May 26, 2004

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, I have today vetoed House Bill 703 - Commercial Law - Hotels and Retirement Communities - Operating Agreements.

This bill provides that if a conflict exists between the express terms and conditions of an operating agreement, and the terms and conditions implied by the law governing the relationship between a principal and agent, the express terms and conditions of the operating agreement shall govern. It authorizes a court to order a specified remedy, notwithstanding the existence of an agency relationship between the parties, to an operating agreement.

Senate Bill 603, which was passed by the General Assembly and signed by me on May 11, 2004, accomplishes the same purpose. Therefore, it is not necessary for me to sign House Bill 703.

Very truly yours,
Robert L. Ehrlich, Jr.