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; regulating the sale of forfeited 
1.5 	vehicles by financial institutions as secured parties;amending Minnesota Statutes 
1.6 	2004, sections 47.62, subdivision 1; 169A.63, subdivision 11; Minnesota Statutes 
1.7 	2005 Supplement, sections 47.75, subdivision 1; 48.15, subdivision 4; repealing 
1.8 	Minnesota Statutes 2004, sections 46.043; 47.62, subdivision 5.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

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

1.23 	Sec. 2. Minnesota Statutes 2005 Supplement, section 47.75, subdivision 1, is amended 
1.24 	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. Health savings accounts invested in 
2.16 	transaction accounts shall not be subject to the restrictions in section 48.512, subdivision 
2.17 	3. All funds held in the fiduciary capacity may be commingled by the financial institution 
2.18 	in the conduct of its business, but individual records shall be maintained by the fiduciary 
2.19 	for each participant and shall show in detail all transactions engaged under authority 
2.20 	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 that 
3.3 	health savings accounts may also be invested in transaction accounts. Health savings 
3.4 	accounts invested in transaction accounts shall not be subject to the restrictions in section 
3.5 	48.512, subdivision 3; or (ii) in any other assets at the direction of the customer if the bank 
3.6 	does not exercise any investment discretion, invest the funds in collective investment funds 
3.7 	administered by it, or provide any investment advice with respect to those account assets.
3.8 	(b) Affiliated discount brokers may be utilized by the bank acting as trustee or 
3.9 	custodian for self-directed IRAs, if specifically authorized and directed in appropriate 
3.10 	documents. The relationship between the affiliated broker and the bank must be fully 
3.11 	disclosed. Brokerage commissions to be charged to the IRA by the affiliated broker should 
3.12 	be accurately disclosed. Provisions should be made for disclosure of any changes in 
3.13 	commission rates prior to their becoming effective. The affiliated broker may not provide 
3.14 	investment advice to the customer.
3.15 	(c) All funds held in the fiduciary capacity may be commingled by the financial 
3.16 	institution in the conduct of its business, but individual records shall be maintained by 
3.17 	the fiduciary for each participant and shall show in detail all transactions engaged under 
3.18 	authority of this subdivision.
3.19 	(d) The authority granted by this section is in addition to, and not limited by, section 
3.20 	47.75.

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

3.22 	Sec. 4. Minnesota Statutes 2004, section 169A.63, subdivision 11, is amended to read:
3.23 		Subd. 11.Sale of forfeited vehicle by secured party. (a) A financial institution 
3.24 	with a valid security interest in or a valid lease covering a forfeited vehicle may choose to 
3.25 	dispose of the vehicle under this subdivision, in lieu of the appropriate agency disposing 
3.26 	of the vehicle under subdivision 9. A financial institution wishing to dispose of a vehicle 
3.27 	under this subdivision shall notify the appropriate agency of its intent, in writing, within 
3.28 	30 days after receiving notice of the seizure and forfeiture. The appropriate agency shall 
3.29 	release the vehicle to the financial institution or its agent after the financial institution 
3.30 	presents proof of its valid security agreement or of its lease agreement and the financial 
3.31 	institution agrees not to sell the vehicle to a member of the violator's household, unless 
3.32 	the violator is not convicted of the offense on which the forfeiture is based. The financial 
3.33 	institution shall dispose of the vehicle in a commercially reasonable manner as defined in 
3.34 	section  336.9-610. 
4.1 	(b) After disposing of the forfeited vehicle, the financial institution shall reimburse 
4.2 	the appropriate agency for its seizure, storage, and forfeiture costs. The financial 
4.3 	institution may then apply the proceeds of the sale to its storage costs, to its sale 
4.4 	expenses, and to satisfy the lien or the lease on the vehicle. If any proceeds remain, the 
4.5 	financial institution shall forward the proceeds to the state treasury, which shall credit the 
4.6 	appropriate fund as specified in subdivision 9.

4.7 	Sec. 5.  REPEALER.
 4.8 	Minnesota Statutes 2004, sections 46.043; and 47.62, subdivision 5, are repealed.