Sec. 4. 24-A MRSA §6305, sub-§1, ¶C, as enacted by PL 1989, c. 931, §5, is amended to read:

C. The amount of the assessment for policy years beginning on or after July 1, 1991, is 50% of the amount of the savings determined under paragraph A, but not exceeding $500,000. This paragraph is repealed June 30, 2006.

Sec. 5. 24-A MRSA §6305, sub-§1, ¶D, as enacted by PL 1989, c. 931, §5, is repealed.

Sec. 6. 24-A MRSA §6305, sub-§2, as amended by PL 1999, c. 668, §113, is repealed.

Sec. 7. 24-A MRSA §6305, sub-§3 is enacted to read:

3.__Assessment rates; program fund balance.__For assessment years prior to July 1, 2006, the assessment is 1.25% of premium.__ For assessment years commencing July 1, 2006 and after, the assessment is .75% of premium unless adjusted pursuant to this subsection.__The assessment rate is intended to result in collections no greater than $500,000 per assessment year.__When the program fund balance is $50,000 or less, the assessment rate must increase to 1% of premium.__When the program fund balance is more than $50,000, the assessment rate must decrease to .75% of premium.__The superintendent shall notify affected parties of any assessment rate adjustment and the effective date of that adjustment.

The program fund balance may be used to pay assistance to qualified eligible physicians in prior years for which there were insufficient funds.__If all prior years' eligible qualified physicians have received assistance, any excess funds must be carried forward to subsequent plan years as part of the program fund balance.__Excess funds must be applied first to the assessment year commencing July 1, 1998 and then to each successive assessment year.

For the purposes of this section, "program fund balance" means the total funds collected in excess of assistance paid for all years.

Sec. 8. 24-A MRSA §6306, as enacted by PL 1989, c. 931, §5, is amended to read:

§6306. Funds held by insurers