WILLIAM DONALD SCHAEFER, Governor                    Ch. 585

(E) (1) THE COMMISSIONERS SHALL ESTABLISH AN OPERATING AND
CAPITAL BUDGET FOR THE STATE ACCIDENT FUND, AND, FOR
INFORMATIONAL PURPOSES ONLY, DISCLOSE THE BUDGET TO THE BUDGET
AND TAXATION COMMITTEE OF THE SENATE AND THE APPROPRIATIONS
COMMITTEE OF THE HOUSE OF DELEGATES OF THE STATE.

(2) EXCEPT AS PROVIDED BY THIS ARTICLE, THE STATE
ACCIDENT FUND IS INDEPENDENT OF ALL STATE AGENCIES AND IS NOT
SUBJECT TO ANY LAW AFFECTING GOVERNMENTAL PUBLIC ENTITIES.

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 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

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