The House of Representatives convened at 9:00 a.m. and was called to order by Phil Carruthers, Speaker of the House.
Prayer was offered by the Reverend Ronald A. Smith, House Chaplain.
The members of the House gave the pledge of allegiance to the flag of the United States of America.
The roll was called and the following members were present:
Abrams | Evans | Kahn | Marko | Pelowski | Swenson, H. |
Anderson, I. | Farrell | Kalis | McCollum | Peterson | Sykora |
Bakk | Finseth | Kelso | McElroy | Pugh | Tingelstad |
Bettermann | Folliard | Kielkucki | McGuire | Rest | Tomassoni |
Biernat | Garcia | Knight | Milbert | Reuter | Tompkins |
Bishop | Goodno | Knoblach | Molnau | Rhodes | Trimble |
Boudreau | Greenfield | Koppendrayer | Mulder | Rifenberg | Tuma |
Bradley | Greiling | Koskinen | Mullery | Rostberg | Tunheim |
Broecker | Gunther | Kraus | Munger | Rukavina | Van Dellen |
Carlson | Haas | Krinkie | Murphy | Schumacher | Wagenius |
Chaudhary | Harder | Kubly | Ness | Seagren | Weaver |
Clark | Hasskamp | Kuisle | Nornes | Seifert | Wejcman |
Commers | Hausman | Larsen | Olson, E. | Sekhon | Wenzel |
Daggett | Hilty | Leighton | Olson, M. | Skare | Westfall |
Davids | Holsten | Lieder | Opatz | Skoglund | Westrom |
Dawkins | Huntley | Lindner | Orfield | Slawik | Winter |
Dehler | Jaros | Long | Osskopp | Smith | Wolf |
Delmont | Jefferson | Luther | Osthoff | Solberg | Workman |
Dempsey | Jennings | Macklin | Ozment | Stanek | Spk. Carruthers |
Dorn | Johnson, A. | Mahon | Paulsen | Stang | |
Entenza | Johnson, R. | Mares | Pawlenty | Sviggum | |
Erhardt | Juhnke | Mariani | Paymar | Swenson, D. | |
A quorum was present.
Kinkel and Vickerman were excused.
The Chief Clerk proceeded to read the Journal of the preceding day. Luther moved that
further reading of the Journal be suspended and that the Journal be approved as corrected by the Chief Clerk.
The motion prevailed.
Winter moved that the House recess subject to the call of the Chair. The motion
prevailed.
RECONVENED
The House reconvened and was called to order by the Speaker.
Winter from the Committee on Rules and Legislative Administration to which was referred:
H. F. No. 2, A bill for an act relating to capital improvements; providing for a process to construct,
fund, maintain, and govern a major league baseball park; providing for powers and duties of the metropolitan sports facilities
commission; authorizing certain taxes, revenue distributions, bonds and other debt obligations, and allocations; proposing
an amendment to the Minnesota Constitution, article XI, section 14 extending until the year 2011 the period during which
at least 40 percent of the net proceeds from the state lottery must be credited to the environment and natural resources trust
fund; appropriating money for the baseball park, a professional hockey arena in the city of St. Paul, and the Minneapolis
convention center; amending Minnesota Statutes 1996, sections 297A.135, subdivisions 2, 3, 4, and by adding a subdivision;
349A.10, subdivision 5, and by adding subdivisions; 473.551, subdivision 8, and by adding subdivisions; 473.552; 473.553,
subdivision 1; 473.556, subdivisions 3, 4, 5, and by adding subdivisions; and 473F.08, subdivision 5, and by adding a
subdivision; Laws 1986, chapter 396, section 2, subdivision 1, as amended; proposing coding for new law in Minnesota
Statutes, chapter 473; proposing coding for new law as Minnesota Statutes, chapters 473I; and 473J; repealing Laws 1986,
chapter 396, section 2, subdivision 2.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
Section 1. Minnesota Statutes 1996, section 473.551, subdivision 8, is amended to read:
Subd. 8. [SPORTS FACILITY OR SPORTS FACILITIES.] "Sports facility" or "sports facilities"
means real or personal property comprising a stadium, stadiums, baseball parks, or arenas suitable for university
or major league professional baseball, for university or major league professional football and soccer, or for both, or for
university or major league hockey or basketball, or for both, together with adjacent parking facilities, including
Sec. 2. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:
Subd. 18. [BASEBALL PARK.] "Baseball park" means a park owned by the
commission and designed for playing major league professional baseball, as specified in section 473.5991.
Sec. 3. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:
Subd. 19. [BASEBALL PARK REVENUE.] "Baseball park revenue" means all revenue
received by or payable to the commission arising from its ownership and operation of the baseball park including, but not
limited to, revenues from admission taxes or other special taxes, bond proceeds, fees, lottery proceeds, loans, and gifts.
Sec. 4. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:
Subd. 20. [BASEBALL TEAM.] "Baseball team" means a major league professional
baseball team.
Sec. 5. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:
Subd. 21. [CITY.] "City" when referring to anything involving the baseball park means
the city in which the baseball park is located.
Sec. 6. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:
Subd. 22. [COUNTY.] "County" when referring to anything involving the baseball park
means the county in which the baseball park is located.
Sec. 7. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:
Subd. 23. [OWNER.] "Owner" means the individual or person who directly or indirectly
owns an interest in the baseball team, or an authorized successor or transferee. Owner does not mean the commission.
Sec. 8. Minnesota Statutes 1996, section 473.552, is amended to read:
473.552 [LEGISLATIVE POLICY; PURPOSE.]
The legislature finds that:
(4) the commission's
construction and operation of the baseball park by reasonable methods that the
legislature and the commission may devise to secure the long-term commitment of
the baseball team, including, but not limited to, public or community ownership
of the baseball team, the assignment of the operation of the baseball park to a
private entity, all of which may further secure and promote these public
purposes, will likewise meet the foregoing needs and promote these
interests.
It is therefore necessary for the public health, safety
and general welfare to establish a procedure for the acquisition and betterment
of sports facilities and to create a metropolitan sports facilities commission.
Sec. 9. Minnesota Statutes 1996, section 473.553,
subdivision 1, is amended to read:
Subdivision 1. [GENERAL.] The metropolitan sports
facilities commission is established Sec. 10. Minnesota Statutes 1996, section 473.556,
subdivision 3, is amended to read:
Subd. 3. [ACQUISITION OF PROPERTY.] The commission may
acquire by lease, purchase, gift, or devise all necessary right, title, and
interest in and to real or personal property deemed necessary to the purposes
contemplated by sections 473.551 to 473.599 within the limits of the
metropolitan area. The city or county may exercise the
right of eminent domain under chapter 117 to acquire a site for the baseball
park and, from time to time such other property, real, personal and intangible,
as are essential and integral to the successful operation of a sports
facility.
Sec. 11. Minnesota Statutes 1996, section 473.556,
subdivision 4, is amended to read:
Subd. 4. [EXEMPTION OF PROPERTY.] (a) Except as provided in paragraph (b), any real or
personal property acquired, owned, leased, controlled, used, or occupied by the
commission for any of the purposes of sections 473.551 to 473.599 is declared to
be acquired, owned, leased, controlled, used and occupied for public,
governmental, and municipal purposes, and shall be exempt from ad valorem
taxation by the state or any political subdivision of the state, provided that
such properties shall be subject to special assessments levied by a political
subdivision for a local improvement in amounts proportionate to and not
exceeding the special benefit received by the properties from the improvement.
No possible use of any such properties in any manner different from their use
under sections 473.551 to 473.599 at the time shall be considered in determining
the special benefit received by the properties. All assessments shall be subject
to final confirmation by the council, whose determination of the benefits shall
be conclusive upon the political subdivision levying the assessment.
Notwithstanding the provisions of section 272.01, subdivision 2, or 273.19, real
or personal property leased by the commission to another person for uses related
to the purposes of sections 473.551 to 473.599, including the operation of the
metrodome, baseball park, met center, and, if
acquired by the commission, the basketball and hockey arena shall be exempt from
taxation regardless of the length of the lease. The provisions of this
subdivision, insofar as they require exemption or special treatment, shall not
apply to any real property comprising the met center which is leased by the
commission for residential, business, or commercial development or other
purposes different from those contemplated in sections 473.551 to 473.599.
(b) The exemption from ad
valorem taxation does not apply to restaurants, lodging, or other facilities
primarily engaged in making retail sales to the public without regard to whether
there is an event at the facility.
Sec. 12. Minnesota Statutes 1996, section 473.556,
subdivision 5, is amended to read:
Subd. 5. [FACILITY OPERATION.] The commission may equip,
improve, operate, manage, maintain, and control the metrodome, baseball park, met center, basketball and hockey arena
and sports facilities constructed, remodeled, or acquired under the provisions
of sections 473.551 to 473.599.
Sec. 13. Minnesota Statutes 1996, section 473.556, is
amended by adding a subdivision to read:
Subd. 18. [PRIVATE
CONTRIBUTIONS.] Notwithstanding the requirements of
subdivision 9, the commission may accept grants, gifts, or loans from public or
private sources to further its public purposes with respect to the baseball
park. The contributions may be used by the commission for any purpose related to
the baseball park under sections 473.5991 to 473.5995, including, but not
limited to, payment of revenue bonds or revenue anticipation certificates issued
under section 473.5993, or reducing or eliminating any ownership, operations, or
other obligations or liabilities of the commission under sections 473.5991 to
473.5995.
Sec. 14. Minnesota Statutes 1996, section 473.556, is
amended by adding a subdivision to read:
Subd. 19. [BASEBALL PARK
REVENUE.] The commission may spend baseball park revenue
to pay any reasonable expenses necessary to administer, operate, improve, or
maintain the baseball park or to pay debt service on bonds or other obligations
sold for purposes of the baseball park. Baseball park revenue must be segregated
from other revenue of the commission.
Sec. 15. [473.5991] [BASEBALL PARK.]
Subdivision 1. [ESSENTIAL
CHARACTERISTICS.] The baseball park must be designed for
playing major league baseball and no other major league spectator sport that
uses a surface or seating configuration different from major league baseball.
The baseball park shall be designed to have a retractable roof, but no roof
shall be constructed unless funding becomes available from the lottery or from
some private source. The baseball park may include parking or other transit
facilities for patrons, performers, and employees and may include other
amenities to enhance or make the use of the baseball park convenient and
predictably accessible to all.
Subd. 2. [DESIGN.] The commission shall determine the program elements of the
baseball park, including, but not limited to, capacity, suites, club seats,
clubs, and amenities. The commission shall also determine the baseball park
design, and the selection of the project construction team, including the
architect and general contractor.
Subd. 3. [SITE.] The commission shall design a process to select a site
within the metropolitan area and request site proposals from any municipality.
The process to select a site must include a procedure to set minimum
specifications for the site, including the necessary or desirable appropriate
economic development possibilities on adjacent properties. The process must
consider the capture and use of incremental revenue paid to or enjoyed by public
entities, as a result of or in anticipation of the baseball park, as revenue
sources for funding the baseball park. The commission may not select a site that
is located in a city that has not adopted an ordinance conditionally imposing
taxes or fees under section 473I.03, subdivision 2, "consistent with the city's
charter" and the commission has determined that the taxes and fees will raise
not less than $3,000,000 per year beginning in fiscal year 2002.
Subd. 4. [RELATED
INFRASTRUCTURE.] The commission shall negotiate with the
appropriate government entities, including the city and county within which the
baseball park is located, and the metropolitan council for necessary or
appropriate infrastructure improvements to support the existence and operation
of the baseball park, the movement of patrons to and from the baseball park, and
their comfort, safety, and convenience while in and around the baseball
park.
Subd. 5. [CONSTRUCTION
METHODS.] The commission may contract for construction
materials, supplies, and equipment in accordance with section 471.345, except
that the commission may employ persons, firms, or corporations to perform one or
more or all of the functions of architect, engineer, construction manager, or
contractor for both design and construction, with respect to all or part of a
project to build or remodel sports facilities. Contractors shall be selected
through the process of public bidding, under section 471.345, except that the
commission may narrow the listing of eligible bidders to those the commission
determines to possess sufficient expertise to perform the intended functions and
the commission may negotiate with the three lowest responsible bidders to
achieve the best and final offer. The commission may require a construction
manager to certify a construction price and completion date to the commission.
The commission may require the posting of a bond in an amount determined by the
commission to cover any costs that may be incurred over and above the certified
price, including, but not limited to, costs incurred by the commission or loss
of revenues resulting from incomplete construction on the completion date and
any other obligations the commission may require the construction manager to
bear. The commission shall secure surety bonds as required in section 574.26
securing payment of just claims in connection with all public work undertaken by
it. Persons entitled to the protection of the bonds may enforce them as provided
in sections 574.28 to 574.32 and are not entitled to a lien on any property of
the commission under sections 514.01 to 514.16.
Subd. 6. [CONSTRUCTION
MATERIALS; SALES TAX EXEMPTION.] Purchases of materials
and supplies used or consumed in constructing or incorporated into the
construction of a baseball park defined in section 473.551, subdivision 18, are
exempt from the taxes imposed under chapter 297A and from any sales and use tax
imposed by a local unit of government notwithstanding any ordinance or charter
provision. This exemption applies regardless of whether the materials and
supplies are purchased by the owner of the baseball park or by a contractor or
subcontractor.
Sec. 16. [473.5992] [DETERMINATIONS BEFORE BONDS SOLD.]
Subdivision 1. [WHEN.] (a) The commission must do what it is required to do and
determine that others have done what they are required to do under this section
before it authorizes the sale of bonds under section 473.5993. The revenue bonds
of the commission may not be sold under section 473.5993 until the state board
of investment approves.
(b) If paragraph (a) is not
complied with by March 31, 1998, the commission or the owner may require
negotiations to cease. If the owner requires negotiations to cease under this
subdivision or subdivision 7, the owner shall pay all costs and expenses of all
deliberations of the commission incurred through the date when negotiations
cease.
Subd. 2. [30-YEAR USE
AGREEMENT.] (a) The commission must execute agreements
with the owner and the baseball team to use the baseball park for all scheduled
regular season and all postseason division, league, and world series
championship play-off home games for no less than 30 years, without an escape
clause for the owner. The commission and the owner may also negotiate new terms
and conditions for the current use agreement.
(b) The agreements shall afford
to the commission, or to another public entity as the commission deems
appropriate, the rights and remedies that are deemed necessary and appropriate
to provide reasonable assurances that the baseball team and the owner will
comply with the agreements throughout the 30-year term. The remedies must
include liquidated damages in the amount of $250,000,000 plus interest on the
bonds sold for this purpose, payable by the baseball team and the
owner jointly and severally to the commission in the
event the team relocates to another ballpark within the 30-year period, less
1/30 of that amount for each year the team has met its obligation to play in the
baseball park. The remedies may include specific performance and injunctive
relief and any other equitable remedies, and any additional remedies or
ownership, voting, or other security arrangements the commission reasonably
determines to be effective in ensuring the baseball team will play the required
games in the baseball park throughout the 30-year term. In the enforcement of
the agreements, the commission may elect from among the rights and remedies
provided for in this paragraph, and that election does not extinguish the
commission's other rights and remedies except as may otherwise be provided by
law. It is the intent of the legislature that a material breach of an agreement
between the commission and other public bodies and professional athletic teams
that commit to the long-term playing of major league games at public facilities
is deemed to cause irreparable harm for which no adequate remedy at law is
available and that the grant of equitable relief to remedy the breach is in the
public interest and shall be liberally so construed. (c) The agreements must confer
exclusive jurisdiction for judicial enforcement of the agreements on Minnesota
state courts and provide that disputes arising under the agreement be governed
by Minnesota law.
(d) The agreements shall provide
for the annual payment of rent by the baseball team for the use and enjoyment of
the baseball park, and for the allocation, between the commission and the
baseball team of all other revenues from whatever source attributable to the
baseball park.
Subd. 3. [COMMUNITY, CITIZEN
OWNERSHIP AGREEMENTS.] (a) The owner must execute a
binding agreement which provides within two years of the effective date of this
article for a transfer of ownership of the baseball team to the community either
through the sale of shares of stock or other interests in the baseball team to
citizens or through transfer of shares and other interests in the baseball team
by gift or otherwise to the commission or to another public or private nonprofit
entity or through both. The plan must provide for transfer of a majority share
of the shares of the team to community or citizen ownership other than the
current owner and members of the current owner's family. If ownership shares are
to be sold to citizens, the plan must provide that the publicly owned share will
be widely dispersed and not concentrated in a few individuals or entities. The
bylaws or other governing documents of the entity must provide that the team may
not move outside of the state without approval by 80 percent of the publicly
held ownership shares, including requiring approval by the public or private
nonprofit entity.
(b) The governor after
consulting with the legislators designated in paragraph (c) shall negotiate the
agreement with the owner.
(c) Eight legislators shall be
appointed to consult with the governor under paragraph (b): four members of the
house of representatives appointed by the speaker, two from each caucus, and
four members of the senate appointed by the subcommittee on committees of the
committee on rules and administration, two from each caucus.
Subd. 4. [OWNER'S ABILITY TO
COMPLY.] The baseball team and the owner must provide
information sufficient to satisfy the commission of the baseball team's and the
owner's ability to comply with the terms of the 30-year agreements.
Subd. 5. [OWNER'S INITIAL
INVESTMENT.] The commission must enter into an agreement
with the owner that provides that the owner will make an initial investment in
the construction of the baseball park by paying the commission not less than
$75,000,000 to be paid on a date satisfactory to the commission. The initial
investment shall not be secured by any property or revenues of the
commission.
Subd. 6. [PRIVATE SECTOR
SUPPORT.] (a) Private sector support for construction of
the baseball park must be demonstrated by the following:
(1) at least 80 percent of the
private suites provided for in the proposal for the baseball park have been sold
or leased for at least ten years;
(2) at least 80 percent of the
club seats provided for in the proposal for the baseball park are sold or leased
for the opening season;
(3) at least $25,000,000 in
qualified pledges to purchase permanent seat licenses are made; and
(4) pledges to purchase 22,000
season tickets for the opening season are made.
(b) If the conditions in this
subdivision are not met by March 31, 1998, either the owner or the commission
may require negotiations for the baseball park to cease.
Subd. 7. [PRIVATE SECTOR
CAPITAL PLAN.] The owner must develop a private sector
capital plan approved by the commission that includes the sale or lease of some
or all promotional rights in the baseball park.
Subd. 8. [MAJOR LEAGUE
BASEBALL CONTRIBUTION.] The commission and the owner
must enter into an agreement that provides that the owner will use its best
efforts to obtain construction money for the baseball park from major league
baseball.
Subd. 9. [COMMISSION TITLE
TO PROPERTY.] The commission must acquire or contract to
acquire title to all real property including all easements and other
appurtenances needed for the construction and operation of the baseball park and
must receive a grant of money or enter into agreements sufficient to ensure the
receipt of money, at the time and in the amount required, to make any payment
upon which the commission's acquisition of title and possession of the real
property is conditioned.
Subd. 10. [SUFFICIENT MONEY
FOR CLEARING PROPERTY.] The commission must receive a
grant of money or enter into agreements sufficient in the judgment of the
commission to ensure the receipt of money, at the time and in the amount
required, to pay all costs of clearing the real property needed for the
construction and operation of the baseball park of all improvements thereon
which would interfere with the construction or operation of the baseball
park.
Subd. 11. [GUARANTEED
MAXIMUM PRICE.] The commission must execute agreements
that provide for the construction of the baseball park for a guaranteed maximum
price and substantial completion date of April 1, 2001, and that requires
performance bonds in an amount at least equal to 100 percent of the guaranteed
maximum price to cover any costs incurred over and above the guaranteed maximum
price, including, but not limited to, costs incurred by the commission or loss
of revenues resulting from incomplete construction on the substantial completion
date.
Subd. 12. [NO STRIKES OR
LOCKOUTS.] The commission must execute agreements with
appropriate labor organizations and construction contractors that provide that
no labor strikes or management lockouts will delay construction.
Subd. 13. [BASEBALL TEAM TO
OPERATE BASEBALL PARK.] (a) The commission must execute
agreements with the owner and the baseball team that provide for operation and
maintenance of the baseball park at the expense of the owner and the team.
(b) The agreements may provide
that:
(1) the baseball team will
manage, maintain, operate, and repair the baseball park and may contract with
one or more entities to operate part or all of the baseball park all subject to
the approval of the commission; and
(2) the baseball team shall
contract with one or more concessionaires to provide food and beverages for the
baseball park subject to the approval of the commission.
(c) The agreements must provide
criteria for maintenance and operation of the baseball park and remedies as
referred to in subdivision 2, paragraphs (b) and (c), that may be exercised by
the commission to ensure that the criteria are met. The agreements must also
require that the baseball team and its affiliates and subsidiaries that are
involved in the maintenance and operation provide annually audited financial
statements to the commission.
Subd. 14. [COMMISSION
PARTICIPATION IN BASEBALL TEAM CONTRACTS.] The
commission and the owner must execute an agreement that provides that the
commission may participate in the negotiations of any operations, concessions,
rights, advertising, or any other contracts or agreements pertinent to the
operation and maintenance of the baseball park between the owner and any other
third party.
Subd. 15. [CAPITAL REPAIRS
AND IMPROVEMENTS.] The commission must establish a
baseball park capital repair and improvement account and enter into an agreement
with the owner and the baseball team that provides that the owner and the
baseball team must pay at least $700,000 a year into the account to be used by
the commission to make any capital repairs, improvements, enhancements, and
betterments necessary to maintain the baseball park. The commission is not
obligated to spend money for these purposes in excess of the balance in the
capital repair and improvement account.
Subd. 16. [UNIVERSITY OF
MINNESOTA.] The commission must consult with and
consider the needs of the University of Minnesota for baseball facilities for
the next 20 years.
Subd. 17. [REVENUES TO BE
SUFFICIENT.] The anticipated baseball park revenue must
be sufficient to pay when due all debt service on the revenue bonds and all
administrative expenses of the commission. The anticipated revenue to the
baseball team must be sufficient to pay all operating and maintenance expenses
of the baseball park.
Subd. 18. [LEAGUE, MAJOR
LEAGUE BASEBALL GUARANTY.] The commission must execute
an agreement with the major league of which the baseball team is a member and
with major league baseball that guarantees the continuance of the franchise in
the metropolitan area for the period of the agreement referred to in subdivision
2.
Subd. 19. [AFFORDABLE
TICKETS.] The commission must obtain a guarantee from
the owner that at least ten percent of the tickets in the baseball park sold for
major league professional baseball games will be available at prices that do not
exceed 25 percent of the highest priced seats in the baseball park or $5 per
ticket, whichever is lower. Premium seating, such as seats requiring personal
seat licenses, luxury boxes, and similar seating, must be excluded in
determining the highest priced seats in the baseball park. The maximum price of
affordable tickets may be adjusted periodically for inflation. Not less than 20
percent of the tickets subject to the guarantee under this subdivision may only
be made available for sale on the day of the game unless the game is a
postseason division, league, or world series championship game.
Sec. 17. [INTERSTATE COMPETITION.]
The commission may cooperate and
contract with other political entities in the United States, to petition or form
an entity to petition the United States Congress to enact legislation to prevent
injurious or uneconomic practices of governmental entities in seeking sports,
exposition, and entertainment franchises and facilities. The attorney general
may participate in appropriate litigation to prevent the injurious or uneconomic
practices.
Sec. 18. [473.5993] [DEBT OBLIGATIONS FOR BASEBALL
PARK.]
Subdivision 1. [PURPOSES.]
The commission may by resolution authorize the sale and
issuance of its revenue bonds for the following purposes after complying with or
determining that section 473.5992, paragraph (a), has been or will be complied
with in material respects:
(1) to acquire and better
facilities for a baseball park, including, but not limited to, site assembly,
preparation, and construction;
(2) to reimburse the commission
for its costs in complying with and making the determinations required by
section 473.5992, whenever incurred;
(3) to pay issuance costs and
costs of bond insurance or other credit enhancement for the bonds and to
establish necessary reserves for operating and debt service costs;
(4) to refund bonds issued under
this section; and
(5) to fund judgments entered by
any court against the commission in matters relating to the commission's
functions related to the baseball park.
Subd. 2. [AMOUNT.] The principal amount of the bonds issued under subdivision
1, clause (1), exclusive of any original issue discount, must not exceed
$175,000,000.
Subd. 3. [TAXABILITY.] The bonds may be issued as tax-exempt revenue bonds or as
taxable revenue bonds in the proportions that the commission may determine.
Subd. 4. [PROCEDURE.] The bonds shall be sold, issued, and secured in the manner
provided in chapter 475 for bonds payable solely from revenues and the
commission has the same powers and duties as a municipality and its governing
body in issuing bonds under that chapter. The bonds may be sold at any price and
at public or private sale as determined by the commission. An election is not
required.
Subd. 5. [NOT A GENERAL OR
MORAL OBLIGATION.] The bonds are payable solely from
baseball park revenues. The bonds are not a general or moral obligation or debt
of the commission, any other political subdivision of the state, or the state,
and must not be included in the net debt of any city, county, or other
subdivision of the state for the purpose of any net debt limitation. The state
does not assume any obligation or liability for bonds sold or issued under this
section.
Subd. 6. [BROKERAGE FIRM
AGREEMENT.] Before issuing debt under this section, the
commission must enter into an agreement with the brokerage firm to be used in
connection with the sale and issuance of the bonds or revenue anticipation
certificates under this section, guaranteeing that fees and charges payable to
the brokerage firm under the agreement, including any underwriting discounts, do
not exceed fees and charges customarily payable in connection with the sale and
issuance of bonds or revenue anticipation certificates.
Subd. 7. [SECURITY.] Baseball park revenues must be and remain pledged and
appropriated, for the benefit of and enforceable by the bondholders or their
trustee, for the payment of all necessary and reasonable expenses of the
operation, administration, maintenance, and debt service of the baseball park
until all bonds and certificates issued under this section are fully paid or
discharged in accordance with law. Bonds issued under this section may be
secured by a bond resolution, or by a trust indenture entered into by the
commission with a corporate trustee within or outside the state, which must
define the baseball park revenues pledged for the payment and security of the
bonds. The pledge is a valid charge on the baseball park revenues from the date
when bonds are first issued or secured under the resolution or indenture and
secure the payment of principal and interest and redemption premiums when due
and the maintenance at all times of a reserve securing the payments. No mortgage
of or security interest in any tangible real or personal property is granted to
the bondholders or the trustee, but they have a valid security interest in all
baseball park revenues of the commission as against the claims of all other
persons in tort, contract, or otherwise, irrespective of whether the parties
have notice of the claims, and without possession or filing as provided in the
uniform commercial code or any other law. In the bond resolution or trust
indenture the commission may make any covenants that are determined by the
commission to be usual and reasonably necessary for the protection of the
bondholders. No pledge, mortgage, covenant, or agreement securing bonds may be
impaired, revoked, or amended by law or by action of the commission except in
accordance with the terms of the resolution or indenture under which the bonds
are issued, until the obligations of the commission under the resolution or
indenture are fully discharged.
Subd. 8. [REVENUE
ANTICIPATION CERTIFICATES.] In any year, upon final
adoption by the commission of an annual budget of the commission, including the
baseball park revenues, and in anticipation of the baseball park revenues, but
subject to any limitation or prohibition in a bond resolution or indenture, the
commission may authorize the issuance, negotiation, and sale, in the form and
manner and upon the terms it may determine, of revenue anticipation
certificates. The principal amount of the certificates outstanding may at no
time exceed 25 percent of the total amount of the revenues anticipated. The
certificates must mature not later than three months after the close of the
budget year. So much of the anticipated baseball park revenues as may be needed
for the payment of the certificates and interest thereon shall be paid into a
special debt service fund established for the certificates in the commission's
financial records. If for any reason the anticipated revenues are insufficient,
the certificates and interest must be paid from the first revenues received,
subject to any limitation or prohibition in a bond resolution or indenture. The
proceeds of the certificates may be used for any purpose for which the
anticipated revenues may be used or for any purpose for which bond proceeds
under subdivision 1 may be used.
Subd. 9. [VALIDITY OF DEBT
ISSUED.] The validity of any bonds issued under this
section and the obligations of the commission related to them must not be
conditioned upon or impaired by the commission's determinations made under
section 473.5992. For the purposes of issuing bonds, the determinations made by
the commission are conclusive, and the commission is obligated for the security
and payment of the bonds, but only from the sources pledged thereto,
irrespective of determinations that may be erroneous, inaccurate, or otherwise
mistaken.
Sec. 19. [473.5994] [PROFIT SHARING.]
Subdivision 1.
[DEFINITIONS.] (a) [APPLICATION.] The definitions in this subdivision apply to this
section.
(b) [GROSS REVENUES OF THE
BASEBALL TEAM.] "Gross revenues of the baseball team"
means all revenues of the baseball team from whatever source, including, but not
limited to, any revenues as may be negotiated with the commission from baseball
park rights, concessions, signage, and revenues from ticket sales, and other
revenues including major league profit sharing, royalties, television, radio,
and any other receipts or revenues, ordinary or extraordinary, not otherwise
provided for in sections 473.5991 to 473.5995.
(c) [NET OPERATING PROFITS.]
"Net operating profits" means the gross revenues of the
baseball team remaining after its payment of or deduction for its baseball team
operating expenses, its baseball park operating expenses, and its funding of the
baseball park capital repair and improvement account. Net operating profits must
be computed in accordance with generally accepted accounting principles.
Subd. 2. [BASEBALL TEAM
OPERATING EXPENSES; LOSS.] The owner shall assume all
risk for and timely pay all operating expenses of the baseball team and the
baseball park as provided in this act and in agreements authorized by this act.
The baseball team shall be organized so that under Minnesota law, the commission
is not liable for any operating loss, liability, or obligation of the baseball
team, or baseball park. The commission shall have no duty to reimburse the owner
or any creditor of the owner, the baseball team, or the baseball park for any
operating loss, liability, or obligation of the baseball team or baseball park,
and shall be indemnified by the owner against losses or claims.
Sec. 20. [473.5995] [PROFITS UPON SALE OF BASEBALL
TEAM.]
(a) The commission and the owner
shall enter into an agreement that provides for the sharing of profits upon the
sale of the baseball team.
(b) If:
(1) the baseball team is sold,
transferred, or assigned sooner than 15 years after the first regular season
game played in the baseball park; and
(2) the value of the baseball
team has appreciated above $125,000,000 or the sale price exceeds that
amount,
then the commission shall
receive a payment reflecting its share that is stated in the agreement upon the
closing of such sale, transfer, or assignment.
Sec. 21. [INSTRUCTION TO REVISOR.]
In the next edition of Minnesota
Statutes, the revisor of statutes shall change references to Minnesota Statutes,
sections 473.551 to 473.599 to read "473.551 to 473.5995."
Sec. 22. [APPLICATION.]
This article applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
Sec. 23. [EFFECTIVE DATE.]
This article is effective the
day following final enactment.
Section 1. Minnesota Statutes 1996, section 297A.135, is
amended by adding a subdivision to read:
Subd. 1a. [METROPOLITAN AREA
SURTAX.] In addition to the tax imposed under
subdivision 1, the metropolitan sports facilities commission may impose a surtax
of $1 a day on each rental or lease transaction subject to the tax under
subdivision 1 that occurs within the metropolitan area
defined in section 473.121, subdivision 2. The tax under this subdivision does
not apply if the rental or lease transaction is entered into as part of or in
connection with the provision by the lessor of motor vehicle repair
services. Sec. 2. Minnesota Statutes 1996, section 297A.135,
subdivision 2, is amended to read:
Subd. 2. [SALES AND USE TAX.] The Sec. 3. Minnesota Statutes 1996, section 297A.135,
subdivision 3, is amended to read:
Subd. 3. [ADMINISTRATION.] The Sec. 4. Minnesota Statutes 1996, section 297A.135,
subdivision 4, is amended to read:
Subd. 4. [EXEMPTION.] The Sec. 5. Minnesota Statutes 1996, section 297A.25, is
amended by adding a subdivision to read:
Subd. 73. [BASEBALL PARK
SALES.] The gross receipts from sales that are subject
to taxation under section 473I.06 are exempt.
Sec. 6. Minnesota Statutes 1996, section 349A.10, is
amended by adding a subdivision to read:
Subd. 5b. [SPECIAL LOTTERY
GAME.] (a) The lottery shall conduct an instant lottery
game each year with a baseball theme.
(b) The net revenues from the
game conducted under this subdivision, after the deduction of the net revenue to
be paid to the Minnesota environment and natural resources trust fund, must be
credited to the baseball park account created in section 473I.02.
(c) Net revenues for purposes of
this subdivision equal the net revenues from the special lottery game, less any
reduction in the net revenues from other lottery games that result from the
availability of the special games, as estimated by the commissioner of
finance.
Sec. 7. [473I.01] [DEFINITIONS.]
Subdivision 1.
[APPLICATION.] The definitions in sections 473.121,
473.551, and this section apply to this chapter.
Subd. 2. [BASEBALL PARK.] "Baseball park" means the baseball park described in
section 473.5991.
Sec. 8. [473I.02] [BASEBALL PARK ACCOUNT.]
The baseball park account is
established in the special revenue fund in the state treasury. All money
credited to the baseball park account is appropriated to the commissioner of
revenue for payment to the commission for purposes of the baseball park. The
commission shall use all receipts from the baseball park account to administer,
operate, and maintain the baseball park and to pay debt service on bonds or
other obligations sold for purposes of the baseball park.
Sec. 9. [473I.03] [BASEBALL PARK DISTRICT; TAXES AND
FEES.]
Subdivision 1. [LEGISLATIVE
FINDINGS.] The legislature finds that the construction
of the baseball park is a public improvement that has regional and statewide
economic benefits. In addition, the baseball park will specifically benefit the
class of persons operating retail and service businesses within the surrounding
area. The legislature finds that the designation by the commission, in mutual
agreement with the city, of the area surrounding the baseball park as a baseball
park district and the imposition of taxes or fees within the district will more
equitably apportion the burdens of funding the baseball park among the classes
of persons benefiting from the baseball park.
Subd. 2. [SPECIAL TAXES.] Notwithstanding section 477A.016, but subject to any
charter of the city, under an agreement with the commission, the city may by
ordinance impose liquor and entertainment taxes or fees within the area within
which retail and service businesses receive special economic benefits from the
operation of the baseball park, and that is designated by the commission, in
mutual agreement with the city, and after consultation with the affected
hospitality industry, as a baseball park district. The district may not be
greater than an area the commission specifically finds by resolution receives
special economic benefits from the baseball park. The ordinance must provide for
dedication of the taxes or fees, after payment of collection and administrative
expenses and refunds, to payment of principal and interest on bonds issued under
section 473.5993 and for the transfer of the taxes collected to the commission
for those purposes.
Sec. 10. [473I.04] [STADIUM INCOME SURTAX.]
Subdivision 1. [TAX
IMPOSED.] The commission may by resolution impose a tax
on the taxable baseball park income of a qualified employee of a sports
organization that uses the baseball park. The tax equals two percent of taxable
baseball park income for the taxable year.
Subd. 2. [DEFINITIONS.] (a) The definitions in chapter 290 and in this subdivision
apply to this section.
(b) "Taxable baseball park
income" means wages, salaries, or other compensation derived from the
performance of personal services for a sports organization. For both residents
and nonresidents, the amount attributable to performance of personal services
for a sports organization is determined by first subtracting $150,000 from total
compensation for the performance of personal service and then applying the
allocation rules under section 290.17, subdivision 2, paragraph (a), clauses (1)
and (2). The amount may not be less than zero.
(c) A "qualified employee" means
an employee who derives wages, salaries, or other compensation of at least
$150,000 for the performance of personal services from a sports organization for
the taxable year.
(d) A "sports organization"
means any organization that operates a major league baseball franchise. A sports
organization includes a visiting team regardless of whether it has a direct
agreement with the owner or operator of the baseball park.
Subd. 3. [COLLECTION;
DEPOSIT.] The tax imposed by this section must be
collected in the manner provided for individual income taxes imposed under
chapter 290 and in accordance with an agreement between the commission and the
commissioner of revenue. The revenue from the tax must be deposited in the
baseball stadium account in the special revenue fund.
Sec. 11. [473I.05] [ADMISSION TAX; TICKET SURCHARGE.]
The commission may by resolution
impose and maintain an admission tax or ticket surcharge, or both, upon the
granting, issuance, sale, or distribution, by any private or public person,
association, or corporation, of the privilege of admission to activities at the
baseball park. No other tax, surcharge, or governmental imposition, except the
taxes imposed by chapter 297A or under section 473I.06, may be levied by any
other unit of government upon that sale or distribution. If the commission
imposes a ticket surcharge, it must be at least $1 per ticket for the seats
affected. The commission and the owner may by mutual agreement exempt sections
of the baseball park from the ticket surcharge. The admission tax or ticket
surcharge must be stated and charged separately from the sales price so far as
practicable and must be collected by the grantor, issuer, seller, or distributor
from the person admitted and is a debt from that person to the grantor, issuer,
seller, or distributor, and the tax required to be collected is a debt owed by
the grantor, issuer, seller, or distributor to the commission. The debt is
recoverable at law in the same manner as other debts. Every person who grants,
issues, sells, or
distributes tickets for the admissions may be required,
as provided in resolutions of the commission to secure a permit, to file
returns, to deposit security for the payment of the tax, and to pay penalties
for nonpayment and interest on late payments, that are considered necessary or
expedient to ensure the prompt and uniform collection of the tax. Receipts from
the admission tax must be used for purposes of the baseball park. Sec. 12. [473I.06] [SPORTS FACILITIES SALES TAX.]
Subdivision 1.
[DEFINITIONS.] (a) The definitions in chapter 297A and
in this subdivision apply to this section.
(b) "Sports facilities sale"
means any transaction, including a transfer of tangible personal property or
provision of taxable services, that occurs on the premises of the baseball park
and that would be taxable under chapter 297A but for the exemption under section
297A.25, subdivision 73.
Subd. 2. [TAX IMPOSED.] The commission may by resolution impose a tax on sports
facilities sales at the rate of seven percent.
Subd. 3. [COLLECTION;
DEPOSIT.] The tax imposed by this section must be
collected in the manner provided for taxes imposed under chapter 297A and in
accordance with an agreement between the commission and the commissioner of
revenue. All revenues, including interest and penalties, derived from the tax
imposed on sports facilities sales must be deposited in the state treasury and
credited to the baseball park account in the special revenue fund.
Subd. 4. [TRANSFER TO
GENERAL FUND.] (a) The commissioner of revenue shall
annually estimate the amount of the tax imposed under this section that would
have been collected under chapter 297A, if the baseball park had not been
financed and constructed and if the exemption under section 297A.25, subdivision
73, did not apply.
(b) Each fiscal year that the
tax applies under this section, the commissioner of finance shall transfer the
amount estimated by the commissioner of revenue under paragraph (a) from the
baseball park account in the special revenue fund to the general fund.
Sec. 13. [473I.07] [SPORTS MEMORABILIA TAX.]
Subdivision 1.
[DEFINITIONS.] (a) The definitions in chapter 297A and
in this subdivision apply to this section.
(b)(1) "Sports memorabilia" or
"sports licensed goods" means items available for sale to the public that relate
to professional sports, such as:
(i) one-of-a-kind items related
to professional sports figures, teams, or events;
(ii) professional sports trading
cards;
(iii) professional sports
photographs;
(iv) league and individual
athlete licensed items;
(v) professional sporting event
licensed items; and
(vi) similar items.
(2) It does not include items
licensed by:
(i) a sports regulating
authority for the purpose of proving the item meets the standards of the
sport;
(ii) an elementary, high school,
college, or university or an association, league, or other organization operated
by, organized by, comprised of those entities, or regulating collegiate or high
school baseball.
(3) It does not include clothing
and wearing apparel, exempt under section 297A.25, subdivision 8.
Subd. 2. [AUTHORITY TO
IMPOSE.] The commission may by resolution impose a tax
at a rate of up to four percent of the gross receipts from the sales at retail
of sports memorabilia in the metropolitan area or their use, if the sale was not
subject to the tax.
Subd. 3. [COLLECTION;
DEPOSIT.] A tax imposed under this section must be
collected in the manner provided for taxes under chapter 297A and in accordance
with an agreement between the commission and the commissioner of revenue. All
revenues, including interest and penalties, derived from the tax must be
deposited in the state treasury and credited to the baseball park account in the
special revenue fund.
Sec. 14. [473I.08] [BACKUP TAX AUTHORITY.]
Subdivision 1. [AUTHORITY
AND ORDER OF TAXES.] (a) The commission may impose the
car rental tax under section 297A.135, subdivision 1a, excluding courtesy rental
cars, and the lodging tax under section 473I.09, only if all the other sources
of revenues pledged to pay the bonds issued under section 473.5993 to finance
the baseball park are insufficient as provided by subdivision 2. Imposition of
the taxes under sections 297A.135, subdivision 1a, and 473I.09 is subject to the
requirement of this section.
(b) The commissioner must first
impose the car rental tax under section 297A.135, subdivision 1a. If the
revenues from this tax are insufficient, then the commissioner may impose the
lodging tax under section 473I.09.
