HF 1930

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 01:53pm

A bill for an act
relating to arts and cultural heritage; providing a process for community
ownership of the Minnesota Orchestra; proposing coding for new law as
Minnesota Statutes, chapter 4B.

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

Section 1.

new text begin [4B.01] PURPOSE.
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new text begin The legislature determines that:
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new text begin (1) having a world-renowned orchestra is an important asset to the state of
Minnesota, and ensuring that such a highly acclaimed orchestra is present in Minnesota
is an important public purpose;
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new text begin (2) providing broad-based local ownership of an orchestra develops trust among
patrons, taxpayers, and the orchestra's musicians and other staff, and helps ensure this
important asset will retain its high level of accomplishment and renown;
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new text begin (3) providing community ownership of an orchestra ensures that the artistic benefits
and any financial benefits will accrue to the community; and
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new text begin (4) enacting legislation providing for community ownership indicates to musicians
continuing support for a world-renowned orchestra in Minnesota.
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Sec. 2.

new text begin [4B.02] ACQUISITION.
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new text begin (a) The governor must attempt to facilitate the formation of a corporation or other
form of business organization to acquire the Minnesota Orchestra and to identify a private
governing structure for the orchestra. The business organization formed to acquire the
orchestra shall have a capital structure in compliance with the following provisions:
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new text begin (1) no individual or entity may own more than five percent of the common stock of
the corporation; and
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new text begin (2) at least 50 percent of the ownership of the stock must be sold to members of the
general public in a general solicitation through which no person or entity may own more
than one percent of common stock of the corporation.
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new text begin (b) The governance documents of the business organization may provide for a class
of preferred stock in addition to common stock, and may specify what rights accrue to
each class of stock.
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new text begin (c) The governance documents of the business organization must ensure that artistic
decisions are made only by persons employed to make those decisions, and not by the
board of directors of the governing entity.
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Sec. 3. new text begin EFFECTIVE DATE.
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new text begin Sections 1 and 2 are effective the day following final enactment.
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