Minnesota Legislature
SF 2020
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to state investments; authorizing investment
of state funds in films to be produced in Minnesota;
amending Minnesota Statutes 2004, section 11A.24, by
adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 11A.24, is
amended by adding a subdivision to read:
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Investment in films to be produced in
minnesota.
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(a) As used in this subdivision:
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(1) "film project" means a single media or multimedia
program, including advertising messages, fixed on film,
videotape, computer disc, laser disc, or other similar delivery
medium from which the program can be viewed or reproduced and
that is intended to be exhibited in theaters; licensed for
exhibition by individual television stations, groups of
stations, networks, cable television stations, or other means;
or licensed for the home viewing market; and
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(2) "Minnesota film private equity fund" means any limited
partnership, limited liability company, or corporation organized
and operating in the United States that:
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(i) has as its primary business activity the investment of
assets in return for equity in film projects produced wholly or
partly in this state;
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(ii) holds out the prospects for capital appreciation from
those investments; and
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(iii) accepts investments only from accredited investors as
that term is defined in section 2 of the federal Securities Act
of 1933, as amended, and rules promulgated under that section.
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(b) The state board may invest funds up to $75,000,000 in
Minnesota film private equity funds or Minnesota film projects.
Not more than $7,500,000 may be invested in any one Minnesota
film private equity fund or any one Minnesota film project.
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(c) The state board may make investments under this
subdivision only after a review by the commissioner of
employment and economic development and the Minnesota Film
Board. The state board may make debt or equity investments
under this subdivision only in film projects or Minnesota film
private equity funds that invest only in film projects that:
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(1) are filmed wholly or substantially in this state;
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(2) have shown to the satisfaction of the commissioner of
employment and economic development that a distribution contract
is in place with a reputable distribution company;
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(3) have agreed that, while filming in this state, a
majority of the production crew will be residents of this state;
and
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(4) have provided adequate security for the investment as
provided in paragraph (d).
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(d) "Adequate security" means either:
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(1) a completion bond that has been approved by the
commissioner of employment and economic development;
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(2) a full, unconditional, and irrevocable guarantee of
repayment of the invested amount in favor of the fund whose
assets have been invested in the film project:
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(i) from an entity that has a credit rating of not less
than Baa or BBB by a national rating agency;
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(ii) from a substantial subsidiary of an entity that has a
credit rating of not less than Baa or BBB by a national rating
agency;
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(iii) from a United States incorporated bank with a credit
rating of not less than A by a national rating agency in the
form of a full, unconditional, and irrevocable letter of credit;
or
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(iv) from a substantial and solvent entity as determined by
the state board in accordance with its standards and practices;
or
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(3) investments in the film project by other sources
approved by the state board equal to at least one-third of the
estimated total production costs.
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