EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0954*
SENATE BILL 954
P6 2lr3117
CF HB 542
By: Senator Benson
Introduced and read first time: February 14, 2022
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
State Retirement and Pension System – Investment Committee – Use of 2
Minority Business Enterprises 3
(Diversity Among Asset Managers Act of 2022) 4
FOR the purpose of requiring the Investment Committee of the State Retirement Agency 5
to use minority business enterprises to provide a certain percentage of brokerage and 6
investment management services to the Board of Trustees for the State Retirement 7
and Pension System and to manage a certain percentage of system assets; requiring 8
the Investment Committee to assess the use of minority business enterprises 9
beginning on a certain date; and generally relating to the use of minority business 10
enterprises in the State Retirement and Pension System. 11
BY repealing and reenacting, without amendments, 12
Article – State Personnel and Pensions 13
Section 21–116(a) 14
Annotated Code of Maryland 15
(2015 Replacement Volume and 2021 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – State Personnel and Pensions 18
Section 21–116(d) 19
Annotated Code of Maryland 20
(2015 Replacement Volume and 2021 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – State Personnel and Pensions 24
21–116. 25
2 SENATE BILL 954
(a) By resolution, the Board of Trustees shall specify the powers of the Investment 1
Committee. 2
(d) (1) (i) Consistent with minority business purchasing standards 3
applicable to units of State government under the State Finance and Procurement Article 4
and consistent with the fiduciary duties of the Board of Trustees, the Board of Trustees 5
shall direct the Investment Committee to [attempt to] use [to the greatest extent feasible] 6
minority business enterprises to provide brokerage and investment management services 7
to the Board IN ACCORDANCE WITH S UBPARAGRAPH (II) OF THIS PARAGRAPH . 8
(ii) THE USE OF MINORITY B USINESS ENTERPRISES UNDER 9
SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONSIST OF: 10
1. AT LEAST 20% OF BROKERAGE AND INV ESTMENT 11
MANAGEMENT SERVICES TO THE BOARD; AND 12
2. MANAGEMENT OF AT LEAST 20% OF THE ASSETS OF 13
THE SEVERAL SYSTEMS . 14
(III) FOR THE FISCAL YEAR B EGINNING JULY 1, 2022, AND EACH 15
FISCAL YEAR THEREAFT ER, THE BOARD OF TRUSTEES SHALL ASSESS THE USE OF 16
MINORITY BUSINESS EN TERPRISES AS REQUIRE D UNDER THIS SUBSECT ION. 17
(IV) For purposes of this subsection, brokerage and investment 18
management services shall include services relating to all allocated asset classes. 19
(2) (i) To assist it in achieving the [goal] GOALS described under 20
paragraph (1) of this subsection, the Investment Committee shall undertake measures to 21
remove any barriers that limit full participation by minority business enterprises in 22
brokerage and investment management services opportunities afforded under this title. 23
(ii) The measures undertaken by the Investment Committee shall 24
include the use of a wide variety of media, including the State Retirement Agency’s website, 25
to provide notice to a broad and varied range of potential providers about the brokerage 26
and investment management services opportunities afforded by the State Retirement 27
Agency. 28
(3) In consultation with the Governor’s Office of Small, Minority, and 29
Women Business Affairs and the Investment Committee, the Board of Trustees shall 30
develop guidelines to assist the Investment Committee in identifying and evaluating 31
qualified minority business enterprises in order to help the State Retirement Agency 32
achieve the objective for greater use of minority business enterprises for brokerage and 33
investment management services. 34
(4) On or before September 1 each year, the Investment Committee shall 35
submit a report to the Board of Trustees, the Governor’s Office of Small, Minority, and 36 SENATE BILL 954 3
Women Business Affairs and, subject to § 2–1257 of the State Government Article, the 1
General Assembly on: 2
(i) the identity of the minority business enterprise brokerage and 3
investment management services firms used by the Investment Committee in the 4
immediately preceding fiscal year; 5
(ii) the percentage and dollar value of the assets that are under the 6
control of the Investment Committee that are under the investment control of minority 7
business enterprise brokerage and investment management services firms for each 8
allocated asset class; and 9
(iii) the measures the Investment Committee undertook in the 10
immediately preceding fiscal year in accordance with paragraph (2)(ii) of this subsection. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
1, 2022. 13