Ch. 356

2003 LAWS OF MARYLAND

(iii) three, including one consumer member and no more than one
health care provider, are appointed by the Speaker of the House.

(3)     An individual shall be appointed to the board under paragraph (1) of
this subsection with the approval of a simple majority of the nominating committee.

(4)     The individuals appointed under paragraph (3) of this subsection:

(i) shall include two consumer members;

(ii) to the extent practicable, shall meet the requirements of §
14-115(e)(11) of the Insurance Article, as enacted by Section 1 of this Act; and

(iii) to the extent practicable, shall have experience in accounting,
information technology, finance, law, large and small businesses, nonprofit businesses,
and organized labor.

(5)     The nominating committee shall determine the order of replacement of
members removed from the board of directors under subsection (a) of this section.

(c)     A member of the nominating committee may not be a candidate for
membership on the board.

(d)     This section does not apply to those members who serve on the board of
directors of a corporation that is subject to the provisions of § 14-115(d) of the
Insurance Article, as enacted by Section 1 of this Act, who represent a corporation that
is not organized under the laws of the State.

SECTION 5. AND BE IT FURTHER ENACTED, That:

(a)     Two 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, on or before June 1, 2004, by a nominating committee established under
§ 14-115(d)(6)(iv) of the Insurance Article, as enacted by Section 1 of this Act.

(b)     The board members who serve on the board of a corporation subject to the
provisions of § 14-115(d) of the Insurance Article, as enacted by Section 1 of this Act,
and who represent a corporation that is not organized under the laws of the State shall
be removed and replaced on or before March 31, 2006.

SECTION 6. AND BE IT FURTHER ENACTED, That, subject to the approval of
the Maryland Insurance Commissioner, a nominating committee established under §
14-115(d)(6)(iv) of the Insurance Article, as enacted by Section 1 of this Act, shall
develop a plan to stagger the terms of the voting members of a board of a corporation
subject to § 14-115(d) of the Insurance Article, as enacted by this Act.

SECTION 7. AND BE IT FURTHER ENACTED, That, for a period of 5 years
after the effective date of this Act:

(1) a person may not file an application for the acquisition of a nonprofit
health service plan subject to the provisions of § 14-115(d) of the Insurance Article, as
enacted by Section 1 of this Act, and a nonprofit health service plan subject to the

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