MD
Maryland Senate Bill SB776

Maryland 2024 Regular Session

Maryland Senate Bill SB776 Compare Versions

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1- WES MOORE, Governor Ch. 144
21
3-– 1 –
4-Chapter 144
5-(Senate Bill 776)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
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+ *sb0776*
89
9-State Investment Portfolio and Local Government Investment Guidelines –
10-Investment Standards
10+SENATE BILL 776
11+P1 EMERGENCY BILL 4lr3379
12+ CF HB 846
13+By: The President (By Request – State Treasurer)
14+Introduced and read first time: February 1, 2024
15+Assigned to: Budget and Taxation
16+Committee Report: Favorable with amendments
17+Senate action: Adopted
18+Read second time: February 17, 2024
1119
12-FOR the purpose of requiring the Treasurer to consult with governmental entities prior to
13-proposing certain regulations; repealing the limitations on investment in certain
14-assets in which the Treasurer may invest or reinvest certain unexpended or surplus
15-funds; requiring the Treasurer to adopt regulations that specify asset classes in
16-which the Treasurer may invest; requiring the Treasurer to notify governing bodies
17-of certain local governmental units entities about certain updates to certain
18-investment standards; authorizing the Treasurer to retain investments made prior
19-to the effective date of this Act until the investments have reached their respective
20-maturity dates; authorizing the Treasurer and governmental entities to invest or
21-reinvest certain surplus funds in accordance with certain provisions of law prior to
22-the adoption of certain regulations; and generally relating to the Treasurer and
23-investment standards.
20+CHAPTER ______
2421
25-BY repealing and reenacting, with amendments,
26- Article – Local Government
27- Section 17–204
28- Annotated Code of Maryland
29- (2013 Volume and 2023 Supplement)
22+AN ACT concerning 1
3023
31-BY repealing and reenacting, with amendments,
32- Article – State Finance and Procurement
33-Section 6–222
34- Annotated Code of Maryland
35- (2021 Replacement Volume and 2023 Supplement)
24+State Investment Portfolio and Local Government Investment Guidelines – 2
25+Investment Standards 3
3626
37- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
38-That the Laws of Maryland read as follows:
27+FOR the purpose of requiring the Treasurer to consult with governmental entities prior to 4
28+proposing certain regulations; repealing the limitations on investment in certain 5
29+assets in which the Treasurer may invest or reinvest certain unexpended or surplus 6
30+funds; requiring the Treasurer to adopt regulations that specify asset classes in 7
31+which the Treasurer may invest; requiring the Treasurer to notify governing bodies 8
32+of certain local governmental units entities about certain updates to certain 9
33+investment standards; authorizing the Treasurer to retain investments made prior 10
34+to the effective date of this Act until the investments have reached their respective 11
35+maturity dates; authorizing the Treasurer and governmental entities to invest or 12
36+reinvest certain surplus funds in accordance with certain provisions of law prior to 13
37+the adoption of certain regulations; and generally relating to the Treasurer and 14
38+investment standards. 15
3939
40-Article – Local Government
40+BY repealing and reenacting, with amendments, 16
41+ Article – Local Government 17
42+ Section 17–204 18
43+ Annotated Code of Maryland 19
44+ (2013 Volume and 2023 Supplement) 20
4145
42-17–204.
46+BY repealing and reenacting, with amendments, 21
47+ Article – State Finance and Procurement 22
48+Section 6–222 23 2 SENATE BILL 776
4349
44- (a) (1) After consulting with the governmental entities, the State Treasurer
45-shall adopt by regulation local government investment guidelines to govern the investment
46-of public money by the entities in a manner that:
4750
48- [(1)] (I) facilitates sound cash management; Ch. 144 2024 LAWS OF MARYLAND
51+ Annotated Code of Maryland 1
52+ (2021 Replacement Volume and 2023 Supplement) 2
4953
50-– 2 –
54+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
55+That the Laws of Maryland read as follows: 4
5156
52- [(2)] (II) protects the public; and
57+Article – Local Government 5
5358
54- [(3)] (III) ensures that each entity has access to its public money.
