Ch. 262

2004 LAWS OF MARYLAND

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section(s) 15-101(d) and 15-305; and 20-501 through 20-510 and
the subtitle "Subtitle 5. Maryland Health Care Foundation" of Article - Health -
General of the Annotated Code of Maryland be repealed.

SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 2 of Chapter
701 of the Acts of the General Assembly of 2001 be repealed.

SECTION 3. AND BE IT FURTHER ENACTED, That Section(s) 15-101(e), (f),
(g), (h), (i), (j), and (k), respectively, of Article - Health - General of the Annotated
Code of Maryland be renumbered to be Section(s) 15-101(d), (e), (f), (g), (h), (i), and (j),
respectively.

SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - State Government

6.5-301.

(b) An acquisition is not in the public interest unless appropriate steps have
been taken to:

(1)     ensure that the value of public or charitable assets is safeguarded;

(2)     ensure that:

(i) the fair value of the public or charitable assets of a nonprofit
health service plan or a health maintenance organization will be distributed to the
[Maryland Health Care Foundation that was established in § 20-502 of the Health -
General Article] MARYLAND HEALTH CARE TRUST ESTABLISHED UNDER § 6.5-101 OF
THIS ARTICLE TITLE; or

(ii) 1. 40% of the fair value of the public or charitable assets of a
nonprofit hospital will be distributed to the [Maryland Health Care Foundation that
was established in § 20-502 of the Health - General Article] MARYLAND HEALTH
CARE TRUST ESTABLISHED UNDER § 6.5-401 OF THIS ARTICLE TITLE; and

2. 60% of the fair value of the public or charitable assets of a
nonprofit hospital will be distributed to a public or nonprofit charitable entity or trust
that is:

A.      dedicated to serving the unmet health care needs of the
affected community;

B.      dedicated to promoting access to health care in the
affected community;

C.      dedicated to improving the quality of health care in the
affected community; and

D.      independent of the transferee;

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