EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *sb0828* SENATE BILL 828 K3 3lr1124 CF HB 988 By: Senator Hayes Introduced and read first time: February 6, 2023 Assigned to: Finance Committee Report: Favorable with amendments Senate action: Adopted Read second time: March 6, 2023 CHAPTER ______ AN ACT concerning 1 Family and Medical Leave Insurance Program – Modifications 2 FOR the purpose of modifying the Family and Medical Leave Insurance Program by 3 clarifying and altering certain provisions relating to the administration of the 4 Program, including provisions related to the provision of benefits, the payment of 5 contributions, and appeals; establishing the employer and employee shares of the 6 total rate of contribution; prohibiting the total rate of contribution from exceeding a 7 certain percentage of an employee’s wage; requiring the State to pay for certain 8 contributions for certain employers and certain covered employees; requiring the 9 Maryland Department of Health to reimburse certain community providers for 10 certain employer contributions in a certain manner; repealing the requirement that 11 a covered individual exhaust all employer–provided leave that is not required to be 12 provided under law before receiving benefits under the Program; prohibiting a 13 covered individual from being required to use certain leave before, or while, receiving 14 benefits under the Program; authorizing a covered individual and an employer to 15 agree to use certain leave to replace certain wages during the period of leave for 16 which benefits are received under the Program; and generally relating to the Family 17 Medical Leave Insurance Program. 18 BY repealing and reenacting, with amendments, 19 Article – Labor and Employment 20 Section 8.3–101, 8.3–302, 8.3–403, 8.3–406, 8.3–504(d), 8.3–505, 8.3–601, 8.3–701 21 through 8.3–703, 8.3–705, 8.3–801, and 8.3–906 22 Annotated Code of Maryland 23 (2016 Replacement Volume and 2022 Supplement) 24 2 SENATE BILL 828 BY repealing and reenacting, without amendments, 1 Article – Labor and Employment 2 Section 8.3–301 3 Annotated Code of Maryland 4 (2016 Replacement Volume and 2022 Supplement) 5 BY repealing 6 Chapter 48 of the Acts of the General Assembly of 2022 7 Section 3 and 10 8 BY repealing and reenacting, with amendments, 9 Article – Labor and Employment 10 Section 8.3–601(h) 11 Annotated Code of Maryland 12 (2016 Replacement Volume and 2022 Supplement) 13 (As enacted by Section 1 of this Act) 14 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15 That the Laws of Maryland read as follows: 16 Article – Labor and Employment 17 8.3–101. 18 (a) In this title the following words have the meanings indicated. 19 (b) “Application year” means the 12–month period beginning on the [first day] 20 SUNDAY of the calendar week [in] FOR which [a covered individual files an application 21 for] benefits ARE APPROVED . 22 (c) “Benefits” means the money payable under this title to a covered individual. 23 (d) “Covered employee” means an employee who has worked at least 680 hours 24 over the 12–month period immediately preceding the date on which leave is to begin. 25 (e) “Covered individual” means a covered employee or a self–employed individual 26 who elects to participate in the Program under § 8.3–201 of this title. 27 (f) “Department” means the Maryland Department of Labor. 28 (g) “Deployment” means a service member acting under official orders who, on 29 any day, is performing service in a training exercise or operation at a location or under 30 circumstances that make it impossible or infeasible for the service member to spend 31 off–duty time in the housing in which the service member resides when on garrison duty 32 at the service member’s permanent duty station or homeport. 33 SENATE BILL 828 3 (h) (1) “Employer” means a person or governmental entity that employs at 1 least one individual in the State. 2 (2) “Employer” does not include an individual who: 3 (i) is the sole owner of a sole proprietorship, limited liability 4 company, C corporation, or S corporation; and 5 (ii) is the only individual employed by the sole proprietorship, 6 limited liability company, C corporation, or S corporation. 