HF 2403

as introduced - 90th Legislature (2017 - 2018) Posted on 03/14/2017 09:05am

A bill for an act
relating to legacy funding; creating the motion-picture investment incentive
program; appropriating money; proposing coding for new law in Minnesota
Statutes, chapter 116J.

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

Section 1.

new text begin [116J.999] MOTION-PICTURE PRODUCTION INVESTMENT
INCENTIVE PROGRAM.
new text end

new text begin (a) The commissioner of employment and economic development shall enter into an
agreement with the Association of Minnesota Motion Pictures (AMMP), to establish and
administer a film production and investment incentive program to produce feature-length
films and television series in Minnesota. Upon entering into the agreement with AMMP,
the commissioner must transfer the full amount of any appropriation from the arts and
cultural heritage fund to AMMP for investment in production of feature-length films and
television series.
new text end

new text begin (b) An agreement between the commissioner and AMMP must provide that the earnings
for each investment are to be repaid to the commissioner of management and budget for
transfer to the arts and cultural heritage fund and after the initial investment has been repaid,
50 percent of future revenues and earnings from each film or television series are to be paid
to the commissioner of management and budget for transfer to the general fund. The
agreement between the commissioner and AMMP must:
new text end

new text begin (1) ensure that AMMP will have ownership claims on revenue from each film and
television series funded under this section that are not of lower priority than or less favorable
than those of any other creditor or investor and that AMMP will have preferred position
financing for each film or television series;
new text end

new text begin (2) specify the schedule and method for AMMP to repay money to the commissioner
of management and budget;
new text end

new text begin (3) provide that after the state's investment in a film or television series has been repaid
to the commissioner of management and budget, at least 50 percent of the revenue from the
film or television series received by AMMP is returned to the general fund; and
new text end

new text begin (4) specify that AMMP will provide an annual accounting to the commissioner of
employment and economic development of spending and investment of arts and cultural
heritage funds.
new text end

new text begin (c) A film or television series may receive funding under this section only if:
new text end

new text begin (1) the project has a final shooting script, final budget, and final schedule, with a producer,
a director, and the principal cast under contract;
new text end

new text begin (2) all funding for the project, other than funding to be provided under this section, is
in place and documented;
new text end

new text begin (3) the amount of funding requested under this section is not more than 50 percent of
the total direct budget for the project;
new text end

new text begin (4) the project has a documented distribution agreement in place, through a distributor
that AMMP determines is well-known and well respected in the motion picture industry;
new text end

new text begin (5) the applicant documents the Minnesota-based personnel, businesses, locations, and
other related activities that will be used in production;
new text end

new text begin (6) the applicant guarantees credits on the project and on all relevant publicity relating
to the project that acknowledges funding from the arts and cultural heritage fund;
new text end

new text begin (7) no more than six percent of the amount provided to AMMP under this section each
fiscal year is spent by AMMP for its administrative costs; and
new text end

new text begin (8) AMMP ensures that a majority of the funds allocated for each project is spent in the
state of Minnesota.
new text end

new text begin (d) Notwithstanding section 129D.17, subdivision 2, paragraph (f), AMMP may use
money appropriated from the arts and cultural heritage fund for projects and activities
necessary to the mission of AMMP outside of Minnesota.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2018 is appropriated from the arts and cultural heritage fund to the
commissioner of employment and economic development for a grant to the motion-picture
production investment incentive program under Minnesota Statutes, section 116J.999. The
commissioner must transfer the appropriation to AMMP pursuant to Minnesota Statutes,
section 116J.999, once an agreement has been signed.
new text end