Ch. 10

1996 LAWS OF MARYLAND

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

[(i)] 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

[(ii)] 2. The majority of the individuals described under
[subparagraph (i) of this paragraph] 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.

(2)     "Small employer" includes:

(i) If the requirements of [paragraph (1)] PARAGRAPH (1)(I)1 AND 2
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

(ii) 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, with at least one eligible employee.

(3)     (i) A carrier may not impose a minimum participation requirement
for a small employer that is greater than 75 percent of eligible employees of the small
employer.

(ii) In applying minimum participation requirements with respect to a
small employer to determine whether the applicable percentage of participation is met, a
carrier may not consider eligible employees or dependents that have coverage under a

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