1.1 A bill for an act
1.2 relating to capital investment; appropriating money for a secured perimeter at the
1.3 Vikings stadium; authorizing the sale and issuance of appropriation bonds;
1.4 proposing coding for new law in Minnesota Statutes, chapter 16A.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [16A.9645] STADIUM SECURED PERIMETER APPROPRIATION
1.7BONDS.
1.8 Subdivision 1.Definitions.(a) The definitions in this subdivision apply to this section.
1.9 (b) "Appropriation bond" or "bond" means a bond, note, or other similar instrument of
1.10the state payable during a biennium from one or more of the following sources:
1.11 (1) money appropriated by law from the general fund in any biennium for debt service
1.12due with respect to obligations described in subdivision 2, paragraph (a);
1.13 (2) proceeds of the sale of obligations described in subdivision 2, paragraph (a);
1.14 (3) payments received for that purpose under agreements and ancillary arrangements
1.15described in subdivision 2, paragraph (d); and
1.16 (4) investment earnings on amounts in clauses (1) to (3).
1.17 (c) "Debt service" means the amount payable in any biennium of principal, premium, if
1.18any, and interest on appropriation bonds, and the fees, charges, and expenses related to the
1.19bonds.
1.20 (d) "Secured perimeter" means a system of physical improvements, equipment, and
1.21related costs including, but not limited to, anti-climb fencing or walling, gates, bollards,
1Section 1.
REVISOR JSK/HL 25-0438102/25/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2255
NINETY-FOURTH SESSION
Authored by Davids, Huot and Nadeau03/12/2025
The bill was read for the first time and referred to the Committee on State Government Finance and Policy 2.1crash barriers, utilities, concrete, and related improvements, including sensors, surveillance,
2.2metal detectors, or other monitoring equipment.
2.3 (e) "Stadium" means the professional football stadium in Minneapolis owned by the
2.4Minnesota Sports Facilities Authority.
2.5 Subd. 2.Authorization to issue appropriation bonds.(a) Subject to the limitations of
2.6this subdivision, the commissioner may sell and issue appropriation bonds of the state under
2.7this section for public purposes as provided by law, including for the purposes of financing
2.8the cost of a secured perimeter. Appropriation bonds may be sold and issued in amounts
2.9that, in the opinion of the commissioner, are necessary to provide sufficient money to the
2.10commissioner of administration under subdivision 7, not to exceed $30,000,000 net of costs
2.11of issuance, for the purposes as provided under this subdivision, and to pay debt service
2.12including capitalized interest, costs of issuance, costs of credit enhancement, or make
2.13payments under other agreements entered into under paragraph (d). Notwithstanding section
2.14129D.155, any money repaid to the commissioner of administration upon a sale or other
2.15disposition of property secured by the funds under this section shall be transferred to the
2.16commissioner and applied toward principal and interest on outstanding bonds.
2.17 (b) Proceeds of the appropriation bonds must be credited to a special secured perimeter
2.18appropriation bond proceeds fund in the state treasury. All income from investment of the
2.19bond proceeds, as estimated by the commissioner, is appropriated to the commissioner for
2.20the payment of principal and interest on the appropriation bonds.
2.21 (c) Appropriation bonds may be issued in one or more issues or series on the terms and
2.22conditions the commissioner determines to be in the best interests of the state, but the term
2.23on any series of appropriation bonds may not exceed 21 years. The appropriation bonds of
2.24each issue and series thereof shall be dated and bear interest, and may be includable in or
2.25excludable from the gross income of the owners for federal income tax purposes.
2.26 (d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time
2.27thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter
2.28into agreements and ancillary arrangements relating to the appropriation bonds, including
2.29but not limited to trust indentures, grant agreements, lease or use agreements, operating
2.30agreements, management agreements, liquidity facilities, remarketing or dealer agreements,
2.31letter of credit agreements, insurance policies, guaranty agreements, reimbursement
2.32agreements, indexing agreements, or interest exchange agreements. Any payments made
2.33or received according to the agreement or ancillary arrangement shall be made from or
2.34deposited as provided in the agreement or ancillary arrangement. The determination of the
2Section 1.
REVISOR JSK/HL 25-0438102/25/25 3.1commissioner, included in an interest exchange agreement, that the agreement relates to an
3.2appropriation bond, shall be conclusive.
3.3 (e) The commissioner may enter into written agreements or contracts relating to the
3.4continuing disclosure of information necessary to comply with or facilitate the issuance of
3.5appropriation bonds in accordance with federal securities laws, rules, and regulations,
3.6including Securities and Exchange Commission rules and regulations in Code of Federal
3.7Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
3.8with purchasers and holders of appropriation bonds set forth in the order or resolution
3.9authorizing the issuance of the appropriation bonds, or a separate document authorized by
3.10the order or resolution.
3.11 (f) The appropriation bonds are not subject to chapter 16C.
3.12 Subd. 3.Form; procedure.(a) Appropriation bonds may be issued in the form of bonds,
3.13notes, or other similar instruments, and in the manner provided in section 16A.672. In the
3.14event that any provision of section 16A.672 conflicts with this section, this section shall
3.15control.
