SF 2218

as introduced - 89th Legislature (2015 - 2016) Posted on 05/17/2015 02:53pm

A bill for an act
relating to state government; providing a process for community ownership
of a major league soccer team; proposing coding for new law as Minnesota
Statutes, chapter 4B.

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

Section 1.

new text begin [4B.01] PURPOSE.
new text end

new text begin The legislature determines that:
new text end

new text begin (1) a major league soccer team can be an important asset to the state of Minnesota
and ensuring that a team is located in Minnesota is an important public purpose;
new text end

new text begin (2) providing broad-based local ownership of a major league soccer team develops
trust among fans, taxpayers, and the team;
new text end

new text begin (3) providing community ownership of a major league soccer team ensures that the
financial benefits of any increased value of the team will accrue to those members of the
community who own the team; and
new text end

new text begin (4) enacting legislation providing for community ownership indicates support for
major league soccer in Minnesota.
new text end

Sec. 2.

new text begin [4B.02] COMMUNITY OWNERSHIP.
new text end

new text begin The governor must attempt to facilitate the formation of a corporation to acquire
a major league soccer team and to identify an individual private managing owner of the
team. A corporation formed to acquire a team shall have a capital structure in compliance
with all of the following provisions:
new text end

new text begin (1) there may be two classes of capital stock: common stock and preferred stock.
Both classes of stock must give holders voting rights with respect to any relocation or
voluntary contraction of the team;
new text end

new text begin (2) the private managing owner must own no less than 25 percent and no more than
35 percent of the common stock. For purposes of this restriction, shares of common stock
owned by the private managing owner include shares of common stock owned by any
related taxpayer as defined in section 1313(c) of the Internal Revenue Code of 1986, as
amended. Other than the rights of all other holders of common stock and preferred stock
with respect to relocation or voluntary contraction of the team, the private managing
owner must control all aspects of the operation of the corporation;
new text end

new text begin (3) other than the private managing owner, no individual or entity may own more
than five percent of the common stock of the corporation;
new text end

new text begin (4) at least 50 percent of the ownership of the common stock must be sold to
members of the general public in a general solicitation and a person or entity must not
own more than one percent of common stock of the corporation; and
new text end

new text begin (5) the articles of incorporation, bylaws, and other governing documents must provide
that the franchise may not move outside of the state or agree to voluntary contraction
without approval of at least 75 percent of the shares of common stock and at least 75 percent
of the shares of preferred stock. Notwithstanding any law to the contrary, these 75 percent
approval requirements shall not be amended by the shareholders or by any other means.
new text end

new text begin Except as specifically provided by this section, no state agency may spend money
from any state fund for the purpose of generating revenue under this subdivision or for the
purpose of providing operating support or defraying operating losses of a professional
soccer team.
new text end