ROBERT L. EHRLICH, JR., Governor                              S.B. 29

(2)     [On or before June 1, 2004, the board shall submit the proposed
guidelines developed under paragraph (1)(ii) of this subsection to the Commissioner
for review and approval.

(3)     (i) The Commissioner shall review the proposed 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.

(4)     If the Commissioner disapproves the proposed guidelines, the board
shall revise and submit new proposed guidelines that meet the Commissioner's
approval.

(5)] 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].

[(6)] (3) The board shall:

(i) provide a copy of the approved guidelines:

1.       to each officer and executive of the nonprofit health
service plan; [and]

2.       to each candidate for an officer or executive position with
the nonprofit health service plan; and

3.       ON OR BEFORE SEPTEMBER 1, 2004, AND ANNUALLY
THEREAFTER TO THE COMMISSIONER; AND

(ii) adhere to the approved guidelines in compensating the officers
and executives of the nonprofit health service plan.

[(7)] (4) On an annual basis, the Commissioner shall review the
compensation paid by the nonprofit health service plan to each officer and executive.

[(8)] (5) 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)(8)] (D)(5) 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.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be
construed to apply retroactively and shall be applied to and interpreted to affect the
authority of the Maryland Insurance Commissioner over compensation guidelines for
officers and executives of nonprofit health service plans on or after June 6, 2003.

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