1.1                          A bill for an act
  1.2             relating to state government; authorizing a pilot 
  1.3             project under which the State Board of Investment may 
  1.4             make certain additional investments in Minnesota 
  1.5             financial institutions rated outstanding under the 
  1.6             Federal Community Reinvestment Act. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [INVESTMENT PILOT PROJECT.] 
  1.9      In addition to investments authorized by Minnesota 
  1.10  Statutes, section 11A.24, subdivision 4, paragraph (a), clause 
  1.11  (2), the State Board of Investment may invest in repurchase 
  1.12  agreements issued by United States banks and savings 
  1.13  institutions whose most recent rating under the Federal 
  1.14  Community Reinvestment Act is "outstanding."  Notwithstanding 
  1.15  Minnesota Statutes, section 11A.24, subdivision 4, paragraph 
  1.16  (a), clause (5), for investments under this section, the State 
  1.17  Board of Investment must require collateral as required by 
  1.18  Minnesota Statutes, section 118A.03.  The state board may not 
  1.19  have total outstanding investments, at any one time, of more 
  1.20  than $50,000,000 under authority of this section.  This limit 
  1.21  does not apply to investments that meet the criteria in 
  1.22  Minnesota Statutes, section 11A.24, subdivision 4, paragraph 
  1.23  (a), clause (2).  If the state board invests in repurchase 
  1.24  agreements under authority of this section in an institution 
  1.25  rated "outstanding," and the institution later receives a 
  1.26  different rating, the state board may retain the investment for 
  2.1   the term of the repurchase agreement, but may not renew the 
  2.2   repurchase agreement or invest in new repurchase agreements from 
  2.3   the institution under authority of this paragraph until the 
  2.4   institution receives an "outstanding" rating.  This section 
  2.5   expires June 30, 2006. 
  2.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  2.7   following final enactment.