Marvin Mandel, Governor                        1927

Article I, Section 10, of the United States Constitution prohibits
the States from passing laws which impair the obligation of
contracts. A contract is impaired when the legislation in ques-
tion deprives one party to the contract of the benefits due him
under the contract. See Northern Pacific RR. Co. v. Minnesota,
208 U.S. 583 (1908). It could be argued that House Bill 1090,
if it is construed to require the Port Administration to pay for
marine fire protection, impairs the obligation of the contract by
depriving the Port Authority of the benefit of the free marine
fire protection which it was to receive under the lease."

"Finally, a question arises as to whether there can be an
impairment of contract when the party whose rights have been
impaired is an instrumentality of the very government which
has enacted the impairing legislation. It certainly could be
argued that the State and its instrumentality, the Authority,
are one and therefore that the State, by the legislation in ques-
tion, has waived its rights to the benefits due under the lease.
It has been held in somewhat analogous situations that a State
can impair contracts of a municipal corporation to which it has
granted a franchise. See McQuillen, Municipal Corporations,
Sections 19.50 and 19.51. On the other hand, it could be argued
that the Authority, while a State instrumentality, is, in some
respects, a quasi-independent agency and thus that a waiver
of its contract rights by the State is not effective as to the
Authority."

In light of the foregoing. I have decided to veto House Bill 1090.

Sincerely,

/s/ Marvin Mandel,

Governor.

House Bill No. 1120—Cecil County Trial Magistrates

AN ACT to repeal and re-enact, with amendments, Section 108(7)
of Article 52 of the Annotated Code of Maryland (1970 Supplement),
title, "Justices of the Peace," subtitle "Trial Magistrates System," to
provide for an increase in the salaries of trial magistrates in Cecil
County, and to provide for a substitute trial magistrate and his
compensation.

May 28, 1971.

Honorable Thomas Hunter Lowe
Speaker of the House of Delegates
State House
Annapolis, Maryland 21404

Dear Mr. Speaker:

In accordance with Article II, Section 17, of the Maryland Con-
stitution, I have today vetoed House Bill 1120.

This bill provides for an increase in the salaries of trial magis-
trates in Cecil County and for a substitute trial magistrate and his
compensation.