MARVIN MANDEL, Governor                            1453

BY repealing and re—enacting, with amendments,

Article 95A — Unemployment Insurance Law

Section 8(e)

Annotated Code of Maryland

(1969 Replacement Volume and 1974 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 8(e) of Article 95A — Unemployment
Insurance Law, of the Annotated Code of Maryland (1969
Replacement Volume and 1974 Supplement) be and it. is
hereby repealed and re—enacted, with amendments, to read
as follows:

Article 95A — Unemployment Insurance Law

8.

(e) Employers other than political subdivisions of
the State of Maryland who elect under subsection (d) to
make payment in lieu of contributions shall be subject to
the provisions of this subsection.

(1) Provision of bond or other Security. Any
nonprofit organization that elects to become liable for
payments in lieu of contributions shall be required
within 30 days after the effective date of its election,
to execute and file with the Executive Director a surety
bond approved by the Executive Director. It may elect
instead to deposit with the Executive Director money or
securities, including irrevocable letters of credit, with
the approval of the Executive Director. The amount of
that bond, deposit or other security shall be determined
in accordance with the provisions of this paragraph.

(i) The amount of the bond or deposit required by
this paragraph shall be equal to 2.7 percent of the
organization's total wages paid for employment as defined
in § 20(n) for the four calendar quarters immediately
preceding the effective date of the election, the renewal
date in the case of a bond, or the biennial anniversary
of the effective date of election in the case of a
deposit of money or securities, whichever date shall be
most recent and applicable. If the nonprofit
organization did not pay wages in each of four such
calendar quarters, the amount of the bond or deposit
shall be as determined by the Executive Director.

(ii) Any bond deposited under this paragraph shall
be in force for a period of not less than two taxable
years and shall be renewed with the approval of the
Executive Director, at those times as the Executive