1.1                          A bill for an act
  1.2             relating to ice arenas; providing the Minnesota 
  1.3             amateur sports commission with additional authority; 
  1.4             authorizing use of county capital improvement bonds; 
  1.5             exempting issuance of certain debt from the election 
  1.6             requirements; providing a sales tax exemption; 
  1.7             authorizing use of subdivision dedication for certain 
  1.8             facilities; appropriating money; amending Minnesota 
  1.9             Statutes 1994, sections 240A.09; 240A.10; 297A.25, by 
  1.10            adding a subdivision; 373.40, subdivision 1; 462.358, 
  1.11            subdivision 2b; 471.16, subdivision 1; and 475.58, 
  1.12            subdivision 1, and by adding a subdivision; proposing 
  1.13            coding for new law in Minnesota Statutes, chapter 373. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1994, section 240A.09, is 
  1.16  amended to read: 
  1.17     240A.09 [PLAN DEVELOPMENT; CRITERIA.] 
  1.18     The Minnesota amateur sports commission shall develop a 
  1.19  plan to promote the development of proposals for new statewide 
  1.20  public ice facilities including proposals for ice centers and 
  1.21  matching grants based on the criteria in this section. 
  1.22     (a) For ice center proposals, the commission will give 
  1.23  priority to proposals that come from more than one local 
  1.24  government unit and that, in the metropolitan area as defined in 
  1.25  section 473.121, subdivision 2, involve construction of more 
  1.26  than three at least two ice sheets in a single facility. 
  1.27     (b) The Minnesota amateur sports commission shall 
  1.28  administer a site selection process for the ice centers.  The 
  1.29  commission shall invite proposals from cities or counties or 
  2.1   consortia of cities.  A proposal for an ice center must include 
  2.2   matching contributions including in-kind contributions of land, 
  2.3   access roadways and access roadway improvements, and necessary 
  2.4   utility services, landscaping, and parking. 
  2.5      (c) Proposals for ice centers and matching grants must 
  2.6   provide for meeting the demand for ice time for female groups by 
  2.7   offering up to 50 percent of prime ice time, as needed, to 
  2.8   female groups.  For purposes of this section, prime ice time 
  2.9   means the hours of 4:00 p.m. to 10:00 p.m. Monday to Friday and 
  2.10  9:00 a.m. to 8:00 p.m. on Saturdays and Sundays.  
  2.11     (d) The location for all proposed facilities must be in 
  2.12  areas of maximum demonstrated interest and must maximize 
  2.13  accessibility to an arterial highway. 
  2.14     (e) To the extent possible, all proposed facilities must be 
  2.15  dispersed equitably and must be located to maximize potential 
  2.16  for full utilization and profitable operation. 
  2.17     (f) The Minnesota amateur sports commission may also use 
  2.18  the funds to upgrade current facilities, purchase girls' ice 
  2.19  time, or conduct amateur women's hockey and other ice sport 
  2.20  tournaments. 
  2.21     (g) To the extent possible, 50 percent of all grants must 
  2.22  be awarded to communities in greater Minnesota.  
  2.23     (h) To the extent possible, technical assistance shall be 
  2.24  provided to Minnesota communities by the commission on ice arena 
  2.25  planning, design, and operation, including the marketing of ice 
  2.26  time. 
  2.27     Sec. 2.  Minnesota Statutes 1994, section 240A.10, is 
  2.28  amended to read: 
  2.29     240A.10 [AGREEMENTS.] 
  2.30     Subdivision 1.  [ICE ARENA FACILITIES.] The Minnesota 
  2.31  amateur sports commission may enter into agreements with local 
  2.32  units of government and provide financial assistance in the form 
  2.33  of grants for the construction of ice arena facilities that in 
  2.34  the determination of the commission, conform to its criteria. 
  2.35     Subd. 2.  [EQUIPMENT; REVOLVING FUND.] The commission may 
  2.36  enter into cooperative purchasing agreements under section 
  3.1   471.59 with local governments to purchase ice arena equipment 
  3.2   and services through state contracts.  The cooperative ice arena 
  3.3   equipment purchasing revolving fund is a separate account in the 
  3.4   state treasury.  The commission may charge a fee to cover the 
  3.5   commission's administrative expenses to government units that 
  3.6   have joint or cooperative purchasing agreements with the state 
  3.7   under section 471.59.  The fees collected must be deposited in 
  3.8   the revolving fund established by this subdivision.  Money in 
  3.9   the fund is appropriated to the commission to administer the 
  3.10  programs and services covered by this subdivision. 
