HF 3141

as introduced - 86th Legislature (2009 - 2010) Posted on 02/24/2010 04:19pm

A bill for an act
relating to the film production jobs program; establishing a revolving
account funded with taxes paid by assisted productions; modifying reporting
requirements; appropriating money; amending Minnesota Statutes 2008, section
116U.26; proposing coding for new law in Minnesota Statutes, chapter 16A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [16A.726] FILM PRODUCTION JOBS ACCOUNT.
new text end

new text begin (a) A film production jobs account is created to provide funding for the film
production jobs program under section 116U.26.
new text end

new text begin (b) Before the end of each fiscal year, the commissioner shall transfer to the account
the amount of taxes reported by the Minnesota Film and TV Board under section 116U.26
as being paid by productions receiving payments under the film production jobs program
in the prior fiscal year.
new text end

new text begin (c) Amounts in the account are appropriated to the Minnesota Film and TV Board
for purposes of the film production jobs program and remain available until expended.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning in fiscal year 2012.
new text end

Sec. 2.

Minnesota Statutes 2008, section 116U.26, is amended to read:

116U.26 FILM PRODUCTION JOBS PROGRAM.

(a) The film production jobs program is created. The program shall be operated
by the Minnesota Film and TV Board with administrative oversight and control by the
director of Explore Minnesota Tourism. The program shall make payment to producers
of feature films, national television or Internet programs, documentaries, music videos,
and commercials that directly create new film jobs in Minnesota. To be eligible for a
payment, a producer must submit documentation to the Minnesota Film and TV Board
of expenditures for production costs incurred in Minnesota that are directly attributable
to the production in Minnesota of a film product. new text begin The documentation must include
detailed information sufficient to verify the following amounts of taxes paid as part of
the production costs:
new text end

new text begin (1) withholding tax under section 290.92; and
new text end

new text begin (2) sales and use tax under chapter 297A.
new text end

The Minnesota Film and TV Board shall make recommendations to the director of
Explore Minnesota Tourism about program payment, but the director has the authority to
make the final determination on payments. The director's determination must be based
on proper documentation of eligible production costs submitted for payments. No more
than five percent of the funds appropriated for the program in any year may be expended
for administration.

(b) For the purposes of this section:

(1) "production costs" means the cost of the following:

(i) a story and scenario to be used for a film;

(ii) salaries of talent, management, and labor, including payments to personal
services corporations for the services of a performing artist;

(iii) set construction and operations, wardrobe, accessories, and related services;

(iv) photography, sound synchronization, lighting, and related services;

(v) editing and related services;

(vi) rental of facilities and equipment; or

(vii) other direct costs of producing the film in accordance with generally accepted
entertainment industry practice; and

(2) "film" means a feature film, television or Internet show, documentary, music
video, or television commercial, whether on film, video, or digital media. Film does not
include news, current events, public programming, or a program that includes weather
or market reports; a talk show; a production with respect to a questionnaire or contest; a
sports event or sports activity; a gala presentation or awards show; a finished production
that solicits funds; or a production for which the production company is required under
United States Code, title 18, section 2257, to maintain records with respect to a performer
portrayed in a single-media or multimedia program.

(c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board
may make reimbursements of up to 20 percent of film production costs for films that incur
production costs in excess of $5,000,000 in Minnesota within a 12-month period.

new text begin (d) By February 15, the board shall report to the commissioner of management and
budget the amount of state withholding tax and sales tax reported as paid by productions
receiving payments under this program during the prior fiscal year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 3. new text begin FILM PRODUCTION JOBS PROGRAM APPROPRIATION.
new text end

new text begin $....... is appropriated from the arts and cultural heritage fund to the Minnesota Film
and TV Board for purposes of the film production jobs program. This appropriation
is for fiscal year 2011 and is a onetime appropriation and does not become part of the
board's base budget.
new text end