Whereas, assessments on workers' compensation insurance companies by the Workers' Compensation Board for the following fiscal year must be made prior to May 1st; and

Whereas, it is necessary to have an increase of those assessments go into effect prior to May 1st; 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. 39-A MRSA §154, sub-§6, as amended by PL 1999, c. 359, §1, is further amended to read:

6. Assessment levied. The assessments levied under this section may not be designed to produce more than $6,000,000 in revenues annually beginning in the 1995-96 fiscal year, more than $6,600,000 annually beginning in the 1997-98 fiscal year or more than $6,735,000 beginning in the 1999-00 fiscal year. Beginning in the 2001-02 fiscal year, the maximum assessment must be annually increased as follows: the portion of the board's budget designated "All Other" must be increased by a factor equal to the inflation factor set by the Revenue Forecasting Committee pursuant to Title 5, section 1710-G and the portion of the board's budget designated "Personal Services" must be increased by an amount equal to increases in employee salaries and benefits. Assessments collected that exceed $6,000,000 beginning in the 1995-96 fiscal year, $6,600,000 beginning in the 1997-98 fiscal year or $6,735,000 beginning in the 1999-00 the maximum assessment in a fiscal year by a margin of more than 10% must be refunded to those who paid the assessment. Any amount collected above the board's allocated budget and within the 10% margin must be used to create a reserve of up to 1/4 of the board's annual budget. Any collected amounts or savings above the allowed reserve must be used to reduce the assessment for the following fiscal year. The board shall determine the assessments prior to May 1st and shall assess each insurance company or association and self-insured employer its pro rata share for expenditures during the fiscal year beginning July 1st. Each self-insured employer shall pay the assessment on or before June 1st. Each insurance company or association shall pay the assessment in accordance with subsection 3.