HF 778

CCR-HF0778 - 90th Legislature (2017 - 2018)

Posted on 05/19/2017 11:39 p.m.

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 778 1.2A bill for an act 1.3relating to the Minnesota Sports Facilities Authority; providing for classification 1.4of certain data; modifying appointments to the authority board; modifying duties; 1.5restricting the use of stadium suites;amending Minnesota Statutes 2016, sections 1.613.55, subdivision 2; 473J.07, subdivisions 2, 3, 4, 8, by adding a subdivision; 1.7473J.09, subdivisions 6, 13, by adding subdivisions; 473J.13, by adding a 1.8subdivision; repealing Minnesota Statutes 2016, section 473J.09, subdivision 14. 1.9May 19, 2017 1.10The Honorable Kurt L. Daudt 1.11Speaker of the House of Representatives 1.12The Honorable Michelle L. Fischbach 1.13President of the Senate 1.14We, the undersigned conferees for H. F. No. 778 report that we have agreed upon the 1.15items in dispute and recommend as follows: 1.16That the Senate recede from its amendments and that H. F. No. 778 be further amended 1.17as follows: 1.18Delete everything after the enacting clause and insert: 1.19"ARTICLE 1 1.20MINNESOTA SPORTS FACILITIES AUTHORITY 1.21    Section 1. Minnesota Statutes 2016, section 13.55, subdivision 2, is amended to read: 1.22    Subd. 2. Public data. new text begin (a) new text end The data made not public by the provisions of subdivision 1 1.23shall become public upon the occurrence of any of the following: 1.24    (a) new text begin (1) new text end five years elapse from the date on which the lease or contract is entered into 1.25between the facility and the inquiring party or parties or the event which was the subject of 1.26inquiry occurs at the facility, whichever occurs earlier; 1.27    (b) new text begin (2) new text end the event which was the subject of inquiry does not occur; or 2.1    (c) new text begin (3) new text end the event which was the subject of inquiry occurs elsewhere. 2.2     new text begin (b) Data regarding persons receiving free or discounted admission, tickets, or other gifts new text end 2.3 new text begin from publicly owned and operated convention facilities, civic center authorities, or the new text end 2.4 new text begin Minnesota Sports Facilities Authority are public data unless the data are subject to the new text end 2.5 new text begin provisions of subdivision 1 or 4, paragraph (b). new text end 2.6    Sec. 2. Minnesota Statutes 2016, section 16A.965, is amended by adding a subdivision to 2.7read: 2.8     new text begin Subd. 11. new text end new text begin Prepayment of bonds. new text end new text begin In each fiscal year in which there is reduction in the new text end 2.9 new text begin payment for stadium operating expenses under section 473J.13, subdivision 2, paragraph new text end 2.10 new text begin (b), clause (2), the commissioner shall set aside an amount equal to that reduction in a new text end 2.11 new text begin separate account in the general fund. When a sufficient amount has accumulated in that new text end 2.12 new text begin account to make it practicable, the commissioner must use amounts in the account to prepay new text end 2.13 new text begin or defease bonds in a manner that preserves the tax exempt status of the bonds. new text end 2.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with fiscal year 2018. new text end 2.15    Sec. 3. Minnesota Statutes 2016, section 297A.994, subdivision 4, is amended to read: 2.16    Subd. 4. General fund allocations. The commissioner must retain and deposit to the 2.17general fund the following amounts, as required by subdivision 3, clause (3): 2.18    (1) for state bond debt service support beginning in calendar year 2021, and for each 2.19calendar year thereafter through calendar year 2046, periodic amounts so that not later than 2.20December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has been 2.21deposited in the general fund. To determine aggregate present value, the commissioner must 2.22consult with the commissioner of management and budget regarding the present value dates, 2.23discount rate or rates, and schedules of annual amounts. The present value date or dates 2.24must be based on the date or dates bonds are sold under section 16A.965, or the date or 2.25dates other state funds, if any, are deposited into the construction fund. The discount rate 2.26or rates must be based on the true interest cost of the bonds issued under section 16A.965, 2.27or an equivalent 30-year bond index, as determined by the commissioner of management 2.28and budget. The schedule of annual amounts must be certified to the commissioner by the 2.29commissioner of management and budget and the finance officer of the city; 2.30    (2) for the capital improvement reserve appropriation to the Minnesota Sports Facilities 2.31Authority beginning in calendar year 2021, and for each calendar year thereafter through 3.1calendar year 2046, an aggregate annual amount equal to the amount paid by the state for 3.2this purpose in that calendar year under section 473J.13, subdivision 4; 3.3    (3) for the operating expense appropriation to the Minnesota Sports Facilities Authority 3.4beginning in calendar year 2021, and for each calendar year thereafter through calendar 3.5year 2046, an aggregate annual amount equal to the amount paid by the state for this purpose 3.6in that calendar year under section 473J.13, subdivision 2 new text begin , determined without regard to the new text end 3.7 new text begin reduction under section 473J.13, subdivision 2, paragraph (b), clause (2) new text end ; 3.8    (4) for recapture of state advances for capital improvements and operating expenses for 3.9calendar years 2016 through 2020 beginning in calendar year 2021, and for each calendar 3.10year thereafter until all amounts under this clause have been paid, proportionate amounts 3.11periodically until an aggregate amount equal to the present value of all amounts paid by the 3.12state have been deposited in the general fund. To determine the present value of the amounts 3.13paid by the state to the authority and the present value of amounts deposited to the general 3.14fund under this clause, the commissioner shall consult with the commissioner of management 3.15and budget regarding the present value dates, discount rate or rates, and schedule of annual 3.16amounts. The present value dates must be based on the dates state funds are paid to the 3.17authority, or the dates the commissioner of revenue deposits taxes for purposes of this clause 3.18to the general fund. The discount rates must be based on the reasonably equivalent cost of 3.19state funds as determined by the commissioner of management and budget. The schedule 3.20of annual amounts must be revised to reflect amounts paid under section 473J.13, subdivision 3.212 , paragraph (b), for 2016 to 2020, and subdivision 4, paragraph (c), for 2016 to 2020, and 3.22taxes deposited to the general fund from time to time under this clause, and the schedule 3.23and revised schedules must be certified to the