VETOES

This bill permits the Maryland Small Business Development
Financing Authority to guarantee surety bonds executed for
contracts financed by utilities regulated by the Public Service
Commission under the Surety Bond Guaranty Fund.

House Bill 1024, which was passed by the General Assembly and
signed by me on May 27, 1988, accomplishes the same purpose.
Therefore, it is not necessary for me to sign Senate Bill 149.

Sincerely,

William Donald Schaefer

Governor

Senate Bill No. 149

AN ACT concerning

Maryland Small Business Development Financing Authority -
Surety Bond Guaranty Fund

FOR the purpose of providing that surety bonds for contracts for
certain projects financed by utilities regulated by the
Public Service Commission may be guaranteed by the Surety
Bond Guaranty Fund under certain circumstances; providing
certain restrictions on guaranties financed by the Surety
Bond Guaranty Fund; clarifying the term "government"; and
generally relating to the Surety Bond Guaranty Fund
financial assistance program.

BY repealing and reenacting, with amendments,

Article - Financial Institutions

Section 13-234.3 and 13-234.6

Annotated Code of Maryland

(1986 Replacement Volume and 1987 Supplement)

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

Article - Financial Institutions

13-234.3.

(a) Subject to the restrictions of this Part VI, the
Authority, on application, may guarantee any surety up to 90
percent of its losses incurred under a bid bond, a payment bond,
or a performance bond of not more than $1,000,000 for each bond
on any [government] contract WITH THE FEDERAL OR STATE OR A LOCAL

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