1.1 	A bill for an act
1.2 	relating to retirement; higher education individual
1.3 	retirement account plan; modifying an investment
1.4 	option provision; amending Minnesota Statutes 2004,
1.5 	section 354B.25, subdivision 2.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 354B.25,
1.8 	subdivision 2, is amended to read:
1.9 		Subd. 2.Investment options. (a) The plan administrator
1.10 	shall arrange for the purchase of investment products.
1.11 	(b) The investment products must be purchased with
1.12 	contributions under section 354B.23 or with money or assets
1.13 	otherwise provided by law by authority of the board.
1.14 	(c) Various investment accounts offered through the
1.15 	Minnesota supplemental investment fund established under section
1.16 	11A.17 and administered by the State Board of Investment ~~is one~~
1.17 	~~of the~~ may be included as investment products for the individual
1.18 	retirement account plan.  Direct access must also be provided to
1.19 	lower expense and no-load mutual funds, as those terms are
1.20 	defined by the federal Securities and Exchange Commission,
1.21 	including stock funds, bond funds, and balanced funds.  Other
1.22 	investment products or combination of investment products which
1.23 	may be included are:
1.24 	(1) savings accounts at federally insured financial
1.25 	institutions;
2.1 	(2) life insurance contracts, fixed and variable annuity
2.2 	contracts from companies that are subject to regulation by the
2.3 	commerce commissioner;
2.4 	(3) investment options from open-ended investment companies
2.5 	registered under the federal Investment Company Act of 1940,
2.6 	United States Code, title 15, sections 80a-1 to 80a-64;
2.7 	(4) investment options from a firm that is a registered
2.8 	investment advisor under the federal Investment Advisers Act of
2.9 	1940, United States Code, title 15, sections 80b-1 to 80b-21;
2.10 	and
2.11 	(5) investment options of a bank as defined in United
2.12 	States Code, title 15, section 80b-2, subsection (a), paragraph
2.13 	2, or a bank holding company as defined in the Bank Holding
2.14 	Company Act of 1956, United States Code, title 12, section 1841,
2.15 	subsection (a), paragraph (1).

2.16 	Sec. 2. EFFECTIVE DATE.
 2.17 	Section 1 is effective the day following final enactment.