March 9, 1999

Mr. Speaker:

Your CONSUMER AND PUBLIC AFFAIRS COMMITTEE, to whom has been referred

SENATE BILL 403, as amended

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

1. Strike Senate Corporations and Transportation Committee Amendment 1.

2. On page 1, line 25, strike "substantially".

3. On page 2, line 4, after "deficient" insert "or improper".

4. On page 2, line 6, strike "and" and insert in lieu thereof "or".

5. On page 2, line 9, strike "adjudication and payment" and insert in lieu thereof "timely payment from being made by the health maintenance organization".

6. On page 3, line 9, after "that" strike the remainder of the line, strike all of lines 10 through 12 and insert in lieu thereof:

"has the effect of relieving either party of liability for its actions or inactions.

E. By December 1, 1999, the insurance division shall promulgate rules to require health maintenance organizations to provide timely notice to providers of claims received, whether the claims are submitted electronically or manually by the provider. The rule shall apply to private and governmental plans."".

Respectfully submitted,

Patsy Trujillo Knauer, Chairwoman

Adopted Not Adopted

(Chief Clerk) (Chief Clerk)

The roll call vote was 4 For 0 Against

Yes: 4

Excused: Hamilton, Hawkins, Vaughn

Absent: None

.128637.2

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