commissioner by the commissioner of 3.24management and budget and the finance officer of the city, and are transferred as accrued 3.25from the general fund for repayment of advances made by the state to the authority new text begin . new text end 3.26 new text begin Determination of the present value amounts must be made without regard to any reduction new text end 3.27 new text begin in the state advances resulting from the reduction in the payments under section 473J.13, new text end 3.28 new text begin subdivision 2, paragraph (b), clause (2) new text end ; and 3.29    (5) to capture increases in taxes imposed under the special law, for the benefit of the 3.30Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for each calendar 3.31year thereafter through 2046, there shall be deposited to the general fund in proportionate 3.32periodic payments in the following year, an amount equal to the following: 3.33    (i) 50 percent of the difference, if any, by which the amount of the net annual taxes for 3.34the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus 3.35$1,000,000, inflated at two percent per year since 2011, minus 4.1    (ii) 25 percent of the difference, if any, by which the amount of the net annual taxes for 4.2the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus 4.3$3,000,000, inflated at two percent per year since 2011. 4.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon compliance by the governing body new text end 4.5 new text begin of the city of Minneapolis with Minnesota Statutes, section 645.021. new text end 4.6    Sec. 4. Minnesota Statutes 2016, section 473J.03, is amended by adding a subdivision to 4.7read: 4.8     new text begin Subd. 13. new text end new text begin Stadium space. new text end new text begin "Stadium space" means a seat, personal seat license, suite, new text end 4.9 new text begin club room, parking, or any other part of the stadium or license to access any part of the new text end 4.10 new text begin stadium that a member of the general public would have to pay to use or access. new text end 4.11    Sec. 5. Minnesota Statutes 2016, section 473J.07, subdivision 2, is amended to read: 4.12    Subd. 2. Membership. (a) The authority shall consist of five members. 4.13    (b) The chair and two new text begin Three new text end members shall be appointed by the governor new text begin and confirmed new text end 4.14 new text begin by the house of representatives and the senate new text end . One member appointed by the governor shall 4.15serve until December 31 of the third year following appointment and one member shall 4.16serve until December 31 of the fourth year following appointment. Thereafter, members 4.17appointed by the governor shall serve four-year terms, beginning January 1. Each member 4.18serves until a successor is appointed and takes office new text begin unless removed by the appointing new text end 4.19 new text begin authority for cause. Cause for removal includes violation of the employee code of ethics in new text end 4.20 new text begin section 43A.38 new text end . The chair serves at the pleasure of the governor. 4.21    (c) The mayor of the city shall appoint new text begin and the house of representatives and the senate new text end 4.22 new text begin shall confirm new text end two members to the authority. One member appointed by the mayor of the 4.23city shall serve until December 31 of the third year following appointment and one member 4.24shall serve until December 31 of the fourth year following appointment. Thereafter, members 4.25appointed under this paragraph shall serve four-year terms beginning January 1. Each 4.26member serves until a successor is appointed and takes office new text begin unless removed by the new text end 4.27 new text begin appointing authority for cause. Cause for removal includes violation of the employee code new text end 4.28 new text begin of ethics in section 43A.38 new text end . Members appointed under this paragraph may reside within the 4.29city and may be appointed officials of a political subdivision. 4.30    (d) The initial members of the authority must be appointed not later than June 13, 2012. 4.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment and new text end 4.32 new text begin applies to members appointed on or after the day following final enactment. new text end new text begin new text end 5.1    Sec. 6. Minnesota Statutes 2016, section 473J.07, subdivision 3, is amended to read: 5.2    Subd. 3. Compensation. The authority may compensate its members, other than the 5.3chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided by 5.4other law, a salary in an amount fixed by the authority, new text begin no more than half of the salary of new text end 5.5 new text begin the executive director of the authority in fiscal year 2018 new text end and shall be reimbursed for 5.6reasonable expenses to the same extent as a member. new text begin Beginning in fiscal year 2019, the new text end 5.7 new text begin chair shall receive the same compensation as other board members and shall be reimbursed new text end 5.8 new text begin for reasonable expenses to the same extent as a member. new text end 5.9    Sec. 7. Minnesota Statutes 2016, section 473J.07, subdivision 4, is amended to read: 5.10    Subd. 4. Chair. The chair presides at all meetings of the authority, if present, and 5.11performs all other assigned duties and functions. new text begin The members of the authority shall new text end 5.12 new text begin biennially elect a chair from among its members. new text end The authority may appoint from among 5.13its members a vice-chair to act for the chair during the temporary absence or disability of 5.14the chair, and any other officers the authority determines are necessary or convenient. 5.15    Sec. 8. Minnesota Statutes 2016, section 473J.07, subdivision 7, is amended to read: 5.16    Subd. 7. Audit. The legislative auditor shall audit the books and accounts of the authority 5.17once each year or as often as the legislative auditor's funds and personnel permit. The 5.18authority shall pay the total cost of the audit pursuant to section 3.9741. new text begin The legislative new text end 5.19 new text begin auditor may conduct examinations of the authority's finances, budgets, expenditures, new text end 5.20 new text begin revenues, and its operation. The legislative auditor may periodically examine the authority's new text end 5.21 new text begin use of stadium space by the authority's members, staff, family, friends, charitable new text end 5.22 new text begin organizations, and vendors. new text end 5.23    Sec. 9. Minnesota Statutes 2016, section 473J.07, subdivision 8, is amended to read: 5.24    Subd. 8. Executive director; employees. The authority may appoint an executive director 5.25to serve as the chief executive officer of the authority. The executive director serves at the 5.26pleasure of the authority and receives compensation as determined by the authority new text begin not to new text end 5.27 new text begin exceed $135,000 new text end . The executive director may be responsible for the operation, management, 5.28and promotion of activities of the authority, as prescribed by the authority. The executive 5.29director has the powers necessarily incident to the performance of duties required and powers 5.30granted by the authority, but does not have authority to incur liability or make expenditures 5.31on behalf of the authority without general or specific directions by the authority, as shown 5.32by the bylaws or minutes of a meeting of the authority. The executive director is responsible 6.1for hiring, supervision, and dismissal of all other employees of the authority. new text begin The authority new text end 6.2 new text begin must conduct an annual employee evaluation of the executive director, which must be new text end 6.3 new text begin reviewed and approved by the entire board. new text end 6.4    Sec. 10. Minnesota Statutes 2016, section 473J.07, is amended by adding a subdivision 6.5to read: 6.6     new text begin Subd. 8a. new text end new text begin Budget; report. new text end new text begin After adoption, the authority shall submit its annual budget new text end 6.7 new text begin to the commissioner of management and budget and to the chairs and ranking minority new text end 6.8 new text begin members of the senate finance and house of representatives ways and means committees. new text end new text begin new text end 6.9    Sec. 11. Minnesota Statutes 2016, section 473J.07, subdivision 9, is amended to read: 6.10    Subd. 9. Web site. The authority shall establish a Web site for purposes of providing 6.11information to the public concerning all actions taken by the authority. At a minimum, the 6.12Web site must contain a current version of the authority's bylaws, notices of upcoming 6.13meetings, minutes of the authority's meetings, new text begin each annual budget, each use agreement, new text end 6.14 new text begin each management agreement, each sponsorship agreement, meeting minutes for all meetings, new text end 6.15 new text begin policies, and procedures, new text end and contact telephone, electronic mail, and facsimile numbers for 6.16public comments new text begin . This subdivision does not apply to information that is classified as not new text end 6.17 new text begin public data, as defined in section 13.02, subdivision 8a, under other law new text end . 6.18    Sec. 12. Minnesota Statutes 2016, section 473J.09, subdivision 6, is amended to read: 6.19    Subd. 6. Employees; contracts for services. The authority may employ persons and 6.20contract for services necessary to carry out its functions, including the utilization of 6.21employees and consultants retained by other governmental entities. new text begin As a condition of new text end 6.22 new text begin employment, employees selected by the authority may not engage in partisan political new text end 6.23 new text begin activities. new text end The authority shall enter into an agreement with the city regarding traffic control 6.24for the stadium. 6.25    Sec. 13. Minnesota Statutes 2016, section 473J.09, subdivision 13, is amended to read: 6.26    Subd. 13. Legislative report. The authority must report to the new text begin Legislative Commission new text end 6.27 new text begin on Minnesota Sports Facilities and the new text end chairs and ranking minority members of the legislative 6.28committees with jurisdiction over state government finance new text begin and to the senate Finance new text end 6.29 new text begin Committee and the house of representatives Ways and Means Committee new text end by January 15 of 6.30each year on the following: 6.31(1) any recommended increases in the rate or dollar amount of tax; 7.1(2) any recommended increases in the debt of the authority; 7.2(3) the overall work and role of the authority; 7.3(4) the authority's proposed operating and capital budgets; and 7.4(5) the authority's implementation of the operating and capital budgets. new text begin , including new text end 7.5 new text begin information on actual revenues and expenditures, events conducted, and all expected or new text end 7.6 new text begin unexpected maintenance and capital repair needs arising since the time of the last report; new text end 7.7 new text begin and new text end 7.8 new text begin (6) a listing of all stadium amenities under the control of the authority since the time of new text end 7.9 new text begin the last report, and how the amenities were used. new text end 7.10    Sec. 14. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision 7.11to read: 7.12     new text begin Subd. 16. new text end new text begin Consignment agreement; authority's suites. new text end new text begin (a) The authority must negotiate new text end 7.13 new text begin an agreement providing for consignment of the authority's suites to the primary tenant new text end 7.14 new text begin consistent with the use agreement and subject to this subdivision. The final terms of the new text end 7.15 new text begin consignment must be approved by the chairs of the committees of the house of representatives new text end 7.16 new text begin and the senate with jurisdiction over state government finance and must include the following: new text end 7.17 new text begin (1) the primary tenant is the consignee and must make all commercially reasonable new text end 7.18 new text begin efforts to sell access to the suites to third parties; new text end 7.19 new text begin (2) the authority must receive a percentage of the revenues from consignment of the new text end 7.20 new text begin suites each year equal to at least 90 percent of the first $400,000 of revenue and 65 percent new text end 7.21 new text begin of any amount in excess of that and the amount of revenue retained by the primary tenant new text end 7.22 new text begin must not exceed its actual transaction, marketing, and administrative costs that it would not new text end 7.23 new text begin have incurred but for the consignment; new text end 7.24 new text begin (3) the authority may agree to retain for its management vendor an option to access one new text end 7.25 new text begin suite during not more than two NFL games conducted in the stadium each calendar year new text end 7.26 new text begin for marketing purposes; and new text end 7.27 new text begin (4) the terms of the consignment agreement are effective for a period of five years new text end 7.28 new text begin beginning no later than August 1, 2017, and must be renegotiated no later than August 1, new text end 7.29 new text begin 2022, and every five years thereafter. new text end 7.30 new text begin (b) Data collected, created, or maintained by the authority related to negotiation of the new text end 7.31 new text begin consignment required by this paragraph are nonpublic data, as defined in section 13.02, new text end 7.32 new text begin subdivision 9, if the data derives independent economic value, actual or potential, from not new text end 8.1 new text begin being generally known to, and not being readily ascertainable by, other persons who can new text end 8.2 new text begin obtain economic value from its disclosure or use, provided that all data related to the new text end 8.3 new text begin consignment, including data classified by this paragraph, are public five years after the new text end 8.4 new text begin terms of the consignment expire. Data provided to the legislative chairs under the approval new text end 8.5 new text begin requirement in paragraph (a) may not be disclosed without the consent of the primary tenant. new text end 8.6 new text begin (c) The authority must use revenues from the consignment agreement to pay the operating new text end 8.7 new text begin expenses of the stadium. new text end 8.