PARRIS N. GLENDENING, Governor

Ch. 10

(i) (1) "Late enrollee" means[:

(i) An] AN eligible employee or dependent who requests enrollment
in a health benefit plan under this subtitle following the initial enrollment period
provided under the terms of the health benefit plan[; or

(ii) For a self-employed individual as described in subsection (q)(1)(ii)
of this section, a self-employed individual or dependent who requests enrollment in a
health benefit plan under this subtitle following an annual open enrollment period for
self-employed individuals established by the carrier in- accordance with regulations
adopted by the Commissioner].

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

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

[1.] (I) 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.] (II) The majority of the individuals described under [item 1
of this subparagraph] SUBPARAGRAPH (I) OF THIS PARAGRAPH 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].

(2) "Small employer" includes:

(i) If the requirements of [paragraph (1)(i)1 and 2] PARAGRAPH (1)
of this subsection are satisfied, a local government body of:

1.       A charter county established under Article 25A of the Code;

2.       A code county established under Article 25B of the Code;

3.       A board of county commissioners established or operating
under Article 25 of the Code; and

4.       A municipal corporation established or operating under
Article 23A of the Code; and

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