59+17–204. 6
5560
56- (2) PRIOR TO ADOPTING REG ULATIONS THAT ALTER THE TYPES OF
57-INVESTMENTS IN WHICH GOVERNMENTAL ENTITIE S MAY INVEST PUBLIC MONEY,
58-THE STATE TREASURER SHALL CONSU LT WITH THE GOVERNME NTAL ENTITIES.
61+ (a) (1) After consulting with the governmental entities, the State Treasurer 7
62+shall adopt by regulation local government investment guidelines to govern the investment 8
63+of public money by the entities in a manner that: 9
5964
60- (b) The local government investment guidelines shall:
65+ [(1)] (I) facilitates sound cash management; 10
6166
62- (1) specify the types of investments in which public money may be invested;
67+ [(2)] (II) protects the public; and 11
6368
64- (2) include guidance for the prudent investment of public money based on
65-cash flow projections, income, liquidity, investment ratings, and risk;
69+ [(3)] (III) ensures that each entity has access to its public money. 12
6670
67- (3) require that investments by a county board of education and a county
68-board of library trustees comply with the local investment policy of the county; and
71+ (2) PRIOR TO ADOPTING REG ULATIONS THAT ALTER THE TYPES OF 13
72+INVESTMENTS IN WHICH GOVERNMENTAL ENTITIE S MAY INVEST PUBLIC MONEY, 14
73+THE STATE TREASURER SHALL CONSU LT WITH THE GOVERNME NTAL ENTITIES. 15
6974
70- (4) prohibit the borrowing of money for the express purpose of investment.
75+ (b) The local government investment guidelines shall: 16
7176
72-Article – State Finance and Procurement
77+ (1) specify the types of investments in which public money may be invested; 17
7378
74-6–222.
79+ (2) include guidance for the prudent investment of public money based on 18
80+cash flow projections, income, liquidity, investment ratings, and risk; 19
7581
76- (a) [(1) In this section, “supranational issuer” means an international
77-development institution that:
82+ (3) require that investments by a county board of education and a county 20
83+board of library trustees comply with the local investment policy of the county; and 21
7884
79- (i) provides financing, advisory services, or other financial services
80-to the institution’s member countries to achieve the overall goal of improving living
81-standards through sustainable economic growth; and
85+ (4) prohibit the borrowing of money for the express purpose of investment. 22
8286
83- (ii) is rated in the highest credit rating category by a nationally
84-recognized statistical rating organization.
87+Article – State Finance and Procurement 23
8588
86- (2) “Supranational issuer” includes:
89+6–222. 24
8790
88- (i) the World Bank;
91+ (a) [(1) In this section, “supranational issuer” means an international 25
92+development institution that: 26
8993
90- (ii) the International Finance Corporation;
94+ (i) provides financing, advisory services, or other financial services 27
95+to the institution’s member countries to achieve the overall goal of improving living 28
96+standards through sustainable economic growth; and 29 SENATE BILL 776 3
9197
92- (iii) the Inter–American Development Bank;
9398
94- (iv) the African Development Bank; and
9599
96- (v) the Asian Development Bank. WES MOORE, Governor Ch. 144
100+ (ii) is rated in the highest credit rating category by a nationally 1
101+recognized statistical rating organization. 2
97102
98-– 3 –
103+ (2) “Supranational issuer” includes: 3
99104
100- (b)] (1) Subject to paragraph (2) of this subsection, the Treasurer may invest or
101-reinvest unexpended or surplus money over which the Treasurer has custody [in:
105+ (i) the World Bank; 4
102106
103- (i) an obligation for which the United States has pledged its faith
104-and credit for the payment of the principal and interest;
107+ (ii) the International Finance Corporation; 5
105108
106- (ii) an obligation that a federal agency or a federal instrumentality
107-has issued in accordance with an act of Congress;
109+ (iii) the Inter–American Development Bank; 6
108110
109- (iii) an obligation issued and unconditionally guaranteed by a
110-supranational issuer denominated in United States dollars and eligible to be sold in the
111-United States;
111+ (iv) the African Development Bank; and 7
112112
113- (iv) a repurchase agreement collateralized in an amount not less
114-than 102% of the principal amount by an obligation of the United States, its agencies or
