SF 4214

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 09/07/2022 11:44am

A bill for an act
relating to local government; providing additional investment authority for certain
self-insurance pools and qualifying governments; amending Minnesota Statutes
2020, section 118A.09, subdivisions 1, 2; proposing coding for new law in
Minnesota Statutes, chapter 118A.

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

Section 1.

Minnesota Statutes 2020, section 118A.09, subdivision 1, is amended to read:

Subdivision 1.

Definition; qualifying government.

"Qualifying government" means:

(1) a county or statutory or home rule charter city with a population of more than 100,000;

(2) a county or statutory or home rule charter city deleted text begin which had its most recently issued
general obligation bonds rated in the highest category by a national bond rating agency deleted text end new text begin
whose most recent long-term, senior, general obligation rating by one or more national
rating organizations in the prior 18-month period is AA or higher new text end ; or

(3) a self-insurance pool listed in section 471.982, subdivision 3.

A county or statutory or home rule charter city with a population of 100,000 or less that is
a qualifying government, but deleted text begin is deleted text end subsequently deleted text begin rated less than the highest category by a
national bond rating agency on a general obligation bond issue deleted text end new text begin does not meet the threshold
under clause (2) new text end , may not invest additional funds under this section but may continue to
manage funds previously invested under subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 2.

Minnesota Statutes 2020, 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 new text begin , on the condition that index mutual fund investments must be
made directly with the main sales office of the fund new text end ; or

(2) with the Minnesota State Board of Investment subject to such terms and minimum
amounts as may be adopted by the board. deleted text begin Index mutual fund investments must be made
directly with the main sales office of the fund.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 3.

new text begin [118A.10] SELF-INSURANCE POOLS; ADDITIONAL INVESTMENT
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "qualifying government"
means a self-insurance pool formed under section 471.982.
new text end

new text begin Subd. 2. new text end

new text begin Additional investment authority. new text end

new text begin A qualifying government may invest in the
securities specified in section 11A.24.
new text end

new text begin Subd. 3. new text end

new text begin Approval. new text end

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

new text begin (1) the governing body understands that investments under this section have a risk of
loss; and
new text end

new text begin (2) the governing body understands the type of funds that are being invested and the
specific investment itself.
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