Ch. 35

1997 LAWS OF MARYLAND

Defined terms: "Eligible employee" § 15-1201
"Health benefit plan" § 15-1201
"Premium" § 1-101
"Small employer" § 15-1201

15-1203. SMALL EMPLOYERS.

(A) IN GENERAL.

A SMALL EMPLOYER UNDER THIS SUBTITLE IS A PERSON THAT MEETS THE
CRITERIA SPECIFIED IN ANY SUBSECTION OF THIS SECTION.

(B) EMPLOYEE GROUP SIZE CRITERIA.

(1) A PERSON IS CONSIDERED A SMALL EMPLOYER UNDER THIS
SUBTITLE IF THE PERSON:

(I) IS AN EMPLOYER THAT ON AT LEAST 50% OF ITS WORKING
DAYS DURING THE PRECEDING CALENDAR YEAR, EMPLOYED AT LEAST TWO BUT
NOT MORE THAN 50 ELIGIBLE EMPLOYEES, THE MAJORITY OF WHOM ARE
EMPLOYED IN THE STATE; AND

(II) IS A PERSON ACTIVELY ENGAGED IN BUSINESS OR IS THE
GOVERNING BODY OF:

1. A CHARTER HOME-RULE COUNTY ESTABLISHED UNDER
ARTICLE XI-A OF THE MARYLAND CONSTITUTION;

2. A CODE HOME-RULE COUNTY ESTABLISHED UNDER
ARTICLE XI-F OF THE MARYLAND CONSTITUTION;

3. A COMMISSION COUNTY ESTABLISHED OR OPERATING
UNDER ARTICLE 25 OF THE CODE; OR

4. A MUNICIPAL CORPORATION ESTABLISHED OR
OPERATING UNDER ARTICLE XI-E OF THE MARYLAND CONSTITUTION.

(2) NOTWITHSTANDING PARAGRAPH (1)(I) OF THIS SUBSECTION:

(I) A PERSON IS CONSIDERED A SMALL EMPLOYER UNDER THIS
SUBTITLE IF THE EMPLOYER DID NOT EXIST DURING THE PRECEDING CALENDAR
YEAR BUT ON AT LEAST 50% OF THE WORKING DAYS DURING ITS FIRST YEAR THE
EMPLOYER EMPLOYS AT LEAST TWO BUT NOT MORE THAN 50 ELIGIBLE EMPLOYEES
AND OTHERWISE SATISFIES THE CONDITIONS OF PARAGRAPH (1)(I) OF THIS
SUBSECTION; AND

(II) IF THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY
ACT (ERISA) IS AMENDED TO EXCLUDE EMPLOYEE GROUPS UNDER A SPECIFIC SIZE,
THIS SUBTITLE SHALL APPLY TO ANY EMPLOYEE GROUP SIZE THAT IS EXCLUDED
FROM THAT ACT.

(3) IN DETERMINING THE GROUP SIZE SPECIFIED UNDER PARAGRAPH
(1)(I) OF THIS SUBSECTION:

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