7 (i) “Family member” means: 8 (1) a biological child, an adopted child, a foster child, or a stepchild of the 9 covered individual; 10 (2) a child for whom the covered individual has legal or physical custody or 11 guardianship; 12 (3) a child for whom the covered individual stands in loco parentis, 13 regardless of the child’s age; 14 (4) a biological parent, an adoptive parent, a foster parent, or a stepparent 15 of the covered individual or of the covered individual’s spouse; 16 (5) the legal guardian of the covered individual or the ward of the covered 17 individual or of the covered individual’s spouse; 18 (6) an individual who acted as a parent or stood in loco parentis to the 19 covered individual or the covered individual’s spouse when the covered individual or the 20 covered individual’s spouse was a minor; 21 (7) the spouse of the covered individual; 22 (8) A DOMESTIC PARTNER O F THE COVERED INDIVI DUAL; 23 (9) a biological grandparent, an adopted grandparent, a foster 24 grandparent, or a stepgrandparent of the covered individual; 25 [(9)] (10) a biological grandchild, an adopted grandchild, a foster 26 grandchild, or a stepgrandchild of the covered individual; or 27 [(10)] (11) a biological sibling, an adopted sibling, a foster sibling, or a 28 stepsibling of the covered individual. 29 (j) “Fund” means the Family and Medical Leave Insurance Fund established 30 under § 8.3–501 of this title. 31 4 SENATE BILL 828 (k) “Governmental entity” has the meaning stated in § 8–101 of this article. 1 (l) “Program” means the Family and Medical Leave Insurance Program 2 established under § 8.3–301 of this title. 3 (m) “Qualifying exigency” means any of the following reasons for which leave may 4 be needed by a family member of a service member: 5 (1) because the service member has received notice of deployment within 7 6 days before the deployment is to begin; 7 (2) to attend military events and related activities including family support 8 programs related to the active duty of the service member; 9 (3) to arrange, provide, or attend child care or school activities only when 10 the service member is on active duty call or active duty status; 11 (4) to make financial and legal arrangements for the service member’s 12 absence or because of the absence; 13 (5) to attend counseling that: 14 (i) is needed due to the active duty or call to active duty status of 15 the service member; and 16 (ii) is provided by an individual who is not a licensed health care 17 provider; 18 (6) to spend up to 15 calendar days with a service member who is on 19 short–term temporary rest and recuperation leave during the period of deployment; 20 (7) to attend postdeployment activities including reintegration services for 21 a period of 90 days immediately following the termination of active status; 22 (8) to attend to matters related to the death of the service member while 23 on active duty status; 24 (9) to arrange for or provide alternative care for a parent of the service 25 member when the parent is incapable of self–care and the covered active duty or call to 26 active duty necessitates a change; or 27 (10) because of any other issues that arise out of active duty or a call to 28 active duty that an employer and covered employee agree should be covered. 29 (n) “Secretary” means the Secretary of Labor. 30 SENATE BILL 828 5 (o) (1) “Serious health condition” means an illness, an injury, an impairment, 1 or a physical or mental condition that involves: 2 (i) inpatient care in a hospital, hospice, or residential health care 3 facility; 4 (ii) continued treatment by a licensed health care provider; or 5 (iii) continued treatment or supervision at home by a licensed health 6 care provider or other competent individual under the supervision of a licensed health care 7 provider. 8 (2) “Serious health condition” includes an illness, an injury, an 9 impairment, or a physical or mental condition described in paragraph (1) of this subsection 10 that continues over an extended period of time and requires intermittent treatment. 11 (p) “Service member” means an individual who is an active duty or former 12 member of: 13 (1) the United States armed forces; 14 (2) a reserve component of the United States armed forces; or 15 (3) the National Guard of any state. 