Bill Text: MN HF1541 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Minnesota State Colleges and Universities; reserves project established, and reports required.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-03-13 - Introduction and first reading, referred to Higher Education Finance and Policy [HF1541 Detail]
Download: Minnesota-2013-HF1541-Introduced.html
1.2relating to higher education; establishing MnSCU reserves project; requiring
1.3reports;proposing coding for new law in Minnesota Statutes, chapter 136F.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [136F.791] MNSCU RESERVES PROJECT.
1.6 Subdivision 1. Establishment. To increase the distribution of potential economic
1.7benefit of deposits of reserve funds of the institutions of Minnesota State Colleges and
1.8Universities (MnSCU), the MnSCU reserves project is established to transfer certain
1.9reserve deposits of selected institutions from the state treasury to a community financial
1.10institution. Notwithstanding section 16A.27, by January 2 of every other year beginning
1.11January 2, 2014, the commissioner of management and budget shall transfer the specified
1.12amount of board-required reserve funds of colleges and universities selected by the board
1.13of trustees under subdivision 2 to a community financial institution designated for each of
1.14the participating colleges and universities.
1.15 Subd. 2. Participating colleges and universities. By August 15 of every other year
1.16beginning August 15, 2013, colleges and universities may apply to the Board of Trustees
1.17of Minnesota State Colleges and Universities for participation in the MnSCU reserves
1.18project. Each applicant must designate one or more community financial institutions for
1.19the deposit of a specified amount of board-required reserves with the terms of the deposit
1.20for each designated community financial institution. The designated community financial
1.21institution must be located in the geographic area of a participating campus. From the
1.22applicants, the board shall select up to eight postsecondary institutions to participate in
1.23the MnSCU reserves project. In making its selection, the board must consider the size
1.24of the institution's reserves and the terms offered by the designated community financial
2.1institutions. Unless there are not sufficient applicants, two-year and four-year institutions
2.2must be selected to participate in the MnSCU reserves project and the majority of the
2.3selected institutions must be located in greater Minnesota. By December 1 of every other
2.4year beginning December 1, 2013, the board must notify the commissioner of management
2.5and budget of the participating colleges and universities, the deposit amount for each
2.6institution, and the associated community financial institutions. The MnSCU reserves
2.7project shall provide for the transfer of deposits for no more than a two-year period.
2.8 Subd. 3. Community financial institution. As used in this section, "community
2.9financial institution" means a federally insured bank or credit union, chartered as a bank
2.10or credit union by the state of Minnesota or the United States, that is headquartered in
2.11Minnesota and that has no more than $2,500,000,000 in assets.
2.12 Subd. 4. Evaluation and report. The commissioner of management and budget and
2.13the board of trustees shall independently evaluate the effectiveness or harm of the MnSCU
2.14reserves project in increasing the use of community financial institutions and providing
2.15wider distribution of the economic benefit of the deposit of postsecondary reserves. Each
2.16evaluation must include the participating colleges, universities, and community financial
2.17institutions. The commissioner of management and budget and the board of trustees shall
2.18report on the MnSCU reserves project evaluation to the appropriate committees of the
2.19legislature by February 1 of every other year beginning on February 1, 2016.
1.3reports;proposing coding for new law in Minnesota Statutes, chapter 136F.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [136F.791] MNSCU RESERVES PROJECT.
1.6 Subdivision 1. Establishment. To increase the distribution of potential economic
1.7benefit of deposits of reserve funds of the institutions of Minnesota State Colleges and
1.8Universities (MnSCU), the MnSCU reserves project is established to transfer certain
1.9reserve deposits of selected institutions from the state treasury to a community financial
1.10institution. Notwithstanding section 16A.27, by January 2 of every other year beginning
1.11January 2, 2014, the commissioner of management and budget shall transfer the specified
1.12amount of board-required reserve funds of colleges and universities selected by the board
1.13of trustees under subdivision 2 to a community financial institution designated for each of
1.14the participating colleges and universities.
1.15 Subd. 2. Participating colleges and universities. By August 15 of every other year
1.16beginning August 15, 2013, colleges and universities may apply to the Board of Trustees
1.17of Minnesota State Colleges and Universities for participation in the MnSCU reserves
1.18project. Each applicant must designate one or more community financial institutions for
1.19the deposit of a specified amount of board-required reserves with the terms of the deposit
1.20for each designated community financial institution. The designated community financial
1.21institution must be located in the geographic area of a participating campus. From the
1.22applicants, the board shall select up to eight postsecondary institutions to participate in
1.23the MnSCU reserves project. In making its selection, the board must consider the size
1.24of the institution's reserves and the terms offered by the designated community financial
2.1institutions. Unless there are not sufficient applicants, two-year and four-year institutions
2.2must be selected to participate in the MnSCU reserves project and the majority of the
2.3selected institutions must be located in greater Minnesota. By December 1 of every other
2.4year beginning December 1, 2013, the board must notify the commissioner of management
2.5and budget of the participating colleges and universities, the deposit amount for each
2.6institution, and the associated community financial institutions. The MnSCU reserves
2.7project shall provide for the transfer of deposits for no more than a two-year period.
2.8 Subd. 3. Community financial institution. As used in this section, "community
2.9financial institution" means a federally insured bank or credit union, chartered as a bank
2.10or credit union by the state of Minnesota or the United States, that is headquartered in
2.11Minnesota and that has no more than $2,500,000,000 in assets.
2.12 Subd. 4. Evaluation and report. The commissioner of management and budget and
2.13the board of trustees shall independently evaluate the effectiveness or harm of the MnSCU
2.14reserves project in increasing the use of community financial institutions and providing
2.15wider distribution of the economic benefit of the deposit of postsecondary reserves. Each
2.16evaluation must include the participating colleges, universities, and community financial
2.17institutions. The commissioner of management and budget and the board of trustees shall
2.18report on the MnSCU reserves project evaluation to the appropriate committees of the
2.19legislature by February 1 of every other year beginning on February 1, 2016.