Subd. 2. [SUSPENSION;
REIMPOSITION.] Subject to the limitations on the rates
and the order of imposition of the backup taxes, the commission may provide for
the suspension, reimposition, reduction, or increase in tax collections upon its
determination that the actions are appropriate or necessary for the purposes for
which the tax is imposed, provided that the balance in the debt service fund or
funds, including any reserve for debt service, must be maintained at least at an
amount sufficient to pay the principal and interest on bonds that will become
due within the next succeeding one-year period and, except as otherwise provided
by the agreement, must not be maintained at an amount greater than that required
to pay principal and interest on bonds that will become due within the next
succeeding two-year period.
Subd. 3. [DEPOSIT AND USE OF
REVENUES.] The commissioner of revenue shall pay the net
revenues from taxes imposed under this section and sections 297A.135,
subdivision 1a, and 473I.09 to the commission. The commission shall place these
revenues into the debt service fund or reserve or special funds established
under section 473.5993 or the bond resolution or trust indenture. The revenues
may be used for payment of debt service on bonds and revenue anticipation
certificates issued under section 473.5993.
Sec. 15. [473I.09] [LODGING TAX.]
The commission may levy a tax on
the gross receipts from the furnishing for consideration of lodging for a period
of less than 30 days at a hotel, motel, rooming house, tourist court, or trailer
camp located within the metropolitan area. The tax may be imposed
notwithstanding the limitations of Laws 1986, chapter 396, section 5, clause
(2). The tax is a sales tax, supplemental to the general sales tax imposed in
chapter 297A. The tax or taxes may be imposed at whatever rate or rates, up to
three percent, that may be necessary to produce revenues that the commission
determines from year to year to be required, together with other revenue
available to the commission, to pay when due all debt service on bonds and
revenue anticipation certificates issued under section 473.5993. The tax must be
reported and paid to the commissioner of revenue with and as part of the state
sales and use taxes, and is subject to the same penalties, interest, and
enforcement provisions. The collections of the tax, less refunds and a
proportionate share of the costs of collection, are appropriated to the
commissioner of revenue, who must remit them at least quarterly to the
commission. The commissioner of revenue shall deduct from the proceeds remitted
to the commission an amount that equals the direct department costs necessary to
administer, audit, and collect this tax. The amount deducted must be credited to
the general fund of the state.
Sec. 16. [473I.10] [PARKING TAX.]
Subdivision 1. [TAX
IMPOSED.] The commission may by resolution impose a
parking tax of not less than $1 per vehicle per event at the baseball park. The
commission shall consult with the city about the definition of event parking and
the rate of the tax before imposing or adjusting the tax.
Subd. 2. [AREA OF
APPLICATION.] The tax applies to parking in the baseball
park district designated under section 473I.15 and in any additional area
providing event parking, as mutually agreed by the city and the commission,
except for parking at a parking meter.
Subd. 3. [COLLECTION.] The tax imposed under this section must be reported and
paid to the commissioner of revenue with the taxes imposed in chapter 297A and
in accordance with an agreement between the commission and the commissioner of
revenue. It is subject to the same interest, penalty, and other provisions
provided for sales and use taxes under chapters 289A and 297A. The commissioner
has the same powers to assess and collect the tax that are given the
commissioner in chapters 270, 289A, and 297A to assess and collect sales and use
tax.
Subd. 4. [DISPOSITION OF
PROCEEDS.] All revenues, including interest and
penalties, derived from the tax must be deposited in the state treasury. An
amount that equals the direct department costs necessary to administer, audit,
and collect this tax must be credited to the general fund. The balance must be
credited to the baseball park account in the special revenue fund.
Sec. 17. [APPLICATION.]
Sections 1 to 16 apply in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
Sec. 18. [EFFECTIVE DATE.]
This article is effective the
day following final enactment.
Section 1. [CONSTITUTIONAL AMENDMENT PROPOSED.]
An amendment is proposed to the
Minnesota Constitution, article XI. If the amendment is adopted, article XI will
be amended by adding a section to read:
Sec. 15. A Minnesota sports,
recreation, and arts fund is established in the state treasury. Money in the
fund must be spent, as provided by law, for facilities for professional sports
and community-based athletic, recreational, and arts facilities. Thirty percent
of the net proceeds from any state-operated lottery must be credited to the fund
until June 30, 2020.
Sec. 2. [SUBMISSION TO VOTERS.]
The amendment proposed in
section 1 shall be submitted to the people at the 1998 general election. The
question submitted shall be:
"Without reducing the 40 percent
for the Minnesota environment and natural resources trust fund, shall the
Minnesota Constitution be amended to require 30 percent of state lottery
revenues to be used to finance facilities for professional sports, community
sports, recreation, and arts until the year 2020?
Yes . . . . . . .
No . . . . . . . ."
Section 1. Minnesota Statutes 1996, section 473.553,
subdivision 2, is amended to read:
Subd. 2. [MEMBERSHIP.] The commission shall consist of
(a) Six voting members shall
be appointed by the city council of the city in which the (b) Six voting members from the
metropolitan area shall be appointed by the governor. The governor's appointees
shall reflect fairly the various interests throughout the metropolitan area that
are affected by the commission's ownership and operation of the metrodome and
baseball park.
(c) Four nonvoting members shall
be legislators, two state representatives and two state senators. One state
representative shall be appointed by the speaker of the house and one state
representative shall be appointed by the minority caucus leader. The two state
senators shall be appointed by the subcommittee on committees of the senate
committee on rules and administration.
Sec. 2. Minnesota Statutes 1996, section 473.553,
subdivision 3, is amended to read:
Subd. 3. [CHAIR.] The chair shall be appointed by the
governor as the Sec. 3. Minnesota Statutes 1996, section 473.553,
subdivision 4, is amended to read:
Subd. 4. [QUALIFICATIONS.] A voting member shall not during a term of office hold
the office of metropolitan council member or be a member of another metropolitan
agency or hold any judicial office or office of state government. None of the
members appointed by the city council of the city in which the Sec. 4. Minnesota Statutes 1996, section 473.553,
subdivision 5, is amended to read:
Subd. 5. [TERMS.] The terms of Sec. 5. [REPEALER.]
Minnesota Statutes 1996, section
473.553, subdivision 14, is repealed.
Sec. 6. [APPLICATION.]
This article applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
Sec. 7. [EFFECTIVE DATE.]
Sections 1 to 6 are effective
the day following final enactment."
Delete the title and insert:
"A bill for an act relating to public administration;
providing for a process to construct, fund, maintain, and govern a major league
baseball park; providing for powers, duties, and membership of the metropolitan
sports facilities commission; authorizing certain taxes, revenue distributions,
bonds and other debt obligations, and allocations; providing a process for
community ownership; proposing an amendment to the
Minnesota Constitution, article XI; appropriating money; amending Minnesota
Statutes 1996, sections 297A.135, subdivisions 2, 3, 4, and by adding a
subdivision; 297A.25, by adding a subdivision; 349A.10, by adding a subdivision;
473.551, subdivision 8, and by adding subdivisions; 473.552; 473.553,
subdivisions 1, 2, 3, 4, and 5; and 473.556, subdivisions 3, 4, 5, and by adding
subdivisions; proposing coding for new law in Minnesota Statutes, chapter 473;
proposing coding for new law as Minnesota Statutes, chapter 473I; repealing
Minnesota Statutes 1996, section 473.553, subdivision 14."
And without further recommendation.
The report was adopted.
Winter from the Committee on Rules and Legislative
Administration to which was referred:
H. F. No. 9, A resolution memorializing Congress to
support legislative initiatives to discourage use of public resources for
movement of professional sports franchises and to repeal antitrust exemptions
for professional sports.
Reported the same back with the following amendments:
Page 1, after line 21, insert:
"Whereas, a partnership with
the community would be beneficial to baseball;"
Page 2, after line 13, insert:
"Be It Further Resolved that
the Legislature urges that the Minnesota Twins raise revenue for a major league
baseball park from the sale of stock in the baseball enterprise to residents of
the state of Minnesota."
With the recommendation that when so amended the bill
pass.
The report was adopted.
H. F. No. 2 was read for the second time.
Pursuant to Article IV, Section 19, of the Constitution
of the state of Minnesota, Rest moved that the rule therein be suspended and an
urgency be declared so that H. F. No. 2 be given its third reading and be placed
upon its final passage. The motion prevailed.
Rest moved that the Rules of the House be so far
suspended that H. F. No. 2 be given its third reading and be placed upon its
final passage. The motion prevailed.
Abrams moved to amend H. F. No. 2, the first
engrossment, as follows:
Page 13, delete lines 33 to 36
Page 14, delete lines 1 and 2 and insert:
"Subd. 18. [MAJOR LEAGUE
GUARANTY.] The commission shall enter into an agreement
with major league baseball that contains, at least, terms that satisfy the
following requirements:
(1) The consideration for the
agreement is, among others, the commission's making available a publicly
financed facility in which major league baseball may play league games in the
metropolitan area and the operation of which provides an
expanded audience for broadcasts of major league
baseball games, increasing broadcasting, advertising, and other revenue for
major league baseball and its member franchises. (2) Major league baseball agrees
to and guarantees that a major league baseball franchise will operate in the
metropolitan area for a 30-year period beginning with the first day of operation
of the baseball stadium or park.
(3) The commission is entitled
to specific performance of the agreement and major league baseball agrees not to
contest the availability of specific performance. The parties recognize that
many of the benefits of the operation of a major league baseball franchise in a
state and metropolitan area are intangible and impossible to accurately quantify
in monetary terms. Major league baseball franchises provide a unique product and
community amenity. The state has provided public money to secure these benefits,
in addition to more tangible economic benefits. Therefore, money damages are
wholly inadequate to compensate the commission and the state for a breach of the
agreement by major league baseball.
(4) Jurisdiction and enforcement
of the agreement is exclusively in the courts of the state of Minnesota. Major
league baseball confesses to and agrees to this jurisdiction and further agrees
not to bring or seek to remove a case to enforce the agreement in federal court
or the court of another state."
A roll call was requested and properly seconded.
The question was taken on the Abrams amendment and the
roll was called. There were 124 yeas and 0 nays as follows:
Those who voted in the affirmative were:
on the
effective date of Laws 1994, chapter 648, the metrodome, the baseball park, the met center, and, upon
acquisition by the commission, the basketball and hockey arena. (a) (1) the population in the metropolitan area has a need for sports facilities and
that this need cannot be met adequately by the activities of individual municipalities, by agreements among municipalities,
or by the private efforts of the people in the metropolitan area,; (b) (2) the commission's ownership and operation of the metrodome and met center
has met in part the foregoing need and has promoted the economic and social interests of the metropolitan area, of the state,
and of the public, and; (c) (3) the commission's acquisition of the basketball and hockey arena on the terms
and conditions provided in sections 473.598 and 473.599 shall similarly and more fully meet the foregoing needs and
promote these interests; and
and as a local governmental unit and political subdivision of
the state that may exercise its powers to the extent specifically provided by
law. The commission shall be organized, structured, and administered as
provided in this section.
tax taxes imposed in subdivision 1 is under
subdivisions 1 and 1a are not included in the sales price for purposes of
determining the sales and use tax imposed in this chapter or any sales and use
tax imposed on the transaction under a special law.
tax taxes imposed in subdivision 1 under
subdivisions 1 and 1a must be reported and paid to the commissioner of
revenue with the taxes imposed in this chapter. It
is They are subject to the same interest,
penalty, and other provisions provided for sales and use taxes under chapter
289A and this chapter. The commissioner has the same powers to assess and
collect the tax taxes
that are given the commissioner in chapters 270 and 289A and this chapter to
assess and collect sales and use tax.
tax taxes imposed by this
section does do not
apply to a lease or rental if the vehicle is to be used by the lessee to provide
a licensed taxi service.
six 16 members, plus a chair appointed as provided in subdivision 3, 13 of
whom shall be voting members and four of whom shall be nonvoting members.
stadium metrodome is
located plus a chair appointed as provided in
subdivision 3. If the baseball park is located other
than in the city of Minneapolis, then three voting members shall be appointed by
the city council of the city of Minneapolis, and three voting members shall be
appointed by the city council of the city in which the baseball park is
located.
ninth 13th voting member and shall meet all of the
qualifications of a member, except the chair need only reside outside the city
of Minneapolis. The chair shall preside at all meetings of the commission, if
present, and shall perform all other duties and functions assigned by the
commission or by law. The commission may appoint from among its members a
vice-chair to act for the chair during temporary absence or disability.
stadium metrodome is
located shall be an elected public official of that city or of another political
subdivision any part of whose territory is shared with that city. Each member
shall qualify by taking and subscribing the oath of office prescribed by the
Minnesota Constitution, article V, section 6. The oath, duly certified by the
official administering it, shall be filed with the chair of the metropolitan
council.
three the voting members shall end the first Monday in January in the year ending in
the numeral "5". The terms of the other members and the chair shall end the
first Monday in January in the year ending in the numeral "7". The term of each
member and the chair, shall be four years. The
terms shall continue until a successor is appointed and qualified. Members may
be removed only for cause. Each nonvoting member
appointed as provided in subdivision 2, paragraph (c), shall serve at the
pleasure of the respective appointing authority.
Abrams | Farrell | Kalis | McCollum | Peterson | Swenson, H. |
Bakk | Finseth | Kelso | McElroy | Pugh | Sykora |
Bettermann | Folliard | Kielkucki | McGuire | Rest | Tingelstad |
Biernat | Garcia | Knight | Milbert | Reuter | Tomassoni |
Boudreau | Goodno | Knoblach | Molnau | Rhodes | Tompkins |
Bradley | Greenfield | Koppendrayer | Mulder | Rifenberg | Trimble |
Broecker | Greiling | Koskinen | Mullery | Rostberg | Tuma |
Carlson | Gunther | Kraus | Munger | Rukavina | Tunheim |
Chaudhary | Haas | Kubly | Murphy | Schumacher | Van Dellen |
Clark | Harder | Kuisle | Ness | Seagren | Wagenius |
Commers | Hausman | Larsen | Nornes | Seifert | Weaver |
Daggett | Hilty | Leighton | Olson, E. | Sekhon | Wejcman |
Davids | Holsten | Lieder | Olson, M. | Skare | Wenzel |
Dawkins | Huntley | Lindner | Opatz | Skoglund | Westfall |
Dehler | Jaros | Long | Orfield | Slawik | Westrom |
Delmont | Jefferson | Luther | Osskopp | Smith | Winter |
Dempsey | Jennings | Macklin | Osthoff | Solberg | Wolf |
Dorn | Johnson, A. | Mahon | Ozment | Stanek | Workman |
Entenza | Johnson, R. | Mares | Paulsen | Stang | Spk. Carruthers |
Erhardt | Juhnke | Mariani | Pawlenty | Sviggum | |
Evans | Kahn | Marko | Pelowski | Swenson, D. | |
The motion prevailed and the amendment was adopted.
Osthoff, Rest, Jennings and Abrams moved to amend H. F. No. 2, the first engrossment, as amended, as follows:
Page 14, after line 16, insert:
"Subd. 20. [FOOD AND BEVERAGE CONTRACTS; BIDDING.] All contracts for food and beverage services shall be advertised and selection of food and beverage purveyors the result of an open, public, competitive bidding process with the primary goal of maximizing income."
The motion prevailed and the amendment was adopted.
Jennings moved to amend H. F. No. 2, the first
engrossment, as amended, as follows:
Delete everything after the enacting clause and insert:
Section 1. [473I.01] [LEGISLATIVE POLICY; PURPOSE.]
The legislature finds that:
(a) Obtaining and securing the
retention and location of professional major league sports teams in the state
and within the metropolitan area has and will provide economic development,
attract and secure additional employment, maintain and enhance the tax base upon
which the state and its political subdivisions depend for the financing of other
governmental functions, and provide important social, entertainment,
recreational, and tourism opportunities for the state and its citizens.
(b) The metropolitan council and
the metropolitan sports facilities commission, in providing for the construction
and ownership of the Hubert H. Humphrey Metrodome, and the city of Minneapolis
in providing for the purchase and ownership of the Target Center, have and will
serve and achieve the foregoing public purposes by promoting major league
baseball, football, and basketball games in the state and within the
metropolitan area.
(c) The retention of major
league professional baseball and the construction of an additional baseball
facility in the state and within the metropolitan area, by reasonable methods
that the legislature and the commission may devise to further secure and promote
these public purposes, will increase and enhance the value and public benefits
afforded to the state and its citizens.
(d) It is therefore necessary
for the public health, safety, and general welfare to aid in the financing of
the acquisition, construction, and operation of a new baseball facility and to
retain and secure the long-term commitment of a major league professional
baseball team by reasonable means, which may include partial public ownership of
the team, and by authorizing financing and other arrangements as necessary to
accomplish that purpose. It is hereby determined and declared that the purposes
of this act are public and governmental.
Sec. 2. [473I.02] [RECOMMENDATIONS ON GOVERNING BODY.]
The metropolitan sports
facilities commission shall make recommendations to the legislature with respect
to a new or broadened membership structure or public authority that will
adequately represent the interests of the public. The recommendations must be
delivered to the chairs of the house local government and metropolitan affairs
committee and the senate metropolitan and local government committee by January
1, 1998.
Sec. 3. [473I.03] [DEFINITIONS.]
Subdivision 1. [APPLICATION;
ADOPTED BY REFERENCE.] The definitions in this section
and in sections 473.121 and 473.551, apply in this act.
Subd. 2. [BASEBALL FACILITY
DEFINED AND DESCRIBED.] "Baseball facility" means a
state-of-the-art open air ball park designed for baseball only, that is suitable
for major league baseball and no other major league spectator sport that uses a
surface or seating configuration different from major league baseball, and that
is the major capital improvement resulting from the project described in this
act. The baseball facility may have a convertible roof that promotes the
historic amenities of an open air baseball park when weather permits and a
comfortable climate-controlled environment for performers and patrons when
uncomfortable weather is present or anticipated. The baseball facility may
include parking or other transit facilities for patrons, performers, and
employees and may include other amenities to enhance or make the use of the
baseball facility convenient and predictably accessible to all Minnesotans and
others.
Subd. 3. [THE PUBLIC
AUTHORITY.] "The public authority" means the
metropolitan sports facilities commission or its successor organization.
Subd. 4. [PROJECT.] "Project" means the entire process from inviting proposals
for sites to completion of the baseball facility and all amenities related to
construction of the baseball facility.
Subd. 5. [CITY.] "City" means the city of Minneapolis.
Subd. 6. [TEAM.] "Team" means the professional major league baseball
team.
Subd. 7. [OWNER.] "Owner" means the individual or individuals acting in
concert as a partnership or corporation that own at least a majority or
controlling interest in the team.
Subd. 8. [NET OPERATING
PROFITS.] "Net operating profits" means the gross
revenues remaining after payment of clauses (1), (2), and (3) in section
473I.11, subdivision 2.
Sec. 4. [473I.04] [POWERS AND DUTIES.]
Subdivision 1. [IN THIS
SECTION.] The public authority has all powers necessary
or convenient to discharge the duties imposed on it by law, including, but not
limited to, those specified in this act, in sections 473.551 to 473.599, and in
other law.
Subd. 2. [USE JOINT POWERS.]
The public authority may jointly or cooperatively
exercise powers under section 471.59, according to the terms of that section,
with any other governmental unit that may make use of section 471.59 with
another entity.
Subd. 3. [SITE; BASEBALL
FACILITY.] (a) The public authority and the owner, by
mutual agreement, must select a site for the baseball facility in the city. The
process to select the site must include a procedure to set minimum
specifications for the site, including necessary or desirable appropriate
economic development possibilities on adjacent property. The process must
consider the use of incremental revenue to public entities, as a result of or in
anticipation of the project, as revenue sources for the funding of the
project.
(b) The public authority and the
owner, by mutual agreement, must determine the program elements of the baseball
facility, including, but not limited to, capacity, suites, club seats, clubs,
and amenities. The public authority and the owner, by mutual agreement, must
also determine the baseball facility design, and the selection of the project
construction team, including the architect and general contractor.
Subd. 4. [NEGOTIATIONS.] The public authority must negotiate with the city or other
governmental units to receive some or all incremental revenue of whatever kind
that flows to the city or other local government units directly or indirectly as
a result of or in anticipation of the operation of the baseball facility.
Revenue sources may include, but are not limited to, transactions involving
beverage sales, entertainment, hotel occupancy, and parking. The public
authority must also negotiate with appropriate governmental entities, including
the city, for necessary or appropriate infrastructure to support the existence
and operation of the baseball facility, the movement of patrons to and from the
baseball facility, and their comfort, safety, and convenience while in and
around the baseball facility.
