1.1     Senator .................... moves to amend S.F. No. 2239, the first engrossment, as 
1.2     follows:
1.3     Page 54, after line 3, insert:

1.4         ”Section 1. Minnesota Statutes 2004, section 69.77, subdivision 9, is amended to 
1.5     read:
1.6         Subd. 9. Local police and paid fire relief association investment authority.
 1.7     (a) The funds of the association must be invested in securities that are authorized 
1.8     investments under section  356A.06, subdivision 6 or 7, whichever applies. Up to 75 
1.9     percent of the market value of the assets of Notwithstanding any provision of section 
1.10    356A.06, subdivision 6 or 7 to the contrary, the special fund of the relief association 
1.11    may be additionally invested in:
1.12    (1) open-end investment companies registered under the federal Investment 
1.13    Company Act of 1940, if the portfolio investments of the investment companies comply 
1.14    with the type of securities authorized for investment under section  356A.06, subdivision 
1.15    7, up to 75 percent of the market value of the assets of the fund; and
1.16    (2) domestic government and corporate debt obligations that are not rated in the top 
1.17    four quality categories by a nationally recognized rating agency, and comparable unrated 
1.18    securities if the percentage of these assets does not exceed five percent of the total assets 
1.19    of the special fund or 15 percent of the special fund's non-equity assets, whichever is less, 
1.20    the special fund's participation is limited to 50 percent of a single offering of the debt 
1.21    obligations, and the special fund's participation is limited to 25 percent of an issuer's debt 
1.22    obligations that are not rated in the top four quality categories. Securities held by the 
1.23    association before June 2, 1989, that do not meet the requirements of this subdivision may 
1.24    be retained after that date if they were proper investments for the association on that date. 
1.25    (b) The governing board of the association may select and appoint investment 
1.26    agencies to act for and in its behalf or may certify special fund assets for investment by the 
1.27    State Board of Investment under section  11A.17. The governing board of the association 
2.1     may certify general fund assets of the relief association for investment by the State Board 
2.2     of Investment in fixed income pools or in a separately managed account at the discretion 
2.3     of the State Board of Investment as provided in section  11A.14. The governing board of 
2.4     the association may select and appoint a qualified private firm to measure management 
2.5     performance and return on investment, and the firm shall use the formula or formulas 
2.6     developed by the state board under section  11A.04, clause (11).”
2.7     Page 54, line 6, after ”of” insert ”:
2.8     (1)”
2.9     Page 54, line 8, before the period, insert ”: and
2.10    (2) domestic government and corporate debt obligations that are not rated in the top 
2.11    four quality categories by a nationally recognized rating agency, and comparable unrated 
2.12    securities if the percentage of these assets does not exceed five percent of the total assets 
2.13    of the pension plan or ten percent of the pension plan's non-equity assets, whichever is 
2.14    less, the pension plan's participation is limited to 50 percent of a single offering of the 
2.15    debt obligations, and the pension plan's participation is limited to 25 percent of an issuer's 
2.16    debt obligations that are not rated in the top four quality categories”
2.17    Renumber the sections in sequence and correct the internal references 
2.18    Amend the title accordingly