CHAPTER 171

S.P. 496 - L.D. 1490

An Act To Update and Clarify the Law Regarding the

Conversion of a Nonprofit Hospital and Medical Service

Organization to a Domestic Stock Insurer

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 5 MRSA §194, sub-§1, as enacted by PL 2001, c. 550, Pt. A, §1, is amended to read:

1. Definition. As used in this section and sections 194-A to 194-H and section 194-K, "public charity" means an entity formed primarily for charitable purposes, including but not limited to:

A. A corporation formed under Title 13 or Title 13-B primarily for charitable purposes; and

B. A charitable trust.

Sec. 2. 5 MRSA §194-A, sub-§1, ķI, as enacted by PL 1997, c. 344, §1, is amended to read:

I. "Materially changes its form" or "material change in form" means any transaction that the superintendent or Attorney General determines has transferred control of the organization to a noncharitable organization person other than a public charity as defined in section 194, substantially changed the organization's legal or regulatory status or substantially changed the organization's purposes,