Maryland 2023 Regular Session

Maryland Senate Bill SB958 Compare Versions

Only one version of the bill is available at this time.

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	5	sb0958
6	6
7	7	SENATE BILL 958
8	8	P6 3lr3098
9	9
10	10	By: Senators Benson and Muse
11	11	Introduced and read first time: February 26, 2023
12	12	Assigned to: Rules
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	State Retirement and Pension System – Investment Committee – Use of 2
19	19	Minority Business Enterprises 3
20	20
21	21	FOR the purpose of requiring the Investment Committee of the State Retirement Agency 4
22	22	to use minority business enterprises to provide a certain percentage of brokerage and 5
23	23	investment management services to the Board of Trustees for the State Retirement 6
24	24	and Pension System and to manage a certain percentage of system assets; and 7
25	25	generally relating to the use of minority business enterprises in the State Retirement 8
26	26	and Pension System. 9
27	27
28	28	BY repealing and reenacting, without amendments, 10
29	29	Article – State Personnel and Pensions 11
30	30	Section 21–116(a) 12
31	31	Annotated Code of Maryland 13
32	32	(2015 Replacement Volume and 2022 Supplement) 14
33	33
34	34	BY repealing and reenacting, with amendments, 15
35	35	Article – State Personnel and Pensions 16
36	36	Section 21–116(d) 17
37	37	Annotated Code of Maryland 18
38	38	(2015 Replacement Volume and 2022 Supplement) 19
39	39
40	40	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
41	41	That the Laws of Maryland read as follows: 21
42	42
43	43	Article – State Personnel and Pensions 22
44	44
45	45	21–116. 23
46	46
47	47	(a) By resolution, the Board of Trustees shall specify the powers of the Investment 24
48	48	Committee. 25 2 SENATE BILL 958
49	49
50	50
51	51
52	52	(d) (1) (i) Consistent with minority business purchasing standards 1
53	53	applicable to units of State government under the State Finance and Procurement Article 2
54	54	and consistent with the fiduciary duties of the Board of Trustees, the Board of Trustees 3
55	55	shall direct the Investment Committee to [attempt to] use [to the greatest extent feasible] 4
56	56	minority business enterprises to provide brokerage and investment management services 5
57	57	to the Board IN ACCORDANCE WITH S UBPARAGRAPH (II) OF THIS PARAGRAPH . 6
58	58
59	59	(II) THE USE OF MINORITY B USINESS ENTERPRISES UNDER 7
60	60	SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONSIST OF: 8
61	61
62	62	1. AT LEAST 20% OF BROKERAGE AND INV ESTMENT 9
63	63	MANAGEMENT SERVICES TO THE BOARD; AND 10
64	64
65	65	2. MANAGEMENT OF AT LEA ST 20% OF THE ASSETS OF 11
66	66	THE SEVERAL SYSTEMS . 12
67	67
68	68	[(ii)] (III) For the fiscal year beginning July 1, 2022, and each fiscal 13
69	69	year thereafter, the Board of Trustees shall assess the use of minority business enterprises 14
70	70	as required under this subsection. 15
71	71
72	72	[(iii)] (IV) For purposes of this subsection, brokerage and investment 16
73	73	management services shall include services relating to all allocated asset classes. 17
74	74
75	75	(2) (i) To assist it in achieving the [goal] GOALS described under 18
76	76	paragraph (1) of this subsection, the Investment Committee shall undertake measures to 19
77	77	remove any barriers that limit full participation by minority business enterprises in 20
78	78	brokerage and investment management services opportunities afforded under this title. 21
79	79
80	80	(ii) The measures undertaken by the Investment Committee shall 22
81	81	include the use of a wide variety of media, including the State Retirement Agency’s website, 23
82	82	to provide notice to a broad and varied range of potential providers about the brokerage 24
83	83	and investment management services opportunities afforded by the State Retirement 25
84	84	Agency. 26
85	85
86	86	(3) In consultation with the Governor’s Office of Small, Minority, and 27
87	87	Women Business Affairs and the Investment Committee, the Board of Trustees shall 28
88	88	develop guidelines to assist the Investment Committee in identifying and evaluating 29
89	89	qualified minority business enterprises in order to help the State Retirement Agency 30
90	90	achieve the objective for greater use of minority business enterprises for brokerage and 31
91	91	investment management services. 32
92	92
93	93	(4) On or before September 1 each year, the Investment Committee shall 33
94	94	submit a report to the Board of Trustees, the Governor’s Office of Small, Minority, and 34
95	95	Women Business Affairs and, subject to § 2–1257 of the State Government Article, the 35
96	96	General Assembly on: 36 SENATE BILL 958 3
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98	98
99	99
100	100	(i) the identity of the minority business enterprise brokerage and 1
101	101	investment management services firms used by the Investmen t Committee in the 2
102	102	immediately preceding fiscal year; 3
103	103
104	104	(ii) the percentage and dollar value of the assets that are under the 4
105	105	control of the Investment Committee that are under the investment control of minority 5
106	106	business enterprise brokerage and investment management services firms for each 6
107	107	allocated asset class; and 7
108	108
109	109	(iii) the measures the Investment Committee undertook in the 8
110	110	immediately preceding fiscal year in accordance with paragraph (2)(ii) of this subsection. 9
111	111
112	112	SECTION 2. AND BE IT FURTHER ENAC TED, That this Act shall take effect July 10
113	113	1, 2023. 11
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115	115