115-instrumentalities, provided the collateral is held by a custodian other than the seller
116-designated by the buyer;
113+ (v) the Asian Development Bank. 8
117114
118- (v) bankers’ acceptances guaranteed by a financial institution with
119-a short–term debt rating in the highest letter and numerical rating by at least one
120-nationally recognized statistical rating organization as designated by either the United
121-States Securities and Exchange Commission or the Treasurer;
115+ (b)] (1) Subject to paragraph (2) of this subsection, the Treasurer may invest or 9
116+reinvest unexpended or surplus money over which the Treasurer has custody [in: 10
122117
123- (vi) with respect to amounts treated by the Internal Revenue Service
124-as bond sale proceeds only, bonds, notes, or other obligations of investment grade in the
125-highest quality letter and numerical rating by at least one nationally recognized statistical
126-rating organization as designated by the United States Securities and Exchange
127-Commission issued by or on behalf of this or any other state or any agency, department,
128-county, municipal or public corporation, special district, authority, or political subdivision
129-thereof, or in any fund or trust that invests only in securities of the type described in this
130-item;
118+ (i) an obligation for which the United States has pledged its faith 11
119+and credit for the payment of the principal and interest; 12
131120
132- (vii) commercial paper that has received the highest letter and
133-numerical rating by at least two nationally recognized statistical rating organizations as
134-designated by the United States Securities and Exchange Commission;
121+ (ii) an obligation that a federal agency or a federal instrumentality 13
122+has issued in accordance with an act of Congress; 14
135123
136- (viii) money market mutual funds that:
124+ (iii) an obligation issued and unconditionally guaranteed by a 15
125+supranational issuer denominated in United States dollars and eligible to be sold in the 16
126+United States; 17
137127
138- 1. are registered with the Securities and Exchange
139-Commission under the Investment Company Act of 1940, 15 U.S.C. § 80a–1 et seq., as
140-amended;
128+ (iv) a repurchase agreement collateralized in an amount not less 18
129+than 102% of the principal amount by an obligation of the United States, its agencies or 19
130+instrumentalities, provided the collateral is held by a custodian other than the seller 20
131+designated by the buyer; 21
141132
142- 2. are operated in accordance with Rule 2A –7 of the
143-Investment Company Act of 1940, 17 C.F.R. § 270.2A–7, as amended; and
144- Ch. 144 2024 LAWS OF MARYLAND
133+ (v) bankers’ acceptances guaranteed by a financial institution with 22
134+a short–term debt rating in the highest letter and numerical rating by at least one 23
135+nationally recognized statistical rating organization as designated by either the United 24
136+States Securities and Exchange Commission or the Treasurer; 25
145137
146-– 4 –
147- 3. have received the highest possible rating from at least one
148-nationally recognized statistical rating organization as designated by the United States
149-Securities and Exchange Commission; and
138+ (vi) with respect to amounts treated by the Internal Revenue Service 26
139+as bond sale proceeds only, bonds, notes, or other obligations of investment grade in the 27
140+highest quality letter and numerical rating by at least one nationally recognized statistical 28
141+rating organization as designated by the United States Securities and Exchange 29
142+Commission issued by or on behalf of this or any other state or any agency, department, 30
143+county, municipal or public corporation, special district, authority, or political subdivision 31
144+thereof, or in any fund or trust that invests only in securities of the type described in this 32
145+item; 33 4 SENATE BILL 776
150146
151- (ix) any investment portfolio created under the Maryland Local
152-Government Investment Pool defined under §§ 17–301 through 17–309 of the Local
153-Government Article of the Code that is administered by the Office of the State Treasurer].
154147
155- (2) Investments made under paragraph (1) of this subsection shall be in
156-accordance with the LIMITATIONS FOR THE ASSET CLASSES AND thresholds established
157-in regulations adopted under subsection [(g)] (F) of this section.
