Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 778

Conference Committee Report - 90th Legislature (2017 - 2018) Posted on 05/19/2017 11:39pm

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

Current Version - Conference Committee Report

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 778
1.2A bill for an act
1.3relating to the Minnesota Sports Facilities Authority; providing for classification
1.4of certain data; modifying appointments to the authority board; modifying duties;
1.5restricting the use of stadium suites;amending Minnesota Statutes 2016, sections
1.613.55, subdivision 2; 473J.07, subdivisions 2, 3, 4, 8, by adding a subdivision;
1.7473J.09, subdivisions 6, 13, by adding subdivisions; 473J.13, by adding a
1.8subdivision; repealing Minnesota Statutes 2016, section 473J.09, subdivision 14.
1.9May 19, 2017
1.10The Honorable Kurt L. Daudt
1.11Speaker of the House of Representatives
1.12The Honorable Michelle L. Fischbach
1.13President of the Senate
1.14We, the undersigned conferees for H. F. No. 778 report that we have agreed upon the
1.15items in dispute and recommend as follows:
1.16That the Senate recede from its amendments and that H. F. No. 778 be further amended
1.17as follows:
1.18Delete everything after the enacting clause and insert:

1.19"ARTICLE 1
1.20MINNESOTA SPORTS FACILITIES AUTHORITY

1.21    Section 1. Minnesota Statutes 2016, section 13.55, subdivision 2, is amended to read:
1.22    Subd. 2. Public data. (a) The data made not public by the provisions of subdivision 1
1.23shall become public upon the occurrence of any of the following:
1.24    (a) (1) five years elapse from the date on which the lease or contract is entered into
1.25between the facility and the inquiring party or parties or the event which was the subject of
1.26inquiry occurs at the facility, whichever occurs earlier;
1.27    (b) (2) the event which was the subject of inquiry does not occur; or
2.1    (c) (3) the event which was the subject of inquiry occurs elsewhere.
2.2    (b) Data regarding persons receiving free or discounted admission, tickets, or other gifts
2.3from publicly owned and operated convention facilities, civic center authorities, or the
2.4Minnesota Sports Facilities Authority are public data unless the data are subject to the
2.5provisions of subdivision 1 or 4, paragraph (b).

2.6    Sec. 2. Minnesota Statutes 2016, section 16A.965, is amended by adding a subdivision to
2.7read:
2.8    Subd. 11. Prepayment of bonds. In each fiscal year in which there is reduction in the
2.9payment for stadium operating expenses under section 473J.13, subdivision 2, paragraph
2.10(b), clause (2), the commissioner shall set aside an amount equal to that reduction in a
2.11separate account in the general fund. When a sufficient amount has accumulated in that
2.12account to make it practicable, the commissioner must use amounts in the account to prepay
2.13or defease bonds in a manner that preserves the tax exempt status of the bonds.
2.14EFFECTIVE DATE.This section is effective beginning with fiscal year 2018.

2.15    Sec. 3. Minnesota Statutes 2016, section 297A.994, subdivision 4, is amended to read:
2.16    Subd. 4. General fund allocations. The commissioner must retain and deposit to the
2.17general fund the following amounts, as required by subdivision 3, clause (3):
2.18    (1) for state bond debt service support beginning in calendar year 2021, and for each
2.19calendar year thereafter through calendar year 2046, periodic amounts so that not later than
2.20December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has been
2.21deposited in the general fund. To determine aggregate present value, the commissioner must
2.22consult with the commissioner of management and budget regarding the present value dates,
2.23discount rate or rates, and schedules of annual amounts. The present value date or dates
2.24must be based on the date or dates bonds are sold under section 16A.965, or the date or
2.25dates other state funds, if any, are deposited into the construction fund. The discount rate
2.26or rates must be based on the true interest cost of the bonds issued under section 16A.965,
2.27or an equivalent 30-year bond index, as determined by the commissioner of management
2.28and budget. The schedule of annual amounts must be certified to the commissioner by the
2.29commissioner of management and budget and the finance officer of the city;
2.30    (2) for the capital improvement reserve appropriation to the Minnesota Sports Facilities
2.31Authority beginning in calendar year 2021, and for each calendar year thereafter through
3.1calendar year 2046, an aggregate annual amount equal to the amount paid by the state for
3.2this purpose in that calendar year under section 473J.13, subdivision 4;
3.3    (3) for the operating expense appropriation to the Minnesota Sports Facilities Authority
3.4beginning in calendar year 2021, and for each calendar year thereafter through calendar
3.5year 2046, an aggregate annual amount equal to the amount paid by the state for this purpose
3.6in that calendar year under section 473J.13, subdivision 2, determined without regard to the
3.7reduction under section 473J.13, subdivision 2, paragraph (b), clause (2);
3.8    (4) for recapture of state advances for capital improvements and operating expenses for
3.9calendar years 2016 through 2020 beginning in calendar year 2021, and for each calendar
3.10year thereafter until all amounts under this clause have been paid, proportionate amounts
3.11periodically until an aggregate amount equal to the present value of all amounts paid by the
3.12state have been deposited in the general fund. To determine the present value of the amounts
3.13paid by the state to the authority and the present value of amounts deposited to the general
3.14fund under this clause, the commissioner shall consult with the commissioner of management
3.15and budget regarding the present value dates, discount rate or rates, and schedule of annual
3.16amounts. The present value dates must be based on the dates state funds are paid to the
3.17authority, or the dates the commissioner of revenue deposits taxes for purposes of this clause
3.18to the general fund. The discount rates must be based on the reasonably equivalent cost of
3.19state funds as determined by the commissioner of management and budget. The schedule
3.20of annual amounts must be revised to reflect amounts paid under section 473J.13, subdivision
3.212
, paragraph (b), for 2016 to 2020, and subdivision 4, paragraph (c), for 2016 to 2020, and
3.22taxes deposited to the general fund from time to time under this clause, and the schedule
3.23and revised schedules must be certified to the commissioner by the commissioner of
3.24management and budget and the finance officer of the city, and are transferred as accrued
3.25from the general fund for repayment of advances made by the state to the authority.
3.26Determination of the present value amounts must be made without regard to any reduction
3.27in the state advances resulting from the reduction in the payments under section 473J.13,
3.28subdivision 2, paragraph (b), clause (2); and
3.29    (5) to capture increases in taxes imposed under the special law, for the benefit of the
3.30Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for each calendar
3.31year thereafter through 2046, there shall be deposited to the general fund in proportionate
3.32periodic payments in the following year, an amount equal to the following:
3.33    (i) 50 percent of the difference, if any, by which the amount of the net annual taxes for
3.34the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus
3.35$1,000,000, inflated at two percent per year since 2011, minus
4.1    (ii) 25 percent of the difference, if any, by which the amount of the net annual taxes for
4.2the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus
4.3$3,000,000, inflated at two percent per year since 2011.
4.4EFFECTIVE DATE.This section is effective upon compliance by the governing body
4.5of the city of Minneapolis with Minnesota Statutes, section 645.021.

