In this subtitle the following words have the meanings indicated. “Administration” means the Maryland Insurance Administration. “Board” means the Board for the Injured Workers’ Insurance Fund. “Commissioner” means the Maryland Insurance Commissioner. “Company” means the Chesapeake Employers’ Insurance Company established under Title 24, Subtitle 3 of the Insurance Article. “Fund” means the Injured Workers’ Insurance Fund.

There is an Injured Workers’ Insurance Fund. The Fund is an instrumentality of the State. On and after October 1, 2013, the Company, and not the Fund, shall serve as the workers’ compensation insurer of last resort for workers’ compensation insurance. On and after October 1, 2013, the Fund: shall continue to exist; but may not issue new policies or otherwise engage in the business of insurance. On and after October 1, 2013, the Fund shall be the third party administrator for the State’s Self–Insured Workers’ Compensation Program for State Employees under a contract with the State. At least once every 5 years, the Commissioner shall: review the State’s Self–Insured Workers’ Compensation Program for State Employees, as administered by the Fund, to determine whether the State is receiving effective administrative services at a reasonable cost; and submit a report to the State Treasurer on the findings of the review. Subject to subsection (f) of this section, in the operation of the Company, the Company shall use employees of the Company. Subject to subsection (f) of this section, in the operation of the Fund, the Fund: shall use employees of the Fund; and may use nonsupervisory employees of the Company. The Fund shall: maintain a payroll and human resources system; and be responsible for paying: the employer portion of any payroll or other taxes and retirement or pension contributions for employees of the Fund; and for any health or other employee benefits that are available to employees of the Fund. Employees of the Fund may be assigned to perform functions of the Company under a contract between the Fund and the Company. Nonsupervisory employees of the Company may be assigned to perform functions of the Fund under a contract between the Fund and the Company. The Company and the Fund shall annually execute an agreement that lists: the employees of the Fund who have been assigned to perform duties on behalf of the Company; and the nonsupervisory employees of the Company who have been assigned to perform duties on behalf of the Fund. The agreement shall: specify the employees who will be utilized by the Company and the Fund; provide that, except with respect to assets necessary for the Fund to perform its duties under this subtitle, all assets and liabilities of the Fund are the assets and liabilities of the Company; and be filed with the Administration. Notwithstanding § 15–703(f)(3)(i) of the State Government Article, an employee of the Fund may register and maintain registration as a regulated lobbyist if the employee: is assigned to perform functions of the Company under paragraph (1) of this subsection for which an employee of the Company would be required to register; and registers on behalf of the Company.

On and after October 1, 2013: the Fund may not hire new employees; and employees of the Fund: may remain employees of the Fund; shall continue to be State employees only if they remain employees of the Fund; may not be required to be employees of the Company; shall be subject to each law that applied to employees of the Fund immediately before October 1, 2013; shall be subject to the same terms and conditions of employment as existed immediately before October 1, 2013, including benefits, leave, and pay grade; shall remain in the State retirement system only if they remain employees of the Fund; except for changes in benefits or compensation applicable to State employees generally, may not be denied any compensation or benefit provided to employees of the Fund as of October 1, 2013; may not be denied a promotion, based on the employee’s status as an employee of the Fund; and subject to subsection (b) of this section, may elect to be an employee of the Company. If an employee of the Fund intends to elect to be an employee of the Company under subsection (a)(2)(ix) of this section, the Company shall: require the employee to make the election in writing; and provide the employee with information that: states that the election of the employee to become an employee of the Company is voluntary and irrevocable; and fully discloses the terms of employment with the Company. An employee of the Company may not elect to be an employee of the Fund.

The Fund is independent of all State units. Except as provided in paragraph (2) of this subsection and elsewhere in this subtitle, the Fund is not subject to any law, including § 6–106 of the State Government Article, that affects governmental units. The Fund is subject to: Title 4 of the General Provisions Article; Title 12 of the State Government Article; the Maryland Public Ethics Law; and Title 5, Subtitle 3 of the State Personnel and Pensions Article. Paragraph (1) of this subsection does not affect the exemption from property tax under § 7–210 of the Tax – Property Article.

There is a Board for the Injured Workers’ Insurance Fund. The Board shall manage the business and affairs of the Fund as an instrumentality of the State in accordance with State law. The Board consists of the following members: the State Treasurer, or the State Treasurer’s designee; and the two members appointed to the Board for the Company by the Governor in accordance with § 24–307(b)(1)(i) of the Insurance Article. The terms of the members of the Board described under paragraph (1)(ii) of this subsection are the same as the members’ terms on the Board for the Company. The Board shall adopt rules, bylaws, policies, and procedures to carry out this subtitle.

The Board shall appoint a President of the Fund. The President of the Fund shall be an employee of the Fund. Except as provided in paragraph (2) of this subsection, employees of the Fund are special appointments. A classified employee of the Fund hired before July 1, 1990 in a nonprofessional or nontechnical position shall remain a member of the classified service or its equivalent in the State Personnel Management System as long as the employee remains in a nonprofessional or nontechnical position with the Fund. The Board shall set compensation for its employees. Except as otherwise provided in this subtitle, an employee of the Fund is not subject to any law, regulation, or executive order governing State employee compensation, including furloughs, salary reductions, or any other General Fund cost savings measure. This subsection does not apply to the layoff of an employee because of lack of work. An employee of the Fund may not be permanently removed unless: written charges are filed; the employee has an opportunity for a hearing in accordance with Title 10, Subtitle 2 of the State Government Article; and there is cause for removal.

Notwithstanding any other law to the contrary, the Fund shall remain in existence until it: no longer has any employees; and is terminated by the repeal of this subtitle.

The State has no interest in the assets of the Fund. All revenues, money, and assets of the Fund belong solely to the Fund and are held by the Fund in trust for the policyholders, injured workers and their families, and creditors of the Fund. The State may not borrow, appropriate, or direct payments from the revenues, money, or assets of the Fund for any purpose. The Fund may not be dissolved.