![[photo, Goldstein Treasury Building, 80 Calvert St., Annapolis, Maryland]](/msa/mdmanual/08conoff/images/i002925b.jpg)
The office of Treasurer originated in the late seventeenth century. Under crown rule, a treasurer of the Eastern Shore and a treasurer of the Western Shore were appointed by the General Assembly with the approval of the governor and council. When proprietary rule returned in 1715, the governor appointed the two treasurers. The dual offices continued under the new State government created at the start of the American Revolution.
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. This involves the receipt, disbursement, safekeeping, and investment of the funds of the State Treasury. 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.
![[photo, Goldstein Treasury Building, Annapolis, Maryland]](/msa/mdmanual/08conoff/images/treasury/1198-1-4473b.jpg)
Under authority delegated by the Board of Public Works, the State Treasurer is responsible for the procurement of all financial and insurance services of the State. In this regard, the Treasurer competitively procures services concerned with banking, investment, safekeeping, financial advice, debt underwriting, insurance protection, claims adjusting, investigations, and some printing (Const., Art. VI, secs. 1-6; Code State Government Article, secs. 5-101 through 5-107, 12-104).
As of June 1, 2023, the General Assembly authorized the State Treasurer to oversee the Maryland 529 Program (Chapter 113, Acts of 2023; Code Education Article, secs. 18-901 through 18-917).
Goldstein Treasury Building, Annapolis, Maryland, July 2010. Photo by Diane F. Evartt.
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.
To the State Treasurer's Office, the Division provides local area networking, internet access, e-mail, application development, website updates, software evaluation, and data communications.
![[photo, Entrance, 217 East Redwood St., Baltimore, Maryland]](/msa/mdmanual/12dod/images/1198-1-07296b.jpg)
The State Treasurer, through the Maryland 529 Division, administers the Maryland 529 Program.
In 1997, the Maryland 529 Program originated as the Maryland Higher Education Investment Program Board, which was authorized by the General Assembly (Chapters 110, 111, Acts of 1997). It was renamed the Maryland Higher Education Investment Board in July 2000 (Chapter 494, Acts of 2000), and the College Savings Plans of Maryland Board in July 2003 (Chapter 382, Acts of 2003). The Board reformed as the Maryland 529 Board in July 2016 (Chapter 39, Acts of 2016). The Board was abolished by the General Assembly as of June 1, 2023 (Chapter 113, Acts of 2023).
Formerly, the Maryland 529 Board administered qualified college tuition savings programs created by the U.S. Congress in 1996, and savings accounts used to fund specific expenses for eligible people with disabilities created in 2014. The programs were named after section 529 of the Internal Revenue Code which provides for them.
Entrance, 217 East Redwood St., Baltimore, Maryland, August 2015. Photo by Diane F. Evartt.
On June 1, 2023, the General Assembly authorized the State Treasurer to oversee the Maryland Achieving a Better Life Experience (ABLE) Program; and the Maryland 529 Program, which consists of the Maryland Senator Edward J. Kasemeyer Prepaid College Trust, the Maryland Senator Edward J. Kasemeyer College Investment Plan, and the Maryland Broker-Dealer College Investment Plan (Chapter 113, Acts of 2023). At that time, the Maryland 529 Division was formed within the Office of State Treasurer.
To encourage families to save for future college expenses and reduce their dependence on student loans and other forms of debt, the Maryland 529 was established. The plans function under the federal Internal Revenue Code (Section 529), which allows states to establish and administer tax-deferred college savings plans. Also, State laws provide certain income tax benefits for Maryland taxpayers who choose to participate in the Maryland 529 (Code Tax-General Article, sec. 10-208).
Maryland Senator Edward J. Kasemeyer Prepaid College Trust. The Maryland Prepaid College Trust was established by the Board in 1997 as the Maryland Prepaid College Trust to hold investments. It assumed its present name in June 2018. Under the Trust, Maryland and District of Columbia residents at the time of enrollment in the plan may prepay tuition for a college education. Parents, grandparents, or other interested parties may purchase a contract for an individual based on current tuition and fee amounts. Payments are combined with those of other account holders and are invested to fund future benefit payments. Investments in the Maryland Senator Edward J. Kasemeyer Prepaid College Trust are guaranteed by State law.
At Maryland public colleges and universities, the Trust is designed to pay the equivalent of the in-state student tuition and mandatory fees. Benefits also may be applied to the tuition costs at any accredited private or out-of-state college (Code Education Article, Sec. 18-1903).
Children from birth through 12th grade may participate, but accounts must be open for at least three years before tuition benefits can be paid. Each year, there is an enrollment period although accounts for newborns may be opened at any time. The current enrollment period runs through May 31, 2020.
Maryland Senator Edward J. Kasemeyer College Investment Plan. The Maryland College Investment Plan formed in July 2000 as the Maryland College Investment Plan. It received its present name in June 2018 (Chapter 494, Acts of 2000; Chapter 419, Acts of 2018). To save for college on behalf of a qualified designated beneficiary, contributors establish an investment account tied to mutual fund investment portfolios. The Plan is managed and distributed professionally through a contract with the State and any investment earnings in an account are exempt from State and federal tax if used for tuition, housing, books, and other eligible higher education expenses. Maryland residents and nonresidents of any age may participate in the Plan. Enrollment is open year round (Code Education Article, secs. 18-19A-01 through 18-19A-07).
Maryland Broker-Dealer College Investment Plan. Though authorized effective October 1, 2008, this plan has not yet been implemented (Chapter 548, Acts of 2008). The Maryland Broker-Dealer College Investment Plan would allow Maryland families to invest in an investment account, using private investment advisors. However, the Plan is not yet operating, since the Board has not chosen to offer this option (Code Education Article, secs. 18-19B-01 through 18-19B-08).
Maryland Achieving a Better Life Experience (ABLE) Program. In July 2016, the Maryland Achieving a Better Life Experience (ABLE) Program
was established (Chapter 39, Acts of 2016). Also in July 2016, the Maryland 529 Board was assigned to establish, administer, manage, and promote the ABLE Program. For disabled individuals and their families, the federal Stephen Beck, Jr. Achieving a Better Life Experience Act of 2014 authorizes states to establish such programs (Public Law 113-295). Maryland's ABLE Program allows individuals with disabilities and their families to contribute up to $15,000 per year for disability-related expenses in tax-exempt accounts. Eligibility and benefits under federal and State means-tested programs, such as Medicaid, housing and food assistance, are not altered by the balance in the account. The Program opened enrollment in November 2017 (Code Education Article, secs. 18-19C-01 through 18-19C-10).
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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