S.B. 4                                                     VETOES

(b)     A nonprofit health service plan that complies with the provisions of this
subtitle is declared to be a public benefit corporation that is exempt from taxation as
provided by law.

(c)     The mission of a nonprofit health service plan shall be, IN ACCORDANCE
WITH THE CHARTER OF THE NONPROFIT HEALTH SERVICE PLAN, to:

(1)     provide affordable and accessible health insurance to the plan's
insureds and those persons insured or issued health benefit plans by affiliates or
subsidiaries of the plan;

(2)     assist and support public and private health care initiatives for
individuals without health insurance; and

(3)     promote the integration of a [statewide] health care system that
meets the health care needs of all [Maryland residents] THE RESIDENTS OF THE
JURISDICTIONS IN WHICH THE NONPROFIT HEALTH SERVICE PLAN OPERATES.

(d)     A nonprofit health service plan:

(1)     shall develop goals, objectives, and strategies for carrying out, IN
ACCORDANCE WITH THE CHARTER OF THE NONPROFIT HEALTH SERVICE PLAN, its
statutory mission;

(2)     beginning on December 1, 2003, and continuing through June 30,
2005, shall report quarterly, for the preceding quarter, to the Joint Nonprofit Health
Service Plan Oversight Committee on the nonprofit health service plan's compliance
with the provisions of this subtitle; and

(3)     shall provide to the Joint Nonprofit Health Service Plan Oversight
Committee any other information necessary for the Committee to meet the goals
outlined under § 2-10A-08 of the State Government Article.

(e)     On or before December 1, 2005, and annually thereafter, the Commissioner
shall report to the Governor and, in accordance with § 2-1246 of the State
Government Article, the Senate Finance Committee and the House Health and
Government Operations Committee, on the compliance of a nonprofit health service
plan subject to § 14-115(d) of this subtitle with the provisions of this subtitle.

(f)      (1) [This] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THIS
section applies to:

[(1)] (I) a nonprofit health service plan that is issued a certificate of
authority in the State, whether or not organized under the laws of the State; and

[(2)] (II) an insurer or a health maintenance organization, whether or
not organized as a nonprofit corporation, that is wholly owned or controlled by a
nonprofit health service plan that:

1. is issued a certificate of authority in the State; AND

2. DOES BUSINESS IN THE STATE.

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