H.B. 1095

VETOES

(D)     BEGINNING IN FISCAL YEAR 2006, ANY SUBSIDY RECEIVED BY THE STATE
THAT IS PROVIDED TO EMPLOYERS AS A RESULT OF THE FEDERAL MEDICARE
PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION ACT OF 2003, OR
SIMILAR FEDERAL SUBSIDY RECEIVED AS A RESULT OF THE STATE'S PRESCRIPTION
DRUG PROGRAM, SHALL BE DEPOSITED INTO THE ACCUMULATION FUND OF THE
POSTRETIREMENT HEALTH FUNDING SYSTEM BENEFITS TRUST FUND.

(E)     (1) THE BOARD OF TRUSTEES ARE THE TRUSTEES OF THE
POSTRETIREMENT HEALTH BENEFITS TRUST FUND.

(2)      NOTWITHSTANDING ANY OTHER PROVISION OF LAW:

(I)      THE BOARD OF TRUSTEES SHALL HAVE FULL POWER TO
INVEST AND MANAGE THE ASSETS OF THE POSTRETIREMENT HEALTH BENEFITS
TRUST FUND TO ACHIEVE THE STATUTORY PURPOSE OF THE FUND; AND

(II)     EACH MEMBER OF THE BOARD OF TRUSTEES SHALL
DISCHARGE THE MEMBER'S DUTIES WITH RESPECT TO THE POSTRETIREMENT
HEALTH BENEFITS TRUST FUND AS A FIDUCIARY AND BE INDEMNIFIED IN
ACCORDANCE WITH THE PROVISIONS OF TITLE 21, SUBTITLE 2 OF THIS ARTICLE.

(3)      THE BOARD OF TRUSTEES MAY INCUR REASONABLE INVESTMENT
EXPENSES PAYABLE FROM THE ASSETS OF THE POSTRETIREMENT HEALTH
BENEFITS TRUST FUND, AND IN ACCORDANCE WITH § 21-315(D) OF THIS ARTICLE,
FOR:

(I)      SERVICES OF MANAGERS TO INVEST THE ASSETS OF THE
POSTRETIREMENT HEALTH BENEFITS TRUST FUND;

(II)     SERVICES OF ONE OR MORE DULY QUALIFIED BANKS OR TRUST
COMPANIES FOR THE SAFE CUSTODY OF THE INVESTMENTS AND BANKING
SERVICES; AND

(III)   ANY OTHER SERVICE THAT THE BOARD OF TRUSTEES DEEMS
REASONABLE AND NECESSARY IN CONNECTION WITH THE INVESTMENTS OF THE
POSTRETIREMENT HEALTH BENEFITS TRUST FUND.

(4)      (I) THE BOARD OF TRUSTEES MAY INCUR REASONABLE
ADMINISTRATIVE EXPENSES PAYABLE FROM THE ASSETS OF THE POSTRETIREMENT
HEALTH BENEFITS TRUST FUND.

(II) ADMINISTRATIVE EXPENSES PAID UNDER SUBPARAGRAPH (I)
OF THIS PARAGRAPH MAY NOT EXCEED AN AMOUNT EQUAL TO THE AMOUNT OF
ADMINISTRATIVE EXPENSES PAID BY THE BOARD OF TRUSTEES UNDER § 21-315(C) OF
THIS ARTICLE MULTIPLIED BY A FRACTION:

1.       THE NUMERATOR OF WHICH EQUALS THE TOTAL ASSETS
OF THE POSTRETIREMENT HEALTH BENEFITS TRUST FUND; AND

2.       THE DENOMINATOR OF WHICH EQUALS THE COMBINED
TOTAL ASSETS OF THE SEVERAL SYSTEMS AND THE POSTRETIREMENT HEALTH
BENEFITS TRUST FUND.

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