1.1 	A bill for an act
1.2 	relating to financial institutions; providing for savings promotion raffles;
1.3 	amending Minnesota Statutes 2014, sections 48.15, subdivision 1; 52.04, 
1.4 	subdivision 1; 325F.755, subdivision 6; 609.75, by adding subdivisions; 609.761, 
1.5 	by adding a subdivision; repealing Minnesota Statutes 2014, section 609.75, 
1.6 	subdivision 13.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2014, section 48.15, subdivision 1, is amended to read:
1.9 		Subdivision 1.Authority. In addition to the inherent and granted powers of 
1.10 	corporations in general, any such bank shall have power to exercise, by its board of 
1.11 	directors, or duly authorized officers and agents, subject to law, all such powers as 
1.12 	shall be necessary to carry on the business of banking by discounting bills, notes, and 
1.13 	other evidences of debt, by receiving deposits, by buying and selling gold and silver 
1.14 	bullion, foreign coin, promissory notes, mortgages, and other evidences of debt legal 
1.15 	for investment, and foreign and inland bills of exchange, by lending money on real and 
1.16 	personal securities and receiving interest on any of the same in advance, by conducting 
1.17 	savings promotion raffles in the manner and subject to the requirements set forth in 
1.18 	section 609.761, subdivision 6, and by exercising all the usual and incidental powers and 
1.19 	privileges belonging to the business; but it shall not transact any business, except such 
1.20 	as is incidental and necessarily preliminary to its establishment, until authorized by the 
1.21 	commissioner to commence business.