3.16 (b) Every appropriation bond shall include a conspicuous statement of the limitation
3.17established in subdivision 6.
3.18 (c) Appropriation bonds may be sold at either public or private sale upon such terms as
3.19the commissioner shall determine are not inconsistent with this section and may be sold at
3.20any price or percentage of par value. Any bid received may be rejected.
3.21 (d) Appropriation bonds must bear interest at a fixed or variable rate.
3.22 (e) Notwithstanding any other law, appropriation bonds issued under this section shall
3.23be fully negotiable.
3.24 Subd. 4.Refunding bonds.The commissioner may issue appropriation bonds for the
3.25purpose of refunding any appropriation bonds then outstanding, including the payment of
3.26any redemption premiums on the bonds, any interest accrued or to accrue to the redemption
3.27date, and costs related to the issuance and sale of the refunding bonds. The proceeds of any
3.28refunding bonds may, at the discretion of the commissioner, be applied to the purchase or
3.29payment at maturity of the appropriation bonds to be refunded, to the redemption of the
3.30outstanding appropriation bonds on any redemption date, or to pay interest on the refunding
3.31bonds and may, pending application, be placed in escrow to be applied to the purchase,
3.32payment, retirement, or redemption. Any escrowed proceeds, pending such use, may be
3.33invested and reinvested in obligations that are authorized investments under section 11A.24.
3Section 1.
REVISOR JSK/HL 25-0438102/25/25 4.1The income earned or realized on the investment may also be applied to the payment of the
4.2appropriation bonds to be refunded or interest or premiums on the refunded appropriation
4.3bonds, or to pay interest on the refunding bonds. After the terms of the escrow have been
4.4fully satisfied, any balance of the proceeds and any investment income may be returned to
4.5the general fund or, if applicable, the special secured perimeter appropriation bond proceeds
4.6fund for use in any lawful manner. All refunding bonds issued under this subdivision must
4.7be prepared, executed, delivered, and secured by appropriations in the same manner as the
4.8appropriation bonds to be refunded.
4.9 Subd. 5.Appropriation bonds as legal investments.Any of the following entities may
4.10legally invest any sinking funds, money, or other funds belonging to them or under their
4.11control in any appropriation bonds issued under this section:
4.12 (1) the state, the investment board, public officers, municipal corporations, political
4.13subdivisions, and public bodies;
4.14 (2) banks and bankers, savings and loan associations, credit unions, trust companies,
4.15savings banks and institutions, investment companies, insurance companies, insurance
4.16associations, and other persons carrying on a banking or insurance business; and
4.17 (3) personal representatives, guardians, trustees, and other fiduciaries.
4.18 Subd. 6.No full faith and credit; state not required to make appropriations.The
4.19appropriation bonds are not public debt of the state, and the full faith, credit, and taxing
4.20powers of the state are not pledged to the payment of the appropriation bonds or to any
4.21payment that the state agrees to make under this section. Appropriation bonds shall not be
4.22obligations paid directly, in whole or in part, from a tax of statewide application on any
4.23class of property, income, transaction, or privilege. Appropriation bonds shall be payable
4.24in each fiscal year only from amounts that the legislature may appropriate for debt service
4.25for any fiscal year, provided that nothing in this section shall be construed to require the
4.26state to appropriate money sufficient to make debt service payments with respect to the
4.27appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and shall no
4.28longer be outstanding on the earlier of (1) the first day of a fiscal year for which the
4.29legislature shall not have appropriated amounts sufficient for debt service, or (2) the date
4.30of final payment of the principal of and interest on the appropriation bonds.
4.31 Subd. 7.Appropriation of proceeds.The proceeds of appropriation bonds issued under
4.32subdivision 2, paragraph (a), and interest credited to the special secured perimeter
4.33appropriation bond proceeds fund are appropriated as follows:
4Section 1.
REVISOR JSK/HL 25-0438102/25/25 5.1 (1) to the commissioner of administration for a grant to the Minnesota Sports Facilities
5.2Authority for a secured perimeter as specified in subdivision 2, paragraph (a); and
5.3 (2) to the commissioner for debt service on the bonds including capitalized interest,
5.4nonsalary costs of issuance of the bonds, costs of credit enhancement of the bonds, and
5.5payments under any agreements entered into under subdivision 2, paragraph (d), as permitted
5.6by state and federal law.
5.7 Subd. 8.Appropriation for debt service and other purposes.An amount needed to
5.8pay principal and interest on appropriation bonds issued under subdivision 2, paragraph (a),
5.9is appropriated each fiscal year from the general fund to the commissioner, subject to repeal,
5.10unallotment under section 16A.152, or cancellation, otherwise pursuant to subdivision 6,
5.11for deposit into the bond payments account established for such purpose in the special
5.12secured perimeter appropriation bond proceeds fund. The appropriation is available beginning
5.13in fiscal year 2025 and remains available through fiscal year 2046.
5.14 Subd. 9.Waiver of immunity.The waiver of immunity by the state provided for by
5.15section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any ancillary
5.16contracts to which the commissioner is a party.
5Section 1.
REVISOR JSK/HL 25-0438102/25/25