H.B. 1154                                                VETOES

(b) $190,000,000 of funds from the Revenue Stabilization Account established under §
7-311 of the State Finance and Procurement Article to the Citizen Tax Reduction and Fiscal
Reserve Account established under § 7-310.1 of the State Finance and Procurement Article as
enacted under this Act.

SECTION 9. AND BE IT FURTHER ENACTED, That the Department of Fiscal
Services, using information from the Department of Human Resources, the Department
of Economic and Employment Development Labor, Licensing, and Regulation, the
Comptroller, and appropriate representatives of private employers, shall conduct a study
of the efficacy and effectiveness of the Employment Opportunity Credit tax credit program
established under Section 6 of this Act in increasing the employment and prospects for
self-sufficiency of the target population, including an analysis of the profile of employers
having taken advantage of these tax credits in hiring new employees, cost effectiveness of
the subsidy in reaching State goals, and the appropriateness of the level of the tax credits.
The study shall also include an analysis of the potential effectiveness of the program
based on varying the size, duration, and structure of the subsidy, which analysis may be
performed by selecting, after consultation with the business community, a sample group
designated by political jurisdiction, by industry, or by specific employer. The Department
of Fiscal Services shall complete and present the results of the study to the Senate Budget
and Taxation Committee and the House Committee on Ways and Means by December 1,
1997.

SECTION 10. AND BE IT FURTHER ENACTED, That the Comptroller's office
shall continue to monitor the effects of Chapter 254 of the Acts of 1993 and the revenues
generated by the taxes imposed by the State of Maryland on the short-term vehicle rental
industry. The Department of Fiscal Services shall review these effects and shall be
prepared to brief the fiscal committees or other committees of the General Assembly on
request.

SECTION 11. AND BE IT FURTHER ENACTED, That the sales and use tax
exemption for long-term motor vehicle leases as enacted under Section 1 of this Act shall
be applicable to all motor vehicle lease contracts entered into on or after July 1, 1995.

SECTION 12. AND BE IT FURTHER ENACTED, That the changes to the Tax -
Property Article under Sections 2 and 3 of this Act shall be applicable to all taxable years
beginning after June 30, 1996.

SECTION 13. AND BE IT FURTHER ENACTED, That Section 4 of this Act shall
be applicable to all taxable years beginning after December 31, 1995 but before January
1, 1998. Section 4 of this Act shall remain effective for a period of 2 and one-half years
and, at the end of December 31, 1997, with no further action required by the General
Assembly, Section 4 of this Act shall be abrogated and of no further force and effect.

SECTION 14. AND BE IT FURTHER ENACTED, That Section 5 of this Act shall
take effect January 1, 1998 and shall be applicable to all taxable years beginning after
December 31, 1997; provided, however, that notwithstanding the provisions of § 8-206 of
the Tax General Article, for taxable years beginning after December 31, 1995 but before
January 1, 1998, in computing taxable net earnings for purposes of the financial
institution franchise tax, a financial institution with not earnings derived outside the State
shall allocate and apportion its not earnings in accordance with the rules set forth in §

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