MD
Maryland House Bill HB909

Maryland 2022 Regular Session

Maryland House Bill HB909 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
5- Underlining indicates amendments to bill.
6- Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7-amendment.
85 *hb0909*
96
107 HOUSE BILL 909
118 P6 2lr2624
129 CF SB 458
1310 By: Delegate Lierman
1411 Introduced and read first time: February 7, 2022
1512 Assigned to: Appropriations
16-Committee Report: Favorable with amendments
17-House action: Adopted
18-Read second time: March 2, 2022
1913
20-CHAPTER ______
14+A BILL ENTITLED
2115
2216 AN ACT concerning 1
2317
2418 Maryland Teachers and State Employees Supplemental Retirement Plans – Use 2
2519 of Minority Business Enterprises 3
2620
2721 FOR the purpose of requiring the Board of Trustees of the Maryland Teachers and State 4
2822 Employees Supplemental Retirement Plans to consider using minority business 5
2923 enterprises for certain services; requiring the Board to use the Office of State 6
30-Procurement’s website and the State’s electronic procurement system to provide 7
31-notice to potential providers; requiring the Board, in consultation with the 8
32-Governor’s Office of Small, Minority, and Women Business Affairs, to identify 9
33-entities that have been certified as minority business enterprises under certain 10
34-circumstances; and generally relating to the use of minority business enterprises in 11
35-the Maryland Teachers and State Employees Supplemental Retirement Plans. 12
24+Procurement’s website to provide notice to potential providers; requiring the Board, 7
25+in consultation with the Governor’s Office of Small, Minority, and Women Business 8
26+Affairs, to identify entities that have been certified as minority business enterprises 9
27+under certain circumstances; and generally relating to the use of minority business 10
28+enterprises in the Maryland Teachers and State Employees Supplemental 11
29+Retirement Plans. 12
3630
3731 BY repealing and reenacting, with amendments, 13
3832 Article – State Personnel and Pensions 14
3933 Section 35–302 15
4034 Annotated Code of Maryland 16
4135 (2015 Replacement Volume and 2021 Supplement) 17
4236
4337 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
4438 That the Laws of Maryland read as follows: 19
4539
4640 Article – State Personnel and Pensions 20
4741
48-35–302. 21 2 HOUSE BILL 909
42+35–302. 21
43+
44+ (a) Assets of the supplemental retirement plans may be deposited and invested 22
45+in accordance with the investment elections allowed under the supplemental retirement 23
46+plans as selected and determined by the Board in accordance with the statements of 24
47+investment policy adopted by the Board from time to time notwithstanding any other law 25
48+limiting the types of investments that may be made with State funds or imposing conditions 26 2 HOUSE BILL 909
4949
5050
51+on the deposit of State funds. 1
5152
52- (a) Assets of the supplemental retirement plans may be deposited and invested 1
53-in accordance with the investment elections allowed under the supplemental retirement 2
54-plans as selected and determined by the Board in accordance with the statements of 3
55-investment policy adopted by the Board from time to time notwithstanding any other law 4
56-limiting the types of investments that may be made with State funds or imposing conditions 5
57-on the deposit of State funds. 6
53+ (b) The Board shall make arrangements for the safe custody, domestic or global, 2
54+of investments with one or more duly qualified custodian banks or trust companies. 3
5855
59- (b) The Board shall make arrangements for the safe custody, domestic or global, 7
60-of investments with one or more duly qualified custodian banks or trust companies. 8
56+ (c) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of the State 4
57+Finance and Procurement Article, Title 10 and Division II of the State Finance and 5
58+Procurement Article do not apply to the supplemental retirement plans for: 6
6159
62- (c) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of the State 9
63-Finance and Procurement Article, Title 10 and Division II of the State Finance and 10
64-Procurement Article do not apply to the supplemental retirement plans for: 11
60+ (1) services of managers to invest the assets deposited and invested in 7
61+investment options of the supplemental retirement plans in accordance with the 8
62+statements of investment policy adopted by the Board from time to time; 9
6563
66- (1) services of managers to invest the assets deposited and invested in 12
67-investment options of the supplemental retirement plans in accordance with the 13
68-statements of investment policy adopted by the Board from time to time; 14
64+ (2) expenditures to manage, maintain, and enhance the value of assets 10
65+deposited and invested in investment options of the supplemental retirement plans selected 11
66+in accordance with the statements of investment policy adopted by the Board from time to 12
67+time; and 13
6968
70- (2) expenditures to manage, maintain, and enhance the value of assets 15
71-deposited and invested in investment options of the supplemental retirement plans selected 16
72-in accordance with the statements of investment policy adopted by the Board from time to 17
73-time; and 18
69+ (3) expenditures for the safe custody, domestic or global, of assets deposited 14
70+and invested in investment options of the supplemental retirement plans selected in 15
71+accordance with subsection (b) of this section. 16
7472
75- (3) expenditures for the safe custody, domestic or global, of assets deposited 19
76-and invested in investment options of the supplemental retirement plans selected in 20
77-accordance with subsection (b) of this section. 21
73+ (d) (1) [(i)] The Board shall CONSIDER AND attempt to use to the greatest 17
74+extent feasible minority business enterprises to provide [brokerage and investment 18
75+management] INVESTMENT ADVISOR A ND FUND MANAGER services to the Board 19
76+consistent with minority business purchasing standards applicable to units of State 20
77+government under the State Finance and Procurement Article and consistent with the 21