4.6    Sec. 4. Minnesota Statutes 2016, section 473J.03, is amended by adding a subdivision to
4.7read:
4.8    Subd. 13. Stadium space. "Stadium space" means a seat, personal seat license, suite,
4.9club room, parking, or any other part of the stadium or license to access any part of the
4.10stadium that a member of the general public would have to pay to use or access.

4.11    Sec. 5. Minnesota Statutes 2016, section 473J.07, subdivision 2, is amended to read:
4.12    Subd. 2. Membership. (a) The authority shall consist of five members.
4.13    (b) The chair and two Three members shall be appointed by the governor and confirmed
4.14by the house of representatives and the senate. One member appointed by the governor shall
4.15serve until December 31 of the third year following appointment and one member shall
4.16serve until December 31 of the fourth year following appointment. Thereafter, members
4.17appointed by the governor shall serve four-year terms, beginning January 1. Each member
4.18serves until a successor is appointed and takes office unless removed by the appointing
4.19authority for cause. Cause for removal includes violation of the employee code of ethics in
4.20section 43A.38. The chair serves at the pleasure of the governor.
4.21    (c) The mayor of the city shall appoint and the house of representatives and the senate
4.22shall confirm two members to the authority. One member appointed by the mayor of the
4.23city shall serve until December 31 of the third year following appointment and one member
4.24shall serve until December 31 of the fourth year following appointment. Thereafter, members
4.25appointed under this paragraph shall serve four-year terms beginning January 1. Each
4.26member serves until a successor is appointed and takes office unless removed by the
4.27appointing authority for cause. Cause for removal includes violation of the employee code
4.28of ethics in section 43A.38. Members appointed under this paragraph may reside within the
4.29city and may be appointed officials of a political subdivision.
4.30    (d) The initial members of the authority must be appointed not later than June 13, 2012.
4.31EFFECTIVE DATE.This section is effective the day following final enactment and
4.32applies to members appointed on or after the day following final enactment.

5.1    Sec. 6. Minnesota Statutes 2016, section 473J.07, subdivision 3, is amended to read:
5.2    Subd. 3. Compensation. The authority may compensate its members, other than the
5.3chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided by
5.4other law, a salary in an amount fixed by the authority, no more than half of the salary of
5.5the executive director of the authority in fiscal year 2018 and shall be reimbursed for
5.6reasonable expenses to the same extent as a member. Beginning in fiscal year 2019, the
5.7chair shall receive the same compensation as other board members and shall be reimbursed
5.8for reasonable expenses to the same extent as a member.

5.9    Sec. 7. Minnesota Statutes 2016, section 473J.07, subdivision 4, is amended to read:
5.10    Subd. 4. Chair. The chair presides at all meetings of the authority, if present, and
5.11performs all other assigned duties and functions. The members of the authority shall
5.12biennially elect a chair from among its members. The authority may appoint from among
5.13its members a vice-chair to act for the chair during the temporary absence or disability of
5.14the chair, and any other officers the authority determines are necessary or convenient.

5.15    Sec. 8. Minnesota Statutes 2016, section 473J.07, subdivision 7, is amended to read:
5.16    Subd. 7. Audit. The legislative auditor shall audit the books and accounts of the authority
5.17once each year or as often as the legislative auditor's funds and personnel permit. The
5.18authority shall pay the total cost of the audit pursuant to section 3.9741. The legislative
5.19auditor may conduct examinations of the authority's finances, budgets, expenditures,
5.20revenues, and its operation. The legislative auditor may periodically examine the authority's
5.21use of stadium space by the authority's members, staff, family, friends, charitable
5.22organizations, and vendors.