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 8.9    Sec. 15. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision 8.10to read: 8.11     new text begin Subd. 17. new text end new text begin Report on stadium space use by authority members, staff, and vendors. new text end 8.12     new text begin The authority shall report the following information annually to the governor, the mayor of new text end 8.13 new text begin the city of Minneapolis, the chair of the Legislative Commission on Minnesota Sports new text end 8.14 new text begin Facilities, and the chairs and ranking minority members of the senate Finance Committee new text end 8.15 new text begin and the house of representatives Ways and Means Committee regarding use of stadium new text end 8.16 new text begin space by authority members, staff, family, friends, charitable organizations, and vendors or new text end 8.17 new text begin their guests: new text end 8.18     new text begin (1) the costs of use; new text end 8.19     new text begin (2) the identity of each adult attendee and their legitimate business purpose for attendance; new text end 8.20     new text begin (3) the date, time, and a general description of the stadium event at which the suite was new text end 8.21 new text begin used; and new text end 8.22     new text begin (4) the value and description of any food, parking, or other benefits provided to attendees. new text end 8.23    Sec. 16. Minnesota Statutes 2016, section 473J.09, is amended by adding a subdivision 8.24to read: 8.25     new text begin Subd. 18. new text end new text begin Code of conduct. new text end new text begin The authority shall adopt and comply with the latest version new text end 8.26 new text begin of the state code of conduct promulgated by Minnesota Management and Budget. For new text end 8.27 new text begin purposes of section 43A.38 as applied to the authority, an authority member or an authority new text end 8.28 new text begin staff member is an "employee of the executive branch"; use of or preferential access to new text end 8.29 new text begin stadium space by an authority member or by authority staff, unless permitted under this new text end 8.30 new text begin section, constitutes a "gift" under section 43A.38, subdivision 2; and constitutes "use of new text end 8.31 new text begin state property for the employee's private interest" under section 43A.48, subdivision 4. new text end 9.1    Sec. 17. new text begin [473J.095] AUTHORITY'S USE OF STADIUM SPACE. new text end 9.2     new text begin Subdivision 1. new text end new text begin Application. new text end new text begin The restrictions in this section apply to the use of stadium new text end 9.3 new text begin space provided to the authority under the terms of the lease or use agreement required under new text end 9.4 new text begin section 473J.15, subdivision 3. new text end new text begin new text end 9.5     new text begin Subd. 2. new text end new text begin Use of stadium space by authority members and staff. new text end new text begin (a) Authority members new text end 9.6 new text begin and authority staff, including the executive director of the authority, may not use stadium new text end 9.7 new text begin space unless the use is for a legitimate business purpose. For purposes of this subdivision, new text end 9.8 new text begin "legitimate business purpose" means: new text end new text begin new text end 9.9     new text begin (1) participating in a marketing effort arranged by the authority's management vendor; new text end 9.10     new text begin (2) conducting oversight of the operation of the stadium; or new text end 9.11     new text begin (3) making stadium space available to nonprofit charitable organizations to provide new text end 9.12 new text begin access to events at the stadium for people served by the charitable organization. new text end 9.13     new text begin The executive director of the authority must ensure that use of stadium space does not new text end 9.14 new text begin violate open meeting laws. new text end new text begin new text end 9.15     new text begin (b) Use of stadium space by authority staff must be based on an express written new text end 9.16 new text begin assignment of duties by the executive director or, in the case of use by the executive director, new text end 9.17 new text begin an express written assignment of duties by the authority chair. In all cases, use of stadium new text end 9.18 new text begin space by authority staff must be approved by a vote of the authority at a public meeting, new text end 9.19 new text begin and the legitimate business purpose for use must be made a part of the public record. new text end 9.20 new text begin Authority staff may not be provided free food, beverages, or stadium parking unless necessary new text end 9.21 new text begin to complete the assigned duties. new text end 9.22     new text begin Subd. 4. new text end new text begin Use of stadium space by family, friends, and other guests. new text end new text begin The authority or new text end 9.23 new text begin its members may not grant access to stadium space to family members, friends, or other new text end 9.24 new text begin guests of the authority's members or staff unless the use is for a legitimate business purpose. new text end 9.25 new text begin The use must be approved by a vote of the authority at a public meeting, and the legitimate new text end 9.26 new text begin business purpose must be made a part of the public record. For purposes of this subdivision, new text end 9.27 new text begin "legitimate business purpose" means being a prospective user of the stadium. new text end 9.28     new text begin Subd. 5. new text end new text begin Use of stadium space by managing vendor. new text end new text begin If the authority contracts with a new text end 9.29 new text begin management vendor for services to market the stadium, the authority may extend to the new text end 9.30 new text begin vendor complimentary access to stadium space for the purpose of marketing the stadium to new text end 9.31 new text begin prospective users, provided the contract requires the vendor to report to the authority the new text end 9.32 new text begin following information within 30 days after each event at which the