Public Laws of 2001 as Passed at 2nd Regular Sess. of 120th Legislature

PRIVATE & SPECIAL LAWS
Second Regular Session of the 120th

CHAPTER 67
H.P. 1704 - L.D. 2201

An Act to Provide Funding for the Office of the State Fire Marshal and the Maine Fire Training and Education Program

Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas, an immediate increase in revenue is required to prevent the curtailing of staff and services of the Office of the State Fire Marshal and the Maine Fire Training and Education Program; 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. Special assessment on fire risks. To provide funds for the State Fire Marshal and the Maine Fire Training and Education Program, every fire insurance company or association that does business or collects premiums or assessments in the State shall collect pursuant to this section a special assessment from policyholders of insured fire risks located in the State.

1. Special assessment. The special assessment:

A. Must be collected on insured policies on all fire risks located in the State issued or renewed on or after July 1, 2002 and prior to July 1, 2003;
B. Must be equal to 0.6% of the gross direct premiums for fire risks written in the State, less the amount of all direct return premiums thereon and all dividends paid to policyholders on direct fire premiums;
C. Is a part of the insurance premium only for purposes of those portions of the Maine Revised Statutes, Title 24-A, including chapter 41, subchapter V relating to cancellation or nonrenewal of insurance coverage;
D. Except as provided in paragraph C but notwithstanding any other provision of law, does not constitute and may not be reported as part of the premium as defined in Title 24-A, section 2403;
E. Must be paid as provided for insurance premium taxes as specified in Title 36, section 2521-A, except that the assessment must be paid on an estimated basis at the end of each month, starting July 31, 2002 and ending June 30, 2003, with each installment equal to at least 1/12 of the estimated total assessment for the fiscal year that begins July 1, 2002; and
F. Must end prior to June 30, 2003 if the assessment generates revenues of $983,000 before that date. The State Tax Assessor shall immediately notify carriers of the termination of the assessment.

2. Credit. Beginning July 1, 2003, every fire insurance company or association that does business or collects premiums or assessments in the State that paid the special assessment in section 1 after July 1, 2002 may take a credit against its premium tax owed under Title 36, chapter 357 equal to the special assessment paid in the same month the previous year.

Sec. 2. Fund. The State Tax Assessor shall pay over all receipts from the special assessment to the Treasurer of State daily. The Treasurer of State shall deposit all special assessments collected pursuant to this section into a separate nonlapsing fund of which 75.7% must be used to defray the expenses incurred by the Commissioner of Public Safety in administering all fire preventative and investigative laws and rules and in educating the public in fire safety and to carry out the administration and duties of the Office of the State Fire Marshal. Of the funds, 24.3% must be used to defray the expenses of the Maine Fire Training and Education Program established in the Maine Revised Statutes, Title 20-A, chapter 319. The Department of Public Safety may apply for any available grants and accept any gifts, grants or donations to assist in developing and maintaining the fund.

Sec. 3. Appropriations and allocations. The following appropriations and allocations are made.

PUBLIC SAFETY, DEPARTMENT OF
Office of the State Fire Marshal

Initiative: Allocates funds for additional salary and operating costs.
Other Special Revenue Funds 2001-02 2002-03
Personal Services $0 $375,011
All Other 0 228,630
Capital Expenditures 0 140,500