HF3176 Summary

• Expands the definition of "qualifying government" to include counties and statutory or home rule charter cities with a population of more than 100,000 (previously required more than 100,000).

• Modifies bond rating eligibility criteria to require a rating of AA or higher by one or more national rating organizations within the prior 18-month period, replacing the previous language about "highest category" ratings.

• Allows counties and cities with a population of 100,000 or less that lose their qualifying status due to downgrade below AA rating to continue managing previously invested funds but prohibits new additional investments.

• Permits qualifying governments to invest in index mutual funds based on broad market United States equity indices, with direct investment required through the fund's main sales office.

• Allows qualifying governments to invest with the Minnesota State Board of Investment subject to the board's adopted terms and minimum amounts.

• Effective date: July 1, 2022.