MARVIN MANDEL, Governor                             1181

BY adding to

Article 25A — Chartered Counties of Maryland

Section 1A

Annotated Code of Maryland

(1973 Replacement Volume and 1975 Supplement)

BY adding to

Article 25B — Home Rule for Code Counties

Section 13A

Annotated Code of Maryland

(1973 Replacement Volume and 1975 Supplement)

WHEREAS, The Court of Appeals of Maryland has held
that, as a result of the common law doctrine of sovereign
immunity, a suit cannot be maintained against the State
or its political subdivisions, unless authorized by the
Legislature, and funds are available to satisfy any
judgment rendered; and

WHEREAS, The Court of Appeals further has stated
that any change in the doctrine of sovereign immunity
must be made by the Legislature; and

WHEREAS, Maryland is one of the few States which has
not yet abolished or modified the effect of this common
law doctrine; and

WHEREAS, The Governor's Commission to Study
Sovereign Immunity has thoroughly studied the issues
presented by an abrogation or modification of the
doctrine in actions in contract and has thoroughly
considered the effects of retaining this defense; and

WHEREAS, The Governor's Commission to Study
Sovereign Immunity believes that there exists a moral
obligation on the part of any contracting party,
including the State or its political subdivisions, to
fulfill the obligations of a contract; and

WHEREAS, The Governor's Commission to Study
Sovereign Immunity has concluded that the doctrine is no
longer appropriate to actions on certain contracts, and
that the effects of this doctrine should be limited by
legislative action; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Section 10A be and it is hereby added
to Article 41 — Governor — Executive and Administrative
Departments, of the Annotated Code of Maryland (1971
Replacement Volume and 1975 Supplement) to read as
follows:

Article 41 — Governor — Executive and Administrative

Departments