UNIVERSITY SYSTEM OF MARYLAND BUT SHALL OPERATE SUBJECT TO POLICIES
ADOPTED BY THE BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF MARYLAND
IN CONSULTATION WITH THE PRESIDENTS OF THE UNIVERSITY SYSTEM OF
MARYLAND CONSTITUENT INSTITUTIONS.

(4) AN AFFILIATED FOUNDATION ESTABLISHED AND OPERATED UNDER
THIS SUBSECTION MAY NOT BE CONSIDERED AN AGENCY OR INSTRUMENTALITY OF
THE STATE OR A UNIT OF THE EXECUTIVE BRANCH FOR ANY PURPOSE.

(5) A FINANCIAL OBLIGATION OR LIABILITY OF AN AFFILIATED
FOUNDATION ESTABLISHED AND OPERATED UNDER THIS SUBSECTION MAY NOT BE
CONSIDERED A DEBT OR AN OBLIGATION OF THE STATE OR THE UNIVERSITY
SYSTEM OF MARYLAND.

[(3)](4) (6) Sections 15-501 through 15-504 of the State Government
Article do not bar an official or employee of a public institution of higher education
from becoming a director, official, or employee of an independent foundation
organized to foster fundraising. and provide related services for the benefit of the
institution.

[(4)](5) (7) No funds shall be accepted from an affiliated foundation
by a public institution of postsecondary education unless the fiscal affairs of the
affiliated foundation are audited annually by an independent certified public
accountant.

SECTION 2. AND BE IT FURTHER ENACTED, That the Board of Regents of
the University System of Maryland in consultation with the presidents of the
University System of Maryland constituent institutions shall report to the General
Assembly on or before September 1, 1999, in accordance with Section 2-1246 of the
State Government Article, on a plan to transfer to any foundation established under
this Act the assets held on behalf of any University System of Maryland constituent
institution.

SECTION 3. 2. AND BE IT FURTHER ENACTED, That this Act shall take
effect July 1, 1999.

May 27, 1999

The Honorable Casper R. Taylor, Jr.
Speaker of the House
State House
Annapolis MD 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed House Bill 425.

This bill authorizes a preneed contract or preneed burial contract to be funded by a
life insurance policy or annuity contract under specified circumstances.

Senate Bill 578, which was passed by the General Assembly and signed by me on May