S.B. 174                                                  VETOES

(d)     If a principal contractor is liable to pay compensation under this section, the
principal contractor is entitled to indemnity from any employer who would have been
liable to pay compensation independent of this section.

(e)     This section does not prevent a covered employee or a dependent of a covered
employee from recovering compensation from a subcontractor instead of the principal
contractor.

(F) (1) A PRINCIPAL CONTRACTOR IS NOT LIABLE TO PAY COMPENSATION
TO AN INDIVIDUAL UNDER THIS TITLE IF THE INDIVIDUAL:

(1) (I) IS A CORPORATE OFFICER, OR A MEMBER OF A LIMITED
LIABILITY COMPANY, WHO ELECTS TO BE EXEMPT FROM COVERAGE UNDER § 9-206
OF THIS TITLE;

(2) (II) ISA PARTNER IN A PARTNERSHIP AND THE PARTNERSHIP
DOES NOT ELECT TO MAKE THE INDIVIDUAL A COVERED EMPLOYEE UNDER § 9-219
OF THIS TITLE; OR                                                                             

(3) (III) IS A SOLE PROPRIETOR AND DOES NOT ELECT TO BE A
COVERED EMPLOYEE UNDER § 9-227 OF THIS TITLE.

(2) AN INDIVIDUAL IS PRESUMED TO BE A SOLE PROPRIETOR WHO IS
NOT A COVERED EMPLOYEE UNDER THIS SECTION IF:

(I) A SUBSTANTIAL PART OF THE INDIVIDUAL'S INCOME IS
DERIVED FROM THE TRADE OR BUSINESS FOR WHICH A PRINCIPAL CONTRACTOR
ENGAGES THE INDIVIDUAL AND FROM WHICH THE INDIVIDUAL HAS ATTEMPTED
TO EARN TAXABLE INCOME; AND

(II) THE INDIVIDUAL HAS FILED THE APPROPRIATE INTERNAL
REVENUE FORM 1040. SCHEDULE C OR F. FOR THE PREVIOUS TAXABLE YEAR.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1996.

May 23, 1996

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 174.

This bill delays the full-scale implementation of the enhanced Vehicle Emissions
Inspection Program (VEIP) from June 1, 1996 to June 1, 1997.

House Bill 66, which was passed by the General Assembly and signed by me on May 14,

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