SF 1970

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:24am

A bill for an act
relating to film production; authorizing film production investment grants;
requiring reports; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 116U.

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

Section 1.

new text begin [116U.27] FILM PRODUCTION INVESTMENT GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Board" means the Minnesota Film and TV Board.
new text end

new text begin (c) "Qualifying film production" means a motion picture that is certified by the
board as made wholly in Minnesota and that has not received more than $1,000,000 in
investments that have resulted in receipt of grants under this section.
new text end

new text begin (d) "Qualified investment" means an amount of cash used to pay qualified production
expenses that is provided by an investor who does not have any financial interest in the
production company responsible for filming the motion picture.
new text end

new text begin (e) "Motion picture" means a feature length film, whether shot on film or digital
video, or a television series with a national distribution agreement, for theatrical or
television viewing or as a television pilot, but does not include television coverage of
news and athletic events.
new text end

new text begin (f) "Qualified production expenses" means preproduction, production, and
postproduction expenditures incurred in Minnesota that are directly used in a qualifying
film production including, without limitation, set construction and operation; wardrobes,
make-up, accessories, and related services; costs associated with photography and sound
synchronization, lighting, and related services and materials; editing and related services;
rental of facilities and equipment; leasing of vehicles; costs of food and lodging; digital or
tape editing, film processing, transfer of film to tape or digital format, sound mixing, and
special and visual effects; total aggregate payroll; and music, if performed, composed, or
recorded by a Minnesota musician or released or published by a Minnesota-domiciled and
headquartered company. Qualified production expenses do not include:
new text end

new text begin (1) postproduction costs for marketing and distribution;
new text end

new text begin (2) any amounts that are later reimbursed;
new text end

new text begin (3) any costs related to the transfer of credits; and
new text end

new text begin (4) any amounts paid to persons or entities as a result of their participation in profits
from the exploitation of the production.
new text end

new text begin Subd. 2. new text end

new text begin Film investment grants authorized. new text end

new text begin The board is authorized to make
grants to qualifying film productions that have obtained at least $100,000 in qualified
investments. The grant amount equals 25 percent of qualified investments obtained by the
qualifying film production, up to a maximum grant of $100,000.
new text end

new text begin Subd. 3. new text end

new text begin Application; preliminary certification. new text end

new text begin (a) A qualifying film production
must apply to the board in order to receive a grant. The application must be in a form and
manner prescribed by the board. The application must include information on qualified
investments of at least $100,000 obtained or anticipated by the qualifying film production.
new text end

new text begin (b) The board must evaluate applications for grants using criteria agreed on by
the board, including, but not limited to:
new text end

new text begin (1) the potential for job creation of the qualifying film production; and
new text end

new text begin (2) the ability of the qualifying film production to attract private investment.
new text end

new text begin The board may consult with outside experts, as needed, to best evaluate applications.
The board may only certify applications that have obtained or anticipate obtaining at
least $100,000 in qualified investments.
new text end

new text begin (c) The board must make preliminary certification of applications meeting the
criteria semiannually during a fiscal year, with not more than $500,000 of preliminary
certifications issued each time, unless preliminary certifications for that fiscal year have
been canceled as provided under subdivision 4. The preliminary certification reserves a
grant equal to 25 percent of the qualified investments up to the maximum of $100,000.
new text end

new text begin Subd. 4. new text end

new text begin Award of grant. new text end

new text begin (a) A qualifying film production that has received
preliminary certification under subdivision 3 must demonstrate to the board receipt of
the specified amount of qualified investments within 60 days of receiving preliminary
certification.
new text end

new text begin (b) The board must provide a grant equal to 25 percent of qualified investments up
to the maximum grant of $100,000 within 30 days of verifying that the qualifying film
production has received the qualified investments. The board may not award more than
$1,000,000 in grants during the fiscal year.
new text end

new text begin (c) If a qualifying film production fails to demonstrate receipt of the specified
amount of qualified investments within 30 days of receiving preliminary certification, the
preliminary certification is canceled and the reserved grant amount is available to the
board for grants to other qualifying film productions.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By February 1, 2011, and each following year, the board must
report to the committees of the legislature with jurisdiction over economic development
issues, in compliance with sections 3.195 and 3.197, on the number and amount of grants
awarded under this section during the previous fiscal year, and the impact on economic
activity in the state.
new text end

Sec. 2. new text begin APPROPRIATION; FILM PRODUCTION INVESTMENT GRANTS.
new text end

new text begin $....... in fiscal year 2010 and $....... in fiscal year 2011 are appropriated from the
general fund to the Minnesota Film and TV Board to make film production investment
grants as provided in Minnesota Statutes, section 116U.27.
new text end