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§ 9-316. Payment of expenses; tax

West's Annotated Code of MarylandLabor and EmploymentEffective: October 1, 2013

West's Annotated Code of Maryland
Labor and Employment
Title 9. Workers' Compensation (Refs & Annos)
Subtitle 3. State Workers' Compensation Commission (Refs & Annos)
Effective: October 1, 2013
MD Code, Labor and Employment, § 9-316
§ 9-316. Payment of expenses; tax
(a)(1) In this section the following words have the meanings indicated.
(2) “Insured payroll” means the payroll of an employer who:
(i) is subject to this title; and
(ii) has obtained insurance for its covered employees from an insurer.
(3) “Insurer” means:
(i) a stock corporation or mutual association that is authorized under the Insurance Article to provide workers' compensation insurance in the State;
(ii) a governmental self-insurance group that meets the requirements of § 9-404 of this title;
(iii) a self-insurance group of private employers that meets the requirements of Title 25, Subtitle 3 of the Insurance Article; or
(iv) an individual employer that self-insures in accordance with § 9-405 of this title.
Payment of expenses
(b) Out of money appropriated for the maintenance of the Commission, the State shall pay the salaries, administrative expenses, and all other expenses of the Commission, including:
(1) the costs of the administration of the Occupational Safety and Health Program by the Commissioner of Labor and Industry under Title 5 of this article;
(2) the costs of the administration of the workforce fraud program by the Commissioner of Labor and Industry under Title 3, Subtitle 9 of this article; and
(3) any cost incurred by the State, including contribution as an employer, because of the participation of a Commissioner in the Judges' Retirement System of the State of Maryland.
(c) The Commission shall assess against and collect from each insurer a tax for the maintenance of the Commission.
Calculation of tax
(d)(1) Before each fiscal year, the Commission shall calculate for each insurer the tax for the maintenance of the Commission in accordance with this section.
(2) First, the Commission shall calculate the assessment percentage by:
(i) determining the appropriation for the expenses of the Commission for the next fiscal year as:
1. decreasing by an amount equal to the revenues received during the current fiscal year under § 9-319(a)(2) and (3) of this subtitle;
2. decreasing by any amount the expenditures projected to the end of the current fiscal year that are expected to be less than the appropriation for that fiscal year; and
3. adjusting for any variances between the projected and actual expenditures for the previous fiscal year; and
(ii) dividing the amount determined under item (i) of this paragraph by the total insured payroll of all insurers.
(3) Then, the Commission shall apply the assessment percentage determined under paragraph (2) of this subsection to the insured payroll of each insurer.
(e) Payment of the tax assessed under this section may be enforced by a civil action in the name of the State.
Disposition of money collected
(f) The Commission shall pay the money that it collects for the tax under this section into the Workers' Compensation Fund in the State Treasury established under § 9-319 of this subtitle to reimburse the State for the expense of administering this title.
Powers of Commission
(g) The Commission may:
(1) examine payrolls and require reports from employers and insurers as may be reasonable and necessary to carry out this section; and
(2) adopt regulations to carry out this section.


Added by Acts 1991, c. 8, § 2, eff. Oct. 1, 1991. Amended by Acts 1992, c. 22, § 1; Acts 1994, c. 468, § 1, eff. Oct. 1, 1994; Acts 1995, c. 3, § 1, eff. March 7, 1995; Acts 1996, c. 38, § 1, eff. Oct. 1, 1996; Acts 1997, c. 70, § 4, eff. Oct. 1, 1997; Acts 1999, c. 316, § 1, eff. July 1, 1999; Acts 2002, c. 487, § 1, eff. June 1, 2002; Acts 2003, c. 21, § 1, eff. April 8, 2003; Acts 2009, c. 188, § 1, eff. Oct. 1, 2009; Acts 2012, c. 570, § 6, eff. Oct. 1, 2013.
Formerly Art. 101, § 17.
MD Code, Labor and Employment, § 9-316, MD LABOR & EMPLY § 9-316
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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