HARRY HUGHES, Governor

801

skill, education, and knowledge, and whose labor is predominantly
intellectual rather than physical or manual. [The compensation
of unclassified employees shall be determined by the Board of
Trustees with the approval of the Board of Public Works.] All
employees of the State Investment Agency shall comply with
policies prescribed by the Board of Trustees concerning personal
investments and conflicts of interest.

(6)  The members of the State Investment Council shall
determine what bonding, if any, employees of the Agency shall be
required to have in addition to that provided by the Treasurer in
accordance with the provisions of Sections 46 through 50 of
Article 78A of the Annotated Code of Maryland.

(7)  Expenses in connection with the administration and
operation of the State Investment Agency shall be paid from the
income, interest, and dividends derived from deposits and
investments administered by the Agency. Expenditures shall be in
accordance with appropriations made by the General Assembly.

(8)  The Board of Trustees shall be responsible for the
budget of the State Investment Agency. The executive director of
the State Investment Agency shall compile annually a
comprehensive budget. The budget of the Investment Agency shall
be submitted to the Investment Council for review and
recommendation, prior to submission to the Board of Trustees.

(9)  The executive director of the State Investment Agency
shall submit a report on or before September 15 of each year to
the Board of Trustees on the performance and operation of the
Agency during the fiscal year concluded on the preceding June 30.
The Board may prescribe the format of the report and may require
such information as it deems appropriate.

(10)  (a) The State Treasurer shall be the custodian of the
annuity savings funds, accumulation funds, and expense funds of
the several systems. All payments from the funds shall be made
in accordance with rules adopted by the Board of Trustees, with
the approval of the State Treasurer.

(b)  The State Treasurer shall be the custodian of the
securities, investments, deposits, and funds of the State
Investment Agency.

(c)  The State Treasurer is authorized to enter into
arrangements with 1 or more duly qualified banks or trust
companies for the safe custody of investments, for banking
services, and for any other function considered necessary to
physically safeguard the assets managed by the State Investment
Agency.

(d)  Any of the securities purchased by the State
Investment Agency may be deposited in vaults or other safe
depositories outside the office of the State Treasurer, both in
and outside this State. A safekeeping receipt shall be delivered