Subd. 5. [EMINENT DOMAIN.]
The public authority may exercise the right of eminent
domain under this act and chapter 117 to acquire a site for the baseball
facility. The obligation of the public authority for the taking is limited to
what is compensable under the Minnesota and federal constitutions and only to
what is constitutionally required to be paid. If the public authority determines
that the amount of compensation required to be paid is excessive, the public
authority may abandon the condemnation process in whole or part.
Subd. 6. [INTERGOVERNMENTAL
FRANCHISE COMPETITION.] The public authority may
cooperate and contract with other political entities in the United States, with
which it may compete for sports, exposition, and entertainment franchises and
facilities to form an entity to lobby the United States Congress to enact
legislation to prevent artificial competition among governmental entities for
sports, exposition, and entertainment franchises and facilities.
Subd. 7. [REVENUE BONDS.] The public authority may issue and sell up to $50,000,000
of revenue bonds for site assembly. The revenue with which the principal and
interest on the bonds is paid may include some or all of any revenue received by
the public authority, as authorized in this act or in connection with its
ownership of the baseball facility. The
bonds must be issued, sold, and secured in the manner
provided in chapter 475, for bonds payable solely from revenues, and the public
authority has the same powers and duties as a municipality and a municipality's
governing body in issuing bonds under chapter 475. The public authority may
pledge for the payment of bonds the net revenues from the taxes and fees
authorized in sections 473I.05 and 473I.07. The bonds may be sold at any price
and at public or private sale as determined by the public authority. The bonds
are payable solely from the revenues to the public authority attributable to the
baseball facility and are not a general obligation or debt of the public
authority, and must not be included in the net debt of any city, county, or
other subdivision of the state for the purpose of any net debt limitation. No
election is required. Subd. 8. [REVENUE
ANTICIPATION CERTIFICATES.] In anticipation of the
proceeds from the taxes imposed by or under authority of this act and the
revenues of the public authority provided for in its budget, but subject to any
limitation or prohibition in a bond resolution or indenture, the public
authority may authorize the issuance, negotiation, and sale, in the form and
manner and upon the terms that it may determine, of revenue anticipation
certificates. The principal amount of the certificates outstanding may never
exceed ....... percent of the total amount of the tax and other revenues
anticipated. So much of the anticipated tax and other revenues as may be needed
for the payment of the certificates and interest on them must be paid into a
special debt service fund established for the certificates in the public
authority's financial records. The proceeds of the certificates may be used for
any purpose for which the anticipated revenues or taxes may be used.
Subd. 9. [DESIGN-BUILD.] In constructing the baseball facility, the public authority
must use the design-build method of project development and construction as
defined in Laws 1996, chapter 463, section 58.
Subd. 10. [LIMITATIONS.] (a) Except as provided in paragraph (o), the public
authority must not commit money for the construction, acquisition, and
betterment of the baseball facility until after the public authority has made
the determinations in paragraphs (b) to (t).
(b) The public authority has
executed agreements with the owner to use the baseball facility for all
scheduled regular season and postseason home games. The agreements must be for a
period of no less than 30 years, except as provided in paragraph (p), and
sections 473I.10 and 473I.11. The agreements may contain provisions negotiated
with the owner that provide for earlier termination of the use of the baseball
facility upon conditions related to and limited to the bankruptcy and insolvency
of the team. The agreements shall afford to the public authority or other public
entity, as the public authority deems appropriate, the remedies that are deemed
necessary and appropriate to provide reasonable assurances that the team and the
owner shall comply with the agreements. The remedies may include the payment of
liquidated damages equivalent to direct and consequential damages incurred by
reason of the breach of the agreements and any additional remedies or security
arrangements the public authority reasonably determines to be effective in
accomplishing the purpose of this subdivision. At any time after the effective
date of this act, in the event of a material breach of the agreements by the
owner and the subsequent failure to cure by the owner, the public authority may
exercise its option to purchase the team for $105,000,000.
The agreements between the
public authority and the owner must also provide that:
(1) the owner, in consultation
with the public authority, must provide for management of the baseball facility
and may contract with one or more entities to operate part or all of the
baseball facility;
(2) the owner, in consultation
with the public authority, may contract with one or more food and beverage
purveyors to provide food and beverages for the baseball facility;
(3) the public authority's
profit is 49 percent of the net operating profit of the baseball facility, as
defined in section 473I.03, subdivision 8, less the admission tax or ticket
surcharge revenue received by the public authority;
(4) the owner and the public
authority have developed a procedure, mutually agreed upon, for the public
authority to be represented in the budgeting process for the team; and
(5) the owner and the public
authority have developed criteria for performance and operation of the baseball
facility and the team.
(c) The team and the owner has
provided information sufficient to satisfy the public authority of the team's
and the owner's ability to comply with the terms of the 30-year use
agreement.
(d) The public authority has
acquired, or has contracted to acquire, title to all real property including all
easements and other appurtenances needed for the construction and operation of
the baseball facility or has received a grant of funds or has entered into
agreements sufficient in the judgment of the public authority to ensure the
receipt of funds, at the time and in the amount required, to make any payment
upon which the public authority's acquisition of title and possession of the
real property is conditioned.
(e) The public authority has
received a grant of funds or entered into agreements sufficient in the judgment
of the public authority to ensure the receipt of funds, at the time and in the
amount required, to pay all costs, except as provided in this subdivision, of
clearing the real property needed for the construction and operation of the
baseball facility of all buildings, railroad tracks, and other structures
including, without limitation, all relocation costs including utility relocation
costs and all legal costs.
(f) The public authority has
executed agreements with appropriate labor organizations and construction
contractors that provide that no labor strikes or management lockouts will delay
construction.
(g) The public authority has
executed agreements to provide for the construction of the baseball facility for
a guaranteed maximum price and substantial completion date of April 1, 2001, and
that include performance bonds in an amount at least equal to 100 percent of the
guaranteed maximum price to cover any costs that may be incurred over and above
the guaranteed maximum price, including, but not limited to, costs incurred by
the public authority or loss of revenues resulting from incomplete construction
on the substantial completion date.
(h) By April 1, 1998, (1) at
least 80 percent of the private boxes provided for in the proposal for the
baseball facility are sold or leased for at least ten years, (2) at least 80
percent of the club seats provided for in the proposal for the baseball facility
are sold or leased for the opening season, (3) pledges to purchase permanent
seat licenses have been made, as agreed to jointly by the owner and the public
authority, and (4) pledges to purchase 22,000 season tickets for the opening
season have been made. If the provisions of this paragraph are not met, either
the owner or the public authority may require negotiations for a baseball
facility to cease.
(i) The owner has made a pledge,
in a form satisfactory to the public authority, to make a charitable gift of
cash or marketable securities of not less than $15,000,000 to be paid on or
before April 1, 2001.
(j) The owner has, in
consultation with the public authority, developed a private sector capital plan
that includes the sale or lease of some or all promotional rights in, or, and
around the baseball facility.
(k) The anticipated revenue from
the operation of the baseball facility plus any additional available revenue of
the public authority and the revenue from the taxes imposed by or under public
authority of this act is an amount sufficient to pay when due all debt service,
if any, plus all administration, operating, and maintenance expense.
(l) The public authority has
studied and considered the needs of the University of Minnesota for athletic
facilities for the next 20 years.
(m) The public authority has
entered into an agreement with the brokerage firm to be used in connection with
the issuance and sale of the bonds or revenue anticipation certificate
guaranteeing that fees and charges payable to the brokerage firm under the
agreement, including any underwriting discounts, do not exceed fees and charges
customarily payable in connection with the issuance and sale of bonds or revenue
anticipation certificates.
(n) The validity of any bonds
issued under subdivision 7, and the obligations of the public authority related
to them, must not be conditioned upon or impaired by the public authority's
determinations made under this subdivision. For purposes of issuing bonds, the
determinations made by the public authority are conclusive, and the public
authority is obligated for the security and payment of the bonds irrespective of
determinations that may be erroneous, inaccurate, or otherwise mistaken.
(o) The public authority may use
the appropriation advanced to it in section 13 to carry out its duties under
this subdivision.
(p) The owner has entered into
an enforceable contract with the public authority providing the public authority
with a 49 percent ownership interest in the team and providing the state, or a
political subdivision an option to acquire the team, as provided in sections
473I.10 and 473I.11.
(q) The public authority and the
owner have entered into an agreement that obligates the owner to manage the team
in good faith so as to achieve profitable operation.
(r) The owner and the public
authority have entered into an agreement for the operation and maintenance of
the baseball facility.
(s) The public authority and the
owner have entered into an agreement that provides that the owner must:
(1) provide for the contractual
arrangements relating to naming rights and vendor agreements;
(2) use best efforts to obtain
construction funds for the baseball facility from major league baseball; and
(3) use best efforts to obtain a
major league baseball agreement for an all-star game in the baseball facility
within the first eight years following opening day.
(t) The public authority shall
renegotiate the lease or use agreement between the owner and the public
authority for use of the Metrodome in light of the pending construction of the
baseball facility. The renegotiated agreement must provide that the owner
receive additional revenues equal to or greater than the amount of the
admissions tax collected by the team in the Metrodome.
Subd. 11. [PRIVATE
CONTRIBUTIONS.] The public authority may accept private
contributions to further its public purposes.
Subd. 12. [USE OF CERTAIN
REVENUES.] No less than $25,000,000 of revenues from the
sale of naming rights, concessionaire payments, and other project capital
opportunities, must be used to fund the baseball facility.
Subd. 13. [AMATEUR ATHLETIC
EVENTS.] The public authority, jointly with the owner,
must develop a scheduling system to make the baseball facility reasonably
available at net out-of-pocket cost to amateur athletic events that do not
conflict with major league baseball or other scheduled revenue producing
events.
Subd. 14. [COMPATIBLE USES.]
The public authority may do what it considers
appropriate to encourage and develop sports and recreational opportunities,
professional or otherwise, and make arrangements, jointly with the owner, for
the use of the baseball facility for sports, recreation, entertainment, civic,
exposition, and other uses not incompatible with its primary functions.
Subd. 15. [CAPITAL REPAIR;
IMPROVEMENTS.] The public authority is responsible for
capital repairs, improvements, and enhancements and betterments necessary to
maintain the baseball facility as a state-of-the-art facility. To the extent the
costs to maintain the facility as a state-of-the-art facility exceed the funds
in the capital improvement fund, the public authority and the owner shall agree
on the improvements to be made.
Sec. 5. [473I.05] [SPECIAL ECONOMIC DEVELOPMENT
DISTRICT; TAXES AND FEES.]
Subdivision 1. [LEGISLATIVE
FINDINGS.] The legislature finds that the construction
of a baseball facility defined under section 473I.03, subdivision 2, is a public
improvement that has regional and statewide economic benefits. In addition, the
baseball facility will specifically benefit the class of persons operating
retail and service businesses within the surrounding area. The legislature finds
that the designation by the public authority of the area surrounding the
baseball facility as a special economic development district and the imposition
of taxes or fees within the district will more equitably apportion the burdens
of funding the baseball facility among the classes of persons benefiting from
the project.
Subd. 2. [SPECIAL TAXES.] Notwithstanding section 477A.016, or any other limitation
of law or charter, pursuant to an agreement with the public authority under
section 473I.04, subdivision 4, the city or other local governmental unit may by
resolution impose liquor and entertainment taxes or fees within the city or
within the area within which retail and service
businesses receive special economic benefits from the
operation of the baseball facility, and so designated by the city or other local
governmental unit as a special economic development district. The resolution
must provide for dedication of the taxes or fees, after payment of collection
and administrative expenses and refunds, to payment of principal and interest on
bonds issued under section 473I.05, subdivision 7, if any, or for general
revenue for the purposes of this act, and for the transfer of the taxes
collected to the public authority for those purposes. Subd. 3. [MINIMUM PAYMENTS.]
The net revenues collected under this section must be
divided between the public authority and the owner in proportion to the public
authority's and the owner's ownership interest in the team. If the net revenues
collected under this section do not equal at least $3,000,000 per year, indexed
after 1997 by the annual percentage change in the consumer price index for urban
consumers as prepared by the United States Bureau of Labor Statistics, the state
shall reimburse the owner and the public authority an amount sufficient to make
up the difference.
Sec. 6. [473I.06] [CONSTRUCTION MATERIALS; SALES TAX
EXEMPTION.]
Purchases of materials and
supplies used or consumed in constructing or incorporated into the construction
of a baseball facility defined under section 473I.03, subdivision 2, are exempt
from the taxes imposed under chapter 297A, and from any sales and use tax
imposed by a local unit of government notwithstanding any ordinance or charter
provision. This exemption applies regardless of whether the materials and
supplies are purchased by the owner of the baseball facility, the construction
managers, or by a contractor or subcontractor.
Sec. 7. [473I.07] [FISCAL DISPARITIES EXEMPTION;
TRANSFER TO PUBLIC AUTHORITY.]
(a) The county auditor shall not
include the taxable net tax capacity of any development within the special
economic development district as defined in section 473I.05, subdivision 2, in
determining the net tax capacity of the municipality under section 473F.05.
(b) The city shall annually
transfer to the public authority an amount determined by multiplying the taxable
net tax capacity of development within the special economic development district
by the ratio determined pursuant to section 473F.08, subdivision 6, by the
areawide tax rate determined under section 473F.08, subdivision 5. The amount
transferred must be used by the public authority to pay principal and interest
on bonds issued under section 473I.04, subdivision 7, if any, or for other
purposes of this act.
Sec. 8. [473I.08] [EXEMPTION OF PROPERTY.]
Any real or personal property
acquired, owned, leased, controlled, used, or occupied by the public authority
for any of the purposes of this chapter is declared to be acquired, owned,
leased, controlled, used, and occupied for public, governmental, and municipal
purposes and is exempt from ad valorem taxation by the state or any political
subdivision of the state. The properties are subject to special assessments
levied by a political subdivision for a local improvement in amounts
proportionate to and not exceeding the special benefit received by the
properties from the improvement. A possible use of the properties in any manner
different from their use under this act at the time must not be considered in
determining the special benefit received by the properties. Notwithstanding
section 272.01, subdivision 2, or 273.19, real or personal property leased by
the public authority to another for the operation of the baseball facility is
exempt from taxation regardless of the length of the lease.
Sec. 9. [473I.09] [ADMISSION TAX; TICKET SURCHARGE.]
The public authority shall by
resolution impose and maintain an admission tax or ticket surcharge upon the
granting, issuance, sale, or distribution, by any private or public person,
association, or corporation, of the privilege of admission to activities at the
baseball facility. No other tax, surcharge, or governmental imposition, except
the taxes imposed by chapter 297A, may be levied by any other unit of government
upon any such sale or distribution. The admission tax or ticket surcharge must
be stated and charged separately from the sales price so far as practicable and
must be collected by the grantor, seller, or distributor from the person
admitted and is a debt from that person to the grantor, issuer, seller, or
distributor, and the tax required to be collected is a debt owed by the grantor,
issuer, seller, or distributor to the public authority. The debt is recoverable
at law in the same manner as other debts. Every person who grants, issues,
sells, or distributes tickets for the admissions may be required, as provided in
resolutions of the public authority to secure a permit, to file returns, to
deposit security for the payment of the tax, and to pay penalties for nonpayment
and interest on late payments, that are considered necessary or expedient to
ensure the prompt and uniform collection of the tax.
Sec. 10. [473I.10] [PUBLIC PURCHASE AND SALE OF TEAM.]
Subdivision 1. [GENERAL.] The owner shall enter into an agreement, in form and
substance acceptable to both the owner and the public authority, that provides
for the public authority to purchase the team under the conditions in this
section.
Subd. 2. [BASEBALL RULES.]
If the public authority purchases the team, the owner
may retain a minimal ownership interest in the team with operational control, if
required by the major league baseball rules then in effect.
Subd. 3. [NOTICE; PRICE.] The owner may sell the team to the public authority for
$105,000,000 no sooner than the fifth anniversary of the first regular home game
played in the baseball facility, or April 1, 2006, whichever is earlier, except
as provided in subdivision 4. The owner must provide a written notice to the
public authority and to the commissioner of finance of the owner's intention to
offer the team for sale to the public authority at least one year before the
obligation of the public authority to purchase the team arises. During the
one-year notice period, the public authority shall seek a suitable private
purchaser. If a suitable private purchaser is found, the sale price must be no
less than the price that the public authority would pay under this subdivision.
If, during the one-year period, the public authority is not able to find a
suitable private purchaser, the public authority shall purchase the team.
Subd. 4. [DECLINE IN TEAM
VALUE.] At any time after the effective date of this
act, if the value of the team declines by ten percent or more below
$105,000,000, as confirmed by an appraisal process agreed upon by both parties,
the public authority may purchase the team for $105,000,000.
Subd. 5. [APPRECIATION IN
TEAM VALUE.] If the public authority acquires the team
under this section, the owner shall receive ten percent of any appreciation in
the team's value above $105,000,000 in 2005, and an additional 2-1/2 percent
each year after 2005, up to a maximum of 25 percent.
Sec. 11. [473I.11] [PROFIT SHARING.]
Subdivision 1. [PROFITS;
RENTS.] The public authority must receive 49 percent of
the net operating profits, less the admissions tax or ticket surcharge revenue.
This allocation of 49 percent of the net operating profits represents a
percentage rent payment from the team.
Subd. 2. [PRIORITY OF
PAYMENTS.] Gross revenues of the team must be allocated
in the following order of priority:
(1) operating expenses of the
team, including debt service on no more than $21,000,000 of the team debt,
unless otherwise agreed to by the public authority and the owner, and excluding
seasonal working capital requirements;
(2) operating expenses of the
baseball facility;
(3) funding of a capital
improvement fund in an amount not to exceed $700,000 per year, unless otherwise
agreed to by the public authority and the owner; and
(4) of the remaining gross
revenues, payment to the public authority of 49 percent, less an amount equal to
any admissions tax or ticket surcharge revenues received by the public
authority, and payment to the owner of the remainder.
If net operating profits in a
year exceed $......., the owner shall receive $....... before the allocation
under clause (4) is made.
Subd. 3. [TEAM OPERATING
EXPENSES; LOSS.] The owner shall assume all risk for
funding operating expenses of the team as described in subdivision 2, clause
(1). The public authority is not liable for any operating loss of the team. The
public authority shall not reimburse the owner or any creditor of the team for
any operating loss of the team.
Subd. 4. [GENERAL PARTNER.]
The owner is the controlling general partner. The
owner's compensation under this section is limited exclusively to 51 percent of
the team's net operating profits and any incentive payment described in
subdivision 2.
Sec. 12. [473I.12] [ANNUAL APPROPRIATION.]
(a) For fiscal year 1998 and
annually thereafter, the commissioner of revenue shall certify to the
legislature and to the public authority the amount of tax receipts of the state
deposited in the public authority account according to sections 297F.10,
subdivision 1, paragraph (b), clauses (2) and (3); 297F.10, subdivision 2; and
article 2, section 6, subdivision 4. The certified amount is appropriated to the
authority.
(b) An amount equal to the
amount appropriated in section 13 must be deducted from the amount that would
otherwise be appropriated for fiscal year 1998 under paragraph (a). The amount
of the deduction must be transferred to the general fund.
Sec. 13. [APPROPRIATION.]
$1,000,000 is appropriated for
fiscal year 1998 from the general fund to the public authority for the purposes
of section 473I.04, subdivision 10, paragraph (o).
Sec. 14. [EFFECTIVE DATE.]
This article is effective the
day following its final enactment.
Section 1. Minnesota Statutes 1996, section 11A.24, is
amended by adding a subdivision to read:
Subd. 6a. [SPORTS AUTHORITY
DEBT.] In addition to the investments authorized in
subdivisions 1 to 6, the state board may invest funds in debt obligations of the
public authority defined in section 473I.03, subdivision 3.
Sec. 2. [79.362] [ADDITIONAL POWERS.]
In addition to the powers
granted in sections 79.35 and 79.36, the reinsurance association may invest in
debt obligations of the public authority defined in section 473I.03, subdivision
3.
Sec. 3. Minnesota Statutes 1996, section 80A.15, is
amended by adding a subdivision to read:
Subd. 1a. [ADDITIONAL EXEMPT
SECURITIES.] Any security evidencing a share in the
public authority's ownership interest in a Minnesota major league professional
baseball team is exempt from sections 80A.08 and 80A.16.
