There is a State Workers’ Compensation Commission established as an independent unit of the State government.

The Commission consists of 10 members, appointed by the Governor with the advice and consent of the Senate. Each member of the Commission: at the time of appointment, shall be at least 30 years old; and for at least 5 years immediately before appointment, shall have been a resident of the State. Each member of the Commission shall: be a resident of the State; be a citizen and qualified voter of the State; have been admitted to practice law in the State; and be distinguished for integrity, sound legal knowledge, and wisdom. Before taking office, each appointee to the Commission shall take the oath required by Article I, § 9 of the Maryland Constitution. The term of a member is 12 years. The terms of members are staggered as required by the terms provided for members of the Commission on October 1, 1991. At the end of a term, a member continues to serve until a successor is appointed and qualifies. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. Subject to the hearing requirements of this subsection, the Governor may remove a member from office for: inefficiency; neglect of duty; or malfeasance in office. Before the Governor removes a member, the Governor shall give the member: a copy of the charges against the member; and an opportunity for a public hearing. At least 10 days before the hearing, the Governor shall give the member notice of the time and place of the hearing. The member may be represented at the hearing by counsel. In this subsection, “former commissioner” means a commissioner who previously served as a member of the Commission. Except as provided in subsection (c) of this section, the Chairman may assign a former commissioner to conduct hearings if the former commissioner: served, in the aggregate, at least 3 years as a commissioner; meets the standards established by this section as well as any additional standards established by rules of the Commission; and consents to the temporary assignment. A former commissioner may not be recalled for temporary assignment if the commissioner: was removed or involuntarily retired from the Commission pursuant to the Constitution or laws of this State; voluntarily retired by reason of disability; or had the most recent service as a commissioner terminated by rejection of confirmation by the Senate. A former commissioner recalled under this section may not be temporarily assigned for more than 120 working days in any calendar year. If on the 120th working day in a calendar year that a former commissioner has served in a temporary assignment under this section the hearing on the case then being heard by the commissioner is not concluded, the Commission may extend the commissioner’s assignment until that case is concluded. A former commissioner temporarily assigned under this section has all the power and authority of a member of this Commission. Notwithstanding the receipt of a retirement allowance, a former commissioner temporarily assigned under this section shall receive per diem compensation for each day actually engaged in the discharge of Commission duties. The per diem shall be based on the current annual salary of a member of the Commission and computed on the basis of 246 working days a year. If the sum of the per diem payments received by a former commissioner in any 1 calendar year, when added to the retirement allowance the former commissioner is entitled to receive during that calendar year, equals the annual salary of a member of the Commission, no further per diem may be paid to the former commissioner in that calendar year. A deduction may not be withheld for health benefits or retirement purposes from the compensation paid to a former commissioner during the time of the temporary assignment. A commissioner on temporary assignment does not earn additional creditable service under the State retirement or pension system. In addition to the per diem compensation provided for in subparagraph (i) of this paragraph, a former commissioner shall be reimbursed for reasonable expenses actually incurred by reason of the temporary assignment, in accordance with Standard State Travel Regulations. The Commission shall adopt regulations consistent with those for the recall of former circuit and District Court judges.

From among the members of the Commission, the Governor shall appoint a chairman. The Chairman is the administrative and executive head of the Commission. Subject to paragraph (3) of this subsection, the Chairman has final authority over: the administrative work of the Commission and its employees; and the assignment of cases for hearing. The Chairman does not have final authority over: the adoption of regulations by the Commission; or the conduct of hearings and the determination of cases by the other members of the Commission. The Chairman shall conduct hearings unless the hearings interfere with the adequate and efficient performance of the administrative and executive functions of the Chairman.

Each member of the Commission shall devote full time to the duties of office. While on the Commission, a member may not: practice law; hold any political employment under State or federal law; or hold any other position or engage in any business that interferes or is inconsistent with any duty of office. Each member of the Commission is entitled to: the salary provided in the State budget; and reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. The annual salary of a member of the Commission: shall at least equal the salary provided in the State budget for a judge of the District Court; and for the Chairman, shall at least equal the salary of the Chief Judge of the District Court. Except as provided in paragraphs (1) and (2) of this subsection, a member of the Commission may not receive a fee or perquisite for the discharge of any duty of office.

The Chairman of the Commission may employ a staff for the Commission in accordance with the State budget. Except as otherwise provided by law, the staff is in the State Personnel Management System. The Secretary of the Commission shall: perform each duty that the Chairman of the Commission assigns; and keep, at the principal office of the Commission, a public record of: each proceeding of the Commission, including: each claim that the Commission considers; and each award that the Commission allows to an employee or any person for a service; each document required to be submitted by the Commission or by a regulation of the Commission; each decision of the Commission; and each order passed by the Commission. The Chairman may designate another employee of the Commission to exercise the powers and carry out the duties of the Secretary whenever the Secretary is absent.

The Commission: shall have its principal office in Baltimore City; and may have in the State any branch offices that the Chairman considers necessary to carry out this title.

Except for legal holidays, the Commission shall be in session continuously and open for business during business hours Monday through Friday. Each session shall be open to the public. The Commission may adjourn without recording notice of the adjournment in the record of proceedings.

