HARRY HUGHES, Governor

2943

74.

It shall be the duty of the commissioners of the State
Accident Fund to classify any industries subject to this
article mentioned or not mentioned which are insured in the
State Accident Fund. And the commissioners 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 commissioners, the same should be deemed just and
advantageous; or to create additional classifications with
respect to their respective degrees of hazard and determine
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
commissioners 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 reclassify 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 opportunity for
injuries to the workmen. The classification so determined
and the rates of premium established shall be applicable for
such year unless a reclassification should, in the opinion
of the commissioners, 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' subtitle, 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 commissioners shall have
the power to apply that form of rating system in the
establishment of premiums which, in their judgment, is best
calculated to merit or individually rate the risk most
equitably, predicated upon the basis of their individual
industrial accident experience, and to encourage and
stimulate accident prevention; and shall develop fixed and
equitable rules controlling such merit or individual rates.
The commissioners 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 the estimated premiums in advance. THE GOVERNOR,
WITH THE ADVICE OF THE COMMISSIONERS OP THE STATE ACCIDENT
FUND, SHALL MAY GRANT A PREMIUM DISCOUNT OF NOT LESS THAN 10
PERCENT TO EMPLOYERS WHO ARE LOCATED IN URBAN ENTERPRISE
ZONES AND MEET THE CRITERIA FOR THE DISCOUNT AS STATED IN
SECTION 266KK OF ARTICLE 41 OF THE CODE. The
commissioners, in their administration of the State Accident
Fund, shall have the power, with the approval of the
Secretary of Personnel AND THE GOVERNOR, to declare
dividends to the subscribers or policyholders in the fund,
either in the form of cash refunds or credits, when the
financial condition of the fund is such, in the judgment of
the commissioners, as to make such dividend declaration
warranted and advisable.