vendor has used stadium new text end 9.33 new text begin space: new text end 10.1     new text begin (1) the costs of use; new text end 10.2     new text begin (2) the identity of each adult attendee and their legitimate business purpose for attendance; new text end 10.3     new text begin (3) the date, time, and a general description of the stadium event at which the suite was new text end 10.4 new text begin used; and new text end 10.5     new text begin (4) the value and description of any food, parking, or other benefits provided to attendees. new text end 10.6     new text begin Data that the authority receives under this subdivision is public data unless otherwise new text end 10.7 new text begin classified by section 13.55. new text end 10.8     new text begin Subd. 6. new text end new text begin Open market purchase. new text end new text begin This section does not prohibit an authority member, new text end 10.9 new text begin authority staff, or family, friends, or other guests of authority members or staff from attending new text end 10.10 new text begin events or renting stadium space, if a ticket or a right of access to the space was purchased new text end 10.11 new text begin on the open market through the same channels, and for the same price, as those available new text end 10.12 new text begin to the general public. new text end 10.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 10.14    Sec. 18. Minnesota Statutes 2016, section 473J.13, subdivision 2, is amended to read: 10.15    Subd. 2. Operating expenses. (a) The authority must pay or cause to be paid all operating 10.16expenses of the stadium. The authority must require in the lease or use agreement with the 10.17NFL team that the NFL team pay the authority, beginning January 1, 2016, or other date as 10.18mutually agreed upon by the parties, toward operating costs of the stadium, $8,500,000 10.19each year, increased by a three percent annual inflation rate. 10.20(b) new text begin (1) new text end Beginning January 1, 2016, or other date as mutually agreed upon by the parties, 10.21and continuing through 2020, the state shall pay the authority operating expenses, $6,000,000 10.22each year, increased by an annual adjustment factor. The payment of $6,000,000 per year 10.23beginning in 2016 is a payment by the state, which shall be repaid to the state, using funds 10.24as provided under section 297A.994, subdivision 4, clause (4). After 2020, the state shall 10.25assume this payment, using funds generated in accordance with the city of Minneapolis as 10.26specified under section 297A.994, subdivision 4, clause (3) new text begin ; new text end 10.27 new text begin (2) beginning for fiscal year 2018 through fiscal year 2022, the payment under this new text end 10.28 new text begin section must be reduced by the greater of (i) $400,000 or (ii) the additional revenue received new text end 10.29 new text begin by the authority under the consignment under section 473J.09, subdivision 16, in the prior new text end 10.30 new text begin fiscal year; and new text end 11.1 new text begin (3) beginning for fiscal year 2023, the payment under this section must be reduced by new text end 11.2 new text begin the additional revenue received by the authority under the consignment under section 473J.09, new text end 11.3 new text begin subdivision 16, in the prior fiscal year new text end . 11.4(c) The authority may establish an operating reserve to cover operating expense shortfalls 11.5and may accept funds from any source for deposit in the operating reserve. The establishment 11.6or funding of an authority operating reserve must not decrease the amounts required to be 11.7paid to the authority toward operating costs under this subdivision unless agreed to by the 11.8authority. 11.9(d) The authority will be responsible for operating cost overruns. 11.10(e) After the joint selection of the third-party manager or program manager, the authority 11.11may agree with a program manager or other third-party manager of the stadium on a fixed 11.12cost operating, management, or employment agreement with operating cost protections 11.13under which the program manager or third-party manager assumes responsibility for stadium 11.14operating costs and shortfalls. The agreement with the manager must require the manager 11.15to prepare an initial and ongoing operating plan and operating budgets for approval by the 11.16authority in consultation with the NFL team. The manager must agree to operate the stadium 11.17in accordance with the approved operating plan and operating budget. 11.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2017. new text end 11.19    Sec. 19. Minnesota Statutes 2016, section 473J.13, is amended by adding a subdivision 11.20to read: 11.21     new text begin Subd. 2a. new text end new text begin Operating expense fee. new text end new text begin If a provision is enacted exempting from the tax new text end 11.22 new text begin imposed under chapter 297A any amounts paid for rental, use, or access to suites, the new text end 11.23 new text begin authority may impose a fee equal to a percentage of the gross receipts received for the rental, new text end 11.24 new text begin use, or access to the suites in the stadium. If the authority elects to use the authority under new text end 11.25 new text begin this section, it must set the rate of the fee each year so that the estimated fee revenue for new text end 11.26 new text begin that year will not exceed the lesser of: new text end 11.27 new text begin (1) the estimated reduction in operating expense payments under subdivision 2, paragraph new text end 11.28 new text begin (b), the net of the estimated consignment revenues to be received under section 473J.09, new text end 11.29 new text begin subdivision 16; or new text end 11.30 new text begin (2) one-half of the reduction in tax under chapter 297A as a result of the enacted new text end 11.31 new text begin exemption. new text end 12.1    Sec. 20. Minnesota Statutes 2016, section 473J.27, subdivision 2, is amended to read: 12.2    Subd. 2. High school league. The lessee of the stadium must make the facilities of the 12.3stadium available for use by the Minnesota State High School League for at least seven 12.4days each year for high school soccer and football tournaments. The lessee of the stadium 12.5must provide, and may not new text begin directly, or through a management company, new text end charge the league 12.6a fee for, this use, including security, ticket takers, custodial or cleaning services, or other 12.7similar services in connection with this use. 12.8    Sec. 21. new text begin RECOVERY. new text end 12.9 new text begin The Minnesota Sports Facilities Authority must make every effort to recover the fair new text end 12.10 new text begin market value of any food, parking, tickets, and access to stadium suites provided to a person new text end 12.11 new text begin prior to January 1, 2017, if the provision of those benefits to the person was not in the public new text end 12.12 new text begin interest. The authority shall report on recovery efforts to the commissioner of management new text end 12.13 new text begin and budget and to the chairs and ranking minority members of the senate finance and house new text end 12.14 new text begin of representatives ways and means committees by May 31, 2017. Money recovered under new text end 12.15 new text begin this section is transferred by July 1, 2017, to the commissioner of management and budget new text end 12.16 new text begin for deposit in the general reserve account established under Minnesota Statutes, section new text end 12.17 new text begin 297E.021, subdivision 4. new text end 12.