Ohio Code § 4123.34

§ 4123.34.

It shall be the duty of the bureau of workers' compensation board of directors and

the administrator of workers' compensation to safeguard and maintain the solvency

of the state insurance fund and all other funds specified in this chapter and Chapters

4121., 4127., and 4131. of the Revised Code.  The administrator, in the exercise of the powers and discretion conferred upon the

administrator in section 4123.29 of the Revised Code , shall fix and maintain, with the advice and consent of the board, for each class

of occupation or industry, the lowest possible rates of premium consistent with the

maintenance of a solvent state insurance fund and the creation and maintenance of

a reasonable surplus, after the payment of legitimate claims for injury, occupational

disease, and death that the administrator authorizes to be paid from the state insurance

fund for the benefit of injured, diseased, and the dependents of killed employees.  In establishing rates, the administrator shall take into account the administrative

costs of the industrial commission, board, and bureau of workers' compensation to

administer this chapter and Chapters 4121., 4125., 4127., 4133., and 4167. of the

Revised Code.  The administrator shall observe all of the following requirements in fixing the

rates of premium for the risks of occupations or industries: (A) The administrator shall keep an accurate account of the money paid in premiums by

each of the several classes of occupations or industries, and the losses on account

of injuries, occupational disease, and death of employees thereof, and also keep an

account of the money received from each individual employer and the amount of losses

incurred against the state insurance fund on account of injuries, occupational disease,

and death of the employees of the employer. (B) A portion of the money paid into the state insurance fund shall be set aside for

the creation of a surplus fund account within the state insurance fund.  Any references in this chapter or in Chapter 4121., 4125., 4127., or 4131. of the

Revised Code to the surplus fund, the surplus created in this division, the statutory

surplus fund, or the statutory surplus of the state insurance fund are hereby deemed

to be references to the surplus fund account.  The administrator may transfer the portion of the state insurance fund to the surplus

fund account as the administrator determines is necessary to satisfy the needs of

the surplus fund account and to guarantee the solvency of the state insurance fund

and the surplus fund account.  In addition to all statutory authority under this chapter and Chapter 4121. of the

Revised Code, the administrator has discretionary and contingency authority to make

charges to the surplus fund account.  The administrator shall account for all charges, whether statutory, discretionary,

or contingency, that the administrator may make to the surplus fund account.  A revision of basic rates shall be made annually on the first day of July. For policy years commencing prior to July 1, 2016, revisions of basic rates for private

employers shall be in accordance with the oldest four of the last five calendar years

of the combined accident and occupational disease experience of the administrator

in the administration of this chapter, as shown by the accounts kept as provided in

this section.  For a policy year commencing on or after July 1, 2016, revisions of basic rates

for private employers shall be in accordance with the oldest four of the last five

policy years combined accident and occupational disease experience of the administrator

in the administration of this chapter, as shown by the accounts kept as provided in

this section. Revisions of basic rates for public employers shall be in accordance with the oldest

four of the last five policy years of the combined accident and occupational disease

experience of the administrator in the administration of this chapter, as shown by

the accounts kept as provided in this section. In revising basic rates, the administrator shall exclude the experience of employers

that are no longer active if the administrator determines that the inclusion of those

employers would have a significant negative impact on the remainder of the employers

in a particular manual classification.  The administrator shall adopt rules, with the advice and consent of the board, governing

rate revisions, the object of which shall be to make an equitable distribution of

losses among the several classes of occupation or industry, which rules shall be general

in their application. (C) The administrator may apply that form of rating system that the administrator finds

is best calculated to merit rate or individually rate the risk more equitably, predicated

upon the basis of its individual industrial accident and occupational disease experience,

and may encourage and stimulate accident prevention.  The administrator shall develop fixed and equitable rules controlling the rating

system, which rules shall conserve to each risk the basic principles of workers' compensation

insurance. (D) The administrator may grant discounts on premium rates for employers who meet either

of the following requirements: (1) Have not incurred a compensable injury for one year or more and who maintain an employee

safety committee or similar organization or make periodic safety inspections of the

workplace. (2) Successfully complete a loss prevention program prescribed by the superintendent

of the division of safety and hygiene and conducted by the division or by any other

person approved by the superintendent. (E)(1) In determining the premium rates for the construction industry the administrator

shall calculate the employers' premiums based upon the actual remuneration construction

industry employees receive from construction industry employers, provided that the

amount of remuneration the administrator uses in calculating the premiums shall not

exceed an average weekly wage equal to one hundred fifty per cent of the statewide

average weekly wage as defined in division (C) of section 4123.62 of the Revised Code . (2) Division (E)(1) of this section shall not be construed as affecting the manner in

which benefits to a claimant are awarded under this chapter. (3) As used in division (E) of this section, “ construction industry ” includes any activity performed in connection with the erection, alteration, repair,

replacement, renovation, installation, or demolition of any building, structure, highway,

or bridge. (F) The administrator shall not place a limit on the length of time that an employer

may participate in the bureau of workers' compensation drug free workplace and workplace

safety programs.