EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0958*
SENATE BILL 958
P6 3lr3098
By: Senators Benson and Muse
Introduced and read first time: February 26, 2023
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
State Retirement and Pension System – Investment Committee – Use of 2
Minority Business Enterprises 3
FOR the purpose of requiring the Investment Committee of the State Retirement Agency 4
to use minority business enterprises to provide a certain percentage of brokerage and 5
investment management services to the Board of Trustees for the State Retirement 6
and Pension System and to manage a certain percentage of system assets; and 7
generally relating to the use of minority business enterprises in the State Retirement 8
and Pension System. 9
BY repealing and reenacting, without amendments, 10
Article – State Personnel and Pensions 11
Section 21–116(a) 12
Annotated Code of Maryland 13
(2015 Replacement Volume and 2022 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – State Personnel and Pensions 16
Section 21–116(d) 17
Annotated Code of Maryland 18
(2015 Replacement Volume and 2022 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – State Personnel and Pensions 22
21–116. 23
(a) By resolution, the Board of Trustees shall specify the powers of the Investment 24
Committee. 25 2 SENATE BILL 958
(d) (1) (i) Consistent with minority business purchasing standards 1
applicable to units of State government under the State Finance and Procurement Article 2
and consistent with the fiduciary duties of the Board of Trustees, the Board of Trustees 3
shall direct the Investment Committee to [attempt to] use [to the greatest extent feasible] 4
minority business enterprises to provide brokerage and investment management services 5
to the Board IN ACCORDANCE WITH S UBPARAGRAPH (II) OF THIS PARAGRAPH . 6
(II) THE USE OF MINORITY B USINESS ENTERPRISES UNDER 7
SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL CONSIST OF: 8
1. AT LEAST 20% OF BROKERAGE AND INV ESTMENT 9
MANAGEMENT SERVICES TO THE BOARD; AND 10
2. MANAGEMENT OF AT LEA ST 20% OF THE ASSETS OF 11
THE SEVERAL SYSTEMS . 12
[(ii)] (III) For the fiscal year beginning July 1, 2022, and each fiscal 13
year thereafter, the Board of Trustees shall assess the use of minority business enterprises 14
as required under this subsection. 15
[(iii)] (IV) For purposes of this subsection, brokerage and investment 16
management services shall include services relating to all allocated asset classes. 17
(2) (i) To assist it in achieving the [goal] GOALS described under 18
paragraph (1) of this subsection, the Investment Committee shall undertake measures to 19
remove any barriers that limit full participation by minority business enterprises in 20
brokerage and investment management services opportunities afforded under this title. 21
(ii) The measures undertaken by the Investment Committee shall 22
include the use of a wide variety of media, including the State Retirement Agency’s website, 23
to provide notice to a broad and varied range of potential providers about the brokerage 24
and investment management services opportunities afforded by the State Retirement 25
Agency. 26
(3) In consultation with the Governor’s Office of Small, Minority, and 27
Women Business Affairs and the Investment Committee, the Board of Trustees shall 28
develop guidelines to assist the Investment Committee in identifying and evaluating 29
qualified minority business enterprises in order to help the State Retirement Agency 30
achieve the objective for greater use of minority business enterprises for brokerage and 31
investment management services. 32
(4) On or before September 1 each year, the Investment Committee shall 33
submit a report to the Board of Trustees, the Governor’s Office of Small, Minority, and 34
Women Business Affairs and, subject to § 2–1257 of the State Government Article, the 35
General Assembly on: 36 SENATE BILL 958 3
(i) the identity of the minority business enterprise brokerage and 1
investment management services firms used by the Investmen t Committee in the 2
immediately preceding fiscal year; 3
(ii) the percentage and dollar value of the assets that are under the 4
control of the Investment Committee that are under the investment control of minority 5
business enterprise brokerage and investment management services firms for each 6
allocated asset class; and 7
(iii) the measures the Investment Committee undertook in the 8
immediately preceding fiscal year in accordance with paragraph (2)(ii) of this subsection. 9
SECTION 2. AND BE IT FURTHER ENAC TED, That this Act shall take effect July 10
1, 2023. 11