Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5935

STATE OF MINNESOTA

Journal of the House

THIRD SPECIAL SESSION 1997

__________________

SECOND DAY

Saint Paul, Minnesota, Tuesday, October 28, 1997

 

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.


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Winter moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by the Speaker.

REPORTS OF STANDING COMMITTEES

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:

"ARTICLE 1

BASEBALL PARK CONSTRUCTION

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 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.

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.


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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:

(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

(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 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.

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.


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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.


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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


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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


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(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.


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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.


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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.


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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.

ARTICLE 2

BASEBALL PARK SPECIAL TAXES

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


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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 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.

Sec. 3. Minnesota Statutes 1996, section 297A.135, subdivision 3, is amended to read:

Subd. 3. [ADMINISTRATION.] The 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.

Sec. 4. Minnesota Statutes 1996, section 297A.135, subdivision 4, is amended to read:

Subd. 4. [EXEMPTION.] The 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.

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.


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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


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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.


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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.


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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.

ARTICLE 3

CONSTITUTIONAL AMENDMENTS

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 . . . . . . . ."

ARTICLE 4

GOVERNANCE

Section 1. Minnesota Statutes 1996, section 473.553, subdivision 2, is amended to read:

Subd. 2. [MEMBERSHIP.] The commission shall consist of 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.


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(a) Six voting members shall be appointed by the city council of the city in which the 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.

(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 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.

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 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.

Sec. 4. Minnesota Statutes 1996, section 473.553, subdivision 5, is amended to read:

Subd. 5. [TERMS.] The terms of 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.

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


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5951

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.

SECOND READING OF HOUSE BILLS

H. F. No. 2 was read for the second time.

SUSPENSION OF RULES

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


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5952

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:

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.


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Jennings moved to amend H. F. No. 2, the first engrossment, as amended, as follows:

Delete everything after the enacting clause and insert:

"ARTICLE 1

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.


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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


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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.


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(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.


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(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


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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.


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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.


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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.

ARTICLE 2

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, 24 29 mills on each such cigarette; and

(2) on cigarettes weighing more than three pounds per thousand, 48 58 mills on each such cigarette.

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 35 42 percent of the wholesale sales price of the tobacco products. The tax is imposed at the time the distributor:

(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.


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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 35 42 percent of the cost to the consumer of the tobacco products.

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 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.

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 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.

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

(4) the balance of the revenues derived from taxes, penalties, and interest (under this chapter) and from license fees and miscellaneous sources of revenue shall be credited to the general fund.


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Sec. 10. Minnesota Statutes 1997 Supplement, section 297F.10, subdivision 2, is amended to read:

Subd. 2. [TAX AND USE TAX ON TOBACCO PRODUCTS.] Revenue received from taxes on tobacco products, as well as related penalties, interest, and license fees shall be deposited by the commissioner in the state treasury and credited as follows:

(1) 90 percent of the revenue produced by a tax of seven percent of the wholesale sales price of the tobacco products under subdivision 1 and of the cost of the tobacco products under subdivision 2 must be credited to the public authority account and ten percent must be credited to the youth smoking prevention education account; and

(2) the balance of the revenue shall be credited to the general fund.

Sec. 11. [FLOOR STOCKS TAX.]

Subdivision 1. [CIGARETTES.] A floor stocks tax is imposed on every person engaged in business in this state as a distributor, retailer, subjobber, vendor, manufacturer, or manufacturer's representative of cigarettes, on the stamped cigarettes and unaffixed stamps in the person's possession or under the person's control at 12:01 a.m. on January 1, 1998. The tax is imposed at the following rates, subject to the discounts in Minnesota Statutes, section 297F.08:

(1) on cigarettes weighing not more than three pounds a thousand, 5 mills on each cigarette; and

(2) on cigarettes weighing more than three pounds a thousand, 10 mills on each cigarette.

Each distributor, by January 8, 1998, shall file a report with the commissioner, in the form the commissioner prescribes, showing the stamped cigarettes and unaffixed stamps on hand at 12:01 a.m. on January 1, 1998, and the amount of tax due on the cigarettes and unaffixed stamps. The tax imposed by this section is due and payable by February 1, 1998, and after that date bears interest as provided in Minnesota Statutes, section 270.75.

Each retailer, subjobber, vendor, manufacturer, or manufacturer's representative shall file a return with the commissioner, in the form the commissioner prescribes, showing the cigarettes on hand at 12:01 a.m. on January 1, 1998, and pay the tax due on them by February 1, 1998. Tax not paid by the due date bears interest as provided in Minnesota Statutes, section 270.75.

