This chapter requires local government units to adopt policies to be followed when investing public money and submitting the adopted policies to the State Treasurer for acceptance. In this chapter, the following terms have the meanings indicated. Terms Defined. “Accepted policy” means an adopted policy that has been accepted by the State Treasurer in accordance with Regulation .06 of this chapter. “Adopted policy” means a local government investment policy which has been properly adopted by the local government unit in accordance with the requirements of local law, Regulation .05 of this chapter, and COMAR 24.03.04. “Board of education” has the meaning stated in Education Article, §1-101(d), Annotated Code of Maryland. “Board of library trustees” means those boards established pursuant to Education Article, Title 23, Subtitle 3, Annotated Code of Maryland. “Community college” means a community college other than the Baltimore City Community College and a regional community college established under Education Article, Title 16, Subtitle 2, Annotated Code of Maryland. “Financial officer” has the meaning stated in Local Government Article, §17-201, Annotated Code of Maryland. “GFOA” means the Government Finance Officers Association of the United States and Canada. “Governing body” has the meaning stated in Local Government Article, §1-101, Annotated Code of Maryland. “Local government unit” means a county, a municipality, a community college, the Washington Suburban Sanitary Commission, a public corporation authorized to issue debt, and an authority of the State authorized to issue debt. “Marked to market” means the price at which a security is trading. “Money market mutual fund” means a mutual fund registered with the Securities and Exchange Commission under the Investment Company Act of 1940, 15 U.S.C. §80a-1 et seq., as amended, and operated in accordance with Rule 2A-7 promulgated under the Investment Company Act of 1940, 17 CFR §270.2A-7, as amended. “Public money” has the meaning stated in COMAR 25.03.04. “State Treasurer” means the Treasurer of Maryland. The governing body of each local government unit shall adopt by resolution a written investment policy that: Complies with State and local law, including: State Finance and Procurement Article, §6-222, Annotated Code of Maryland; Local Government Article, §17-201 et seq., Annotated Code of Maryland; and COMAR 25.03.04; and Meets or exceeds standards published by nationally recognized financial management organizations recognized by the State Treasurer. The State Treasurer recognizes the standards published by the following nationally recognized financial management organizations: GFOA; and Association of Public Treasurers of the United States and Canada. The board of education and the board of library trustees of a county need not adopt a written investment policy but shall invest in compliance with the accepted policy of the county. At a minimum, each adopted policy shall: Allow local government units to invest in only those types of securities authorized by: State Finance and Procurement Article, §6-222(a), Annotated Code of Maryland; Local Government Article, §17-201 et seq., Annotated Code of Maryland; and; COMAR 25.03.04; Require that investments made by local government units comply with the standards of COMAR 25.03.04; Prohibit the borrowing of money for the sole purpose of investment; and Require that the local government unit’s financial officer not invest public money of the local government unit in a manner inconsistent with its adopted policy. A local government unit may include additional requirements in its adopted policy. The governing body of each local government unit shall adopt by resolution a written local government investment policy that: Complies with the requirements of local and State law; Satisfies the requirements of Regulations .03 and .04 of this chapter and COMAR 25.03.04; and Meets the individual needs of the local government unit. Within 30 days following adoption, the governing body of each local government unit shall send a certified copy of its adopted policy and its adopting resolution to the State Treasurer for acceptance. Upon receipt, the State Treasurer shall have each adopted policy checked for compliance with this chapter and COMAR 25.03.04, and shall either: Notify the governing body of the local government unit that its adopted policy has been accepted; or Return the adopted policy to the governing body of the local government unit for revision and readoption. An adopted policy returned by the State Treasurer shall be: Revised promptly; Readopted by the governing body of the local government unit in accordance with Regulation .05A of this chapter; and Resubmitted to the State Treasurer in accordance with Regulation .05B of this chapter. An accepted policy may be amended by submitting to the State Treasurer: The proposed language of the amendment; A certified copy of the adopting resolution of the local government unit; and A certified copy of the revised local government investment policy which shall contain the amendment. The State Treasurer shall consider each amendment in accordance with the provisions of Regulation .06 of this chapter. The State Treasurer shall notify a local government unit to seek compliance if the: Local government unit has not sent the State Treasurer an adopted policy in accordance with Regulation .05B of this chapter; State Treasurer determines that the adopted policy is not an accepted policy in accordance with Regulation .06A of this chapter. State Treasurer determines that an accepted policy is no longer in compliance with the provisions of: State Finance and Procurement Article, §6-222, Annotated Code of Maryland; Local Government Article, §17-201 et seq., Annotated Code of Maryland; or COMAR 25.03.04. Local Government Article, Title 17, Subtitle 2; State Finance and Procurement Article, §6-222; Annotated Code of Maryland Effective date: Regulations .01—.09 adopted as an emergency provision effective August 1, 1995 (22:17 Md. R. 1310); emergency status expired February 1, 1996 Regulations .01—.09 adopted effective February 26, 1996 (23:4 Md. R. 274) Regulation .01 amended as an emergency provision effective April 25, 2024 (51:11 Md. R. 577); emergency status expired October 22, 2024 Regulation .01 amended effective April 28, 2025 (52:8 Md. R. 361) Regulation .02B amended as an emergency provision effective April 25, 2024 (51:11 Md. R. 577); emergency status expired October 22, 2024 Regulation .02B amended effective April 28, 2025 (52:8 Md. R. 361) Regulation .03A, B amended as an emergency provision effective April 25, 2024 (51:11 Md. R. 577); emergency status expired October 22, 2024 Regulation .03 amended effective April 28, 2025 (52:8 Md. R. 361) Regulation .04A amended as an emergency provision effective April 25, 2024 (51:11 Md. R. 577); emergency status expired October 22, 2024 Regulation .04C repealed as an emergency provision effective April 25, 2024 (51:11 Md. R. 577); emergency status expired October 22, 2024 Regulation .04A, C amended effective April 28, 2025 (52:8 Md. R. 361) Regulation .05A amended as an emergency provision effective April 25, 2024 (51:11 Md. R. 577); emergency status expired October 22, 2024 Regulation .05A amended effective April 28, 2025 (52:8 Md. R. 361) Regulation .06A amended as an emergency provision effective April 25, 2024 (51:11 Md. R. 577); emergency status expired October 22, 2024 Regulation .06A amended effective April 28, 2025 (52:8 Md. R. 361) Regulation .08A amended effective December 14, 1998 (25:25 Md. R. 1835) Regulation .08 repealed effective February 19, 2001 (28:3 Md. R. 207) Regulation .09 amended effective February 19, 2001 (28:3 Md. R. 207) Regulation .09 amended as an emergency provision effective April 25, 2024 (51:11 Md. R. 577); emergency status expired October 22, 2024 Regulation .09 amended effective April 28, 2025 (52:8 Md. R. 361)