HF 2423

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to arts assistance; establishing a music
industry fund; providing for music industry grants and
support services; providing for rulemaking;
appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 129D.

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

Section 1.

new text begin [129D.17] MUSIC INDUSTRY SUPPORT.
new text end

new text begin Subdivision 1. new text end

new text begin Music industry fund. new text end

new text begin The board shall
promote the growth of the music industry in Minnesota by
establishing a music industry fund that will provide support for
music artists and music entrepreneurs in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin (a) The board shall award grants from
the music industry fund to music artists and music
entrepreneurs. The board shall award music industry fund grants
based upon the talent, income, need, and qualified business
plans of applicants. Any applicant selected by the board to
receive a grant shall be awarded no less than $1,000 and no more
than $50,000.
new text end

new text begin (b) Consistent with the board's duties pursuant to section
129D.04, the board shall adopt by rule (1) procedures to be
followed by the board in receiving and reviewing requests for
grants from the music industry fund, and (2) standards
consistent with this chapter to be followed by the board in the
distribution of music industry fund grants. At least one member
of any advisory board established to administer music industry
fund grants must have demonstrated experience in the music
industry.
new text end

new text begin (c) The board shall establish conditions for the receipt of
each music industry fund grant. Each grant recipient shall be
obligated to transfer to the state a percentage of the
recipient's gross sales for a specified period of time following
the receipt of a grant. The board shall require each grant
recipient to transfer to the board at least five percent of the
recipient's gross sales, but not more than ten percent of the
recipient's gross sales, for at least one year after receiving a
grant, but not for more than two years after receiving a grant.
new text end

new text begin (d) The amounts received by the board from music industry
fund grant recipients shall be used to replenish the music
industry fund.
new text end

new text begin Subd. 3. new text end

new text begin Support services. new text end

new text begin The board shall contract with
independent providers of music industry support services to give
performing music artists in Minnesota access to support services
at below market rates. At a minimum, the board shall contract
with service providers in the fields of publicity,
merchandising, radio, video, and management. Each contract
shall include terms providing that the board will refer
performing music artists to the service provider in exchange for
(1) the provider's agreement to provide services at below market
rates, and (2) the provider's agreement to give the board a
percentage of the provider's profits from a referral. The
amounts received by the board pursuant to contracts with support
service providers shall be used to replenish the music industry
fund.
new text end

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

new text begin $500,000 is appropriated from the general fund to the Board
of Arts to provide initial funding for the music industry fund.
This is a onetime appropriation and is not added to the board's
permanent base.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective August 1, 2005. Section 2 is
effective July 1, 2005.
new text end