Sec. 4. Minnesota Statutes 1997 Supplement, section
297F.05, subdivision 1, is amended to read:
Subdivision 1. [RATES; CIGARETTES.] A tax is imposed
upon the sale of cigarettes in this state, upon having cigarettes in possession
in this state with intent to sell, upon any person engaged in business as a
distributor, and upon the use or storage by consumers, at the following rates,
subject to the discount provided in this chapter:
(1) on cigarettes weighing not more than three pounds
per thousand, (2) on cigarettes weighing more than three pounds per
thousand, Sec. 5. Minnesota Statutes 1997 Supplement, section
297F.05, subdivision 3, is amended to read:
Subd. 3. [RATES; TOBACCO PRODUCTS.] A tax is imposed
upon all tobacco products in this state and upon any person engaged in business
as a distributor, at the rate of (1) brings, or causes to be brought, into this state
from outside the state tobacco products for sale;
(2) makes, manufactures, or fabricates tobacco products
in this state for sale in this state; or
(3) ships or transports tobacco products to retailers in
this state, to be sold by those retailers.
Sec. 6. Minnesota Statutes 1997 Supplement, section
297F.05, subdivision 4, is amended to read:
Subd. 4. [USE TAX; TOBACCO PRODUCTS.] A tax is imposed
upon the use or storage by consumers of tobacco products in this state, and upon
such consumers, at the rate of Sec. 7. Minnesota Statutes 1997 Supplement, section
297F.08, subdivision 7, is amended to read:
Subd. 7. [PRICE OF STAMPS.] The commissioner shall sell
stamps to any person licensed as a distributor at a discount of Sec. 8. Minnesota Statutes 1997 Supplement, section
297F.09, subdivision 2, is amended to read:
Subd. 2. [MONTHLY RETURN; TOBACCO PRODUCTS DISTRIBUTOR.]
On or before the 18th day of each calendar month, a distributor with a place of
business in this state shall file a return with the commissioner showing the
quantity and wholesale sales price of each tobacco product:
(1) brought, or caused to be brought, into this state
for sale; and
(2) made, manufactured, or fabricated in this state for
sale in this state, during the preceding calendar month.
Every licensed distributor outside this state shall in
like manner file a return showing the quantity and wholesale sales price of each
tobacco product shipped or transported to retailers in this state to be sold by
those retailers, during the preceding calendar month. Returns must be made in
the form and manner prescribed by the commissioner and must contain any other
information required by the commissioner. The return must be accompanied by a
remittance for the full tax liability shown, less Sec. 9. Minnesota Statutes 1997 Supplement, section
297F.10, subdivision 1, is amended to read:
Subdivision 1. [TAX AND USE TAX ON CIGARETTES.] Revenue
received from cigarette taxes, as well as related penalties, interest, license
fees, and miscellaneous sources of revenue shall be deposited by the
commissioner in the state treasury and credited as follows:
(a) first to the general obligation special tax bond
debt service account in each fiscal year the amount required to increase the
balance on hand in the account on each December 1 to an amount equal to the full
amount of principal and interest to come due on all outstanding bonds whose debt
service is payable primarily from the proceeds of the tax to and including the
second following July 1; and
(b) after the requirements of paragraph (a) have been
met:
(1) the revenue produced by one mill of the tax on
cigarettes weighing not more than three pounds a thousand and two mills of the
tax on cigarettes weighing more than three pounds a thousand must be credited to
the Minnesota future resources fund; and
(2) the revenue due to 4.5 mills
of tax per cigarette must be credited to the public authority account;
(3) the revenue due to 0.5 mills
of tax per cigarette must be credited to the youth smoking prevention education
account; and
24 29
mills on each such cigarette; and
48 58 mills on
each such cigarette.
35 42 percent of the wholesale sales price of the tobacco
products. The tax is imposed at the time the distributor:
35 42 percent of the cost to the consumer of the tobacco
products.
1.0 .8 percent from the
face amount of the stamps for the first $1,500,000 of such stamps purchased in
any fiscal year; and at a discount of 0.6 .5 percent on the remainder of such stamps purchased in
any fiscal year. The commissioner shall not sell stamps to any other person. The
commissioner may prescribe the method of shipment of the stamps to the
distributor as well as the quantities of stamps purchased.
1.5 1.2 percent of the
liability as compensation to reimburse the distributor for expenses incurred in
the administration of this chapter. The return for the May liability and 75
percent of the estimated June liability is due on the date payment of the tax is
due.
Abrams | Evans | Kalis | McCollum | Peterson | Sykora |
Anderson, I. | Farrell | Kelso | McElroy | Pugh | Tingelstad |
Bakk | Finseth | Kielkucki | McGuire | Rest | Tomassoni |
Bettermann | Folliard | Knight | Milbert | Reuter | Tompkins |
Biernat | Garcia | Knoblach | Molnau | Rhodes | Trimble |
Bishop | Goodno | Koppendrayer | Mulder | Rifenberg | Tuma |
Boudreau | Greenfield | Koskinen | Mullery | Rostberg | Tunheim |
Bradley | Greiling | Kraus | Munger | Rukavina | Van Dellen |
Broecker | Gunther | Krinkie | Murphy | Schumacher | Wagenius |
Carlson | Haas | Kubly | Ness | Seagren | Weaver |
Chaudhary | Harder | Kuisle | Nornes | Seifert | Wejcman |
Clark | Hasskamp | Larsen | Olson, E. | Sekhon | Wenzel |
Commers | Hausman | Leighton | Olson, M. | Skare | Westfall |
Daggett | Hilty | Lieder | Opatz | Skoglund | Westrom |
Davids | Holsten | Lindner | Orfield | Slawik | Winter |
Dawkins | Jaros | Long | Osskopp | Smith | Wolf |
Dehler | Jefferson | Luther | Osthoff | Solberg | Workman |
Delmont | Jennings | Macklin | Ozment | Stanek | Spk. Carruthers |
Dempsey | Johnson, A. | Mahon | Paulsen | Stang | |
Dorn | Johnson, R. | Mares | Pawlenty | Sviggum | |
Entenza | Juhnke | Mariani | Paymar | Swenson, D. | |
Erhardt | Kahn | Marko | Pelowski | Swenson, H. | |
The motion did not prevail and the amendment was not adopted.
Jennings moved to amend H. F. No. 2, the first engrossment, as amended, as follows:
Pages 19 and 20, delete sections 1 to 6
Pages 21 to 27, delete sections 9 to 16 and insert:
"Sec. 3. [473I.03] [METROPOLITAN AREA SALES AND USE TAX.]
Subdivision 1. [IMPOSITION.]
Notwithstanding section 477A.016, the metropolitan
council may impose an additional metropolitan area sales tax at a rate not to
exceed one-half of one percent on all sales taxable under chapter 297A that
occur in the metropolitan area, as defined in section 473.121, and may impose an
additional compensating use tax of up to one-half
of one percent on uses of property within the
metropolitan area, the sale of which would be subject to the additional sales
tax but for the fact the property was sold outside the metropolitan area. The
metropolitan council may not impose the tax on the purchase or acquisition of
motor vehicles.
The tax imposed by this section must not be counted in calculating the maximum 12 percent specified in Laws 1986, chapter 396, section 5, subdivision 2, for taxes on lodging in the city of Minneapolis.
Subd. 2. [ADMINISTRATION AND COLLECTION.] The commissioner of revenue shall administer and collect the tax imposed under this section, in the manner provided by chapters 289A and 297A.
The commissioner may enter into appropriate agreements with the metropolitan council to provide for collection by the state of the tax imposed pursuant to subdivision 2. The commissioner may charge the metropolitan council from the proceeds of any tax a reasonable fee for its collection.
Subd. 3. [DEPOSIT OF REVENUES.] The commissioner of revenue shall deposit the revenues from the tax imposed under this section, less the reasonable cost of collection, in the baseball account in the special revenue fund.
Subd. 4. [EXPIRATION.] The commissioner shall notify the council by the first day of the month after total revenues deposited in the baseball park account have exceeded $175,000,000. The tax imposed under this section expires on the last day of the first month following notification by commissioner of revenue to the council."
Renumber the sections in sequence and correct internal references
Amend the title accordingly
A roll call was requested and properly seconded.
The question was taken on the Jennings amendment and the roll was called. There were 0 yeas and 129 nays as follows:
Those who voted in the negative were:
Abrams | Evans | Kahn | Marko | Pelowski | Swenson, H. |
Anderson, I. | Farrell | Kalis | McCollum | Peterson | Sykora |
Bakk | Finseth | Kelso | McElroy | Pugh | Tingelstad |
Bettermann | Folliard | Kielkucki | McGuire | Rest | Tomassoni |
Biernat | Garcia | Knight | Milbert | Reuter | Tompkins |
Bishop | Goodno | Knoblach | Molnau | Rhodes | Trimble |
Boudreau | Greenfield | Koppendrayer | Mulder | Rifenberg | Tuma |
Bradley | Greiling | Koskinen | Mullery | Rostberg | Tunheim |
Broecker | Gunther | Kraus | Munger | Rukavina | Van Dellen |
Carlson | Haas | Krinkie | Murphy | Schumacher | Wagenius |
Chaudhary | Harder | Kubly | Ness | Seagren | Weaver |
Clark | Hasskamp | Kuisle | Nornes | Seifert | Wejcman |
Commers | Hausman | Larsen | Olson, E. | Sekhon | Wenzel |
Daggett | Hilty | Leighton | Olson, M. | Skare | Westfall |
Davids | Holsten | Lieder | Opatz | Skoglund | Westrom |
Dawkins | Huntley | Lindner | Orfield | Slawik | Winter |
Dehler | Jaros | Long | Osskopp | Smith | Wolf |
Delmont | Jefferson | Luther | Osthoff | Solberg | Workman |
Dempsey | Jennings | Macklin | Ozment | Stanek | Spk. Carruthers |
Dorn | Johnson, A. | Mahon | Paulsen | Stang | |
Entenza | Johnson, R. | Mares | Pawlenty | Sviggum | |
Erhardt | Juhnke | Mariani | Paymar | Swenson, D. | |
Abrams | Farrell | Kalis | McElroy | Peterson | Swenson, H. |
Anderson, I. | Finseth | Kelso | McGuire | Pugh | Sykora |
Bakk | Folliard | Kielkucki | Milbert | Rest | Tingelstad |
Bettermann | Garcia | Knight | Molnau | Reuter | Tomassoni |
Biernat | Goodno | Koppendrayer | Mulder | Rhodes | Tompkins |
Bishop | Greenfield | Koskinen | Mullery | Rifenberg | Trimble |
Boudreau | Greiling | Krinkie | Munger | Rostberg | Tuma |
Bradley | Gunther | Kubly | Murphy | Rukavina | Tunheim |
Broecker | Harder | Kuisle | Ness | Schumacher | Van Dellen |
Carlson | Hasskamp | Larsen | Nornes | Seagren | Wagenius |
Chaudhary | Hausman | Leighton | Olson, E. | Seifert | Weaver |
Clark | Hilty | Lieder | Olson, M. | Sekhon | Wejcman |
Commers | Holsten | Lindner | Opatz | Skare | Wenzel |
Daggett | Huntley | Long | Orfield | Skoglund | Westfall |
Dawkins | Jaros | Luther | Osskopp | Slawik | Westrom |
Delmont | Jefferson | Macklin | Osthoff | Smith | Winter |
Dempsey | Jennings | Mahon | Ozment | Solberg | Wolf |
Dorn | Johnson, A. | Mares | Paulsen | Stanek | Workman |
Entenza | Johnson, R. | Mariani | Pawlenty | Stang | Spk. Carruthers |
Erhardt | Juhnke | Marko | Paymar | Sviggum | |
Evans | Kahn | McCollum | Pelowski | Swenson, D. | |
Those who voted in the negative were:
Davids | Dehler | Haas | Knoblach | Kraus |
The motion prevailed and the amendment was adopted.
Trimble moved to amend H. F. No. 2, the first engrossment, as amended, as follows:
Page 24, lines 25, 26, 28, and 29, delete "professional sports" and insert "major league baseball"
Page 24, line 31, delete "professional sporting" and insert "major league baseball"
The motion did not prevail and the amendment was not
adopted.
Rest moved to amend H. F. No. 2, the first engrossment,
as amended, as follows:
Delete articles 1 and 2
Renumber the sections in sequence and correct internal
references
Amend the title accordingly
A roll call was requested and properly seconded.
The question was taken on the Rest amendment and the
roll was called. There were 96 yeas and 33 nays as follows:
Those who voted in the affirmative were:
Abrams | Finseth | Kraus | McGuire | Paymar | Stang |
Bettermann | Greiling | Krinkie | Molnau | Pelowski | Sviggum |
Biernat | Gunther | Kubly | Mulder | Peterson | Swenson, D. |
Bishop | Harder | Larsen | Mullery | Pugh | Swenson, H. |
Broecker | Hausman | Leighton | Murphy | Rest | Tompkins |
Carlson | Holsten | Lieder | Ness | Reuter | Trimble |
Chaudhary | Huntley | Lindner | Nornes | Rhodes | Tuma |
Commers | Jennings | Long | Olson, E. | Rifenberg | Tunheim |
Davids | Johnson, A. | Luther | Olson, M. | Schumacher | Van Dellen |
Dawkins | Johnson, R. | Macklin | Opatz | Seagren | Wagenius |
Delmont | Juhnke | Mahon | Orfield | Seifert | Weaver |
Dorn | Kahn | Mares | Osskopp | Skare | Wenzel |
Entenza | Kielkucki | Mariani | Osthoff | Skoglund | Westfall |
Erhardt | Knight | Marko | Ozment | Slawik | Westrom |
Evans | Koppendrayer | McCollum | Paulsen | Smith | Winter |
Farrell | Koskinen | McElroy | Pawlenty | Stanek | Workman |
Those who voted in the negative were:
Anderson, I. | Dehler | Haas | Kelso | Rukavina | Wejcman |
Bakk | Dempsey | Hasskamp | Knoblach | Sekhon | Wolf |
Boudreau | Folliard | Hilty | Kuisle | Solberg | Spk. Carruthers |
Bradley | Garcia | Jaros | Milbert | Sykora | |
Clark | Goodno | Jefferson | Munger | Tingelstad | |
Daggett | Greenfield | Kalis | Rostberg | Tomassoni | |
The motion prevailed and the amendment was adopted.
Seifert moved to amend H. F. No. 2, the first engrossment, as amended, as follows:
Page 28, line 28, delete the quote and insert:
"Voting yes may result in cuts to education funding, nursing homes, or property tax relief." "
A roll call was requested and properly seconded.
The question was taken on the Seifert amendment and the
roll was called. There were 93 yeas and 36 nays as follows:
Those who voted in the affirmative were:
Bettermann | Entenza | Juhnke | Mahon | Peterson | Swenson, H. |
Biernat | Erhardt | Kielkucki | Mares | Pugh | Sykora |
Bishop | Evans | Knight | Mariani | Rest | Tingelstad |
Boudreau | Farrell | Knoblach | McCollum | Reuter | Tompkins |
Bradley | Finseth | Koppendrayer | Milbert | Rhodes | Tuma |
Broecker | Folliard | Kraus | Molnau | Rifenberg | Van Dellen |
Carlson | Garcia | Krinkie | Mulder | Rostberg | Wagenius |
Chaudhary | Goodno | Kubly | Ness | Seagren | Weaver |
Clark | Greenfield | Kuisle | Nornes | Seifert | Wejcman |
Commers | Gunther | Larsen | Olson, E. | Skare | Westfall |
Daggett | Haas | Leighton | Olson, M. | Slawik | Westrom |
Davids | Harder | Lieder | Osskopp | Smith | Winter |
Dawkins | Hasskamp | Lindner | Ozment | Stanek | Workman |
Dehler | Holsten | Long | Paulsen | Stang | |
Delmont | Huntley | Luther | Pawlenty | Sviggum | |
Dempsey | Johnson, R. | Macklin | Pelowski | Swenson, D. | |
Those who voted in the negative were:
Abrams | Hilty | Kalis | Mullery | Paymar | Tomassoni |
Anderson, I. | Jaros | Kelso | Munger | Rukavina | Trimble |
Bakk | Jefferson | Koskinen | Murphy | Schumacher | Tunheim |
Dorn | Jennings | Marko | Opatz | Sekhon | Wenzel |
Greiling | Johnson, A. | McElroy | Orfield | Skoglund | Wolf |
Hausman | Kahn | McGuire | Osthoff | Solberg | Spk. Carruthers |
The motion prevailed and the amendment was adopted.
Sviggum moved to amend H. F. No. 2, the first engrossment, as amended, as follows:
Page 1, after line 22, insert:
Section 1. [DEFINITIONS.]
The definitions in Minnesota Statutes, section 473.551, apply to the terms used in sections 2 to 7.
Sec. 2. [SALE OF MET CENTER; DEFEASANCE OF METRODOME BONDS.]
Subdivision 1. [SALE.] The metropolitan sports facilities commission shall sell the met center within a reasonable time.
Subd. 2. [SALE TO METROPOLITAN COUNCIL.] If the commission has not sold the met center by December 31, 1997, the commission shall sell it to the metropolitan council. The council shall pay a price reached by averaging the appraised fair market values provided by three appraisers. One appraiser must be hired by the commission, one by the metropolitan council, and the third by agreement of the commission and the council.
Subd. 3. [BONDS.] The metropolitan council may borrow money or by resolution
authorize the issuance of general obligation bonds or notes for the acquisition
of the met center. The bonds or notes must be sold, issued, and secured in the
manner provided in Minnesota Statutes, chapter 475, and the council has the same
powers and duties as a municipality
issuing bonds under that chapter, except that no
election is required and the net debt limitations in Minnesota Statutes, chapter
475, do not apply to the bonds or notes. The obligations are not a debt of the
state or any other municipality or political subdivision within the meaning of
any debt limitation or requirement pertaining to those entities. The bonds or
notes may be sold at any price and at a public or private sale as determined by
the council. The obligations may be secured by taxes levied without limitation
of rate or amount upon all taxable property in the metropolitan area.
Subd. 4. [DEFEASANCE OF METRODOME BONDS.] Upon the sale of the met center, the commission shall escrow money or securities sufficient to defease the outstanding debt on the metrodome.
Sec. 3. [SALE OF METRODOME.]
Subdivision 1. [OFFER TO SELL.] Upon defeasance of the metrodome's bonded debt, the commission shall offer to sell the metrodome for one dollar to the major league professional football team and the major league baseball club that are tenants of the metrodome as coowners in equal shares and operators of the metrodome subject to the conditions in this act.
Subd. 2. [CONTRACTS HONORED.] As a condition of the purchase of the metrodome, the purchasers are the commission's successors and shall honor the commission's contracts with other tenants and with the metrodome's concession and maintenance services that are in effect at the time of the metrodome's sale.
All contracts for food and beverage services shall be advertised and selection of food and beverage purveyors the result of an open, public, competitive bidding process with the primary goal of maximizing income.
Subd. 3. [RETURN TO PUBLIC OWNERSHIP.] If either the football team or the baseball club vacates the metrodome, its share is transferred to the other. If both the football team and baseball club vacate the metrodome, ownership and operation of the metrodome is transferred to the Minnesota amateur sports commission.
Subd. 4. [NAME.] The name of the metrodome shall remain unchanged.
Subd. 5. [30-YEAR USE AGREEMENT.] (a) The commission must execute agreements with the owners and the teams to use the metrodome for all scheduled regular season and all postseason division, league, and championship play-off home games for no less than 30 years, without an escape clause for the owner. The commission and the owners may also negotiate new terms and conditions for the current use agreement.
(b) The agreements shall afford to the commission, or to another public entity as the commission deems appropriate, the rights and remedies that are deemed necessary and appropriate to provide reasonable assurances that the teams and the owners will comply with the agreements throughout the 30-year term. The remedies must include liquidated damages in the amount of $250,000,000 plus interest on the bonds sold for this purpose, payable by the team and the owners jointly and severally to the commission, or to another public entity as the commission deems appropriate, in the event a team relocates to another facility within the 30-year period, less 1/30 of that amount for each year the team has met its obligation to play in the baseball park. The remedies may include specific performance and injunctive relief and any other equitable remedies, and any additional remedies or ownership, voting, or other security arrangements the commission reasonably determines to be effective in ensuring the baseball team will play the required games in the metrodome throughout the 30-year term. In the enforcement of the agreements, the commission may elect from among the rights and remedies provided for in this paragraph, and that election does not extinguish the commission's other rights and remedies except as may otherwise be provided by law. It is the intent of the legislature that a material breach of an agreement between the commission and other public bodies and professional athletic teams that commit to the long-term playing of major league games at public facilities is deemed to cause irreparable harm for which no adequate remedy at law is available and that the grant of equitable relief to remedy the breach is in the public interest and shall be liberally so construed.
(c) The agreements must confer exclusive jurisdiction for judicial enforcement of the agreements on Minnesota state courts and provide that disputes arising under the agreement be governed by Minnesota law.
