MN HF3776

Qualifies cities and counties with a population exceeding 100,000 or highest national bond rating to invest in index mutual funds or with the Minnesota State Board of Investment.

Allows qualifying governments to invest up to 15 percent of unrestricted cash, cash equivalents, deposits, and investments in S&P 500 Index or Dow Jones U.S. Total Stock Market Index funds.

Restricts investments to funds designated for long-term capital planning, revenue stabilization reserves, and long-term obligations including pension and postemployment benefit liabilities.

Requires governing bodies to adopt a resolution acknowledging that index mutual fund investments carry greater risk of loss than fixed income investments before proceeding.

Investments must be made directly with the main office of index mutual funds and calculations based on the government's most recent audited statement of net position.