HARRY W. NICE, GOVERNOR. 831

mission shall have power on or before the first day of January
of each year to reclassify such industries, or oftener, if, in
the opinion of the Commission, the same should be deemed
just and advantageous; or to create additional classifications
with respect to their respective degrees of hazard and de-
termine the risk of the different classes, and fix the rate of
premium for each class, according to the risks of the same
sufficiently large to guarantee a workmen's compensation fund
from year to year. It shall be the duty of the Commission in
determining the rates, in order to create a fund sufficiently
large to guarantee a workmen's compensation fund from year
to year to also re-classify from time to time the industries or
occupations, in order that there may be a flexible adjustment
of the rates as the hazard fluctuates, and to use all means in
their power through the rate adjustment to lessen the oppor-
tunities for injuries to the workmen. The classification so
determined and the rates of premium established shall be ap-
plicable for such year unless a reclassification should, in the
opinion of the Commission, necessitate a change of rate within
such year; and based on each one hundred dollars of the gross
annual payroll of each employer in any class; provided, also,
that for the purpose of this sub-title, the pay of the employee
partly within and partly without the State shall be deemed
to be such proportion of the total pay of such employee as his
service within the State bears to his service outside the State.

The State Industrial Accident Commission shall have the
power to apply that form of rating system in the establish-
ment of premiums which, in its judgment, is best calculated
to merit or individually rate the risk most equitably, predi-
cated upon the basis of its individual industrial accident ex-
perience, and to encourage and stimulate accident prevention;
and shall develop fixed and equitable rules controlling such
merit or individual rates. The Commission shall also have
power to establish and fix minimum premiums to be paid by
any employer insured or insuring in the State Accident Fund,
and to require the payment of estimated premiums in advance.

The Commission, in its administration of the State Accident
Fund, shall have the power to declare dividends to the sub-
scribers or policyholders in the fund, either in the form of
cash refunders or credits, when the financial condition of the
fund is such, in the judgment of the Commission, as to make
such dividend declaration warranted and advisable.

SEC. 2. And be it further enacted, That this Act shall take
effect June 1, 1937.

Approved May 18, 1937.