Ch. 381

2003 LAWS OF MARYLAND

18-1906.1,                                                                                 

(a)     If the current prepaid contract obligations of the [Program] TRUST, exceed
the market value of [Program] TRUST assets, at the request of the Board the
Governor shall include in the annual budget bill submitted to the General Assembly
an appropriation in the amount determined under subsection (b) of this section.

(b)     The appropriation to be included in the budget bill under subsection (a) of
this section shall, equal the difference between the current prepaid contract
obligations and the market value of [Program] TRUST assets.

(c) For purposes of this section, the current prepaid contract obligations and
the market value of [Program] TRUST assets:

(1) Shall be determined as of June 30 of the calendar year that ended
before the beginning of the fiscal year for which the appropriation is requested; and

(2) Shall be verified by the report of the independent outside auditor
required under § 18-1916 of this subtitle.

(d) (1) The amount appropriated under this section shall be deposited into
the [Program] TRUST.

(2)     All amounts paid into the [Program] TRUST under this section shall
constitute and be accounted for as advances to the [Program] TRUST.

(3)     Subject to the rights of the [Program's] TRUST'S contract holders,
amounts appropriated under this section shall be repaid to the State without interest
in equal amounts in each of the next 2 fiscal years succeeding the one for which the
appropriation was made.

(4)     If the appropriation in the State budget as enacted by the General
Assembly is less than the amount specified under subsection (b) of this section, the
Board may adjust the terms of subsequent or current prepaid contracts to ensure
continued actuarial soundness of the [Program] TRUST.

18-1907.

(a)     In this section, "fiduciary" means:

(1) A member of the [Maryland Higher Education Investment] Board; or

(2) An employee of the [Maryland Prepaid College] PROGRAM OR THE
Trust who exercises any discretionary authority or control over:

(i) The management or administration of the [Program] TRUST; or

(ii) The management or disposition of the assets of the [Program]
TRUST.

(b)     A fiduciary shall discharge the fiduciary's duties with respect to the
[Program] TRUST:

(1) Solely in the interest of the participants;

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