MN SF3563

Grants counties and cities with population exceeding 100,000 or highest bond rating authority to invest in index mutual funds indexed to the Standard & Poor's 500 Index or Dow Jones United States Total Stock Market Index, or with the Minnesota State Board of Investment.

Limits investments to cash and funds held for long-term capital planning, revenue stabilization reserves, and long-term obligations including pension liabilities, postemployment benefits, and compensated absences.

Restricts equity investments to a maximum of 15 percent of unrestricted cash, cash equivalents, deposits, and investments, calculated using the government's most recent audited statement of net position.

Requires governing bodies to adopt a resolution acknowledging that index mutual fund investments carry greater risk of loss than fixed income investments and confirming understanding of the investment type and nature.