5.23    Sec. 9. Minnesota Statutes 2016, section 473J.07, subdivision 8, is amended to read:
5.24    Subd. 8. Executive director; employees. The authority may appoint an executive director
5.25to serve as the chief executive officer of the authority. The executive director serves at the
5.26pleasure of the authority and receives compensation as determined by the authority not to
5.27exceed $135,000. The executive director may be responsible for the operation, management,
5.28and promotion of activities of the authority, as prescribed by the authority. The executive
5.29director has the powers necessarily incident to the performance of duties required and powers
5.30granted by the authority, but does not have authority to incur liability or make expenditures
5.31on behalf of the authority without general or specific directions by the authority, as shown
5.32by the bylaws or minutes of a meeting of the authority. The executive director is responsible
6.1for hiring, supervision, and dismissal of all other employees of the authority. The authority
6.2must conduct an annual employee evaluation of the executive director, which must be
6.3reviewed and approved by the entire board.

6.4    Sec. 10. Minnesota Statutes 2016, section 473J.07, is amended by adding a subdivision
6.5to read:
6.6    Subd. 8a. Budget; report. After adoption, the authority shall submit its annual budget
6.7to the commissioner of management and budget and to the chairs and ranking minority
6.8members of the senate finance and house of representatives ways and means committees.

6.9    Sec. 11. Minnesota Statutes 2016, section 473J.07, subdivision 9, is amended to read:
6.10    Subd. 9. Web site. The authority shall establish a Web site for purposes of providing
6.11information to the public concerning all actions taken by the authority. At a minimum, the
6.12Web site must contain a current version of the authority's bylaws, notices of upcoming
6.13meetings, minutes of the authority's meetings, each annual budget, each use agreement,
6.14each management agreement, each sponsorship agreement, meeting minutes for all meetings,
6.15policies, and procedures, and contact telephone, electronic mail, and facsimile numbers for
6.16public comments. This subdivision does not apply to information that is classified as not
6.17public data, as defined in section 13.02, subdivision 8a, under other law.

6.18    Sec. 12. Minnesota Statutes 2016, section 473J.09, subdivision 6, is amended to read:
6.19    Subd. 6. Employees; contracts for services. The authority may employ persons and
6.20contract for services necessary to carry out its functions, including the utilization of
6.21employees and consultants retained by other governmental entities. As a condition of
6.22employment, employees selected by the authority may not engage in partisan political
6.23activities. The authority shall enter into an agreement with the city regarding traffic control
6.24for the stadium.

6.25    Sec. 13. Minnesota Statutes 2016, section 473J.09, subdivision 13, is amended to read:
6.26    Subd. 13. Legislative report. The authority must report to the Legislative Commission
6.27on Minnesota Sports Facilities and the chairs and ranking minority members of the legislative
6.28committees with jurisdiction over state government finance and to the senate Finance
6.29Committee and the house of representatives Ways and Means Committee by January 15 of
6.30each year on the following:
6.31(1) any recommended increases in the rate or dollar amount of tax;
7.1(2) any recommended increases in the debt of the authority;
7.2(3) the overall work and role of the authority;
7.3(4) the authority's proposed operating and capital budgets; and
7.4(5) the authority's implementation of the operating and capital budgets., including
7.5information on actual revenues and expenditures, events conducted, and all expected or
7.6unexpected maintenance and capital repair needs arising since the time of the last report;
7.7and
7.8(6) a listing of all stadium amenities under the control of the authority since the time of
7.9the last report, and how the amenities were used.

7.10    Sec. 14. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
7.11to read:
7.12    Subd. 16. Consignment agreement; authority's suites. (a) The authority must negotiate
7.13an agreement providing for consignment of the authority's suites to the primary tenant
7.14consistent with the use agreement and subject to this subdivision. The final terms of the
7.15consignment must be approved by the chairs of the committees of the house of representatives
7.16and the senate with jurisdiction over state government finance and must include the following:
7.17(1) the primary tenant is the consignee and must make all commercially reasonable
7.18efforts to sell access to the suites to third parties;
7.19(2) the authority must receive a percentage of the revenues from consignment of the
7.20suites each year equal to at least 90 percent of the first $400,000 of revenue and 65 percent
7.21of any amount in excess of that and the amount of revenue retained by the primary tenant
7.22must not exceed its actual transaction, marketing, and administrative costs that it would not
7.23have incurred but for the consignment;
7.24(3) the authority may agree to retain for its management vendor an option to access one
7.25suite during not more than two NFL games conducted in the stadium each calendar year
7.26for marketing purposes; and
7.27(4) the terms of the consignment agreement are effective for a period of five years
7.28beginning no later than August 1, 2017, and must be renegotiated no later than August 1,
7.292022, and every five years thereafter.
7.30(b) Data collected, created, or maintained by the authority related to negotiation of the
7.31consignment required by this paragraph are nonpublic data, as defined in section 13.02,
7.32subdivision 9, if the data derives independent economic value, actual or potential, from not
8.1being generally known to, and not being readily ascertainable by, other persons who can
8.2obtain economic value from its disclosure or use, provided that all data related to the
8.3consignment, including data classified by this paragraph, are public five years after the
8.4terms of the consignment expire. Data provided to the legislative chairs under the approval
8.5requirement in paragraph (a) may not be disclosed without the consent of the primary tenant.
8.6(c) The authority must use revenues from the consignment agreement to pay the operating
8.7expenses of the stadium.
8.8EFFECTIVE DATE.This section is effective the day following final enactment.

