EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
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SENATE BILL 458
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By: Senators Griffith and Elfreth
Introduced and read first time: January 27, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Maryland Teachers and State Employees Supplemental Retirement Plans – Use 2
of Minority Business Enterprises 3
FOR the purpose of requiring the Board of Trustees of the Maryland Teachers and State 4
Employees Supplemental Retirement Plans to consider using minority business 5
enterprises for certain services; requiring the Board to use the Office of State 6
Procurement’s website to provide notice to potential providers; requiring the Board, 7
in consultation with the Governor’s Office of Small, Minority, and Women Business 8
Affairs, to identify entities that have been certified as minority business enterprises 9
under certain circumstances; and generally relating to the use of minority business 10
enterprises in the Maryland Teachers and State Employees Supplemental 11
Retirement Plans. 12
BY repealing and reenacting, with amendments, 13
Article – State Personnel and Pensions 14
Section 35–302 15
Annotated Code of Maryland 16
(2015 Replacement Volume and 2021 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – State Personnel and Pensions 20
35–302. 21
(a) Assets of the supplemental retirement plans may be deposited and invested 22
in accordance with the investment elections allowed under the supplemental retirement 23
plans as selected and determined by the Board in accordance with the statements of 24
investment policy adopted by the Board from time to time notwithstanding any other law 25
limiting the types of investments that may be made with State funds or imposing conditions 26 2 SENATE BILL 458
on the deposit of State funds. 1
(b) The Board shall make arrangements for the safe custody, domestic or global, 2
of investments with one or more duly qualified custodian banks or trust companies. 3
(c) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of the State 4
Finance and Procurement Article, Title 10 and Division II of the State Finance and 5
Procurement Article do not apply to the supplemental retirement plans for: 6
(1) services of managers to invest the assets deposited and invested in 7
investment options of the supplemental retirement plans in accordance with the 8
statements of investment policy adopted by the Board from time to time; 9
(2) expenditures to manage, maintain, and enhance the value of assets 10
deposited and invested in investment options of the supplemental retirement plans selected 11
in accordance with the statements of investment policy adopted by the Board from time to 12
time; and 13
(3) expenditures for the safe custody, domestic or global, of assets deposited 14
and invested in investment options of the supplemental retirement plans selected in 15
accordance with subsection (b) of this section. 16
(d) (1) [(i)] The Board shall CONSIDER AND attempt to use to the greatest 17
extent feasible minority business enterprises to provide [brokerage and investment 18
management] INVESTMENT ADVISOR A ND FUND MANAGER services to the Board 19
consistent with minority business purchasing standards applicable to units of State 20
government under the State Finance and Procurement Article and consistent with the 21
fiduciary duties of the Board. 22
[(ii) For purposes of this subsection, brokerage and investment 23
management services shall include services relating to all allocated asset classes.] 24
(2) (i) To assist it in achieving the goal described under paragraph (1) 25
of this subsection, the Board shall undertake measures to remove any barriers that limit 26
full participation by minority business enterprises in [brokerage and investment 27
management] INVESTMENT ADVISOR A ND FUND MANAGER services opportunities 28
afforded under this title. 29
(ii) The measures undertaken by the Board shall include the use of 30
[a wide variety of media, including] the Maryland Teachers and State Employees 31
Supplemental Retirement Plans’ website AND THE OFFICE OF STATE PROCUREMENT 32
WEBSITE, WHENEVER REQUIRED , to provide notice to a broad and varied range of 33
potential providers about the [brokerage and investment management] INVESTMENT 34
ADVISOR AND FUND MAN AGER services opportunities afforded by the Maryland Teachers 35
and State Employees Supplemental Retirement Plans. 36
SENATE BILL 458 3
(3) In consultation with the Governor’s Office of Small, Minority, and 1
Women Business Affairs, the Board shall [develop guidelines to assist the Board in 2
identifying and evaluating] IDENTIFY ENTITIES TH AT HAVE BEEN CERTIFI ED BY THE 3
STATE DEPARTMENT OF TRANSPORTATION AS MINORITY BUSINESS ENTERPRISES 4
AS qualified minority business enterprises in order to help the Maryland Teachers and 5
State Employees Supplemental Retirement Plans achieve the objective for greater use of 6
minority business enterprises for [brokerage and investment management] INVESTMENT 7
ADVISOR AND FUND MAN AGER services. 8
(4) On or before September 1 each year, the Board shall submit a report to 9
the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to § 10
2–1257 of the State Government Article, the General Assembly on: 11
(i) the identity of the minority business enterprise [brokerage and 12
investment management] INVESTMENT ADVISOR A ND FUND MANAGER services firms 13
used by the Board in the immediately preceding fiscal year; 14
(ii) the percentage and dollar value of the assets that are under the 15
control of the Board that are under the investment control of minority business enterprise 16
[brokerage and investment management] INVESTMENT ADVISOR A ND FUND MANAGER 17
services firms for each allocated asset class; and 18
(iii) the measures the Board undertook in the immediately preceding 19
fiscal year in accordance with paragraph (2)(ii) of this subsection. 20
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21
1, 2022. 22