2548                                       LAWS OF MARYLAND                                 Ch. 871

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1978.

Approved May 29, 1978.

CHAPTER 872

(House Bill 348)

AN ACT concerning

State Contracts - Bond

FOR the purpose of prohibiting a State agency from requiring
that bid or, performance, and payment bonds be posted
for certain contracts in certain cases and subject to
certain exceptions.

BY adding to

Article 41 - Governor - Executive and Administrative

Departments
Section 231M-2
Annotated Code of Maryland
(1971 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be repealed, amended, or enacted to read as follows: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 41 - Governor - Executive and
Administrative Departments

231M-2.

NOTWITHSTANDING ANY PROVISIONS OF SECTION 8-614(E) OF

THE TRANSPORTATION ARTICLE OR SECTION 9-113 OF THE REAL

PROPERTY ARTICLE TO THE CONTRARY, NO AGENCY OF THE STATE
INVOLVED IN PURCHASING GOODS AND SERVICES, INCLUDING
CONSTRUCTION AND REPAIR CONTRACTS, MAY REQUIRE BID OR,

PERFORMANCE, AND PAYMENT BONDS TO BE POSTED IF THE CONTRACT

PRICE IS LESS THAN $100,000 $25,000, UNLESS SUCH BONDS ARE
REQUIRED BY FEDERAL LAW OR REGULATION OR AS A CONDITION TO
FEDERAL ASSISTANCE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1978.

Approved May 29, 1978.