Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

HF 3205

as introduced - 86th Legislature (2009 - 2010) Posted on 02/25/2010 09:23am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/25/2010

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21
2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30

A bill for an act
relating to finance; creating a preference for community banks and credit unions
for the state's general revenue account; requiring that state depository accounts
be held in community banks or credit unions; requiring a study of possible
further use of community banks and credit unions by the state and municipalities;
amending Minnesota Statutes 2008, section 16A.27, as amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 16A.27, as amended by Laws 2009,
chapter 32, section 6, is amended to read:


16A.27 STATE FUNDS; DEPOSIT; CONTROL BY COMMISSIONER.

Subdivision 1.

Commissioner to comply.

The commissioner shall, in the public
interest, control the amount and manner of deposit of state funds in depositories by the
commissioner. The commissioner shall comply with the controls.

Subd. 2.

Daily record.

Each day the commissioner shall maintain a record on the
department's Web site of all depositories holding noninterest bearing state deposits in
excess of $100,000.

Subd. 3.

Competitive bids.

new text begin(a) new text endThe depository for a state account must be
selected by competitive bid. The commissioner shall invite bids by written notice to
designated depositories. The notice must specify the considerations, financial activities,
and conditions the commissioner requires for the bid. The account must be awarded to
the lowest bidding depository that can, in the opinion of the commissioner, meet the
requirements.

new text begin (b) The commissioner of management and budget shall give a preference to a
community financial institution to act as the fiscal agent of the state's general revenue
account. When bids are received from a community financial institution and a nonresident
financial institution, the contract must be awarded to the community financial institution
whose bid is nearest to the bid price of the otherwise-low nonresident financial institution
bidder, if the price of the community financial institution is lower than the bid price of that
nonresident financial institution when multiplied by a factor of 0.9.
new text end

Subd. 4.

Exceptions.

In exceptional cases, the commissioner may dispense with
bidding. The commissioner shall report the circumstances and reasons to the Legislative
Audit Commission within five days after opening the account.

Subd. 5.

Charges, compensating balances.

The commissioner may pay
a depository a reasonable charge from appropriated money, maintain appropriate
compensating balances with the depository, or purchase non-interest-bearing certificates
of deposit from the depository for performing depository related services.

new text begin Subd. 6. new text end

new text begin Depository accounts. new text end

new text begin Each new depository account of the state or of
a state agency must be opened with a community financial institution, and existing
depository accounts must be transferred to a community financial institution at the first
time of rebidding occurring on or after August 1, 2010.
new text end

new text begin Subd. 7. new text end

new text begin Definitions. new text end

new text begin As used in this section:
new text end

new text begin (1) "community financial institution" means a federally insured bank or credit union,
chartered as a bank or credit union by the state of Minnesota or the United States, that is
headquartered in Minnesota; and
new text end

new text begin (2) "nonresident financial institution" means a bank or credit union that is not
headquartered in Minnesota.
new text end

Sec. 2. new text beginSTUDY OF DIVISION OF GENERAL FUND REVENUE ACCOUNT.
new text end

new text begin (a) The commissioner of management and budget shall study:
new text end

new text begin (1) the feasibility of dividing the state's general fund revenue account among
community financial institutions as defined in Minnesota Statutes, section 16A.27,
subdivision 7, in order to ensure that state money benefits Minnesota residents; and
new text end

new text begin (2) the potential economic benefit to municipalities from an increase in their use of
community financial institutions as defined in clause (1).
new text end

new text begin (b) The commissioner of management and budget shall report the results of the study
to the legislature by December 1, 2010.
new text end