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HF 4626

as introduced - 91st Legislature (2019 - 2020) Posted on 05/04/2020 11:39am

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

Bill Text Versions

Engrossments
Introduction Posted on 05/04/2020

Current Version - as introduced

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A bill for an act
relating to commerce; financial institutions; creating a working group to examine
the merger of financial institutions and their tax status designations; requiring a
report.

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

Section 1. new text beginMERGER OF FINANCIAL INSTITUTIONS AND TAX STATUS
DESIGNATION WORKING GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A working group is established to review and provide
recommendations regarding the merger of financial institutions and related tax status
designations.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "financial institution" means:
new text end

new text begin (1) a national banking association, federal savings association, or federal credit union;
new text end

new text begin (2) a bank, credit union, industrial loan and thrift company, or regulated lender under
Minnesota Statutes, chapter 56, established and operating under the laws of this state; and
new text end

new text begin (3) a nonprofit corporation providing lending or loan guarantee services.
new text end

new text begin Subd. 3. new text end

new text begin Membership. new text end

new text begin The working group is comprised of ten members, determined
as follows:
new text end

new text begin (1) three members selected by the commissioner of commerce, one of whom must be
the commissioner of commerce or the commissioner's designee, one of whom must be an
attorney with advanced knowledge of financial institution acquisition law, and one of whom
must be a certified public accountant;
new text end

new text begin (2) one member selected by the Independent Community Bankers of Minnesota;
new text end

new text begin (3) one member selected by the Minnesota Bankers Association;
new text end

new text begin (4) one member selected by the Minnesota Credit Union Network;
new text end

new text begin (5) one member from the house of representatives, selected by the speaker of the house;
new text end

new text begin (6) one member from the house of representatives, selected by the house minority leader;
new text end

new text begin (7) one member from the senate, selected by the senate majority leader; and
new text end

new text begin (8) one member from the senate, selected by the senate minority leader.
new text end

new text begin Subd. 4. new text end

new text begin Organization. new text end

new text begin (a) Appointments must be made by July 1, 2020.
new text end

new text begin (b) The commissioner of commerce or the commissioner's designee must convene the
first meeting no later than July 15, 2020.
new text end

new text begin (c) The member selected by the speaker of the house and the member selected by the
senate majority leader must cochair the committee and lead the committee in alternating
fashion.
new text end

new text begin (d) The members must not be reimbursed under Minnesota Statutes, section 15.059.
new text end

new text begin Subd. 5. new text end

new text begin Staff. new text end

new text begin The Legislative Coordinating Commission must provide technical and
administrative services to the working group.
new text end

new text begin Subd. 6. new text end

new text begin Task. new text end

new text begin The working group must develop recommendations regarding the
acquisition of non-tax-exempt financial institutions by tax-exempt financial institutions.
The working group must review, at a minimum, the history of these types of acquisitions
both in Minnesota and in the United States in general, the state tax and revenue implications
of acquisitions, the status of state law regarding acquisitions, and the advantages and
disadvantages of acquisitions to Minnesota. The working group may consult with other
interested parties as needed.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin The working group must report its findings and recommendations to
the chairs and ranking minority members of the legislative committees with jurisdiction
over commerce before January 15, 2021.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
is repealed January 15, 2021.
new text end