ROBERT L. EHRLICH, JR., Governor                             Ch. 357

provisions or any other application of this Act which can be given effect without the
invalid provision or application, and for this purpose the provisions of this Act are
declared severable.

SECTION 14. AND BE IT FURTHER ENACTED, That Section 2 of this Act
shall take effect June 1, 2003. It shall remain effective for a period of 2 years and 3
months and, at the end of August 31, 2005, with no further action required by the
General Assembly, Section 2 of this Act shall be abrogated and of no further force and
effect.

SECTION 15. AND BE IT FURTHER ENACTED, That this Act is an emergency
measure, is necessary for the immediate preservation of the public health or safety, has
been passed by a yea and nay vote supported by three-fifths of all the members elected
to each of the two Houses of the General Assembly, and, except as provided in Section
14 of this Act, shall take effect from the date it is enacted.

Approved May 22, 2003.

CHAPTER 357
(House Bill 1179)

AN ACT concerning

Health Insurance - Nonprofit Health Service Plans - Reform

FOR the purpose of altering certain provisions relating to the regulation of nonprofit
health service plans; specifying the purpose of certain provisions of law;
specifying that certain nonprofit health service plans are exempt from certain
taxes; establishing the mission of nonprofit health service plans; requiring a
nonprofit health service plan to develop certain goals, objectives, and strategies;
requiring a nonprofit health service plan to report quarterly to a certain
oversight committee and provide certain information to the oversight committee
for a certain purpose; establishing the scope of certain provisions of law
governing nonprofit health service plans; exempting certain nonprofit health
service plans from certain public service requirements; specifying the manner in
which certain nonprofit health service plans can satisfy certain requirements;
requiring certain nonprofit health service plans to perform certain functions;
requiring the Insurance Commissioner to deny inspection of a certain part of a
certain report under certain circumstances; repealing a requirement that the
Insurance Commissioner follow certain procedures after making a certain
determination; requiring the Insurance Commissioner to issue an order to
require that a nonprofit health service plan pay a certain premium tax for a
certain period of time under certain circumstances; specifying the use of certain
premium tax revenue collected by the Maryland Insurance Administration;
specifying information that certain applicants for a certificate of authority must
submit; specifying certain criteria that the Insurance Commissioner shall
consider when issuing a certain certificate of authority; prohibiting authorizing
the Insurance Commissioner from renewing to disapprove renewal of a certain

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