CHAPTER 374
S.P. 559 - L.D. 1605
An Act To Amend the Law Relating to Multiple-employer Welfare Arrangements
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the Legislature authorizes employers to secure health insurance through multiple-employer welfare arrangements; and
Whereas, there are few options available to employers to secure health insurance for their employees; and
Whereas, multiple-employer welfare arrangements provide health insurance to thousands of Maine residents, and that health insurance should not be disrupted; and
Whereas, technical changes are required to the multiple-employer welfare arrangement laws to ensure the continued availability of health insurance through the multiple-employer welfare arrangement to Maine employers and employees; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §6603, sub-§1, ¶C, as enacted by PL 1993, c. 688, §1, is amended to read:
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.
Effective May 30, 2003.
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