8.9    Sec. 15. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
8.10to read:
8.11    Subd. 17. Report on stadium space use by authority members, staff, and vendors.
8.12    The authority shall report the following information annually to the governor, the mayor of
8.13the city of Minneapolis, the chair of the Legislative Commission on Minnesota Sports
8.14Facilities, and the chairs and ranking minority members of the senate Finance Committee
8.15and the house of representatives Ways and Means Committee regarding use of stadium
8.16space by authority members, staff, family, friends, charitable organizations, and vendors or
8.17their guests:
8.18    (1) the costs of use;
8.19    (2) the identity of each adult attendee and their legitimate business purpose for attendance;
8.20    (3) the date, time, and a general description of the stadium event at which the suite was
8.21used; and
8.22    (4) the value and description of any food, parking, or other benefits provided to attendees.

8.23    Sec. 16. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision
8.24to read:
8.25    Subd. 18. Code of conduct. The authority shall adopt and comply with the latest version
8.26of the state code of conduct promulgated by Minnesota Management and Budget. For
8.27purposes of section 43A.38 as applied to the authority, an authority member or an authority
8.28staff member is an "employee of the executive branch"; use of or preferential access to
8.29stadium space by an authority member or by authority staff, unless permitted under this
8.30section, constitutes a "gift" under section 43A.38, subdivision 2; and constitutes "use of
8.31state property for the employee's private interest" under section 43A.48, subdivision 4.

9.1    Sec. 17. [473J.095] AUTHORITY'S USE OF STADIUM SPACE.
9.2    Subdivision 1. Application. The restrictions in this section apply to the use of stadium
9.3space provided to the authority under the terms of the lease or use agreement required under
9.4section 473J.15, subdivision 3.
9.5    Subd. 2. Use of stadium space by authority members and staff. (a) Authority members
9.6and authority staff, including the executive director of the authority, may not use stadium
9.7space unless the use is for a legitimate business purpose. For purposes of this subdivision,
9.8"legitimate business purpose" means:
9.9    (1) participating in a marketing effort arranged by the authority's management vendor;
9.10    (2) conducting oversight of the operation of the stadium; or
9.11    (3) making stadium space available to nonprofit charitable organizations to provide
9.12access to events at the stadium for people served by the charitable organization.
9.13    The executive director of the authority must ensure that use of stadium space does not
9.14violate open meeting laws.
9.15    (b) Use of stadium space by authority staff must be based on an express written
9.16assignment of duties by the executive director or, in the case of use by the executive director,
9.17an express written assignment of duties by the authority chair. In all cases, use of stadium
9.18space by authority staff must be approved by a vote of the authority at a public meeting,
9.19and the legitimate business purpose for use must be made a part of the public record.
9.20Authority staff may not be provided free food, beverages, or stadium parking unless necessary
9.21to complete the assigned duties.
9.22    Subd. 4. Use of stadium space by family, friends, and other guests. The authority or
9.23its members may not grant access to stadium space to family members, friends, or other
9.24guests of the authority's members or staff unless the use is for a legitimate business purpose.
9.25The use must be approved by a vote of the authority at a public meeting, and the legitimate
9.26business purpose must be made a part of the public record. For purposes of this subdivision,
9.27"legitimate business purpose" means being a prospective user of the stadium.
9.28    Subd. 5. Use of stadium space by managing vendor. If the authority contracts with a
9.29management vendor for services to market the stadium, the authority may extend to the
9.30vendor complimentary access to stadium space for the purpose of marketing the stadium to
9.31prospective users, provided the contract requires the vendor to report to the authority the
9.32following information within 30 days after each event at which the vendor has used stadium
9.33space:
10.1    (1) the costs of use;
10.2    (2) the identity of each adult attendee and their legitimate business purpose for attendance;
10.3    (3) the date, time, and a general description of the stadium event at which the suite was
10.4used; and
10.5    (4) the value and description of any food, parking, or other benefits provided to attendees.
10.6    Data that the authority receives under this subdivision is public data unless otherwise
10.7classified by section 13.55.
10.8    Subd. 6. Open market purchase. This section does not prohibit an authority member,
10.9authority staff, or family, friends, or other guests of authority members or staff from attending
10.10events or renting stadium space, if a ticket or a right of access to the space was purchased
10.11on the open market through the same channels, and for the same price, as those available
10.12to the general public.
10.13EFFECTIVE DATE.This section is effective the day following final enactment.

