§ ROBERT L. EHRLICH, JR., Governor                             Ch. 357

(3) THE PRINCIPAL FUNCTIONS OF THE BOARD SHALL INCLUDE:

(I) ENSURING THAT THE CORPORATION EFFECTIVELY CARRIES
OUT THE NONPROFIT MISSION ESTABLISHED UNDER § 14-102(C) OF THIS SUBTITLE;

(II) SELECTING CORPORATE MANAGEMENT AND EVALUATING ITS
PERFORMANCE;

(III)   ENSURING TO THE EXTENT PRACTICABLE THAT HUMAN
RESOURCES AND OTHER RESOURCES ARE SUFFICIENT TO MEET CORPORATE
OBJECTIVES;

(IV)    SUBJECT TO THE PROVISIONS OF SUBSECTION (D) OF THIS
SECTION, NOMINATING AND SELECTING SUITABLE CANDIDATES FOR THE BOARD;
AND

(V) ESTABLISHING A SYSTEM OF GOVERNANCE AT THE BOARD
LEVEL, INCLUDING AN ANNUAL EVALUATION OF BOARD PERFORMANCE.

(4) EACH MEMBER OF THE BOARD SHALL DEMONSTRATE A
COMMITMENT TO THE MISSION OF THE NONPROFIT HEALTH SERVICE PLAN.

[(3)](5) An officer or employee of a nonprofit health service plan or any
of its affiliates or subsidiaries may not be appointed or elected to the board.

[(4)](6) A nonprofit health service plan is subject to the provisions of §
2-419 of the Corporations and Associations Article.

(d) [(1) This subsection does not apply to a board of a nonprofit health service
plan that issues contracts for only one of the following services:

(i)     podiatric;

(ii)    chiropractic;

(iii)   pharmaceutical;

(iv)   dental;

(v)     psychological; or

(vi)    optometric]

(1) THIS SUBSECTION APPLIES TO A CORPORATION THAT IS:

(I) ISSUED A CERTIFICATE OF AUTHORITY AS A NONPROFIT
HEALTH SERVICE PLAN; AND

(II) THE SOLE MEMBER OF A CORPORATION ISSUED A
CERTIFICATE OF AUTHORITY AS A NONPROFIT HEALTH SERVICE PLAN.

(2) THE BOARD SHALL BE COMPOSED OF NO MORE THAN 23 MEMBERS,
INCLUDING:

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