S.B. 4                                                     VETOES

(ii) one nonvoting member, who is not a member of the Maryland
General Assembly, appointed by and serving at the pleasure of the Speaker of the
House of Delegates; and

(iii) 21 members selected by the board, IN ACCORDANCE WITH THE
BYLAWS OF THE CORPORATION, including two consumer members, who satisfy the
requirements of paragraphs (13), (14), and (15) of this subsection.

(11) (i) [Board approval is required for] THE BOARD SHALL APPROVE
IN ADVANCE any action by the nonprofit health service plan, a corporation for which
the plan is the sole member, or any affiliate or subsidiary of the nonprofit health
service plan to:

1. [modify benefit levels] MATERIALLY MODIFY OPTIONS
AVAILABLE IN BENEFIT PLANS MARKETED IN THE STATE;

2. materially modify MARYLAND provider networks or
MARYLAND provider reimbursement LEVELS;

3.       MATERIALLY modify underwriting guidelines FOR
PRODUCTS MARKETED IN THE STATE;

4.       MATERIALLY modify rates or rating plans THAT ARE
REQUIRED TO BE APPROVED BY THE COMMISSIONER;

5. ADD A PRODUCT TO OR withdraw a product FROM THE
MARYLAND MARKET, [or] withdraw from a line or type of [business] BUSINESS, or
WITHDRAW FROM A geographic region IN THE STATE; [or]

6. MATERIALLY MODIFY MARKETING GOALS AND
OBJECTIVES IN THE STATE; OR

[6.] 7. MATERIALLY impact the availability or affordability
of health care in the State.

(II) THE COMMISSIONER SHALL ADOPT REGULATIONS THAT
DEFINE "MATERIAL" FOR PURPOSES OF SUBPARAGRAPH (I) OF THIS PARAGRAPH.

[(ii)](III) A decision by the board to convert to a for profit entity
under Title 6.5 of the State Government Article may be rejected by any three
members of the board.

[(iii)] (IV) The board may delegate approval for the actions listed in
subparagraph (i) of this paragraph to a standing committee of the board.

14-115.1.

(A)     IN THIS SECTION, "OFFICER" MEANS ANY OFFICER THAT A MARYLAND
CORPORATION IS REQUIRED OR PERMITTED TO HAVE UNDER § 2-412 OF THE
CORPORATIONS AND ASSOCIATIONS ARTICLE.

(B)     (1) AN OFFICER OF A NONPROFIT HEALTH SERVICE PLAN SHALL ACT:

(I) IN GOOD FAITH;

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