3152                                                VETOES

This bill authorizes the issuance of $100,000   of

State general obligation bonds to finance a study    to

determine the most appropriate method of mining coal   in

Western Maryland and converting such coal         to
environmentally acceptable fuel.

Certainly, such a study is a most worthwhile
project. I have been advised, however, by the Secretary
of State Planning that, based upon the President's 1975
budget proposals to the Congress, it is likely that
federal funds will become available to finance the study.

In addition, I think it would be unwise to depart
from the established State policy of not financing study
projects with bond funds. The State's bonded
indebtedness must be carefully limited to its essential
purpose, the financing of necessary capital construction,
if the State is to maintain its excellent credit rating.

For these reasons, I have decided to veto House Bill
1487.

Sincerely,

/s/ Marvin Mandel

Governor

House Bill No. 1490 - Water Quality Loan
AN ACT concerning

Water Quality Loan of 1974

FOR the purpose of authorizing the creation of a State
debt in the aggregate amount of Fifty Million
Dollars ($50,000,000), the proceeds thereof to be
used to provide State grants to assist in the
constructing and equipping of sewage treatment
plants and related facilities and in the
construction, extension, and improvement of existing
public sanitary sewer systems; establishing
conditions of eligibility for such State grants and
limitations thereon; providing generally for the
issue and sale of bonds evidencing such loan, and
providing, under certain circumstances, that general
funds be used to pay the principal and interest on
said bonds; repealing and re—enacting, with
amendments, Sections 5(b) and 5(c) of Chapter 445 of
the Acts of 1968, as Section 5 (b) was amended by
Chapter 653 of the Acts of 1969, by Chapter 246 of
the Acts of 1970, by Chapter 242 of the Acts of
1972, and by Chapter 55 of the Acts of 1973, and as