HF 702

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to volunteer firefighter relief associations; requiring investment of assets
with the State Board of Investment; specifying other requirements relating
to investment of assets; amending Minnesota Statutes 2006, sections 69.775;
424A.05, subdivision 4.

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

Section 1.

Minnesota Statutes 2006, section 69.775, is amended to read:

69.775 INVESTMENTS.

(a) The special fund assets of a relief association governed by sections 69.771 to
69.776 must be deleted text begin invested in securities that are authorized investments under section
356A.06, subdivision 6 or 7 deleted text end new text begin certified to the State Board of Investment for investment
as provided in section 11A.14, except to the extent the executive director of the State
Board of Investment determines it is desirable for a relief association to invest a minimal
amount of assets with a local financial institution that will provide administrative services
to the relief association new text end .

(b) deleted text begin Notwithstanding the foregoing, up to 75 percent of the market value of the assets
of the special fund, not including any money market mutual funds, may be invested in
open-end investment companies registered under the federal Investment Company Act of
1940, if the portfolio investments of the investment companies comply with the type of
securities authorized for investment under section deleted text begin 356A.06, subdivision 7 deleted text end .
deleted text end

deleted text begin (c) Securities held by the associations before June 2, 1989, that do not meet the
requirements of this section may be retained after that date if they were proper investments
for the association on that date.
deleted text end

deleted text begin (d) The governing board of the association may select and appoint investment
agencies to act for and in its behalf or may certify special fund assets for investment by the
State Board of Investment under section .
deleted text end

deleted text begin (e) deleted text end The governing board of the association may certify general fund assets of the
relief association for investment by the State Board of Investment in fixed income pools
or in a separately managed account at the discretion of the State Board of Investment as
provided in section 11A.14 new text begin or may invest the general fund assets in securities authorized
by the bylaws of the relief association new text end .

deleted text begin (f) The governing board of the association may select and appoint a qualified private
firm to measure management performance and return on investment, and the firm shall use
the formula or formulas developed by the state board under section , clause (11).
deleted text end

Sec. 2.

Minnesota Statutes 2006, section 424A.05, subdivision 4, is amended to read:

Subd. 4.

Investments of assets of the special fund.

The assets of the special
fund shall be deleted text begin invested only in securities authorized by section 69.775 deleted text end new text begin certified to the
State Board of Investment for investment under section 11A.14, except to the extent
the executive director of the State Board of Investment determines it is desirable for a
relief association to invest a minimal amount of assets with a local financial institution
that will provide administrative services to the relief association. The relief association
board of trustees must adopt investment policies that establish specific, measurable
investment objectives, describe how assets are to be allocated among the different classes
of investments available under section 11A.14 to achieve those objectives, and set forth
portfolio diversification, rebalancing, and risk guidelines new text end .

Sec. 3. new text begin EFFECTIVE DATE; TRANSITION.
new text end

new text begin Sections 1 and 2 are effective July 1, 2007. Each relief association must transfer the
assets of its special fund to the state board of investment no later than June 30, 2007.
new text end