H.B. 429

VETOES

1.       any inspection fee;

2.       the total amount of the policy fee;

3.       the premium tax on the policy;

4.       any financial interest in the person performing the
inspection, if applicable; and

5.       whether the surplus lines broker will receive
compensation from the person that performs the inspection; and

(ii) notify the prospective insured of the option to obtain the
inspection from another person who meets the requirements of or is approved by the
surplus lines insurer.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2004.

May 25, 2004

The Honorable Michael E. Busch
Speaker of the House
State House
Annapolis, MD 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, today I have
vetoed House Bill 429 - State Government - Administrative Procedure Act - Proposed
Regulations.

House Bill 429 requires all Executive Branch agencies to submit a proposed
regulation to the Department of Legislative Services in addition to the Joint
Committee on Administrative, Executive, and Legislative Review (AELR) at least 15
days before the proposed regulation is submitted to the Maryland Register for
publication. The amount of time an executive agency must wait prior to adopting a
proposed regulation, subsequent to the AELR Committee's request for an additional
period of review, is extended by 30 days from the seventy-fifth to the one-hundred
and fifth day following the initial publication of the regulation in the Maryland
Register. House Bill 429 also alters the process by which the AELR Committee
approves an emergency regulation. The provisions of the bill enable the presiding
chairman or co-chairman to approve a proposed emergency regulation only when the
committee staff tries, but is unable to contact a majority of committee members in a
timely manner and immediate adoption is necessary to protect the public health or
safety.

I have vetoed House Bill 429 because it significantly alters the State's regulatory
review process in several ways that potentially undermine the authority of the
Executive Branch. The Administrative Procedure Act in Maryland establishes the
process for adopting proposed regulations. The current process provides the
legislature, through the AELR Committee, a means for overseeing the issuance of

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