H.B. 797                                                 VETOES

(c) Any health benefit plan in effect before July 1, 2003, shall comply with the
provisions of Section 2 of this Act Title 6 of the Insurance Article no later than July 1,
2004.

SECTION 12. 6. AND BE IT FURTHER ENACTED, That, for taxable years
beginning after December 31, 2003, the exemption under § 10-104 of the Tax -
General Article is applicable to health maintenance organizations and managed care
organizations that are subject to the insurance premium tax under Title 6 of the
Insurance Article.

SECTION 7. AND BE IT FURTHER ENACTED, That §§ 10-109, 10-306.1,
10-402(c), and 10-804(e)(3) of the Tax - General Article, as enacted by Section 1 of
this Act, shall be applicable to all taxable years beginning after December 31, 2002.

SECTION 13. AND BE IT FURTHER ENACTED, That the fee required to be
paid with an annual report under § 1-203(b)(9) of the Corporations and Associations
Article as enacted under Section 3 of this Act shall be applicable to all annual reports
filed after December 31, 2003.

SECTION 14. AND BE IT FURTHER ENACTED, That Section 1 of this Act
shall be applicable to all taxable years beginning after December 31, 2002.

SECTION 15. AND BE IT FURTHER ENACTED, That Section 5 of this Act
shall take effect January 1, 2004.

SECTION 7. 16. 8. AND BE IT FURTHER ENACTED, That, except as provided
in Sections 5 and 6 9 through 15 5 through 7 of this Act, this Act shall take effect July
1, 2003.

May 22, 2003

The Honorable Michael E. Busch
Speaker of the House
State House
Annapolis MD 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, today I have
vetoed House Bill 797 - Electricity - Universal Service Program - Extension and
Funding.

This bill continues the electric universal service charge at a specified level for
specified purposes; provides assistance for the retirement of specified arrearages for
specified electric customers; authorizes the waiver of a specified income eligibility
limitation for specified electric customers; and requires the Public Service
Commission to make recommendations based on specified factors in a report each
year to the General Assembly.

Senate Bill 504, which was passed by the General Assembly and signed by me,
accomplishes the same purpose. Therefore, it is not necessary for me to sign House
Bill 797.

- 3790 -