Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
State of Minnesota
S.F. No. 341 - Investment of Funds of a Hospital Owned and Operated by a Governmental Entity
Author: Senator Bill Ingebrigtsen
Prepared By: Liam Monahan, Senate Analyst (651/296-1791)
Date: March 14, 2017


SF No. 341 provides state or locally owned hospitals a broad exemption from generally applicable restrictions on the investment of local public funds by allowing the investment of hospital funds in any security recommended by an investment advisor, or by a bank or trust company exercising its trust powers.

Currently, Minnesota Statutes, section 144.581, subdivision 1, grants state or locally owned hospitals the authority and legal capacity of a nonprofit corporation under Chapter 317A, which permits nonprofit corporations to invest in securities.  The power to invest local public funds in securities, however, is limited by Chapter 118A.  Chapter 118A limits (1) what funds may be invested, and (2) what investment vehicles are permitted.  Currently permissible investment vehicles for local public funds include United States securities; state and local securities that meet varying bond rating thresholds; certain highly rated commercial paper; and certain general obligation bonds.

Check on the status of this bill
Back to Senate Counsel and Research Bill Summaries page

This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
Last review or update: 03/14/2017
If you see any errors on this page, please e-mail us at