H.B. 429

VETOES

(ii) Give them convenient access to all books, records, papers, and
documents that relate to the business of the health maintenance organization, including
financial records of providers that provide services under contract. .

(2) (i) [If the Commissioner finds accounts of a health maintenance
organization being examined to be inadequate, or inadequately kept or posted, the
Commissioner shall give the health maintenance organization notice and a reasonable
opportunity to rewrite, post, or balance the accounts.

(ii) If, after being notified under subparagraph (i) of this paragraph, a
health maintenance organization being examined has failed to complete or correct the
inadequate account information, the] THE Commissioner may employ experts, NOT
OTHERWISE A PART OF THE STAFF OF THE COMMISSIONER, to [rewrite, post, or
balance the accounts] CONDUCT ANY EXAMINATION MADE UNDER THIS SECTION at
the expense of the health maintenance organization.

(II) AN EXPERT EMPLOYED UNDER THIS PARAGRAPH MAY
REWRITE,. POST, OR BALANCE THE ACCOUNTS OF A HEALTH MAINTENANCE
ORGANIZATION BEING EXAMINED IF:                     

1. THE COMMISSIONER FINDS THE ACCOUNTS TO BE
INADEQUATE OR INADEQUATELY KEPT; AND

2. THE HEALTH MAINTENANCE ORGANIZATION HAS
FAILED TO CORRECT THE ACCOUNTING AFTER THE COMMISSIONER HAS, GIVEN
NOTICE AND AN OPPORTUNITY TO CORRECT THE ACCOUNTS.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect

July 1, 1993.

May 27, 1993

The Honorable R. Clayton Mitchell, Jr.

Speaker of the House of Delegates

State House

Annapolis, Maryland 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed House Bill 429.

This bill would clarify the Maryland Limited Liability Company Act, a 1992 enactment, to
provide for the organization and operation of limited liability companies engaging in
enumerated professional services.

Senate Bill 547, which was passed by the General Assembly and signed by me on May 27,
1993, accomplishes the same purpose. Therefore, it is not necessary for me to sign House
Bill 429.

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