1.1 	A bill for an act
1.2 	relating to financial institutions; regulating electronic financial terminals, and the 
1.3 	expenses of organizing and incorporating banks; authorizing the investment of 
1.4 	health savings accounts in transaction accounts;amending Minnesota Statutes 
1.5 	2004, section 47.62, subdivision 1; Minnesota Statutes 2005 Supplement, 
1.6 	sections 47.75, subdivision 1; 48.15, subdivision 4; repealing Minnesota Statutes 
1.7 	2004, sections 46.043; 47.62, subdivision 5.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 47.62, subdivision 1, is amended to read:
1.10 		Subdivision 1.General authority. Any person may establish and maintain one 
1.11 	or more electronic financial terminals. Any financial institution may provide for its 
1.12 	customers the use of an electronic financial terminal by entering into an agreement with 
1.13 	any person who has established and maintains one or more electronic financial terminals if 
1.14 	that person authorizes use of the electronic financial terminal to all financial institutions 
1.15 	on a nondiscriminatory basis pursuant to section  47.64. Electronic financial terminals to 
1.16 	be established and maintained in this state by financial institutions located in states other 
1.17 	than Minnesota must file a notification to the commissioner as required in this section. 
1.18 	The notification may be in the form lawfully required by the state regulator responsible 
1.19 	for the examination and supervision of that financial institution. If there is no such 
1.20 	requirement, then notification must be in the form required by this section for Minnesota 
1.21 	financial institutions. 

1.22 	Sec. 2. Minnesota Statutes 2005 Supplement, section 47.75, subdivision 1, is amended 
1.23 	to read:
2.1 		Subdivision 1.Retirement, health savings, and medical savings accounts. (a) A 
2.2 	commercial bank, savings bank, savings association, credit union, or industrial loan and 
2.3 	thrift company may act as trustee or custodian:
2.4 	(1) under the Federal Self-Employed Individual Tax Retirement Act of 1962, as 
2.5 	amended;
2.6 	(2) of a medical savings account under the Federal Health Insurance Portability and 
2.7 	Accountability Act of 1996, as amended;
2.8 	(3) of a health savings account under the Medicare Prescription Drug, Improvement, 
2.9 	and Modernization Act of 2003, as amended; and
2.10 	(4) under the Federal Employee Retirement Income Security Act of 1974, as 
2.11 	amended.
2.12 	(b) The trustee or custodian may accept the trust funds if the funds are invested 
2.13 	only in savings accounts or time deposits in the commercial bank, savings bank, savings 
2.14 	association, credit union, or industrial loan and thrift company, except that health savings 
2.15 	accounts may also be invested in transaction accounts, as defined in section 48.512, 
2.16 	subdivision 1. Health savings accounts invested in transaction accounts shall not be 
2.17 	subject to the restrictions in section 48.512, subdivision 3. All funds held in the fiduciary 
2.18 	capacity may be commingled by the financial institution in the conduct of its business, but 
2.19 	individual records shall be maintained by the fiduciary for each participant and shall show 
2.20 	in detail all transactions engaged under authority of this subdivision.

2.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

2.22 	Sec. 3. Minnesota Statutes 2005 Supplement, section 48.15, subdivision 4, is amended 
2.23 	to read:
2.24 		Subd. 4.Retirement, health savings, and medical savings accounts. (a) A state 
2.25 	bank may act as trustee or custodian:
2.26 	(1) of a self-employed retirement plan under the Federal Self-Employed Individual 
2.27 	Tax Retirement Act of 1962, as amended;
2.28 	(2) of a medical savings account under the Federal Health Insurance Portability and 
2.29 	Accountability Act of 1996, as amended;
2.30 	(3) of a health savings account under the Medicare Prescription Drug, Improvement, 
2.31 	and Modernization Act of 2003, as amended; and
2.32 	(4) of an individual retirement account under the Federal Employee Retirement 
2.33 	Income Security Act of 1974, as amended, 
3.1 	if the bank's duties as trustee or custodian are essentially ministerial or custodial in nature 
3.2 	and the funds are invested only (i) in the bank's own savings or time deposits, except 
3.3 	that health savings accounts may also be invested in transaction accounts, as defined in 
3.4 	section 48.512, subdivision 1. Health savings accounts invested in transaction accounts 
3.5 	shall not be subject to the restrictions in section 48.512, subdivision 3; or (ii) in any 
3.6 	other assets at the direction of the customer if the bank does not exercise any investment 
3.7 	discretion, invest the funds in collective investment funds administered by it, or provide 
3.8 	any investment advice with respect to those account assets.
3.9 	(b) Affiliated discount brokers may be utilized by the bank acting as trustee or 
3.10 	custodian for self-directed IRAs, if specifically authorized and directed in appropriate 
3.11 	documents. The relationship between the affiliated broker and the bank must be fully 
3.12 	disclosed. Brokerage commissions to be charged to the IRA by the affiliated broker should 
3.13 	be accurately disclosed. Provisions should be made for disclosure of any changes in 
3.14 	commission rates prior to their becoming effective. The affiliated broker may not provide 
3.15 	investment advice to the customer.
3.16 	(c) All funds held in the fiduciary capacity may be commingled by the financial 
3.17 	institution in the conduct of its business, but individual records shall be maintained by 
3.18 	the fiduciary for each participant and shall show in detail all transactions engaged under 
3.19 	authority of this subdivision.
3.20 	(d) The authority granted by this section is in addition to, and not limited by, section 
3.21 	47.75.

3.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

3.23 	Sec. 4.  REPEALER.
 3.24 	Minnesota Statutes 2004, sections 46.043; and 47.62, subdivision 5, are repealed.