MARVIN MANDEL, Governor                        1115

208.

(a) Except as to premiums on lawfully procured surplus insur-
ance and premiums on independently procured insurance on which
a tax has been paid pursuant to Section [211] 209 of this Article,
every unauthorized insurer shall pay to the Commissioner before
March 1 next succeeding the calendar year in which the insurance
was so effectuated, continued or renewed a premium receipts tax of
three percent (3%) of gross premiums charged for such insurance,
other than wet marine and transportation insurance as defined in
Section 70 (2) of this Article, on subjects resident, located or to be
performed in this State. Such insurance on subjects resident, located
or to be performed in this State procured through negotiations or
an application, in whole or in part occurring or made within or
from within or outside of this State, or for which premiums in
whole or in part are remitted directly or indirectly from within or
outside of this State, shall be deemed to be insurance procured or
continued or renewed in this State. The term "premium" includes
all premiums, membership fees, assessments, dues and any other
consideration for insurance. Such tax shall be in lieu of all taxes and
fire department dues. On default of any such unauthorized insurer
in the payment of such tax the insured shall pay the tax. If the tax
prescribed by this section is not paid within the time stated, the
tax shall be increased by a penalty of twenty-five percent (25%)
and by the amount of an additional penalty computed at the rate of
one percent per month or any part thereof from the date such pay-
ment was due to the date paid. The moneys paid into the Maryland
State Treasury from time to time under this section shall be placed
in a special fund for the purposes of the Maryland Insurance Devel-
opment Fund.

Sec. 10. And be it further enacted, That this Act shall take effect
July 1, 1969. JUNE 1, 1969, BUT SHALL BE RETROACTIVE TO
AUGUST 1, 1968 INSOFAR AS NECESSARY TO COMPLY WITH
THE REQUIREMENTS OF THE URBAN PROPERTY PROTEC-
TION AND REINSURANCE ACT OF 1968.

Approved May 2, 1969.

CHAPTER 437
(Senate Bill 35)

AN ACT to repeal and re-enact, with amendments, Section 28 of
Article 73B of the Annotated Code of Maryland (1967 Replace-
ment Volume), title "Pensions," subtitle "Employees of Municipal
Corporations," to establish a moratorium of one year beginning
July 1, 1969, during which municipal corporations and other
corporate bodies or associations participating in the State Em-
ployees' Retirement System shall be prohibited from withdrawing
in whole or in part from said system, WITH THE MORATORIUM
NOT APPLICABLE, HOWEVER, TO SUPPLEMENTAL INDI-
VIDUAL OR GROUP WITHDRAWALS OF OFFICERS AND
EMPLOYEES TO A LOCAL RETIREMENT SYSTEM WHICH
WAS ESTABLISHED AND UNDER WHICH INITIAL TRANS-
FERS WERE MADE PRIOR TO JANUARY 1, 1969.