MN HF409

Authorizes "qualifying governments" (counties and cities over 100,000 population, those with highest-rated general obligation bonds, or self-insurance pools) to invest in index mutual funds tracking the S&P 500 or Dow Jones U.S. Total Stock Market Index, or with the Minnesota State Board of Investment.

Limits investments to 15 percent of combined unassigned cash, cash equivalents, deposits, and investments for counties and cities; self-insurance pools may invest up to the lesser of 15 percent of cash/equivalents/deposits/investments or 25 percent of net assets.

Restricts investments to funds held for long-term capital plans authorized by city council or county board, or long-term obligations including capital reserves, environmental exposure funds, pension liabilities, postemployment benefits, and compensated absences.

Requires governing bodies to adopt a resolution acknowledging that investments carry risk of loss and confirming understanding of the specific funds and investments being made.

Establishes accounts administered by the Public Employees Retirement Association (PERA) for governments investing with the State Board of Investment, with PERA authorized to charge reasonable administrative fees and report investment returns and costs annually.