Ch. 366                                    1995 LAWS OF MARYLAND

(2)     the amount, not exceeding 1.5% of the average of the market values as
of July 1 and June 30 of the current fiscal year of assets externally invested in real estate,
necessary for external real estate investment management services; and

(3)     the amount, not exceeding 0.3% of the market value as of December 31
of the preceding fiscal year of invested assets that are externally managed exclusive of
assets invested in real estate, necessary to procure and retain investment management
services other than external real estate investment management services.

(d) The amounts estimated under subsection (c) of this section shall be paid into
the expense funds of the several systems during the ensuing year on a pro-rata basis
according to the total assets held by each system.

(e) The Board of Trustees may combine the expense funds of the several systems
for budgetary and administrative efficiency.

(f) On or before December 31 of each year, the Board of Trustees shall report to
the General Assembly the actual amount spent for investment management services
during the preceding fiscal year.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article—State Personnel and Pensions

21-315.

(a) The Board of Trustees shall credit to the expense fund of each State system its
pro-rata share of:

(1) the amount provided in the annual State budget to pay the
administrative and operational expenses of the Board of Trustees and the State
Retirement Agency;

(2) the amounts authorized by the Board of Trustees under this section for
investment management services; and

(3) the amount authorized by the Board of Trustees to implement a closing
agreement with the Internal Revenue Service regarding former members of the
Employees' Retirement System or the Teachers' Retirement System who elected to
become members of or participate in those State systems under former Article 73B, §§
2-206 and 3-206 of the Code.

(b) The Board of Trustees shall pay from the expense fund of each State system
its pro-rata share of:

(1) the administrative and operational expenses of the Board of Trustees
and the State Retirement Agency, in accordance with the annual State budget;

(2) the amounts as authorized by the Board of Trustees necessary for
investment management services; and

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