(b) The price of any shares to be issued pursuant to the optional provisions of a conversion plan permitted by paragraph G.

Sec. 17. 24 MRSA §2308-A, sub-§1, śC, as enacted by PL 1997, c. 344, §5, is amended to read:

C. "Nonprofit hospital and medical service organization" or "organization" means a corporation or other entity authorized by the superintendent and organized pursuant to this chapter for the purpose of providing nonprofit hospital service plans within the meaning of section 2301, subsection 1 and, nonprofit medical service plans within the meaning of section 2301, subsection 2. It does not include and any organization that provides only nonprofit health care plans within the meaning of section 2301, subsection 3 or a health insurance affiliate.

SUMMARY

This bill is intended to implement the requirements of Public Law 2001, chapter 550, which directed the Superintendent of Insurance to submit legislation to the 121st Legislature not later than January 1, 2003, to clarify that 100% of the net proceeds of a charitable organization covered by the nonprofit health and medical services organization conversion law are deemed public assets and to make any other changes the superintendent considers appropriate. The proposed amendments include technical corrections to ensure consistency with Public Law 2001, chapter 550 as well as provide clarification that 100% of the net proceeds of any such conversion are public assets.