10.14    Sec. 18. Minnesota Statutes 2016, section 473J.13, subdivision 2, is amended to read:
10.15    Subd. 2. Operating expenses. (a) The authority must pay or cause to be paid all operating
10.16expenses of the stadium. The authority must require in the lease or use agreement with the
10.17NFL team that the NFL team pay the authority, beginning January 1, 2016, or other date as
10.18mutually agreed upon by the parties, toward operating costs of the stadium, $8,500,000
10.19each year, increased by a three percent annual inflation rate.
10.20(b)(1) Beginning January 1, 2016, or other date as mutually agreed upon by the parties,
10.21and continuing through 2020, the state shall pay the authority operating expenses, $6,000,000
10.22each year, increased by an annual adjustment factor. The payment of $6,000,000 per year
10.23beginning in 2016 is a payment by the state, which shall be repaid to the state, using funds
10.24as provided under section 297A.994, subdivision 4, clause (4). After 2020, the state shall
10.25assume this payment, using funds generated in accordance with the city of Minneapolis as
10.26specified under section 297A.994, subdivision 4, clause (3);
10.27(2) beginning for fiscal year 2018 through fiscal year 2022, the payment under this
10.28section must be reduced by the greater of (i) $400,000 or (ii) the additional revenue received
10.29by the authority under the consignment under section 473J.09, subdivision 16, in the prior
10.30fiscal year; and
11.1(3) beginning for fiscal year 2023, the payment under this section must be reduced by
11.2the additional revenue received by the authority under the consignment under section 473J.09,
11.3subdivision 16, in the prior fiscal year.
11.4(c) The authority may establish an operating reserve to cover operating expense shortfalls
11.5and may accept funds from any source for deposit in the operating reserve. The establishment
11.6or funding of an authority operating reserve must not decrease the amounts required to be
11.7paid to the authority toward operating costs under this subdivision unless agreed to by the
11.8authority.
11.9(d) The authority will be responsible for operating cost overruns.
11.10(e) After the joint selection of the third-party manager or program manager, the authority
11.11may agree with a program manager or other third-party manager of the stadium on a fixed
11.12cost operating, management, or employment agreement with operating cost protections
11.13under which the program manager or third-party manager assumes responsibility for stadium
11.14operating costs and shortfalls. The agreement with the manager must require the manager
11.15to prepare an initial and ongoing operating plan and operating budgets for approval by the
11.16authority in consultation with the NFL team. The manager must agree to operate the stadium
11.17in accordance with the approved operating plan and operating budget.
11.18EFFECTIVE DATE.This section is effective July 1, 2017.

11.19    Sec. 19. Minnesota Statutes 2016, section 473J.13, is amended by adding a subdivision
11.20to read:
11.21    Subd. 2a. Operating expense fee. If a provision is enacted exempting from the tax
11.22imposed under chapter 297A any amounts paid for rental, use, or access to suites, the
11.23authority may impose a fee equal to a percentage of the gross receipts received for the rental,
11.24use, or access to the suites in the stadium. If the authority elects to use the authority under
11.25this section, it must set the rate of the fee each year so that the estimated fee revenue for
11.26that year will not exceed the lesser of:
11.27(1) the estimated reduction in operating expense payments under subdivision 2, paragraph
11.28(b), the net of the estimated consignment revenues to be received under section 473J.09,
11.29subdivision 16; or
11.30(2) one-half of the reduction in tax under chapter 297A as a result of the enacted
11.31exemption.

12.1    Sec. 20. Minnesota Statutes 2016, section 473J.27, subdivision 2, is amended to read:
12.2    Subd. 2. High school league. The lessee of the stadium must make the facilities of the
12.3stadium available for use by the Minnesota State High School League for at least seven
12.4days each year for high school soccer and football tournaments. The lessee of the stadium
12.5must provide, and may not directly, or through a management company, charge the league
12.6a fee for, this use, including security, ticket takers, custodial or cleaning services, or other
12.7similar services in connection with this use.

12.8    Sec. 21. RECOVERY.
12.9The Minnesota Sports Facilities Authority must make every effort to recover the fair
12.10market value of any food, parking, tickets, and access to stadium suites provided to a person
12.11prior to January 1, 2017, if the provision of those benefits to the person was not in the public
12.12interest. The authority shall report on recovery efforts to the commissioner of management
12.13and budget and to the chairs and ranking minority members of the senate finance and house
12.14of representatives ways and means committees by May 31, 2017. Money recovered under
12.15this section is transferred by July 1, 2017, to the commissioner of management and budget
12.16for deposit in the general reserve account established under Minnesota Statutes, section
12.17297E.021, subdivision 4.
12.18EFFECTIVE DATE.This section is effective the day following final enactment.

12.19    Sec. 22. LEGISLATIVE AUDITOR REVIEW.
12.20(a) No later than January 15, 2018, the legislative auditor is requested to review the
12.21operations and management structure of major sports event facilities in Minnesota that are
12.22both publicly owned and publicly operated. Upon completion, the review must be submitted
12.23to the chairs and ranking minority members of the legislative committees with jurisdiction
12.24over state government finance, and to the Legislative Commission on Minnesota Sports
12.25Facilities.
12.26(b) At a minimum, the review must consider:
12.27(1) the structure and oversight responsibilities of each facility's public governing body;
12.28(2) whether the public governing bodies have access to tickets, suites, or other premium
12.29amenities for events conducted in the facilities they oversee, including the terms under
12.30which the access is provided; and
13.1(3) whether the public governing bodies have adopted policies or procedures to ensure
13.2their oversight activities, including those of individual members acting on behalf of the
13.3governing body, are transparent and in furtherance of the public interest.
13.4(c) The review must compare and contrast the practices of each public governing body
13.5and may recommend best practices for improving the governance, operations, and public
13.6accountability of each body. As necessary, the review may also propose any changes in law
13.7necessary to implement these best practices.

