Sec. 5. 25 MRSA §2476, sub-§3, as enacted by PL 1999, c. 652, §9, is amended to read:

3. Inspection of storage magazines and vehicles used to transport explosives. All storage magazines and vehicles used to transport explosives in intrastate commerce must be inspected prior to issuance of a permit. The cost of each fee for an inspection of a storage magazine is $30 $78. The fee for the inspection of a vehicle used to transport explosives is $83 except that the fee for the inspection of a vehicle used to transport fireworks explosives is $98. Reinspection of storage magazines and vehicles used to transport explosives must be conducted upon renewal of a permit.

Sec. 6. PL 2001, c. 343 is repealed.

Sec. 7. Special assessment on fire risks. To provide funds for the State Fire Marshal, 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, 2001 and prior to July 1, 2002;

B. Must be equal to 0.4% 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. Must be separately identified on all premium notices;

D. 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;

E. Except as provided in paragraph D but notwithstanding any other provision of law, does not constitute and may not be reported as a part of the premium as defined in Title 24- A, section 2403; and

F. 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, 2001 and ending June 30, 2002, with each installment equal to at least 1/12 of the estimated total assessment for the fiscal year that begins July 1, 2001.

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 that must be used solely 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. All interest earned on the fund must be paid to the fund.

Sec. 8. Retroactivity. This Act applies retroactively to June 1, 2001.

Sec. 9. Allocation. The following funds are allocated from Other Special Revenue funds to carry out the purposes of this Act.

2001-02 2002-03

PUBLIC SAFETY, DEPARTMENT OF

Fire Marshal - Office of

Personal Services $202,675 $202,675

All Other 107,496 124,861

Capital Expenditures 240,000 260,000

Allocates additional funds to cover increased operating costs.

DEPARTMENT OF PUBLIC SAFETY ________ ________

TOTAL $550,171 $587,536

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

FISCAL NOTE

This bill repeals and replaces Public Law 2001, chapter 343 which authorized certain fee increases that increased dedicated revenue collected by the Department of Public Safety by $550,171 and $733,561 in fiscal years 2001-02 and 2002-03, respectively. Public Law 2001, chapter 343 also included additional Other Special Revenue funds allocations of $550,171 and $587,536 in fiscal years 2001-02 and 2002-03, respectively.

Increasing fire investigation and prevention assessments and fees in this bill will increase dedicated revenue collections. The estimated increases of dedicated revenue to the Office of the State Fire Marshal within the Department of Public Safety are $550,171 and $733,561 in fiscal years 2001-02 and 2002-03, respectively.

This bill also includes Other Special Revenue funds allocations of $550,171 and $587,536 in fiscal years 2001-02 and 2002-03, respectively, for the Office of the State Fire Marshal to cover increased operational costs.

SUMMARY

This emergency bill does the following.

1. It increases certain inspection and permit fees collected by the Office of the State Fire Marshal to more accurately reflect the costs associated with those inspections and permits.

2. It establishes a one-year special assessment to be collected from policyholders of insured fire risks located in the State. This special assessment is designed to provide operating revenues for the Office of the State Fire Marshal for fiscal year 2002.

3. It allocates funds to cover increased operating costs in the Office of the State Fire Marshal.

4. It repeals Public Law 2001, chapter 343 retroactively.