  3.11     Sec. 3.  Minnesota Statutes 1994, section 297A.25, is 
  3.12  amended by adding a subdivision to read: 
  3.13     Subd. 60.  [INDOOR ICE ARENAS.] The gross receipts from the 
  3.14  sale of construction materials and supplies to be used in 
  3.15  constructing indoor ice arenas that qualify under section 5, if 
  3.16  a school district is a party to a joint powers agreement 
  3.17  guaranteeing payment of the arena financing.  This exemption 
  3.18  applies regardless of whether the purchases are made by the 
  3.19  owner of the facility or a contractor. 
  3.20     Sec. 4.  Minnesota Statutes 1994, section 373.40, 
  3.21  subdivision 1, is amended to read: 
  3.22     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  3.23  section, the following terms have the meanings given. 
  3.24     (a) "Bonds" means an obligation as defined under section 
  3.25  475.51. 
  3.26     (b) "Capital improvement" means acquisition or betterment 
  3.27  of public lands, buildings, or other improvements within the 
  3.28  county for the purpose of a county courthouse, administrative 
  3.29  building, health or social service facility, correctional 
  3.30  facility, jail, law enforcement center, hospital, morgue, 
  3.31  library, park, qualified indoor ice arena, and roads and 
  3.32  bridges.  An improvement must have an expected useful life of 
  3.33  five years or more to qualify. "Capital improvement" does not 
  3.34  include light rail transit or any activity related to it or a 
  3.35  recreation or sports facility building (such as, but not limited 
  3.36  to, a gymnasium, ice arena, racquet sports facility, swimming 
  4.1   pool, exercise room or health spa), unless the building is part 
  4.2   of an outdoor park facility and is incidental to the primary 
  4.3   purpose of outdoor recreation. 
  4.4      (c) "Commissioner" means the commissioner of trade and 
  4.5   economic development. 
  4.6      (d) "Metropolitan county" means a county located in the 
  4.7   seven-county metropolitan area as defined in section 473.121 or 
  4.8   a county with a population of 90,000 or more. 
  4.9      (e) "Population" means the population established by the 
  4.10  most recent of the following (determined as of the date the 
  4.11  resolution authorizing the bonds was adopted): 
  4.12     (1) the federal decennial census, 
  4.13     (2) a special census conducted under contract by the United 
  4.14  States Bureau of the Census, or 
  4.15     (3) a population estimate made either by the metropolitan 
  4.16  council or by the state demographer under section 4A.02. 
  4.17     (f) "Qualified indoor ice arena" means a facility that 
  4.18  meets the requirements of section 5. 
  4.19     (g) "Tax capacity" means total taxable market value, but 
  4.20  does not include captured market value. 
  4.21     Sec. 5.  [373.43] [FINANCING AUTHORITY; ICE FACILITIES.] 
  4.22     A county may issue and sell its general obligations under 
  4.23  chapter 475 to finance acquisition and construction of an indoor 
  4.24  ice arena intended to be used predominantly for youth athletic 
  4.25  activities if all the following conditions are met. 
  4.26     (a) The obligations are secured by a pledge of revenues 
  4.27  from the facility. 
  4.28     (b) The county has entered into a qualified agreement.  A 
  4.29  qualified agreement means: 
  4.30     (1) a joint powers agreement with the school district or 
  4.31  the city in which the facility is located that governs 
  4.32  ownership, operation, and maintenance of the facility; or 
  4.33     (2) an agreement with a nonprofit corporation, qualifying 
  4.34  under section 501(c)(3) of the Internal Revenue Code of 1986, 
  4.35  that provides that the corporation will operate, manage, and 
  4.36  maintain the facility; or 
  5.1      (3) any combination of agreements under clauses (1) and (2).
  5.2      (c) The agreements under paragraph (b) provide that all 
  5.3   parties must pay the principal and interest on obligations, if 
  5.4   the revenues for the facility are insufficient to pay the 
  5.5   obligations in full. 