16 (q) “Treatment” includes: 17 (1) examinations or testing to determine the extent to which a serious 18 health condition exists or persists; 19 (2) ongoing or periodic evaluations of the serious health condition; and 20 (3) actual treatment by a health care provider. 21 (R) “WAGES” HAS THE MEANING STATED IN : 22 (1) FOR A COVERED EMPLOY EE, § 3–501(C) OF THIS ARTICLE; AND 23 (2) FOR A SELF–EMPLOYED INDIVIDUAL , 26 U.S.C. § 1402(B) MEANS 24 ALL COMPENSATION THA T IS DUE FOR EMPLOYM ENT THAT IS: 25 (1) FOR AN EMPLOYEE : 26 (I) AN HOURLY WAGE OR A SALARY; 27 (II) A COMMISSION ; 28 6 SENATE BILL 828 (III) COMPENSATORY PAY ; 1 (IV) SEVERANCE PAY ; 2 (V) STANDBY PAY; 3 (VI) A TIP OR GRATUITY ; 4 (VII) HOLIDAY OR VACATION PAY; OR 5 (VIII) ANY OTHER PAID LEAVE , INCLUDING SICK LEAVE , THAT IS 6 PAID TO THE EMPLOYEE ENTIRELY BY THE EMPL OYER; OR 7 (2) FOR A SELF –EMPLOYED INDIVIDUAL , SELF–EMPLOYMENT 8 INCOME, AS DEFINED IN 26 U.S.C. § 1402(B). 9 8.3–301. 10 There is a Family and Medical Leave Insurance Program in the Department. 11 8.3–302. 12 The purpose of the Program is to provide temporary benefits to a covered individual 13 who is taking leave from employment: 14 (1) (I) to care for OR BOND WITH a child OF THE COVERED 15 INDIVIDUAL during the first year after the child’s birth; or [after the placement of the] 16 (II) DURING THE PROCESS THROUGH WHICH A child IS BEING 17 PLACED WITH THE COVE RED INDIVIDUAL through foster care, kinship care, or adoption 18 AND TO CARE FOR AND BOND WITH THE CHILD DURING THE FIRST YEA R AFTER THE 19 PLACEMENT ; 20 (2) to care for a family member with a serious health condition; 21 (3) because the covered individual has a serious health condition that 22 results in the covered individual being unable to perform the functions of the covered 23 individual’s position; 24 (4) to care for a service member who is the covered individual’s next of kin; 25 or 26 (5) because the covered individual has a qualifying exigency arising out of 27 the deployment of a service member who is a family member of the covered individual. 28 SENATE BILL 828 7 8.3–403. 1 (a) The Secretary, in consultation with other State agencies and relevant 2 stakeholders, shall: 3 (1) subject to subsection (b) of this section, adopt regulations necessary to 4 carry out this title; 5 (2) establish procedures and forms for filing claims for benefits, including: 6 (i) procedures for notifying an employer within [5 business days 7 after [an employee of the employer files a claim for benefits under this title] 3 BUSINESS 8 DAYS AFTER ANY OF THE FOLLOWING OCCURS: 9 1. AN EMPLOYEE FILES AN ELECTRONIC APPLICATI ON 10 REGARDING A CLAIM FO R BENEFITS; 11 2. AN EMPLOYEE ’S PAPER APPLICATION REGARDING A 12 CLAIM FOR BENEFITS I S PROCESSED; 13 3. A DETERMINATION REGA RDING A CLAIM FOR 14 BENEFITS IS MADE ; 15 4. AN APPEAL FOR A DETE RMINATION REGARDING A 16 CLAIM FOR BENEFITS I S FILED; OR 17 5. A CHANGE IS MADE TO A DETERMINATION REGARD ING 18 A CLAIM FOR BENEFITS ; and 19 (ii) notices of elections by self–employed individuals for benefits 20 under § 8.3–201 of this title; 21 (3) use information–sharing and integration technology to facilitate the 22 disclosure of relevant information or records needed for the administration of this title; and 23 (4) subject to subsection (d) of this section, carry out a public education 24 program. 25 (b) The regulations adopted under subsection (a)(1) of this section shall be 26 consistent with regulations adopted to implement the federal Family and Medical Leave 27 Act and any relevant State laws to the extent that the adopted regulations do not conflict 28 with this title. 29 (c) (1) Subject to paragraph (2) of this subsection, a covered individual under 30 § 8.3–302(2), (3), (4), or (5) of this title shall provide certification for a claim for benefits 31 under this title. 