PARRIS N. GLENDENING, Governor                             Ch. 279

(1994 Replacement Volume and 1995 Supplement)

(As enacted by Chapter 9, Section 2 of the Acts of the General Assembly of 1993)

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

Article 48A - Insurance Code

698.

(a) In this subtitle the following words have the meanings indicated.

(g) (1) "Eligible employee" means an employee who works on a full-time basis

and has a normal workweek of 30 or more hours.

(2)     "Eligible employee" includes:

(i) A sole proprietor, a self-employed individual, a partner of a
partnership, and an independent contractor who is included as an employee under a
health benefit plan under this subtitle; and

(ii) A sole employee of a nonprofit organization, which has been
determined by the Internal Revenue Service to be exempt from taxation under §
501(c)(3), (4), or (6) of the Internal Revenue Code, who has a normal workweek of 20 or
more hours and is not covered under a public or private health insurance plan or other
health benefit arrangement.

(3)     "Eligible employee" does not include an individual who works on a
temporary or substitute basis or for fewer than 30 hours in a workweek.

(q) (1) "Small employer" means:

(i) Any person, sole proprietor, firm, corporation, partnership, or
association actively engaged in business if:

1.       On at least 50 percent of its working days during the
preceding calendar year, employed at least two but no more than 50 eligible employees;
and

2.       The majority of the individuals described under item 1 of this
subparagraph are employed within the State; or

(ii) Any self-employed individual who:

1.       Is an individual or sole proprietor who derives a substantial
portion of the individual's income from a trade or business through which the individual
or sole proprietor has attempted to earn taxable income and for which the individual has
filed the appropriate Internal Revenue Form 1040, Schedule C or F, for the previous
taxable year, a copy of which shall be filed with the carrier as proof of employment; or

2.       Is an individual engaged in a licensed profession through a
professional corporation organized in accordance with Title 5, Subtitle 1 of the
Corporations and Associations Article and who received health benefits through a
professional association prior to July 1, 1994.

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