VETOES

fails to recognize the unique statutory procedures which already
apply to local government construction contracts. In addition,
it seriously undermines established administrative practices and
may cause tremendous problems in the administration of local
government contracts.

In addition, this legislation exempts state procurement
contracts, but not local procurement contracts. Since there is
no substantial difference between the construction contracts of
the State and the local governments, there is no justifiable
reason for not extending that same exemption to the political
subdivisions. The omission of that provision could have a
substantial financial impact upon the budgets of the local
governments.

Finally, this legislation may have a direct impact on the
Maryland Stadium Authority, and could adversely affect the
Authority's ability to proceed expeditiously with contract
negotiations.

For those reasons, I have decided to veto Senate Bill 473.

Sincerely,

William Donald Schaefer

Governor

Senate Bill No. 473

AN ACT concerning

Real Property - Construction Contracts

FOR the purpose of requiring certain individuals entering into
certain construction contracts to make certain arrangements
for payment or payment to escrow pending resolution of
certain disputes; setting certain requirements for escrow
accounts; authorizing courts to grant certain remedies;
defining a certain term; providing for the award of certain
fees and costs if a court makes a certain finding; exempting
certain individuals and certain transactions from the
provisions of this Act; exempting from the provisions of
this Act contracts entered into prior to the effective date
of this Act; and generally relating to construction
contracts.

BY adding to

Article - Real Property

Section 10-601 to be under the new subtitle "Subtitle 6.
Construction Contracts"

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