1.22 	Sec. 2. Minnesota Statutes 2014, section 52.04, subdivision 1, is amended to read:
1.23 		Subdivision 1.Generally. A credit union has the following powers:
2.1 	(1) to offer its members and other credit unions various classes of shares, share 
2.2 	certificates, deposits, or deposit certificates;
2.3 	(2) to receive the savings of its members either as payment on shares or as 
2.4 	deposits, including the right to conduct Christmas clubs, vacation clubs, and other thrift 
2.5 	organizations within its membership. Trust funds received by a real estate broker or the 
2.6 	broker's salespersons in trust may be deposited in a credit union;
2.7 	(3) to make loans to members for provident or productive purposes as provided in 
2.8 	section 52.16;
2.9 	(4) to make loans to a cooperative society or other organization having membership 
2.10 	in the credit union;
2.11 	(5) to deposit in state and national banks and trust companies authorized to receive 
2.12 	deposits;
2.13 	(6) to invest in any investment legal for savings banks or for trust funds in the state 
2.14 	and, notwithstanding clause (3), to invest in and make loans of unsecured days funds 
2.15 	(federal funds or similar unsecured loans) to financial institutions insured by an agency 
2.16 	of the federal government and a member of the Federal Reserve System or required to 
2.17 	maintain reserves at the Federal Reserve;
2.18 	(7) to borrow money as hereinafter indicated;
2.19 	(8) to adopt and use a common seal and alter the same at pleasure;
2.20 	(9) to make payments on shares of and deposit with any other credit union chartered 
2.21 	by this or any other state or operating under the provisions of the Federal Credit Union 
2.22 	Act, in amounts not exceeding in the aggregate 25 percent of its unimpaired assets. 
2.23 	However, payments on shares of and deposit with credit unions chartered by other states 
2.24 	are restricted to credit unions insured by the National Credit Union Administration. The 
2.25 	restrictions imposed by this clause do not apply to share accounts and deposit accounts 
2.26 	of the Minnesota corporate credit union in United States central credit union or to share 
2.27 	accounts and deposit accounts of credit unions in the Minnesota corporate credit union;
2.28 	(10) to contract with any licensed insurance company or society to insure the lives 
2.29 	of members to the extent of their share accounts, in whole or in part, and to pay all or a 
2.30 	portion of the premium therefor;
2.31 	(11) to indemnify each director, officer, or committee member, or former director, 
2.32 	officer, or committee member against all expenses, including attorney's fees but excluding 
2.33 	amounts paid pursuant to a judgment or settlement agreement, reasonably incurred in 
2.34 	connection with or arising out of any action, suit, or proceeding to which that person is a 
2.35 	party by reason of being or having been a director, officer, or committee member of the 
2.36 	credit union, except with respect to matters as to which that person is finally adjudged in 
3.1 	the action, suit, or proceeding to be liable for negligence or misconduct in the performance 
3.2 	of duties. The indemnification is not exclusive of any other rights to which that person 
3.3 	may be entitled under any bylaw, agreement, vote of members, or otherwise;
3.4 	(12) upon written authorization from a member, retained at the credit union, to make 
3.5 	payments to third parties by withdrawals from the member's share or deposit accounts or 
3.6 	through proceeds of loans made to such member, or by permitting the credit union to make 
3.7 	those payments from the member's funds prior to deposit; to permit draft withdrawals 
3.8 	from member accounts, but a credit union proposing to permit draft withdrawals shall 
3.9 	notify the commissioner of commerce, in the form prescribed, of its intent not less than 
3.10 	90 days prior to authorizing draft withdrawals. The board of directors of a credit union 
3.11 	may restrict one class of shares to the extent that it may not be redeemed, withdrawn, or 
3.12 	transferred except upon termination of membership in the credit union;
3.13 	(13) to inform its members as to the availability of various group purchasing plans 
3.14 	which are related to the promotion of thrift or the borrowing of money for provident and 
3.15 	productive purposes by means of informational materials placed in the credit union's 
3.16 	office, through its publications, or by direct mailings to members by the credit union;
3.17 	(14) to facilitate its members' voluntary purchase of types of insurance incidental 
3.18 	to promotion of thrift or the borrowing of money for provident and productive purposes 
3.19 	including, but not limited to the following types of group or individual insurance: 
3.20 	Fire, theft, automobile, life and temporary disability; to be the policyholder of a group 
3.21 	insurance plan or a subgroup under a master policy plan and to disseminate information 
3.22 	to its members concerning the insurance provided thereunder; to remit premiums to an 
3.23 	insurer or the holder of a master policy on behalf of a credit union member, if the credit 
3.24 	union obtains written authorization from the member for remittance by share or deposit 
3.25 	withdrawals or through proceeds of loans made by the members, or by permitting the 
3.26 	credit union to make the payments from the member's funds prior to deposit; and to 
3.27 	accept from the insurer reimbursement for expenses incurred or in the case of credit 
3.28 	life, accident and health, and involuntary unemployment insurance within the meaning 
3.29 	of chapter 62B commissions for the handling of the insurance. The amount reimbursed 
3.30 	or the commissions received may constitute the general income of the credit union. The 
3.31 	directors, officers, committee members and employees of a credit union shall not profit on 
