ROBERT L. EHRLICH, JR., Governor                             Ch. 356

(III) DO NOT IMPAIR THE FINANCIAL CONDITION OF THE
NONPROFIT HEALTH SERVICE PLAN;

(6) OFFER A PRODUCT IN THE INDIVIDUAL MARKET;

(7) OFFER A PRODUCT IN THE SMALL EMPLOYER GROUP MARKET;

(8) PARTNER WITH THE STATE AND OTHER PUBLIC OR PRIVATE
ENTITIES TO PROVIDE SERVICES OR ADMINISTER PROGRAMS TO ADDRESS
COMMUNITY HEALTH CARE NEEDS; AND

(9) CONTINUE SUBSIDIZATION OF THE SENIOR PRESCRIPTION DRUG
PROGRAM ESTABLISHED UNDER TITLE 14, SUBTITLE 5, PART II OF THE INSURANCE
ARTICLE.

(G) (1) IN ACCORDANCE WITH § 2-1246 OF THIS TITLE, THE COMMITTEE
SHALL SUBMIT AN ANNUAL REPORT TO THE GENERAL ASSEMBLY ON OR BEFORE
DECEMBER 1 OF EACH YEAR

(2) THE REPORT SHALL INCLUDE THE FINDINGS AND
RECOMMENDATIONS OF THE COMMITTEE WITH REGARD TO THE EXAMINATION AND
EVALUATION CARRIED OUT UNDER SUBSECTION (F) OF THIS SECTION.

SECTION 3. AND BE IT FURTHER ENACTED, That, pursuant to $ 6.5-203(h)
of the State Government Article, as enacted by Section 1 of this Act, the General
Assembly ratifies the determination of the Maryland Insurance Commissioner and
finds that the conversion of CareFirst to a for profit entity is not in the public interest,
and declares that it is in the interest of all Marylanders to protect and preserve
CareFirst in its nonprofit form.

SECTION 4. AND BE IT FURTHER ENACTED, That:

(a)     Notwithstanding the provisions of § 14-115(d)(2) and (4) of the Insurance
Article, as enacted by Section 1 of this Act, ten board members representing a
corporation that is organized under the laws of the State and that is subject to the
provisions of § 14-115(d) of the Insurance Article, as enacted by Section 1 of this Act,
shall be removed from the board of directors and replaced as early as practicable, but
no later than December 1, 2003, as provided in subsection (b) of this section.

(b)     (1) The ten members removed under subsection (a) of this section shall be
replaced by a nominating committee appointed by the Governor, President of the
Senate of Maryland, and Speaker of the House of Delegates.

(2) The nominating committee shall be appointed on or before June 1,
2003, and shall consist of nine members, of whom:

(i) three, including one consumer member and no more than one
health care provider, are appointed by the Governor;

(ii) three, including one consumer member and no more than one
health care provider, are appointed by the President of the Senate; and

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