SF 4367

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/12/2026 10:00 a.m.

A bill for an act
relating to local government; authorizing housing and redevelopment agencies to
utilize certain long-term equity investment authority; modifying investment types
in which a qualifying government may invest; amending Minnesota Statutes 2024,
section 118A.09, subdivisions 2, 4, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 118A.09, subdivision 2, is amended to read:

Subd. 2.

Additional investment authority.

Qualifying governments may invest the
amount described in subdivision 3:

(1) in index mutual funds based in the United States and indexed to a broad market
United States equity index, on the condition that index mutual fund investments must be
made directly with the main sales office of the fund; deleted text begin or
deleted text end

(2) new text begin in shares of a company that:
new text end

new text begin (i) is registered with the United States Securities and Exchange Commission;
new text end

new text begin (ii) concentrates in investment grade fixed income securities;
new text end

new text begin (iii) holds, at the time of purchase, at least 80 percent of its investments in federally
insured or guaranteed securities, including by government sponsored entities; and
new text end

new text begin (iv) has a mission, in part, to provide direct investment in local multifamily housing
development; or
new text end

new text begin (3) new text end with the Minnesota State Board of Investment subject to such terms and minimum
amounts as may be adopted by the board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2024, section 118A.09, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Housing and redevelopment authorities; investment authority. new text end

new text begin A housing
and redevelopment authority created in a county or statutory or home rule charter city that
meets the criteria of subdivision 1, paragraph (a), clause (1) or (2), may invest its funds in
investments that meet the criteria of subdivision 2, clause (2), subject to the limitations and
requirements for qualifying governments under subdivisions 3 and 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2024, section 118A.09, subdivision 4, is amended to read:

Subd. 4.

Approval.

Before investing pursuant to this section, the governing body of the
qualifying government must adopt a resolution new text begin or investment policy new text end that includes the
following statements:

(1) the governing body understands that investments under subdivision 2 have a risk of
loss;

(2) the governing body understands the type of funds that are being invested and the
specific investment itself; and

(3) the governing body certifies that all funds designated for investment through the
State Board of Investment meet the requirements of this section and the policies and
procedures established by the State Board of Investment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end