1967]                                   OF THE SENATE                                       33

the agent placing the insurance would have more to say than the
person lending the money on the property. As a practical matter
it would seem that this would have the effect of further restricting an
already tight money market in Maryland."

Moreover, the Commissioner, in subsequently informing me
that he was not consulted, nor were his views requested, on the bill,
raised the further question that the measure is subject to an inter-
pretation that might permit placement of insurance with companies
not authorized to do business in Maryland.

Similar objections have been voiced by the Division of Invest-
ments of the State Retirement Systems and the State Department of
Building, Savings and Loan Associations.

I am strongly opposed to the practice that I am certain the
proponents of this bill feel it is designed to eliminate—requiring a
borrower or purchaser to obtain insurance from a particular agent or
company—and will work to strengthen laws for that purpose.

Nevertheless, I feel just as strongly that this bill is not an
adequate answer to the problem. And since we have now a provision
that many deem adequate to cover the situation, there seems to be
little harm in deferring action until something fair both to the
borrower and the lender can be formulated, with the active parti-
cipation of the Office of the Insurance Commissioner.

For these reasons, I am compelled to veto this bill.

Sincerely yours,

(s) Spiro T. Agnew,

Governor.

Senate Bill No. 637—By Senator G. Hughes.

AN ACT to repeal Section 228 of Article 48A of the Annotated
Code of Maryland, (1964 Replacement Volume), title "Insurance",
subtitle "Unfair Trade Practices", and to re-enact a new Section 228
to stand in the place of the section so repealed and to be under the new
subheading "Coerced and Tie-in Sales Prohibited", to provide that it
shall be unlawful to require any person as a condition to the receipt
of a loan or any other consideration to buy insurance from any given
agent, broker or insurer; to prohibit any insurance transaction or
plan which is tied in with some other consideration; to prohibit the
public solicitation of combination plans, and providing generally for
the free choice of insurance.

The President put the question: shall the bill pass notwithstanding
the objections of the Executive?

The President announced the veto was not sustained by roll call as
follows:

Affirmative

Senators—

Mr. President, Bertier, Bertorelli, Bishop, Brubaker, Clark, Connolly, Conroy, Curran,
Dean, Dorf, Emanuel, Hart, Hodges, Hoyer, Hughes (G.), Hughes (H.), Lapides,
Malkus, Manning, Mitchell, McCourt, McGuirk, Nock, Pine, Schweinhaut, Smelser,
Snyder, Staszak, Staten, Steffey, Steinberg, Stone, Welcome, Wineland.           Total—34

Negative

Senators—

Anderson, Bailey, Finney, Friedler, Gore, Hall, Lee, Steffey.                      Total—8