3.32 	any insurance sale facilitated through the credit unions;
3.33 	(15) to contract with another credit union to furnish services which either could 
3.34 	otherwise perform. Contracted services under this clause are subject to regulation and 
3.35 	examination by the commissioner of commerce like other services;
4.1 	(16) in furtherance of the twofold purpose of promoting thrift among its members 
4.2 	and creating a source of credit for them at legitimate rates of interest for provident 
4.3 	purposes, and not in limitation of the specific powers hereinbefore conferred, to have all 
4.4 	the powers enumerated, authorized, and permitted by this chapter, and such other rights, 
4.5 	privileges and powers incidental to, or necessary for, the accomplishment of the objectives 
4.6 	and purposes of the credit union;
4.7 	(17) to rent safe deposit boxes to its members if the credit union obtains adequate 
4.8 	insurance or bonding coverage for losses which might result from the rental of safe 
4.9 	deposit boxes;
4.10 	(18) notwithstanding the provisions of section 52.05, to accept deposits of public 
4.11 	funds in an amount secured by insurance or other means pursuant to chapter 118A or 
4.12 	section 9.031 or other applicable law and to receive deposits of trust funds provided that 
4.13 	either the provider or the beneficial owner of the funds is a member of the credit union 
4.14 	accepting the deposit;
4.15 	(19) to accept and maintain treasury tax and loan accounts of the United States and 
4.16 	to pledge collateral to secure the treasury tax or loan accounts, in accordance with the 
4.17 	regulations of the Department of Treasury of the United States;
4.18 	(20) to accept deposits pursuant to section 149A.97, subdivision 5, notwithstanding 
4.19 	the provisions of section 52.05, if the deposits represent funding of prepaid funeral 
4.20 	plans of members;
4.21 	(21) to sell, in whole or in part, real estate secured loans provided that:
4.22 	(a) the loan is secured by a first lien;
4.23 	(b) the board of directors approves the sale;
4.24 	(c) if the sale is partial, the agreement to sell a partial interest shall, at a minimum:
4.25 	(i) identify the loan or loans covered by the agreement;
4.26 	(ii) provide for the collection, processing, remittance of payments of principal and 
4.27 	interest, taxes and insurance premiums and other charges or escrows, if any;
4.28 	(iii) define the responsibilities of each party in the event the loan becomes subject 
4.29 	to collection, loss or foreclosure;
4.30 	(iv) provide that in the event of loss, each owner shall share in the loss in proportion 
4.31 	to its interest in the loan or loans;
4.32 	(v) provide for the distribution of payments of principal to each owner proportionate 
4.33 	to its interest in the loan or loans;
4.34 	(vi) provide for loan status reports;
4.35 	(vii) state the terms and conditions under which the agreement may be terminated or 
4.36 	modified; and
5.1 	(d) the sale is without recourse or repurchase unless the agreement:
5.2 	(i) requires repurchase of a loan because of any breach of warranty or 
5.3 	misrepresentation;
5.4 	(ii) allows the seller to repurchase at its discretion; or
5.5 	(iii) allows substitution of one loan for another;
5.6 	(22) in addition to the sale of loans secured by a first lien on real estate, to sell, 
5.7 	pledge, discount, or otherwise dispose of, in whole or in part, to any source, a loan or 
5.8 	group of loans, other than a self-replenishing line of credit; provided, that within a calendar 
5.9 	year beginning January 1 the total dollar value of loans sold, other than loans secured by 
5.10 	real estate or insured by a state or federal agency, shall not exceed 25 percent of the dollar 
5.11 	amount of all loans and participating interests in loans held by the credit union at the 
5.12 	beginning of the calendar year, unless otherwise authorized in writing by the commissioner;
5.13 	(23) to designate the par value of the shares of the credit union by board resolution;
5.14 	(24) to exercise by resolution the powers set forth in United States Code, title 
5.15 	12, section 1757. Before exercising each power, the board must submit a plan to the 
5.16 	commissioner of commerce detailing implementation of the power to be used;
5.17 	(25) to offer self-directed individual retirement accounts and Keogh accounts and 
5.18 	act as custodian and trustee of these accounts if:
5.19 	(1) all contributions of funds are initially made to a deposit, share or share certificate 
5.20 	account in the credit union;
5.21 	(2) any subsequent transfer of funds to other assets is solely at the direction of 
5.22 	the member and the credit union exercises no investment discretion and provides no 
5.23 	investment advice with respect to plan assets; and
5.24 	(3) the member is clearly notified of the fact that National Credit Union Share 
5.25 	Insurance Fund coverage is limited to funds held in deposit, share or share certificate 
5.26 	accounts of National Credit Union Share Insurance Fund-insured credit unions;
5.27 	(26) to impose reasonable charges for the services it provides to its members;
5.28 	(27) to impose financing charges and reasonable late charges in the event of default 
5.29 	on loans, and recover reasonable costs and expenses, including, but not limited to, actual 
5.30 	collection costs and attorneys' fees incurred both before and after judgment, incurred in the 
5.31 	collection of sums due, if provided for in the note or agreement signed by the borrower; and
5.32 	(28) to acquire, lease, hold, assign, pledge, sell, or otherwise dispose of interests in a 
5.33 	loan or groups of loans other than a self-replenishing line of credit.; and
5.34 	(29) to conduct savings promotion raffles in the manner and subject to the 
5.35 	requirements set forth in section 609.761, subdivision 6.

