PARRIS N. GLENDENING, Governor                             Ch. 352

233AF.

(A) THERE IS AN INSURANCE FRAUD DIVISION FUND.

(B) THE PURPOSE OF THE FUND IS TO PAY ALL THE COSTS AND EXPENSES
INCURRED BY THE INSURANCE ADMINISTRATION RELATED TO THE OPERATION OF THE
INSURANCE FRAUD DIVISION, INCLUDING THE COSTS OF STATE EMPLOYEES
SPECIFICALLY ASSIGNED TO THE FRAUD DIVISION BY THE OFFICE OF ATTORNEY
GENERAL AND THE MARYLAND STATE POLICE.

(B) (C) THE FUND SHALL CONSIST OF:

(1) THE FEES COLLECTED AND DEPOSITED IN THE FUND BY THE
COMMISSIONER UNDER § 640B OF THIS ARTICLE; AND

(2) INCOME FROM INVESTMENTS THAT THE STATE TREASURER MAKES FOR
THE INSURANCE FRAUD DIVISION FUND.

(C) (1) THE ACCOUNT OF THE FUND IS A SPECIAL FUND ACCOUNT AND
MAY NOT BE CONSIDERED PART OF THE TREASURY OF THE STATE.

(2) NO PART OF THE FUND MAY REVERT OR BE CREDITED TO THE
GENERAL FUND OR ANY OTHER SPECIAL FUND OF THE STATE.

(D) THE FUND SHALL BE USED TO FUND THE ACTIVITIES OF THE DIVISION:

(E)     (1) THE FUND SHALL BE INVESTED AND REINVESTED IN THE SAME
MANNER AS STATE FUNDS.

(2) ANY INVESTMENT EARNINGS SHALL BE TRANSFERRED TO THE
CREDIT OF THE FUND:

(D) ALL THE COSTS AND EXPENSES OF THE INSURANCE FRAUD DIVISION SHALL
BE INCLUDED IN THE STATE BUDGET AND EXPENDITURES FROM THE FUND TO COVER
COSTS AND EXPENSES OF THE FRAUD DIVISION MAY ONLY BE MADE:

(1) PURSUANT TO AN APPROPRIATION APPROVED BY THE GENERAL
ASSEMBLY IN THE ANNUAL STATE BUDGET; OR

(2) BY THE BUDGET AMENDMENT PROCEDURE PROVIDED FOR IN § 7-109 OF
THE STATE FINANCE AND PROCUREMENT ARTICLE.

(E)   (1) THE STATE TREASURER IS THE CUSTODIAN OF THE FUND.

(2) THE FUND SHALL BE INVESTED AND REINVESTED IN THE SAME
MANNER AS STATE FUNDS.

(3) THE STATE TREASURER SHALL DEPOSIT PAYMENTS RECEIVED FROM
THE INSURANCE COMMISSIONER INTO THE FUND.

(F) (1) THE FUND IS A CONTINUING. NONLAPSING FUND AND IS NOT SUBJECT
TO § 7-302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. AND MAY NOT BE
DEEMED A PART OF THE GENERAL FUND.

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