BLAIR LEE III, Acting Governor

1047

FOR the purpose of authorizing certain employers to      deposit
cash or negotiable bonds with the Comptroller in lieu

of the surety bond which may be required to be    filed in

certain cases by the Comptroller; providing      a limit

upon the aggregate liability of a surety who    issues a

bond; and requiring the cash deposit or market    value of

the negotiable bonds to be not less than the      required
sum of a surety bond otherwise required.

BY repealing and reenacting, with amendments,

Article 81 — Revenue and Taxes

Section 312(p)

Annotated Code of Maryland

(1975 Replacement Volume and 1977 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 81 — Revenue and Taxes

312.

(p) (1) In order to protect the revenue to be
obtained under the withholding tax provisions of this
subtitle, the Comptroller, or his authorized agent, may
require an out—of—state employer to file a bond to secure
the payment of any tax or penalty due or which may become
due from the employer. The bond shall be issued by a surety
company authorized to do business in this State and approved
by the State Insurance Commissioner as to solvency and
responsibility. The amount of the bond shall be determined
by the Comptroller or his authorized agent. Written notice
shall be given to the employer that a bond is required, and
the notice shall specify the amount of the bond. Within
five days after notice is given by the Comptroller or his
agent, the employer shall file the bond with the
Comptroller's office, unless the employer, within five days
after notice is given, requests a hearing before the
Comptroller. The employer's request shall be in writing.
At the hearing before the Comptroller or his agent, the
necessity, propriety, and amount of the bond shall be
determined. The Comptroller's determination is final, and
the employer shall comply within 15 days after written
notice of the determination is given.

(2)    THE AGGREGATE LIABILITY OF THE SURETY MAY
NOT EXCEED THE PENAL SUM OF THIS BOND.

(3)    NEGOTIABLE BONDS OF THE UNITED STATES OR A
CASH DEPOSIT MAY BE FILED IN LIEU OF A SURETY BOND REQUIRED
BY THIS SECTION. THE MARKET VALUE OF THE BONDS OR THE CASH
DEPOSIT MAY NOT BE LESS THAN THE REQUIRED SUM OF THE SURETY
BOND.