SCS/SB 851 - Any Health Service Organization regulated under Chapter 354, RSMo, may restructure by conveying a substantial amount of its assets (but not substantially all) to a for-profit corporation. The nonprofit status of a restructuring corporation shall not be affected by the restructuring or by any dividends received from the corporation receiving the assets.

For-profit corporations formed by restructured entities may issue public or private stock. The board of directors of for- profit subsidiaries must be independent from the board of the parent corporation, with only one "liaison director" on both boards.

ASSESSMENT - Restructuring corporations shall be assessed at the time of a stock offering. The assessment shall be calculated as the statutory net worth of the company, less four deductions: (1) net worth of subsidiaries paying premium taxes; (2) net worth generated outside the state; (3) net worth not transferred; & (4) net worth of the company in 1986.

USE OF MONEY - The assessment shall be paid over a 20-year period to be spent as agreed by the Department of Insurance and the regulated entity. A foundation may be established. An advisory committee of two Senators and two Representatives may offer suggestions as to the spending of the assessment proceeds.
MIKE HOEFERKAMP

SA 1 (KLARICH) - REQUIRES HMOs TO PROVIDE CERTAIN INFORMATION TO ENROLLEES AND PROSPECTIVE ENROLLEES; DEFINES "EMERGENCY."