13.8    Sec. 23. REPEALER.
13.9Minnesota Statutes 2016, section 473J.09, subdivision 14, is repealed.

13.10    Sec. 24. EFFECTIVE DATE.
13.11    This act is effective the day following final enactment. The terms of all current members
13.12of the Minnesota Sports Facilities Authority terminate June 30, 2017. Appointing authorities
13.13must appoint new members of the authority by June 10, 2017, to serve terms beginning July
13.141, 2017.

13.15ARTICLE 2
13.16METROPOLITAN SPORTS FACILITIES COMMISSION TECHNICAL CHANGES

13.17    Section 1. Minnesota Statutes 2016, section 13.55, subdivision 1, is amended to read:
13.18    Subdivision 1. Not public classification. The following data received, created, or
13.19maintained by or for publicly owned and operated convention facilities, civic center
13.20authorities, or the Metropolitan Minnesota Sports Facilities Commission Authority are
13.21classified as nonpublic data pursuant to section 13.02, subdivision 9; or private data on
13.22individuals pursuant to section 13.02, subdivision 12:
13.23(a) a letter or other documentation from any person who makes inquiry to or who is
13.24contacted by the facility regarding the availability of the facility for staging events;
13.25(b) identity of firms and corporations which contact the facility;
13.26(c) type of event which they wish to stage in the facility;
13.27(d) suggested terms of rentals; and
13.28(e) responses of authority staff to these inquiries.

14.1    Sec. 2. Minnesota Statutes 2016, section 340A.404, subdivision 1, is amended to read:
14.2    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to the
14.3following establishments located within its jurisdiction:
14.4(1) hotels;
14.5(2) restaurants;
14.6(3) bowling centers;
14.7(4) clubs or congressionally chartered veterans organizations with the approval of the
14.8commissioner, provided that the organization has been in existence for at least three years
14.9and liquor sales will only be to members and bona fide guests, except that a club may permit
14.10the general public to participate in a wine tasting conducted at the club under section
14.11340A.419 ;
14.12(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by the
14.13Minnesota Sports Facilities Authority; and
14.14(6) sports facilities located on land owned by the Metropolitan Sports Commission; and
14.15(7) (6) exclusive liquor stores.
14.16(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or
14.17an on-sale malt liquor license to a theater within the city, notwithstanding any law, local
14.18ordinance, or charter provision. A license issued under this paragraph authorizes sales on
14.19all days of the week to persons attending events at the theater.
14.20(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or
14.21an on-sale malt liquor license to a convention center within the city, notwithstanding any
14.22law, local ordinance, or charter provision. A license issued under this paragraph authorizes
14.23sales on all days of the week to persons attending events at the convention center. This
14.24paragraph does not apply to convention centers located in the seven-county metropolitan
14.25area.
14.26(d) A city may issue an on-sale wine license and an on-sale malt liquor license to a
14.27person who is the owner of a summer collegiate league baseball team, or to a person holding
14.28a concessions or management contract with the owner, for beverage sales at a ballpark or
14.29stadium located within the city for the purposes of summer collegiate league baseball games
14.30at the ballpark or stadium, notwithstanding any law, local ordinance, or charter provision.
14.31A license issued under this paragraph authorizes sales on all days of the week to persons
14.32attending baseball games at the ballpark or stadium.

15.1    Sec. 3. Minnesota Statutes 2016, section 352.01, subdivision 2a, is amended to read:
15.2    Subd. 2a. Included employees. (a) "State employee" includes:
15.3    (1) employees of the Minnesota Historical Society;
15.4    (2) employees of the State Horticultural Society;
15.5    (3) employees of the Minnesota Crop Improvement Association;
15.6    (4) employees of the adjutant general whose salaries are paid from federal funds and
15.7who are not covered by any federal civilian employees retirement system;
15.8    (5) employees of the Minnesota State Colleges and Universities who are employed under
15.9the university or college activities program;
15.10    (6) currently contributing employees covered by the system who are temporarily
15.11employed by the legislature during a legislative session or any currently contributing
15.12employee employed for any special service as defined in subdivision 2b, clause (6);
15.13    (7) employees of the legislature who are appointed without a limit on the duration of
15.14their employment;
15.15    (8) trainees who are employed on a full-time established training program performing
15.16the duties of the classified position for which they will be eligible to receive immediate
15.17appointment at the completion of the training period;
15.18    (9) employees of the Minnesota Safety Council;
15.19    (10) any employees who are on authorized leave of absence from the Transit Operating
15.20Division of the former Metropolitan Transit Commission and who are employed by the
15.21labor organization which is the exclusive bargaining agent representing employees of the
15.22Transit Operating Division;
15.23    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
15.24Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito Control
15.25Commission unless excluded under subdivision 2b or are covered by another public pension
15.26fund or plan under section 473.415, subdivision 3;
15.27    (12) judges of the Tax Court;
15.28    (13) personnel who were employed on June 30, 1992, by the University of Minnesota
15.29in the management, operation, or maintenance of its heating plant facilities, whose
15.30employment transfers to an employer assuming operation of the heating plant facilities, so
16.1long as the person is employed at the University of Minnesota heating plant by that employer
16.2or by its successor organization;
16.3    (14) personnel who are employed as seasonal employees in the classified or unclassified
16.4service;
16.5    (15) persons who are employed by the Department of Commerce as a peace officer in
16.6the Commerce Fraud Bureau under section 45.0135 who have attained the mandatory
16.7retirement age specified in section 43A.34, subdivision 4;
16.8    (16) employees of the University of Minnesota unless excluded under subdivision 2b,
16.9clause (3);
16.10    (17) employees of the Middle Management Association whose employment began after
16.11July 1, 2007, and to whom section 352.029 does not apply;
16.12    (18) employees of the Minnesota Government Engineers Council to whom section
16.13352.029 does not apply;
16.14(19) employees of the Minnesota Sports Facilities Authority;
16.15(20) employees of the Minnesota Association of Professional Employees;
16.16(21) employees of the Minnesota State Retirement System;
16.17(22) employees of the State Agricultural Society;
16.18(23) employees of the Gillette Children's Hospital Board who were employed in the
16.19state unclassified service at the former Gillette Children's Hospital on March 28, 1974; and
16.20(24) if approved for coverage by the Board of Directors of Conservation Corps Minnesota,
16.21employees of Conservation Corps Minnesota so employed on June 30, 2003.
16.22    (b) Employees specified in paragraph (a), clause (13), are included employees under
16.23paragraph (a) if employer and employee contributions are made in a timely manner in the
16.24amounts required by section 352.04. Employee contributions must be deducted from salary.
16.25Employer contributions are the sole obligation of the employer assuming operation of the
16.26University of Minnesota heating plant facilities or any successor organizations to that
16.27employer.

