PARRIS N. GLENDENING, Governor Ch. 110

specifically identified discretionary amounts in the Governor's budget, other than any
increase to the basic current expense formula.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
October July 1, 1997.

Approved April 29, 1997.

CHAPTER 110
(Senate Bill 232)

AN ACT concerning

Higher Education - Maryland Prepaid Tuition Higher Education Investment Program

FOR the purpose of establishing a method to provide for the prepayment of tuition at the
public institutions of higher education in the State; establishing the Maryland
Prepaid Tuition Higher Education Investment Program; clarifying the purpose of
the Program and the types of funds of which the Program shall be composed;
defining certain terms; providing that neither the faith and credit nor the taxing power of
the State is pledged to the payment of debts, contracts, and obligations of the Program,
institutions of higher education, and other participants in the Program; establishing a
Maryland Prepaid Tuition Higher Education Investment Program Board; specifying
the membership, appointment, terms, and removal of members of the Board;
providing that the budget for the Maryland Higher Education Investment Board
and its staff must be approved by the General Assembly is subject to review by the
General Assembly for information purposes, establishing the powers and duties of the
Board; establishing administrative rules for the Board; authorizing the Board to
adopt regulations to carry out its responsibilities; requiring the Board to adopt a
certain investment plan for the Program; establishing the fiduciary responsibilities
of the Board; prohibiting certain transactions involving program assets; requiring the
Board to purchase certain bonds for fiduciaries; exempting the Program from certain
laws; requiring the Board to establish a program of prepaid tuition higher education
investment contracts for the advance payment of tuition at public institutions of
higher education in the State; authorizing the Board to provide for circumstances
under which money may be withdrawn from the Program; specifying certain
requirements concerning prepaid tuition higher education investment contracts;
requiring the Board to provide for certain changes in circumstances of beneficiaries
and purchasers of prepaid tuition higher education investment contracts; providing
for refunds under certain circumstances; prohibiting any legal attachment of
contract benefits or assets of the Program; authorizing certain public agencies to
provide for payroll deductions for employees to purchase prepaid tuition higher
education investment contracts; requiring an annual audit of the Program; requiring
the Board to report to the Governor and General Assembly annually concerning the
audit and certain matters concerning the Program; establishing provisions for the
discontinuance of the Program; prohibiting inspection of certain records except in
certain circumstances; requiring a certain appropriation for a certain fiscal year;

- 1609 -