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Construction of terms.

Provisions severable.

Advance payments.

Reports not evidence.

Act in effect.

so far as it adopts the law of which it is an amendment, is a continuation thereof, and only in other respects a new enactment.

SEC. 3c. Any reference to any employee herein who has been injured shall, when the employee is dead, also include the legal beneficiaries, as that term is herein used, of such employee to whom compensation may be payable. Whenever the word “board" is used in this act, it shall be construed to mean industrial accident board created by this act. Whenever in this act the singular is used, the plural shall be included; whenever the masculine gender is used, the feminine and neuter shall be included.

SEC. 4. Should any part of this act for any reason be held to be invalid, unconstitutional or inoperative, no other part or parts thereof shall be held affected thereby, and if any exception to or any limitation upon any general provision herein contained shall be held to be unconstitutional or invalid or ineffective the general provisions shall, nevertheless, stand effective and valid as if it has been enacted without limitation or exceptions.

SEC. 5. In cases of emergency or impending necessity the association may make advanced payments of compensation to any employee during the period of his incapacity or to his beneficiaries within the terms of this act, and when the same is either directed or approved by the board it shall be credited as against any unaccrued compensation due said employee or beneficiaries.

SEC. 6. The reports of accidents required by this act to be made by subscribers shall not be deemed and considered as admissions and evidence against the association or the subscriber in any proceedings before the board or elsewhere in a contested case where the facts set out therein or in any one of them is [are] sought to be contradicted by the association or subscriber.

SEC. 7. The law as it now stands being wholly inadequate to protect the rights of industrial employees who may be injured in industrial accidents and the beneficiaries of such employees who may be killed in such accidents creates an emergency and an imperative public necessity that the constitutional rule requir ing bills to be read on three several days be suspended, and the same is hereby suspended, and this act shall take effect from and after its passage, and it is so enacted.

Approved March 28, 1917.

UTAH.

ACTS OF 1917.

CHAPTER 100.-Compensation of workmen for injuries.

Industrial

SECTION 1. There is hereby created the Industrial Commission of Utah, to be composed of three members, who shall be appointed commission. by the governor, within thirty days after this act goes into effect. Two of the members of such commission shall be appointed for the term of two years and one for four years, and thereafter each member shall be appointed with the advice and consent of the senate, for the term of four years. Not more than two of the members of said commission shall belong to the same political party.

Removal of

SEC. 2. The governor at any time may remove any member of the commission for inefficiency. neglect of duty, malfeasance, mis- members. feasance, or nonfeasance in office.

SEC. 3. No commissioner shall hold any office of trust or profit, No other or engage in any occupation or business, interfering or incon- employment. sistent with his duties as such commissioner, and no commissioner shall serve on any committee of any political party.

SEC. 4. Each of said commissioners shall receive an annual salary of $4,000, payable in the same manner as the salaries of other officers of the State are paid. Before entering upon the duties of his office, each commissioner shall take and subscribe to the constitutional oath of office, which oath shall be filed in the office of the secretary of State. Each member of the commission shall give a corporate surety bond in the sum of ten thousand dollars, which bond shall be approved by the governor and filed with the State treasurer. All employees or deputies of the commission receiving or disbursing funds of the State shall give corporate surety bonds to the State in amounts and with surety to be approved by the commission. The premiums of all bonds provided for in this section shall be paid out of the State treasury.

SEC. 5. Within thirty days after this act goes into effect, the commission shall meet at the seat of government and organize by choosing one of its members as chairman. A majority of the commission shall constitute a quorum to transact business. No vacaney shall impair the rights of the remaining commissioners to exercise all the powers of the commission; and in case a vacancy exists, the remaining members of the commission shall exercise all of the powers and authorities of the commission until such vacancy is filled.

SEC. 6. The commission shall keep and maintain its offices at the State capitol, and suitable room or rooms. Necessary office furniture shall be furnished to the commission in the State capitol. The commission may hold sessions in any place within the State of Utah.

SEC. 7. The commission shall have an official seal for the authentication of its orders and proceedings, upon which seal shall be engraved the words, "The Industrial Commission of Utah," and such other design as the commission may prescribe; and the courts in this State shall take judicial notice of the seal of the commission, and in all cases copies of orders, proceedings or records in the office of the Industrial Commission of Utah, certified by the secretary of the said commission under its seal, shall be equal to the original as evidence.

Salary.

Bonds.

Organization.

Offices.

Seal.

Transac

SEC. 8. The commission shall be open for the transaction of business during all business hours of each and every day except Sun- tions.

Rules.

Employees.

State insur ance fund.

