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"(2) When the amount in the fund at the begin

ning of the calendar year is less than $300,000, each

carrier or self-insurer shall be obligated to make pro

rated payments into the fund based on the gross premiums collected by the carrier for risks during the preceding fiscal year or the amount of premiums a selfinsurer would have had to pay during the preceding

fiscal year for compensation insurance. The provisions relating to asessments for administrative expenses under

section 45 (b), (c), (d), (f), (g), and (h) of this

Act shall apply to assessments for the special fund.

"(3) All amounts collected as fines and penalties under the provisions of this Act shall be paid into such fund.”

(c) Section 44 is further amended by adding a new subsection (h) as follows:

"(h) The proceeds of this fund shall be available for

payments under section 8 (f) and (g), under section 18 19 (b), and under section 39 (c): Provided, That payments 20 authorized by section 8 (f) shall have priority over other

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payments authorized from the fund: Provided further, That

at the close of each fiscal year the Secretary of Labor shall submit to the Congress a complete audit of the fund."

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3 Compensation Aot is amended by adding thereto a new

4 section 41a which reads as follows:

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"SEC. 41a. (a) At the beginning of each fiscal year,

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6 the Secretary shall estimate the cost of administering section

7 41 of this Act. The cost of administration shall include any

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expense reasonably expected to be incurred during such 9 fiscal year.

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"(b) The Secretary shall assess each carrier authorized 11 to provide security for compensation' under section 32 of 12, this Act to meet the estimated costs of administering section' 13 41 of this Act. The assessments shall be made in the manner' 14 and in the amount provided for in subsections. (c), (d)',' 15. (e), and (f) of this section. All assessments, when collected," 16 shall be deposited in the Treasury of the United States in a' separate fund.ht

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"(c), The Secretary shall give prompt notice by certi19 fied or registered mail to each carrier. of its assessment. 20 Each assessment shall be paid upon receipt of such notice and

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21 within such time as the Secretary shall prescribe...

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(d). The assessment upon each carrier shall be in the

proportion that the total compensation paid on risks covered

by this Act by such carrier in the immediately preceding

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1 fiscal year bore to the total compensation payments made by

2 all such carriers under this Act in such year.

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"(e) The assessment for any carrier who made no 4 compensation payments in the immediately preceding fiscal 5 year shall be the amount of compensation which the carrier 6 would most likely have had to pay in such year upon the 7 basis of the experience of similar carriers in such year and 8 any other relevant facts or circumstances as determined by 9 the Secretary after notice and opportunity to be heard for 10 the carrier involved.

11 "(f) At the end of each fiscal year the Secretary shall 12 adjust the assessments of each carrier upon the basis of the 13 actual cost of administering section 41 of this Act. When14 ever the adjusted assessment exceeds the actual assessment, 15 the Secretary may add the difference to the billing for the 16 succeeding fiscal year, or in his discretion shall provide 17 separate notice and billing for the additional assessment. 18 Whenever the adjusted assessment is less than the actual 19 assessment, the Secretary, at the discretion of the carrier, 20 shall refund the difference, or credit the difference toward

21 the assessinent for the succeeding year.

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"(g) The Secretary shall have authority to make such

23 regulations as he deems necessary or appropriate to carry 24 out the purposes of this section, including, but not limited to,

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1 provisions for the making and preservation of appropriate 2 records, the inspection of such records, and the submission 3 by carriers of reports prescribed by the Secretary.

4 "(h) In the event of failure by any carrier to pay the 5 assessments referred to in subsections (c) and (f) of this 6 section, to make and preserve records in the form and man7 ner required by him, or to file a report in the form and 8 manner required by him, or a denial of the right of the 9 Secretary to inspect records required by regulations issued 10 under this section, the Secretary may suspend or revoke the 11 privilege of the carrier to secure compensation payments. 12 under this Act.

13 "(i) The provisions of this section shall be limited by 14 the exceptions contained in subsection (g) of section 41, 15 and shall not apply in the case of any employment for which 16 compensation in case of disability or death is provided for 17 employees of nonappropriated fund instrumentalities under 18 authority of the Act of July 18, 1958 (72 Stat. 397).

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"(j) This section shall not be construed to authorize 20 the payment of any funds for expenses under section 41 of

21 this Act which are not appropriated by law."

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ADMINISTRATION EXPENSES-USER CHARGES

SEC. 15. Section 45 of such Act is amended to read as 24 follows:

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"SEC. 45. (a) At the end of each fiscal year the Secre

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tary shall determine the cost of the administration of this Act

2 in such fiscal year. The cost of administration shall include

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any expense incurred or accrued during such fiscal year as 4 provided in section 39 (a).

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"(b) The total cost so determined shall be prorated among the carriers and self-insurers authorized to insure 7 under section 32 of this Act. The assessment basis in respect

8 to an insurance carrier shall be the gross premiums collected

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by the carrier for risks covered by this Act during the fiscal

year. The assessment basis in respect to a self-insurer shall 11 be the amount of premium, as determined by the Secretary, 12 which such self-insurer would have had to pay during the 13 fiscal year if he had accrued his compensation liability under 14 this Act by insurance, such premium to be determined without regard to merit or experience rating.

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"(c) The Secretary shall assess each carrier and selfinsurer for its pro rata share of the total amount of adminis

trative costs of this Act in the fiscal year as determined under

this section, and shall give written notice by certified or regis

tered mail to each carrier or self-insurer of the assessment

against it.

"(d) Each assessment shall be paid upon receipt of

notice provided for in subsection (c) within such time as the

24 Secretary shall prescribe in regulations made under this

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section.

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