78+fiduciary duties of the Board. 22
7879
79- (d) (1) [(i)] The Board shall CONSIDER AND attempt to use to the greatest 22
80-extent feasible minority business enterprises to provide [brokerage and investment 23
81-management] INVESTMEN T ADVISOR AND FUND M ANAGER services to the Board 24
82-consistent with minority business purchasing standards applicable to units of State 25
83-government under the State Finance and Procurement Article and consistent with the 26
84-fiduciary duties of the Board. 27
80+ [(ii) For purposes of this subsection, brokerage and investment 23
81+management services shall include services relating to all allocated asset classes.] 24
8582
86- [(ii) For purposes of this subsection, brokerage and investment 28
87-management services shall include services relating to all allocated asset classes.] 29
83+ (2) (i) To assist it in achieving the goal described under paragraph (1) 25
84+of this subsection, the Board shall undertake measures to remove any barriers that limit 26
85+full participation by minority business enterprises in [brokerage and investment 27
86+management] INVESTMEN T ADVISOR AND FUND M ANAGER services opportunities 28
87+afforded under this title. 29
8888
89- (2) (i) To assist it in achieving the goal described under paragraph (1) 30
90-of this subsection, the Board shall undertake measures to remove any barriers that limit 31
91-full participation by minority business enterprises in [brokerage and investment 32
92-management] INVESTMENT ADVISOR A ND FUND MANAGER services opportunities 33
93-afforded under this title. 34
94-
95- (ii) The measures undertaken by the Board shall include the use of 35
96-[a wide variety of media, including] the Maryland Teachers and State Employees 36 HOUSE BILL 909 3
89+ (ii) The measures undertaken by the Board shall include the use of 30
90+[a wide variety of media, including] the Maryland Teachers and State Employees 31
91+Supplemental Retirement Plans’ website AND THE OFFICE OF STATE PROCUREMENT 32
92+WEBSITE, WHENEVER REQUIRED , to provide notice to a broad and varied range of 33
93+potential providers about the [brokerage and investment management] INVESTMENT 34
94+ADVISOR AND FUND MAN AGER services opportunities afforded by the Maryland Teachers 35
95+and State Employees Supplemental Retirement Plans. 36
96+ HOUSE BILL 909 3
9797
9898
99-Supplemental Retirement Plans’ website, THE STATE’S ELECTRONIC PROCURE MENT 1
100-SYSTEM, AND THE OFFICE OF STATE PROCUREMENT WEBSITE , WHENEVER 2
101-REQUIRED, to provide notice to a broad and varied range of potential providers about the 3
102-[brokerage and investment management] INVESTMENT ADVISOR A ND FUND MANAGER 4
103-services opportunities afforded by the Maryland Teachers and State Employees 5
104-Supplemental Retirement Plans. 6
99+ (3) In consultation with the Governor’s Office of Small, Minority, and 1
100+Women Business Affairs, the Board shall [develop guidelines to assist the Board in 2
101+identifying and evaluating] IDENTIFY ENTITIES TH AT HAVE BEEN CERTIFI ED BY THE 3
102+STATE DEPARTMENT OF TRANSPORTATION AS MIN ORITY BUSINESS ENTER PRISES 4
103+AS qualified minority business enterprises in order to help the Maryland Teachers and 5
104+State Employees Supplemental Retirement Plans achieve the objective for greater use of 6
105+minority business enterprises for [brokerage and investment management] INVESTMENT 7
106+ADVISOR AND FUND MAN AGER services. 8
105107
106- (3) In consultation with the Governor’s Office of Small, Minority, and 7
107-Women Business Affairs, the Board shall [develop guidelines to assist the Board in 8
108-identifying and evaluating] IDENTIFY ENTITIES TH AT HAVE BEEN CERTIFI ED BY THE 9
109-STATE DEPARTMENT OF TRANSPORTATION AS MIN ORITY BUSINESS ENTER PRISES 10
110-AS qualified minority business enterprises in order to help the Maryland Teachers and 11
111-State Employees Supplemental Retirement Plans achieve the objective for greater use of 12
112-minority business enterprises for [brokerage and investment management] INVESTMENT 13
113-ADVISOR AND FUND MAN AGER services. 14
108+ (4) On or before September 1 each year, the Board shall submit a report to 9
109+the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to § 10
110+2–1257 of the State Government Article, the General Assembly on: 11
114111
115- (4) On or before September 1 each year, the Board shall submit a report to 15
116-the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to § 16
117-2–1257 of the State Government Article, the General Assembly on: 17
112+ (i) the identity of the minority business enterprise [brokerage and 12
113+investment management] INVESTMENT ADVISOR A ND FUND MANAGER services firms 13
114+used by the Board in the immediately preceding fiscal year; 14
118115
119- (i) the identity of the minority business enterprise [brokerage and 18
120-investment management] INVESTMENT ADVISOR A ND FUND MANA GER services firms 19
121-used by the Board in the immediately preceding fiscal year; 20
116+ (ii) the percentage and dollar value of the assets that are under the 15
117+control of the Board that are under the investment control of minority business enterprise 16
118+[brokerage and investment management] INVESTMENT ADVISOR A ND FUND MANAGER 17
119+services firms for each allocated asset class; and 18
122120
123- (ii) the percentage and dollar value of the assets that are under the 21
124-control of the Board that are under the investment control of minority business enterprise 22
125-[brokerage and investment management] INVESTMENT ADVISOR A ND FUND MANAGER 23
126-services firms for each allocated asset class; and 24
121+ (iii) the measures the Board undertook in the immediately preceding 19
122+fiscal year in accordance with paragraph (2)(ii) of this subsection. 20
127123
128- (iii) the measures the Board undertook in the immediately preceding 25
129-fiscal year in accordance with paragraph (2)(ii) of this subsection. 26
130-
131- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27
132-1, 2022. 28
133-
134-
124+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21
125+1, 2022. 22
135126