S.B. 141                                                  VETOES

Section 9-508

Annotated Code of Maryland

(1991 Volume and 1995 Supplement)

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

Article - Labor and Employment

9-206.

(a)     Subject to subsection (b) of this section, an officer of a corporation or a
member of a limited liability company is a covered employee if the officer or member
provides a service for the corporation or limited liability company for monetary
compensation.

(b)     An individual who otherwise would be a covered employee under this section
may elect to be exempt from coverage if:

(1)     the individual is an officer of a close corporation, as defined in §
4-101(b) of the Corporations and Associations Article;

(2)     the individual:

(i) is an officer of a corporation that earns at least 75% of its income
from farm operations; and

(ii) owns at least 20% of the outstanding capital stock of the
corporation;

(3)     the individual:

(i) is an officer of a professional corporation, as defined in § 5-101(d)
of the Corporations and Associations Article;

(ii) owns at least 20% of the outstanding capital stock of the
corporation; and

(iii) performs for the corporation a professional service, as defined in §
5-101(e) of the Corporations and Associations Article; or

(4)     The individual:

(i) is a member of a limited liability company; and

(ii) owns at least 20% of the outstanding interests in profits of the
limited liability company.

(c)     (1) A corporation or limited liability company shall submit to the
Commission and to the insurer of the corporation or limited liability company a written
notice that names the individual who has elected to be excluded from coverage.

(2) An election under subsection (b)(1) or (b)(4) of this section is not
effective until a corporation or limited liability company complies with this subsection.

- 3926 -