Statutes 2016,
section 473J.09, subdivision 14.

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

Section 1.

Minnesota Statutes 2016, section 13.55, subdivision 2, is amended to read:

Subd. 2.

Public data.

new text begin (a) new text end The data made not public by the provisions of subdivision 1
shall become public upon the occurrence of any of the following:

deleted text begin (a) deleted text end new text begin (1) new text end five years elapse from the date on which the lease or contract is entered into
between the facility and the inquiring party or parties or the event which was the subject of
inquiry occurs at the facility, whichever occurs earlier;

deleted text begin (b) deleted text end new text begin (2) new text end the event which was the subject of inquiry does not occur; or

deleted text begin (c) deleted text end new text begin (3) new text end the event which was the subject of inquiry occurs elsewhere.

new text begin (b) Data regarding persons receiving free or discounted admission, tickets, or other gifts
from publicly owned and operated convention facilities, civic center authorities, or the
Minnesota Sports Facilities Authority are public data unless the data are subject to the
provisions of subdivision 1 or 4, paragraph (b).
new text end

Sec. 2.

Minnesota Statutes 2016, section 473J.03, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin Stadium space. new text end

new text begin "Stadium space" means a seat, personal seat license, suite,
club room, parking, or any other part of the stadium or license to access any part of the
stadium that a member of the general public would have to pay to use or access.
new text end

Sec. 3.

Minnesota Statutes 2016, section 473J.07, subdivision 2, is amended to read:

Subd. 2.

Membership.

(a) The authority shall consist of five members.

(b) The deleted text begin chair and two deleted text end new text begin three new text end members shall be appointed by the governor new text begin and confirmed
by the senate new text end . One member appointed by the governor shall serve until December 31 of the
third year following appointment and one member shall serve until December 31 of the
fourth year following appointment. Thereafter, members appointed by the governor shall
serve four-year terms, beginning January 1. Each member serves until a successor is
appointed and takes office new text begin unless removed by the appointing authority for cause. Cause for
removal includes violation of the employee code of ethics in section 43A.38 new text end . The chair
serves at the pleasure of the governor.

(c) The mayor of the city shall appoint two members to the authority. One member
appointed by the mayor of the city new text begin and confirmed by the senate new text end shall serve until December
31 of the third year following appointment and one member shall serve until December 31
of the fourth year following appointment. Thereafter, members appointed under this
paragraph shall serve four-year terms beginning January 1. Each member serves until a
successor is appointed and takes office new text begin unless removed by the appointing authority for
cause. Cause for removal includes violation of the employee code of ethics in section 43A.38 new text end .
Members appointed under this paragraph may reside within the city and may be appointed
officials of a political subdivision.

deleted text begin (d) The initial members of the authority must be appointed not later than June 13, 2012.
deleted text end

Sec. 4.

Minnesota Statutes 2016, section 473J.07, subdivision 3, is amended to read:

Subd. 3.

Compensation.

The authority may compensate its members deleted text begin , other than the
chair, deleted text end as provided in section 15.0575. The chair shall receive deleted text begin , unless otherwise provided by
other law, a salary in an amount fixed by the authority, deleted text end new text begin no more than half of the salary of
the executive director of the authority new text end and shall be reimbursed for reasonable expenses to
the same extent as a member.

Sec. 5.

Minnesota Statutes 2016, section 473J.07, subdivision 4, is amended to read:

Subd. 4.

Chair.

The chair presides at all meetings of the authority, if present, and
performs all other assigned duties and functions. new text begin The members of the authority shall
biennially elect a chair from among its members. new text end The authority may appoint from among
its members a vice-chair to act for the chair during the temporary absence or disability of
the chair, and any other officers the authority determines are necessary or convenient.

Sec. 6.

Minnesota Statutes 2016, section 473J.07, subdivision 7, is amended to read:

Subd. 7.

Audit.

The legislative auditor shall audit the books and accounts of the authority
once each year or as often as the legislative auditor's funds and personnel permit. The
authority shall pay the total cost of the audit pursuant to section 3.9741. new text begin The legislative
auditor may conduct examinations of the authority's finances, budgets, expenditures,
revenues, and its operation. The legislative auditor may periodically examine the authority's
use of stadium space by the authority's members, staff, family, friends, and vendors.
new text end

Sec. 7.

