LD 1490
pg. 7
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LR 1914
Item 1

 
and distributions may be made to a for-profit owner
consistent with this subparagraph but may not be
considered to fulfill the health insurance affiliate's
purposes as described in this paragraph.

 
(3) If the nonprofit hospital and medical service
organization holding an ownership interest in a health
insurance affiliate materially changes its form and the
Superior Court has approved or approved with
modifications a charitable trust plan or modified
charitable trust plan, the purposes as described in
this paragraph of the health insurance affiliate
terminate unless the Superior Court determines
otherwise.

 
C. Any charitable entity public charity that owns or
controls an ownership interest in a health insurance
affiliate must be treated as having acquired that ownership
interest in furtherance of the charitable purposes of the
charitable entity public charity.

 
D. The Attorney General may enforce the purposes as
described in paragraph B of a health insurance affiliate
under this subsection under the Attorney General's
charitable authority to the same extent as if the health
insurance affiliate were a nonprofit and charitable
organization public charity.

 
Sec. 9. 24 MRSA §2301, first ¶, as amended by PL 1993, c. 702, Pt. A,
§1, is further amended to read:

 
Any corporation organized under special Act of the Legislature
or, under Title 13, chapter 81 or as a public benefit corporation
under Title 13-B for the following purposes may be authorized by
the superintendent on the terms and conditions provided for in
this chapter, except that when such a corporation was previously
organized by special Act of the Legislature, this chapter does
not apply when inconsistent with that Act as previously amended:

 
Sec. 10. 24 MRSA §2301, sub-§3-C, as enacted by PL 1997, c. 344, §2,
is amended to read:

 
3-C. Nonprofit purposes. A nonprofit hospital and medical
service organization that is authorized to provide nonprofit
hospital service plans under subsection 1 and, nonprofit medical
service plans pursuant to subsection 2 or nonprofit health care
plans pursuant to subsection 3 is a charitable and benevolent
institution, in accordance with Title 5, section 194-A, and a
public charity and its assets are held for the purpose of


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