S.F. No. 4602 Summary

• Establishes a 10-member working group to review and provide recommendations regarding mergers of financial institutions and related tax status designations.

• Working group membership includes three members selected by the Commissioner of Commerce (including the commissioner or designee, an attorney specializing in financial institution acquisition law, and a certified public accountant), plus representatives from the Independent Community Bankers of Minnesota, Minnesota Bankers Association, Minnesota Credit Union Network, and four legislative members from the House and Senate.

• Appointments must be made by July 1, 2020, with the first meeting convened no later than July 15, 2020; the House speaker's designee and Senate majority leader's designee will cochair and alternate leadership.

• Working group must develop recommendations on acquisition of non-tax-exempt financial institutions by tax-exempt institutions, reviewing acquisition history, state tax and revenue implications, current state law status, and advantages and disadvantages to Minnesota.

• Working group must submit findings and recommendations to legislative commerce committee chairs and ranking minority members by January 15, 2021, at which point the working group is repealed.