MN SF2349

Defines "community financial institution" as a federally insured bank or credit union chartered in Minnesota or by the United States and headquartered in Minnesota.

Requires the commissioner to adopt rules establishing a program that invests state funds in community financial institutions through certificates of deposit and other short-term and long-term investments to increase lending to Minnesota businesses and residents.

Mandates investment rules include accountability and reporting requirements for participating institutions to track how state funds are used and their impact on lending to Minnesota businesses and residents.

Requires investment certificates of deposit to have a minimum one-year term to maturity while balancing state priorities of principal preservation, liquidity maintenance, and maximum return.

Gives preference to community financial institutions in competitive bids to serve as the state's fiscal agent bank when the community institution's bid price multiplied by 0.9 is lower than competing nonresident institutions and meets all other evaluation criteria.