Sec. 1. 37-B MRSA c. 13, sub-c. VI is enacted to read:

SUBCHAPTER VI

EMERGENCY MANAGEMENT PREPAREDNESS AND ASSISTANCE TRUST FUND

§871.__Emergency Management Preparedness and Assistance Trust Fund

1.__Fund established.__There is established the Emergency Management Preparedness and Assistance Trust Fund, referred to in this subchapter as the "fund," to be administered by the Maine Emergency Management Agency, referred to in this subchapter as the "agency."__The fund contains the proceeds of the surcharge deposited under subsection 2 and other funds received by the agency for the purpose of disaster preparedness and education, coordination, assistance and mitigation.

2.__Surcharge.__An annual surcharge is imposed on insurance policies issued or renewed on or after November 1, 1999.

A.__A surcharge of $2 is imposed on each homeowner's, mobile homeowner's, tenant homeowner's and condominium unit insurance policy and an annual $4 surcharge is imposed on every commercial fire, commercial multiple peril and business owner's property insurance policy.

B.__The surcharge must be paid by the policy holder to the insurer.__The insurer shall collect the surcharge and remit it to the Treasurer of State, who shall deposit all amounts received to the fund.

C.__The surcharge is not part of the premium of the insurer.__ Nonpayment of the surcharge by the insured is a valid reason for cancellation of the insurance policy.

3.__Use of fund.__The fund is used as set out in this subsection.

A.__Fifty percent of the amount received from the annual allocation to the fund must be used to implement and administer state and local emergency management programs, including:

(1)__Training and education programs that promote public education on disaster preparedness and recovery; and