HARRY W. NICE, GOVERNOR. 957

And the Commission shall have power on or before the
first day of January of each year to reclassify such indus-
tries, or oftener, if, in the opinion of the Commission, the
same should be deemed just and advantageous; or to cre-
ate additional classifications with respect to their respec-
tive degrees of hazard and determine the risk of the dif-
ferent classes, and fix the rates 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 deter-
mining the rates, in order to create a fund sufficiently
large to guarantee a workmen's compensation fund from
year to year to also reclassify from time to time the in-
dustries or occupations, in order that there may be a flexi-
ble adjustment of the rates as the hazard fluctuates^and
to use all means in their power through the rate adjust-
ment to lessen the opportunities for injuries to the work-
men. The classification so determined and the rates of
premium established shall be applicable for such year un-
less a reclassification should, in the opinion of the Com-
mission, necessitate a change of rate within such year; and
based on each one hundred dollars of the gross annual pay-
roll 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 services outside the
State. The State Industrial Accident Commission shall
have the power to apply that form of rating system in the
establishment of premiums which, in its judgment, is best
calculated to merit or individually rate the risk most equi-
tably, predicated upon the basis of its individual indus-
trial accident experience, and to encourage and stimulate
accident prevention; and shall develop fixed and equitable
rules controlling such merit or individual rates.

The Commission, in its administration of the State Ac-
cident Fund, shall have the power to declare dividends to
the subscribers or policy holders 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 Com-
mission, as to make such dividend declaration warranted
and advisable.

SEC. 2. And be it further enacted, That this Act shall
take effect on June 1, 1935.

Approved May 17, 1935,