Subd. 2. [TOBACCO PRODUCTS.] A floor stocks tax is imposed upon every person engaged in business in this state as a distributor of tobacco products, at the rate of seven percent of the wholesale sales price of each tobacco product in the person's possession or under the person's control at 12:01 a.m. on January 1, 1998. Each distributor, by January 8, 1998, shall file a report with the commissioner, in the form the commissioner prescribes, showing the tobacco products on hand at 12:01 a.m. on January 1, 1998, and the amount of tax due on them. The tax imposed by this section less the discount provided in Minnesota Statutes, section 297F.09, subdivision 2, is due and payable by February 1, 1998, and thereafter bears interest as provided in Minnesota Statutes, section 270.75.

Subd. 3. [AUDIT AND ENFORCEMENT.] The tax imposed by this section is subject to the audit, assessment, and collection provisions applicable to the taxes imposed under Minnesota Statutes, chapter 297F. The commissioner may require a distributor to receive and maintain copies of floor stock tax returns filed by all persons requesting a credit for returned cigarettes.

Subd. 4. [DEPOSIT OF PROCEEDS.] The revenue from the tax imposed under this section must be deposited by the commissioner in the state treasury and credited to the public authority and the youth smoking prevention education accounts in proportions as provided in Minnesota Statutes, section 297F.10, subdivision 1.

Sec. 12. [EFFECTIVE DATE.]

This article is effective January 1, 1998."


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Delete the title and insert:

"A bill for an act relating to sports; providing for a process to construct, fund, maintain, and govern a major league baseball-only facility; providing for powers and duties of the governing entity; authorizing certain taxes, revenue distributions, bonds and other debt obligations, and allocations; appropriating money; amending Minnesota Statutes 1996, sections 11A.24, by adding a subdivision; and 80A.15, by adding a subdivision; Minnesota Statutes 1997 Supplement, sections 297F.05, subdivisions 1, 3, and 4; 297F.08, subdivision 7; 297F.09, subdivision 2; and 297F.10, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapter 79; proposing coding for new law as Minnesota Statutes, chapter 473I."

A roll call was requested and properly seconded.

The question was taken on the Jennings amendment and the roll was called. There were 1 yea and 128 nays as follows:

Those who voted in the affirmative were:

Huntley

Those who voted in the negative were:

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


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5964

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.

The motion did not prevail and the amendment was not adopted.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5965

Jennings moved to amend H. F. No. 2, the first engrossment, as amended, as follows:

Page 10, line 10, delete "share" and after the first "the" insert "voting"

Page 14, after line 16, insert:

"Subd. 20. [NAMING RIGHTS OF BASEBALL PARK.] The naming rights of the baseball park shall remain with the commission."

A roll call was requested and properly seconded.

The question was taken on the Jennings amendment and the roll was called. There were 124 yeas and 5 nays as follows:

Those who voted in the affirmative were:

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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5966

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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5967

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:

"ARTICLE 1

SALE OF METRODOME

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


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5968

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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5969

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 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.

(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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5970

(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 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.

(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:

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:

"ARTICLE 1

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


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5972

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:


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(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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5974

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."


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5975

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:

"ARTICLE 5

BASEBALL PARK SPECIAL TAXES

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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5976

(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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5977

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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5978

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:

"ARTICLE 4

COMMUNITY OWNERSHIP

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;


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5979

(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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5980

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

Page 7, delete lines 1 to 4


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5981

Page 10, delete lines 1 to 28 and insert:

"Subd. 3. [COMMUNITY OWNERSHIP.] The commission shall present to the legislature by February 1, 1998, a plan that provides for stock ownership of the baseball team by the community. The owner must have entered into a binding written agreement accepting the plan submitted to the legislature by the commission. The plan may be adopted by law. If the plan is not adopted by law by March 31, 1998, then the amount of the owner's initial investment under subdivision 5 is increased to $125,000,000, and the maximum amount of the bonds under section 473.5993, subdivision 2, is reduced to $125,000,000."

Pages 19 and 20, delete sections 1 to 4

Pages 21 and 22, delete section 9

Pages 24 to 27, delete sections 13 to 15

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

Long moved to amend the Jennings amendment to H. F. No. 2, the first engrossment, as amended, as follows:

Page 1, line 17, delete "$125,000,000" and insert "$175,000,000"

Page 1, line 18, delete "$125,000,000" and insert "$75,000,000"

A roll call was requested and properly seconded.