158148
159- [(c)] (B) The Treasurer may sell, redeem, or exchange an investment or
160-reinvestment made under this section in accordance with the limitations of this section.
149+ (vii) commercial paper that has received the highest letter and 1
150+numerical rating by at least two nationally recognized statistical rating organizations as 2
151+designated by the United States Securities and Exchange Commission; 3
161152
162- [(d)] (C) Subject to § 2–1257 of the State Government Article, the Treasurer
163-shall report by January 3 of each year to the General Assembly on investment activities for
164-unexpended or surplus money over which the Treasurer has custody which have been
165-conducted during the previous fiscal year. At a minimum, the report shall specify for
166-General Fund investments and all other investments:
153+ (viii) money market mutual funds that: 4
167154
168- (1) the inventory of investments with maturity dates and the book and
169-market value as of June 30;
155+ 1. are registered with the Securities and Exchange 5
156+Commission under the Investment Company Act of 1940, 15 U.S.C. § 80a–1 et seq., as 6
157+amended; 7
170158
171- (2) the net income earned;
159+ 2. are operated in accordance with Rule 2A –7 of the 8
160+Investment Company Act of 1940, 17 C.F.R. § 270.2A–7, as amended; and 9
172161
173- (3) the percentage share of each category of investment in the portfolio; and
162+ 3. have received the highest possible rating from at least one 10
163+nationally recognized statistical rating organization as designated by the United States 11
164+Securities and Exchange Commission; and 12
174165
175- (4) any sale of investments prior to the maturity date.
166+ (ix) any investment portfolio created under the Maryland Local 13
167+Government Investment Pool defined under §§ 17–301 through 17–309 of the Local 14
168+Government Article of the Code that is administered by the Office of the State Treasurer]. 15
176169
177- [(e)] (D) An investment made pursuant to this section shall be made:
170+ (2) Investments made under paragraph (1) of this subsection shall be in 16
171+accordance with the LIMITATIONS FOR THE ASSET CLASSES AND thresholds established 17
172+in regulations adopted under subsection [(g)] (F) of this section. 18
178173
179- (1) with the care, skill, prudence, and diligence under the circumstances
180-then prevailing that a prudent person acting in a like capacity and familiar with such
181-matters would use in the conduct of an enterprise of a like character and with like aims;
174+ [(c)] (B) The Treasurer may sell, redeem, or exchange an investment or 19
175+reinvestment made under this section in accordance with the limitations of this section. 20
182176
183- (2) in a manner designed to reasonably match the anticipated cash flow of
184-the State so that sufficient funds are available to pay obligations upon proper presentation
185-for payment;
177+ [(d)] (C) Subject to § 2–1257 of the State Government Article, the Treasurer 21
178+shall report by January 3 of each year to the General Assembly on investment activities for 22
179+unexpended or surplus money over which the Treasurer has custody which have been 23
180+conducted during the previous fiscal year. At a minimum, the report shall specify for 24
181+General Fund investments and all other investments: 25
186182
187- (3) so that a reasonable amount of cash or cash equivalents is available for
188-unanticipated cash needs;
183+ (1) the inventory of investments with maturity dates and the book and 26
184+market value as of June 30; 27
189185
190- (4) with due regard for minimizing risk while maximizing return;
186+ (2) the net income earned; 28
191187
192- (5) using competitive purchasing practices except when impractical; WES MOORE, Governor Ch. 144
188+ (3) the percentage share of each category of investment in the portfolio; and 29
193189
194-– 5 –
190+ (4) any sale of investments prior to the maturity date. 30
195191
196- (6) in accordance with a written investment policy;
192+ [(e)] (D) An investment made pursuant to this section shall be made: 31
193+ SENATE BILL 776 5
197194
198- (7) so that the securities and collateral may continue to be priced on a
199-market to market basis; and
200195
201- (8) to avoid the enhancement of the personal financial position of the
202-Treasurer or any employee of the Treasurer who has responsibilities for such investments.
