A bill for an act
relating to economic development; establishing save our stages grants; providing
tax relief for entertainment venues; appropriating money.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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For the purposes of this section,
"entertainment events" means any onstage production that is held in a venue that has a
defined performance and audience space, or is temporarily built to accommodate
performances, and also includes activities such as booking and paying performers, marketing
specific acts through gig listings or advertising, collection of tickets or door cover charges,
and hiring of crew.
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(a) A Minnesota-registered business in good standing or
Minnesota-registered nonprofit in good standing that is directly engaged in the procurement,
promotion, production or presentation of live entertainment events to an in-person audience
is eligible to receive a grant under this section if the business:
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(1) met the following revenue requirements:
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(i) derived at least 33 percent of the business's 2019 revenue from the sale of tickets for
live events; or
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(ii) is directly reliant on ticketed live entertainment events but is not directly in receipt
of those ticket revenues because the event is free to the general public and the revenue is
derived from avenues other than ticket sales;
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(2) employed no more than 60 full-time equivalent employees, defined as an employee
who worked on average 30 hours of service per week or 130 hours of service per month;
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(3) was restricted from operating above 25 percent capacity or 250 attendees, whichever
is less, pursuant to an executive order issued during a peacetime emergency declared
regarding the infectious disease known as COVID-19;
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(4) does not have any current tax delinquency with the Department of Revenue at the
time of application; and
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(5) has its principal place of business in Minnesota.
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(b) The following entities are ineligible for grants under this section:
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(1) bars, restaurants, and other facilities whose primary source of revenue is not
entertainment events;
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(2) multinational or publicly owned companies; and
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(3) adult entertainment operations.
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(a) The commissioner of employment
and economic development may award grants to eligible businesses of up to $500,000, or
25 percent of the businesses' gross revenue for 2019, whichever is less. The commissioner
may develop criteria, forms, applications, and reporting requirements for use by applicants.
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(b) Businesses may not receive more than one grant under this subdivision.
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Grant proceeds may be used for business
operations, payroll, rent or mortgage, utilities, and other business-related expenses including
those necessary to comply with social distancing requirements such as HVAC systems,
plexiglass barriers, and other health and safety equipment required to operate safely.
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In addition to a grant under subdivision 3, a
Minnesota-registered business in good standing or Minnesota-registered nonprofit in good
standing that is directly engaged in the procurement, promotion, production, or presentation
of live entertainment events to an in-person audience may apply to the commissioner of
employment and economic development for reimbursement of any on-sale intoxicating
liquor license fee paid to a city, county, or state agency in 2020 under Minnesota Statutes,
chapter 340A. The commissioner of employment and economic development shall refund
the license fees paid to any eligible business upon a showing that the license fees were paid
in 2020 and the business was restricted from operating above 25 percent capacity or 250
attendees, whichever is less, pursuant to an executive order issued during a peacetime
emergency declared regarding the infectious disease known as COVID-19.
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Notwithstanding the requirements of this section,
the commissioner may authorize a grant to a business under subdivision 3 if the commissioner
determines that the business has substantially met the requirements of this section, but was
a new entertainment venue that had planned on opening in 2020 but was unable to begin
operations based solely on the fact that COVID-19-related closures prevented the business
from doing so. The business shall submit, on a form required by the commissioner, any
documentation the commissioner deems necessary to determine whether the business applies
for a discretionary grant under this subdivision.
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$....... in fiscal year 2021 is appropriated from the general fund
to the commissioner of employment and economic development for the save our stages
grants under this section.
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This section is effective the day following final enactment.
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(a) The owner of a business defined under section
1, subdivision 2, is eligible to receive a property tax credit under this section. The credit is
equal to .... percent of the total amount of property taxes paid on the property of the eligible
business in the prior year.
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(b) If the amount of the credit the owner is entitled to receive under this section exceeds
the owner's property tax liability under Minnesota Statutes, chapter 275, the commissioner
of revenue shall refund the excess amount to the owner.
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(c) An amount necessary to pay the claims for the refund provided in this section is
appropriated from the general fund to the commissioner of revenue.
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To qualify for the property tax credit in subdivision 1, the owner
of an eligible business must file an application with the commissioner of revenue. The owner
must certify the amount of the credit to the commissioner. The commissioner must prescribe
the form and manner to certify and apply for the credit.
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This section is effective retroactively for taxable years beginning
after December 31, 2019, and before January 1, 2022.
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(a) For purposes of this section and sections 4 and 5, the
following terms have the meanings given them.
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(b) "Commissioner" means the commissioner of revenue.
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(c) "Eligible business" has the meaning given under section 1, subdivision 2.
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(d) "Eligible grant" means any contribution by any governmental entity or civic group
that is includible in gross income.
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