WILLIAM DONALD SCHAEFER, Governor

(II) IF AN INDIVIDUAL IS EXCLUDED UNDER §
240C-2 OF THIS ARTICLE FROM COVERAGE UNDER A POLICY ISSUED BY THE
FUND, THAT INDIVIDUAL SHALL BE ENTITLED TO OBTAIN COVERAGE UNDER
A POLICY ISSUED BY THE FUND IF THE INDIVIDUAL IS OTHERWISE
QUALIFIED UNDER THIS SUBTITLE.

543.

(F) A PERSON EXCLUDED FROM COVERAGE UNDER A POLICY IN
ACCORDANCE WITH § 240C-2 OF THIS ARTICLE MAY RECOVER BENEFITS
UNDER THE POLICY FOR THE COVERAGES REQUIRED IN §§ 539 AND 541 OF
THIS ARTICLE ONLY TO THE EXTENT A PERSON EXCLUDED FROM A POLICY
UNDER § 240C-1 MAY RECOVER BENEFITS UNDER THE POLICY FOR
COVERAGES REQUIRED IN §§ 539 AND 541 OF THIS ARTICLE.-------------

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989.

May 25, 1989

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 337.

Senate Bill 337 prescribes procedures intending to establish
greater control over debt issues by State agencies with
independent debt-issuing authority. Not included under Senate
Bill 337 are general obligation bonds, backed by the full faith
and credit of the State, and "private activity" bonds which are
subject to limitations established under federal Internal Revenue
Code.

Under Senate Bill 337, the Board of Public Works would establish
a debt allocation for each State agency. Each agency would
provide prior notice to the Board of its issuance of debt, and
the Board could require its prior review and approval. The Board
could also require centralized procurement of financial and
non-legal technical services in connection with the issuance of
bonds. The bill provides for an annual report by the Department
of Budget and Fiscal Planning on all State debt issuances by
State agencies.

- 4613 -