Minnesota 2023-2024 Regular Session

Minnesota House Bill HF159

Introduced

1/9/23

Refer

1/9/23

Caption

Additional investment authority provided for qualifying local units of government.

Impact

If enacted, HF159 would impact Minnesota Statutes 2022, specifically section 118A.09, by allowing qualifying governments to allocate a portion of their funds into broader market index mutual funds. The legislation establishes parameters for how much of their financial reserves—up to 15% of total unassigned cash and other financial assets—can be directed towards these investments, thereby promoting better investment practices among local entities.

Summary

HF159 is a legislative bill aimed at enhancing the investment authority of qualifying local units of government in Minnesota. The bill specifically targets counties or cities with populations exceeding 100,000 or those with high bond ratings, granting them the ability to invest in United States-based index mutual funds. This is seen as a strategic move to diversify investment portfolios for local governments, potentially leading to increased fiscal stability and growth in community funds.

Contention

Despite its potential benefits, HF159 has sparked discussions about the risks associated with increased investment freedom for local governments. Critics argue that enabling local governments to engage more freely in financial markets could lead to losses or mismanagement of public funds. Proponents, however, contend that this legislative change is necessary to modernize investment strategies for local governments, reflecting a growing recognition of the need for innovative financial management in times of economic uncertainty.

Latest MN HF159 Activity

View All Events: MN 2023-2024 Regular Session HF159

Companion Bills

MN SF323

Similar To Additional investment authority provision for qualifying local units of government

Previously Filed As

MN SF4367

Housing and redevelopment agencies utilizing certain long-term equity investment authority authorization and qualifying government investment types modifications

MN HF4186

Housing and redevelopment agencies authorized to utilize certain long-term equity investment authority, and investment types in which a qualifying government may invest modified.

MN HB871

Local government; additional authorized investments; provide

MN SB1438

An act to amend Sections 41015, 41033, and 42651 of the Education Code, to amend Sections 6509.5, 6509.7, 6558, 16431, 27000.1, 27000.3, 53600, 53620, 53630, 53631, 53635.2, 53641, 53651, 53682, 53684, 53844, 57603, 59283, 67476, and 67480 of, to amend and renumber Sections 53600.5, 53600.6, 53601, and 53601.8 of, and to repeal Sections 53600.3, 53601, 53601.1, 53601.2, 53601.5, 53601.6, 53602, 53603, 53604, 53605, 53606, 53607, 53608, 53609, 53610, 53630.5, and 53635 of, the Government Code, to amend Sections 1702 and 6077.6 of the Harbors and Navigation Code, to amend Sections 9066 and 9067 of the Health and Safety Code, to amend Sections 12368, 28818, and 107105 107015 of the Public Utilities Code, and to amend Section 100.06 of the Revenue and Taxation Code, relating to local government.

MN SB595

Local government: investments and financial reports.

MN HB5270

Relating to authorized investments by governmental entities.

MN SB2642

Relating to authorized investments by governmental entities.

MN HB844

Authorize tax credit for qualifying technology investments

MN SB957

Public finance; modifying investment procedures relating to local governments. Effective date.

MN SB957

Public finance; modifying investment procedures relating to local governments. Effective date.

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