EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[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.
*sb0954*
SENATE BILL 954
P6 2lr3117
CF HB 542
By: Senator Benson
Introduced and read first time: February 14, 2022
Assigned to: Rules
Re–referred to: Budget and Taxation, February 21, 2022
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 10, 2022
CHAPTER ______
AN ACT concerning 1
State Retirement and Pension System – Investment Committee – Use of 2
Minority and Women–Owned 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 of the State Retirement Agency to assess the use of 9
minority business enterprises beginning on a certain date; requiring a certain 10
certification agency and the Governor’s Office of Small, Minority, and Women 11
Business Affairs, in consultation with certain entities, to study the brokerage and 12
investment services used by the State Retirement and Pension System to evaluate 13
whether remedial measures to assist minority and women–owned businesses would 14
comply with a certain court opinion and any subsequent federal or constitutional 15
requirements; requiring certain entities to provide certain information to the 16
certification entity; and generally relating to the use of minority and women–owned 17
business enterprises in the State Retirement and Pension System. 18
BY repealing and reenacting, without amendments, 19
Article – State Personnel and Pensions 20
Section 21–116(a) 21
Annotated Code of Maryland 22
(2015 Replacement Volume and 2021 Supplement) 23 2 SENATE BILL 954
BY repealing and reenacting, with amendments, 1
Article – State Personnel and Pensions 2
Section 21–116(d) 3
Annotated Code of Maryland 4
(2015 Replacement Volume and 2021 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – State Personnel and Pensions 8
21–116. 9
(a) By resolution, the Board of Trustees shall specify the powers of the Investment 10
Committee. 11
(d) (1) (i) Consistent with minority business purchasing standards 12
applicable to units of State government under the State Finance and Procurement Article 13
and consistent with the fiduciary duties of the Board of Trustees, the Board of Trustees 14
shall direct the Investment Committee to [attempt to] use [to the greatest extent feasible] 15
minority business enterprises to provide brokerage and investment management services 16
to the Board IN ACCORDANCE WITH S UBPARAGRAPH (II) OF THIS PARAGRAPH . 17
(ii) THE USE OF MINORITY B USINESS ENTERPRISES UNDER 18
SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONSIST OF: 19
1. AT LEAST 20% OF BROKERAGE AND INV ESTMENT 20
MANAGEMENT SERVICES TO THE BOARD; AND 21
2. MANAGEMENT OF AT LEA ST 20% OF THE ASSETS OF 22
THE SEVERAL SYSTEMS . 23
(III) (II) FOR THE FISCAL YEAR B EGINNING JULY 1, 2022, AND 24
EACH FISCAL YEAR THE REAFTER, THE BOARD OF TRUSTEES SHALL ASSESS THE USE 25
OF MINORITY BUSINESS ENTERPRISES AS REQUI RED UNDER THIS SUBSE CTION. 26
(IV) (III) For purposes of this subsection, brokerage and investment 27
management services shall include services relating to all allocated asset classes. 28
(2) (i) To assist it in achieving the [goal] GOALS described under 29
paragraph (1) of this subsection, the Investment Committee shall undertake measures to 30
remove any barriers that limit full participation by minority business enterprises in 31
brokerage and investment management services opportunities afforded under this title. 32
SENATE BILL 954 3
(ii) The measures undertaken by the Investment Committee shall 1
include the use of a wide variety of media, including the State Retirement Agency’s website, 2
to provide notice to a broad and varied range of potential providers about the brokerage 3
and investment management services opportunities afforded by the State Retirement 4
Agency. 5
(3) In consultation with the Governor’s Office of Small, Minority, and 6
Women Business Affairs and the Investment Committee, the Board of Trustees shall 7
develop guidelines to assist the Investment Committee in identifying and evaluating 8
qualified minority business enterprises in order to help the State Retirement Agency 9
achieve the objective for greater use of minority business enterprises for brokerage and 10
investment management services. 11
(4) On or before September 1 each year, the Investment Committee shall 12
submit a report to the Board of Trustees, the Governor’s Office of Small, Minority, and 13
Women Business Affairs and, subject to § 2–1257 of the State Government Article, the 14
General Assembly on: 15
(i) the identity of the minority business enterprise brokerage and 16
investment management services firms used by the Investment Committee in the 17
immediately preceding fiscal year; 18
(ii) the percentage and dollar value of the assets that are under the 19
control of the Investment Committee that are under the investment control of minority 20
business enterprise brokerage and investment management services firms for each 21
allocated asset class; and 22
(iii) the measures the Investment Committee undertook in the 23
immediately preceding fiscal year in accordance with paragraph (2)(ii) of this subsection. 24
SECTION 2. AND BE IT FURTHER ENACTED, That: 25
(a) The certification agency designated by the Board of Public Works under § 26
14–303(b) of the State Finance and Procurement Article and the Governor’s Office of Small, 27
Minority, and Women Business Affairs, in consultation with the State Retirement and 28
Pension System, the Office of the Attorney General, and the General Assembly, shall 29
initiate a study regarding the brokerage and investment services used by the State 30
Retirement and Pension System to evaluate whether the enactment of remedial measures 31
to assist minority and women–owned businesses in the brokerage and investment 32
management services industry and market would comply with the Croson decision and any 33
subsequent federal or constitutional requirements. 34
(b) The certification agency and the Governor’s Office of Small, Minority, and 35
Women Business Affairs shall submit the findings of the study required under subsection 36
(a) of this section to the Legislative Policy Committee, in accordance with § 2–1257 of the 37
State Government Article, on or before July 1, 2023, so that the General Assembly may 38
review the findings before the 2024 Session. 39 4 SENATE BILL 954
(c) The State Retirement and Pension System shall provide to the certification 1
agency any information deemed necessary to assess the need for remedial measures to 2
assist minority and women–owned businesses in the brokerage and inve stment 3
management services industry and market. 4
(d) The Governor’s Office of Small, Minority, and Women Business Affairs, in 5
consultation with the certification agency and the Office of the Attorney General, shall 6
develop race– and gender–neutral approaches to address the needs of minority and 7
women–owned businesses in the brokerage and investment management services industry 8
and market and submit its report to the Legislative Policy Committee, in accordance with 9
§ 2–1257 of the State Government Article, on or before December 1, 2022, so that the 10
General Assembly may review, consider, and adopt race– and gender–neutral alternatives 11
to remedial measures that are not race– and gender–neutral. 12
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall t ake effect 13
July June 1, 2022. Section 2 of this Act shall remain effective for a period of 1 year and 1 14
month and, at the end of June 30, 2023, Section 2 of this Act, with no further action required 15
by the General Assembly, shall be abrogated and of no further force and effect. 16
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.