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 12.19    Sec. 22. new text begin LEGISLATIVE AUDITOR REVIEW. new text end 12.20 new text begin (a) No later than January 15, 2018, the legislative auditor is requested to review the new text end 12.21 new text begin operations and management structure of major sports event facilities in Minnesota that are new text end 12.22 new text begin both publicly owned and publicly operated. Upon completion, the review must be submitted new text end 12.23 new text begin to the chairs and ranking minority members of the legislative committees with jurisdiction new text end 12.24 new text begin over state government finance, and to the Legislative Commission on Minnesota Sports new text end 12.25 new text begin Facilities. new text end 12.26 new text begin (b) At a minimum, the review must consider: new text end 12.27 new text begin (1) the structure and oversight responsibilities of each facility's public governing body; new text end 12.28 new text begin (2) whether the public governing bodies have access to tickets, suites, or other premium new text end 12.29 new text begin amenities for events conducted in the facilities they oversee, including the terms under new text end 12.30 new text begin which the access is provided; and new text end 13.1 new text begin (3) whether the public governing bodies have adopted policies or procedures to ensure new text end 13.2 new text begin their oversight activities, including those of individual members acting on behalf of the new text end 13.3 new text begin governing body, are transparent and in furtherance of the public interest. new text end new text begin new text end 13.4 new text begin (c) The review must compare and contrast the practices of each public governing body new text end 13.5 new text begin and may recommend best practices for improving the governance, operations, and public new text end 13.6 new text begin accountability of each body. As necessary, the review may also propose any changes in law new text end 13.7 new text begin necessary to implement these best practices. new text end 13.8    Sec. 23. new text begin REPEALER. new text end 13.9 new text begin Minnesota Statutes 2016, section 473J.09, subdivision 14, new text end new text begin is repealed. new text end 13.10    Sec. 24. new text begin EFFECTIVE DATE. new text end 13.11     new text begin This act is effective the day following final enactment. The terms of all current members new text end 13.12 new text begin of the Minnesota Sports Facilities Authority terminate June 30, 2017. Appointing authorities new text end 13.13 new text begin must appoint new members of the authority by June 10, 2017, to serve terms beginning July new text end 13.14 new text begin 1, 2017. new text end 13.15ARTICLE 2 13.16METROPOLITAN SPORTS FACILITIES COMMISSION TECHNICAL CHANGES 13.17    Section 1. Minnesota Statutes 2016, section 13.55, subdivision 1, is amended to read: 13.18    Subdivision 1. Not public classification. The following data received, created, or 13.19maintained by or for publicly owned and operated convention facilities, civic center 13.20authorities, or the Metropolitan new text begin Minnesota new text end Sports Facilities Commission new text begin Authority new text end are 13.21classified as nonpublic data pursuant to section 13.02, subdivision 9; or private data on 13.22individuals pursuant to section 13.02, subdivision 12: 13.23(a) a letter or other documentation from any person who makes inquiry to or who is 13.24contacted by the facility regarding the availability of the facility for staging events; 13.25(b) identity of firms and corporations which contact the facility; 13.26(c) type of event which they wish to stage in the facility; 13.27(d) suggested terms of rentals; and 13.28(e) responses of authority staff to these inquiries. 14.1    Sec. 2. Minnesota Statutes 2016, section 340A.404, subdivision 1, is amended to read: 14.2    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to the 14.3following establishments located within its jurisdiction: 14.4(1) hotels; 14.5(2) restaurants; 14.6(3) bowling centers; 14.7(4) clubs or congressionally chartered veterans organizations with the approval of the 14.8commissioner, provided that the organization has been in existence for at least three years 14.9and liquor sales will only be to members and bona fide guests, except that a club may permit 14.10the general public to participate in a wine tasting conducted at the club under section 14.11340A.419 ; 14.12(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by the 14.13Minnesota Sports Facilities Authority; new text begin and new text end 14.14(6) sports facilities located on land owned by the Metropolitan Sports Commission; and 14.15(7) new text begin (6) new text end exclusive liquor stores. 14.16(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or 14.17an on-sale malt liquor license to a theater within the city, notwithstanding any law, local 14.18ordinance, or charter provision. A license issued under this paragraph authorizes sales on 14.19all days of the week to persons attending events at the theater. 14.20(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license, or 14.21an on-sale malt liquor license to a convention center within the city, notwithstanding any 14.22law, local ordinance, or charter provision. A license issued under this paragraph authorizes 14.23sales on all days of the week to persons attending events at the convention center. This 14.24paragraph does not apply to convention centers located in the seven-county metropolitan 14.25area. 14.26(d) A city may issue an on-sale wine license and an on-sale malt liquor license to a 14.27person who is the owner of a summer collegiate league baseball team, or to a person holding 14.28a concessions or management contract with the owner, for beverage sales at a ballpark or 14.29stadium located within the city for the purposes of summer collegiate league baseball games 14.30at the ballpark or stadium, notwithstanding any law, local ordinance, or charter provision. 14.31A license issued under this paragraph authorizes sales on all days of the week to persons 14.32attending baseball games at the ballpark or stadium. 