VETOES

May 30, 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 581.

Senate Bill 581 would establish a Maryland Underground Storage
Tank Fund financed by a tax on motor fuels imposed at the point
of first transfer in Maryland and by a one-time $50 fee on each
underground oil storage tank. The fund would be used to provide
financial assurance for owners and operators of underground
storage tanks for the cost of containment, clean-up, and personal
injury claims in the event of a discharge.

Senate Bill 581 was introduced in response to recent federal
regulations issued by the Environmental Protection Agency which
would require owners and operators of underground storage tanks
to obtain financial assurance to cover the costs of a release.

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SECTION 2. AND BE IT FURTHER ENACTED, That the Authority
shall submit a quarterly report to the Budget and Taxation and
Finance Committees in the Maryland Senate and the Appropriations
and Economic Matters Committees in the House of Delegates. The

report shall provide, at a minimum, the total number and amount
of loans approved, the geographical distribution of the loans,
the type of businesses acquired, the number and amount of current
loans, the number and amount of loans over 30 days past due, the
number and amount of loans in default, the number and amount of
loans repaid, any managerial assistance provided by the
Authority, and the number and type of jobs created or retained by
the loans. This information shall be provided separately for
loans approved for the acquisition of franchises and for the
acquisition of existing businesses. In addition, the Authority
will have an annual audit conducted by the Department of Fiscal
Services, Division of Audits that shall be forwarded to the
aforementioned Committees.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989. It shall remain effective for a period
of three years and, at the end of June 30, 1992, and with no
further action required by the General Assembly, this Act shall
be abrogated and of no further force and effect.