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Key: (1) language to be deleted (2) new language

CHAPTER 52--H.F.No. 997

An act

relating to local government; modifying the requirements for payment of claims;

amending Minnesota Statutes 2016, section 471.38; repealing Minnesota Statutes 2016, section 471.391, subdivision 1.

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

Section 1.

Minnesota Statutes 2016, section 471.38, is amended to read:

471.38 CLAIMS.

Subdivision 1.

Itemization; declaration.

Except as provided in subdivision 2, deleted text begin wheredeleted text end new text begin ifnew text end an account, claim or demand against deleted text begin any county, local social services agency, county board of education for unorganized territory, school district, town or home rule charter city of the second, third or fourth class, or any park district,deleted text end new text begin a local governmentnew text end for any property or services can be itemized in the ordinary course of business, the board or officer authorized by law to audit and allow claims shall not audit or allow the claim until the person claiming payment, or the person's agent, deleted text begin reduces it todeleted text end new text begin provides to the board or officer an itemized list innew text end writing or new text begin in new text end an electronic transaction recorddeleted text begin , in items and signs a declaration to the effectdeleted text end new text begin . By making the claim for payment, the person making the claim is declaringnew text end that deleted text begin suchdeleted text end new text begin thenew text end account, claim, or demand is just and correct and that no part of it has been paid. The board or officer may in its discretion allow a claim prepared by the clerk or secretary of deleted text begin suchdeleted text end new text begin thenew text end board or officer prior to deleted text begin suchdeleted text end new text begin thenew text end declaration by the claimant if the declaration is made on the check or order-check by which the claim is paid, as provided in section 471.391, subdivision 2.new text begin For the purposes of this section, "local government" means any county, local social services agency, school district, town, or home rule charter city of the second, third or fourth class, or any park district.new text end

Subd. 2.

Application.

The provisions of this section do not apply to any claim or demand for an annual salary or fees of jurors or witnesses, fixed by law, nor to the salary or wages of any employee whose salary or wages have been fixed on an hourly, daily, weekly or monthly basis, by the governing board of the municipality, and which is now authorized by law to be paid on a payroll basis.

Subd. 3.

Electronic funds transfer.

Electronic funds transfer is the process of value exchange via mechanical means without the use of checks, drafts, or similar negotiable instruments. A deleted text begin school districtdeleted text end new text begin local governmentnew text end may make an electronic funds transfer for the following:

(1) for a claim for a payment from an imprest payroll bank account or investment of excess money;

(2) for a payment of tax or aid anticipation certificates;

(3) for a payment of contributions to pension or retirement fund;

(4) for vendor payments; and

(5) for payment of bond principal, bond interest and a fiscal agent service charge from the debt redemption fund.

Subd. 3a.

deleted text begin School districtdeleted text end Eligibility.

The authorization in subdivision 3 extends only to a deleted text begin school districtdeleted text end new text begin local governmentnew text end that has enacted all of the following policy controls:

(a) the deleted text begin school boarddeleted text end new text begin governing bodynew text end shall annually delegate the authority to make electronic funds transfers to a designated business administratornew text begin or chief financial officer or the officer's designeenew text end ;

(b) the disbursing bank shall keep on file a certified copy of the delegation of authority;

(c) the initiator of the electronic transfer shall be identified;

(d) the initiator shall document the request and obtain an approval from the designated business administratornew text begin , or chief financial officer or the officer's designee,new text end before initiating the transfernew text begin as required by internal control policiesnew text end ;

(e) a written confirmation of the transaction shall be made no later than one business day after the transaction and shall be used in lieu of a check, order check or warrant required to support the transaction;

(f) a list of all transactions made by electronic funds transfer shall be submitted to the deleted text begin school boarddeleted text end new text begin governing bodynew text end at its next regular meeting after the transaction.

Sec. 2.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2016, section 471.391, subdivision 1, new text end new text begin is repealed. new text end

Presented to the governor May 11, 2017

Signed by the governor May 12, 2017, 11:44 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes