SF 3867

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

A bill for an act
relating to airlines; requiring the state to declare agreements in default under
certain circumstances; requiring the state to pursue contractual, legal, and
equitable remedies for default.

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

Section 1. new text begin AGREEMENTS WITH AIRLINE COMPANY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Airline company" means an airline company that,
on the effective date of this section, maintains a hub located at the Minneapolis-St. Paul
International Airport, and maintains its corporate headquarters in this state, together with
all related entities that are parties to agreements within the meaning of this section, as
lessees, affiliates, holding companies, or subsidiaries and successor entities.
new text end

new text begin (b) "Agreements" means financing agreements, purchase agreements, lease
agreements, mortgage agreements, and related documents between the airline company
and the state or Metropolitan Airports Commission, relating to a financing transaction
executed in 1992 and amended in 1994 and subsequent years.
new text end

new text begin (c) "Corporate headquarters" means the principal office of the airline company from
which its business is conducted and the principal office of the chief executive officer
of the airline company.
new text end

new text begin Subd. 2. new text end

new text begin Declaration of default. new text end

new text begin The state, as signatory or beneficiary of the
agreements, shall seek contractual, legal, and equitable remedies promptly upon the
occurrence or imminent occurrence of:
new text end

new text begin (1) a consolidation or merger involving the airline company, unless the resulting
entity assumes in writing satisfactory to the state, not later than the date of the
consolidation or merger, all obligations of the airline company under the agreements;
new text end

new text begin (2) failure to maintain the airline company's corporate headquarters in the
Minneapolis-St. Paul metropolitan area;
new text end

new text begin (3) a reduction or change in the airline company's employment, operations, or
facilities in the Minneapolis-St. Paul metropolitan area and in this state that is not
substantially proportional to comparable reductions or changes in the airline company's
other domestic business locations;
new text end

new text begin (4) failure to continue operation of a major airline company hub in Minnesota; or
new text end

new text begin (5) any other material breach of the agreements, including the public policy
covenants.
new text end

new text begin Subd. 3. new text end

new text begin Metropolitan Airports Commission. new text end

new text begin The Metropolitan Airports
Commission may not amend the agreements or settle any claims arising out of the
agreements without prior approval by law.
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