Sec. 1. 24-A MRSA §606 is enacted to read:

§606.__Return 1% of insurer profits

Every insurance company or association that does business in the State shall pay annually to the Fire Protection Services Fund, established in Title 30-A, section 3158, an amount equal to 1% of the insurer's net profit on contracts written on risks located or resident in this State.

Sec. 2. 30-A MRSA §3158 is enacted to read:

§3158.__Fire Protection Services Fund

1.__Fund established.__The Fire Protection Services Fund, referred to in this section as "the fund," is created in the State Treasury as a dedicated account for the support of municipal fire protection.

2.__Deposits.__The Treasurer of State shall deposit into the fund the income generated from insurer payments pursuant to Title 24-A, section 606 and such other amounts as may be expressly required by law to be so credited.__All income must be deposited into the fund, which may not lapse but must be carried forward from one fiscal year to the next.

3.__Expenditures.__The Treasurer of State shall equally distribute the amount in the fund among municipalities that have established municipal fire departments.

SUMMARY

This bill requires insurers doing business in this State to return 1% of their net profits to the State. The bill also requires that those funds be distributed equally among municipalities that have established a municipal fire department for fire protection services.