# Local Government (GLG)

## Title 17. Investment by Local Government

### Subtitle 2. Local Government Investment Guidelines

#### Section 17-201

(a) In this subtitle the following words have the meanings indicated.

(b) "Financial officer" means the treasurer or other financial officer of a governmental entity who is responsible for the investment of public funds or the issuance and management of debt of the governmental entity.

(c) "Governing authority" means:

  (1) for Baltimore City, the Baltimore City Board of Estimates;

  (2) for a commission county, the county commissioners;

  (3) for a charter county, as provided by local law, the county council or the county executive and the county council;

  (4) for a code county, the county commissioners;

  (5) for a community college, the board of trustees;

  (6) for a municipality, the body provided by the municipal charter;

  (7) for the Washington Suburban Sanitary Commission, the Commission;

  (8) for a public corporation, the board of directors; and

  (9) for an authority, the board of the authority.

(d)

  (1) Except as provided in paragraph (2) of this subsection, "public money" means any money held by a governmental entity.

  (2) "Public money" does not include money held as part of a pension fund, a fund for other postemployment benefits, as defined in Sec. 17-102(a) of this title, a trust fund account, or a facility closure reserve fund or for self-insurance purposes.

#### Section 17-202

To the extent of any conflict, this subtitle and the local government investment guidelines adopted by the State Treasurer under this subtitle supersede:

(1) any local law, including a charter provision; and

(2) any other public general law.

#### Section 17-203

This subtitle applies to the following governmental entities:

(1) each county;

(2) each municipality;

(3) each community college other than the Baltimore City Community College;

(4) each regional community college established under Title 16, Subtitle 2 of the Education Article;

(5) the Washington Suburban Sanitary Commission;

(6) a public corporation authorized to issue debt; and

(7) an authority of the State authorized to issue debt.

#### Section 17-204

(a)

  (1) After consulting with the governmental entities, the State Treasurer shall adopt by regulation local government investment guidelines to govern the investment of public money by the entities in a manner that:

    (i) facilitates sound cash management;

    (ii) protects the public; and

    (iii) ensures that each entity has access to its public money.

  (2) Prior to adopting regulations that alter the types of investments in which governmental entities may invest public money, the State Treasurer shall consult with the governmental entities.

(b) The local government investment guidelines shall:

  (1) specify the types of investments in which public money may be invested;

  (2) include guidance for the prudent investment of public money based on cash flow projections, income, liquidity, investment ratings, and risk;

  (3) require that investments by a county board of education and a county board of library trustees comply with the local investment policy of the county; and

  (4) prohibit the borrowing of money for the express purpose of investment.

#### Section 17-205

(a) The governing authority of each governmental entity shall adopt by resolution a local investment policy that:

  (1) meets the needs of the governmental entity; and

  (2) is consistent with the local government investment guidelines adopted by the State Treasurer under Sec. 17-204 of this subtitle.

(b) Promptly after the adoption of a local investment policy, the governmental entity shall mail a certified copy to the State Treasurer.

(c) If the State Treasurer determines that the local investment policy is not consistent with the local government investment guidelines adopted by the State Treasurer under Sec. 17-204 of this subtitle:

  (1) the State Treasurer shall notify the governmental entity; and

  (2) the governing authority shall prepare and submit a revised local investment policy that is consistent with the local government investment guidelines.

(d) If the governing authority amends the governmental entity's local investment policy, the governmental entity shall submit the new local investment policy to the State Treasurer in accordance with subsection (b) of this section.

#### Section 17-206

A financial officer may not invest public money of a governmental entity in a manner that is inconsistent with the entity's local investment policy.

#### Section 17-207

(a)

  (1) Each governmental entity shall adopt by resolution, motion, or ordinance a local debt policy that:

    (i) is consistent with the Maryland Constitution and all applicable State and local laws; and

    (ii) meets the needs of the governmental entity.

  (2) Promptly after the adoption of a local debt policy, the governmental entity shall mail a certified copy to the State Treasurer.

  (3) If the State Treasurer determines that the local debt policy is not consistent with the Maryland Constitution or any applicable State or local law:

    (i) the State Treasurer shall notify the governmental entity; and

    (ii) the governmental entity shall prepare and submit a revised local debt policy.

(b) If the governmental entity amends its local debt policy, the governmental entity shall submit its revised policy to the State Treasurer in accordance with subsection (a) of this section.

#### Section 17-208

(a) The State Treasurer shall contact the governmental entity to seek compliance if a governmental entity does not maintain a local investment policy or local debt policy as required by this subtitle.

(b) On request of the State Treasurer, a financial officer shall provide to the State Treasurer, in the format and time frame requested:

  (1) a report of the investment portfolio of the governmental entity; or

  (2) a report of the debt portfolio of the governmental entity in the format required under Sec. 16-103 of this article.

(c) If, after being contacted by the State Treasurer, a governmental entity does not comply with this section, the State Treasurer shall notify the Joint Committee on the Management of Public Funds in writing.

(d) The Joint Committee on the Management of Public Funds may request the Attorney General to seek judicial enforcement of this subtitle against the governmental entity.

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Md. Code Ann., Local Gov't (as displayed at mgaleg.maryland.gov, October 16, 2026)