HARRY HUGHES, Governor

1003

WHEREAS, Section 8 of Chapter 775 of the Acts of 1980 (the
"Procurement—Act Article") merely transferred, with certain
stylistic changes only, the Sovereign Immunity Act from Article
41, § 10A, to the new Article 21, Title 7, Subtitle 1, effective
June 1, 1981, and, in doing so, may have narrowed inadvertently
the scope of the Sovereign Immunity Act so as to prohibit the
defense only in cases involving contracts which are subject to
the Procurement Act; and

WHEREAS, The Office of the Attorney General, after reviewing
the matter, concluded that the General Assembly had not intended
to narrow the scope of the sovereign immunity defense
prohibition; and

WHEREAS, Notwithstanding the views of the Attorney General's
Office, Chapter 284 of the Acts of 1984 ("the the "State
Government Act Article"), in revising the Sovereign Immunity Act
without substantive change and transferring it from the
Procurement Article to the new State Government Article,
reflected the view that the Procurement Act Article had
narrowed the scope of the Sovereign Immunity Act so as to
prohibit the defense only with respect to written contracts with
which are subject to the Procurement Article; and

WHEREAS, There consequently is a need to clarify the intent
of the General Assembly and the scope of the Sovereign Immunity
Act; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - State Government

[12-201.

This subtitle applies only to a contract:

(1)  as defined in Article 21, § 1-101 of the Code;
and

(2)  not excluded by Article 21, § 1-202 of the Code.]

[12-202.] 12-201.

(a) Except as otherwise expressly provided by a law of the
State, the State, its officers, and its units may not raise the
defense of sovereign immunity in a contract action, in a court of
the State, based on a written contract that an official or
employee executed for the State or 1 of its units while the
official or employee was acting within the scope of the authority
of the official or employee.

(b) In an action under this subtitle, the State and its
officers and units are not liable for punitive damages.