EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0458*
SENATE BILL 458
P6 2lr2320
CF HB 909
By: Senators Griffith and Elfreth
Introduced and read first time: January 27, 2022
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 25, 2022
CHAPTER ______
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 and the State’s electronic procurement system to provide 7
notice to potential providers; requiring the Board, in consultation with the 8
Governor’s Office of Small, Minority, and Women Business Affairs, to identify 9
entities that have been certified as minority business enterprises under certain 10
circumstances; and generally relating to the use of minority business enterprises in 11
the Maryland Teachers and State Employees Supplemental 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 2 SENATE BILL 458
(a) Assets of the supplemental retirement plans may be deposited and invested 1
in accordance with the investment elections allowed under the supplemental retirement 2
plans as selected and determined by the Board in accordance with the statements of 3
investment policy adopted by the Board from time to time notwithstanding any other law 4
limiting the types of investments that may be made with State funds or imposing conditions 5
on the deposit of State funds. 6
(b) The Board shall make arrangements for the safe custody, domestic or global, 7
of investments with one or more duly qualified custodian banks or trust companies. 8
(c) Except as provided in Title 12, Subtitle 4 and Title 14, Subtitle 3 of the State 9
Finance and Procurement Article, Title 10 and Division II of the State Finance and 10
Procurement Article do not apply to the supplemental retirement plans for: 11
(1) services of managers to invest the assets deposited and invested in 12
investment options of the supplemental retirement plans in accordance with the 13
statements of investment policy adopted by the Board from time to time; 14
(2) expenditures to manage, maintain, and enhance the value of assets 15
deposited and invested in investment options of the supplemental retirement plans selected 16
in accordance with the statements of investment policy adopted by the Board from time to 17
time; and 18
(3) expenditures for the safe custody, domestic or global, of assets deposited 19
and invested in investment options of the supplemental retirement plans selected in 20
accordance with subsection (b) of this section. 21
(d) (1) [(i)] The Board shall CONSIDER AND attempt to use to the greatest 22
extent feasible minority business enterprises to provide [brokerage and investment 23
management] INVESTMEN T ADVISOR AND FUND M ANAGER services to the Board 24
consistent with minority business purchasing standards applicable to units of State 25
government under the State Finance and Procurement Article and consistent with the 26
fiduciary duties of the Board. 27
[(ii) For purposes of this subsection, brokerage and investment 28
management services shall include services relating to all allocated asset classes.] 29
(2) (i) To assist it in achieving the goal described under paragraph (1) 30
of this subsection, the Board shall undertake measures to remove any barriers that limit 31
full participation by minority business enterprises in [brokerage and investment 32
management] INVESTMENT ADVISOR A ND FUND MANAGER services opportunities 33
afforded under this title. 34
(ii) The measures undertaken by the Board shall include the use of 35
[a wide variety of media, including] the Maryland Teachers and State Employees 36 SENATE BILL 458 3
Supplemental Retirement Plans’ website AND, THE OFFICE OF STATE PROCUREMENT 1
WEBSITE, AND THE STATE’S ELECTRONIC PROCURE MENT SYSTEM , WHENEVER 2
REQUIRED, to provide notice to a broad and varied range of potential providers about the 3
[brokerage and investment management] INVESTMENT ADVISOR A ND FUND MANAGER 4
services opportunities afforded by the Maryland Teachers and State Employees 5
Supplemental Retirement Plans. 6
(3) In consultation with the Governor’s Office of Small, Minority, and 7
Women Business Affairs, the Board shall [develop guidelines to assist the Board in 8
identifying and evaluating] IDENTIFY ENTITIES TH AT HAVE BEEN CERTIFI ED BY THE 9
STATE DEPARTMENT OF TRANSPORTATION AS MIN ORITY BUSINESS ENTER PRISES 10
AS qualified minority business enterprises in order to help the Maryland Teachers and 11
State Employees Supplemental Retirement Plans achieve the objective for greater use of 12
minority business enterprises for [brokerage and investment management] INVESTMENT 13
ADVISOR AND FUND MAN AGER services. 14
(4) On or before September 1 each year, the Board shall submit a report to 15
the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to § 16
2–1257 of the State Government Article, the General Assembly on: 17
(i) the identity of the minority business enterprise [brokerage and 18
investment management] INVESTMENT ADVISOR A ND FUND MANAGER services firms 19
used by the Board in the immediately preceding fiscal year; 20
(ii) the percentage and dollar value of the assets that are under the 21
control of the Board that are under the investment control of minority business enterprise 22
[brokerage and investment management] INVESTMENT ADVISOR A ND FUND MANAGER 23
services firms for each allocated asset class; and 24
(iii) the measures the Board undertook in the immediately preceding 25
fiscal year in accordance with paragraph (2)(ii) of this subsection. 26
SECTION 2. AND BE IT FURT HER ENACTED, That this Act shall take effect July 27
1, 2022. 28