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SF 3407

as introduced - 91st Legislature (2019 - 2020) Posted on 02/20/2020 03:23pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to state government finance; adjusting the calculation for the stadium
general reserve account; requiring the commissioner of management and budget
to notify the legislature before making changes to the stadium general reserve
account; establishing a stadium payoff fund; transferring money; requiring the
stadium payoff fund balance be used to redeem or defease the stadium appropriation
bonds; amending Minnesota Statutes 2018, section 297E.021, subdivisions 3, 4,
by adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 16A.

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

Section 1.

new text begin [16A.728] STADIUM PAYOFF FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of fund. new text end

new text begin The commissioner of management and budget shall
establish the stadium payoff fund in the state treasury.
new text end

new text begin Subd. 2. new text end

new text begin Payoff supplement transfer. new text end

new text begin (a) If on the basis of a final closing balance for
the general fund for a fiscal year, the amount of the general reserve account under section
297E.021, subdivision 4, exceeds the greater of the stadium-related expenses under section
297E.021, subdivision 3, clause (1), or $40,000,000, the commissioner shall certify a payoff
supplement in the general reserve account. The payoff supplement is equal to the difference
between the general reserve account at the final closing of a fiscal year and the greater of
the stadium-related expenses, or $40,000,000.
new text end

new text begin (b) By October 1 of each year, the commissioner shall transfer the payoff supplement
computed under paragraph (a) to the stadium payoff fund.
new text end

new text begin Subd. 3. new text end

new text begin Use of fund. new text end

new text begin (a) After the date that the appropriation bonds under section
16A.695 become callable, the commissioner must use the amount in the fund to redeem or
defease outstanding debt for the stadium appropriation bonds under section 16A.965, to the
extent permitted by the bond contract. The money in the fund is appropriated for this purpose.
Notwithstanding sections 16A.66 and 16A.965, refunding bonds issued after redeeming
outstanding debt for the stadium authorized under section 473J.03, subdivision 8, using
funds from the stadium payoff fund may be issued without regard to whether the interest
to be paid on the bonds is includable in gross income for federal tax purposes.
new text end

new text begin (b) After consulting with the Legislative Advisory Commission, the commissioner may
transfer balances in the stadium payoff fund to the general fund to offset a shortfall in
revenue collected under section 297A.994.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin By October 15, 2020, and each year thereafter, the commissioner of
management and budget must analyze and report to the legislature about the use of the
money in the stadium payoff fund, and the amount of the actual and projected payoff balance
transfers from the general reserve account. The report should also analyze when the money
in the stadium payoff fund will be used to redeem or defease the outstanding debt on the
stadium appropriation bonds under section 16A.965. The report must be provided to the
chairs and ranking minority members of the house of representatives Committee on Ways
and Means and Taxes Committee, and the chairs and ranking minority members of the
senate Finance Committee and Taxes Committee.
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. 2.

Minnesota Statutes 2018, section 297E.021, subdivision 3, is amended to read:


Subd. 3.

Available revenues.

For purposes of this section, "available revenues" equals
the amount determined under subdivision 2deleted text begin, plus up to $20,000,000 each fiscal year from
the taxes imposed under section 290.06, subdivision 1
deleted text end:

(1) reduced by the following amounts paid for the fiscal year under:

(i) the appropriation to principal and interest on appropriation bonds under section
16A.965, subdivision 8;

(ii) the appropriation from the general fund to make operating expense payments under
section 473J.13, subdivision 2, paragraph (b);

(iii) the appropriation for contributions to the capital reserve fund under section 473J.13,
subdivision 4
, paragraph (c);

(iv) the appropriations under Laws 2012, chapter 299, article 4, for administration and
any successor appropriation;

(v) the reduction in revenues resulting from the sales tax exemptions under section
297A.71, subdivision 43;

(vi) reimbursements authorized by section 473J.15, subdivision 2, paragraph (d);

(vii) the compulsive gambling appropriations under section 297E.02, subdivision 3,
paragraph (c), and any successor appropriation; and

(viii) the appropriation for the city of St. Paul under section 16A.726, paragraph (c); and

(2) increased by the revenue deposited in the general fund under section 297A.994,
subdivision 4, clauses (1) to (3), for the fiscal year.

Sec. 3.

Minnesota Statutes 2018, section 297E.021, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Revenue dedication. new text end

new text begin If the commissioner of management and budget
determines that the available revenues determined under subdivision 2 are insufficient, the
commissioner may add up to $20,000,000 each fiscal year from the taxes imposed under
section 290.06, subdivision 1, to the available revenues under subdivision 3. The
commissioner must notify the chairs and ranking minority members of the house of
representatives Ways and Means Committee and the senate Finance Committee at least 15
days prior to increasing the available revenue under subdivision 3. Any increase made under
this subdivision must continue in subsequent fiscal years.
new text end

Sec. 4.

Minnesota Statutes 2018, section 297E.021, subdivision 4, is amended to read:


Subd. 4.

Appropriation; general reserve account.

To the extent the commissioner
determines that revenues are available under deleted text beginsubdivisiondeleted text endnew text begin subdivisionsnew text end 3 new text beginand 3a new text endfor the fiscal
year, those amounts are appropriated from the general fund for deposit in a general reserve
account established by order of the commissioner of management and budget. Amounts in
this reserve are appropriated as necessary for application against any shortfall in the amounts
deposited to the general fund under section 297A.994 or, after consultation with the
Legislative Commission on Planning and Fiscal Policy, amounts in this reserve are
appropriated to the commissioner of management and budget for other uses related to the
stadium authorized under section 473J.03, subdivision 8, that the commissioner deems
financially prudent including but not limited to reimbursements for capital and operating
costs relating to the stadium, refundings, and prepayment of debt. In no event, shall available
revenues be pledged, nor shall the appropriations of available revenues made by this section
constitute a pledge of available revenues as security for the prepayment of principal and
interest on the appropriation bonds under section 16A.965.

Sec. 5. new text beginCONDITIONAL REPEALER.
new text end

new text begin (a) The commissioner of management and budget shall report within 30 days that the
bonds under Minnesota Statutes, section 16A.965, have been redeemed or defeased to the
revisor of statutes.
new text end

new text begin (b) Minnesota Statutes, section 16A.728, is repealed 60 days after the commissioner of
management and budget certifies that the bonds under Minnesota Statutes, section 16A.965,
have been redeemed or defeased.
new text end