Minnesota SF 2739: Peacetime emergency declaration by governor duration extension legislative approval requirement; peacetime emergency extensions duration limitation establishment

Bill Text

1.1 A bill for an act​
1.2 relating to higher education; requiring minimum standards for certain higher​
1.3 education student banking accounts; proposing coding for new law in Minnesota​
1.4 Statutes, chapter 135A.​
1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.6 Section 1. [135A.146] REGULATION OF STUDENT BANKING PRACTICES.​
1.7 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have​
1.8 the meanings given.​
1.9 (b) "Higher education institution" means a public postsecondary institution, private​
1.10 postsecondary institution, or Tribal college that operates in Minnesota.​
1.11 (c) "Financial institution" means a bank, credit union, or other entity offering consumer​
1.12 financial services, including checking or savings accounts, debit cards, or other consumer​
1.13 financial products.​
1.14 (d) "Student banking service" means a consumer financial product or service other than​
1.15 student loans, including checking or deposit accounts, prepaid cards, debit cards, or credit​
1.16 cards provided by a financial institution to an individual through a partnership, agreement,​
1.17 or contract with a higher education institution where the individual is enrolled as a student.​
1.18 (e) "Tier 1 service" means a student banking service that is used to disburse financial​
1.19 aid.​
1.20 (f) "Tier 2 service" means a student banking service that is not used to disburse financial​
1.21 aid.​
1​Section 1.​
25-04074 as introduced​03/12/25 REVISOR VH/VJ​
SENATE​
STATE OF MINNESOTA​
S.F. No. 2739​NINETY-FOURTH SESSION​
(SENATE AUTHORS: FATEH)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​918​03/20/2025​
Referred to Higher Education​

2.1 Subd. 2.Student banking services.A higher education institution must not enter into​
2.2 a partnership, agreement, or contract with a financial institution to offer a student banking​
2.3 service that does not comply with the requirements of subdivisions 3 to 5. The Board of​
2.4 Regents of the University of Minnesota is requested to comply with this section.​
2.5 Subd. 3.Prohibited fees.(a) A higher education institution must not permit a financial​
2.6 institution to charge the following fees in connection with a tier 1 or tier 2 service:​
2.7 (1) nonsufficient fund or overdraft fees;​
2.8 (2) monthly, annual, or other maintenance fees; or​
2.9 (3) account closure fees.​
2.10 (b) A higher education institution must not permit a financial institution to charge the​
2.11 following fees in connection with a tier 1 service:​
2.12 (1) deposit or withdrawal fees; or​
2.13 (2) dormant account fees.​
2.14 Subd. 4.Transparency.A higher education institution must require a financial institution​
2.15 to provide clear, plain-language terms of service for the student banking service to ensure​
2.16 that a student fully understands account terms and associated conditions.​
2.17 Subd. 5.Prevailing market terms.A higher education institution must require partner​
2.18 financial institutions to offer terms and conditions in connection with student banking​
2.19 services that are at least as favorable to the student as prevailing market norms for comparable​
2.20 financial services, including by providing competitive interest rates.​
2.21 Subd. 6.Reporting requirements.By January 15 of each year, a higher education​
2.22 institution must report to the commissioner the following information related to student​
2.23 banking services:​
2.24 (1) the total number of service accounts maintained by students at the higher education​
2.25 institution broken out by tier 1 service and tier 2 service accounts;​
2.26 (2) how much money the higher education institution receives from financial institutions​
2.27 in connection with student banking service accounts broken out by tier 1 and tier 2 service​
2.28 accounts;​
2.29 (3) the identity of partner financial institutions; and​
2​Section 1.​
25-04074 as introduced​03/12/25 REVISOR VH/VJ​

3.1 (4) a summary of terms and conditions offered to students in connection with the tier 1​
3.2 and tier 2 service accounts, including whether such terms and conditions comply with the​
3.3 requirements of this section.​
3​Section 1.​
25-04074 as introduced​03/12/25 REVISOR VH/VJ​