H.B. 2

VETOES

(5) THE REPORT OF AUDITED RECEIPTS AND DISBURSEMENTS OF THE
FUND AS REQUIRED UNDER SUBSECTION (R) OF THIS SECTION.

SECTION 3. AND BE IT FURTHER ENACTED, That §§ 3-2A-01, 3-2A-05(h),
and 5-615 of the Courts Article and § 1-401 of the Health Occupations Article, as
enacted by Section 1 of this Act, shall be construed to apply only prospectively and
may not be applied or interpreted to have any effect on or application to any cause of
action arising before the effective date of this Act.

SECTION 4. AND BE IT FURTHER ENACTED, That §§ 3-2A-04(b),
3-2A-06(b), (f), and (i), 3-2A-06C, 3-2A-06D, 3-2A-08A, 8-306, and 9-124 and
3-2A-08A of the Courts Article and § 14-405 of the Health Occupations Article, as
enacted by Section 1 of this Act, shall be construed to apply only prospectively and
may not be applied or interpreted to have any effect on or application to any claim
filed in the Health Claims Arbitration Office or case filed in a court before the
effective date of this Act.

SECTION 5. AND BE IT FURTHER ENACTED, That the Office of Legislative
Audits shall audit the Health Claims Arbitration Fund under § 3-2A-03A of the
Courts Article and the transactions of the Health Claims Arbitration Office to
determine the amount of any money remaining in the Health Claims Arbitration
Fund and any outstanding obligations of the Health Claims Arbitration Office as of
October 1, 2005. On or before December 1, 2005, the Office of Legislative Audits shall
submit a report of the audit, subject to § 2-1246 of the State Government Article, to
the Legislative Policy Committee. On or before January 1, 2006, the Health Claims
Arbitration Office shall return any unspent money identified in the audit report to
the General Fund , on the effective date of this Act, the Health Claims Arbitration
Office shall be renamed the Health Care Alternative Dispute Resolution Office. The
publishers of the Annotated Code of Maryland, in consultation with and subject to the
approval of the Department of Legislative Services, shall correct all references in the
Code to the Health Claims Arbitration Office, including any references enacted in this
Act, that are rendered incorrect by this Section.

SECTION 6. AND BE IT FURTHER ENACTED, That, notwithstanding any
other provision of law, the premium tax imposed under § 6-102 of the Insurance
Article, as enacted by Section 1 of this Act, shall be applicable to:

(1)     capitation payments, supplemental payments, and bonus payments,
made to managed care organizations on or after January 1, 2005; and

(2)     subscription charges or other amounts paid to a health maintenance
organization on or after January 1, 2005, regardless of when the policy, contract, or
health benefit plan as to which the payment was made was issued, delivered, or
renewed.

SECTION 7. AND BE IT FURTHER ENACTED, That § 19-104(c) of the
Insurance Article, as enacted by Section 1 of this Act, shall apply to all health care
provider professional liability insurance policies and contracts issued, delivered, or
renewed after the effective date of this Act.

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