Marvin Mandel, Governor                         105

such recommendations for amendments to this article as the Execu-
tive Director deems proper. Such report shall include a balance
sheet of the moneys in the fund in which there shall be provided, if
possible, a reserve against the liability in future years to pay
benefits in excess of the then current contributions, which reserve
shall be set up by the Executive Director in accordance with accepted
actuarial principles on the basis of statistics of employment, business
activity, and other relevant factors for the longest possible period.
Whenever the Executive Director believes that a change in contri-
bution or benefit rates will become necessary to protect the solvency
of the fund, he shall promptly so inform the Secretary of Employment
and Social Services, who shall inform the Governor and the legisla-
ture, and make recommendations with respect thereto.

(e) The Secretary of Employment and Social Services, with the
approval of the Governor, shall appoint a State Advisory Council
and the Executive Director shall appoint [a] local advisory coun-
cils, composed in each case of an equal number of employer repre-
sentatives and employee representatives who may be fairly regarded
as representative because of their vocation, employment, or affilia-
tions, and of such members representing the general public as the
Executive Director may designate. Such councils shall aid the Execu-
tive Director in formulating policies and discussing problems related
to the administration of this article and in assuring impartiality and
freedom from political influence in the solution of such problems.
Such advisory councils as are appointed by the Executive Director
shall serve without compensation, but shall be reimbursed for
any necessary expenses. Such advisory councils as are appointed
by the [Governor] Secretary of Employment and Social Services
shall receive a per diem allowance of thirty dollars ($30.00) for each
day not to exceed $1,000 per year in which the council is in session,
plus hotel and necessary travel expenses. As the terms of the present
members of the State Advisory Council terminate, the Secretary of
Employment and Social Services, with the approval of the Governor,
shall appoint a person to a term of six years. Any vacancy occurring
during a term shall be filled [by the Governor] for the unexpired
portion of the term. Nothing in this subsection, however, shall be
construed to prohibit the reappointment to the State Advisory Council
of any person who has already served thereon. [The indefinite
terms of the members of the State Advisory Council who are in
office on June 1, 1953 shall be terminated as of that time.]

12A.

The exercise of all authority, duties, and functions vested in the
Employment Security Administration or the Executive Director
thereof by the provisions of this Article or by any other laws of this
State shall be subject to the authority of the Secretary of Employ-
ment and Social Services as set forth in Article 41 of this Code or
elsewhere in the laws of Maryland.

Sec. 3. And be it further enacted by the General Assembly of
Maryland, That Sections 1, 2 (a), (b), (c), 3 (f), (g), 4A (a), (c),
5, 14 (c), (d), (e), 14A, and 20 of Article 88A of the Annotated
Code of Maryland (1957 Edition and 1969 Replacement Volume),
title "State Department of Social Services," subtitles "In General"
and "Child Care," be and they are hereby repealed and re-enacted,
with amendments; and that new Sections 1 (d) and 1 (e) be and