Minnesota Statutes 2016, section 473J.07, subdivision 8, is amended to read:

Subd. 8.

Executive director; employees.

The authority may appoint an executive director
to serve as the chief executive officer of the authority. The executive director serves at the
pleasure of the authority and receives compensation as determined by the authority new text begin but not
to exceed 115 percent of the governor's salary new text end . The executive director may be responsible
for the operation, management, and promotion of activities of the authority, as prescribed
by the authority. The executive director has the powers necessarily incident to the
performance of duties required and powers granted by the authority, but does not have
authority to incur liability or make expenditures on behalf of the authority without general
or specific directions by the authority, as shown by the bylaws or minutes of a meeting of
the authority. The executive director is responsible for hiring, supervision, and dismissal
of all other employees of the authority. new text begin The authority must conduct an annual employee
evaluation of the executive director, which must be reviewed and approved by the entire
board.
new text end

Sec. 8.

Minnesota Statutes 2016, section 473J.07, is amended by adding a subdivision to
read:

new text begin Subd. 8a. new text end

new text begin Budget; report. new text end

new text begin After adoption, the authority shall submit its annual budget
to the commissioner of management and budget and to the chairs and ranking minority
members of the senate finance and house of representatives ways and means committees.
new text end

Sec. 9.

Minnesota Statutes 2016, section 473J.07, subdivision 9, is amended to read:

Subd. 9.

Web site.

The authority shall establish a Web site for purposes of providing
information to the public concerning all actions taken by the authority. At a minimum, the
Web site must contain a current version of the authority's bylaws, notices of upcoming
meetings, minutes of the authority's meetings, new text begin each annual budget, each use agreement,
each management agreement, each sponsorship agreement, meeting minutes for all meetings,
policies, and procedures, new text end and contact telephone, electronic mail, and facsimile numbers for
public comments.

Sec. 10.

Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Annual performance reports to the legislature. new text end

new text begin The authority must submit
annual performance reports to the chair and ranking minority member of the Legislative
Commission on Minnesota Sports Facilities and to the chairs and ranking minority members
of the senate Finance Committee and the house of representatives Ways and Means
Committee.
new text end

Sec. 11.

Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
to read:

new text begin Subd. 16. new text end

new text begin Use of stadium space by authority members. new text end

new text begin Authority members may not
use stadium space unless the use is for a legitimate business purpose. Legitimate business
purposes are:
new text end

new text begin (1) participating in a marketing effort arranged by the authority's marketing vendor;
new text end

new text begin (2) conducting oversight of the operation of the stadium; or
new text end

new text begin (3) making stadium space available to nonprofit charitable organizations to provide
access to events at the stadium for people served by the charitable organization.
new text end

Sec. 12.

Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Use of stadium space by staff members. new text end

new text begin The executive director may not use
stadium space unless the use is for a legitimate business purpose and is approved by a vote
of the authority at a public meeting, and the legitimate business purpose is made a part of
the public record. Stadium space may not be used by the authority's staff members, other
than the executive director, unless the use is with the express written assignment of duties
by the executive director. Staff may not receive free food or beverages and may not receive
free parking unless necessary to complete the assigned duties.
new text end

Sec. 13.

Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
to read:

new text begin Subd. 18. new text end

new text begin Use of stadium space by family and friends of authority members. new text end

new text begin The
authority or its members may not grant access to stadium space to family members or friends
of the authority's members or staff unless the use is for a legitimate business purpose and
is approved by a vote of the authority at a public meeting, and the legitimate business purpose
is made a part of the public record. A legitimate business purpose under this subdivision
means being a prospective user of the stadium.
new text end

Sec. 14.

Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
to read:

new text begin Subd. 19. new text end

new text begin Use of stadium space by marketing vendor. new text end

new text begin If the authority contracts with
a vendor for services to market the stadium, the authority may extend to the marketing
vendor complimentary access to stadium space for the purpose of marketing the stadium to
prospective users of the stadium, provided the contract requires the vendor to report to the
authority the following information within 30 days after each event at which the vendor has
used stadium space:
new text end

new text begin (1) the costs of use;
new text end

new text begin (2) the identity of each attendee and their legitimate business purpose for attendance;
new text end

new text begin (3) the date, time, and a general description of the stadium event at which the suite was
used; and
new text end

new text begin (4) the value and description of any food, parking, or other benefits provided to attendees.
new text end

new text begin Data that the authority receives under this subdivision is public data unless otherwise
classified by section 13.55.
new text end

Sec. 15.

Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin Use of suite for charitable purposes. new text end

new text begin The Minnesota Sports Facilities
Authority must make all suites to which the authority has access during NFL team stadium
events under its use agreement with an NFL team, except for one suite, available to charitable
organizations organized under section 501(c)(3) of the Internal Revenue Code for use during
team stadium events.
new text end

Sec. 16.

Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
to read:

new text begin Subd. 21. new text end

new text begin Report on stadium space use by authority members, staff, and vendors.
new text end

new text begin The authority shall report the following information annually to the governor, the mayor of
the city of Minneapolis, the chair of the Legislative Commission on Minnesota Sports
Facilities, and the chairs and ranking minority members of the senate Finance Committee
and the house of representatives Ways and Means Committee regarding use of stadium
space by authority members, staff, and vendors or their guests:
new text end

new text begin (1) the costs of use;
new text end

new text begin (2) the identity of each attendee and their legitimate business purpose for attendance;
new text end

new text begin (3) the date, time, and a general description of the stadium event at which the suite was
used; and
new text end

new text begin (4) the value and description of any food, parking, or other benefits provided to attendees.
new text end

Sec. 17.

Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
to read:

new text begin Subd. 22. new text end

new text begin Open market purchase. new text end

new text begin This section does not prohibit an authority member,
staff member, friend, or family member of the authority or staff from attending events,
renting rooms, or using suites at the stadium for which the person purchased a ticket, rented
a room, or purchased a suite, on the open market for fair market value.
new text end

Sec. 18.

Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
to read:

new text begin Subd. 23. new text end

new text begin Code of conduct. new text end

new text begin The authority shall adopt and comply with the latest version
of the state code of conduct promulgated by Minnesota Management and Budget. For
purposes of section 43A.38 as applied to the authority, an authority member or an authority
staff member is an "employee of the executive branch;" use of stadium space by an authority
member or by authority staff, unless permitted under section 473J.09, constitutes a "gift"
under section 43A.38, subdivision 2; and constitutes "use of state property for the employee's
private interest" under section 43A.48, subdivision 4.
new text end

Sec. 19. new text begin RECOVERY.
new text end

new text begin The Minnesota Sports Facilities Authority must recover the fair market value of any
food, parking, tickets, and access to stadium suites provided to a person prior to January 1,
2017, if the provision of those benefits to the person was not in the public interest. The
authority shall report on recovery efforts to the commissioner of management and budget
and to the chairs and ranking minority members of the senate finance and house of
representatives ways and means committees on the second Monday of each month until a
full recovery is completed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 473J.09, subdivision 14, new text end new text begin is repealed.
new text end

Sec. 21. new text begin EFFECTIVE DATE.
new text end

new text begin Except where otherwise provided, this act is effective July 1, 2017, and, notwithstanding
any law to the contrary, the appointment of the current executive director of the authority
and the terms of all current members of the authority terminate on that date. New
appointments must be made by the appointing authorities by May 1, 2017, and, if confirmed
by the senate, will be effective July 2, 2017.
new text end

APPENDIX

Repealed Minnesota Statutes: S0626-1

473J.09 POWERS, DUTIES OF THE AUTHORITY.

Subd. 14.

Study; raffle.

The authority shall study the feasibility of conducting a raffle for chances to win a pair or other limited numbers of prime seats (such as lower deck, 50 yard line seats) in the stadium for professional football games for the duration of the lease or use agreement. In conducting the study, the authority must consult with the NFL team. If the authority determines that conducting the raffle is financially feasible, the authority in cooperation with the director of the Gambling Control Board shall conduct the raffle. The proceeds of the raffle must be transmitted to the commissioner of revenue for deposit in the general fund and are appropriated to the commissioner of management and budget for prepayment of principal and interest on appropriation bonds under section 16A.965.