The Constitution of 1776 provided for two State treasurers - the Treasurer of the Eastern Shore, and the Treasurer of the Western Shore - each elected by the House of Delegates (Constitution of 1776, sec. 13). Later, these two offices were consolidated by the General Assembly. For in 1843, the office of Treasurer of the Eastern Shore was abolished, and its duties were assumed by the Treasurer of the Western Shore (Chapter 200, Acts of 1841; Chapter 239, Acts of 1842).
Goldstein Treasury Building, 80 Calvert St., Annapolis, Maryland. April 1999. Photo by Diane P. Frese.
Today, the State Treasurer is chosen by joint ballot of both houses of the General Assembly at the first regular session of the Legislature in each gubernatorial term of office. The State Treasurer thus serves a four-year term coinciding with that of the Governor.
The State Treasurer is responsible for the management and protection of State funds and property. In this connection, the Treasurer selects and manages the depository facilities for State funds, issues or authorizes agents to issue payments of State funds, invests excess funds, safekeeps all State securities and investments, and provides insurance protection against sudden and unanticipated damage to State property or liability of State employees. Moreover, the State Treasurer is custodian of all stocks, bonds, promissory notes, certificates, and other negotiable investment instruments of the State. In addition, the State Treasurer is custodian of all such instruments held for the State Retirement and Pension System, the Maryland Insurance Commissioner, foreign building and homestead associations, the Department of the Environment's Coal Mining Division [Bureau of Mines]; and all collateral pledged as security over deposits of State funds in Maryland banks.
State of Maryland General Obligation Bond issues are planned, prepared, and advertised by the State Treasurer. With the approval of the Board of Public Works, the Treasurer arranges bond sales; prepares the State's Official Statement; receives bids; and arranges settlement, delivery of bonds, and tracking of the proceeds for these General Obligation Bonds. Due to new restrictions by the federal government on income generated through the sale of tax-exempt obligations, the Treasurer most recently has played an increasing role in the administration of the State's capital program. In 1990, the State issued the first Maryland Mini Bonds, which are small denomination capital appreciation bonds. This program is administered by the Treasurer.
Goldstein Treasury Building, Annapolis, Maryland, July 2010. Photo by Diane F. Evartt.
Within the State Treasurer's Office are five divisions: Budget and Administration; Debt Management; Information Technology; Insurance; and Treasury Management.
The Division oversees the State Debt, maintains its credit rating, handles bond sales, and manages the Master Lease Program, which enables State agencies to finance procurement of equipment over a period longer than the twelve-month budget cycle.
The Division provides the State Treasurer's Office with local area networking, internet access, e-mail, application development, website updates, software evaluation, and data communications.
The Treasury Management Division oversees a program primarily oriented to the investment of cash balances which exist between the time of State revenue collection and disbursement. The Division also is concerned with longer term investments, including the redemption of certain bonds, the purchase of 20-year development easements on agricultural land, and the payment of lottery prizes over 19-year periods. In addition, the Division manages the investment of General Obligation bond proceeds, and directs short- and long-term investments of trustee accounts under State agency revenue bond indentures. Interest on these investments accrues to the General Fund unless State law or regulation directs otherwise (Code State Finance & Procurement Article, secs. 6-222 through 6-226).
The State Treasurer is responsible for the deposit and disbursement of State funds (Const., Art. VI, sec. 3). In fulfillment of that obligation, the Treasury Management Division manages the flow of all receipts and disbursements of State funds.
The Committee reviews the activities of the Pool's investment manager, and generally advises the State Treasurer on investment performance. Committee members include representatives of local governments currently investing in the Maryland Local Government Investment Pool, which provides participants with a safe short-term investment for their funds.
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