SF 1363

as introduced - 88th Legislature (2013 - 2014) Posted on 04/16/2013 10:26am

A bill for an act
relating to higher education; establishing MnSCU reserves project; requiring
reports; proposing coding for new law in Minnesota Statutes, chapter 136F.

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

Section 1.

new text begin [136F.791] MNSCU RESERVES PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin To increase the distribution of potential economic
benefit of deposits of reserve funds of the institutions of Minnesota State Colleges and
Universities (MnSCU), the MnSCU reserves project is established to transfer certain
reserve deposits of selected institutions from the state treasury to a community financial
institution. Notwithstanding section 16A.27, by January 2 of every other year beginning
January 2, 2014, the commissioner of management and budget shall transfer the specified
amount of board-required reserve funds of colleges and universities selected by the board
of trustees under subdivision 2 to a community financial institution designated for each of
the participating colleges and universities.
new text end

new text begin Subd. 2. new text end

new text begin Participating colleges and universities. new text end

new text begin By August 15 of every other year
beginning August 15, 2013, colleges and universities may apply to the Board of Trustees
of Minnesota State Colleges and Universities for participation in the MnSCU reserves
project. Each applicant must designate one or more community financial institutions for
the deposit of a specified amount of board-required reserves with the terms of the deposit
for each designated community financial institution. The designated community financial
institution must be located in the geographic area of a participating campus. From the
applicants, the board shall select up to eight postsecondary institutions to participate in
the MnSCU reserves project. In making its selection, the board must consider the size
of the institution's reserves and the terms offered by the designated community financial
institutions. Unless there are not sufficient applicants, two-year and four-year institutions
must be selected to participate in the MnSCU reserves project and the majority of the
selected institutions must be located in greater Minnesota. By December 1 of every other
year beginning December 1, 2013, the board must notify the commissioner of management
and budget of the participating colleges and universities, the deposit amount for each
institution, and the associated community financial institutions. The MnSCU reserves
project shall provide for the transfer of deposits for no more than a two-year period.
new text end

new text begin Subd. 3. new text end

new text begin Community financial institution. new text end

new text begin As used in this section, "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 that has no more than $2,500,000,000 in assets.
new text end

new text begin Subd. 4. new text end

new text begin Evaluation and report. new text end

new text begin The commissioner of management and budget and
the board of trustees shall independently evaluate the effectiveness or harm of the MnSCU
reserves project in increasing the use of community financial institutions and providing
wider distribution of the economic benefit of the deposit of postsecondary reserves. Each
evaluation must include the participating colleges, universities, and community financial
institutions. The commissioner of management and budget and the board of trustees shall
report on the MnSCU reserves project evaluation to the appropriate committees of the
legislature by February 1 of every other year beginning on February 1, 2016.
new text end