Administra

tion.

Classes of

day and legal holidays. The sessions of the commission shall be open to the public. All proceedings of the commission shall be shown on its records, which shall be a public record, and all voting shall be had by calling each member's name by the secretary, and each member's vote shall be recorded on the proceedings as cast.

SEC. 9. Subject to the provisions of this act, the commission may adopt its own rules of procedure and may change the same from time to time in its discretion.

SEC. 10. The commission may employ a secretary, deputies, actuaries, accountants, inspectors, examiners, experts, clerks, physicians, stenographers and other assistants, and fix their compensation. Such employment and compensation shall be first approved by the governor, and shall be paid out of the State treasury. The members of the commission, deputies, secretary, actuaries, accountants, inspectors, examiners, experts, clerks, physicians, stenographers, and other assistants that may be employed shall be entitled to receive from the State treasury their salaries or compensation and also their actual and necessary expenses while traveling on the business of the commission, and the members of the commission may confer and meet with officers of other States and officers of the United States on any matters pertaining to their official duties. Such expenses shall be itemized and sworn to by the person who incurred the expense and allowed by the commission.

[Sections 11 to 34, inclusive, relate to safety provisions and inspection, and the powers and duties of the commission with reference thereto, and are reproduced in Bulletin No. 244, Labor legislation of 1917.]

SEC. 35. There is hereby created a fund, to be known as "The State insurance fund," for the purpose of insuring employers against liability for compensation under this act, and of assuring to the persons entitled thereto the compensation provided by this act. Such fund shall consist of all premiums and penalties received and paid into the fund, of property and securities acquired by and through the use of moneys belonging to the fund, and of interest earned upon money belonging to the fund and deposited or invested as herein provided.

Such fund shall be administered by the commission without liability on the part of the State beyond the amount of such fund. Such fund shall be applicable to the payment of losses sustained on account of insurance and to the payment of compensation and of expenses in the manner provided in this act.

SEC. 36. It shall be the duty of the commission to conduct the business of the State insurance fund, and it is hereby vested with full authority over the said fund, and may do any and all things which are necessary or convenient in the administration thereof, or in connection with the insurance business to be carried on by it under the provisions of this act,

SEC. 37. Employments insured in the State insurance fund shall employments. be divided by the commission for the purpose of the said fund, into classes. Separate accounts shall be kept of the amounts collected and expended in respect to each such class for convenience in determining equitable rates; but for the purpose of paying compensation the State insurance fund shall be deemed one and indivisible. The commission shall have power to rearrange any of the classes by withdrawing any employment embraced in it and transferring it wholly or in part to any other class, and from such employments to set up new classes in its discretion. The commission shall determine the hazards of the Premium different classes and fix the rates of premium therefor based upon the total pay roll and number of employees in each of such classes of employment, at the lowest possible rate consistent with the maintenance of a solvent State insurance fund and the creation of a surplus and reserve; and for such purpose may adopt a system of schedule rating in such a manner as to take account of the peculiar hazard of such individual risk.

rates.

SEC. 38. The commission may in its official name sue and be sued in all the courts of the State, in all actions or proceedings arising out of anything done or suffered in connection with the State insurance fund or business relating thereto. Service of summons on any member of the commission or the secretary thereof shall be deemed service on the commission.

SEC. 39. The commission may in its official name make contracts of insurance as herein provided and such other contracts relating to the State insurance fund as are authorized or permitted under the provisions of this act.

SEC. 40. The commission may act through proper deputies and may delegate to such deputies such powers as it deems necessary or convenient.

Among the powers which may be so delegated shall be the power to enter into contracts of insurance, insuring employers against liability for compensation as herein provided and insuring to employees the compensation fixed by this act; also the power to make agreements for the settlement of claims against said fund for ⚫ compensation for injuries in accordance with the provisions of this act; also the power to determine to whom and through whom payments of such compensation shall be made; and also the power to contract with physicians, surgeons, and hospitals for medical and surgical treatment and care and nursing of injured persons entitled to compensation from said fund.

SEC. 41. (1) Every employer insuring in the State insurance fund shall receive from the commission a contract or policy of insurance in a form to be approved by the State commission.

Status of commission.

Contracts.

Deputies.

Policies.

Payment of

(2) Except as otherwise provided in this act all premiums shall be paid by every employer who elects to insure with the State premiums. insurance fund to the commission on or before July 1, 1917, and semiannually thereafter, or at such other times as may be prescribed by the commission. Receipts shall be given for such payments and the money shall be paid over to the State treasurer to the credit of the State insurance fund.