16.28    Sec. 4. Minnesota Statutes 2016, section 473.121, subdivision 5a, is amended to read:
16.29    Subd. 5a. Metropolitan agency. "Metropolitan agency" means the Metropolitan Parks
16.30and Open Space Commission, and the Metropolitan Airports Commission, and Metropolitan
16.31Sports Facilities Commission.

17.1    Sec. 5. Minnesota Statutes 2016, section 473.164, is amended to read:
17.2473.164 SPORTS, AIRPORT COMMISSIONS COMMISSION TO PAY COUNCIL
17.3COSTS.
17.4    Subdivision 1. Annually reimburse. The Metropolitan Sports Facilities Commission
17.5and the Metropolitan Airports Commission shall annually reimburse the council for costs
17.6incurred by the council in the discharge of its responsibilities relating to the commission.
17.7The costs may be charged against any revenue sources of the commission as determined
17.8by the commission.
17.9    Subd. 2. Estimates, budget, transfer. On or before May 1 of each year, the council
17.10shall transmit to each the commission an estimate of the costs which the council will incur
17.11in the discharge of its responsibilities related to the commission in the next budget year
17.12including, without limitation, costs in connection with the preparation, review,
17.13implementation and defense of plans, programs and budgets of the commission. Each The
17.14commission shall include the estimates in its budget for the next budget year and may
17.15transmit its comments concerning the estimated amount to the council during the budget
17.16review process. Prior to December 15 of each year, the amount budgeted by each the
17.17commission for the next budget year may be changed following approval by the council.
17.18During each budget year, the commission shall transfer budgeted funds to the council in
17.19advance when requested by the council.
17.20    Subd. 3. Final statement. At the conclusion of each budget year, the council, in
17.21cooperation with each the commission, shall adopt a final statement of costs incurred by
17.22the council for each the commission. Where costs incurred in the budget year have exceeded
17.23the amount budgeted, each the commission shall transfer to the council the additional moneys
17.24needed to pay the amount of the costs in excess of the amount budgeted, and shall include
17.25a sum in its next budget. Any excess of budgeted costs over actual costs may be retained
17.26by the council and applied to the payment of budgeted costs in the next year.

17.27    Sec. 6. Minnesota Statutes 2016, section 473.565, subdivision 1, is amended to read:
17.28    Subdivision 1. In MSRS; exceptions. All employees of the former commission shall
17.29be members of the Minnesota State Retirement System with respect to service rendered on
17.30or after May 17, 1977, except as provided in this section.

18.1    Sec. 7. Minnesota Statutes 2016, section 473.755, subdivision 4, is amended to read:
18.2    Subd. 4. Bylaws. The authority shall adopt bylaws to establish rules of procedure, the
18.3powers and duties of its officers, and other matters relating to the governance of the authority
18.4and the exercise of its powers. Except as provided in this section, the bylaws adopted under
18.5this subdivision shall be similar in form and substance to bylaws adopted by the Metropolitan
18.6Sports Facilities Commission pursuant to Minnesota Statutes 2012, section 473.553.