  5.6      (d) The county board finds, based on analysis provided by a 
  5.7   professional experienced in finance, that the facility's 
  5.8   revenues and other available money will be sufficient to pay the 
  5.9   obligations, without reliance on a property tax levy or the 
  5.10  general purpose state aid of the county or any party to a joint 
  5.11  powers agreement. 
  5.12     Sec. 6.  [373.44] [REVENUE FINANCING AUTHORITY; ICE 
  5.13  FACILITIES.] 
  5.14     For the purpose of acquiring, leasing, equipping, or 
  5.15  maintaining land or buildings for use as an indoor ice arena as 
  5.16  defined in section 5, a county has the same authority and powers 
  5.17  granted to a city by section 471.191. 
  5.18     Sec. 7.  Minnesota Statutes 1994, section 462.358, 
  5.19  subdivision 2b, is amended to read: 
  5.20     Subd. 2b.  [DEDICATION.] The regulations may require that a 
  5.21  reasonable portion of any proposed subdivision be dedicated to 
  5.22  the public or preserved for public use as streets, roads, 
  5.23  sewers, electric, gas, and water facilities, storm water 
  5.24  drainage and holding areas or ponds and similar utilities and 
  5.25  improvements.  
  5.26     In addition, the regulations may require that a reasonable 
  5.27  portion of any proposed subdivision be dedicated to the public 
  5.28  or preserved for conservation purposes or for public use as 
  5.29  parks, recreational facilities as defined and outlined in 
  5.30  section 471.191, playgrounds, trails, wetlands, or open space; 
  5.31  provided that (a) the municipality may choose to accept an 
  5.32  equivalent amount in cash from the applicant for part or all of 
  5.33  the portion required to be dedicated to such public uses or 
  5.34  purposes based on the fair market value of the land no later 
  5.35  than at the time of final approval, (b) any cash payments 
  5.36  received shall be placed in a special fund by the municipality 
  6.1   used only for the purposes for which the money was obtained, (c) 
  6.2   in establishing the reasonable portion to be dedicated, the 
  6.3   regulations may consider the open space, park, recreational, or 
  6.4   common areas and facilities which the applicant proposes to 
  6.5   reserve for the subdivision, and (d) the municipality reasonably 
  6.6   determines that it will need to acquire that portion of land for 
  6.7   the purposes stated in this paragraph as a result of approval of 
  6.8   the subdivision. 
  6.9      Sec. 8.  Minnesota Statutes 1994, section 471.16, 
  6.10  subdivision 1, is amended to read: 
  6.11     Subdivision 1.  Any city, however organized, or any town, 
  6.12  county, school district, or any board thereof, or any 
  6.13  incorporated post of the American Legion or any other 
  6.14  incorporated veterans' organization, may operate such a program 
  6.15  independently, or they may cooperate among themselves or with 
  6.16  any nonprofit organization in its conduct and in any manner in 
  6.17  which they may mutually agree; or they may delegate the 
  6.18  operation of the program to a recreation board created by one or 
  6.19  more of them, and appropriate money voted for this purpose to 
  6.20  such board which may in turn support or cooperate with a 
  6.21  nonprofit organization.  Except for an indoor ice arena as 
  6.22  defined in section 5, in the case of school districts after May 
  6.23  15, 1978, the right to enter into such agreements with any other 
  6.24  corporation, board or body hereinbefore designated where bonds 
  6.25  are issued by the other party and revenue pledged for bonds 
  6.26  issued pursuant to section 471.191, shall be authorized only 
  6.27  upon obtaining the approval of a majority of the electors voting 
  6.28  on the question at a regular or special school election. 
