HF 997

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 02/22/2018 02:50pm

A bill for an act
relating to local government; modifying the requirements for payment of claims;
amending Minnesota Statutes 2016, section 471.38; repealing Minnesota Statutes
2016, section 471.391, subdivision 1.

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

Section 1.

Minnesota Statutes 2016, section 471.38, is amended to read:

471.38 CLAIMS.

Subdivision 1.

Itemization; declaration.

Except as provided in subdivision 2, where if
an account, claim or demand against any county, local social services agency, county board
of education for unorganized territory, school district, town or home rule charter city of the
second, third or fourth class, or any park district, a local government for any property or
services can be itemized in the ordinary course of business, the board or officer authorized
by law to audit and allow claims shall not audit or allow the claim until the person claiming
payment, or the person's agent, reduces it to provides to the board or officer an itemized list
in writing or in an electronic transaction record, in items and signs a declaration to the effect.
By making the claim for payment, the person making the claim is declaring that such the
account, claim, or demand is just and correct and that no part of it has been paid. The board
or officer may in its discretion allow a claim prepared by the clerk or secretary of such the
board or officer prior to such the declaration by the claimant if the declaration is made on
the check or order-check by which the claim is paid, as provided in section 471.391,
subdivision 2. For the purposes of this section, "local government" means any county, local
social services agency, school district, town, or home rule charter city of the second, third
or fourth class, or any park district.

Subd. 2.

Application.

The provisions of this section do not apply to any claim or demand
for an annual salary or fees of jurors or witnesses, fixed by law, nor to the salary or wages
of any employee whose salary or wages have been fixed on an hourly, daily, weekly or
monthly basis, by the governing board of the municipality, and which is now authorized by
law to be paid on a payroll basis.

Subd. 3.

Electronic funds transfer.

Electronic funds transfer is the process of value
exchange via mechanical means without the use of checks, drafts, or similar negotiable
instruments. A school district local government may make an electronic funds transfer for
the following:

(1) for a claim for a payment from an imprest payroll bank account or investment of
excess money;

(2) for a payment of tax or aid anticipation certificates;

(3) for a payment of contributions to pension or retirement fund;

(4) for vendor payments; and

(5) for payment of bond principal, bond interest and a fiscal agent service charge from
the debt redemption fund.

Subd. 3a.

School district Eligibility.

The authorization in subdivision 3 extends only
to a school district local government that has enacted all of the following policy controls:

(a) the school board governing body shall annually delegate the authority to make
electronic funds transfers to a designated business administrator or chief financial officer
or the officer's designee;

(b) the disbursing bank shall keep on file a certified copy of the delegation of authority;

(c) the initiator of the electronic transfer shall be identified;

(d) the initiator shall document the request and obtain an approval from the designated
business administrator, or chief financial officer or the officer's designee, before initiating
the transfer as required by internal control policies;

(e) a written confirmation of the transaction shall be made no later than one business
day after the transaction and shall be used in lieu of a check, order check or warrant required
to support the transaction;

(f) a list of all transactions made by electronic funds transfer shall be submitted to the
school board governing body at its next regular meeting after the transaction.

Sec. 2. REPEALER.

Minnesota Statutes 2016, section 471.391, subdivision 1, is repealed.

APPENDIX

Repealed Minnesota Statutes: HF0997-1

471.391 DECLARATION FORM.

No active language found for: 471.391.1