PARRIS N. GLENDENING, Governor H.B. 108
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 EDUCTION 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
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