HF 3448

as introduced - 86th Legislature (2009 - 2010) Posted on 03/08/2010 09:30am

A bill for an act
relating to higher education; establishing a pilot project for the local deposit of
certain reserves.

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

Section 1. new text begin PILOT PROJECT; LOCAL DEPOSIT OF RESERVES OF
MINNESOTA STATE COLLEGES AND UNIVERSITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin To increase the distribution of potential economic
benefit of deposits of reserve funds of the institutions of the Minnesota State Colleges and
Universities, a pilot project is established to transfer certain reserve deposits of selected
institutions from the state treasury to a community financial institution. Notwithstanding
Minnesota Statutes, section 16A.27, on July 1, 2010, the commissioner of management
and budget shall transfer the reserve funds of colleges and universities selected by the
board of trustees under subdivision 2, to a community financial institution designated for
each of the participating colleges and universities.
new text end

new text begin Subd. 2. new text end

new text begin Participating colleges and universities. new text end

new text begin By June 11, 2010, colleges and
universities must apply to the Board of Trustees of the Minnesota State Colleges and
Universities for participation in the pilot project. Each applicant must designate one or
more community financial institutions for the deposit of reserves, with the terms of the
deposit for each designated community financial institution. The designated community
financial institution must be located within 25 miles of a participating campus. From the
applicants, the board shall select four to eight postsecondary institutions to participate in
the local deposit pilot project. In making its selection, the board must consider the size
of the institution's reserves and the terms offered by the designated community financial
institutions. Two-year and four-year institutions must be selected to participate in the pilot
project and the majority of the selected institutions must be located in greater Minnesota.
new text end

new text begin By June 25, 2010, the board must notify the commissioner of management and
budget of the participating colleges and universities and the associated community
financial institutions.
new text end

new text begin Subd. 3. new text end

new text begin Community financial institution. new text end

new text begin As used in this section, "community
financial institution" means a federally insured bank or credit union, chartered as a bank
or credit union by the state of Minnesota or the United States, that is headquartered in
Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin Evaluation and report. new text end

new text begin The commissioner of management and budget
and the board of trustees shall independently evaluate the effectiveness of the local deposit
pilot project in increasing the use of community financial institutions and providing wider
distribution of the economic benefit of the deposit of postsecondary reserves. Each
evaluation must include the participating colleges, universities, and community financial
institutions. The commissioner and the board shall report the results of the pilot project
evaluation to the appropriate committees of the legislature by December 1, 2011, with
recommendations on the future implementation of the pilot project.
new text end