SEC. 42. Any employer may, upon complying with subdivisions two or three of section 53 of this act, withdraw from the fund by turning in his insurance contract or policy for cancellation, provided he is not in arrears for premiums due to the fund and has given to the commission written notice of his intention to withdraw before the expiration of the period for which he has elected to insure in said fund.

SEC. 43. The commission may reinsure any risk, or any part thereof, and may enter into agreements of reinsurance in the same way and to the same extent as other insurance carriers. SEC. 44. The commission shall observe the following requirements in classifying and fixing the rates of premiums for the risks of the same:

(1) It shall keep an accurate account of the money paid in premiums by each of the several classes of occupations or industries, and the expenses of administering the State insurance fund, and the disbursements on account of injuries and death of employees in each of said classes, including the setting up of reserves adequate to meet anticipated and unexpected losses and to carry the claims to maturity; and it shall also keep an account of the money received from each individual employer and the amount disbursed from the State insurance fund for expenses and on account of injuries and death of the employees of such employer, including the reserves so set up.

Withdrawal.

Reinsurance.

Fixing rates.

(2) Ten per cent of the money paid into the State insurance Surplus. fund shall be set aside for the creation of a surplus until such fund shall amount to the sum of one hundred thousand dollars, and thereafter five per cent of all the money paid into the State insurance fund shall be credited to such surplus fund until in the judgment of the commission, such surplus shall be sufficiently large to cover the catastrophe hazard and all other unanticipated losses. The commission shall also set up and maintain a reserve adequate to meet the anticipated losses and carry all claims and 45615-Bull. 243-18--25

Readjust

ments.

Credits.

Rules.

Custodian.

Deposits.

policies to maturity. The amount of such surplus and reserve shall be subject to the approval of the State commission.

(3) At the end of every year, and at such other times as the commission in its discretion may determine, a readjustment of the rate shall be made for each of the several classes of employments or industries. If at any time there is an aggregate balance remaining to the credit of any class of employment or industry, which the commission deems may safely and properly be divided. it may in its discretion credit to each individual member of such class who shall have been a subscriber to the State insurance fund for a period of six months or more prior to the time of such readjustment such proportion of such balance as he is properly entitled to, having regard to his prior paid premiums since the last readjustment of rates.

(4) Should any such accounting show a balance remaining to the credit of any class of occupation or industry, after the abovementioned amounts have been credited to the surplus and reserve fund and after the payment of expense of administering said fund and the payment of all awards for all injury or death lawfully. chargeable against the same, the premium rate for such class shall be reduced; and, each individual of such class, who has been a subscriber to the State insurance fund for a period of six months or longer prior to the time of such readjustment, and whose premium or premiums so paid to the fund exceeds the amount of the disbursements from the fund on account of injuries or death of his employees during such period, shall be entitled to a credit on the installment or installments of premiums next due from him, the amount of which credit shall be such proportion of said balance as the amount of his prior paid premiums sustains to the whole amount of said premiums paid by the class to which he belongs since the last readjustment of rates.

SEC. 45. The commission shall adopt rules and regulations with respect to the collection, maintenance and disbursement of the State insurance fund; one of which rules shall provide that in the event the amount of premiums collected from any employer at the beginning of any period of six months is ascertained and calculated by using the estimated expenditure of wages for the period of time covered by such premium payments as a basis, that an adjustment of the amount of such premium shall be made at the end of such period, and the actual amount of such premium shall be determined in accordance with the amount of the actual expenditure of wages for said period; and, in the event such wage expenditure for said period is less than the mount on which such estimated premium was collected, then such employer shall be entitled to receive a refund from the State insurance fund of the difference between the amount so paid by him and the amount so found to be actually due, or have the amount of such difference credited on succeeding premium payments at his option, and should such actual premium, when ascertained as aforesaid exceed in amount the premium so paid by such employer at the beginning of such period, such employer shall immediately upon being advised of the true amount of such premium due, forthwith pay to the State treasurer an amount equal to the difference between the amount actually found to be due and the amount paid by hiza at the beginning of said six months' period.

SEC. 46. The State treasurer shall be the custodian of the State insurance fund, and all disbursements therefrom shall be paid by him upon vouchers authorized by the Industrial Commission of Utah and signed by a member of the commission and the secretary thereof.

SEC. 47. The State treasurer shall deposit any portion of the fund not needed for immediate use, in the same manner and subject to all the provisions of the law with respect to the deposit of State funds by such treasurer: Provided, That the best interest obtainable shall be collected upon such deposits, and all interest earned by such portion of the State insurance fund as may be deposited by the State treasurer in pursuance of the authority

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