H.B. 1126                                                VETOES

because Maryland Public Television has lost many talented individuals in senior
management positions to broadcast outlets, both public and privately owned, in other
markets of similar size, due to their inability to offer competitive salaries.

As amended, House Bill 1126 would require that all expenditures and accounts of the
Commission, or any affiliated foundation, be subject to audit by the Legislative Auditor.
This amendment is redundant in certain respects, and wholly inappropriate.

The accounts and expenditures of the Maryland Public Broadcasting Commission are
already subject to audit by the Legislative Auditor. The Maryland Public Broadcasting
Foundation is a private, tax-exempt fundraising organization, whose sole purpose is to
support the activities of Maryland Public Television. Section 24-207 of the Education
Article of the Annotated Code prohibits the Commission from accepting funds from an
affiliated foundation unless the fiscal affairs of that foundation are audited annually by an
independent certified public accountant. Section 24-207 also requires the certified public
accountant to send copies of each-annual audit report to the Commission and the
Department of Fiscal Services. Thus, the Legislative Auditor currently has the degree of
access deemed appropriate by the General Assembly to the fiscal records of the
Commission and any affiliated foundation.

I am opposed to House Bill 1126, as amended, because it would subject private
corporations, which do not receive appropriations from the General Assembly, to the
direct audit authority of the Legislative Auditor. The bill clearly goes beyond the intent of
the General Assembly with respect to the authority of the Legislative Auditor over
corporations and associations. Section 2-1215 of the State Government Article limits the
authority of the Legislative Auditor to "... audit a corporation or association to which the
General Assembly has appropriated money from the State treasury". The Maryland
Public Broadcasting Commission does not have an affiliated foundation that receives an
appropriation from the General Assembly. Moreover, in past years, the General
Assembly has rejected several similar attempts to expand the authority of the Legislative
Auditor into the fiscal affairs of private entities. Signing House Bill 1126 would establish
a precedent that would certainly lead to further attempts to expand the authority of the
Legislative Auditor beyond well-established boundaries.

For these reasons, I have vetoed House Bill 1126.

Sincerely,

William Donald Schaefer

Governor

House Bill No. 1126

AN ACT concerning

Maryland Public Broadcasting Commission - Personnel Matters

FOR the purpose of authorizing the Maryland Public Broadcasting Commission to set the
salaries, and determine the duties, and add, eliminate, or change the titles of certain
management personnel providing that certain employees of the Maryland Public
Broadcasting Commission are subject to the Executive Pay Plan; specifying the amount

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