Maryland 2022 Regular Session

Maryland Senate Bill SB954 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[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.
8	5		sb0954
9	6
10	7		SENATE BILL 954
11	8		P6 2lr3117
12	9		CF HB 542
13	10		By: Senator Benson
14	11		Introduced and read first time: February 14, 2022
15	12		Assigned to: Rules
16		-	Re–referred to: Budget and Taxation, February 21, 2022
17		-	Committee Report: Favorable with amendments
18		-	Senate action: Adopted
19		-	Read second time: March 10, 2022
20	13
21		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
22	15
23	16		AN ACT concerning 1
24	17
25	18		State Retirement and Pension System – Investment Committee – Use of 2
26		-	Minority ~~and Women–Owned~~ Business Enterprises 3
	19	+	Minority Business Enterprises 3
27	20		(Diversity Among Asset Managers Act of 2022) 4
28	21
29	22		FOR the purpose of requiring the Investment Committee of the State Retirement Agency 5
30	23		to use minority business enterprises to provide a certain percentage of brokerage and 6
31	24		investment management services to the Board of Trustees for the State Retirement 7
32	25		and Pension System and to manage a certain percentage of system assets; requiring 8
33		-	the Investment Committee of the State Retirement Agency to assess the use of 9
34		-	minority business enterprises beginning on a certain date; requiring a certain 10
35		-	certification agency and the Governor’s Office of Small, Minority, and Women 11
36		-	Business Affairs, in consultation with certain entities, to study the brokerage and 12
37		-	investment services used by the State Retirement and Pension System to evaluate 13
38		-	whether remedial measures to assist minority and women–owned businesses would 14
39		-	comply with a certain court opinion and any subsequent federal or constitutional 15
40		-	requirements; requiring certain entities to provide certain information to the 16
41		-	certification entity; and generally relating to the use of minority and women–owned 17
42		-	business enterprises in the State Retirement and Pension System. 18
	26	+	the Investment Committee to assess the use of minority business enterprises 9
	27	+	beginning on a certain date; and generally relating to the use of minority business 10
	28	+	enterprises in the State Retirement and Pension System. 11
43	29
44		-	BY repealing and reenacting, without amendments, 19
45		-	Article – State Personnel and Pensions 20
46		-	Section 21–116(a) 21
47		-	Annotated Code of Maryland 22
48		-	(2015 Replacement Volume and 2021 Supplement) 23 2 SENATE BILL 954
	30	+	BY repealing and reenacting, without amendments, 12
	31	+	Article – State Personnel and Pensions 13
	32	+	Section 21–116(a) 14
	33	+	Annotated Code of Maryland 15
	34	+	(2015 Replacement Volume and 2021 Supplement) 16
	35	+
	36	+	BY repealing and reenacting, with amendments, 17
	37	+	Article – State Personnel and Pensions 18
	38	+	Section 21–116(d) 19
	39	+	Annotated Code of Maryland 20
	40	+	(2015 Replacement Volume and 2021 Supplement) 21
	41	+
	42	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
	43	+	That the Laws of Maryland read as follows: 23
	44	+
	45	+	Article – State Personnel and Pensions 24
	46	+
	47	+	21–116. 25
	48	+	2 SENATE BILL 954
49	49
50	50
	51	+	(a) By resolution, the Board of Trustees shall specify the powers of the Investment 1
	52	+	Committee. 2
51	53
52		-	BY repealing and reenacting, with amendments, 1
53		-	Article – State Personnel and Pensions 2
54		-	Section 21–116(d) 3
55		-	Annotated Code of Maryland 4
56		-	(2015 Replacement Volume and 2021 Supplement) 5
	54	+	(d) (1) (i) Consistent with minority business purchasing standards 3
	55	+	applicable to units of State government under the State Finance and Procurement Article 4
	56	+	and consistent with the fiduciary duties of the Board of Trustees, the Board of Trustees 5
	57	+	shall direct the Investment Committee to [attempt to] use [to the greatest extent feasible] 6
	58	+	minority business enterprises to provide brokerage and investment management services 7
	59	+	to the Board IN ACCORDANCE WITH S UBPARAGRAPH (II) OF THIS PARAGRAPH . 8
57	60
58		-	~~SECTION 1. BE IT ENACTED BY~~ THE ~~GENERAL ASSEMBLY~~ OF ~~MARYLAND, 6~~
59		-	~~That the Laws~~ of ~~Maryland read as follows~~: 7
	61	+	(ii) THE USE OF MINORITY B USINESS ENTERPRISES UNDER 9
	62	+	SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONSIST OF: 10
60	63
61		-	Article – State Personnel and Pensions 8
	64	+	1. AT LEAST 20% OF BROKERAGE AND INV ESTMENT 11
	65	+	MANAGEMENT SERVICES TO THE BOARD; AND 12
62	66
63		-	21–116. 9
	67	+	2. MANAGEMENT OF AT LEAST 20% OF THE ASSETS OF 13
	68	+	THE SEVERAL SYSTEMS . 14
64	69
65		-	(a) By resolution, the Board of Trustees shall specify the powers of the Investment 10