196+ (1) with the care, skill, prudence, and diligence under the circumstances 1
197+then prevailing that a prudent person acting in a like capacity and familiar with such 2
198+matters would use in the conduct of an enterprise of a like character and with like aims; 3
203199
204- [(f)] (E) (1) (i) Consistent with minority business purchasing standards
205-applicable to units of State government under this article and consistent with the fiduciary
206-duties of the Treasurer, the Treasurer shall attempt to use to the greatest extent feasible
207-minority business enterprises for brokerage and investment management services under
208-this section.
200+ (2) in a manner designed to reasonably match the anticipated cash flow of 4
201+the State so that sufficient funds are available to pay obligations upon proper presentation 5
202+for payment; 6
209203
210- (ii) For purposes of this subsection, brokerage and investment
211-management services shall include services relating to all allocated asset classes [as
212-described in] AUTHORIZED IN THE RE GULATIONS ADOPTED UN DER subsection [(b)] (F)
213-of this section.
204+ (3) so that a reasonable amount of cash or cash equivalents is available for 7
205+unanticipated cash needs; 8
214206
215- (2) (i) To assist the Treasurer in achieving the goal described under
216-paragraph (1) of this subsection, the Treasurer shall undertake measures to remove any
217-barriers that limit full participation by minority business enterprises in brokerage and
218-investment management services opportunities afforded under this section.
207+ (4) with due regard for minimizing risk while maximizing return; 9
219208
220- (ii) The measures undertaken by the Treasurer shall include the use
221-of a wide variety of media, including the Treasurer’s website, to provide notice to a broad
222-and varied range of potential providers about the brokerage and investment management
223-services opportunities afforded by the Treasurer.
209+ (5) using competitive purchasing practices except when impractical; 10
224210
225- (3) In conjunction with the Governor’s Office of Small, Minority, and
226-Women Business Affairs, the Treasurer shall develop guidelines to assist in identifying and
227-evaluating qualified minority business enterprises in order to help the Treasurer achieve
228-the objective for greater use of minority business enterprises for brokerage and investment
229-management services under this section.
211+ (6) in accordance with a written investment policy; 11
230212
231- (4) On or before September 1 each year, the Treasurer shall submit a report
232-to the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to §
233-2–1257 of the State Government Article, the General Assembly on:
213+ (7) so that the securities and collateral may continue to be priced on a 12
214+market to market basis; and 13
234215
235- (i) the identity of the minority business enterprise brokerage and
236-investment management services firms used by the Treasurer in the immediately
237-preceding fiscal year;
238- Ch. 144 2024 LAWS OF MARYLAND
216+ (8) to avoid the enhancement of the personal financial position of the 14
217+Treasurer or any employee of the Treasurer who has responsibilities for such investments. 15
239218
240-– 6 –
241- (ii) the percentage and dollar value of the assets under the custody
242-of the Treasurer that are under the investment control of minority business enterprise
243-brokerage and investment management services firms for each allocated asset class; and
219+ [(f)] (E) (1) (i) Consistent with minority business purchasing standards 16
220+applicable to units of State government under this article and consistent with the fiduciary 17
221+duties of the Treasurer, the Treasurer shall attempt to use to the greatest extent feasible 18
222+minority business enterprises for brokerage and investment management services under 19
223+this section. 20
244224
245- (iii) the measures the Treasurer undertook in the immediately
246-preceding fiscal year in accordance with paragraph (2)(ii) of this subsection.
225+ (ii) For purposes of this subsection, brokerage and investment 21
226+management services shall include services relating to all allocated asset classes [as 22
227+described in] AUTHORIZED IN THE RE GULATIONS ADOPTED UN DER subsection [(b)] (F) 23
228+of this section. 24
247229
248- [(g)] (F) (1) The Treasurer shall adopt regulations that establish a State
249-investment policy.
