ROBERT L. EHRLICH, JR., Governor

H.B. 2

(4) SUBSIDIZE THE COSTS INCURRED BY THE COMMISSIONER TO
ADMINISTER THE FUND.

(D)     THE COMMISSIONER SHALL ADMINISTER THE FUND.

(E)      THE FUND IS A SPECIAL NONLAPSING FUND THAT IS NOT SUBJECT TO §
7-302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.

(F)      THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY AND THE
COMPTROLLER SHALL ACCOUNT FOR THE FUND.

(G)     THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND IN THE
SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED.

(H) THE DEBTS AND OBLIGATIONS OF THE FUND ARE NOT DEBTS AND
OBLIGATIONS OF THE STATE OR A PLEDGE OF THE FULL FAITH AND CREDIT OF THE
STATE.

(I) NOTWITHSTANDING § 2-114 OF THIS ARTICLE:

(1)      THE COMMISSIONER SHALL DEPOSIT THE REVENUE FROM THE TAX
IMPOSED ON HEALTH MAINTENANCE ORGANIZATIONS AND MANAGED CARE
ORGANIZATIONS UNDER § 6-102 OF THIS ARTICLE IN THE FUND;

(2)      SUBJECT TO ITEMS (3) AND (4) OF THIS SUBSECTION, THE FUND
SHALL CONSIST OF:

(I)       THE REVENUE FROM THE TAX IMPOSED ON MANAGED CARE
ORGANIZATIONS AND HEALTH MAINTENANCE ORGANIZATIONS UNDER § 6-102 OF
THIS ARTICLE SHALL BE DEPOSITED IN THE FUND;

(II)     INTEREST OR OTHER INCOME EARNED ON THE MONEYS IN THE
FUND; AND

(III)    ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTED FOR
THE BENEFIT OF THE FUND;

(3)      THE COMMISSIONER SHALL DISTRIBUTE FROM THE FUND AN
AMOUNT, NOT TO EXCEED 0.5% OF THE TOTAL REVENUE COLLECTED IN EACH YEAR,
SUFFICIENT TO COVER THE COSTS OF ADMINISTERING THE FUND; AND

(4)      AFTER DISTRIBUTING THE AMOUNTS REQUIRED UNDER ITEM (3) OF
THIS SUBSECTION, THE REVENUE REMAINING IN THE FUND SHALL BE ALLOCATED
ACCORDING TO THE FOLLOWING SCHEDULE:

(I) IN FISCAL YEAR 2005, $6,000,000 TO THE MEDICAL ASSISTANCE
PROGRAM ACCOUNT;

(I) (II) IN FISCAL YEAR 2006:

1. $40,700,000 TO THE RATE STABILIZATION ACCOUNT TO
SUBSIDIZE AGREEMENTS FOR CALENDAR YEAR 2005; AND

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