PARRIS N. GLENDENING, Governor                            H.B. 368

BETWEEN THE PREPAID AMOUNT UNDER ADVANCE PURCHASE CONTRACTS AND
ACTUAL COSTS AT THE TIME OF ENROLLMENT.

(5)     THE PLAN SHALL PROVIDE FOR THE FUND TO BE ADMINISTERED IN
AN ACTUARIALLY SOUND MANNER TO ASSURE THAT THE BOARD MAY DEFRAY
OBLIGATIONS OF THE PROGRAM.

(6)     THE BOARD SHALL REVIEW THE COMPREHENSIVE INVESTMENT
PLAN AT LEAST ANNUALLY TO ASSURE THAT THE PROGRAM REMAINS
ACTUARIALLY SOUND.

(7)     AFTER EACH ANNUAL REVIEW OF THE COMPREHENSIVE
INVESTMENT PLAN FOR ACTUARIAL SOUNDNESS, THE BOARD MAY ADJUST THE
TERMS OF SUBSEQUENT ADVANCE PAYMENT CONTRACTS TO ENSURE CONTINUED
ACTUARIAL SOUNDNESS.

(8)     THE BOARD MAY CONTRACT WITH AN INVESTMENT ADVISORY OR
MANAGEMENT COMPANY FOR THE INVESTMENT AND MANAGEMENT OF THE FUND
AS LONG AS THE FUND IS ADMINISTERED IN ACCORDANCE WITH THE
COMPREHENSIVE INVESTMENT PLAN.

(D) (1) THE FUND IS NOT SUBJECT TO § 7-302 OF THE STATE FINANCE AND
PROCUREMENT ARTICLE.

(2) ASSETS OF THE FUND MAY BE USED ONLY FOR PURPOSES
AUTHORIZED UNDER THIS SUBTITLE

(E)    UNLESS THE BOARD PROVIDES OTHERWISE BY REGULATION, THE
BOARD SHALL USE THE PROCEEDS IN THE FUND IN THE FOLLOWING ORDER:

(1) TO PAY ELIGIBLE INSTITUTIONS IN ACCORDANCE WITH THE
BOARD'S OBLIGATIONS UNDER ADVANCE PAYMENT CONTRACTS;

(2)     TO REFUND MONEY ON THE TERMINATION OF ADVANCE PAYMENT
CONTRACTS; AND

(3)     TO PAY THE OPERATING EXPENSES OF THE BOARD.

(F)     THE BOOKS, RECORDS, AND ACCOUNTS OF THE BOARD AND THE FUND
ARE SUBJECT TO AUDIT BY THE LEGISLATIVE AUDITOR.

18-2108.

(A) IN TIES SECTION, "DIRECT-SUPPORT ORGANIZATION" MEANS AN
ORGANIZATION WHICH:

(1) IS A MARYLAND NONSTOCK CORPORATION INCORPORATED UNDER
TITLE 5, SUBTITLE 2 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE;

(2) IS ORGANIZED AND OPERATED EXCLUSIVELY TO RECEIVE, HOLD,
INVEST, AND ADMINISTER PROPERTY AND TO MAKE EXPENDITURES TO OR FOR
THE BENEFIT OF THE PROGRAM;

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