1.1                          A bill for an act 
  1.2             relating to local government; towns; authorizing the 
  1.3             town board to set up a petty cash fund; amending 
  1.4             Minnesota Statutes 1994, section 366.01, by adding a 
  1.5             subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 366.01, is 
  1.8   amended by adding a subdivision to read: 
  1.9      Subd. 12.  [IMPREST FUND.] The town board may establish an 
  1.10  imprest fund for the payment in cash of any proper claim against 
  1.11  the town which it is impractical to pay in any other manner, 
  1.12  except that no claim for salary or personal expenses of an 
  1.13  officer or employee shall be paid from the fund.  The town board 
  1.14  shall appoint a custodian of the fund who shall be responsible 
  1.15  for its safekeeping and disbursement according to law.  Money 
  1.16  for the operation of the fund shall be secured by a transfer 
  1.17  from the general fund.  A claim itemizing all the various 
  1.18  demands for which disbursements have been made from the fund 
  1.19  shall be presented to the town board at the next town board 
  1.20  meeting after the disbursements have been made.  The town board 
  1.21  shall act upon it as in the case of other claims and an order 
  1.22  shall be issued to the custodian for the amount allowed.  The 
  1.23  custodian shall use the proceeds of the order to replenish the 
  1.24  fund; and if the town board fails to approve the claim in full 
  1.25  for any sufficient reason, the custodian shall be personally 
  2.1   responsible for the difference.