984                              Laws of Maryland                      [Ch. 444

of the grounds for which the funeral establishment license was
suspended or revoked. Provided, however, that no funeral establish-
ment license issued pursuant to the provisions of this subtitle will
be suspended or revoked because of a violation of this subtitle by
an employee of an establishment, unless this employee has a pro-
prietary interest in the business conducted from the establishment.

     Sec. 2. And be it further enacted, That this Act is hereby de-

clared to be an emergency measure and necessary for the immediate
preservation of the public health and safety and having been passed
by yea and nay vote supported by three-fifths of all the members
elected to each of the two houses of the General Assembly, the same
shall take effect from the date of its passage.

SEC. 2. AND BE IT FURTHER ENACTED, THAT THIS ACT
SHALL TAKE EFFECT JULY 1, 1971.

Approved May 17, 1971.

CHAPTER 444
(Senate Bill 311)

AN ACT to add new Section 102 to Article 21 of the Annotated
Code of Maryland (1966 Replacement Volume), title "Conveyanc-
ing," subtitle "Miscellaneous," to follow immediately after Sec-
tion 101 thereof, to define "lease option agreement," and require
a statement that such agreements are not contracts of sale or
purchase. A CONTRACT TO BUY.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Section 102 be and it is hereby added to Article 21 of
the Annotated Code of Maryland (1966 Replacement Volume), title
"Conveyancing," subtitle "Miscellaneous," to follow immediately
after Section 101 thereof, and to read as follows:

102.

(a)  A lease option agreement, for the purposes of this section,
shall be defined as any lease agreement which contains a clause
that confers on the lessee some power, either qualified or unqualified,
to purchase the lessor's interest in the real property.

(b)  No lease option purchase of IMPROVED residential real
property with or without a ground rent, EXECUTED AFTER THE
EFFECTIVE DATE OF THIS ACT, shall be valid in this State,
unless it contains a clear statement that it is a contract of sale
or purchase STATEMENT IN CAPITAL LETTERS: THIS IS NOT
A CONTRACT TO BUY and a clear statement of its purpose and
effect with respect to the ultimate purchase of the property which
is the subject of the lease option. The form of the statement shall
be as prescribed by the Real Estate Commission of Maryland.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1971.

Approved May 17, 1971.