Any member of the Commission may conduct a hearing or other investigation for the Commission. A decision or order of a member of the Commission shall be considered a decision or order of the Commission. A copy of each decision or order shall be sent to each party’s attorney of record and to each unrepresented party: by first–class mail; or by electronic means, if the party’s attorney of record consents or, if the party is unrepresented, the party consents.

The Commission may adopt regulations to carry out this title. To carry out this title, a member of the Commission, the Secretary of the Commission, a special examiner, or an inspector may: administer an oath; or certify to an official act. To carry out this title, a member of the Commission, the Secretary of the Commission, a special examiner, or any inspector may take a deposition as provided by law. In an investigation, the Commission may cause the deposition of a witness to be taken as provided by law. The Commission shall have a seal inscribed with the words “Workers’ Compensation Commission, State of Maryland -- Official Seal”. The Commission shall use the seal for the authentication of its awards, orders, and proceedings. The Commission may approve the form of a workers’ compensation insurance policy under § 19-402 of the Insurance Article.

In determining the amount of a financial penalty or fine to be imposed under this title, the Commission, in a fair and equitable manner, shall consider: the seriousness and effect of the violation; the good faith of the violator; the violator’s history of previous violations; and the ability of the violator to pay.

In any administrative action before the Commission, if it is established by a preponderance of the evidence that a person has knowingly obtained benefits under this title to which the person is not entitled, the Commission shall order the person to reimburse the insurer, self–insured employer, the Uninsured Employers’ Fund, or the Subsequent Injury Fund for the amount of all benefits that the person knowingly obtained and to which the person is not entitled. An order of reimbursement required under subsection (a) of this section shall include interest on the amount ordered to be reimbursed at a rate of 1.5% per month from the date the Commission notifies the person of the amount to be reimbursed.

In any administrative action before the Commission, if it is established by a preponderance of the evidence that a person knowingly affected or knowingly attempted to affect the payment of compensation, fees, or expenses under this title by means of a fraudulent representation, the Commission shall refer the case on the person to the Insurance Fraud Division in the Maryland Insurance Administration. In its annual report under § 9-312 of this subtitle, the Commission shall report the number of cases referred to the Insurance Fraud Division in the Maryland Insurance Administration under this section.

To carry out this title, a member of the Commission, the Secretary of the Commission, a special examiner, or an inspector may issue a subpoena for the attendance of a witness to testify or the production of a relevant document or record. On request of a party to a proceeding before the Commission, the Commission shall issue a subpoena for a hearing before the Commission for: personal appearance of a witness; or a deposition by the party, as authorized under § 9–719 of this title. On a request of a party to a claim on which issues are currently pending, the Commission shall issue a subpoena for relevant documentation to be produced at the office of the requesting party and distributed to all parties to the claim in accordance with regulations adopted by the Commission. If the Commission, after an evidentiary hearing, determines that a subpoena was requested in bad faith, the Commission may assess against the requesting party the whole cost of the proceeding, including reasonable attorney’s fees. An officer who serves a subpoena issued under this section is entitled to the same fee as the sheriff in the county where the witness is subpoenaed would be entitled.

As soon as practicable after the end of the fiscal year, the Chairman of the Commission shall submit an annual report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly. The annual report shall include: any suggestions to improve the administration of this title; a detailed statement of receipts and disbursements of the Commission; and statistical analyses of: the costs of workers’ compensation; experiences; and industrial injuries.

The Commission may require an insurer or a self–insurer to submit a report or analysis that the Commission considers useful to increase public understanding of the purpose, administrative procedures, costs, coverage, or effectiveness of workers’ compensation in the State. Each insurer and each self–insurer, that provides workers’ compensation insurance in the State, shall submit a quarterly case payment report to the Commission: on the printed forms or computer tapes provided to the insurer or self–insurer by the Commission, including a specially designated printed form or computer tape for the last case payment report for each covered employee; and that includes all information required by the Commission or an explanation of why any required information is omitted from the report. An insurer or a self–insurer who is required to submit a report under paragraph (1) of this subsection shall submit the report within 40 days after the date on which the Commission mails the printed forms or computer tapes to the insurer or self–insurer. The Commission may assess a fine not exceeding $1,000 against an insurer or a self–insurer if the insurer or self–insurer: fails to timely file a report under subsection (b) of this section; or files a report under subsection (b) of this section that includes inaccurate or insufficient information. If the Commission determines that, after due diligence an insurer or a self–insurer is unable to timely submit the report required under subsection (b) of this section, the Commission may: waive the fine specified under subsection (c) of this section; and grant the insurer or self–insurer the additional time that may be necessary.

The Commission shall provide employers, without charge, blank forms for: an application for benefits; notice of compensation; proof of employment and wage earnings; proof of death; proof of injury; proof of medical attendance; and any other purpose that the Commission considers proper and advisable. The Commission shall adopt regulations that provide for distribution and ready availability of the forms required under this section.

The Commission shall pay 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.

The Commission shall pay 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.