230+ (2) (i) To assist the Treasurer in achieving the goal described under 25
231+paragraph (1) of this subsection, the Treasurer shall undertake measures to remove any 26
232+barriers that limit full participation by minority business enterprises in brokerage and 27
233+investment management services opportunities afforded under this section. 28
250234
251- (2) The State investment policy shall specify:
235+ (ii) The measures undertaken by the Treasurer shall include the use 29
236+of a wide variety of media, including the Treasurer’s website, to provide notice to a broad 30
237+and varied range of potential providers about the brokerage and investment management 31
238+services opportunities afforded by the Treasurer. 32
252239
253- (I) ASSET CLASSES IN WHI CH THE TREASURER MAY INVEST OR
254-REINVEST CERTAIN UNE XPENDED OR SURPLUS F UNDS; AND
240+ (3) In conjunction with the Governor’s Office of Small, Minority, and 33
241+Women Business Affairs, the Treasurer shall develop guidelines to assist in identifying and 34
242+evaluating qualified minority business enterprises in order to help the Treasurer achieve 35 6 SENATE BILL 776
255243
256- (II) thresholds for the maximum investment in each asset class
257-authorized under [this section] ITEM (I) OF THIS PARAGRAPH .
258244
259- SECTION 2. AND BE IT FURTHER ENACTED, That :
245+the objective for greater use of minority business enterprises for brokerage and investment 1
246+management services under this section. 2
260247
261- (a) Notwithstanding any other provision of law, the Treasurer may retain
262-investments made prior to the effective date of this Act until the investments have reached
263-their respective maturity dates.
248+ (4) On or before September 1 each year, the Treasurer shall submit a report 3
249+to the Governor’s Office of Small, Minority, and Women Business Affairs and, subject to § 4
250+2–1257 of the State Government Article, the General Assembly on: 5
264251
265- (b) Notwithstanding the changes to § 6 –222 of the State Finance and
266-Procurement Article as enacted by Section 1 of this Act, the Treasurer may invest or
267-reinvest surplus money in the investments authorized under the former § 6–222 of the
268-State Finance and Procurement Article as in effect immediately preceding the effective date
269-of this Act until the effective date of the regulations amending the State investment policy
270-are adopted by the Treasurer in accordance with Section 3 of this Act.
252+ (i) the identity of the minority business enterprise brokerage and 6
253+investment management services firms used by the Treasurer in the immediately 7
254+preceding fiscal year; 8
271255
272- (c) Notwithstanding the changes to § 6–222 of the State Finance and
273-Procurement Article as enacted by Section 1 of this Act, the governmental entities described
274-in § 17–203 of the Local Government Article may invest or reinvest surplus money in the
275-investments authorized under the former § 6–222 of the State Finance and Procurement
276-Article as in effect immediately preceding the effective date of this Act until the effective
277-date of the regulations amending the local government investment guidelines are adopted
278-by the Treasurer in accordance with Section 3 of this Act.
256+ (ii) the percentage and dollar value of the assets under the custody 9
257+of the Treasurer that are under the investment control of minority business enterprise 10
258+brokerage and investment management services firms for each allocated asset class; and 11
279259
280- SECTION 3. AND BE IT FURTHER ENACTED, That the Treasurer shall:
260+ (iii) the measures the Treasurer undertook in the immediately 12
261+preceding fiscal year in accordance with paragraph (2)(ii) of this subsection. 13
281262
282- (1) on or before December 1, 2024, adopt the:
263+ [(g)] (F) (1) The Treasurer shall adopt regulations that establish a State 14
264+investment policy. 15
283265
284- (i) regulations amending the State investment policy in accordance
285-with § 6–222 of the State Finance and Procurement Article as enacted by Section 1 of this
286-Act required under Section 1 of this Act; and WES MOORE, Governor Ch. 144
266+ (2) The State investment policy shall specify: 16
287267
288-– 7 –
268+ (I) ASSET CLASSES IN WHI CH THE TREASURER MAY INVEST OR 17
269+REINVEST CERTAIN UNE XPENDED OR SURPLUS F UNDS; AND 18
289270
290- (ii) regulations amending the local government investment
291-guidelines in accordance with § 17–204 of the Local Government Article as enacted by
292-Section 1 of this Act; and
271+ (II) thresholds for the maximum investment in each asset class 19
272+authorized under [this section] ITEM (I) OF THIS PARAGRAPH . 20
293273
294- (2) following the adoption of regulations amending the local government
295-investment guidelines as required under Section 1 of this Act item (1) of this section:
274+ SECTION 2. AND BE IT FURTH ER ENACTED, That: 21
296275
297- (i) notify in writing the governing body of each local governmental
298-unit entity required to have a local investment policy under § 17–205 of the Local
299-Government Article of the updated State investment policy; amended local government
300-investment guidelines; and
276+ (a) Notwithstanding any other provision of law, the Treasurer may retain 22
277+investments made prior to the effective date of this Act until the investments have reached 23
278+their respective maturity dates. 24
301279
302- (ii) provide the local government governmental entity with an
303-opportunity to review, revise, and report any changes in the local investment policies to the
304-Treasurer, as appropriate.
