A bill for an act
relating to tourism; establishing Explore Minnesota Film; amending Minnesota
Statutes 2022, sections 116U.26; 116U.27, subdivisions 5, 6; Minnesota Statutes
2023 Supplement, section 116U.27, subdivisions 1, 4; proposing coding for new
law in Minnesota Statutes, chapter 116U.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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(a) Explore Minnesota Film is established
as an office within Explore Minnesota.
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(b) The director of Explore Minnesota shall appoint the director of Explore Minnesota
Film. The director of Explore Minnesota Film must be qualified by experience with issues
related to film and television production and economic development.
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(c) The office may employ staff necessary to carry out the duties required in this section.
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The director of Explore Minnesota Film is authorized to:
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(1) administer the film production jobs program and the film production credit program;
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(2) promote Minnesota as a location for film and television production;
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(3) assist in the establishment and implementation of programs related to film and
television production, including but not limited to permitting and workforce development;
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(4) improve communication among local, state, federal, and private entities regarding
film and television production logistics and best practices;
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(5) coordinate the development of statewide policies addressing film and television
production; and
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(6) act as a liaison to production entities, workers, and state agencies.
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Minnesota Statutes 2022, section 116U.26, is amended to read:
(a) The film production jobs program is created. The program shall be operated by deleted text begin the
Minnesota Film and TV Boarddeleted text end new text begin Explore Minnesota Filmnew text end with administrative oversight and
control by the deleted text begin commissioner of employment and economic developmentdeleted text end new text begin director of Explore
Minnesotanew 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 deleted text begin the Minnesota Film and TV Boarddeleted text end new text begin Explore Minnesota Filmnew text end of expenditures
for production costs incurred in Minnesota that are directly attributable to the production
in Minnesota of a film product.
deleted text begin The Minnesota Film and TV Boarddeleted text end new text begin Explore Minnesota Filmnew text end shall make recommendations
to the deleted text begin commissioner of employment and economic developmentdeleted text end new text begin director of Explore
Minnesotanew text end about program payment, but the deleted text begin commissionerdeleted text end new text begin directornew text end has the authority to make
the final determination on payments. The deleted text begin commissioner'sdeleted text end new text begin director'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, including costs for independent audits and financial reviews of projects.
(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;
(vii) other direct costs of producing the film in accordance with generally accepted
entertainment industry practice;
(viii) above-the-line talent fees for nonresident talent; or
(ix) costs incurred during postproduction; and
(2) "film" means a feature film, television or Internet pilot, program, series, 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, deleted text begin the Minnesota Film and TV Boarddeleted text end new text begin
Explore Minnesota Filmnew text end may make reimbursements of: (1) up to 25 percent of production
costs for films that locate production outside the metropolitan area, as defined in section
473.121, subdivision 2, or that incur a minimum Minnesota expenditure of $1,000,000 in
the metropolitan area within a 12-month period; or (2) up to 20 percent of production costs
for films that incur less than $1,000,000 in Minnesota production costs in the metropolitan
area within a 12-month period.
Minnesota Statutes 2023 Supplement, section 116U.27, subdivision 1, is amended
to read:
(a) For purposes of this section, the following terms have
the meanings given.
(b) "Allocation certificate" means a certificate issued by the commissioner to a taxpayer
upon receipt and approval of an initial application for a credit for a project that has not yet
been completed.
(c) "Application" means the application for a credit under subdivision 4.
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(d) "Commissioner" means the commissioner of employment and economic development.
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deleted text begin (e)deleted text end new text begin (d)new text end "Credit certificate" means a certificate issued by the commissioner upon receipt
and approval of the cost verification report in subdivision 4, paragraph (e).
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(e) "Director" means the director of Explore Minnesota.
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(f) "Eligible production costs" means eligible production costs as defined in section
116U.26, paragraph (b), clause (1), incurred in Minnesota that are directly attributable to
the production of a film project in Minnesota.
(g) "Film" has the meaning given in section 116U.26, paragraph (b), clause (2).
(h) "Project" means a film:
(1) that includes the promotion of Minnesota;
(2) for which the taxpayer has expended at least $1,000,000 in any consecutive 12-month
period beginning after expenditures are first paid in Minnesota for eligible production costs;
and
(3) to the extent practicable, that employs Minnesota residents.
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Television commercials are exempt from the requirement under clause (1).
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(i) "Promotion of Minnesota" or "promotion" means visible display of a static or animated
logo, approved by the deleted text begin commissioner and lasting approximately five secondsdeleted text end new te