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SF 626

as introduced - 90th Legislature (2017 - 2018) Posted on 03/06/2017 09:02am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to the Minnesota Sports Facilities Authority; modifying appointments to
the authority board; modifying duties; restricting the use of stadium suites;
amending Minnesota Statutes 2016, sections 473J.07, subdivisions 2, 3, 4, 8, by
adding a subdivision; 473J.09, subdivisions 6, 13, by adding subdivisions; 473J.13,
by adding a subdivision; 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 473J.07, subdivision 2, is amended to read:


Subd. 2.

Membership.

(a) The authority shall consist of deleted text begin fivedeleted text end new text begin sevennew text end members.

(b) deleted text begin The chair and two membersdeleted text end new text begin One membernew text end shall be appointed by the governor. deleted text begin Onedeleted text end new text begin
This
new text end member deleted text begin appointed by the governordeleted text end shall serve until December 31 of the third year
following appointment deleted text begin and one member shall serve until December 31 of the fourth year
following appointment
deleted text end . 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. deleted text begin The chair serves at the pleasure of the governor.
deleted text end

(c) The mayor of the city shall appoint deleted text begin two membersdeleted text end new text begin one membernew text end to the authority. deleted text begin Onedeleted text end new text begin
This
new text end member deleted text begin appointed by the mayor of the citydeleted text end shall serve until December 31 of the deleted text begin thirddeleted text end
new text begin second new text end year following appointment deleted text begin and one member shall serve until December 31 of the
fourth year following appointment
deleted text end . 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. Members appointed under this paragraph may reside within the
city and may be appointed officials of a political subdivision.

(d) deleted text begin The initial members of the authority must be appointed not later than June 13, 2012.deleted text end new text begin
The legislature shall appoint the remaining members of the authority, who may not be
members of the legislature, as follows:
new text end

new text begin (1) the speaker of the house shall appoint one member;
new text end

new text begin (2) the majority leader of the senate shall appoint one member;
new text end

new text begin (3) the minority leader of the house of representatives shall appoint one member; and
new text end

new text begin (4) the minority leader of the senate shall appoint one member.
new text end

new text begin (e) The legislative auditor or a designee shall serve as a nonvoting member of the board.
Members appointed by the legislature shall serve for two-year terms.
new text end

Sec. 2.

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


Subd. 3.

Compensation.

The authority may compensate its membersdeleted text begin , other than the
chair,
deleted text end as provided in section 15.0575. The chair shall receivedeleted text begin , unless otherwise provided by
other law, a salary in an amount fixed by the authority,
deleted text end new text begin the same compensation as other
board members
new text end and shall be reimbursed for reasonable expenses to the same extent as a
member.

Sec. 3.

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 board 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. 4.

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 authoritynew text begin , but in
no instance may the compensation of the executive director exceed that of the governor
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. 5.

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.
All elements of the authority budget, meeting minutes, policies, and procedures must be
available on the authority Web site.
new text end

Sec. 6.

Minnesota Statutes 2016, section 473J.09, subdivision 6, is amended to read:


Subd. 6.

Employees; contracts for services.

The authority may employ persons and
contract for services necessary to carry out its functions, including the utilization of
employees and consultants retained by other governmental entities. new text begin As a condition of
employment, employees selected by the authority may not engage in partisan political
activities.
new text end The authority shall enter into an agreement with the city regarding traffic control
for the stadium.

Sec. 7.

Minnesota Statutes 2016, section 473J.09, subdivision 13, is amended to read:


Subd. 13.

Legislative report.

The authority must report to the chairs and ranking minority
members of the legislative committees with jurisdiction over state government finance by
January 15 of each year on the following:

(1) any recommended increases in the rate or dollar amount of tax;

(2) any recommended increases in the debt of the authority;

(3) the overall work and role of the authority;

(4) the authority's proposed new text begin and past new text end operating and capital budgets; and

(5) the authority's implementation of the operating and capital budgets.

Sec. 8.

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 Use of stadium suites. new text end

new text begin (a) The authority's marketing vendor may enter into
agreements for the use of game and event tickets, and stadium suites, for the purpose of
marketing the stadium to potential users. Use of stadium suites is subject to the following
requirements:
new text end

new text begin (1) stadium suites may not be used by board members, except when participating in a
marketing effort arranged by the authority's marketing vendor, or conducting oversight of
authority responsibilities. The executive director shall ensure that use of the suite does not
violate open meeting laws. A board member may not use a suite more than twice per year
for oversight duties, and must pay the fair market value for use of the suite;
new text end

new text begin (2) stadium suite use must be limited to only those persons and activities with a legitimate
business purpose. Family members and friends of board members and authority staff are
presumed not to have a legitimate business purpose for attendance in a suite unless the
attendance has been approved by public vote of the authority, and the stated business purpose
made a part of the public record;
new text end

new text begin (3) if the authority has contracted or contracts for stadium marketing services and access
to a suite is included in the existing or future contract, the contract terms must require that
the contractor determine when suites are needed for marketing purposes and transmits to
the authority all data regarding its suite use, including but not limited to:
new text end

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

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

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

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

new text begin The data required by this clause must be transmitted to the authority within 30 days after
each event at which a suite was used;
new text end

new text begin (4) authority staff may not use a suite except with the express written assignment of
duties by the executive director, may not be provided free food, and may not be provided
free parking unless necessary to complete the assigned duties; and
new text end

new text begin (5) provision of tickets to events and use of suites for a purpose other than marketing or
oversight must be reported to the legislative auditor.
new text end

new text begin (b) Data that the authority receives under paragraph (a), clause (3), are public data unless
otherwise classified by section 13.55.
new text end

new text begin (c) The authority must negotiate a return of all stadium suites to the primary tenant, or
other interested parties, in return for fair market value. A provision may be negotiated
allowing limited access to suites for marketing purposes. Any revenues received pursuant
to this paragraph are appropriated to the commissioner of management and budget to pay
for state debt service on the stadium.
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. 9.

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 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.
new text end

Sec. 10.

Minnesota Statutes 2016, section 473J.13, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Reserves. new text end

new text begin All reserves created under this chapter in excess of $1,000,000 must
be transferred to the commissioner of management and budget, who has authority over any
requested release of such reserves. If, in the determination of the commissioner, reserves
exceed necessary levels, the commissioner may transfer funds to debt service on stadium
bonds, and those funds are appropriated to the commissioner for that purpose.
new text end

Sec. 11. new text begin RECOVERY.
new text end

new text begin The authority shall recover the costs associated with food, parking, tickets and use of
stadium suites accrued prior to January 1, 2017, by persons whose use 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. 12. 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. 13. 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 as required by section 1 must be made no later than July 15, 2017.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-1798

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.