1.1.................... moves to amend H.F. No. 2174 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 123B.14, subdivision 3, is amended to
1.4read:
1.5    Subd. 3. Official depository. (a) The treasurer shall deposit the funds of the district
1.6in the official depository.
1.7(b) In addition to the authority for deposit of district money pursuant to paragraph (a)
1.8or other provisions of this chapter, the treasurer may deposit district money in the official
1.9depository in accordance with the following conditions:
1.10(1) The official depository is authorized by the treasurer to (i) arrange for the
1.11redeposit of the money into deposit accounts in one or more banks or savings and loan
1.12associations that are located in the United States, and (ii) serve as custodian for the district
1.13with respect to the money redeposited into such accounts.
1.14(2) The full amount of the redeposited district funds, plus accrued interest, if any,
1.15must be insured by the Federal Deposit Insurance Corporation. Any entity serving as
1.16subcustodian for the official depository shall have had at least five years of general
1.17custodial experience.
1.18EFFECTIVE DATE.This section is effective the day following final enactment.

1.19    Sec. 2. Minnesota Statutes 2010, section 366.01, subdivision 4, is amended to read:
1.20    Subd. 4. Depository; terms; liability; interest. (a) They may designate a bank as
1.21the depository of town money for a time not extending beyond their official term, after the
1.22execution by the bank of a sufficient bond to the town to be approved by the board and
1.23filed in the office of the town clerk. They may then require the treasurer to deposit all or
1.24part of the town money in that bank. The designation shall be in writing, and set forth all
1.25the terms upon which the deposits are made. It shall be signed by the chair and clerk and
2.1filed with the clerk. The town treasurer shall not be liable for the loss of money while
2.2deposited in the bank. All interest on the money shall belong to the town.
2.3(b) In addition to the authority for deposit of town money pursuant to paragraph
2.4(a) or other provisions of this chapter, the town treasurer may deposit town money in a
2.5designated depository under the following conditions:
2.6(1) The designated depository is authorized by the town treasurer to (i) arrange for
2.7the redeposit of the money into deposit accounts in one or more banks or savings and loan
2.8associations that are located in the United States, and (ii) serve as custodian for the town
2.9with respect to the money redeposited into such accounts.
2.10(2) The full amount of the redeposited town funds, plus accrued interest, if any,
2.11must be insured by the Federal Deposit Insurance Corporation. Any entity serving as
2.12subcustodian for the designated depository shall have had at least five years of general
2.13custodial experience.
2.14EFFECTIVE DATE.This section is effective the day following final enactment.

2.15    Sec. 3. Minnesota Statutes 2010, section 385.07, is amended to read:
2.16385.07 FUNDS, WHERE DEPOSITED OR INVESTED.
2.17(a) All county funds shall be deposited promptly and intact by the county treasurer
2.18in the name of the county or invested as provided in section 118A.04. Interest and profits
2.19which accrue from such investment shall, when collected, be credited to the general
2.20revenue fund of the county.
2.21(b) In addition to the authority for deposit of county funds pursuant to paragraph
2.22(a), the county treasurer may deposit county funds in a designated depository under the
2.23following conditions:
2.24(1) The designated depository is authorized by the county treasurer to (i) arrange for
2.25the redeposit of the funds into deposit accounts in one or more banks or savings and loan
2.26associations that are located in the United States, and (ii) serve as custodian for the county
2.27with respect to the funds redeposited into such accounts.
2.28(2) The full amount of the redeposited county funds, plus accrued interest, if any,
2.29must be insured by the Federal Deposit Insurance Corporation. Any entity serving as
2.30subcustodian for the designated depository shall have had at least five years of general
2.31custodial experience.
2.32EFFECTIVE DATE.This section is effective the day following final enactment.

2.33    Sec. 4. Minnesota Statutes 2010, section 427.06, is amended to read:
3.1427.06 MONEY, HOW DEPOSITED; CHECKS, HOW DRAWN.
3.2(a) All money of any city kept in accordance with sections 427.02 to 427.07 in any
3.3depository designated by the council of the city shall be kept and deposited in the name
3.4of the city and the depository shall have no authority to pay out this money except upon
3.5checks drawn upon the depository signed by the city treasurer and countersigned by the
3.6city comptroller or recording officer of the city.
3.7(b) In addition to the authority for deposit of city money pursuant to paragraph (a) or
3.8other provisions of this chapter, the city treasurer may deposit city money in a designated
3.9depository under the following conditions:
3.10(1) The designated depository is authorized by the city treasurer to (i) arrange for the
3.11redeposit of the money into deposit accounts in one or more banks or savings and loan
3.12associations that are located in the United States, and (ii) serve as custodian for the city
3.13with respect to the money redeposited into such accounts.
3.14(2) The full amount of the redeposited city funds, plus accrued interest, if any,
3.15must be insured by the Federal Deposit Insurance Corporation. Any entity serving as
3.16subcustodian for the designated depository shall have had at least five years' experience
3.17serving in that capacity.
3.18EFFECTIVE DATE.This section is effective the day following final enactment."
3.19Delete the title and insert:
3.20"A bill for an act
3.21relating to local government finance; authorizing certain investments; providing
3.22for designated depositories;amending Minnesota Statutes 2010, sections
3.23123B.14, subdivision 3; 366.01, subdivision 4; 385.07; 427.06."