Ch. 611                                    1996 LAWS OF MARYLAND

8-609.

(a)     (1) In this section the following terms have the meanings indicated.

(2)     "New employer" means an employing unit that does not qualify for an
earned rate under § 8-610 of this subtitle.

(3)     "Employer industry category" means the 2-digit standard industry
classification code promulgated by the Federal Office of Management and Budget.

(b)     A new employer shall pay contributions at a rate that does not exceed 2.3% of
the taxable wage base, and that is the highest of:

(1)     1% of the taxable wage base;

(2)     the 5-year benefit cost rate of the State as computed under subsection
(c) of this section; or

(3)     the contribution rate under § 8-611 of this subtitle that applies to an
employing unit with a benefit ratio of 0.000.

(c)     Annually, the Secretary shall compute the 5-year benefit cost rate of the State
by dividing the sum of regular benefits, work sharing benefits, and 50% of extended
benefits that the State paid during the 5 consecutive calendar years immediately
preceding the computation date by the total amount of wages that employing units in the
State paid during the same period that were subject to contributions.

(d)     (1) In this subsection, "foreign contractor" means a person:

(i) who, for a commission or fixed price bids on, accepts, or offers to
accept orders or contracts for performing or superintending construction, removal, repair,
or improvement of any building or structure that is permanently annexed to real property
that is owned, controlled, or leased by another person; and

(ii) all or a majority part of whose primary operations traditionally
have been and continue to be based or headquartered in another state and are not
controlled or directed from this State.

(2) the contribution rate for a new employer who is a foreign contractor
shall be the average of the rates for employers in the State in the same employer industry
category as the foreign contractor, except that the rate may not be lower than the new
employer rate in effect for that year.

8-610.

(a) (1) An employing unit that meets the qualifications of this subsection shall
be assigned an earned rate of contribution that is based on the experience of the
employing unit.

(2) An employing unit qualifies under this subsection if, during each of the
3 calendar years immediately preceding the computation date the employing unit:

(i) had an earned rating record that was chargeable with benefits; and
- 3548 -