APRIL 2, 2004 VOLUME 21, NUMBER 9 In this issue: 0.08 HEADS TO CONFERENCE COMMITTEE STADIUM BILL ADVANCES, TOUGHER PENALTIES, AND MORE HF3142-3159 ESSION S Weekly Session Weekly is a nonpartisan publication of the Minnesota House of Representatives Public Information Services. During the 2003-2004 Legislative Session, each issue reports daily House ac- tion between Thursdays of each week, lists bill introductions and upcoming commit- tee meeting schedules, and provides other information. The publication is a service of the Minnesota House. No fee. CONTENTS To subscribe, contact: Minnesota House of Representatives IGHLIGHTS Public Information Services H 175 State Office Building Agriculture • 5 Environment • 9 Local Government • 12 St. Paul, MN 55155-1298 (651) 296-2146 or Business • 5 Government • 9 Metro Affairs • 15 1-800-657-3550 Crime • 5 Greater Minnesota • 10 Retirement • 15 TTY (651) 296-9896 Education • 6 Housing • 11 Safety • 15 Elections • 8 Human Services • 11 Taxes • 16 Employment • 8 Law • 12 Transportation • 17 Director Barry LaGrave Editor/Assistant Director FEATURES Michelle Kibiger Assistant Editor AT ISSUE: CRIME — The House passed a judiciary finance omnibus bill Mike Cook containing tougher sentences for sex offenders and methamphetamine- related crimes. • 18 Art & Production Coordinator Paul Battaglia AT ISSUE: SAFETY — A bill that reduces the legal limit for drunken driving Writers offenses from 0.10 percent to 0.08 percent has passed both the House and Miranda Bryant, Patty Janovec, Senate, but a dispute over its effective date and funding is sending it to a Tom Lonergan, Mary Kay Watson, conference committee. • 19 Nicole Wood Chief Photographer POLICY — A number of states are considering raising the cigarette tax, and Tom Olmscheid redirecting tobacco endowment funds, to help balance budgets. • 20 Photographers Andrew VonBank, Lisa Marie Sanders Staff Assistants Christy Novak, Aaron Hoffman DEPARTMENTS/RESOURCES Session Weekly (ISSN 1049-8176) is published weekly during the legislative session by the It’s A Fact: Compact negotiation • 4 Bill Introductions (HF3142-HF3159) • 23 Minnesota House of Representatives Public Resources: State and Federal Offices • 21 What’s on the Web • 23 Information Services, 175 State Office Building, Governor’s Desk (Feb. 2 - April 1) • 22 Minnesota Index: Stadium financing • 24 St. Paul, MN 55155-1298. Periodicals postage paid at St. Paul, MN, and at additional mailing offices. POSTMASTER: Send address changes to Session Weekly, Public Information Services, Minnesota House of Representatives, 175 State Office Building, St. Paul, MN 55155-1298. Printed on recycled paper which is 50% recycled, 30% post-consumer content. On the cover: A State Capitol visitor enters the west end of the building, near the governor’s office, as the sun streams through the doors on March 31. —Photo by Tom Olmscheid 2 April 2, 2004 IRST READING F★ ★ ★ furnishing of each stadium. Thus far, backers of the bill have defeated Home field advantages amendments that would force the teams to pay Local taxes, state funding among several ideas for funding their proposed one-third share of stadium project costs in cash. future professional sports stadiums Neither team has said how much it would be willing to pay up front. BY TOM LONERGAN including a general sales and use tax in the The bill proposes that team contributions s House members continue to debate the stadiums’ host communities. may include “up-front cash contributions, pros and cons of new professional base Minneapolis, assisted by Hennepin County, guaranteed annual payments, and assignments Aball and football stadiums, they may once and St. Paul are potential sites for the proposed of naming rights and permanent seat licenses.” again face a puzzling characteristic of the long- baseball stadium. Anoka County and Blaine are A Stang-proposed amendment, approved by standing issue. potential partners for a new football stadium. the governmental operations committee, The “conundrum,” as Dan McElroy, Gov. The authority, according to the bill, would would allow the authority to assess each team Tim Pawlenty’s chief of staff, put it in recent be required to set a maximum public invest- up to $400,000 for the new metropolitan committee testimony, is that polls show a solid ment for each stadium that includes the rev- agency’s startup and site selection costs. majority of citizens like watching professional enue contribution from the local government Stang said the proposed stadium authority sports in Minnesota, but oppose paying taxes host community. Authority negotiated financ- has to have “different tools” to negotiate fi- to support new stadiums. ing documents and leases with the teams must nancing details with the teams. “Negotiating Now awaiting action by the House Taxes be approved by the state finance commissioner financing through the Legislature is very dif- Committee, the public/private shared financ- before bonds could be issued. ficult,” Stang said. “That’s why (past stadium) ing structure of possible new stadiums for the The Metropolitan Council would