The Department of Administrative and Financial Services shall submit a report to the First Regular Session of the 125th Legislature on revenue to the fund, expenditures from the fund, any balance remaining in the fund as of the close of the prior fiscal year and a projection of funding needs for the next 5 years.__The report must provide options, based on projections of future need, for changing the method of funding the subsidy, which may include an increase, elimination or decrease of the premium tax rate under Title 36, section 2513-C, employee contributions or both.

Sec. A-2. 36 MRSA §2513-C is enacted to read:

§2513-C.__Additional tax on premium

1.__Tax imposed.__In addition to the tax imposed in section 2513, a tax of .50% is imposed on gross direct premiums on contracts written or risks located or resident in the State for the following types of insurance:

A.__Private passenger car liability or physical damage;

B.__Commercial auto liability, no-fault or physical damage;

C.__Homeowners multiple peril;

D.__Commercial or farm owners multiple peril;

E.__Allied lines;

F.__Inland marine;

G.__Aircraft multiple peril;

H.__Boiler and machinery;

I.__Fire;

J.__Burglary and theft;

K.__Ocean marine; and

L.__Other liability insurance.

2.__Collection and deposit of tax.__The State Tax Assessor shall collect the tax imposed by this section and shall deposit receipts in the Retired Law Enforcement Officer and Firefighter