Maryland Treasurer Section 22F
§ 22F.
(a) (1) In this section the following words have the meanings indicated.
(2) "Chief executive" means:
(i) For Baltimore City, the Mayor;
(ii) For a nonhome rule county, the chairman or president of the board of county commissioners;
(iii) For a charter county, the elected county executive or, if the county does not have an elected executive, the chairman or president of the county council;
(iv) For a code home rule county, the chairman or president of the board of county commissioners;
(v) For a community college, a designee of the board of trustees;
(vi) For a municipal corporation, the mayor or, if the municipal corporation does not have a mayor, the chairman or president of the municipal governing body; and
(vii) For the Washington Suburban Sanitary Commission, the Chairman of the Commission.
(3) (i) "Community college" includes a regional community college established under Title 16, Subtitle 2 of the Education Article.
(ii) "Community college" does not include the Baltimore City Community College.
(4) "Governing body" means:
(i) For Baltimore City, the Mayor and City Council of Baltimore;
(ii) For a nonhome rule county, the county commissioners;
(iii) For a charter county, as provided by local law, the county council or the county executive and the county council;
(iv) For a code county, the county commissioners;
(v) For a community college, the board of trustees;
(vi) For a municipal corporation, the body provided by the municipal charter; and
(vii) For the Washington Suburban Sanitary Commission, the Commission.
(5) "Investment manager" means the director of finance, treasurer, or other official of a local government unit who is responsible for the investment of public funds of the local government unit.
(6) "Local government unit" means:
(i) Baltimore City;
(ii) A community college;
(iii) A county;
(iv) A municipal corporation; or
(v) The Washington Suburban Sanitary Commission.
(7) (i) "Public funds" means any revenue held by a local government unit as part of:
1. A general fund;
2. A special fund;
3. A capital improvement fund;
4. A debt service fund;
5. An enterprise fund;
6. An internal service fund; or
7. Except as otherwise provided in subparagraph (ii) of this paragraph, any other account of the local government unit.
(ii) "Public funds" does not include revenues held as part of a pension fund or other trust fund account.
(b) This section and the local government investment guidelines adopted by the State Treasurer under this section supersede any local law, including any charter provision, or any other public general law to the extent of any conflict.
(c) (1) (i) After consulting with local government officials, the State Treasurer shall adopt by regulation local government investment guidelines to govern the investment of public funds by local government units in a manner that will facilitate sound cash management while protecting the public and assuring that a local government unit has access to its public funds as required.
(ii) The State Treasurer's local government investment guidelines shall:
1. State the types of investments in which public funds may be invested;
2. Include guidance for the prudent investment of public funds based on cash flow projections, income, liquidity, investment ratings, and risk;
3. Require that investments by a board of education and a board of library trustees are in compliance with the local investment policy of the respective county; and
4. Prohibit borrowing of funds for the express purpose of investing those funds.
(iii) The State Treasurer's local government investment guidelines shall include a form that local government units shall use to comply with subsection (e) of this section. The form shall be adaptable to the investment needs of each local government unit and shall require sufficient detail to identify all pertinent aspects of an investment portfolio, including any realized losses. The form also shall require that each county include investments managed in accounts for or by the board of education and the board of library trustees of the county. The form shall provide for certification as required under subsection (e) of this section.
(2) (i) On or before September 1, 1995, the governing body of each local government unit shall adopt by resolution a local investment policy that:
1. Is consistent with the local government investment guidelines adopted by the State Treasurer; and
2. Meets the individual needs of the local government unit.
(ii) Promptly after the adoption of a local investment policy, the local government unit shall mail a certified copy to the State Treasurer.
(iii) If the State Treasurer determines that the local investment policy is not consistent with the local government investment guidelines adopted by the State Treasurer, the State Treasurer shall notify the local government unit and the governing body of the local government unit shall prepare and submit a revised local investment policy that is consistent with the State Treasurer's guidelines.
(3) If the governing body of a local government unit amends its local investment policy, the local government shall submit its new policy to the State Treasurer consistent with the provisions of paragraph (2) of this subsection.
(d) An investment manager may not invest public funds of the local government unit in a manner inconsistent with the local investment policy.
(e) (1) This subsection only applies to a local government unit whose total annual expenditures for total operations, as reported in the most recent publication by the Department of Legislative Services entitled "Local Government Finances in Maryland", exceed $1,000,000.
(2) (i) On or before January 15 and July 15 of each year, beginning October 1995 and continuing through October 1999, the investment manager shall complete the form adopted by the State Treasurer to report all investments of the local government unit on the close of the final day of the immediately preceding half of the fiscal year.
(ii) The investment manager shall certify the accuracy of the form and that the investments reported on the form are in compliance with the local investment policy and promptly submit the form to the chief executive.
(3) (i) On or before January 30 and July 30 of each year, beginning October 1995 and continuing through October 1999, the chief executive shall review the form received from the investment manager.
(ii) The chief executive shall certify the date on which the form was received and that the chief executive has reviewed the form to verify that the information complies with the local investment policy and promptly mail a copy of the completed certified form to the State Treasurer.
(4) The State Treasurer shall review the forms to verify that the chief executive, a governing body, or an independent auditor engaged by the chief executive or a governing body has certified their compliance with this section and the local government investment guidelines.
(f) (1) The State Treasurer shall contact the local government unit to seek compliance if a local government unit fails to:
(i) Adopt a local investment policy that is consistent with the local government investment guidelines adopted by the State Treasurer; or
(ii) Comply with the reporting requirements under subsection (e) of this section.
(2) If the local government unit continues to fail to comply with this subsection, the State Treasurer shall notify in writing the Joint Committee on the Management of Public Funds.
(3) The Joint Committee on the Management of Public Funds may request the Attorney General to seek judicial enforcement against the local government unit.