  6.29     Sec. 9.  Minnesota Statutes 1994, section 475.58, 
  6.30  subdivision 1, is amended to read: 
  6.31     Subdivision 1.  [APPROVAL BY MAJORITY OF ELECTORS; 
  6.32  EXCEPTIONS.] Obligations authorized by law or charter may be 
  6.33  issued by any municipality upon obtaining the approval of a 
  6.34  majority of the electors voting on the question of issuing the 
  6.35  obligations, but an election shall not be required to authorize 
  6.36  obligations issued: 
  7.1      (1) to pay any unpaid judgment against the municipality; 
  7.2      (2) for refunding obligations; 
  7.3      (3) for an improvement, which obligation is payable wholly 
  7.4   or partly from the proceeds of special assessments levied upon 
  7.5   property specially benefited by the improvement, or of taxes 
  7.6   levied upon the increased value of property within a district 
  7.7   for the development of which the improvement is undertaken, 
  7.8   including obligations which are the general obligations of the 
  7.9   municipality, if the municipality is entitled to reimbursement 
  7.10  in whole or in part from the proceeds of such special 
  7.11  assessments or taxes and not less than 20 percent of the cost of 
  7.12  the improvement is to be assessed against benefited property or 
  7.13  is estimated to be received from such taxes within the district; 
  7.14     (4) payable wholly from the income of revenue producing 
  7.15  conveniences; 
  7.16     (5) under the provisions of a home rule charter which 
  7.17  permits the issuance of obligations of the municipality without 
  7.18  election; 
  7.19     (6) under the provisions of a law which permits the 
  7.20  issuance of obligations of a municipality without an election; 
  7.21     (7) to fund pension or retirement fund liabilities pursuant 
  7.22  to section 475.52, subdivision 6; and 
  7.23     (8) under a capital improvement plan under section 373.40; 
  7.24  and 
  7.25     (9) to fund facilities as provided in subdivision 5. 
  7.26     Sec. 10.  Minnesota Statutes 1994, section 475.58, is 
  7.27  amended by adding a subdivision to read: 
  7.28     Subd. 3.  [YOUTH ICE FACILITIES.] (a) A municipality may, 
  7.29  without regard to the election requirement under subdivision 1 
  7.30  or under any other provision of law or a home rule charter, 
  7.31  issue and sell obligations to finance acquisition, improvement, 
  7.32  or construction of an indoor ice arena intended to be used 
  7.33  predominantly for youth athletic activities if all the following 
  7.34  conditions are met: 
  7.35     (1) the obligations are secured by a pledge of revenues 
  7.36  from the facility; 
  8.1      (2) the facility and its financing are approved by 
  8.2   resolutions of at least two of the following governing bodies of 
  8.3   (i) the city in which the facility is located, (ii) the school 
  8.4   district in which the facility is located, or (iii) the county 
  8.5   in which the facility is located; 
  8.6      (3) the governing body of the municipality finds, based on 
  8.7   analysis provided by a professional experienced in finance, that 
  8.8   the facility's revenues and other available money will be 
  8.9   sufficient to pay the obligations, without reliance on a 
  8.10  property tax levy or the municipality's general purpose state 
  8.11  aid; and 
  8.12     (4) no petition for an election has been timely filed under 
  8.13  paragraph (b). 
  8.14     (b) At least 30 days before issuing obligations under this 
  8.15  subdivision, the municipality must hold a public hearing on the 
  8.16  issue.  The municipality must publish or provide notice of the 
  8.17  hearing in the same manner provided for its regular meetings.  
  8.18  The obligations are not exempt from the election requirement 
  8.19  under this subdivision, if: 
  8.20     (1) registered voters equal to ten percent of the votes 
  8.21  cast in the last general election in the municipality sign a 
  8.22  petition requesting a vote on the issue; and 
  8.23     (2) the petition is filed with the municipality within 20 
  8.24  days after the public hearing. 
  8.25     (c) This subdivision expires December 31, 1997. 
  8.26     Sec. 11.  [APPROPRIATIONS.] 
  8.27     Subdivision 1.  $2,500,000 is appropriated from the state 
  8.28  bond fund to the Minnesota amateur sports commission for at 
  8.29  least ten grants for ice centers, under Minnesota Statutes, 
  8.30  section 240A.09, of up to $250,000 each.  
  8.31     Subd. 2.  $400,000 is appropriated from the state bond fund 
  8.32  to the Minnesota amateur sports commission for an unspecified 
  8.33  number of renovation grants for existing arenas.  
  8.34     Subd. 3.  $22,000 is appropriated from the general fund to 
  8.35  the Minnesota amateur sports commission, for the biennium ending 
  8.36  June 30, 1997, for ice arena technical assistance. 
  9.1      Sec. 12.  [EFFECTIVE DATE.] 
  9.2      Sections 1, 2, and 4 to 10 are effective the day following 
  9.3   final enactment.  Section 3 is effective for sales made after 
  9.4   June 30, 1995.  Section 11 is effective July 1, 1995.