1010

LAWS OF MARYLAND

Ch. 11

REVISOR'S NOTE: This section is new language derived

without substantive change from former Art. 31, §

20(a) and (b) and, except for the last phrase, the
first sentence of § 19.

In subsection (c) of this section, the broader
cross-reference to "§§ 8-117 through 8-124 [of this
subtitle] and Article 31, § 22" is substituted for the
former cross-reference to "§§ 19 to 23 of Article 31
(1971 Replacement Volume and 1975 Supplement, as
amended from time to time)", to include former Art.
31, §§ 2B and 30, former Art. 78A, § 1, and former
Art. 95, § 15, which also related to the sale and
delivery of State general obligation bonds and which
are revised in this Part III of this subtitle. The
reference to Art. 31, § 22 reflects that that section,
which provides that State bonds are exempt from
taxation, is to be retained in Art. 31 until revised
in the Taxation - Property Article. The substituted
language omits the former reference to the volume of
the Code "as amended from time to time", in light of
Art. 1, § 21 of the Code.

Also in subsection (c) of this section, provision for
the payment of the expenses of "selling" State bonds
is added, to conform to practice, under which those
expenses are paid from the proceeds of the sale,
unless the State budget includes money for those
expenses.

The Commission to Revise the Annotated Code notes, for
consideration by the General Assembly, that the first
sentence of former Art. 31, § 19 enabled the General
Assembly to authorize the Board to borrow money and to
issue State bonds "in accordance with the provisions
of Article III, § 34, of the Maryland Constitution,
this subtitle and the specific enabling act." The
former phrase "in accordance with the ... act" could
be read as a limitation on the manner in which the
Board may borrow and issue State bonds. However, the
referenced Md. Constitution, Art. III, § 34 states, in
part, that "[n]o debt shall be hereafter contracted by
the General Assembly ...", and, therefore, the former
phrase also could be read as a limitation on the power
of the General Assembly.

The former phrase is revised in § 8-118(b) of this
subtitle, as a limitation on the Board. This revision
reflects that, since the General Assembly passes the
enabling act, the former specific reference to the act
did not seem to be a limitation on the General
Assembly. Since, even without a specific reference to
Md. Constitution, Art. III, § 34, that constitutional
provision would apply to the General Assembly, the
Commission concluded that this revision does not
effect a change.