Sec. 4. [OTHER ASSETS AND LIABILITIES.]
Subdivision 1.
[DETERMINATION.] If the tenants of the metrodome agree
to buy the metrodome under section 3, the commission shall determine its
remaining assets and liabilities.
Subd. 2. [PAYMENT OF
LIABILITIES.] Except as provided in section 3, the
commission shall pay all liabilities of the commission out of the commission's
remaining funds. The state is the commission's successor in any proceeding,
court action, prosecution, or other business or matter pending on the effective
date of section 5, abolishing the commission.
Subd. 3. [DISTRIBUTION OF
ASSETS.] After payment of liabilities, the remaining
assets of the commission are distributed as follows:
(1) personalty remains with the
metrodome unless otherwise negotiated by the commission and the purchasers of
the metrodome; and
(2) cash and investments are
transferred to the general fund.
Subd. 4. [EXEMPTION FROM
PROPERTY TAXES.] If the tenants of the metrodome agree
to buy the metrodome under section 3, the metrodome shall continue to be exempt
from ad valorem taxation as provided in section 473.556, subdivision 4, but
shall continue to be subject to special assessments as provided in that
subdivision.
Sec. 5. [COMMISSION ABOLISHED.]
Upon the sale of the metrodome,
payment of liabilities, and distribution of assets, the metropolitan sports
facilities commission is abolished.
Sec. 6. Minnesota Statutes 1996, section 240A.08, is
amended to read:
240A.08 [APPROPRIATION.]
(a) $750,000 is appropriated annually from the general
fund to the Minnesota amateur sports commission for the purpose of entering into
long-term leases, use, or other agreements with the (b) The amateur sports commission shall not transmit to
the operator of the basketball and hockey arena payment of any event-related
costs or expenses, including, but not limited to, personnel, labor, services,
equipment, utilities, or supplies attributable to the events unless and until
the operator has demonstrated, to the satisfaction of the amateur sports
commission, the basis for each specific cost or expense and the means by which
the costs and expenses were determined.
(c) The amateur sports commission may use any ticket
system as may be in place from time to time at the basketball and hockey arena,
provided that any royalty or rebate fees or charges or surcharges on tickets
received by the operator of the arena from third parties must be credited
against event-related costs or expenses.
(d) In the establishment of event-related costs to be
imposed upon the amateur sports commission, the operator of the basketball and
hockey arena shall provide the amateur sports commission with the maximum
discount that the operator has supplied to any other sponsor of a similar
amateur sports event in the arena within the 180-day period immediately
preceding the date of the amateur sports commission event.
(e) The amateur sports commission must report by August
1 each year to the chairs of the house and senate state government finance
divisions on compliance with this section and on the total value of dates and
ancillary services, and revenue derived from resale of dates, during the
previous state fiscal year.
(f) The attorney general, on behalf of the amateur
sports commission, must pursue collection of monetary damages from the operator
of the arena if the operator fails to comply with the requirements of this
section.
(g) The books, records, documents, accounting
procedures, and practices of (h) Any long-term lease, use, or
other agreement entered into by the Minnesota amateur sports commission for use
of the arena must also provide for a release of the Minnesota amateur sports
commission from its commitment and permit it to agree to a per event use fee
when the bonds issued for the metrodome under section 473.581 have been
retired.
Sec. 7. [APPROPRIATION.]
An amount equal to the cash and
investments transferred to the general fund from the abolished metropolitan
sports facilities commission under section 4, subdivision 3, is appropriated to
the Minnesota amateur sports commission for the purposes of providing
underserved youth opportunities for participating in youth sports in the
metropolitan area. This appropriation is available until expended.
Sec. 8. [REPEALER.]
Minnesota Statutes 1996,
sections 473.553; 473.556; 473.561; 473.564; 473.565; 473.572; 473.581; 473.592;
473.595; 473.596; 473.598, subdivisions 1, 2, 4, and 5; and 473.599; and
Minnesota Statutes 1997 Supplement, section 473.598, subdivision 3, are
repealed, effective upon the abolition of the metropolitan sports facilities
commission under section 5.
Sec. 9. [EFFECTIVE DATE.]
Sections 1 to 8 are effective
the day after their final enactment."
Amend the title accordingly
A roll call was requested and properly seconded.
The question was taken on the Sviggum amendment and the
roll was called. There were 39 yeas and 90 nays as follows:
Those who voted in the affirmative were:
metropolitan sports facilities commission Minneapolis community development agency for the
conduct of amateur sports activities at the basketball and hockey arena,
consistent with the purposes set forth in this chapter, including (1)
stimulating and promoting amateur sports, (2) promoting physical fitness by
promoting participation in sports, (3) promoting the development of recreational
amateur sport opportunities and activities, and (4) promoting local, regional,
national, and international amateur sport competitions and events. The amateur
sports commission shall determine what constitutes amateur sports activities as
provided in this chapter as of March 1, 1995. The metropolitan sports facilities commission Minneapolis community development agency may allocate
at least 25 but no more than 50 dates a year for the conduct of amateur sports
activities at the basketball and hockey arena by the amateur sports commission.
At least 12 of the dates must be on a Friday, Saturday, or Sunday. The amateur
sports commission may sell a date at the arena to another group for any purpose.
Revenue from sale of these dates is appropriated to the amateur sports
commission for purposes listed in section 240A.04. If any amateur sports
activities conducted by the amateur sports commission at the basketball and
hockey arena are restricted to participants of one gender, an equal number of
activities on comparable days of the week must be conducted for participants of
the other gender, but not necessarily in the same year. The legislature reserves
the right to repeal or amend this appropriation, and does not intend this
appropriation to create public debt.
the metropolitan sports
facilities commission, the Minneapolis community development agency, and any
corporation with which the Minnesota amateur sports commission may contract for
use of the basketball and hockey arena are available for review by the Minnesota
amateur sports commission, the legislative auditor, and the chairs of the state
government finance divisions of the senate and the house of representatives,
subject to chapter 13 and section 473.598, subdivision 4.
Bettermann | Dorn | Koppendrayer | Mahon | Osthoff | Swenson, D. |
Bishop | Erhardt | Kraus | McElroy | Ozment | Trimble |
Boudreau | Farrell | Krinkie | Milbert | Rest | Van Dellen |
Bradley | Harder | Kubly | Ness | Rhodes | Spk. Carruthers |
Daggett | Hausman | Lindner | Nornes | Rostberg | |
Dawkins | Huntley | Long | Olson, E. | Seagren | |
Dempsey | Jennings | Luther | Osskopp | Sviggum | |
Those who voted in the negative were:
Abrams | Folliard | Kahn | McCollum | Pugh | Sykora |
Anderson, I. | Garcia | Kalis | McGuire | Reuter | Tingelstad |
Bakk | Goodno | Kelso | Molnau | Rifenberg | Tomassoni |
Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5971 |
|||||
Biernat | Greenfield | Kielkucki | Mulder | Rukavina | Tompkins |
Broecker | Greiling | Knight | Mullery | Schumacher | Tuma |
Carlson | Gunther | Knoblach | Munger | Seifert | Tunheim |
Chaudhary | Haas | Koskinen | Murphy | Sekhon | Wagenius |
Clark | Hasskamp | Kuisle | Olson, M. | Skare | Weaver |
Commers | Hilty | Larsen | Opatz | Skoglund | Wejcman |
Davids | Holsten | Leighton | Orfield | Slawik | Wenzel |
Dehler | Jaros | Lieder | Paulsen | Smith | Westfall |
Delmont | Jefferson | Macklin | Pawlenty | Solberg | Westrom |
Entenza | Johnson, A. | Mares | Paymar | Stanek | Winter |
Evans | Johnson, R. | Mariani | Pelowski | Stang | Wolf |
Finseth | Juhnke | Marko | Peterson | Swenson, H. | Workman |
The motion did not prevail and the amendment was not adopted.
Rostberg moved to amend H. F. No. 2, the first engrossment, as amended, as follows:
Page 1, after line 22, insert:
BASEBALL PARK CONSTRUCTION
"Section 1. Minnesota Statutes 1996, section 473.551, subdivision 1, is amended to read:
Subdivision 1. [TERMS.] For the purposes of sections
473.551 to 473.599 473.5996, the following terms shall have the meanings
given in this section.
Sec. 2. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:
Subd. 18. [BASEBALL FACILITY.] "Baseball facility" means the major league professional baseball stadium, constructed pursuant to this act and owned by the commission.
Sec. 3. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:
Subd. 19. [BASEBALL TEAM.] "Baseball team" means the professional major league baseball team.
Sec. 4. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:
Subd. 20. [REVENUES OF THE BASEBALL TEAM.] "Revenues of the baseball team" means all revenues of the baseball team from whatever source, including, but not limited to, any revenues from baseball facility naming rights, sales of personal seat licenses and club seats, private suite leases, concessions, signage, parking, and ticket sales.
Sec. 5. Minnesota Statutes 1996, section 473.551, is amended by adding a subdivision to read:
Subd. 21. [OWNER.] "Owner" means the individual or individuals acting in concert, or other legal entity, who directly or indirectly owns at least a majority or controlling interest in the baseball team.
Sec. 6. [473.5991] [BASEBALL FACILITY.]
Subdivision 1. [LOCATION; OWNERSHIP; OPERATION.] The commission shall construct a baseball facility that is located within the metropolitan area, owned by the commission, and operated by the baseball team and its owner.
Subd. 2. [SITE SELECTION;
DESIGN; CONSTRUCTION TEAM.] The commission and the
owner, by mutual agreement, must select a site for the baseball facility and
must determine the program elements of the baseball facility, including
capacity, suites, club seats, clubs, and amenities. The commission and the
owner, by mutual agreement, must also
determine the baseball facility design, including
whether or not to include a retractable roof on the facility, and the selection
of the construction team, including the architect and general contractor.
Subd. 3. [CAPITAL REPAIR; IMPROVEMENTS.] The commission is responsible for capital repairs and improvements necessary to maintain the baseball facility. To the extent the costs to maintain the facility exceed the funds in the capital improvement fund, the commission and the owner shall agree on the improvements to be made.
Sec. 7. [473.5992] [DETERMINATIONS REQUIRED BEFORE CONSTRUCTION BONDS ISSUED.]
Subdivision 1. [SCOPE.] The commission shall determine that everything required by this section has been done before it authorizes the issuance of bonds for construction of the baseball facility.
Subd. 2. [30-YEAR USE AGREEMENT; ORGANIZATIONAL DECISIONS.] (a) The commission must execute agreements with the owner to use the commission's facilities for all scheduled regular season and postseason home games for a period of no less than 30 years, and the owner has agreed to pay baseball team revenues to the debt service fund as provided in section 10, subdivision 2. The agreements shall afford to the commission or other public entity, as the commission deems appropriate, the remedies that are deemed necessary and appropriate to provide reasonable assurances that the team and the owner will comply with the agreements. The remedies may include the payment of liquidated damages equivalent to direct and consequential damages incurred by reason of the breach of the agreements and any additional remedies or security arrangements the commission reasonably determines to be effective in accomplishing the purpose of this subdivision. The baseball team and its owner must provide information sufficient to satisfy the commission of the team's and the owner's ability to comply with the terms of the 30-year use agreement.
(b) The commission and the owner must agree to the right of the commission to approve all major organizational decisions, including sale of the ownership interest in the team, or a change in location of the team.
Subd. 3. [REVENUES TO BE SUFFICIENT.] Two independent, professional economic analyses must conclude that the anticipated amount to be deposited in the debt service fund under section 9 is an amount sufficient to pay when due all debt service, plus all administrative, operating, and maintenance expense and the owner must pledge and secure as necessary an amount sufficient to pay when due all debt service on the revenue bonds issued under this act.
Subd. 4. [COMMISSION'S RIGHT TO TITLE OF PROPERTY.] The commission must acquire, or contract to acquire, title to all real property including all easements and other appurtenances needed for the construction and operation of the baseball facility and enter into agreements sufficient in the judgment of the commission to ensure the receipt of funds, at the time and in the amount required, to make any payment upon which the commission's acquisition of title and possession of the real property is conditioned.
Subd. 5. [SUFFICIENT FUNDS FOR CLEARING PROPERTY.] The commission must enter into agreements sufficient in the judgment of the commission to ensure the receipt of funds, at the time and in the amount required, to pay all costs, except as provided in this section, of clearing the real property needed for the construction and operation of the baseball facility of all buildings, railroad tracks, and other structures including, without limitation, all relocation costs including utility relocation costs and all legal costs.
Subd. 6. [NO STRIKES OR LOCKOUTS.] The commission must execute agreements with appropriate labor organizations and construction contractors that provide that no labor strikes or management lockouts will delay construction.
Subd. 7. [GUARANTEED MAXIMUM PRICE.] The commission must execute agreements to provide for the construction of the baseball facility for a guaranteed maximum price and substantial completion date of April 1, 2001, and that include performance bonds in an amount at least equal to 100 percent of the guaranteed maximum price to cover any costs that may be incurred over and above the guaranteed maximum price, including, but not limited to, costs incurred by the commission or loss of revenues resulting from incomplete construction on the substantial completion date.
Subd. 8. [OWNER TO OPERATE
FACILITY.] The commission and the owner must execute
agreements that provide for the operation and maintenance of the baseball
facility. The agreements must provide that:
(1) the owner, in consultation
with the commission, must provide for management of the baseball facility and
may contract with one or more entities to operate part or all of the baseball
facility; and
(2) the owner, in consultation
with the commission, may contract with one or more concessionaires to provide
food and beverages for the baseball facility.
Sec. 8. [473.5993] [DEBT FINANCING.]
Subdivision 1. [PURPOSES.]
The commission may by resolution authorize the issuance
and sale of its taxable revenue bonds in a principal amount that does not exceed
$300,000,000 for the following purposes:
(1) to provide funds for site
assembly and construction of the baseball facility by the commission under this
section, to establish necessary debt service reserves, and to pay issuance costs
and costs of credit enhancement for the bonds, if any;
(2) to refund bonds issued under
this section;
(3) to fund judgments entered by
any court against the commission or against the commission in matters relating
to the commission's functions related to the baseball facility; and
(4) to fund a debt service
reserve, provided that no more than $50,000,000 of the bond proceeds may be used
for this purpose.
Subd. 2. [PROCEDURE.] The bonds shall be sold, issued, and secured in the manner
provided in chapter 475 for bonds payable solely from revenues and the
commission shall have the same powers and duties as a municipality and its
governing body in issuing bonds under that chapter. The bonds may be sold at any
price and at public or private sale as determined by the commission. They shall
be payable solely from revenues described in section 9. The bonds shall not be a
general or moral obligation or debt of the commission, any other political
subdivision of the state, or the state, and shall not be included in the net
debt of any city, county, or other subdivision of the state for the purpose of
any net debt limitation. No election is required.
Subd. 3. [REVENUE
ANTICIPATION CERTIFICATES.] In anticipation of the
revenues of the commission provided for in this act, but subject to any
limitation or prohibition in a bond resolution or indenture, the council may
authorize the issuance, negotiation, and sale, in the form and manner and upon
the terms as it may determine, of revenue anticipation certificates. The
principal amount of the certificates outstanding shall at no time exceed 25
percent of the total amount of the revenues anticipated. The certificates shall
mature not later than three months after the close of the budget year. As much
of the anticipated baseball facility revenues as may be needed for the payment
of the certificates and interest on them shall be paid into a special debt
service fund established for the certificates in the commission's financial
records. If for any reason the anticipated revenues are insufficient, the
certificates and interest shall be paid from the first revenues received,
subject to any limitation or prohibition in a bond resolution or indenture. The
proceeds of the certificates may be used for any purpose for which the
anticipated revenues may be used or for any purpose for which bond proceeds
under subdivision 1 may be used.
Subd. 4. [VALIDITY OF DEBT
ISSUED.] The validity of any bonds issued under this
section and the obligations of the commission related to them, must not be
conditioned upon or impaired by the commission's determinations made under
section 7. For the purposes of issuing bonds, the determinations made by the
commission are conclusive, and the commission is obligated for the security and
payment of the bonds, but only from the sources pledged to them, irrespective of
determinations that may be erroneous, inaccurate, or otherwise mistaken.
Subd. 5. [BROKERAGE FIRM
AGREEMENT.] Before issuing debt under this section, the
commission must enter into an agreement with the brokerage firm to be used in
connection with the issuance and sale of the bonds or revenue anticipation
certificates under this section, guaranteeing that fees and charges payable to
the brokerage firm under the agreement, including any underwriting discounts, do
not exceed fees and charges customarily payable in connection with the issuance
and sale of bonds or revenue anticipation certificates.
Subd. 6. [NO STATE GENERAL
OBLIGATIONS.] Revenue bonds that are issued, sold, and
secured under this act are not an obligation of the state. Bonds issued and sold
by the commission under this act are payable solely from revenues of the
baseball facility. The state shall not assume any obligation or liability for
bonds issued or sold under this act.
Sec. 9. [473.5994] [USE OF BASEBALL TEAM REVENUES.]
By March 1 of 1998 and each
subsequent year, the owner shall determine the revenues of the baseball team for
the previous calendar year. To the extent those revenues exceed the revenues of
the baseball team from the 1996 calendar year, increased by the percentage
increase in the most recent consumer price index for all-urban consumers
published by the department of labor over the index for 1996, the owner must
deposit the excess revenues in the debt service fund, except as provided in
section 10, subdivision 3.
Sec. 10. [473.5995] [COMMISSION FINANCES RELATED TO
BASEBALL STADIUM.]
Subdivision 1. [BUDGET;
COUNCIL REVIEW AND APPROVAL.] (a) The commission shall
prepare a proposed baseball stadium-related budget by August 1 of each year. The
budget shall include the baseball facility revenues and expenditures. The budget
must show the estimated capital improvement fund revenues and expenditures, and
the debt service costs and outstanding debt of the commission related to site
assembly and construction of the baseball facility.
(b) Before August 15 of each
year, the commission shall hold a public hearing on a draft of the proposed
budget after reasonable public notice.
(c) The commission shall approve
or disapprove the budget by October 1 of each year.
(d) Before December 15 of each
year, the commission shall by resolution adopt a final budget and file it with
the metropolitan council before December 20.
Subd. 2. [DEBT SERVICE
FUND.] As provided in section 9, the commission must
establish a debt service fund in which to deposit funds the commission receives
to ensure payment of any debt issued by the metropolitan council under this
act.
Subd. 3. [CAPITAL REPAIR AND
IMPROVEMENT FUND.] The commission must establish a
baseball facility capital repair and improvement account in which to deposit
revenues received from gross revenues of the team not required to be deposited
in the debt service fund, in an amount to be mutually agreed to by the owner and
the commission as sufficient for this purpose. The money in this account may be
used by the commission to make capital repairs to and improvements of the
baseball facility.
Subd. 4. [EXCESS REVENUES TO
TEAM.] Any revenues of the baseball team that are not
required to be paid into the debt service fund under subdivision 2 or the
capital repair and improvement fund under subdivision 3, shall remain with the
baseball team.
Sec. 11. [473.5996] [OPERATION OF BASEBALL FACILITY TO
BE SELF-SUPPORTING.]
(a) The legislature intends that
the admissions, rates, rentals, and other charges imposed in the operation of
the baseball facility permit the baseball facility to be self-supporting in its
construction and operations. No state or local government funds shall be
contributed to the baseball team or the commission for the support of the
baseball facility.
(b) The legislature intends
that, other than agreeing to the use of increased revenues of the baseball team,
the owner is not required to make any contribution to the cost of construction
of the baseball facility.
Sec. 12. [EFFECTIVE DATE.]
Sections 1 to 11 are effective
the day following final enactment."
Renumber the sections in sequence and correct internal
references
Amend the title accordingly
A roll call was requested and properly seconded.
