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Minnesota Legislature

Office of the Revisor of Statutes

SF 1983

as introduced - 91st Legislature (2019 - 2020) Posted on 03/05/2019 09:07am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to economic development; creating a moving image industry incentive
program; authorizing rulemaking; 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.9791] MOVING IMAGE INDUSTRY INCENTIVE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Grant program established. new text end

new text begin The commissioner of employment and
economic development shall administer a grant program for production companies that
produce moving image projects in the state, to the extent that gifts, grants, donations, or
other money, including appropriations, are made available to the commissioner for this
purpose.
new text end

new text begin Subd. 2. new text end

new text begin Application procedure. new text end

new text begin The commissioner shall develop a procedure for the
submission of grant applications and the awarding of grants under this section. The procedure
must include:
new text end

new text begin (1) methods by which the production company's and an individual's Minnesota residency
can be proven; and
new text end

new text begin (2) requirements for the submission, before production of a moving image project begins,
of:
new text end

new text begin (i) an estimate of total in-state spending;
new text end

new text begin (ii) the shooting script or story board, as applicable;
new text end

new text begin (iii) the estimated number of jobs for cast and production crew during the production
and completion of a moving image project; and
new text end

new text begin (iv) any other information considered useful and necessary by the commissioner for an
adequate and accurate analysis of a production company's in-state spending.
new text end

new text begin Subd. 3. new text end

new text begin Gifts, grants, donations. new text end

new text begin The commissioner may accept gifts, grants, and
donations for the purpose of implementing this section.
new text end

new text begin Subd. 4. new text end

new text begin Content. new text end

new text begin The commissioner is not required to act on any grant application and
may deny an application because of inappropriate content or content that portrays Minnesota
or Minnesotans in a negative fashion, as determined by the commissioner, in a moving
image project. In determining whether to act on or deny a grant application, the commissioner
shall consider general standards of decency and respect for the diverse beliefs and values
of the citizens of Minnesota.
new text end

new text begin Subd. 5. new text end

new text begin Requirements. new text end

new text begin Before a grant is awarded under this section, the commissioner
shall:
new text end

new text begin (1) require a copy of the final script;
new text end

new text begin (2) require an audit of the completed in-state spending, which must be completed by a
third-party auditor at the expense of the production company;
new text end

new text begin (3) determine if any substantial changes occurred during production on a moving image
project to include content described by subdivision 4; and
new text end

new text begin (4) verify the production company's completed in-state spending pursuant to the audit
under clause (2) matches the grant to be awarded.
new text end

new text begin Subd. 6. new text end

new text begin Qualification. new text end

new text begin To qualify for a grant under this section:
new text end

new text begin (1) a production company must be based in Minnesota and have spent a minimum of
$250,000 in in-state spending for a film or television program;
new text end

new text begin (2) at least 70 percent of the production crew, actors, and extras for a moving image
project must be Minnesota residents unless the commissioner determines and certifies in
writing that a sufficient number of qualified crew, actors, and extras are not available to the
company at the time principal photography begins;
new text end

new text begin (3) at least 60 percent of the moving image project must be filmed in the state; and
new text end

new text begin (4) a production company must submit to the commissioner an expended budget and
audit required under subdivision 5, clause (2), in a format prescribed by the commissioner,
that reflects all in-state spending and includes all receipts, invoices, pay orders, and other
documentation considered necessary by the commissioner to accurately determine the
amount of a production company's in-state spending that is completed.
new text end

new text begin Television commercials are not qualified moving image projects under this section.
new text end

new text begin Subd. 7. new text end

new text begin Grant. new text end

new text begin (a) Except as provided by subdivision 8, a grant under this section may
not exceed the amount established by the commissioner. The commissioner shall adopt
rules prescribing the method the commissioner will use to calculate the amount of a grant
allowed under this paragraph. The commissioner shall publish a written summary of the
method for determining grants before awarding a grant under this subdivision. The method
must consider, at a minimum:
new text end

new text begin (1) the current and likely future effect a moving image project will have on employment,
tourism, and economic activity in this state; and
new text end

new text begin (2) the amount of a production company's in-state spending for a moving image project.
new text end

new text begin (b) In calculating a grant amount under subdivision 8 or the amount of in-state spending
for purposes of rules adopted under paragraph (a), the commissioner must not include wages
of persons, including an actor or director, employed in the production of a moving image
project that exceed $1,000,000.
new text end

new text begin (c) The commissioner must only make a grant from appropriated funds.
new text end

new text begin Subd. 8. new text end

new text begin Additional grant for underutilized and economically distressed areas. new text end

new text begin In
addition to the grant calculated under subdivision 7, a production company that spends at
least 25 percent of a moving image project's filming days in an underutilized and
economically distressed area is eligible for an additional grant in an amount equal to 2.5
percent of the total amount of the production company's in-state spending for the moving
image project.
new text end

new text begin Subd. 9. new text end

new text begin State debt. new text end

new text begin If a production company owes money to the state at the time the
production company is awarded a grant under this section, the commissioner shall offset
the amount owed to the state from the amount awarded.
new text end

Sec. 2. new text beginAPPROPRIATION.
new text end

new text begin $12,500,000 in fiscal year 2020 and $12,500,000 in fiscal year 2021 are appropriated
from the general fund to the commissioner of employment and economic development for
the moving image industry incentive program under Minnesota Statutes, section 116J.9791.
new text end