Minnesota Legislature
SF 1978
as introduced - 90th Legislature (2017 - 2018) Posted on 03/14/2017 10:19am
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A bill for an act
relating to commerce; establishing a State Bank of Minnesota; authorizing
beginning farmer loans; appropriating money; amending Minnesota Statutes 2016,
section 16A.27, subdivisions 1, 3, 5; proposing coding for new law as Minnesota
Statutes, chapter 48B; repealing Minnesota Statutes 2016, section 16A.27,
subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 16A.27, subdivision 1, is amended to read:
Subdivision 1.
Commissioner to comply.
The commissioner shall, in the public interest,
control the amount and manner of deposit of state funds in deleted text begin depositoriesdeleted text end new text begin the State Bank of
Minnesotanew text end by the commissioner. The commissioner shall comply with the controls.
Sec. 2.
Minnesota Statutes 2016, section 16A.27, subdivision 3, is amended to read:
Subd. 3.
Competitive bids.
The depository for deleted text begin adeleted text end new text begin allnew text end state deleted text begin 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 requirementsdeleted text end new text begin accounts
shall be the State Bank of Minnesotanew text end .
Sec. 3.
Minnesota Statutes 2016, section 16A.27, subdivision 5, is amended to read:
Subd. 5.
Charges, compensating balances.
The commissioner may pay deleted text begin a depositorydeleted text end new text begin
the State Bank of Minnesotanew text end a reasonable charge from appropriated money, maintain
appropriate compensating balances with the deleted text begin depositorydeleted text end new text begin State Bank of Minnesotanew text end , or purchase
non-interest-bearing certificates of deposit from the deleted text begin depositorydeleted text end new text begin State Bank of Minnesotanew text end
for performing depository related services.
Sec. 4.
new text begin
[48B.01] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Bank. new text end
new text begin
"Bank" means the State Bank of Minnesota.
new text end
new text begin Subd. 2. new text end
new text begin Board. new text end
new text begin
"Board" means the Board of Directors of the State Bank of Minnesota.
new text end
Sec. 5.
new text begin
[48B.02] CREATION OF STATE BANK OF MINNESOTA.
new text end
new text begin
The State Bank of Minnesota is created for the purpose of facilitating and supporting
agriculture, commerce, and industry in this state. The State Bank of Minnesota shall be fully
owned by this state, and shall engage in the business of banking.
new text end
Sec. 6.
new text begin
[48B.03] BOARD OF DIRECTORS.
new text end
new text begin Subdivision 1. new text end
new text begin Size. new text end
new text begin
The business of the bank must be managed by a board of nine
directors. Every director of the bank shall take and subscribe an oath to faithfully perform
the official duties of director, and not knowingly violate, or permit to be violated, any
provision of the law. The taking of this oath must be duly certified in the minutes of the
records of the bank.
new text end
new text begin Subd. 2. new text end
new text begin Chair. new text end
new text begin
One director shall be elected by a majority of the directors as the chair
of the board.
new text end
new text begin Subd. 3. new text end
new text begin Appointment. new text end
new text begin
The governor shall appoint all directors.
new text end
new text begin Subd. 4. new text end
new text begin Vacancies. new text end
new text begin
The term of a director is two years.
new text end
Sec. 7.
new text begin
[48B.04] AUTHORITY OF BOARD OF DIRECTORS.
new text end
new text begin Subdivision 1. new text end
new text begin Operations. new text end
new text begin
The board shall meet regularly with the management level
employees of the bank to review the bank's operations to determine whether changes and
directions should be given by the board regarding improvement to the management,
performance, customer service, internal methods, procedures, and operating policies of the
bank.
new text end
new text begin Subd. 2. new text end
new text begin Actions. new text end
new text begin
The board shall act on behalf of the bank with respect to the powers
and functions of the bank.
new text end
Sec. 8.
new text begin
[48B.05] OFFICERS; APPOINTMENT; REMOVAL.
new text end
new text begin
The board shall have full power and authority at any time to appoint and remove any
officer or employee. The bank must have a president, secretary, and treasurer and may have
one or more vice presidents. The president may act on behalf of the bank, and the vice
presidents may act as managing officers of detached facilities of the bank.
new text end
Sec. 9.
new text begin
[48B.06] POWERS.
new text end
new text begin
The bank shall have all the powers, abilities, and duties provided to a state bank under
chapter 48.
new text end
Sec. 10.
new text begin
[48B.07] GUARANTY OF DEPOSITS; EXEMPTION FROM TAXATION.
new text end
new text begin
All deposits in the bank are guaranteed by the state. All deposits in the bank are exempt
from any and all state, county, and municipal taxes.
new text end
Sec. 11.
new text begin
[48B.08] LENDING TO BEGINNING FARMERS.
new text end
new text begin Subdivision 1. new text end
new text begin Beginning farmer. new text end
new text begin
For the purposes of this section, "beginning farmer"
has the meaning given in section 41C.02, subdivision 6.
new text end
new text begin Subd. 2. new text end
new text begin Loan fund; appropriation. new text end
new text begin
A revolving loan fund must be maintained in the
bank for the purposes of making or participating in loans to beginning farmers for the
purchase of agricultural real estate, equipment, and livestock. All money transferred into
the fund, interest upon money in the fund, and payments to the fund of principal and interest
on loans made from the fund are appropriated to the chair for the purpose of providing loans,
and supplementing the interest rate on loans, made by the bank to beginning farmers.
new text end
new text begin Subd. 3. new text end
new text begin Administration. new text end
new text begin
The revolving loan fund and loans made from the fund must
be administered and supervised by the bank. The bank may deduct a service fee for
administering the fund from interest payments received on loans. An application for a loan
from the fund must be made to the bank and, upon approval, a loan must be made from the
fund in accordance with this section.
new text end
new text begin Subd. 4. new text end
new text begin Amount. new text end
new text begin
A loan from the revolving loan fund may not exceed 80 percent of
the appraised value of the agricultural collateral, with the actual percentage to be determined
by the bank. The bank may establish additional terms and conditions necessary to make a
loan under this section. A loan from the fund must have a first security interest.
new text end
new text begin Subd. 5. new text end
new text begin Interest rate. new text end
new text begin
A loan made from the revolving loan fund must have the interest
rate fixed at one percent below the bank's then current base rate for the first five years with
a maximum rate of six percent per year and variable rate at one percent below the bank's
then current base rate for the second five years. During the second five years, the variable
rate must be adjusted annually on the anniversary date of the loan. The rate during the
remaining term of the loan will float at the bank's base rate as in effect from time to time.
new text end
new text begin Subd. 6. new text end
new text begin Term. new text end
new text begin
The maximum term of a real estate loan under this section shall be 30
years. The maximum term of a farm equipment or livestock loan under this section is seven
years.
new text end
Sec. 12.
new text begin
[48B.09] RULEMAKING.
new text end
new text begin
The board shall adopt rules under chapter 14 to implement this chapter.
new text end
Sec. 13. new text begin APPROPRIATION; BEGINNING FARMER LOANS.
new text end
new text begin
$....... in fiscal year 2018 is appropriated from the general fund to the chair for the purpose
of funding the beginning farmer revolving loan fund.
new text end
Sec. 14. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2016, section 16A.27, subdivision 4,
new text end
new text begin
is repealed.
new text end
APPENDIX
Repealed Minnesota Statutes: 17-0552
16A.27 STATE FUNDS; DEPOSIT; CONTROL BY COMMISSIONER.
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.