1610                             LAWS OF MARYLAND                        [CH. 735

(t) Exemptions from subtitle.

The provisions of this subtitle shall not apply to the practice
of general contracting or sub-contracting as defined in subpara-
graph (1) of subsection (b) by any authorized representative or
representatives of the United States of America or any of its in-
strumentalities or agencies, the State of Maryland or its instru-
mentalities, agencies, or institutions, or any county, city, town or
any other political subdivision of any district, zone, local subdivi-
sion or area in, the State of Maryland or the construction, recon-
struction, repair or improvement of any highway or bridge, con-
structed, reconstructed or repaired by the State Roads Commission.

(u) Penalty for violation of this subtitle.

(1)    Any person not being duly authorized who shall contract
or bid upon the construction of any of the projects or works or any
part thereof enumerated in subsection (b) (1), without having first
complied with the provisions thereof, or who shall attempt to practice
general contracting or sub-contracting in this State except as pro-
vided for in this subtitle, and any person presenting or attempting
to file as his own the registration certificate of another or who shall
give false or forged evidence of any kind to the Inspector in main-
taining the registration or who falsely shall impersonate another or
who shall use an expired or revoked certificate, and any awarding
authority, who knowingly receives or considers a bid from anyone not
properly registered under this subtitle, shall be deemed guilty of a
misdemeanor.

(2)    No person shall be entitled to assert this subsection as a
defense to any action at law or suit in equity unless such persons
shall first affirmatively prove that notice of this subsection, prior
to or upon execution of the contract, has been given to the party
who seeks to recover from such person, provided that nothing herein
contained shall affect any contract entered into prior to June 1,
1967.

(v) Defraying expenses of prosecution.

The State shall provide such funds as the Inspector may require
to defray the expense, legal or otherwise, in the prosecution of any
violations of the subtitle.

(w) Investigation of violations.

All alleged violations of this subtitle when reported to the In-
spector and when duly substantiated by affidavits, or other satis-
factory evidence, shall be investigated by him. The Inspector may
employ a special investigator who shall be paid out of the the funds
appropriated to the Comptroller SUCH NUMBER OF SPECIAL IN-
VESTIGATORS AS THE INSPECTOR DEEMS NECESSARY OR
AS MAY BE PROVIDED IN THE ANNUAL STATE BUDGET. If
the evidence of violations is substantiated, the inspector shall report
the same to the Attorney General or State's Attorney of the political
subdivision in which the violations are alleged to have occurred.

(x) Prosecutions by attorneys for the State of Maryland.

Upon receiving reports together with proper evidence, from the
Inspector that any of the provisions of this subtitle have been
violated, the Attorney General or the appropriate State's Attorney