The question was taken on the Rostberg amendment and the
roll was called. There were 75 yeas and 53 nays as follows:
Those who voted in the affirmative were:
Abrams | Finseth | Knight | Marko | Pawlenty | Sykora |
Bettermann | Folliard | Knoblach | McCollum | Peterson | Tomassoni |
Biernat | Goodno | Koppendrayer | McElroy | Rest | Tunheim |
Bishop | Gunther | Koskinen | Milbert | Rhodes | Van Dellen |
Boudreau | Haas | Kraus | Molnau | Rostberg | Weaver |
Bradley | Harder | Kubly | Mulder | Schumacher | Wenzel |
Broecker | Hasskamp | Larsen | Ness | Seagren | Westfall |
Carlson | Hausman | Lieder | Nornes | Slawik | Westrom |
Commers | Huntley | Lindner | Olson, E. | Stanek | Wolf |
Daggett | Jennings | Long | Olson, M. | Stang | Spk. Carruthers |
Delmont | Johnson, R. | Luther | Opatz | Sviggum | |
Dorn | Juhnke | Mahon | Ozment | Swenson, D. | |
Erhardt | Kielkucki | Mares | Paulsen | Swenson, H. | |
Those who voted in the negative were:
Anderson, I. | Farrell | Kahn | Mullery | Reuter | Tingelstad |
Bakk | Garcia | Kalis | Munger | Rifenberg | Tompkins |
Chaudhary | Greenfield | Kelso | Murphy | Rukavina | Trimble |
Clark | Greiling | Krinkie | Orfield | Seifert | Tuma |
Davids | Hilty | Kuisle | Osskopp | Sekhon | Wagenius |
Dehler | Holsten | Leighton | Osthoff | Skare | Wejcman |
Dempsey | Jaros | Macklin | Paymar | Skoglund | Winter |
Entenza | Jefferson | Mariani | Pelowski | Smith | Workman |
Evans | Johnson, A. | McGuire | Pugh | Solberg | |
The motion prevailed and the amendment was adopted.
Winter offered an amendment to H. F. No. 2, the first engrossment, as amended.
Kahn requested a division of the Winter amendment to H. F. No. 2, the first engrossment, as amended.
Kahn further requested that the second portion of the divided Winter amendment to H. F. No. 2, the first engrossment, as amended, be voted on first.
The second portion of the Winter amendment to H. F. No. 2, the first engrossment, as amended, reads as follows:
Page 30, after line 30, insert:
Section 1. Minnesota Statutes 1996, section 349A.10, is amended by adding a subdivision to read:
Subd. 5b. [SPECIAL LOTTERY
GAME.] (a) The lottery shall conduct an instant lottery
game each year with a baseball theme.
(b) The net revenues from the
game conducted under this subdivision, after the deduction of the net revenue to
be paid to the Minnesota environment and natural resources trust fund, must be
credited to the baseball park account created in section 473I.02.
(c) Net revenues for purposes of
this subdivision equal the net revenues from the special lottery game, less any
reduction in the net revenues from other lottery games that result from the
availability of the special games, as estimated by the commissioner of
finance.
Sec. 2. [473I.01] [DEFINITIONS.]
Subdivision 1.
[APPLICATION.] The definitions in sections 473.121,
473.551, and this section apply to this chapter.
Subd. 2. [BASEBALL PARK.] "Baseball park" means the baseball park at which major
league baseball is played.
Sec. 3. [473I.02] [BASEBALL PARK ACCOUNT.]
The baseball park account is
established in the special revenue fund in the state treasury. All money
credited to the baseball park account is appropriated to the commissioner of
finance for purposes of article 3.
Sec. 4. [473I.03] [STADIUM INCOME SURTAX.]
Subdivision 1. [TAX
IMPOSED.] The commission may by resolution impose a tax
on the taxable baseball park income of a qualified employee of a sports
organization that uses the baseball park. The tax equals two percent of taxable
baseball park income for the taxable year.
Subd. 2. [DEFINITIONS.] (a) The definitions in chapter 290 and in this subdivision
apply to this section.
(b) "Taxable baseball park
income" means wages, salaries, or other compensation derived from the
performance of personal services for a sports organization. For both residents
and nonresidents, the amount attributable to performance of personal services
for a sports organization is determined by first subtracting $150,000 from total
compensation for the performance of personal service and then applying the
allocation rules under section 290.17, subdivision 2, paragraph (a), clauses (1)
and (2). The amount may not be less than zero.
(c) A "qualified employee" means
an employee who derives wages, salaries, or other compensation of at least
$150,000 for the performance of personal services from a sports organization for
the taxable year.
(d) A "sports organization"
means any organization that operates a major league baseball franchise. A sports
organization includes a visiting team regardless of whether it has a direct
agreement with the owner or operator of the baseball park.
Subd. 3. [COLLECTION;
DEPOSIT.] The tax imposed by this section must be
collected in the manner provided for individual income taxes imposed under
chapter 290 and in accordance with an agreement between the commission and the
commissioner of revenue. The revenue from the tax must be deposited in the
baseball stadium account in the special revenue fund.
Sec. 5. [473I.04] [ADMISSION TAX; TICKET SURCHARGE.]
The commission may by resolution
impose and maintain an admission tax or ticket surcharge, or both, upon the
granting, issuance, sale, or distribution, by any private or public person,
association, or corporation, of the privilege of admission to activities at the
baseball park. No other tax, surcharge, or governmental imposition, except the
taxes imposed by chapter 297A or under section 473I.06, may be levied by any
other unit of government upon that sale or distribution. If the commission
imposes a ticket surcharge, it must be at least $1 per ticket for the seats
affected. The commission and the owner may by mutual agreement exempt sections
of the baseball park from the ticket surcharge. The admission tax or ticket
surcharge must be stated and charged separately from the sales price so far as
practicable and must be collected by the grantor, issuer, seller, or distributor
from the person admitted and is a debt from that person to the grantor, issuer,
seller, or distributor, and the tax required to be collected is a debt owed by
the grantor, issuer, seller, or distributor to the commission.
The debt is recoverable at law in the same manner as
other debts. Every person who grants, issues, sells, or distributes tickets for
the admissions may be required, as provided in resolutions of the commission to
secure a permit, to file returns, to deposit security for the payment of the
tax, and to pay penalties for nonpayment and interest on late payments, that are
considered necessary or expedient to ensure the prompt and uniform collection of
the tax. Receipts from the admission tax must be used for purposes of the
baseball park. Sec. 6. [473I.05] [SPORTS MEMORABILIA TAX.]
Subdivision 1.
[DEFINITIONS.] (a) The definitions in chapter 297A and
in this subdivision apply to this section.
(b)(1) "Sports memorabilia" or
"sports licensed goods" means items available for sale to the public that relate
to major league baseball, such as:
(i) one-of-a-kind items related
to major league baseball figures, teams, or events;
(ii) major league baseball
sports trading cards;
(iii) major league baseball
sports photographs;
(iv) major league baseball and
individual major league baseball athlete licensed items;
(v) major league baseball
sporting event licensed items; and
(vi) similar items.
(2) It does not include clothing
and wearing apparel, exempt under section 297A.25, subdivision 8.
Subd. 2. [AUTHORITY TO
IMPOSE.] The commission may by resolution impose a tax
at a rate of up to four percent of the gross receipts from the sales at retail
of sports memorabilia in the metropolitan area or their use, if the sale was not
subject to the tax.
Subd. 3. [COLLECTION;
DEPOSIT.] A tax imposed under this section must be
collected in the manner provided for taxes under chapter 297A and in accordance
with an agreement between the commission and the commissioner of revenue. All
revenues, including interest and penalties, derived from the tax must be
deposited in the state treasury and credited to the baseball park account in the
special revenue fund.
Sec. 7. [473I.06] [PARKING TAX.]
Subdivision 1. [TAX
IMPOSED.] The commission may by resolution impose a
parking tax of not less than $1 per vehicle per event at the baseball park. The
commission shall consult with the city about the definition of event parking and
the rate of the tax before imposing or adjusting the tax.
Subd. 2. [AREA OF
APPLICATION.] The tax applies to parking in the baseball
park district designated under section 473I.15 and in any additional area
providing event parking, as mutually agreed by the city and the commission,
except for parking at a parking meter.
Subd. 3. [COLLECTION.] The tax imposed under this section must be reported and
paid to the commissioner of revenue with the taxes imposed in chapter 297A and
in accordance with an agreement between the commission and the commissioner of
revenue. It is subject to the same interest, penalty, and other provisions
provided for sales and use taxes under chapters 289A and 297A. The commissioner
has the same powers to assess and collect the tax that are given the
commissioner in chapters 270, 289A, and 297A to assess and collect sales and use
tax.
Subd. 4. [DISPOSITION OF
PROCEEDS.] All revenues, including interest and
penalties, derived from the tax must be deposited in the state treasury. An
amount that equals the direct department costs necessary to administer, audit,
and collect this tax must be credited to the general fund. The balance must be
credited to the baseball park account in the special revenue fund.
Sec. 8. [EFFECTIVE DATE.]
This article is effective the
day following final enactment."
Renumber the articles in sequence and correct internal
references
Amend the title accordingly
A roll call was requested and properly seconded.
The question was taken on the second portion of the
Winter amendment and the roll was called. There were 4 yeas and 125 nays as
follows:
Those who voted in the affirmative were:
Huntley | Munger | Rukavina | Tomassoni |
Those who voted in the negative were:
Abrams | Erhardt | Juhnke | Mares | Pawlenty | Sviggum |
Anderson, I. | Evans | Kahn | Mariani | Paymar | Swenson, D. |
Bakk | Farrell | Kalis | Marko | Pelowski | Swenson, H. |
Bettermann | Finseth | Kelso | McCollum | Peterson | Sykora |
Biernat | Folliard | Kielkucki | McElroy | Pugh | Tingelstad |
Bishop | Garcia | Knight | McGuire | Rest | Tompkins |
Boudreau | Goodno | Knoblach | Milbert | Reuter | Trimble |
Bradley | Greenfield | Koppendrayer | Molnau | Rhodes | Tuma |
Broecker | Greiling | Koskinen | Mulder | Rifenberg | Tunheim |
Carlson | Gunther | Kraus | Mullery | Rostberg | Van Dellen |
Chaudhary | Haas | Krinkie | Murphy | Schumacher | Wagenius |
Clark | Harder | Kubly | Ness | Seagren | Weaver |
Commers | Hasskamp | Kuisle | Nornes | Seifert | Wejcman |
Daggett | Hausman | Larsen | Olson, E. | Sekhon | Wenzel |
Davids | Hilty | Leighton | Olson, M. | Skare | Westfall |
Dawkins | Holsten | Lieder | Opatz | Skoglund | Westrom |
Dehler | Jaros | Lindner | Orfield | Slawik | Winter |
Delmont | Jefferson | Long | Osskopp | Smith | Wolf |
Dempsey | Jennings | Luther | Osthoff | Solberg | Workman |
Dorn | Johnson, A. | Macklin | Ozment | Stanek | Spk. Carruthers |
Entenza | Johnson, R. | Mahon | Paulsen | Stang | |
The motion did not prevail and the second portion of the Winter amendment was not adopted.
The first portion of the Winter amendment to H. F. No. 2, the first engrossment, as amended, reads as follows:
Page 30, after line 30, insert:
Section 1. [PURPOSE.]
The legislature determines that:
(1) the Minnesota Twins are an important asset to the state of Minnesota, both in terms of the economy and the quality of life;
(2) ensuring that the Minnesota
Twins franchise remains in Minnesota is an important public purpose;
(3) providing community
ownership of the Minnesota Twins ensures that this important asset will remain
in the state;
(4) providing community
ownership of the Minnesota Twins develops trust among fans, taxpayers, and the
team, so that the team enjoys popular support; and
(5) providing community
ownership of the Minnesota Twins helps ensure that the financial benefits of any
new stadium will accrue to those who pay its costs.
Sec. 2. [ACQUISITION.]
Subdivision 1. [AUTHORITY.]
(a) The governor and the metropolitan sports facilities
commission shall attempt to effect a transfer of the Minnesota Twins to
community ownership.
(b) The governor may work with
the current owner to establish a community foundation or a supporting
organization to a community foundation, to which the current Twins owner would
donate Minnesota Twins stock.
(c) The governor may work with
the owner to develop a plan to offer to the general public shares of the
Minnesota Twins. The governor may solicit promises to buy stock in the Minnesota
Twins.
(d) The governor may seek and
accept gifts to be used to acquire the team.
(e) The governor may use or
pledge revenues in the baseball park account to accomplish the purpose of this
article.
Subd. 2. [CONDITIONS.] (a) If the community ownership plan under subdivision 1
includes sale of stock to the public, money in the baseball park account may be
spent for purposes of this article only if the following conditions are met:
(1) The individual or entity
that manages the team must own no more than 25 percent of the shares of the
team;
(2) Other than the managing
individual or entity, no individual or entity may own more than five percent of
the total shares of the team, and at least 50 percent of the ownership of the
team must be dispersed in a manner such that no person or entity owns more than
one percent of the shares of the team;
(3) The bylaws or other
governing documents must provide that the team may not move outside of the state
without approval of 80 percent of the shareholders. Notwithstanding any law to
the contrary, the 80 percent approval requirement may not be amended by the
shareholders or any other means; and
(4) The commissioner of finance
must determine that subscriptions for purchases of stock by the public, along
with revenue in the baseball park account, will be sufficient to acquire 75
percent of the shares of stock in the team, along with other costs associated
with this acquisition.
For purposes of the percentage
restrictions in clause (2), the shares owned by an individual or entity include
the shares owned by a related taxpayer as defined in section 1313(c) of the
Internal Revenue Code of 1986.
(b) Money in the baseball park
account may be spent to facilitate transfer of 75 percent of the ownership of
the team to a public or private nonprofit entity or to provide support for the
operations of the team after this transfer, only if a binding agreement is
entered into between the metropolitan sports facilities commission and the
entity ensuring that the team cannot move outside of the state unless
specifically authorized by law.
Sec. 3. [ PROHIBITION.]
No state agency may expend any money from any state fund
for the purpose of defraying operating losses of the Minnesota Twins.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 and 2 are effective
the day following final enactment."
Renumber the articles in sequence and correct internal
references
Amend the title accordingly
A roll call was requested and properly seconded.
The question was taken on the first portion of the
Winter amendment and the roll was called. There were 25 yeas and 104 nays as
follows:
Those who voted in the affirmative were:
Bakk | Hilty | Luther | Osthoff | Trimble | Spk. Carruthers |
Clark | Huntley | Mariani | Rukavina | Tunheim | |
Dawkins | Jaros | McCollum | Skoglund | Wejcman | |
Dorn | Jefferson | Mullery | Solberg | Winter | |
Hausman | Kahn | Munger | Tomassoni | ||
Those who voted in the negative were:
Abrams | Evans | Kelso | Marko | Pelowski | Swenson, D. |
Anderson, I. | Farrell | Kielkucki | McElroy | Peterson | Swenson, H. |
Bettermann | Finseth | Knight | McGuire | Pugh | Sykora |
Biernat | Folliard | Knoblach | Milbert | Rest | Tingelstad |
Bishop | Garcia | Koppendrayer | Molnau | Reuter | Tompkins |
Boudreau | Goodno | Koskinen | Mulder | Rhodes | Tuma |
Bradley | Greenfield | Kraus | Murphy | Rifenberg | Van Dellen |
Broecker | Greiling | Krinkie | Ness | Rostberg | Wagenius |
Carlson | Gunther | Kubly | Nornes | Schumacher | Weaver |
Chaudhary | Haas | Kuisle | Olson, E. | Seagren | Wenzel |
Commers | Harder | Larsen | Olson, M. | Seifert | Westfall |
Daggett | Hasskamp | Leighton | Opatz | Sekhon | Westrom |
Davids | Holsten | Lieder | Orfield | Skare | Wolf |
Dehler | Jennings | Lindner | Osskopp | Slawik | Workman |
Delmont | Johnson, A. | Long | Ozment | Smith | |
Dempsey | Johnson, R. | Macklin | Paulsen | Stanek | |
Entenza | Juhnke | Mahon | Pawlenty | Stang | |
Erhardt | Kalis | Mares | Paymar | Sviggum | |
The motion did not prevail and the first portion of the Winter amendment was not adopted.
Jennings moved to amend H. F. No. 2, the first engrossment, as amended, as follows:
Reinstate articles 1 and 2 as amended prior to deletion by the Rest amendment, and further amend article 1 as follows:
Page 6, line 35, delete everything after the period
Page 6, delete line 36
Bakk | Greenfield | Juhnke | Leighton | Orfield | Tomassoni |
Biernat | Hausman | Kahn | Long | Osthoff | Wagenius |
Chaudhary | Hilty | Knoblach | Marko | Rukavina | Wejcman |
Dawkins | Holsten | Koskinen | McCollum | Sekhon | Workman |
Dorn | Jaros | Kraus | Mullery | Skoglund | |
Goodno | Jefferson | Larsen | Olson, E. | Slawik | |
Those who voted in the negative were:
Abrams | Evans | Kielkucki | Molnau | Rest | Sykora |
Anderson, I. | Farrell | Knight | Mulder | Reuter | Tingelstad |
Bettermann | Finseth | Koppendrayer | Munger | Rhodes | Tompkins |
Bishop | Folliard | Krinkie | Murphy | Rifenberg | Trimble |
Boudreau | Garcia | Kubly | Ness | Rostberg | Tuma |
Bradley | Greiling | Kuisle | Nornes | Schumacher | Tunheim |
Broecker | Gunther | Lieder | Olson, M. | Seagren | Van Dellen |
Carlson | Haas | Lindner | Opatz | Seifert | Weaver |
Clark | Harder | Luther | Osskopp | Skare | Wenzel |
Commers | Hasskamp | Macklin | Ozment | Smith | Westfall |
Daggett | Huntley | Mahon | Paulsen | Solberg | Westrom |
Davids | Jennings | Mares | Pawlenty | Stanek | Winter |
Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5982 |
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Delmont | Johnson, A. | Mariani | Paymar | Stang | Wolf |
Dempsey | Johnson, R. | McElroy | Pelowski | Sviggum | |
Entenza | Kalis | McGuire | Peterson | Swenson, D. | |
Erhardt | Kelso | Milbert | Pugh | Swenson, H. | |
The motion did not prevail and the amendment to the amendment was not adopted.
The question recurred on the Jennings amendment and the roll was called. There were 19 yeas and 110 nays as follows:
Those who voted in the affirmative were:
Bishop | Goodno | McCollum | Rest | Tomassoni | Spk. Carruthers |
Boudreau | Hausman | McElroy | Rhodes | Wolf | |
Daggett | Jennings | Milbert | Solberg | ||
Dorn | Mares | Olson, E. | Sykora | ||
Those who voted in the negative were:
Abrams | Farrell | Kalis | Mariani | Pelowski | Swenson, H. |
Anderson, I. | Finseth | Kelso | Marko | Peterson | Tingelstad |
Bakk | Folliard | Kielkucki | McGuire | Pugh | Tompkins |
Bettermann | Garcia | Knight | Molnau | Reuter | Trimble |
Biernat | Greenfield | Knoblach | Mulder | Rifenberg | Tuma |
Bradley | Greiling | Koppendrayer | Mullery | Rostberg | Tunheim |
Broecker | Gunther | Koskinen | Munger | Rukavina | Van Dellen |
Carlson | Haas | Kraus | Murphy | Schumacher | Wagenius |
Chaudhary | Harder | Krinkie | Ness | Seagren | Weaver |
Clark | Hasskamp | Kubly | Nornes | Seifert | Wejcman |
Commers | Hilty | Kuisle | Olson, M. | Sekhon | Wenzel |
Davids | Holsten | Larsen | Opatz | Skare | Westfall |
Dawkins | Huntley | Leighton | Orfield | Skoglund | Westrom |
Dehler | Jaros | Lieder | Osskopp | Slawik | Winter |
Delmont | Jefferson | Lindner | Osthoff | Smith | Workman |
Dempsey | Johnson, A. | Long | Ozment | Stanek | |
Entenza | Johnson, R. | Luther | Paulsen | Stang | |
Erhardt | Juhnke | Macklin | Pawlenty | Sviggum | |
Evans | Kahn | Mahon | Paymar | Swenson, D. | |
The motion did not prevail and the amendment was not adopted.
Dehler and Carlson moved to amend H. F. No. 2, the first engrossment, as amended, as follows:
Page 4, after line 35 of the Rostberg amendment, insert:
"Subd. 9. [KNOTHOLE DAY.] The commission must obtain assurance from the owner that knothole day tickets will be available for every home game. A knothole day ticket must permit one free admission of a person age 14 or under when accompanied by an adult person with a paid admission."
