WILLIAM DONALD SCHAEFER, Governor

(III) EMPLOYS A PROSPECTIVELY. DETERMINED
COMMUNITY RATING METHODOLOGY UNDER WHICH THE HEALTH MAINTENANCE
ORGANIZATION IS AT RISK TO PROVIDE HEALTH CARE SERVICES AND
CANNOT RETROSPECTIVELY ADJUST RATES BASED ON ACTUAL USE OR
INTENSITY OF SERVICES.

(B) PROPERTY THAT IS NOT OTHERWISE EXEMPT FROM TAXATION
UNDER § 7-202 OF THIS SUBTITLE IS NOT SUBJECT TO PROPERTY TAX IF
THE PROPERTY:

(1)  IS OWNED BY A HEALTH MAINTENANCE ORGANIZATION;
AND

(2)  IS USED EXCLUSIVELY FOR?

(I) THE PROVISION OF HEALTH CARE SERVICES; OR,
INCLUDING ADMINISTRATIVE AND RELATED NONPROFIT ACTIVITIES THAT
ARE REASONABLY ALLOCABLE TO THE PROVISION OF HEALTH CARE SERVICES
AT A FACILITY ON THE PROPERTY.

(II) ADMINISTRATION OR PROVISIONS OF NONPROFIT
SERVICES AND ACTIVITIES TO MEMBERS OF THE HEALTH MAINTENANCE
ORGANIZATION.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1988 and shall be applicable to all taxable
years beginning after June 30, 1988.

May 27, 1988

The Honorable Thomas V. Mike Miller, Jr.

President of the Senate

State House

Annapolis, Maryland 21401

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland
Constitution, I have today vetoed Senate Bill 805.

This bill authorizes a county or municipal corporation to grant a
property tax credit for property used for day care services.

House Bill 1040, 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 805.

- 5293 -