issue an proposals didn’t work.” Minnesota Twins and Minnesota Vikings, as as yet unspecified amount of revenue bonds Local taxes may be the most controversial outlined in HF3089, sponsored by Rep. Doug for design, construction, and equipment stadium financing method. Stang (R-Cold Spring), will take center stage. The bill would allow a host community to “Residents want the teams to stay here,” impose taxes on stadium event tickets, restau- Stang told the House Governmental Opera- rants and prepared food, alcoholic beverages, tions and Veterans Affairs Policy Committee lodging, places of amusement, sports memora- March 29. “The issue is how to do the financ- bilia sold within the stadiums, and a general sales ing. This bill does the financing in a respon- and use tax on goods and services within its ju- sible way.” risdiction. A local government’s sales tax increase Building a stadium for each team could proposal is subject to legislative approval. exceed $1 billion. Stadium opponents have been adamant in The committee referred the bill without fur- two committee hearings that any new local ther recommendation to the taxes committee, taxes to finance new stadiums should require which has yet to schedule a hearing. A compan- voter referendum approval. ion bill (SF2536), sponsored by Sen. Steve Kelley “Not doing so will be passing the bill to tax- (DFL-Hopkins), awaits committee action. payers,” said Kenneth Zapp, an economics pro- The bill would create a Minnesota Stadium fessor at Metropolitan State University in St. Paul. Authority with responsibility for site selection, Local governments could also use local tax lease negotiation, financing, ownership, and increment financing or sale of development operation of two proposed stadiums to be lo- rights to raise revenue for a stadium project. cated in the Twin Cities metropolitan area. This type of financing bases taxes on a for- The proposed authority, after choosing sites mula linked to incremental increases in an for the two stadiums from proposals submit- enterprise’s value to capture revenue for pub- ted by prospective host communities, would lic costs such as infrastructure improvements. negotiate lease agreements with the teams that Among other revenue generating methods must be in place before construction begins. the bill proposes would be to create “stadium PHOTO BY ANDREW VONBANK tax increment financing” and investing an un- Through the lease agreements, the author- Wearing a Minnesota Vikings cap, jersey, and ity would negotiate the specifics of the pub- jacket, Larry Spooner of Plymouth testifies before specified amount of bond proceeds in an ar- lic-private financing structure proposed in the the House Governmental Operations and Veter- bitrage model endowment account. bill. Stadium financing would include team ans Affairs Policy Committee March 29 in support The Twins have estimated that stadium tax contributions, fan and player generated sta- of a bill that would establish a metropolitan sta- increment financing could raise about dium authority to oversee construction of stadi- $110 million a year. dium revenue, and as many as eight local taxes, ums for the Vikings and Minnesota Twins. Session Weekly 3 Stadium taxes would include employee withholding taxes from players’ salaries, as well as ticket and vendor/concessionaires sales taxes. The bill proposes a formula whereby every March 1, the state revenue commissioner Compact negotiation would certify the amount of stadium taxes Perpich, then Carlson, negotiated bulk of American Indian gaming agreements collected in the new facilities during the prior Many of the same challenging issues be- between Aug. 2, 1989 and Oct. 13, 1989. The calendar year. That amount would be com- ing addressed today with regard to Ameri- committee indicated its willingness to en- pared with a baseline amount of average rev- can Indian gaming and relations between ter into compacts governing Class III video enue of Metrodome taxes linked to baseball tribes and the state were the basis for dis- games of chance, and perhaps at a future or football games played there during the three cussions between tribal leaders and mem- date, lotteries, according to the report. years prior to opening a new stadium. bers of a 1991 Tribal-State Compact The committee indicated it could not The difference — officials anticipate a new Negotiation Committee. negotiate any other form of Class III gam- stadium’s tax increment revenue would be “It is likely that as American Indian gam- ing, because it was not permitted by the state higher than the baseline — would help pay off bling continues to expand, the issues facing constitution. The tribes, according to the the stadium bonds. The bill provides that any the State will expand as well,” said the com- report, requested sports bookmaking and stadium taxes in excess of the negotiated mittee report to the Legislature on the sta- off-track betting on horse races. amount would go to the state’s general fund. tus of American Indian gaming in Perpich signed compacts with seven Stadium taxes for baseball would be re- Minnesota.