1.1 	A bill for an act
1.2 	relating to airlines; requiring the state to declare agreements in default under 
1.3 	certain circumstances; requiring the state to pursue contractual, legal, and 
1.4 	equitable remedies for default.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. AGREEMENTS WITH AIRLINE COMPANY.
 1.7 		Subdivision 1.Definitions. (a) "Airline company" means an airline company that, 
1.8 	on the effective date of this section, maintains a hub located at the Minneapolis-St. Paul 
1.9 	International Airport, and maintains its corporate headquarters in this state, together with 
1.10 	all related entities that are parties to agreements within the meaning of this section, as 
1.11 	lessees, affiliates, holding companies, or subsidiaries and successor entities.
1.12 	(b) "Agreements" means financing agreements, purchase agreements, lease 
1.13 	agreements, mortgage agreements, and related documents between the airline company 
1.14 	and the state or Metropolitan Airports Commission, relating to a financing transaction 
1.15 	executed in 1992 and amended in 1994 and subsequent years.
1.16 	(c) "Corporate headquarters" means the principal office of the airline company from 
1.17 	which its business is conducted and the principal office of the chief executive officer 
1.18 	of the airline company.
1.19 		Subd. 2.Declaration of default. The state, as signatory or beneficiary of the 
1.20 	agreements, shall seek contractual, legal, and equitable remedies promptly upon the 
1.21 	occurrence or imminent occurrence of:
1.22 	(1) a consolidation or merger involving the airline company, unless the resulting 
1.23 	entity assumes in writing satisfactory to the state, not later than the date of the 
1.24 	consolidation or merger, all obligations of the airline company under the agreements;
2.1 	(2) failure to maintain the airline company's corporate headquarters in the 
2.2 	Minneapolis-St. Paul metropolitan area;
2.3 	(3) a reduction or change in the airline company's employment, operations, or 
2.4 	facilities in the Minneapolis-St. Paul metropolitan area and in this state that is not 
2.5 	substantially proportional to comparable reductions or changes in the airline company's 
2.6 	other domestic business locations;
2.7 	(4) failure to continue operation of a major airline company hub in Minnesota; or
2.8 	(5) any other material breach of the agreements, including the public policy 
2.9 	covenants.
2.10 		Subd. 3.Metropolitan Airports Commission. The Metropolitan Airports 
2.11 	Commission may not amend the agreements or settle any claims arising out of the 
2.12 	agreements without prior approval by law.

2.13 	EFFECTIVE DATE. This section is effective the day following final enactment.