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SF 2421

as introduced - 87th Legislature (2011 - 2012) Posted on 06/26/2012 12:49pm

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

Current Version - as introduced

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A bill for an act
relating to state government; changing provisions of grant management;
changing control and oversight of the film production jobs program to the
commissioner of administration; amending Minnesota Statutes 2010, sections
16B.98, subdivisions 5, 7; 116U.26.

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

Section 1.

Minnesota Statutes 2010, section 16B.98, subdivision 5, is amended to read:


Subd. 5.

Creation and validity of grant agreements.

(a) A grant agreement is
not valid and the state is not bound by the grant unless:

(1) the grant has been executed by the head of the agency or a delegate who is
party to the grant; deleted text begin and
deleted text end

(2) the accounting system shows an encumbrance for the amount of the grant in
accordance with policy approved by the commissionerdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (3) the grant agreement includes an effective date that references either section
16C.05, subdivision 2, or 16B.98, subdivisions 5 and 7, as determined by the granting
agency.
new text end

(b) The combined grant agreement and amendments must not exceed five years
without specific, written approval by the commissioner according to established policy,
procedures, and standards, or unless the commissioner determines that a longer duration is
in the best interest of the state.

(c) A fully executed copy of the grant agreement with all amendments and other
required records relating to the grant must be kept on file at the granting agency for a time
equal to that required of grantees in subdivision 8.

(d) Grant agreements must comply with policies established by the commissioner
for minimum grant agreement standards and practices.

(e) The attorney general may periodically review and evaluate a sample of state
agency grants to ensure compliance with applicable laws.

Sec. 2.

Minnesota Statutes 2010, section 16B.98, subdivision 7, is amended to read:


Subd. 7.

Grant payments.

Payments to the grantee may not be issued until the
grant agreement is fully executed.new text begin Encumbrances for grants issued by June 30 may be
certified for a period of one year beyond the year in which the funds were originally
appropriated as provided by section 16A.28, subdivision 6.
new text end

Sec. 3.

Minnesota Statutes 2010, section 116U.26, is amended to read:


116U.26 FILM PRODUCTION JOBS PROGRAM.

(a) The film production jobs program is created. The program shall be operated
by the Minnesota Film and TV Board with administrative oversight and control by the
deleted text begin director of Explore Minnesota Tourismdeleted text end new text begin commissioner of administrationnew text end . The program
shall make payment to producers of feature films, national television or Internet programs,
documentaries, music videos, and commercials that directly create new film jobs in
Minnesota. To be eligible for a payment, a producer must submit documentation to the
Minnesota Film and TV Board of expenditures for production costs incurred in Minnesota
that are directly attributable to the production in Minnesota of a film product.

The Minnesota Film and TV Board shall make recommendations to the deleted text begin director of
Explore Minnesota Tourism
deleted text end new text begin commissioner of administrationnew text end about program payment, but
the deleted text begin directordeleted text end new text begin commissionernew text end has the authority to make the final determination on payments.
The deleted text begin director'sdeleted text end new text begin commissioner'snew text end determination must be based on proper documentation of
eligible production costs submitted for payments. No more than five percent of the funds
appropriated for the program in any year may be expended for administration.

(b) For the purposes of this section:

(1) "production costs" means the cost of the following:

(i) a story and scenario to be used for a film;

(ii) salaries of talent, management, and labor, including payments to personal
services corporations for the services of a performing artist;

(iii) set construction and operations, wardrobe, accessories, and related services;

(iv) photography, sound synchronization, lighting, and related services;

(v) editing and related services;

(vi) rental of facilities and equipment; or

(vii) other direct costs of producing the film in accordance with generally accepted
entertainment industry practice; and

(2) "film" means a feature film, television or Internet show, documentary, music
video, or television commercial, whether on film, video, or digital media. Film does not
include news, current events, public programming, or a program that includes weather
or market reports; a talk show; a production with respect to a questionnaire or contest; a
sports event or sports activity; a gala presentation or awards show; a finished production
that solicits funds; or a production for which the production company is required under
United States Code, title 18, section 2257, to maintain records with respect to a performer
portrayed in a single-media or multimedia program.

(c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board
may make reimbursements of: (1) up to 20 percent of film production costs for films that
locate production outside the metropolitan area, as defined in section 473.121, subdivision
2, or that incur production costs in excess of $5,000,000 in the metropolitan area within
a 12-month period; or (2) up to 15 percent of film production costs for films that incur
production costs of $5,000,000 or less in the metropolitan area within a 12-month period.