15.1    Sec. 3. Minnesota Statutes 2016, section 352.01, subdivision 2a, is amended to read: 15.2    Subd. 2a. Included employees. (a) "State employee" includes: 15.3    (1) employees of the Minnesota Historical Society; 15.4    (2) employees of the State Horticultural Society; 15.5    (3) employees of the Minnesota Crop Improvement Association; 15.6    (4) employees of the adjutant general whose salaries are paid from federal funds and 15.7who are not covered by any federal civilian employees retirement system; 15.8    (5) employees of the Minnesota State Colleges and Universities who are employed under 15.9the university or college activities program; 15.10    (6) currently contributing employees covered by the system who are temporarily 15.11employed by the legislature during a legislative session or any currently contributing 15.12employee employed for any special service as defined in subdivision 2b, clause (6); 15.13    (7) employees of the legislature who are appointed without a limit on the duration of 15.14their employment; 15.15    (8) trainees who are employed on a full-time established training program performing 15.16the duties of the classified position for which they will be eligible to receive immediate 15.17appointment at the completion of the training period; 15.18    (9) employees of the Minnesota Safety Council; 15.19    (10) any employees who are on authorized leave of absence from the Transit Operating 15.20Division of the former Metropolitan Transit Commission and who are employed by the 15.21labor organization which is the exclusive bargaining agent representing employees of the 15.22Transit Operating Division; 15.23    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 15.24Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito Control 15.25Commission unless excluded under subdivision 2b or are covered by another public pension 15.26fund or plan under section 473.415, subdivision 3; 15.27    (12) judges of the Tax Court; 15.28    (13) personnel who were employed on June 30, 1992, by the University of Minnesota 15.29in the management, operation, or maintenance of its heating plant facilities, whose 15.30employment transfers to an employer assuming operation of the heating plant facilities, so 16.1long as the person is employed at the University of Minnesota heating plant by that employer 16.2or by its successor organization; 16.3    (14) personnel who are employed as seasonal employees in the classified or unclassified 16.4service; 16.5    (15) persons who are employed by the Department of Commerce as a peace officer in 16.6the Commerce Fraud Bureau under section 45.0135 who have attained the mandatory 16.7retirement age specified in section 43A.34, subdivision 4; 16.8    (16) employees of the University of Minnesota unless excluded under subdivision 2b, 16.9clause (3); 16.10    (17) employees of the Middle Management Association whose employment began after 16.11July 1, 2007, and to whom section 352.029 does not apply; 16.12    (18) employees of the Minnesota Government Engineers Council to whom section 16.13352.029 does not apply; 16.14(19) employees of the Minnesota Sports Facilities Authority; 16.15(20) employees of the Minnesota Association of Professional Employees; 16.16(21) employees of the Minnesota State Retirement System; 16.17(22) employees of the State Agricultural Society; 16.18(23) employees of the Gillette Children's Hospital Board who were employed in the 16.19state unclassified service at the former Gillette Children's Hospital on March 28, 1974; and 16.20(24) if approved for coverage by the Board of Directors of Conservation Corps Minnesota, 16.21employees of Conservation Corps Minnesota so employed on June 30, 2003. 16.22    (b) Employees specified in paragraph (a), clause (13), are included employees under 16.23paragraph (a) if employer and employee contributions are made in a timely manner in the 16.24amounts required by section 352.04. Employee contributions must be deducted from salary. 16.25Employer contributions are the sole obligation of the employer assuming operation of the 16.26University of Minnesota heating plant facilities or any successor organizations to that 16.27employer. 16.28    Sec. 4. Minnesota Statutes 2016, section 473.121, subdivision 5a, is amended to read: 16.29    Subd. 5a. Metropolitan agency. "Metropolitan agency" means the Metropolitan Parks 16.30and Open Space Commission, new text begin and the new text end Metropolitan Airports Commission, and Metropolitan 16.31Sports Facilities Commission. 17.1    Sec. 5. Minnesota Statutes 2016, section 473.164, is amended to read: 17.2473.164 SPORTS, AIRPORT COMMISSIONS new text begin COMMISSION new text end TO PAY COUNCIL 17.3COSTS. 17.4    Subdivision 1. Annually reimburse. The Metropolitan Sports Facilities Commission 17.5and the Metropolitan Airports Commission shall annually reimburse the council for costs 17.6incurred by the council in the discharge of its responsibilities relating to the commission. 17.7The costs may be charged against any revenue sources of the commission as determined 17.8by the commission. 17.9    Subd. 2. Estimates, budget, transfer. On or before May 1 of each year, the council 17.10shall transmit to each new text begin the new text end commission an estimate of the costs which the council will incur 17.11in the discharge of its responsibilities related to the commission in the next budget year 17.12including, without limitation, costs in connection with the preparation, review, 17.13implementation and defense of plans, programs and budgets of the commission. Each new text begin The new text end 17.14commission shall include the estimates in its budget for the next budget year and may 17.15transmit its comments concerning the estimated amount to the council during the budget 17.16review process. Prior to December 15 of each year, the amount budgeted by each new text begin the new text end 17.17commission for the next budget year may be changed following approval by the council. 17.18During each budget year, the commission shall transfer budgeted funds to the council in 17.19advance when requested by the council. 17.20    Subd. 3. Final statement. At the conclusion of each budget year, the council, in 17.21cooperation with each new text begin the new text end commission, shall adopt a final statement of costs incurred by 17.22the council for each new text begin the new text end commission. Where costs incurred in the budget year have exceeded 17.23the amount budgeted, each new text begin the new text end commission shall transfer to the council the additional moneys 17.24needed to pay the amount of the costs in excess of the amount budgeted, and shall include 17.25a sum in its next budget. Any excess of budgeted costs over actual costs may be retained 17.26by the council and applied to the payment of budgeted costs in the next year. 17.27    Sec. 6. Minnesota Statutes 2016, section 473.565, subdivision 1, is amended to read: 17.28    Subdivision 1. In MSRS; exceptions. All employees of the new text begin former new text end commission shall 17.29be members of the Minnesota State Retirement System with respect to service rendered on 17.30or after May 17, 1977, except as provided in this section. 