PARRIS N. GLENDENING, Governor                             Ch. 650

BY adding to

Article - Insurance

Section 15-1203(b)(4)

Annotated Code of Maryland

(1995 Volume and 1996 Supplement)

(As enacted by Chapter __ (H.B. 11) of the Acts of the General Assembly of 1997)

BY repealing and reenacting, with amendments,
Article - Insurance
Section 15-1203(c)
Annotated Code of Maryland
(1995 Volume and 1996 Supplement)
(As enacted by Chapter ___ (H.B. 11) of the Acts of the General Assembly of 1997)

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

Article 48A - Insurance Code

698.

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

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

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

2. The majority of the individuals described under item 1 of this
subparagraph are employed within the State; or

(ii) Any self-employed individual who:

1. [Is] A. LIVES, WORKS, OR RESIDES IN THIS STATE; AND

B. IS an individual or sole proprietor [who derives] OR IS
ORGANIZED IN ANY OTHER LEGALLY RECOGNIZED MANNER THAT A
SELF-EMPLOYED INDIVIDUAL MAY ORGANIZE SUCH THAT a substantial portion of
the individual's income IS DERIVED 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,]
FORM OR FORMS AND SCHEDULE 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.

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