1.1 	A bill for an act
1.2 	relating to arts; providing restrictions on use of general fund appropriations; 
1.3 	amending Laws 2013, chapter 142, article 1, section 24, subdivision 4; proposing 
1.4 	coding for new law in Minnesota Statutes, chapter 129D.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [129D.165] GENERAL FUND EXPENDITURES.
1.7 	(a) Money appropriated from the general fund for grants to arts organizations may 
1.8 	be awarded only to an organization that:
1.9 	(1) is physically located in Minnesota and demonstrates that a majority of its arts 
1.10 	programming, services, and activities takes place in Minnesota and that the organization 
1.11 	primarily serves and engages Minnesota audiences and participants; or 
1.12 	(2) is located in a community that is on the border between Minnesota and another 
1.13 	state and demonstrates that it is providing arts programming, services, or activities to 
1.14 	Minnesota residents that would not otherwise be available to Minnesota residents.
1.15 	(b) Money appropriated from the general fund to an organization described in 
1.16 	paragraph (a), clause (2), may be used only for arts programming, services, and activities 
1.17 	that occur in Minnesota or within ten miles of the Minnesota border.

1.18 	EFFECTIVE DATE. This section is effective July 1, 2014, and applies to grants 
1.19 	made on or after that date.

1.20 	Sec. 2. Laws 2013, chapter 142, article 1, section 24, subdivision 4, is amended to read:

1.21 | Subd. 4.Regional Arts Councils | | 2,139,000 | | 2,139,000
2.1 	Unencumbered Balance Available. Any 
2.2 	unencumbered balance remaining in this 
2.3 	section the first year does not cancel, but is 
2.4 	available for the second year of the biennium.
2.5 	~~Projects located in Minnesota;~~ Travel 
2.6 	restriction.~~Money appropriated in this~~ 
2.7 	~~section and distributed as grants may only~~ 
2.8 	~~be spent on projects located in Minnesota.~~
2.9 	 A recipient of a grant funded by an 
2.10 	appropriation in this section must not use 
2.11 	more than ten percent of the total grant for 
2.12 	costs related to travel outside the state of 
2.13 	Minnesota.

2.14 	EFFECTIVE DATE. This section is effective July 1, 2014, and applies to grants 
2.15 	made on or after that date.