HARRY HUGHES, Governor

991

CHAPTER 256

(House Bill 1506)

AN ACT concerning

Litigation Expenses - Nonprofit Organizations

FOR the purpose of authorizing nonprofit organizations to be
awarded reimbursement for expenses incurred in connection
with a certain case or action initiated against the
organization by an agency under certain circumstances;
defining a certain term; and generally relating to the award
of litigation expenses to nonprofit organizations.

BY repealing and reenacting, with amendments,

Article - State Government

Section 10-217

Annotated Code of Maryland

(1984 Volume and 1985 Supplement)

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

Article - State Government

10-217.

(a)  (1) In this section, THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(2) ["business"] "BUSINESS" means a trade,
professional activity, or other business that is conducted for
profit.

(3) "NONPROFIT ORGANIZATION" MEANS AN ORGANIZATION THAT IS
EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE INTERNAL REVENUE
CODE OF 1954 OR IS ELIGIBLE FOR EXEMPTION THEREUNDER.

(b)  This section applies only to:

(1)  an agency operating Statewide; [and]

(2)  a business that, on the date when the contested
case or civil action is initiated:

(i) is independently owned and operated; and

(ii) has less than 50 employees, including, if
a corporation owns 50% or more of the stock of the business, each
employee of the corporation; AND

(3)  A NONPROFIT ORGANIZATION.