Ch. 507

1993 LAWS OF MARYLAND

SECTION 2. AND BE IT FURTHER ENACTED, That on June 1, 1993 any
existing affiliate or subsidiary of a health service corporation regulated under Subtitle 20
of Article 48A of the Code that is not in compliance with the provisions of Article 48A, §
357 357(a) through (d) of the Code as enacted by this Act shall be divested or liquidated
by the health service corporation in accordance with a plan of divestiture approved filed
under Article 48A, § 357(e) of the Code on or before December 1, 1993 for approval by
the Commissioner.

SECTION 3. AND BE IT FURTHER ENACTED, That any nonprofit health
care plan operating under a certificate of authority issued on or before January 1, 1992
shall have the greater of $75,000 or at the end of:

(1)     December 1993 have 40% of the minimum surplus required under §
355A(b)(2) of this Act;

(2)     December 1994 have 60% of the minimum surplus required under §
355A(b)(2) of this Act;

(3)     December 1995 have 80% of the minimum surplus required under §
355A(b)(2) of this Act;

(4)     December 1996 have! 100% of the minimum surplus required under §
355A(b)(2) of this Act.

SECTION 4. AND BE IT FURTHER ENACTED, That any person who is a
member of the board of directors of a corporation subject to Article 48A, § 360(b) and (g)
of the Code on the effective date of this Act:

(1)     May be reappointed and continue to serve on the board if, at the expiration of
their current term as of January 1, 1993, their cumulative service as a member of the
board from before the effective date of this Act to the expiration of the current term is
less than a total of 9 years; and

(2)     May not be reappointed to the board if, at the expiration of their current term
as of January 1, 1993, their cumulative service as a member of the board from before the
effective date of this Act to the expiration of the current term is equal to or greater than
a total of 9 years.

SECTION 5. AND BE IT FURTHER ENACTED, That notwithstanding Section
4 of this Act, a member of the board of directors of a corporation subject to Subtitle 20 of
Article 48A of the Code that is serving on the effective date of this Act and that is allowed
to be reappointed under Section 4 of this Act, may not serve a cumulative term greater
than that allowed under Article 48A, § 360A of the Code as set out under this Act.

SECTION 6. AND BE IT FURTHER ENACTED, That, notwithstanding Sections 4
and 5 of this Act and the bylaws of a corporation subject to Subtitle 20 of Article 48A of the
Code, persons who are members of the board of directors of a corporation subject to Article
48A, § 360(b) and (g) on the effective date of this Act and whose terms as directors will reach
9 years during 1994 shall be removed from the board in the order determined by the board
according, to the following schedule:

(1) four shall leave the board before January 1, 1994; and

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