VETOES

This bill clarifies that contractors or subcontractors who do work with the State are
entitled to prompt payment as specified in the contract.

Senate Bill 621 which was passed by the General Assembly and signed by me on May 29,
1990, accomplishes the same purpose. Therefore, it is not necessary for me to sign
House Bill 709.

Sincerely,

William Donald Schaefer

Governor

House Bill No. 709

AN ACT concerning

Real Property - Construction Contracts

FOR the purpose of requiring certain persons who owe undisputed amounts under
certain construction contracts to make certain payments within certain time
periods; providing that the provisions of this Act do affect certain rights and apply
to certain transactions and contracts; and generally relating to construction
contracts.

BY repealing and reenacting, with amendments,
Article - Real Property
Section 9-302 and 9-304
Annotated Code of Maryland
(1988 Replacement Volume and 1989 Supplement)

Preamble

WHEREAS, The Maryland General Assembly passed and the Governor enacted
Chapter 553 of the Acts of the General Assembly of 1989, entitled Real Property -
Construction Contracts; and

WHEREAS, The Maryland General Assembly is concerned that, because of the
placement within the law, the exceptions to the law could be construed as applying to a
contract between a contractor and a subcontractor; and

WHEREAS, It was the intent of the General Assembly that the exceptions to the
law should only apply to a contract between a contractor and the State, a county, a
municipal corporation, a board of education, or a public authority or instrumentality;
and

I WHEREAS, The General Assembly desires to clarify the original intent of the
legislation by changing the placement of the exceptions within the law; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

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