An Act To Amend the Law Relating to Multiple-employer Welfare Arrangements (AFTER DEADLINE)
Maine Legislature, Session 121, LD 1605
Committee: Insurance and Financial Services
Sponsors: LaFOUNTAIN, BREAULT, DOUGLASS, MAYO, O'NEIL, SULLIVAN

12lst MAINE LEGISLATURE 
Legislative Document 
No. 1605 
S.P.559 
In Senate, May 7, 2003 
An Act To Amend the Law Relating to Multiple-employer Welfare 
Arrangements 
(AFTER DEADLINE) 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Senator LaFOUNTAIN of York. 
Cosponsored by Representative BREAULT of Buxton and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: DOUGLASS of Androscoggin, MAYO of Sagadahoc, Representatives: O'NEIL of 
Saco, SULLIVAN of Biddeford. 
Printed on recyc led paper 
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 
heal th 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 
multiple-employer 
welfare 
arrangement 
continued 
availability 
of 
health 
insurance 
multiple-employer 
welfare 
arrangement 
to 
Maine 
employees; and 
required 
laws 
to 
to 
ensure 
through 
employers 
the 
the 
the 
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 MRS A §6603, sub·§I, ,C, as enacted by PL 1993, c. 
688, §l, 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 
s~a~e-£esiQea~ licensed administrator or service company to 
administer the day-to-day affairs of the arrangement; 
Sec. 2. 24·A MRSA §6603, sub·§5, as enac ted by PL 1993 , 
c . 
688, §l, 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 
Page l-LR2112(1) 
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. 
B 
SUMMARY 
This bill provides that trust funds of a multiple-employer 
welfare arrangement must be held in this State until disbursed by 
the 
trust. 
It 
removes 
the 
requirement 
that 
a 
3rd-party 
administrator 
of 
a 
multiple-employer 
welfare 
arrangement 
be 
domiciled in this State.