280+ (b) Notwithstanding the changes to § 6–222 of the State Finance and 25
281+Procurement Article as enacted by Section 1 of this Act, the Treasurer may invest or 26
282+reinvest surplus money in the investments authorized under the former § 6–222 of the 27
283+State Finance and Procurement Article as in effect immediately preceding the effective date 28
284+of this Act until the effective date of the regulations amending the State investment policy 29
285+are adopted by the Treasurer in accordance with Section 3 of this Act. 30
305286
306- SECTION 3. 4. AND BE IT FURTHER ENACTED, That this Act is an emergency
307-measure, is necessary for the immediate preservation of the public health or safety, has
308-been passed by a yea and nay vote supported by three–fifths of all the members elected to
309-each of the two Houses of the General Assembly, and shall take effect from the date it is
310-enacted.
287+ (c) Notwithstanding the changes to § 6 –222 of the State Finance and 31
288+Procurement Article as enacted by Section 1 of this Act, the governmental entities described 32
289+in § 17–203 of the Local Government Article may invest or reinvest surplus money in the 33
290+investments authorized under the former § 6–222 of the State Finance and Procurement 34 SENATE BILL 776 7
311291
312-Approved by the Governor, April 25, 2024.
292+
293+Article as in effect immediately preceding the effective date of this Act until the effective 1
294+date of the regulations amending the local government investment guidelines are adopted 2
295+by the Treasurer in accordance with Section 3 of this Act. 3
296+
297+ SECTION 3. AND BE IT FURTHER ENACTED, That the Treasurer shall: 4
298+
299+ (1) on or before December 1, 2024, adopt the: 5
300+
301+ (i) regulations amending the State investment policy in accordance 6
302+with § 6–222 of the State Finance and Procurement Article as enacted by Section 1 of this 7
303+Act required under Section 1 of this Act; and 8
304+
305+ (ii) regulations amending the local government investment 9
306+guidelines in accordance with § 17–204 of the Local Government Article as enacted by 10
307+Section 1 of this Act; and 11
308+
309+ (2) following the adoption of regulations amending the local government 12
310+investment guidelines as required under Section 1 of this Act item (1) of this section: 13
311+
312+ (i) notify in writing the governing body of each local governmental 14
313+unit entity required to have a local investment policy under § 17–205 of the Local 15
314+Government Article of the updated State investment policy; amended local government 16
315+investment guidelines; and 17
316+
317+ (ii) provide the local government governmental entity with an 18
318+opportunity to review, revise, and report any changes in the local investment policies to the 19
319+Treasurer, as appropriate. 20
320+
321+ SECTION 3. 4. AND BE IT FURTHER ENACTED, That this Act is an emergency 21
322+measure, is necessary for the immediate preservation of the public health or safety, has 22
323+been passed by a yea and nay vote supported by three–fifths of all the members elected to 23
324+each of the two Houses of the General Assembly, and shall take effect from the date it is 24
325+enacted. 25
326+
327+
328+
329+
330+Approved:
331+________________________________________________________________________________
332+ Governor.
333+________________________________________________________________________________
334+ President of the Senate.
335+________________________________________________________________________________
336+ Speaker of the House of Delegates.