PARRIS N. GLENDENING, Governor                             S.B. 308

[(e)](B) Notwithstanding provisions of [subsection (d)] SUBSECTION (A) of this
section, the Society [and its subsidiaries] may issue nonassessable policies subject to the
provisions of §§ 262 and 263, and all other applicable provisions of this article and the
Corporations and Associations Article when the Society [and its subsidiaries meet]
MEETS all applicable requirements of this article concerning the sale of nonassessable
policies including, but not limited to, §§ 48, 49, and 50 of this article.

SECTION 2. 3. AND BE IT FURTHER ENACTED, That the amendments to
Article 48A, § 553 of the Code set forth in Section 1 of this Act shall apply to any policy
issued or renewed by the Society with an effective date on or after January 1, 1996. As of
June 1, 1995, any rate Stabilization Reserve Fund charge collected by the Society or any
of its subsidiaries with respect to policies issued or renewed with an effective date prior to
January 1, 1996 shall be deemed to be unassigned surplus of the Society or of the
subsidiary issuing or renewing the policy and, on or before December 31, 1995, shall be
reclassified in the records of the Society or the subsidiary issuing or renewing the policy
as unassigned surplus.

SECTION 4. AND BE IT FURTHER ENACTED, That the amendments to Article
48A, § 553 of the Code in Section 1 of this Act shall take effect June 1, 1995. They shall
remain effective until December 31, 2000 and, at the end of December 31, 2000, with no
further action required by the General Assembly, the amendments to Article 48A, §. 553
of the Code in Section 1 of this Act shall be abrogated and of no further force and effect.

SECTION 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall
take effect January 1, 2001.

SECTION 3. 6. AND BE IT FURTHER ENACTED, That, except as provided in
Sections 4 and 5 of this Act, this Act shall take effect June 1, 1995.

May 24, 1995

The Honorable Thomas V. Mike Miller, Jr.
President of the Senate
State House
Annapolis MD 21401

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 308.

This bill adds to the qualifications for a license to sell payment instruments. Specifically,
the bill requires a license applicant to have a net worth of at least $100,000, and increases
the minimum amount of bond or permissible investments that must be filed or deposited
with the Bank Commissioner by a licensee.

House Bill 926, which was passed by the General Assembly and signed by me on May 18,
1995, accomplishes the same purpose. Therefore, it is not necessary for me to sign Senate
Bill 308.

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