Labor and Employment - Uninsured Employers' Fund Board - Membership and Reserves
Summary
SB695 changes the structure and duties of the Uninsured Employers’ Fund Board in Maryland. The bill expands the Board from three to five members and replaces the prior labor/management/general public representation model with a more specialized membership structure: two members with substantial experience as officers or employees of a property and casualty insurance company, one member with substantial experience in accounting or finance, one member who is a policyholder of workers’ compensation insurance issued in the state, and one member representing the general public.
The bill also changes the Board’s reserve authority by requiring, rather than merely permitting, the Board to establish reserves to meet potential losses of the Fund. The act takes effect October 1, 2025, and amends Sections 10-308 and 10-317 of the Labor and Employment Article of the Maryland Code.
Impact
SB695 directly amends Maryland labor and employment law governing the Uninsured Employers’ Fund Board. It increases the Board’s membership, changes the qualifications and composition of its appointees, and imposes a mandatory reserve requirement for the Fund. These changes affect Board governance, financial oversight, and the administration of workers’ compensation-related claims involving uninsured employers.
Sentiment
The bill appears to have been broadly supported and noncontroversial in the legislative process. It passed the Senate unanimously and then passed the House with a substantial majority, suggesting general agreement that the Board’s membership and reserve practices should be updated. The available record does not show committee opposition or significant debate.
Contention
The main policy change is the shift away from a smaller board with labor, management, and public representation toward a larger board with insurance, accounting/finance, policyholder, and public representation. That change could raise questions about whether the Board remains balanced among stakeholder interests, but no specific objections are reflected in the available transcripts. Another possible point of discussion is the move from discretionary to mandatory reserves, which increases fiscal discipline but may also constrain Board flexibility in managing the Fund.