MARVIN MANDEL, Governor                        1783

Senate Bill No. 332—Contests Promoted by Retail Establishments

An ACT to add new Section 369A to Article 27 of the Annotated
Code of Maryland (1967 Replacement Volume), title "Crimes and
Punishments," subtitle "Lotteries" to follow immediately after
Section 369 thereof, prohibiting the use of any game, contest, lottery
or other scheme BY RETAIL ESTABLISHMENTS to give away
gifts, prizes or gratuities as determined by chance for the purpose
of promoting, furthering or advertising any product or service,
whether or not a purchase is required to participate in such game,
contest, lottery or scheme, and to amend Section 370 of Article 27
to include therein provisions for a penalty for a violation of new
Section 369A.

June 20, 1969.

Honorable William S. James
President of the Senate
State House
Annapolis, Maryland

Dear Mr. President:

In accordance with Article II, Section 17, of the Maryland Con-
stitution, I have today vetoed Senate Bill 332 and am returning it
to you.

This Bill prohibits all retail establishments licensed or regulated
under Article 56 of the Annotated Code of Maryland from using to
promote sales any games or contests whereby persons may receive
gifts, prizes or gratuities as determined by chance.

I am personally opposed to the use of these games by retail
establishments, and I would favor their abolition by legislation in
any segment of retailing where there is a general consensus that
they should be abolished. Thus, when I was Speaker of the House
of Delegates during the 1968 session of the General Assembly, I
voted in favor of legislation prohibiting the use of such games by
service stations. There was then, and still is, a justified belief by
the majority of service station operators that serious abuses have
been associated with the service station games and that they should
be prohibited.

Senate Bill 332, however, goes much further than prohibiting
the use of games by service stations. It prohibits the use of promo-
tional games by all retail establishments regulated or licensed under
Article 56 of the Annotated Code of Maryland. At a hearing before
me on the Bill, no representatives of retail establishments other
than service stations spoke in favor of the Bill. On the contrary,
representatives of department stores, shopping centers and retail
merchants associations all requested that the Bill be vetoed. More-
over, no representatives of consumers testified in favor of the Bill
at the hearing. It would appear that the only sizable group in favor
of the Bill consists of the retail service station operators. However,
the impact of the Bill goes far beyond service station promotional
games.

Another problem with the Senate Bill 332, which is compounded
by the broad scope of the Bill, is that it will place many Maryland
retail merchants at a serious competitive disadvantage. Thus, if
the Bill is signed, Maryland retailers in the Washington Metropolitan