Section 1 [Purpose] describes that the purpose of the act is to assist the Minnesota Vikings in securing financing to build a stadium that would be privately owned and operated.

Section 2 [Definitions] defines terms for new sections of law.

Section 3 [Stadium User Fees] Subdivision 1 imposes a ten percent fee on the sale or licensing of certain items related to operation of the stadium.  Under Minnesota sales tax law, taxable goods and services are subject to either sales or use tax, but not both. 

Subdivision 2 provides that a compensating use fee applies to goods subject to the sales fee, if the sales fee is not imposed. 

Subdivision 4 provides that statutes pertaining to sales tax law govern the various administrative and enforcement provisions of the sales and user fees.  

Subdivisions 3 and 5 require the Minnesota Vikings to remit the proceeds of the sales and user fees to the Commissioner of Revenue, to be deposited in a special stadium revenue account to make payments of principal and interest on bonds issued in Section 8.  Revenues raised by user fees that exceed the amount needed to make payments on the bonds will be deposited in a special stadium debt service reserve account, or, if the reserve account is fully funded, be applied toward early payoff of the bonds.   

Subdivision 6 requires that revenues from these user fees be used to pay bonds.  If the revenues raised exceed the amount needed, the remaining revenues shall be deposited in a special stadium debt service reserve account until it is fully funded and then applied toward pay-off of the bonds.

Subdivision 7 sunsets user fees when the bonds are repaid.

Section 4 [Local Sales Taxes] states that no local sales or use taxes may be imposed at the stadium site, except for the general sales taxes authorized under current law. 

Section 5 [City Requirements] requires the city in which the stadium is constructed to issue liquor licenses for the premises of the stadium.

Section 6 [Criteria and Conditions] requires that the stadium be located in Minnesota.  All home games must be played in the stadium for 30 years or until the bonds issued under this act are repaid, whichever is longer.  The team is required to provide access to the Commissioner of Management and Budget to audit its financial records.  The Commissioner of Management and Budget must negotiate a public sector project labor agreement to prevent strikes during construction of the stadium.  If the team dissolves or relocates, the team must cease use of the Vikings name, logo, and colors, and must transfer to the state the Vikings heritage and records, including the name, logo, colors, history, playing records, trophies, and memorabilia.

Section 7 [Appropriations] appropriates $300,000,000 from the special stadium revenue bond proceeds account that is funded by user fees set forth in Section 3.  The appropriation is made to the team and is contingent upon execution of an agreement between the state and the team memorializing the team obligations under this act.   An unspecified amount is appropriated for public infrastructure.

   Section 8 [Bond sale] Subdivisions 1, 2, and 4 require the Commissioner of Management and Budget to issue taxable revenue bonds in the amount up to $300,000,000 to provide the money appropriated to the team in Section 7 and costs related to the bonds.  Certain procedures related to issuance and refunding of the bonds are set forth. 

Subdivision 3  provides that debt service on the bonds is payable only from revenue from the user fees of Section 3 and other revenue pledged to payment of the bonds. 

Subdivision 5 provides that these bonds are not public debt and are not backed by the full faith and credit of the state. A reserve account will be maintained with a balance equal to the annual debt service payment. The reserve account will be funded with contributions from private parties and from revenues from user fees set forth in Section 3.  If the special stadium revenue fund has a shortfall in any year, the commissioner may request appropriation from the reserve account. 

Subdivisions 6 and 7 spell out the public purpose for the issuance of these bonds and remedies available to the state if the team breaches its contract. The Legislature finds there is a public purpose for the state to issue revenue bonds. The Legislature finds that the team’s obligation to play all of its home games in the stadium serves a unique public purpose and that its value is unquantifiable.  Therefore, specific performance and injunctive relief is an essential remedy for breach of contract.

Subdivisions 8, 9, and 10 authorize certain actions of the commissioner. The commissioner may contract with and appoint a trustee for bondholders. Any pledge made by the commissioner is valid and binding. The commissioner may purchase bonds of the commissioner at a price determined by the provided formula.

Subdivision 11 requires the state to pledge and agree with bond holders that the state will not limit or alter the rights vested in the commissioner to fulfill the terms of agreements made with bondholders.

Section 9 [Building Materials; Exemption] exempts materials and supplies used in the construction of the stadium and public infrastructure from certain taxes.

Section 10 [Cities] amends the liquor license law to allow a city to issue a liquor license to sports facilities hosting National Football League games.

Section 11 [Expiration Date] sunsets this article (i.e. Sections 1 to 10 of the bill) May 18, 2014, if no agreement between the state and the team is reached.