In this section the following words have the meanings indicated. “Insured payroll” means the payroll of an employer who: is subject to this title; and has obtained insurance for its covered employees from an insurer. “Insurer” means: a stock corporation or mutual association that is authorized under the Insurance Article to provide workers’ compensation insurance in the State; a governmental self–insurance group that meets the requirements of § 9–404 of this title; a self–insurance group of private employers that meets the requirements of Title 25, Subtitle 3 of the Insurance Article; or an individual employer that self–insures in accordance with § 9–405 of this title. 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: 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; 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 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. The Commission shall assess against and collect from each insurer a tax for the maintenance of the Commission. Before each fiscal year, the Commission shall calculate for each insurer the tax for the maintenance of the Commission in accordance with this section. First, the Commission shall calculate the assessment percentage by: determining the appropriation for the expenses of the Commission for the next fiscal year as: decreasing by an amount equal to the revenues received during the current fiscal year under § 9–319(a)(2) and (3) of this subtitle; 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 adjusting for any variances between the projected and actual expenditures for the previous fiscal year; and dividing the amount determined under item (i) of this paragraph by the total insured payroll of all insurers. Then, the Commission shall apply the assessment percentage determined under paragraph (2) of this subsection to the insured payroll of each insurer. Payment of the tax assessed under this section may be enforced by a civil action in the name of the State. 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. The Commission may: examine payrolls and require reports from employers and insurers as may be reasonable and necessary to carry out this section; and adopt regulations to carry out this section.

There is an Advisory Committee on the budget of the Commission. The Advisory Committee consists of 12 members, appointed by the Governor with the advice and consent of the Senate. Each member appointed by the Governor serves at the pleasure of the Governor. The Governor shall appoint a chairman from among the members of the Advisory Committee. In making the appointments, the Governor shall: ensure that each geographic region of the State is represented; ensure that various disciplines within the workers’ compensation community are represented, including: business; labor; the insurance industry; the vocational rehabilitation industry; the medical profession; claimants’ bar; and defense bar; and consider, in consultation with the chairman, the recommendations made by representatives of each of these disciplines. The term of an appointed member is 3 years. The terms of members are staggered. A member may be reappointed. At the end of a term, a member continues to serve until a successor is appointed and qualifies. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. Members of the Advisory Committee shall serve without compensation, but each member shall be reimbursed for necessary travel and other expenses incurred in the performance of official committee duties in accordance with the Standard State Travel Regulations. The Commission shall provide meeting space, budget analysis, and staff support for the Advisory Committee.

By September 1 of each year, the Commission shall prepare a tentative operating budget for the next fiscal year and submit it to the Advisory Committee established under § 9-317 of this subtitle. By November 1 of each year, the Advisory Committee shall review the tentative operating budget and make recommendations to the Commission as to any changes in any budget area of the Commission. The Commission shall give due consideration to the recommendations of the Advisory Committee prior to submitting the Commission’s final budget to the Governor. By December 1 of each year, the Advisory Committee shall submit a report to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly on the recommendations that it made to the Commission on the Commission’s next fiscal year budget. The Governor shall give due consideration to the recommendations of the Advisory Committee.

There is a Workers’ Compensation Fund that consists of: all revenue received through the imposition and collection of the assessment tax under § 9-316 of this subtitle; income from investments that the Treasurer makes for the State Fund; and any other fee, examination assessment, or revenue received by the Commission under this title. Notwithstanding subsection (a) of this section, the Commission shall pay all fines and penalties collected by the Commission under this title into the General Fund of the State. The purpose of the Fund is to pay: the costs and expenses incurred by the Commission that are related to the operation of the Commission, including: expenditures authorized under this title; the cost of State employees specifically assigned to the Commission; and reasonable expenses incurred by the Advisory Committee on the budget of the Commission established under § 9-317 of this subtitle; and any other expense authorized in the State budget, including costs specified under § 9-315 of this subtitle. All the costs and expenses of the Commission shall be included in the State budget. Any expenditures from the Fund to cover costs and expenses of the Commission may only be made: with an appropriation from the Fund approved by the General Assembly in the annual State budget; or by the budget amendment procedure provided for in § 7-209 of the State Finance and Procurement Article. If, in any given fiscal year, the amount of the revenue collected by the Commission and deposited into the Fund exceeds the actual appropriation for the Commission, plus an additional 1 percent provision for unanticipated expenditures over the actual appropriation for the Commission, the excess amount shall be carried forward within the Fund for the purpose of reducing the assessment fee imposed by the Commission for the following fiscal year. If, in any given year, the amount of revenue collected by the Commission and deposited into the Fund is insufficient to cover the expenditures of the Commission because of an unforeseen emergency and expenditures are made in accordance with the budget amendment procedure provided for in § 7-209 of the State Finance and Procurement Article, an additional assessment for the expenditures may be made. The State Treasurer is the custodian of the Fund. The State Treasurer shall deposit payments received from the Commission into the Fund. The Fund is a continuing, nonlapsing fund and is not subject to § 7-302 of the State Finance and Procurement Article, and may not be deemed a part of the General Fund of the State. Unless otherwise provided by law, no part of the Fund may revert or be credited to: the General Fund of the State; or a special fund of the State.