PARRIS N. GLENDENING, Governor

Ch. 110

(H) (I) AFTER EACH ANNUAL REVIEW OF THE COMPREHENSIVE
INVESTMENT PLAN FOR ACTUARIAL SOUNDNESS, THE BOARD MAY ADJUST THE
TERMS OF SUBSEQUENT PREPAID TUITION HIGHER EDUCATION INVESTMENT
CONTRACTS TO ENSURE CONTINUED ACTUARIAL SOUNDNESS OR, IF NECESSARY,
MAY ADJUST THE TERMS OF CURRENT PREPAID TUITION HIGHER EDUCATION
INVESTMENT CONTRACTS.

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

(J) (K) THE BOARD:

(1) SHALL PRESERVE, INVEST, AND EXPEND THE ASSETS OF THE
PROGRAM SOLELY FOR THE PURPOSES OF THIS SUBTITLE; AND

(2) MAY NOT LOAN, TRANSFER, OR USE THE ASSETS FOR ANY OTHER
PURPOSE OF THE STATE,

(K) (L) THE PROGRAM IS NOT SUBJECT TO § 7-302 OF THE STATE FINANCE
AND PROCUREMENT ARTICLE

(L) (M) UNLESS THE BOARD PROVIDES OTHERWISE BY REGULATION, THE
BOARD SHALL USE THE PROCEEDS IN THE PROGRAM IN THE FOLLOWING ORDER:

(1) TO PAY ELIGIBLE INSTITUTIONS OF HIGHER EDUCATION 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.

18-1907.

THE BOARD MUST REPORT NOT LESS THAN ANNUALLY TO THE BUDGET
COMMITTEES OF THE GENERAL ASSEMBLY. IN ACCORDANCE WITH § 2-1312 OF THE
STATE GOVERNMENT ARTICLE, ON:

(1) THE STATUS OF THE INVESTMENT PROGRAM, INCLUDING
INVESTMENT INCOME MATCHED TO PROJECTED ENROLLMENT COSTS UNDER THE
EXISTING CONTRACT;

(2) THE ASSETS HELD IN EACH CLASS OF INVESTMENT, THE AMOUNT OF
FUNDS HELD IN ANY CASH POOL. THE AMOUNT OF FUNDS HELD IN FIXED ASSETS
INVESTMENTS. AND THE AMOUNT OF FUNDS HELD IN EQUITY INVESTMENTS:

(3) THE PERCENTAGE AND DOLLAR VALUE OF ASSETS PLACED WITH
OUTSIDE MANAGERS;

(4) THE INCOME PRODUCED BY EACH CLASS OF INVESTMENT; AND

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