THEODORE R. MCKELDIN, GOVERNOR 521

CHAPTER 279
(Senate Bill 325)

AN ACT to add five new sections to Article 78A of the
Annotated Code of Maryland (1951 Edition), title
"Public Works", sub-title "Board of Public Works'', said
new sections to follow immediately after Section 1 and
to be known as Sections 1A, 1B, 1C, 1D, and 1E, pro-
viding for the expenditure of revenue derived from sale
of State bonds for capital improvements; application of
excess funds to debt service; time limit on authoriza-
tion of bonds and project construction; and temporary
exceptions allowable by Board of Public Works.

SECTION 1. Be it enacted by the General Assembly of Maryland,
That five new sections be and they are hereby added to
Article 78A of the Annotated Code of Maryland (1951
Edition), title "Public Works", sub-title "Board of Public
Works", said new sections to be known as 1A, 1B, 1C, 1D,
and 1E, to follow immediately after Section 1 thereof and
to read as follows:

1A. Monies derived from the sale of State Construc-
tion Bonds shall be used only for capital improvements
and for no other purpose. In determining whether an
expenditure represents a capital improvement, the Board
will be guided by the following principle: The useful life
of the improvement shall be at least equal to the life of
the bonds by which it is financed.

1B. All unexpended funds remaining from completed
projects authorized under the General Construction Loan
of 1953, and under all General Construction Loans author-
ized subsequently, shall be applied to reduce the outstand-
ing bonded indebtedness of the State, within one year
after the date of the final acceptance of the project by the
State.

1C. Such authorization shall be automatically termi-
nated if actual work on the particular project for which
a State bond issue has been authorized by the General
Assembly is not commenced within five (5) years from the
date of authorization.

——————

EXPLANATION: Italics indicate new matter added to existing law.

[Brackets] indicate matter stricken from existing law.
CAPITALS indicate amendments to bill.
Strike out indicates matter stricken out of bill.