ANNAPOLIS, MD (May 17, 2007) - Comptroller Peter Franchot today joined Governor O'Malley, legislators and advocates in celebrating the signing of three key statewide bills aimed at protecting citizens and saving state tax dollars. During the legislative session, the Comptroller testified in support of each of these bills.

During a ceremony today, Comptroller Franchot applauded Governor O'Malley and the legislative leadership for signing bills aimed at stopping the illegal practices of "captive" Real Estate Investment Trusts (REITs), mandating clean air in restaurants and bars, and banning unsafe cigarettes.

"Marylanders are safer today thanks to the passage of these bills," said Comptroller Peter Franchot. "We also sent a message to corporate tax scofflaws who plan to cheat our state out of tax dollars that their illegal practices won't be tolerated."

Officials signed Senate Bill 945 and House Bill 1257, the Captive Real Estate Investment Trust acts that would outlaw this tax avoidance practice and force companies to include income paid to "captive" REITS in their federal taxable income. Comptroller's Office officials believe the illegal practice cost the state millions in lost taxes. The bill will compliment action already undertaken by the agency to audit companies using this tax loophole and efforts to collect the taxes owed.

House Bill 785, the Cigarette Fire Safety Performance Standard and Firefighter Protection Act was also signed into law and will prohibit the manufacture or sale of cigarettes in the state unless the cigarettes have been tested for fire safety. The cigarette's manufacturer has to file a specified certification with the Comptroller's Office.

Also signed today, the Clean Indoor Air Act of 2007, House Bill 359, will prohibit a person from smoking tobacco products in indoor areas open to the public and indoor places of employment except under specified circumstances, beginning February 1, 2008.

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Contact: Joe Shapiro, 410-260-7305