HF 4186

01/27/26   REVISOR  MS/DG  26-06610
This Document can be made available
in alternative formats upon request  State of Minnesota
  HOUSE OF REPRESENTATIVES
  NINETY-FOURTH SESSION
  H. F. No.  4186
03/12/2026     Authored by Luger-Nikolai, Frazier and Virnig
  The bill was read for the first time and referred to the Committee on Elections Finance and Government Operations
1.1A bill for an act
1.2relating to local government; authorizing housing and redevelopment agencies to
1.3utilize certain long-term equity investment authority; modifying investment types
1.4in which a qualifying government may invest; amending Minnesota Statutes 2024,
1.5section 118A.09, subdivisions 2, 4, by adding a subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7Section 1. Minnesota Statutes 2024, section 118A.09, subdivision 2, is amended to read:
1.8Subd. 2. Additional investment authority. Qualifying governments may invest the
1.9amount described in subdivision 3:
1.10(1) in index mutual funds based in the United States and indexed to a broad market
1.11United States equity index, on the condition that index mutual fund investments must be
1.12made directly with the main sales office of the fund; or
1.13(2) in shares of a company that:
1.14(i) is registered with the United States Securities and Exchange Commission;
1.15(ii) concentrates in investment grade fixed income securities;
1.16(iii) holds, at the time of purchase, at least 80 percent of its investments in federally
1.17insured or guaranteed securities, including by government sponsored entities; and
1.18(iv) has a mission, in part, to provide direct investment in local multifamily housing
1.19development; or
1.20(3) with the Minnesota State Board of Investment subject to such terms and minimum
1.21amounts as may be adopted by the board.
Section 1.  1
01/27/26   REVISOR  MS/DG  26-06610
2.1      EFFECTIVE DATE. This section is effective the day following final enactment.
2.2    Sec. 2. Minnesota Statutes 2024, section 118A.09, is amended by adding a subdivision to
2.3  read:
2.4      Subd. 3a. Housing and redevelopment authorities; investment authority. A housing
2.5  and redevelopment authority created in a county or statutory or home rule charter city that
2.6  meets the criteria of subdivision 1, paragraph (a), clause (1) or (2), may invest its funds in
2.7  investments that meet the criteria of subdivision 2, clause (2), subject to the limitations and
2.8  requirements for qualifying governments under subdivisions 3 and 4.
2.9      EFFECTIVE DATE. This section is effective the day following final enactment.
2.10   Sec. 3. Minnesota Statutes 2024, section 118A.09, subdivision 4, is amended to read:
2.11     Subd. 4. Approval. Before investing pursuant to this section, the governing body of the
2.12 qualifying government must adopt a resolution or investment policy that includes the
2.13 following statements:
2.14     (1) the governing body understands that investments under subdivision 2 have a risk of
2.15 loss;
2.16     (2) the governing body understands the type of funds that are being invested and the
2.17 specific investment itself; and
2.18     (3) the governing body certifies that all funds designated for investment through the
2.19 State Board of Investment meet the requirements of this section and the policies and
2.20 procedures established by the State Board of Investment.
2.21     EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 3.  2