THEODORE R. McKELDIN, GOVERNOR                  1315

As in the case of the tax on alcoholic beverages, if local taxation is
ultimately sought to be merged with a State tax on a reimbursable
basis, it is reasonable to expect that the rate of county reimbursement
will be pegged at the highest existing level. This would have the
unfortunate result of making the tax higher than it reasonably should
be, or of precluding entirely or unwarrantedly minimizing the possible
State tax. In short, this is a step toward entire pre-emption of the
tobacco tax for local purposes at a widely varied rate. The alternatives
which this bill presents are, in my opinion, unsound from the stand-
point of general State policy, fiscal and otherwise, and I have therefore
vetoed it.

Respectfully,

(s) THEODORE R. MCKELDIN,

Governor
TRMcK/A

House Bill No. 574—Labor Dispute; Unemployment Compensation.

AN ACT to repeal and re-enact, with amendments, Section 5 (e) of
Article 95A of the Annotated Code of Maryland (1951 Edition),
title "Unemployment Compensation", sub-title "Disqualification for
Benefits", relating to unemployment benefits due to persons not
working because of a labor dispute.

May 9, 1955

Honorable John C. Luber

Speaker of the House of Delegates

State House

Annapolis, Maryland

Dear Mr. Speaker:

House Bill 574 purports to amend the Unemployment Compensation
law procedure with respect to disqualification from benefits of persons
not working because of a labor dispute. The amendment would
provide that "a finding of unemployment due to a labor dispute shall
be as a result of a determination by the Board independent of mere
notification".

Existing provisions of the Unemployment Compensation law
provide the procedural machinery for full administrative determina-
tion of this questsion in an orderly manner. The proposed amend-
ment will introduce ambiguity into the existing statutory provisions
and will not in any manner facilitate administration of the law. I
am advised that this amendment might possibly affect the present
right of the Board to withhold payment of benefits in a labor dispute
case, pending an investigation and hearing. Concern is expressed
that it might become necessary to pay benefits for a period of time,
pending determination, and with little or no chance of recovery of
benefits paid if the determination is adverse to the claimant. for
these reasons and in accordance with recommendations of the Em-
ployment Security Department that House Bill 574 not be signed, I
have today vetoed it.

Respctfully,

(s) THEODORE R. MCKELDIN,

Governor
TRMcK:TK