C. Must be operated pursuant to a trust agreement by a board of trustees that has complete fiscal control over the arrangement and that is responsible for all operations of the arrangement. The trustees selected must be owners, partners, officers, directors or employees of one or more employers in the arrangement. A trustee may not be an owner, officer or employee of the administrator or service company of the arrangement. The trustees have the authority to approve applications of association members for participation in the arrangement and to contract with a state resident licensed administrator or service company to administer the day-to-day affairs of the arrangement;

Sec. 2. 24-A MRSA §6603, sub-§5, as enacted by PL 1993, c. 688, §1, is amended to read:

5. Funds held in trust. All funds of a multiple-employer welfare arrangement must be held in trust in this State in the name of the arrangement in a qualified financial institution by state or federally chartered financial institutions until such time as they are disbursed.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.