1.1                          A bill for an act 
  1.2             relating to financial institutions; making permanent 
  1.3             the school bank pilot project; permitting an 
  1.4             additional school bank for educational purposes; 
  1.5             amending Laws 1997, chapter 157, section 71, as 
  1.6             amended. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1997, chapter 157, section 71, as amended 
  1.9   by Laws 1998, chapter 398, article 3, section 11, is amended to 
  1.10  read: 
  1.11     Sec. 71.  [SCHOOL BANK PILOT PROJECT.] 
  1.12     (a) A school bank sponsored by independent school district 
  1.13  No. 31, Bemidji~~, or by~~; independent school district No. 508, St. 
  1.14  Peter~~,~~; or independent school district No. 316, 
  1.15  Greenway-Coleraine, that meets all requirements of paragraph (b) 
  1.16  is not subject to Minnesota Statutes, section 47.03, subdivision 
  1.17  1, or to any other statute or rule that regulates banks, other 
  1.18  financial institutions, or currency exchanges. 
  1.19     (b) To qualify under paragraph (a), the school bank must: 
  1.20     (1) be operated as part of a high school educational 
  1.21  program and under guidelines adopted by the school board; 
  1.22     (2) be advised on a regular basis by one or more 
  1.23  state-chartered or federally-chartered financial institutions, 
  1.24  but not owned or operated by any financial institution; 
  1.25     (3) be located on school premises and have as customers 
  1.26  only students enrolled in, or employees of, the school in which 
  2.1   it is located; and 
  2.2      (4) have a written commitment from the school board, 
  2.3   guaranteeing reimbursement of any depositor's funds lost due to 
  2.4   insolvency of the school bank. 
  2.5      (c) Funds of a school bank that meets the requirements of 
  2.6   this section are not school district or other public funds for 
  2.7   purposes of any state law governing the use or investment of 
  2.8   school district or other public funds. 
  2.9      (d) The school district shall annually file with the 
  2.10  commissioner of commerce a report, prepared by the students and 
  2.11  teachers involved, summarizing the operation of the school bank. 
  2.12     ~~(e) This section expires June 30, 2000.  The commissioner~~ 
  2.13  ~~of commerce shall, no later than December 15, 1999, provide a~~ 
  2.14  ~~written report to the legislature regarding this pilot project~~ 
  2.15  ~~and any recommended legislation regarding school banks.~~ 
  2.16     Sec. 2.  [EFFECTIVE DATE.] 
  2.17     Section 1 is effective the day following final enactment.