Bill Text: MN HF610 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Transportation funding provided through new regulations governing checkbook money created by state-chartered banks, and penalty provided.
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2011-02-21 - Introduction and first reading, referred to Commerce and Regulatory Reform [HF610 Detail]
Download: Minnesota-2011-HF610-Introduced.html
1.2relating to transportation; providing for funding of transportation through new
1.3regulations governing checkbook money created by state-chartered banks;
1.4providing a penalty;proposing coding for new law in Minnesota Statutes,
1.5chapter 161.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [161.087] USE OF NEW WEALTH-BASED BOOKKEEPING ENTRY
1.8MONEY FOR TRANSPORTATION FUNDING.
1.9 Subdivision 1. Applicability. (a) The funding of all construction and maintenance
1.10of all state, county, statutory or home rule charter city, and town highways, streets, roads,
1.11bridges, transit systems, and other transportation infrastructure must be achieved in lieu
1.12of taxation or bonding through a revision to current state-chartered bank regulations that
1.13will provide for the state-chartered banks to create new bookkeeping entry money as
1.14provided in this section.
1.15(b) For purposes of this section, "state-chartered bank" means a bank chartered
1.16in Minnesota.
1.17 Subd. 2. Use of project money. A road authority sponsoring an infrastructure
1.18project referenced in subdivision 1, shall determine the project to be constructed using
1.19the current methods for selection and development and shall submit the necessary
1.20documentation to the nearest state-chartered bank for funding. The submitted
1.21documentation must contain the accepted, verified, and authorized project bid or the
1.22amount of funds needed if done by an existing road authority doing the project.
1.23 Subd. 3. Origination and movement of new wealth-based checkbook money.
1.24(a) Each state-chartered bank shall set up an asset-monetizing account for the sole purpose
1.25of monetizing infrastructure projects. For all auditing purposes, this account must be
2.1considered as a separate agency of the state-chartered banks and must not be considered as
2.2part of the current ongoing banking operations.
2.3(b) The state-chartered bank receiving the project information as described in
2.4subdivision 2 shall then electronically transfer the new funds to the account of the road
2.5authority sponsoring the infrastructure project, which must use these funds to pay for the
2.6project and for no other purpose. The road authority is responsible for the oversight of the
2.7completion of the project according to the terms of the contract.
2.8 Subd. 4. Direction to bank examiners. The state-chartered banks are free of
2.9any reserve requirements affected by the creation of any and all money that is required
2.10under this section and any liability that might be created to the state-chartered banks will
2.11exist only until the money is transferred.
2.12 Subd. 5. Auditing; public transparency. The state and legislative auditors shall
2.13ensure an ongoing and accurate accounting of the total amount of money created to fund
2.14projects under this section. The state auditor shall update this accounting on the first
2.15business day of the third week of each month and make it available online
2.16 Subd. 6. Criminal penalty for noncompliance or fraud. (a) Any noncompliance
2.17or fraud relating to this section by an officer or employee of a state-chartered bank; an
2.18official or employee of the state, county, statutory or home rule charter city, or town;
2.19or an officer or employee of a contractor or subcontractor, is a felony and is subject to
2.20the penalties provided in paragraph (b).
2.21(b) Any person found guilty of noncompliance or fraud relating to this section is
2.22subject to a fine of up to $100,000,000 and imprisonment of up to 40 years, or both.
2.23 Subd. 7. Pilot project. The state shall implement and administer a pilot project,
2.24which must be completed within 180 days after the effective date of this section, to ensure
2.25the successful implementation of all procedures required by this section.
2.26EFFECTIVE DATE.This section, except subdivision 7, is effective August 1,
2.272012, and applies to all projects for which bids or funds are solicited on or after that date.
2.28Subdivision 7 is effective the day following final enactment.
1.3regulations governing checkbook money created by state-chartered banks;
1.4providing a penalty;proposing coding for new law in Minnesota Statutes,
1.5chapter 161.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. [161.087] USE OF NEW WEALTH-BASED BOOKKEEPING ENTRY
1.8MONEY FOR TRANSPORTATION FUNDING.
1.9 Subdivision 1. Applicability. (a) The funding of all construction and maintenance
1.10of all state, county, statutory or home rule charter city, and town highways, streets, roads,
1.11bridges, transit systems, and other transportation infrastructure must be achieved in lieu
1.12of taxation or bonding through a revision to current state-chartered bank regulations that
1.13will provide for the state-chartered banks to create new bookkeeping entry money as
1.14provided in this section.
1.15(b) For purposes of this section, "state-chartered bank" means a bank chartered
1.16in Minnesota.
1.17 Subd. 2. Use of project money. A road authority sponsoring an infrastructure
1.18project referenced in subdivision 1, shall determine the project to be constructed using
1.19the current methods for selection and development and shall submit the necessary
1.20documentation to the nearest state-chartered bank for funding. The submitted
1.21documentation must contain the accepted, verified, and authorized project bid or the
1.22amount of funds needed if done by an existing road authority doing the project.
1.23 Subd. 3. Origination and movement of new wealth-based checkbook money.
1.24(a) Each state-chartered bank shall set up an asset-monetizing account for the sole purpose
1.25of monetizing infrastructure projects. For all auditing purposes, this account must be
2.1considered as a separate agency of the state-chartered banks and must not be considered as
2.2part of the current ongoing banking operations.
2.3(b) The state-chartered bank receiving the project information as described in
2.4subdivision 2 shall then electronically transfer the new funds to the account of the road
2.5authority sponsoring the infrastructure project, which must use these funds to pay for the
2.6project and for no other purpose. The road authority is responsible for the oversight of the
2.7completion of the project according to the terms of the contract.
2.8 Subd. 4. Direction to bank examiners. The state-chartered banks are free of
2.9any reserve requirements affected by the creation of any and all money that is required
2.10under this section and any liability that might be created to the state-chartered banks will
2.11exist only until the money is transferred.
2.12 Subd. 5. Auditing; public transparency. The state and legislative auditors shall
2.13ensure an ongoing and accurate accounting of the total amount of money created to fund
2.14projects under this section. The state auditor shall update this accounting on the first
2.15business day of the third week of each month and make it available online
2.16 Subd. 6. Criminal penalty for noncompliance or fraud. (a) Any noncompliance
2.17or fraud relating to this section by an officer or employee of a state-chartered bank; an
2.18official or employee of the state, county, statutory or home rule charter city, or town;
2.19or an officer or employee of a contractor or subcontractor, is a felony and is subject to
2.20the penalties provided in paragraph (b).
2.21(b) Any person found guilty of noncompliance or fraud relating to this section is
2.22subject to a fine of up to $100,000,000 and imprisonment of up to 40 years, or both.
2.23 Subd. 7. Pilot project. The state shall implement and administer a pilot project,
2.24which must be completed within 180 days after the effective date of this section, to ensure
2.25the successful implementation of all procedures required by this section.
2.26EFFECTIVE DATE.This section, except subdivision 7, is effective August 1,
2.272012, and applies to all projects for which bids or funds are solicited on or after that date.
2.28Subdivision 7 is effective the day following final enactment.