66		-	Committee. 11
	70	+	(III) FOR THE FISCAL YEAR B EGINNING JULY 1, 2022, AND EACH 15
	71	+	FISCAL YEAR THEREAFT ER, THE BOARD OF TRUSTEES SHALL ASSESS THE USE OF 16
	72	+	MINORITY BUSINESS EN TERPRISES AS REQUIRE D UNDER THIS SUBSECT ION. 17
67	73
68		-	(d) (1) (i) Consistent with minority business purchasing standards 12
69		-	applicable to units of State government under the State Finance and Procurement Article 13
70		-	and consistent with the fiduciary duties of the Board of Trustees, the Board of Trustees 14
71		-	shall direct the Investment Committee to [attempt to] use [to the greatest extent feasible] 15
72		-	minority business enterprises to provide brokerage and investment management services 16
73		-	to the Board IN ACCORDANCE WITH S UBPARAGRAPH (II) OF THIS PARAGRAPH . 17
	74	+	(IV) For purposes of this subsection, brokerage and investment 18
	75	+	management services shall include services relating to all allocated asset classes. 19
74	76
75		-	(ii) THE USE OF MINORITY B USINESS ENTERPRISES UNDER 18
76		-	SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONSIST OF: 19
	77	+	(2) (i) To assist it in achieving the [goal] GOALS described under 20
	78	+	paragraph (1) of this subsection, the Investment Committee shall undertake measures to 21
	79	+	remove any barriers that limit full participation by minority business enterprises in 22
	80	+	brokerage and investment management services opportunities afforded under this title. 23
77	81
78		-	1. AT LEAST 20% OF BROKERAGE AND INV ESTMENT 20
79		-	MANAGEMENT SERVICES TO THE BOARD; AND 21
	82	+	(ii) The measures undertaken by the Investment Committee shall 24
	83	+	include the use of a wide variety of media, including the State Retirement Agency’s website, 25
	84	+	to provide notice to a broad and varied range of potential providers about the brokerage 26
	85	+	and investment management services opportunities afforded by the State Retirement 27
	86	+	Agency. 28
80	87
81		-	2. MANAGEMENT OF AT LEA ST 20% OF THE ASSETS OF 22
82		-	THE SEVERAL SYSTEMS . 23
	88	+	(3) In consultation with the Governor’s Office of Small, Minority, and 29
	89	+	Women Business Affairs and the Investment Committee, the Board of Trustees shall 30
	90	+	develop guidelines to assist the Investment Committee in identifying and evaluating 31
	91	+	qualified minority business enterprises in order to help the State Retirement Agency 32
	92	+	achieve the objective for greater use of minority business enterprises for brokerage and 33
	93	+	investment management services. 34
83	94
84		-	(III) (II) FOR THE FISCAL YEAR B EGINNING JULY 1, 2022, AND 24
85		-	EACH FISCAL YEAR THE REAFTER, THE BOARD OF TRUSTEES SHALL ASSESS THE USE 25
86		-	OF MINORITY BUSINESS ENTERPRISES AS REQUI RED UNDER THIS SUBSE CTION. 26
87		-
88		-	(IV) (III) For purposes of this subsection, brokerage and investment 27
89		-	management services shall include services relating to all allocated asset classes. 28
90		-
91		-	(2) (i) To assist it in achieving the [goal] GOALS described under 29
92		-	paragraph (1) of this subsection, the Investment Committee shall undertake measures to 30
93		-	remove any barriers that limit full participation by minority business enterprises in 31
94		-	brokerage and investment management services opportunities afforded under this title. 32
95		-	SENATE BILL 954 3
	95	+	(4) On or before September 1 each year, the Investment Committee shall 35
	96	+	submit a report to the Board of Trustees, the Governor’s Office of Small, Minority, and 36 SENATE BILL 954 3
96	97
97	98
98		-	(ii) The measures undertaken by the Investment Committee shall 1
99		-	include the use of a wide variety of media, including the State Retirement Agency’s website, 2
100		-	to provide notice to a broad and varied range of potential providers about the brokerage 3
101		-	and investment management services opportunities afforded by the State Retirement 4
102		-	Agency. 5
	99	+	Women Business Affairs and, subject to § 2–1257 of the State Government Article, the 1
	100	+	General Assembly on: 2
103	101
104		-	(3) In consultation with the Governor’s Office of Small, Minority, and 6
105		-	Women Business Affairs and the Investment Committee, the Board of Trustees shall 7
106		-	develop guidelines to assist the Investment Committee in identifying and evaluating 8
107		-	qualified minority business enterprises in order to help the State Retirement Agency 9
108		-	achieve the objective for greater use of minority business enterprises for brokerage and 10
109		-	investment management services. 11
	102	+	(i) the identity of the minority business enterprise brokerage and 3
	103	+	investment management services firms used by the Investment Committee in the 4
	104	+	immediately preceding fiscal year; 5
110	105