6.1 	Sec. 3. Minnesota Statutes 2014, section 325F.755, subdivision 6, is amended to read:
6.2 		Subd. 6.Exemptions for regulated activities. This section does not apply to 
6.3 	advertising permitted and regulated under chapter 82A, concerning membership camping 
6.4 	practices; advertising permitted and regulated under chapter 83, concerning subdivided 
6.5 	lands and interests in subdivided lands; pari-mutuel betting on horse racing permitted and 
6.6 	regulated under chapter 240; lawful gambling permitted and regulated under chapter 
6.7 	349; savings promotion raffles permitted under chapter 609; or the state lottery created 
6.8 	and regulated under chapter 349A.

6.9 	Sec. 4. Minnesota Statutes 2014, section 609.75, is amended by adding a subdivision 
6.10 	to read:
6.11 		Subd. 14.Savings promotion raffle. A "savings promotion raffle" means a contest 
6.12 	or promotion in which a chance of winning designated prizes is obtained by the deposit 
6.13 	of a specified amount of money in a savings account, share account, savings association, 
6.14 	share certificate, or other savings program offered by a state or federally chartered credit 
6.15 	union or bank.

6.16 	Sec. 5. Minnesota Statutes 2014, section 609.75, is amended by adding a subdivision 
6.17 	to read:
6.18 		Subd. 15.Qualifying account. "Qualifying account" means a savings account, 
6.19 	share account, savings association, share certificate, or other savings program through 
6.20 	which depositors may obtain chances to win prizes in a savings promotion raffle by 
6.21 	depositing specified sums of money.

6.22 	Sec. 6. Minnesota Statutes 2014, section 609.75, is amended by adding a subdivision 
6.23 	to read:
6.24 		Subd. 16.Nonqualifying account. "Nonqualifying account" means a savings 
6.25 	account, share account, savings association, share certificate, or other savings program 
6.26 	that is not a qualifying account.

6.27 	Sec. 7. Minnesota Statutes 2014, section 609.75, is amended by adding a subdivision 
6.28 	to read:
6.29 		Subd. 17.Applicability of definitions. For the purposes of sections 609.75 to 
6.30 	609.762, the terms defined in this section have the meanings given, unless the context 
6.31 	clearly indicates otherwise.

7.1 	Sec. 8. Minnesota Statutes 2014, section 609.761, is amended by adding a subdivision 
7.2 	to read:
7.3 		Subd. 6.Savings promotion raffles. Sections 609.755 and 609.76 do not prohibit 
7.4 	the conduct of or participation in a savings promotion raffle, as defined in section 609.75, 
7.5 	subdivision 14, if the following conditions are complied with:
7.6 	(1) participants in a savings promotion raffle shall not be required to provide any 
7.7 	consideration, other than the deposit of a sum of money in a qualifying account, to obtain 
7.8 	chances to win prizes in a savings promotion raffle. For purposes of this clause, participants 
7.9 	shall not be deemed to have provided such consideration merely because the interest rate, 
7.10 	if any, associated with a qualifying account is lower than the interest rate associated 
7.11 	with comparable nonqualifying accounts. Participants shall not be deemed to have given 
7.12 	consideration as a consequence of paying any fees associated with a qualifying account, so 
7.13 	long as such fees are approximately of a kind and in an amount charged in connection with 
7.14 	comparable nonqualifying accounts, if any, offered by the savings promotion raffle sponsor;
7.15 	(2) a savings promotion raffle shall be conducted so that each entry in the savings 
7.16 	promotion raffle has an equal chance of being drawn; and
7.17 	(3) participants in a savings promotion raffle shall not be required to be present at 
7.18 	a prize drawing in order to win.

7.19 	Sec. 9.  REPEALER.
 7.20 	Minnesota Statutes 2014, section 609.75, subdivision 13, is repealed.