| |
C. If the organization materially changes its form after | December 31, 2005, then 90% of the fair market value of the | organization as of the date of the material change in form is | owned by the charitable trust upon the approval or approval | with modifications of the charitable trust plan or modified | charitable trust plan by the court pursuant to subsection 5 or | 6 and must be dedicated to the fulfillment of the charitable | trust; and the remaining 10% is owned by subscribers in | aggregate. For purposes of this paragraph, subscribers | include only those persons who were subscribers on any date in | the 3-year period immediately prior to the material change in | form, if in each case the person was a subscriber for period | of no less than 3 consecutive months. |
|
| | | Sec. 4. 5 MRSA §194-A, sub-§3, as enacted by PL 1997, c. 344, §1, is | | repealed. |
|
| | | Sec. 5. 5 MRSA §194-A, sub-§5, ¶B, as enacted by PL 1997, c. 344, §1, | | is amended to read: |
|
| | | B. An organization may not convert to a domestic stock | | insurer under Title 24, section 2301, subsection 9-D until | | the Superior Court has approved or approved with | | modifications the organization's charitable trust plan. The | | court may not approve or approve with modifications the | | charitable trust plan unless it finds that the charitable | | trust plan meets the following requirements. |
|
| | | (1) The plan must describe the charitable trust or | | trusts that will receive the ownership interest in the | | organization following its conversion to a domestic | | stock insurer. For purposes of this section, a | | charitable trust: |
|
| | (a) Must be a new or existing trust or nonprofit | | public benefit corporation formed under the laws | | of this State, but may not include the | | organization or any person controlled by the | | organization; |
|
| | | (b) Must be a charitable entity that qualifies | | for federal income tax exemption under the United | | States Internal Revenue Code of 1986, as amended, | | Section 501 (c)(3) or (c)(4); |
|
| | | (c) May not be controlled by the converted | | domestic stock insurer; |
|
|
