ROBERT L. EHRLICH, JR., Governor

S.B. 309

generally relating to banking services agreements.

BY repealing and reenacting, with amendments,
Article - State Finance and Procurement
Section 6-229

Annotated Code of Maryland
(2001 Replacement Volume and 2003 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - State Finance and Procurement

6-229.

(a)     The Treasurer may make an agreement with a [bank or trust company]
FINANCIAL INSTITUTION as to TERMS, CONDITIONS, AND compensation for a banking
service that the [bank or trust company] FINANCIAL INSTITUTION provides to the
State OR ANY STATE AGENCY.

(b)     An agreement under this section:

(1)     [may allow] SHALL SPECIFY THE charges TO BE PAID for a banking
service; [or]

(2)     [instead of charges, may:

(i)] MAY allow the deposit of money with the [bank or trust
company] FINANCIAL INSTITUTION in an amount DETERMINED BY THE TREASURER
that permits the [bank or trust company] FINANCIAL INSTITUTION to earn sufficient
compensation TO OFFSET THE CHARGES for its banking service; and

[(ii)](3) SHALL require the [bank or trust company] FINANCIAL
INSTITUTION to invest any money on deposit that exceeds [the allowed amount] ANY
AMOUNT ALLOWED BY THE TREASURER UNDER ITEM (2) OF THIS SUBSECTION and
UNLESS OTHERWISE SPECIFICALLY PROVIDED BY LAW to pay to the State the
proceeds of the investment TO THE GENERAL FUND OF THE STATE.

(C)     THE TREASURER, WITH THE CONCURRENCE OF THE COMPTROLLER, MAY
AUTHORIZE A STATE AGENCY TO OPEN AND MAINTAIN AN ACCOUNT WITH A
FINANCIAL INSTITUTION THAT HAS AN AGREEMENT WITH THE TREASURER UNDER
THIS SECTION.

(D)     AN ACCOUNT ESTABLISHED UNDER SUBSECTION (C) OF THIS SECTION
SHALL COMPLY WITH THE PROVISIONS OF THIS SUBTITLE AND REGULATIONS AND
POLICIES ADOPTED BY THE TREASURER AND THE COMPTROLLER

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2004.

May 25, 2004

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