HARRY HUGHES, Governor

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In accordance with Article II, Section 17 of the
Maryland Constitution, I have today vetoed Senate Bill 643.

This bill prohibits the Maryland State Lottery from
requiring a certified check for the transfer of proceeds
from the sale of lottery tickets to the lottery Agency, with
certain exceptions.

The present procedure, requiring the use of certified
checks, was adopted by the Director and the Commission some
years ago due to the number of checks being returned to the
Agency marked "insufficient funds". The intent of the bill
is to facilitate the handling of proceeds from the sale of
lottery tickets so as not to place an inordinate burden on
the Daily Lottery Sales Agents. This is both understandable
and reasonable. I also understand and agree that not all
agents should have to bear the extra burden of using
certified checks. However, I also am of the view that the
Director and Commission need a reasonably flexible mechanism
for dealing with returned checks,

The Director and Commission have agreed to place in the
Agent Agreement for Sale of Daily Lottery Tickets, a new
provision which states the following:

That the Director may require Daily Lottery Sales
Agents to transfer net proceeds from the sale of
lottery tickets to the Agency by certified check if:

1.    The Agent has not been a Daily Agent
for six months; or

2.    The Agent has not provided the
Lottery with an acceptable financial
statement; or

3.    The Agent has on previous occasion
transferred such proceeds by means of
a check for which there were
insufficient funds; or

4.    The Agent has not had a check
available at the scheduled time of
collector pick—up more than once in
the past six months.

In my judgment, the implementation of this procedure
would accomplish the worthwhile objectives of Senate Bill
643 while affording the administrative flexibility desirable
to meet changing circumstances.

For
643.

these

reasons, I have decided to veto Senate Bill