as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
|Introduction||Posted on 02/24/1997|
1.1 A bill for an act 1.2 relating to financial institutions; permitting 1.3 state-chartered financial institutions to act as 1.4 trustees of federally-qualified medical savings 1.5 accounts; amending Minnesota Statutes 1996, sections 1.6 47.75, subdivision 1; and 48.15, subdivision 4. 1.7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. Minnesota Statutes 1996, section 47.75, 1.9 subdivision 1, is amended to read: 1.10 Subdivision 1. [RETIREMENT AND MEDICAL SAVINGS ACCOUNTS.] 1.11 A commercial bank, savings bank, savings association, credit 1.12 union, or industrial loan and thrift company may act as trustee 1.13 or custodian under the Federal Self-Employed Individual Tax 1.14 Retirement Act of 1962, as amended, under the Federal Health 1.15 Insurance Portability and Accountability Act of 1996, as 1.16 amended, and also under the Federal Employee Retirement Income 1.17 Security Act of 1974, as amended. The trustee or custodian may 1.18 accept the trust funds if the funds are invested only in savings 1.19 accounts or time deposits in the commercial bank, savings bank, 1.20 savings association, credit union, or industrial loan and thrift 1.21 company. All funds held in the fiduciary capacity may be 1.22 commingled by the financial institution in the conduct of its 1.23 business, but individual records shall be maintained by the 1.24 fiduciary for each participant and shall show in detail all 1.25 transactions engaged under authority of this subdivision. 1.26 Sec. 2. Minnesota Statutes 1996, section 48.15, 2.1 subdivision 4, is amended to read: 2.2 Subd. 4. [RETIREMENT AND MEDICAL SAVINGS ACCOUNTS.] A 2.3 state bank may act as trustee or custodian of a self-employed 2.4 retirement plan under the Federal Self-Employed Individual Tax 2.5 Retirement Act of 1962, as amended, of a medical savings account 2.6 under the Federal Health Insurance Portability and 2.7 Accountability Act of 1996, as amended, and of an individual 2.8 retirement account under the Federal Employee Retirement Income 2.9 Security Act of 1974, as amended, if the bank's duties as 2.10 trustee or custodian are essentially ministerial or custodial in 2.11 nature and the funds are invested only (1) in the bank's own 2.12 savings or time deposits; or (2) in any other assets at the 2.13 direction of the customer if the bank does not exercise any 2.14 investment discretion, invest the funds in collective investment 2.15 funds administered by it, or provide any investment advice with 2.16 respect to those account assets. 2.17 Affiliated discount brokers may be utilized by the bank 2.18 acting as trustee or custodian for self-directed IRAs, if 2.19 specifically authorized and directed in appropriate documents. 2.20 The relationship between the affiliated broker and the bank must 2.21 be fully disclosed. Brokerage commissions to be charged to the 2.22 IRA by the affiliated broker should be accurately disclosed. 2.23 Provisions should be made for disclosure of any changes in 2.24 commission rates prior to their becoming effective. The 2.25 affiliated broker may not provide investment advice to the 2.26 customer. All funds held in the fiduciary capacity may be 2.27 commingled by the financial institution in the conduct of its 2.28 business, but individual records shall be maintained by the 2.29 fiduciary for each participant and shall show in detail all 2.30 transactions engaged under authority of this subdivision. The 2.31 authority granted by this section is in addition to, and not 2.32 limited by, section 47.75. 2.33 Sec. 3. [EFFECTIVE DATE.] 2.34 Sections 1 and 2 are effective the day following final 2.35 enactment.