Ch. 357                                    2003 LAWS OF MARYLAND

(I) IDENTIFY NONPROFIT HEALTH SERVICE PLANS IN THE UNITED
STATES THAT ARE SIMILAR IN SIZE AND SCOPE TO THE NONPROFIT HEALTH SERVICE
PLAN MANAGED BY THE BOARD;

(II) DEVELOP PROPOSED GUIDELINES FOR COMPENSATION;
INCLUDING SALARY, BONUSES, AND PERQUISITES, OF ALL SENIOR EXECUTIVES
THAT IS REASONABLE IN COMPARISON TO COMPENSATION FOR SENIOR EXECUTIVES
OF SIMILAR NONPROFIT HEALTH SERVICE PLANS; AND

(III) ON OR BEFORE JUNE 1, 2004, SUBMIT THE PROPOSED
GUIDELINES TO THE COMMISSIONER FOR REVIEW AND APPROVAL.

(2) (I) THE COMMISSIONER SHALL REVIEW THE PROPOSES
GUIDELINES AND, WITHIN 60 DAYS, APPROVE OR DISAPPROVE THE PROPOSED
GUIDELINES.

(II) FAILURE OF THE COMMISSIONER TO ACT ON THE PROPOSED
GUIDELINES WITHIN 60 DAYS SHALL CONSTITUTE APPROVAL.

(3) IF THE COMMISSIONER DISAPPROVES THE PROPOSED GUIDELINES,
THE BOARD SHALL REVISE AND SUBMIT NEW PROPOSED GUIDELINES THAT MEET
THE COMMISSIONER'S APPROVAL.

(4) THE BOARD SHALL REVIEW THE PROPOSED GUIDELINES AT LEAST
ANNUALLY AND, IF THE BOARD FINDS THAT CHANGES ARE NEEDED, THE BOARD
SHALL SUBMIT THE CHANGES TO THE COMMISSIONER IN ACCORDANCE WITH
PARAGRAPHS (1) THROUGH (3) OF THIS SUBSECTION.

(5) THE BOARD SHALL:

(I) PROVIDE A COPY OF THE APPROVED GUIDELINES:

1. TO EACH SENIOR EXECUTIVE; AND

2. TO EACH CANDIDATE FOR A SENIOR EXECUTIVE
POSITION; AND

(II) ADHERE TO THE APPROVED GUIDELINES IN COMPENSATING
THE SENIOR EXECUTIVES OF THE NONPROFIT HEALTH SERVICE PLAN.

(6) ON AN ANNUAL BASIS, THE COMMISSIONER SHALL REVIEW THE
COMPENSATION PAID BY THE NONPROFIT HEALTH SERVICE PLAN TO EACH SENIOR
EXECUTIVE.

(7) IF THE COMMISSIONER FINDS THAT THE COMPENSATION EXCEEDS
THE AMOUNT AUTHORIZED UNDER THE APPROVED GUIDELINES, THE
COMMISSIONER SHALL ISSUE AN ORDER PROHIBITING PAYMENT OF THE EXCESS
AMOUNT.

(E) THE APPROVAL OR RECEIPT OF REMUNERATION IN VIOLATION OF AN
ORDER ISSUED UNDER SUBSECTION (D)(7) OF THIS SECTION IS A VIOLATION OF
§ 14-115(C) OF THIS SUBTITLE AND SHALL BE CONSIDERED AN UNSOUND OR UNSAFE
BUSINESS PRACTICE UNDER § 14-116 OF THIS SUBTITLE.

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