1.1 	A bill for an act
1.2 	relating to local government; authorizing the
1.3 	investment of funds in certain securities; amending
1.4 	Minnesota Statutes 2004, section 118A.04, subdivision
1.5 	3.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 118A.04,
1.8 	subdivision 3, is amended to read:
1.9 		Subd. 3.State and local securities.  Funds may be
1.10 	invested in the following:
1.11 	(1) any security which is a general obligation of any state
1.12 	or local government with taxing powers which is rated "A" or
1.13 	better by a national bond rating service;
1.14 	(2) any security which is a revenue obligation of any state
1.15 	or local government with taxing powers which is rated "AA" or
1.16 	better by a national bond rating service; and 
1.17 	(3) a general obligation of the Minnesota housing finance
1.18 	agency which is a moral obligation of the state of Minnesota and
1.19 	is rated "A" or better by a national bond rating agency; and 
1.20 	(4) unrated general obligation securities of a Minnesota
1.21 	local government with taxing powers.