PARRIS N. GLENDENING, Governor                          H.B. 1154

(i) potato chips and sticks;

(ii) cornchips;

(iii) pretzels;

(iv) choose puffs and curls;

(v) pork rinds;

(vi) extruded pretzels and chips;

(vii) popped popcorn;

(viii) nuts and edible seeds; or

(ix) snack mixtures that contain any 1 or more of the foods listed in
items (i) through (viii) of this paragraph.]

[(7)](6) "Substantial grocery or market business" means a business at
which at least 10% of all sales of food are sales of grocery or market food items, not
including food normally consumed on the premises even though it is packaged to carry

out.

(c) (1) Except as provided in paragraph (2) of this subsection, the sales and use
tax does not apply to a sale of food for consumption off the premises by a food vendor
who operates a substantial grocery or market business at the same location where the
food is sold.

(2) The exemption under paragraph (1) of this subsection does not apply to:

(i) food that the vendor serves for consumption on the promises of the
buyer or of a third party; OR

(ii) food for immediate consumption [; or

(iii) snack food].

SECTION 8. AND BE IT FURTHER ENACTED, That notwithstanding any other
provision of law for Fiscal Year 1996, the Governor may transfer $50 million of funds
from the Dedicated Purpose Account established under § 7-310 of the State Finance and
Procurement Article and up to $104 million of funds from the Revenue Stabilization
Account established under § 7-311 of the State Finance and Procurement Article to the
Fiscal Reserve Account established under § 7-310.1 of the State Finance and
Procurement Article as enacted under Section 1 of this Act to meet the purposes of that
Account. It is the intent of the General Assembly to establish a balance of at least $118
million in the Fiscal Reserve Account for Fiscal Year 1996.

SECTION 8. AND BE IT FURTHER ENACTED, That notwithstanding any other
provision of law, for Fiscal Year 1996, the Governor shall transfer:

(a) $50,000,000 of funds from the Dedicated Purpose Account established under §
7-310 of the State Finance and Procurement Article to the Revenue Stabilization Account
established under § 7-311 of the State Finance and Procurement Article; and

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