Renumber the sections in sequence and correct internal references
Amend the title accordingly
Bishop | Goodno | Long | Olson, E. | Swenson, D. | Westfall |
Boudreau | Hausman | Mares | Ozment | Sykora | Winter |
Bradley | Jefferson | McCollum | Rest | Tomassoni | Wolf |
Daggett | Jennings | McElroy | Rostberg | Tunheim | Spk. Carruthers |
Dorn | Koppendrayer | Milbert | Solberg | Wenzel | |
Those who voted in the negative were:
Abrams | Evans | Juhnke | Macklin | Paulsen | Smith |
Anderson, I. | Farrell | Kahn | Mahon | Pawlenty | Stanek |
Bakk | Finseth | Kalis | Mariani | Paymar | Stang |
Bettermann | Folliard | Kelso | Marko | Pelowski | Sviggum |
Biernat | Garcia | Kielkucki | McGuire | Peterson | Swenson, H. |
Broecker | Greenfield | Knight | Molnau | Pugh | Tingelstad |
Carlson | Greiling | Knoblach | Mulder | Reuter | Tompkins |
Chaudhary | Gunther | Koskinen | Mullery | Rhodes | Trimble |
Clark | Haas | Kraus | Munger | Rifenberg | Tuma |
Commers | Harder | Krinkie | Murphy | Rukavina | Van Dellen |
Davids | Hasskamp | Kubly | Ness | Schumacher | Wagenius |
Dawkins | Hilty | Kuisle | Nornes | Seagren | Weaver |
Dehler | Holsten | Larsen | Olson, M. | Seifert | Wejcman |
Delmont | Huntley | Leighton | Opatz | Sekhon | Westrom |
Dempsey | Jaros | Lieder | Orfield | Skare | Workman |
Entenza | Johnson, A. | Lindner | Osskopp | Skoglund | |
Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5984 |
|||||
Erhardt | Johnson, R. | Luther | Osthoff | Slawik | |
The bill was not passed, as amended.
H. F. No. 9 was read for the second time.
The following House Files were introduced:
Clark, Mariani and Wejcman introduced:
H. F. No. 27, A bill for an act relating to the state lottery; proposing an amendment to the Minnesota Constitution to dedicate ten percent of the net proceeds of the state lottery to an affordable housing and home ownership fund.
The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.
Greiling and McGuire introduced:
H. F. No. 28, A bill for an act relating to sports; providing for a process to construct a major league baseball facility without the use of public funds; authorizing issuance of bonds and other debt by the metropolitan council; amending Minnesota Statutes 1996, sections 473.551, subdivision 1, and by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 473.
The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.
Workman, McCollum, Jennings, Hilty and Rukavina introduced:
H. F. No. 29, A bill for an act relating to public administration; permitting the state to purchase the Minnesota Twins; appropriating money.
The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.
Luther, Carruthers, Sykora, Haas and Johnson, R., introduced:
H. F. No. 30, A bill for an act relating to family and early childhood education; changing the allocation formula for basic sliding fee child care assistance; amending Minnesota Statutes 1996, section 119B.03, subdivision 7, as amended.
The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.
Hausman, Kahn, Kelso, Jaros and Carlson introduced:
H. F. No. 31, A bill for an act relating to public administration; authorizing various governmental entities to use the power of eminent domain to acquire the Minnesota Twins; appropriating money.
The bill was read for the first time and referred to the
Committee on Rules and Legislative Administration.
Olson, M.; Tuma and Anderson, B., introduced:
H. F. No. 32, A bill for an act relating to education;
modifying effective date for certain facility construction and remodeling;
amending Laws 1997, chapter 231, article 16, section 31.
The bill was read for the first time and referred to the
Committee on Rules and Legislative Administration.
Huntley and Greiling introduced:
H. F. No. 33, A bill for an act proposing an amendment
to the Minnesota Constitution, article XIII, section 5; requiring the use of
lottery proceeds to fund a tuition scholarship program for state residents who
attend a Minnesota college or university or a professional baseball park, as
provided by the people.
The bill was read for the first time and referred to the
Committee on Rules and Legislative Administration.
Mullery introduced:
H. F. No. 34, A bill for an act relating to the state
lottery; proposing an amendment to the Minnesota Constitution to dedicate 40
percent of the net proceeds of the state lottery to a sports, recreation, and
arts fund; authorizing the imposition of taxes and fees to finance a baseball
stadium; authorizing the metropolitan stadium commission to enter into
agreements for the financing of a baseball stadium; establishing a baseball
stadium account in the state treasury; authorizing the commission to issue
revenue bonds for the stadium; appropriating money; amending Minnesota Statutes
1996, sections 349A.10, subdivision 5; and 473.556, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapter 473.
The bill was read for the first time and referred to the
Committee on Rules and Legislative Administration.
Kuisle; Olson, M.; Rifenberg; Molnau and Westrom
introduced:
H. F. No. 35, A bill for an act relating to education;
repealing the designation of the construction, remodeling, or improvement of an
educational facility as a project under Minnesota Statutes, section 177.42;
repealing Minnesota Statutes 1997 Supplement, section 121.15, subdivision 1a.
The bill was read for the first time and referred to the
Committee on Rules and Legislative Administration.
The following message was received from the Senate:
Mr. Speaker:
I hereby announce the passage by the Senate of the
following Senate File, herewith transmitted:
S. F. No. 22.
Patrick E. Flahaven, Secretary of the Senate
S. F. No. 22, A resolution memorializing Congress to
support legislative initiatives to discourage use of public resources for
movement of professional sports franchises and to repeal antitrust exemptions
for professional sports.
The bill was read for the first time.
Pursuant to Article IV, Section 19, of the Constitution
of the state of Minnesota, Kahn moved that the rule therein be suspended and an
urgency be declared so that S. F. No. 22 be given its second and third readings
and be placed upon its final passage. The motion prevailed.
Kahn moved that the rules of the House be so far
suspended that S. F. No. 22 be given its second and third readings and be placed
upon its final passage. The motion prevailed.
S. F. No. 22 was read for the second time.
Olson, M., moved to amend S. F. No. 22 as follows:
Page 2, line 12, after the semicolon, insert:
"(4) establish a salary cap for players of professional
sports franchises;
(5) adopt a revenue sharing policy for professional
sports franchises;"
Page 2, line 13, delete "(4)" and insert "(6)"
The motion did not prevail and the amendment was not
adopted.
S. F. No. 22 was read for the third time.
SESSION SINE DIE
Krinkie moved that the House adjourn sine die for the
1997 Third Special Session.
A roll call was requested and properly seconded.
Abrams moved that when the House adjourns today it
adjourn until 9:00 a.m., Thursday, November 13, 1997.
A roll call was requested and properly seconded.
The question was taken on the Abrams motion and the roll
was called. There were 83 yeas and 45 nays as follows:
Those who voted in the affirmative were:
FIRST READING OF SENATE BILLS
Abrams | Erhardt | Kelso | Molnau | Rhodes | Sykora |
Bettermann | Folliard | Knoblach | Mullery | Rostberg | Tingelstad |
Bishop | Garcia | Koppendrayer | Munger | Rukavina | Tomassoni |
Boudreau | Goodno | Koskinen | Ness | Schumacher | Tompkins |
Bradley | Gunther | Kubly | Nornes | Seagren | Tuma |
Broecker | Harder | Larsen | Olson, E. | Sekhon | Tunheim |
Carlson | Hausman | Leighton | Olson, M. | Skoglund | Van Dellen |
Daggett | Hilty | Lieder | Opatz | Slawik | Weaver |
Davids | Holsten | Long | Orfield | Solberg | Wenzel |
Dawkins | Huntley | Luther | Paulsen | Stanek | Westrom |
Delmont | Jefferson | Mahon | Pawlenty | Stang | Winter |
Dempsey | Jennings | Mares | Pelowski | Sviggum | Wolf |
Dorn | Juhnke | Marko | Peterson | Swenson, D. | Spk. Carruthers |
Entenza | Kahn | McElroy | Rest | Swenson, H. | |
Those who voted in the negative were:
Anderson, I. | Farrell | Johnson, R. | Macklin | Ozment | Trimble |
Bakk | Finseth | Kalis | Mariani | Paymar | Wagenius |
Biernat | Greenfield | Kielkucki | McGuire | Pugh | Wejcman |
Chaudhary | Greiling | Knight | Milbert | Reuter | Westfall |
Clark | Haas | Kraus | Mulder | Rifenberg | Workman |
Commers | Hasskamp | Krinkie | Murphy | Seifert | |
Dehler | Jaros | Kuisle | Osskopp | Skare | |
Evans | Johnson, A. | Lindner | Osthoff | Smith | |
The motion prevailed.
S. F. No. 22, A resolution memorializing Congress to support legislative initiatives to discourage use of public resources for movement of professional sports franchises and to repeal antitrust exemptions for professional sports.
The bill was placed upon its final passage.
The question was taken on the passage of the bill and the roll was called. There were 121 yeas and 3 nays as follows:
Those who voted in the affirmative were:
Abrams | Finseth | Kalis | McCollum | Pugh | Sykora |
Anderson, I. | Folliard | Kelso | McElroy | Rest | Tingelstad |
Bakk | Garcia | Kielkucki | McGuire | Reuter | Tomassoni |
Bettermann | Goodno | Knoblach | Molnau | Rhodes | Tompkins |
Biernat | Greenfield | Koppendrayer | Mulder | Rifenberg | Tuma |
Bishop | Greiling | Koskinen | Mullery | Rostberg | Tunheim |
Boudreau | Gunther | Kraus | Munger | Rukavina | Van Dellen |
Bradley | Haas | Krinkie | Murphy | Schumacher | Wagenius |
Broecker | Harder | Kubly | Ness | Seagren | Weaver |
Carlson | Hasskamp | Kuisle | Nornes | Seifert | Wejcman |
Chaudhary | Hausman | Larsen | Olson, E. | Sekhon | Wenzel |
Clark | Hilty | Leighton | Olson, M. | Skare | Westfall |
Daggett | Holsten | Lieder | Opatz | Skoglund | Westrom |
Dawkins | Huntley | Lindner | Orfield | Slawik | Winter |
Dehler | Jaros | Long | Osskopp | Smith | Workman |
Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5988 |
|||||
Delmont | Jefferson | Luther | Ozment | Solberg | Spk. Carruthers |
Dempsey | Jennings | Macklin | Paulsen | Stanek | |
Dorn | Johnson, A. | Mahon | Pawlenty | Stang | |
Entenza | Johnson, R. | Mares | Paymar | Sviggum | |
Erhardt | Juhnke | Mariani | Pelowski | Swenson, D. | |
Evans | Kahn | Marko | Peterson | Swenson, H. | |
Those who voted in the negative were:
Davids | Knight | Wolf |
The bill was passed and its title agreed to.
There being no objection, the order of business reverted to Messages from the Senate.
The following messages were received from the Senate:
Mr. Speaker:
I hereby announce the adoption by the Senate of the following Senate Concurrent Resolution, herewith transmitted:
Senate Concurrent Resolution No. 1, A senate concurrent resolution relating to adjournment for more than three days.
Patrick E. Flahaven, Secretary of the Senate
Winter moved that the rules be so far suspended that Senate Concurrent Resolution No. 1 be now considered and be placed upon its adoption. The motion prevailed.
A Senate concurrent resolution relating to adjournment for more than three days.
Be It Resolved by the Senate, the House of Representatives concurring, that upon adjournment on October 28, 1997, the Senate and House of Representatives may each adjourn for more than three days.
Winter moved that Senate Concurrent Resolution No. 1 be now adopted. The motion prevailed and Senate Concurrent Resolution No. 1 was adopted.
Mr. Speaker:
I hereby announce the passage by the Senate of the following Senate File, herewith transmitted:
S. F. No. 18.
Patrick E. Flahaven, Secretary of the Senate
S. F. No. 18, A bill for an act relating to human services; modifying the calculation of food stamp benefits for certain noncitizen families; amending Laws 1997, chapter 85, article 1, section 7, subdivision 2, as amended; repealing Minnesota Statutes 1997 Supplement, section 256D.057.
The bill was read for the first time.
Pursuant to Article IV, Section 19, of the Constitution of the state of Minnesota, Wejcman moved that the rule therein be suspended and an urgency be declared so that S. F. No. 18 be given its second and third readings and be placed upon its final passage. The motion prevailed.
Wejcman moved that the rules of the House be so far suspended that S. F. No. 18 be given its second and third readings and be placed upon its final passage. The motion prevailed.
S. F. No. 18 was read for the second time.
S. F. No. 18, A bill for an act relating to human services; modifying the calculation of food stamp benefits for certain noncitizen families; amending Laws 1997, chapter 85, article 1, section 7, subdivision 2, as amended; repealing Minnesota Statutes 1997 Supplement, section 256D.057.
The bill was read for the third time and placed upon its final passage.
The question was taken on the passage of the bill and the roll was called. There were 129 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Abrams | Evans | Kahn | Marko | Pelowski | Swenson, H. |
Anderson, I. | Farrell | Kalis | McCollum | Peterson | Sykora |
Bakk | Finseth | Kelso | McElroy | Pugh | Tingelstad |
Bettermann | Folliard | Kielkucki | McGuire | Rest | Tomassoni |
Biernat | Garcia | Knight | Milbert | Reuter | Tompkins |
Bishop | Goodno | Knoblach | Molnau | Rhodes | Trimble |
Boudreau | Greenfield | Koppendrayer | Mulder | Rifenberg | Tuma |
Bradley | Greiling | Koskinen | Mullery | Rostberg | Tunheim |
Broecker | Gunther | Kraus | Munger | Rukavina | Van Dellen |
Carlson | Haas | Krinkie | Murphy | Schumacher | Wagenius |
Chaudhary | Harder | Kubly | Ness | Seagren | Weaver |
Clark | Hasskamp | Kuisle | Nornes | Seifert | Wejcman |
Commers | Hausman | Larsen | Olson, E. | Sekhon | Wenzel |
Daggett | Hilty | Leighton | Olson, M. | Skare | Westfall |
Davids | Holsten | Lieder | Opatz | Skoglund | Westrom |
Dawkins | Huntley | Lindner | Orfield | Slawik | Winter |
Dehler | Jaros | Long | Osskopp | Smith | Wolf |
Delmont | Jefferson | Luther | Osthoff | Solberg | Workman |
Dempsey | Jennings | Macklin | Ozment | Stanek | Spk. Carruthers |
Dorn | Johnson, A. | Mahon | Paulsen | Stang | |
Entenza | Johnson, R. | Mares | Pawlenty | Sviggum | |
Erhardt | Juhnke | Mariani | Paymar | Swenson, D. | |
Abrams | Erhardt | Johnson, R. | Mares | Pelowski | Swenson, D. |
Anderson, I. | Evans | Juhnke | Mariani | Peterson | Swenson, H. |
Bakk | Farrell | Kahn | Marko | Pugh | Sykora |
Bettermann | Finseth | Kalis | McCollum | Rest | Tingelstad |
Biernat | Folliard | Kelso | McElroy | Reuter | Tomassoni |
Bishop | Garcia | Kielkucki | McGuire | Rhodes | Tompkins |
Boudreau | Goodno | Knight | Milbert | Rifenberg | Trimble |
Bradley | Greenfield | Knoblach | Molnau | Rostberg | Tuma |
Broecker | Greiling | Koppendrayer | Mulder | Rukavina | Tunheim |
Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5991 |
|||||
Carlson | Gunther | Koskinen | Munger | Schumacher | Van Dellen |
Chaudhary | Haas | Kraus | Murphy | Seagren | Wagenius |
Clark | Harder | Kubly | Ness | Seifert | Weaver |
Commers | Hasskamp | Kuisle | Nornes | Sekhon | Wejcman |
Daggett | Hausman | Larsen | Olson, E. | Skare | Wenzel |
Davids | Hilty | Leighton | Olson, M. | Skoglund | Westfall |
Dawkins | Holsten | Lieder | Opatz | Slawik | Westrom |
Dehler | Huntley | Lindner | Osskopp | Smith | Winter |
Delmont | Jaros | Long | Ozment | Solberg | Wolf |
Dempsey | Jefferson | Luther | Paulsen | Stanek | Workman |
Dorn | Jennings | Macklin | Pawlenty | Stang | Spk. Carruthers |
Entenza | Johnson, A. | Mahon | Paymar | Sviggum | |
Those who voted in the negative were:
Osthoff
The bill was passed and its title agreed to.
There being no objection, the order of business reverted to Messages from the Senate.
The following message was received from the Senate:
Mr. Speaker:
I hereby announce the passage by the Senate of the following Senate File, herewith transmitted:
S. F. No. 12.
Patrick E. Flahaven, Secretary of the Senate
S. F. No. 12, A bill for an act relating to legislative enactments; providing for the correction of miscellaneous oversights, inconsistencies, ambiguities, unintended results, and technical errors of a noncontroversial nature; amending Minnesota Statutes 1996, section 256B.0627, subdivision 1; Minnesota Statutes 1997 Supplement, sections 80A.04, subdivision 5; 115.55, subdivision 6; 144D.01, subdivision 4; 245B.07, subdivisions 5 and 9; 403.02, subdivision 2; 524.3-1201; and 626.556, subdivision 10f; Laws 1997, chapter 143, section 21; chapter 200, article 1, section 1; chapter 200, article 1, section 5, subdivision 1; chapter 200, section 5, subdivision 4, as amended; chapter 203, article 3, section 18; chapter 203, article 3, section 19; chapter 231, article 1, section 16, as amended; and chapter 250, section 18; Laws 1997, First Special Session chapter 4, article 1, section 64.
Abrams | Erhardt | Johnson, R. | McCollum | Peterson | Swenson, H. |
Anderson, I. | Evans | Juhnke | McElroy | Pugh | Sykora |
Bakk | Farrell | Kahn | McGuire | Rest | Tingelstad |
Bettermann | Finseth | Kalis | Milbert | Reuter | Tomassoni |
Biernat | Folliard | Kelso | Molnau | Rhodes | Tompkins |
Bishop | Garcia | Koppendrayer | Mulder | Rifenberg | Trimble |
Boudreau | Goodno | Koskinen | Mullery | Rostberg | Tuma |
Bradley | Greenfield | Kraus | Munger | Rukavina | Tunheim |
Broecker | Greiling | Kubly | Murphy | Schumacher | Van Dellen |
Carlson | Gunther | Kuisle | Ness | Seagren | Wagenius |
Chaudhary | Haas | Larsen | Nornes | Seifert | Weaver |
Clark | Harder | Leighton | Olson, E. | Sekhon | Wejcman |
Commers | Hasskamp | Lieder | Olson, M. | Skare | Wenzel |
Daggett | Hausman | Lindner | Opatz | Skoglund | Westfall |
Davids | Hilty | Long | Orfield | Slawik | Westrom |
Dawkins | Holsten | Luther | Osthoff | Smith | Winter |
Dehler | Huntley | Macklin | Ozment | Solberg | Wolf |
Delmont | Jaros | Mahon | Paulsen | Stanek | Spk. Carruthers |
Dempsey | Jefferson | Mares | Pawlenty | Stang | |
Dorn | Jennings | Mariani | Paymar | Sviggum | |
Entenza | Johnson, A. | Marko | Pelowski | Swenson, D. | |
Kielkucki | Knight | Knoblach | Krinkie | Osskopp | Workman |
The bill was passed and its title agreed to.
Winter moved that the House adjourn.
A roll call was requested and properly seconded.
The question was taken on the Winter motion and the roll was called. There were 75 yeas and 53 nays as follows:
Those who voted in the affirmative were:
Abrams | Folliard | Johnson, R. | Macklin | Osthoff | Smith |
Anderson, I. | Garcia | Juhnke | Mahon | Ozment | Solberg |
Bakk | Greenfield | Kahn | Mariani | Paymar | Stanek |
Biernat | Greiling | Kalis | Marko | Pelowski | Tomassoni |
Carlson | Hasskamp | Kelso | McCollum | Peterson | Trimble |
Chaudhary | Hausman | Koskinen | McGuire | Pugh | Wagenius |
Clark | Hilty | Kraus | Milbert | Rest | Wejcman |
Dawkins | Holsten | Krinkie | Mullery | Rukavina | Wenzel |
Delmont | Huntley | Kubly | Munger | Schumacher | Winter |
Dorn | Jaros | Leighton | Murphy | Sekhon | Spk. Carruthers |
Entenza | Jefferson | Lieder | Olson, E. | Skare | |
Evans | Jennings | Long | Opatz | Skoglund | |
Farrell | Johnson, A. | Luther | Orfield | Slawik | |
Those who voted in the negative were:
Bettermann | Dempsey | Knoblach | Ness | Rostberg | Tompkins |
Bishop | Erhardt | Koppendrayer | Nornes | Seagren | Tunheim |
Boudreau | Finseth | Kuisle | Olson, M. | Seifert | Van Dellen |
Bradley | Goodno | Larsen | Osskopp | Stang | Weaver |
Broecker | Gunther | Lindner | Paulsen | Sviggum | Westfall |
Commers | Haas | Mares | Pawlenty | Swenson, D. | Westrom |
Daggett | Harder | McElroy | Reuter | Swenson, H. | Wolf |
Davids | Kielkucki | Molnau | Rhodes | Sykora | Workman |
Dehler | Knight | Mulder | Rifenberg | Tingelstad | |
The motion prevailed, and the Speaker declared the House stands adjourned until 9:00 a.m., Thursday, November 13, 1997.
Edward A. Burdick, Chief Clerk, House of Representatives