WILLIAM DONALD SCHAEFER, Governor Ch. 732

BY adding to

Article - State Finance and Procurement
Section 8-131.2 8-122.1, 8-123.1, and 8-123.2
Annotated Code of Maryland
(1988 Replacement Volume)

Preamble

WHEREAS, The State of Maryland has enjoyed great success in
public financing through the issuance and sale of State general
obligation bonds; and

WHEREAS, Many large institutional investors have been able
to purchase those bonds as investment tools; and

WHEREAS, Many Maryland citizens are proud of the State and
its accomplishments and also desire to invest in Maryland's
future; and

WHEREAS, Due to the high cost of State general obligation
bonds, many of Maryland's citizens, who are small investors, are
financially unable to purchase these bonds; and

WHEREAS, Several states that have faced similar situations
have instituted legislation that would permit their citizens to
purchase small denomination bonds in order to invest in their
states; and

WHEREAS, Maryland also desires to grant its citizens an
opportunity to invest in its bonds on a tax exempt basis; and

WHEREAS, In order to accomplish this goal, the The State of
Maryland seeks to authorize the issuance of capital appreciation
and small denomination bonds; now, therefore,

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

Article - State Finance and Procurement

8-101.

(a)  In this subtitle the following words have the meanings
indicated.

(b)   "Board" means the Board of Public Works.

(c)  "Enabling act" means a law that authorizes the creation
of a general obligation debt of the State and the sale of State
bonds to evidence that debt.

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