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LAWS OF MARYLAND

Ch. 260

FOR the purpose of providing that persons who do business as a
Maryland Professional Services Corporation, and who
incorporate under the Maryland Professional Services
Compensation Corporation Act, and who are certain officers
and stockholders in the professional services corporation,
may elect not to be covered by the Workmen's Compensation
Act; and generally relating to workmen's compensation
coverage.

BY repealing and reenacting, with amendments,

Article 101 - Workmen's Compensation

Section 21(b)(2) and 67(4)

Annotated Code of Maryland

(1979 Replacement Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 101 - Workmen's Compensation

21.

(b) The following shall constitute employees subject to the
provisions of this act, except as exempted under subsection (c)
of this section:

(2) Every officer of a corporation rendering
services for the corporation for monetary remuneration except:

(i) An officer of a close corporation, as
defined in the Corporations and Associations Article, electing
not to be covered under the provisions of Section 67(4) of this
article[.];

(ii) An officer owning 20 percent or more of
the outstanding capital stock of a farm corporation electing not
to be covered under the provisions of § 67(4) of this article.
For purposes of this subparagraph (ii) a farm corporation is
defined as a corporation that derives at least 75 percent of its
income from farm operations[.]; OR

(III) AN OFFICER OF A PROFESSIONAL CORPORATION
ORGANIZED TO PERFORM A PROFESSIONAL SERVICE, AS DEFINED IN THE
CORPORATIONS AND ASSOCIATIONS ARTICLE, WHO ELECTS NOT TO BE
COVERED UNDER THE PROVISIONS OF SECTION 67(4) OF THIS ARTICLE.

(III) AN OFFICER OWNING 20 PERCENT OR MORE OF
THE OUTSTANDING CAPITAL STOCK OF A PROFESSIONAL SERVICES
CORPORATION (AND PERFORMING PROFESSIONAL SERVICES FOR THAT
CORPORATION AS DEFINED IN THE CORPORATIONS AND ASSOCIATIONS
ARTICLE), ELECTING NOT TO BE COVERED UNDER THE PROVISIONS OF §
67(4) OF THIS ARTICLE.