18.1    Sec. 7. Minnesota Statutes 2016, section 473.755, subdivision 4, is amended to read: 18.2    Subd. 4. Bylaws. The authority shall adopt bylaws to establish rules of procedure, the 18.3powers and duties of its officers, and other matters relating to the governance of the authority 18.4and the exercise of its powers. Except as provided in this section, the bylaws adopted under 18.5this subdivision shall be similar in form and substance to bylaws adopted by the Metropolitan 18.6Sports Facilities Commission pursuant to new text begin Minnesota Statutes 2012, new text end section 473.553. 18.7    Sec. 8. Minnesota Statutes 2016, section 473.763, subdivision 2, is amended to read: 18.8    Subd. 2. Acquisition. Subject to the rules of Major League Baseball, the governor and 18.9the Metropolitan Sports Facilities Commission must attempt to facilitate the formation of 18.10a corporation to acquire the baseball franchise and to identify an individual private managing 18.11owner of the corporation. The corporation formed to acquire the franchise shall have a 18.12capital structure in compliance with all of the following provisions: 18.13(1) there may be two classes of capital stock: common stock and preferred stock. Both 18.14classes of stock must give holders voting rights with respect to any relocation or voluntary 18.15contraction of the franchise; 18.16(2) the private managing owner must own no less than 25 percent and no more than 35 18.17percent of the common stock. For purposes of this restriction, shares of common stock 18.18owned by the private managing owner include shares of common stock owned by any related 18.19taxpayer as defined in section 1313(c) of the Internal Revenue Code of 1986, as amended. 18.20Other than the rights of all other holders of common stock and preferred stock with respect 18.21to relocation or voluntary contraction of the franchise, the private managing owner must 18.22control all aspects of the operation of the corporation; 18.23(3) other than the private managing owner, no individual or entity may own more than 18.24five percent of the common stock of the corporation; 18.25(4) at least 50 percent of the ownership of the common stock must be sold to members 18.26of the general public in a general solicitation and a person or entity must not own more than 18.27one percent of common stock of the corporation; and 18.28(5) the articles of incorporation, bylaws, and other governing documents must provide 18.29that the franchise may not move outside of the state or agree to voluntary contraction without 18.30approval of at least 75 percent of the shares of common stock and at least 75 percent of the 18.31shares of preferred stock. Notwithstanding any law to the contrary, these 75 percent approval 18.32requirements shall not be amended by the shareholders or by any other means. 19.1Except as specifically provided by Laws 2006, chapter 257, no state agency may spend 19.2money from any state fund for the purpose of generating revenue under this subdivision or 19.3for the purpose of providing operating support or defraying operating losses of a professional 19.4baseball franchise. 19.5    Sec. 9. Minnesota Statutes 2016, section 473J.13, subdivision 3, is amended to read: 19.6    Subd. 3. Public access. The authority will work to maximize access for public and 19.7amateur sports, community, and civic events, and other public events in type and on terms 19.8consistent with those currently held at the existing football stadium, as defined in new text begin Minnesota new text end 19.9 new text begin Statutes 2012, new text end section 473.551, subdivision 9. The authority may provide that these events 19.10have exclusive use of the premises at agreed-upon times subject to the scheduling rights of 19.11the NFL team under the lease or use agreement. 19.12    Sec. 10. Minnesota Statutes 2016, section 473J.25, subdivision 3, is amended to read: 19.13    Subd. 3. Metropolitan Sports Facilities Commission abolished; interim powers 19.14conferred on authority. Upon transfer to the authority of all remaining assets, liabilities, 19.15and obligations of the Metropolitan Sports Facilities Commission, in subdivision 2, the 19.16Metropolitan Sports Facilities Commission is abolished. When the remaining assets, 19.17liabilities, and obligations of the Metropolitan Sports Facilities Commission have been 19.18transferred to the authority and the commission has been abolished, the powers and duties 19.19of the commission under new text begin Minnesota Statutes 2012, new text end sections 473.551 to 473.599, and any 19.20other law shall devolve upon the authority, in addition to the powers and duties of the 19.21authority under chapter 473J, until the first NFL home game is played at the stadium. 19.22    Sec. 11. new text begin REPEALER. new text end 19.23 new text begin Minnesota Statutes 2016, sections 137.50, subdivision 5; 473.551; 473.552; 473.553, new text end 19.24 new text begin subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13; 473.556, subdivisions 1, 2, 3, 4, 5, new text end 19.25 new text begin 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, and 17; 473.561; 473.564, subdivisions 2 and 3; 473.572; new text end 19.26 new text begin 473.581; 473.592, subdivision 1; 473.595; 473.598; 473.599; and 473.76, new text end new text begin are repealed. new text end 19.27    Sec. 12. new text begin EFFECTIVE DATE. new text end 19.28 new text begin Sections 1 to 11 are effective June 30, 2017. new text end " 19.29Delete the title and insert: 20.1"A bill for an act 20.2relating to state government; changing provisions of the Minnesota Sports Facility 20.3Authority; requiring a legislative auditor review; making technical changes to the 20.4Metropolitan Sports Facilities Commission;amending Minnesota Statutes 2016, 20.5sections 13.55, subdivisions 1, 2; 16A.965, by adding a subdivision; 297A.994, 20.6subdivision 4; 340A.404, subdivision 1; 352.01, subdivision 2a; 473.121, 20.7subdivision 5a; 473.164; 473.565, subdivision 1; 473.755, subdivision 4; 473.763, 20.8subdivision 2; 473J.03, by adding a subdivision; 473J.07, subdivisions 2, 3, 4, 7, 20.98, 9, by adding a subdivision; 473J.09, subdivisions 6, 13, by adding subdivisions; 20.10473J.13, subdivisions 2, 3, by adding a subdivision; 473J.25, subdivision 3; 473J.27, 20.11subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 473J; 20.12repealing Minnesota Statutes 2016, sections 137.50, subdivision 5; 473.551; 20.13473.552; 473.553, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 473.556, 20.14subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17; 473.561; 473.564, 20.15subdivisions 2, 3; 473.572; 473.581; 473.592, subdivision 1; 473.595; 473.598; 20.16473.599; 473.76; 473J.09, subdivision 14." 21.1 We request the adoption of this report and repassage of the bill. 21.2 House Conferees: 21.3 ..... ..... 21.4 Sarah Anderson Bob Vogel 21.5 ..... 21.6 Julie Sandstede 21.7 Senate Conferees: 21.8 ..... ..... 21.9 Julie A. Rosen John Jasinski 21.10 ..... 21.11 Bobby Joe Champion