WILLIAM DONALD SCHAEFER, Governor
Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 386.

This bill generally relates to new home warranty security plans and warranties to be
provided by builders of new homes.

House Bill 511, which was passed by the General Assembly and signed by me on May 2,
1990, accomplishes the same purpose. Therefore, it is not necessary for me to sign
Senate Bill 386.

Sincerely,

William Donald Schaefer

Governor

Senate Bill No. 386

AN ACT concerning

Real Property - Licensing and Regulation - New Home Warranties

FOR the purpose of requiring new home builders to make certain disclosures to
purchasers and owners of new homes; requiring an acknowledgment by the
purchaser under certain, circumstances; allowing certain purchasers who have
made the acknowledgment to rescind the contract within a certain number of
days; establishing the required provisions and permitted exclusions of new home
warranty coverage; requiring builders who participate in warranty security plans to
furnish certain information and provide a new home with a warranty under certain
circumstances; allowing purchasers the option of waiving warranty coverage in
certain circumstances; providing that certain actions will constitute a material
breach of the contract; providing that a new home warranty benefits a successor in
title to the owner under certain circumstances; requiring builders of new homes
with a warranty to provide purchasers with a certain notice incorporated into the
contract; establishing certain requirements for warranty security plans and -for
approval of the plans by the Secretary of Licensing and Regulation; establishing
certain requirements for new home warranty security plans; permitting the
Secretary of Licensing and Regulation to revoke or suspend approval of a new
home warranty security plan under certain circumstances; providing that
purchasers who do not wish warranty coverage must make an affirmative waiver;
allowing purchasers to rescind the waiver under certain circumstances; stating that
warranties provided for under this Act are in addition to express or implied
warranties otherwise provided by law or agreement; providing that a violation of
this Act is an unfair and deceptive trade practice; providing for certain exceptions
to the provisions of this Act; imposing a certain criminal penalty; extending the
expiration period of implied warranties for structural defects; providing for a
delayed effective date; and generally relating to new home warranty security plans
and warranties to be provided by builders of new homes.

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