111		-	(4) ~~On or before September 1 each year,~~ the ~~Investment Committee shall 12~~
112		-	~~submit a report to~~ the ~~Board~~ of ~~Trustees, the Governor’s Office of Small, Minority, and 13~~
113		-	~~Women~~ Business ~~Affairs~~ and~~, subject to § 2–1257 of the State Government Article, the 14~~
114		-	~~General Assembly on:~~ 15
	106	+	(ii) the percentage and dollar value of the assets that are under the 6
	107	+	control of the Investment Committee that are under the investment control of minority 7
	108	+	business enterprise brokerage and investment management services firms for each 8
	109	+	allocated asset class; and 9
115	110
116		-	(i) the identity of the minority business enterprise brokerage and 16
117		-	investment management services firms used by the Investment Committee in the 17
118		-	immediately preceding fiscal year; 18
	111	+	(iii) the measures the Investment Committee undertook in the 10
	112	+	immediately preceding fiscal year in accordance with paragraph (2)(ii) of this subsection. 11
119	113
120		-	(ii) the percentage and dollar value of the assets that are under the 19
121		-	control of the Investment Committee that are under the investment control of minority 20
122		-	business enterprise brokerage and investment management services firms for each 21
123		-	allocated asset class; and 22
	114	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
	115	+	1, 2022. 13
124	116
125		-	(iii) the measures the Investment Committee undertook in the 23
126		-	immediately preceding fiscal year in accordance with paragraph (2)(ii) of this subsection. 24
127		-
128		-	SECTION 2. AND BE IT FURTHER ENACTED, That: 25
129		-
130		-	(a) The certification agency designated by the Board of Public Works under § 26
131		-	14–303(b) of the State Finance and Procurement Article and the Governor’s Office of Small, 27
132		-	Minority, and Women Business Affairs, in consultation with the State Retirement and 28
133		-	Pension System, the Office of the Attorney General, and the General Assembly, shall 29
134		-	initiate a study regarding the brokerage and investment services used by the State 30
135		-	Retirement and Pension System to evaluate whether the enactment of remedial measures 31
136		-	to assist minority and women–owned businesses in the brokerage and investment 32
137		-	management services industry and market would comply with the Croson decision and any 33
138		-	subsequent federal or constitutional requirements. 34
139		-
140		-	(b) The certification agency and the Governor’s Office of Small, Minority, and 35
141		-	Women Business Affairs shall submit the findings of the study required under subsection 36
142		-	(a) of this section to the Legislative Policy Committee, in accordance with § 2–1257 of the 37
143		-	State Government Article, on or before July 1, 2023, so that the General Assembly may 38
144		-	review the findings before the 2024 Session. 39 4 SENATE BILL 954
145		-
146		-
147		-
148		-	(c) The State Retirement and Pension System shall provide to the certification 1
149		-	agency any information deemed necessary to assess the need for remedial measures to 2
150		-	assist minority and women–owned businesses in the brokerage and inve stment 3
151		-	management services industry and market. 4
152		-
153		-	(d) The Governor’s Office of Small, Minority, and Women Business Affairs, in 5
154		-	consultation with the certification agency and the Office of the Attorney General, shall 6
155		-	develop race– and gender–neutral approaches to address the needs of minority and 7
156		-	women–owned businesses in the brokerage and investment management services industry 8
157		-	and market and submit its report to the Legislative Policy Committee, in accordance with 9
158		-	§ 2–1257 of the State Government Article, on or before December 1, 2022, so that the 10
159		-	General Assembly may review, consider, and adopt race– and gender–neutral alternatives 11
160		-	to remedial measures that are not race– and gender–neutral. 12
161		-
162		-	SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall t ake effect 13
163		-	July June 1, 2022. Section 2 of this Act shall remain effective for a period of 1 year and 1 14
164		-	month and, at the end of June 30, 2023, Section 2 of this Act, with no further action required 15
165		-	by the General Assembly, shall be abrogated and of no further force and effect. 16
166		-
167		-
168		-
169		-
170		-	Approved:
171		-	________________________________________________________________________________
172		-	Governor.
173		-	________________________________________________________________________________
174		-	President of the Senate.
175		-	________________________________________________________________________________
176		-	Speaker of the House of Delegates.