ROBERT L. EHRLICH, JR., Governor

H.B. 351

(III) ACCEPT AND RETAIN MONEYS FOR FUTURE EXPENDITURES TO
BE USED TO IMPLEMENT ACTS OF THE GENERAL ASSEMBLY, OTHER THAN THE STATE
BUDGET BILL, THAT:

1.       IMPROVE THE HEALTH STATUS OF RESIDENTS OF THE
STATE; AND

2.       SPECIFICALLY DIRECT THE USE OF ASSETS OF THE
TRUST.

(4) MONEYS EXPENDED FROM THE TRUST ARE SUPPLEMENTAL TO, AND
ARE NOT INTENDED TO TAKE THE PLACE OF, STATE FUNDS THAT WOULD
OTHERWISE BE APPROPRIATED BY THE STATE FOR THE IMPROVEMENT OF THE
HEALTH CARE STATUS OF THE RESIDENTS OF THE STATE.

(B)     (1) THE STATE TREASURER SHALL BE THE TRUSTEE OF THE TRUST.

(2) THE POWERS AND DUTIES OF THE TRUST SHALL REST IN AND BE
EXERCISED BY THE TRUSTEE.

(C)     THE POWERS AND DUTIES OF THE TRUST SHALL BE ESTABLISHED AND
MODIFIED SOLELY BY THE GENERAL ASSEMBLY.

(D)     IN ACCORDANCE WITH THIS TITLE, THE TRUST CONSISTS OF THE PUBLIC
AND CHARITABLE ASSETS RECEIVED AS A RESULT OF THE ACQUISITION OF A
NONPROFIT HEALTH SERVICE PLAN OR A NONPROFIT HEALTH MAINTENANCE
ORGANIZATION, APPROVED BY THE ADMINISTRATION ON OR AFTER JUNE 1, 2001, OR
A NONPROFIT HOSPITAL, APPROVED BY THE ATTORNEY GENERAL IN CONSULTATION
WITH THE DEPARTMENT.

(E)     (1) THE STATE TREASURER SHALL MANAGE, INVEST, AND REINVEST
THE TRUST IN THE SAME MANNER THAT STATE FUNDS ARE INVESTED.

(2) THE TRUST SHALL BE HELD AND ACCOUNTED FOR SEPARATE AND
APART FROM THE FUNDS OF THE STATE.

(F)     ANY INTEREST OR OTHER INVESTMENT EARNINGS OF THE TRUST SHALL
BE CREDITED TO AND PAID INTO THE TRUST.

(G)     (1) THE TRUSTEE SHALL MAKE PROVISION FOR A SYSTEM OF
FINANCIAL ACCOUNTING, CONTROLS, AUDITS, AND REPORTS.

(2) THE TRUSTEE SHALL REPORT TO THE GOVERNOR AND, IN
ACCORDANCE WITH § 2-1246 OF THIS ARTICLE, TO THE GENERAL ASSEMBLY ON OR
BEFORE DECEMBER 1, 2004, AND ANNUALLY THEREAFTER ON THE STATUS OF THE
ASSETS OF THE TRUST.

15-601.

(d) (1) An individual who is a public official only as a member of a board [or
who is a member of the Board of Trustees of the Maryland Health Care Foundation
established under § 20-501 of the Health - General Article] and who receives annual

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