The question was taken on the amendment to the amendment and the roll was called. There were 34 yeas and 93 nays as follows:

Those who voted in the affirmative were:

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
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

The motion prevailed and the amendment was adopted.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5983

Clark; Kahn; Koskinen; McGuire; Munger; Rest; Harder; Chaudhary; Sykora; Johnson, R.; Luther; Garcia; Folliard; Wejcman; Osthoff; Paymar; Seagren; Huntley; Hausman; Marko; Wagenius; Long; Trimble; Farrell; Tingelstad; Kelso; Broecker; Boudreau; Davids; Jennings; Slawik; Carlson; Larsen; Biernat; McElroy; Evans; Smith; Bettermann; McCollum; Peterson; Daggett; Molnau and Kuisle moved to amend H. F. No. 2, the first engrossment, as amended, as follows:

Page 30, after line 21, insert:

"Sec. 5. [ACCESS FOR WOMEN'S BASEBALL.] The commission must ensure access for baseball facilities for a Minnesota women's professional baseball team when it exists."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

H. F. No. 2, 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.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 29 yeas and 100 nays as follows:

Those who voted in the affirmative were:

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.

SECOND READING OF HOUSE BILLS, Continued

H. F. No. 9 was read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5985

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.

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. 22.

Patrick E. Flahaven, Secretary of the Senate


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5986

FIRST READING OF SENATE BILLS

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.

SUSPENSION OF RULES

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.

MOTION TO ADJOURN THIRD SPECIAL

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.

ADJOURNMENT

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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5987

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:

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.

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

SUSPENSION OF RULES

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.

SENATE CONCURRENT RESOLUTION NO. 1

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


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5989

FIRST READING OF SENATE BILLS

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.

SUSPENSION OF RULES

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.

The bill was passed and its title agreed to.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5990

There being no objection, the order of business reverted to Messages from the Senate.

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. 8.

Patrick E. Flahaven, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 8, a bill for an act relating to education; appropriating money for the repair and renovation of the Crooked Lake elementary school.

The bill was read for the first time.

SUSPENSION OF RULES

Pursuant to Article IV, Section 19, of the Constitution of the state of Minnesota, Tingelstad; Carruthers; Sekhon; Weaver; Delmont; Haas; Johnson, A.; Koskinen; Lindner; Evans; Luther and Chaudary moved that the rule therein be suspended and an urgency be declared so that S. F. No. 8 be given its second and third readings and be placed upon its final passage. The motion prevailed.

Tingelstad; Carruthers; Sekhon; Weaver; Delmont; Haas; Johnson, A.; Koskinen; Lindner; Evans; Luther and Chaudary moved that the rules of the House be so far suspended that S. F. No. 8 be given its second and third readings and be placed upon its final passage. The motion prevailed.

S. F. No. 8 was read for the second time.

S. F. No. 8, a bill for an act relating to education; appropriating money for the repair and renovation of the Crooked Lake elementary school.

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 125 yeas and 1 nay as follows:

Those who voted in the affirmative were:

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.

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

FIRST READING OF SENATE BILLS

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.

The bill was read for the first time.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5992

SUSPENSION OF RULES

Pursuant to Article IV, Section 19, of the Constitution of the state of Minnesota, Skoglund moved that the rule therein be suspended and an urgency be declared so that S. F. No. 12 be given its second and third readings and be placed upon its final passage. The motion prevailed.

Skoglund moved that the rules of the House be so far suspended that S. F. No. 12 be given its second and third readings and be placed upon its final passage. The motion prevailed.

S. F. No. 12 was read for the second time.

Tuma; Olson, M.; Kuisle; Rifenberg; Davids and Ness offered an amendment to S. F. No. 12.

POINT OF ORDER

Rukavina raised a point of order pursuant to rule 3.09 that the Tuma et al amendment was not in order. The Speaker ruled the point of order well taken and the Tuma et al amendment out of order.

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.

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 123 yeas and 6 nays as follows:

Those who voted in the affirmative were:

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.


Journal of the House - 2nd Day - Tuesday, October 28, 1997 - Top of Page 5993

Those who voted in the negative were:

Kielkucki Knight Knoblach Krinkie Osskopp Workman

The bill was passed and its title agreed to.

ADJOURNMENT

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


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