18.7    Sec. 8. Minnesota Statutes 2016, section 473.763, subdivision 2, is amended to read:
18.8    Subd. 2. Acquisition. Subject to the rules of Major League Baseball, the governor and
18.9the Metropolitan Sports Facilities Commission must attempt to facilitate the formation of
18.10a corporation to acquire the baseball franchise and to identify an individual private managing
18.11owner of the corporation. The corporation formed to acquire the franchise shall have a
18.12capital structure in compliance with all of the following provisions:
18.13(1) there may be two classes of capital stock: common stock and preferred stock. Both
18.14classes of stock must give holders voting rights with respect to any relocation or voluntary
18.15contraction of the franchise;
18.16(2) the private managing owner must own no less than 25 percent and no more than 35
18.17percent of the common stock. For purposes of this restriction, shares of common stock
18.18owned by the private managing owner include shares of common stock owned by any related
18.19taxpayer as defined in section 1313(c) of the Internal Revenue Code of 1986, as amended.
18.20Other than the rights of all other holders of common stock and preferred stock with respect
18.21to relocation or voluntary contraction of the franchise, the private managing owner must
18.22control all aspects of the operation of the corporation;
18.23(3) other than the private managing owner, no individual or entity may own more than
18.24five percent of the common stock of the corporation;
18.25(4) at least 50 percent of the ownership of the common stock must be sold to members
18.26of the general public in a general solicitation and a person or entity must not own more than
18.27one percent of common stock of the corporation; and
18.28(5) the articles of incorporation, bylaws, and other governing documents must provide
18.29that the franchise may not move outside of the state or agree to voluntary contraction without
18.30approval of at least 75 percent of the shares of common stock and at least 75 percent of the
18.31shares of preferred stock. Notwithstanding any law to the contrary, these 75 percent approval
18.32requirements shall not be amended by the shareholders or by any other means.
19.1Except as specifically provided by Laws 2006, chapter 257, no state agency may spend
19.2money from any state fund for the purpose of generating revenue under this subdivision or
19.3for the purpose of providing operating support or defraying operating losses of a professional
19.4baseball franchise.

19.5    Sec. 9. Minnesota Statutes 2016, section 473J.13, subdivision 3, is amended to read:
19.6    Subd. 3. Public access. The authority will work to maximize access for public and
19.7amateur sports, community, and civic events, and other public events in type and on terms
19.8consistent with those currently held at the existing football stadium, as defined in Minnesota
19.9Statutes 2012, section 473.551, subdivision 9. The authority may provide that these events
19.10have exclusive use of the premises at agreed-upon times subject to the scheduling rights of
19.11the NFL team under the lease or use agreement.

19.12    Sec. 10. Minnesota Statutes 2016, section 473J.25, subdivision 3, is amended to read:
19.13    Subd. 3. Metropolitan Sports Facilities Commission abolished; interim powers
19.14conferred on authority. Upon transfer to the authority of all remaining assets, liabilities,
19.15and obligations of the Metropolitan Sports Facilities Commission, in subdivision 2, the
19.16Metropolitan Sports Facilities Commission is abolished. When the remaining assets,
19.17liabilities, and obligations of the Metropolitan Sports Facilities Commission have been
19.18transferred to the authority and the commission has been abolished, the powers and duties
19.19of the commission under Minnesota Statutes 2012, sections 473.551 to 473.599, and any
19.20other law shall devolve upon the authority, in addition to the powers and duties of the
19.21authority under chapter 473J, until the first NFL home game is played at the stadium.

19.22    Sec. 11. REPEALER.
19.23Minnesota Statutes 2016, sections 137.50, subdivision 5; 473.551; 473.552; 473.553,
19.24subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13; 473.556, subdivisions 1, 2, 3, 4, 5,
19.256, 7, 8, 9, 10, 11, 12, 13, 14, 16, and 17; 473.561; 473.564, subdivisions 2 and 3; 473.572;
19.26473.581; 473.592, subdivision 1; 473.595; 473.598; 473.599; and 473.76, are repealed.

19.27    Sec. 12. EFFECTIVE DATE.
19.28Sections 1 to 11 are effective June 30, 2017."
19.29Delete the title and insert:
20.1"A bill for an act
20.2relating to state government; changing provisions of the Minnesota Sports Facility
20.3Authority; requiring a legislative auditor review; making technical changes to the
20.4Metropolitan Sports Facilities Commission;amending Minnesota Statutes 2016,
20.5sections 13.55, subdivisions 1, 2; 16A.965, by adding a subdivision; 297A.994,
20.6subdivision 4; 340A.404, subdivision 1; 352.01, subdivision 2a; 473.121,
20.7subdivision 5a; 473.164; 473.565, subdivision 1; 473.755, subdivision 4; 473.763,
20.8subdivision 2; 473J.03, by adding a subdivision; 473J.07, subdivisions 2, 3, 4, 7,
20.98, 9, by adding a subdivision; 473J.09, subdivisions 6, 13, by adding subdivisions;
20.10473J.13, subdivisions 2, 3, by adding a subdivision; 473J.25, subdivision 3; 473J.27,
20.11subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 473J;
20.12repealing Minnesota Statutes 2016, sections 137.50, subdivision 5; 473.551;
20.13473.552; 473.553, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 473.556,
20.14subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17; 473.561; 473.564,
20.15subdivisions 2, 3; 473.572; 473.581; 473.592, subdivision 1; 473.595; 473.598;
20.16473.599; 473.76; 473J.09, subdivision 14."
21.1
We request the adoption of this report and repassage of the bill.
21.2
House Conferees:
21.3
.....
.....
21.4
Sarah Anderson
Bob Vogel
21.5
.....
21.6
Julie Sandstede
21.7
Senate Conferees:
21.8
.....
.....
21.9
Julie A. Rosen
John Jasinski
21.10
.....
21.11
Bobby Joe Champion