32 8 SENATE BILL 828 (2) A certification for a claim for benefits for a covered individual under § 1 8.3–302(2), (3), or (4) of this title shall include: 2 (I) FOR THE PURPOSE OF S UPPORTING THE CLAIM FOR 3 BENEFIT PAYMENTS , THE FIRST DATE ON WH ICH THE COVERED INDI VIDUAL TOOK 4 OR INTENDS TO TAKE L EAVE FROM EMPLOYMENT AND WHETHER THE LEAV E WILL 5 OR IS INTENDED TO BE TAKEN FOR A CONTINUO US PERIOD OF TIME OR 6 INTERMITTENTLY ; 7 [(i)] (II) the date on which the serious health condition of the 8 family member, covered individual, or service member commenced; 9 [(ii)] (III) the probable duration of the serious health condition; 10 [(iii)] (IV) the appropriate facts related to the serious health 11 condition within the knowledge of the licensed health care provider; 12 [(iv)] (V) 1. For a claim for benefits under § 8.3–302(2) of this 13 title, a statement that the covered individual needs to care for a family member and an 14 estimate of the amount of time required to provide the care; or 15 2. for a claim for benefits under § 8.3–302(3) of this title, a 16 statement that the covered individual [is unable] HAS A SERIOUS HEALTH CONDITION 17 THAT PREVENTS THE CO VERED INDIVIDUAL FROM BEING ABLE to perform [the] ONE 18 OR MORE functions of the covered individual’s position; and 19 [(v)] (VI) 1. For a certification for intermittent leave under § 20 8.3–302(2) or (4) of this title, a statement that the covered individual needs to care for a 21 family member or service member and the expected FREQUENCY AND duration of the 22 intermittent leave; or 23 2. for a certification of intermittent leave under § 8.3–302(3) 24 of this title, a statement that the covered individual [is unable] HAS A SERIOUS HEALTH 25 CONDITION THAT PREVE NTS THE COVERED INDI VIDUAL FROM BEING AB LE to 26 perform [the] ONE OR MORE functions of the covered individual’s position and the expected 27 FREQUENCY AND duration of the intermittent leave. 28 (3) The Secretary shall establish: 29 (i) standards in regulation for the certification of claims for benefits 30 under § 8.3–302(5) of this title; 31 (ii) standards for verifying the identity of a family member OR NEXT 32 OF KIN for a claim for benefits under § 8.3–302(2), (4), OR (5) of this title; and 33 SENATE BILL 828 9 (iii) procedures for an employer to provide evidence of suspected 1 fraud to the Secretary. 2 (d) (1) The Secretary may use a portion of the funds paid under § 8.3–601 of 3 this title or other available funding to pay for and carry out the requirements under 4 subsection (a)(4) of this section. 5 (2) Materials used in the public education program required under 6 subsection (a)(4) of this section shall be made available in English and Spanish. 7 8.3–406. 8 (a) On or before September 1 each year, the Secretary shall submit to the 9 Governor and, in accordance with § 2–1257 of the State Government Article, the General 10 Assembly an annual report on the administration and operation of [this title] THE 11 PROGRAM during the immediately preceding fiscal year. 12 (b) The annual report shall include information regarding: 13 (1) [projected and] actual Program participation rates THAT INCLUDES: 14 (I) THE NUMBER OF CLAIMS FOR BENEFITS SUBMITT ED, BOTH 15 IN TOTAL AND FOR EAC H CATEGORY LISTED IN § 8.3–302 OF THIS TITLE; 16 (II) THE NUMBER OF CLAIMS INCLUDED UNDER ITEM (I) OF THIS 17 ITEM BROKEN DOWN BY : 18 1. JURISDICTION; 19 2. RACE AND ETHNICITY; 20 3. GENDER; 21 4. ZIP CODE; AND 22 5. AGE; 23 (III) THE NUMBER OF CLAIMS FOR BENEFITS APPROVE D, BOTH 24 IN TOTAL AND FOR EAC H CATEGORY LISTED IN § 8.3–302 OF THIS TITLE; 25 (IV) THE NUMBER OF CLAIMS INCLUDED UNDER ITEM (III) OF 26 THIS ITEM BROKEN DOWN BY : 27 1. JURISDICTION; 28 10 SENATE BILL 828 2. RACE AND ETHNICITY ; 1 3. GENDER; 2 4. ZIP CODE; AND 3 5. AGE; 4 (V) THE TOTAL NUMBER OF CLAIMS FOR BENEFITS DENIED, 5 BOTH IN TOTAL AND BY CATEGORY LISTED IN § 8.3–602 OF THIS TITLE; AND 6 (VI) THE NUMBER OF CLAIMS INC LUDED UNDER ITEM (V) OF 7 THIS ITEM BROKEN DOW N BY: 8 1. JURISDICTION; 9 2. RACE AND ETHNICITY ; 10 3. GENDER; 11 4. ZIP CODE; AND 12 5. AGE; 13 (2) PROJECTED PARTICIPAT ION RATES; 14 (3) contribution rates; 15 [(3)] (4) projected and actual Fund balances; 16 [(4)] (5) public outreach and technical assistance efforts; 17 [(5)] (6) all enforcement efforts; 18 [(6)] (7) the number and status of complaints under Subtitle 9 of this 19 title; 20 [(7)] (8) the costs of administering the Program attributable to each of 21 the following: 22 (i) employers; 23 (ii) employees of employers; 24 (iii) self–employed individuals; and 25 SENATE BILL 828 11 (iv) the State; 1 [(8)] (9) the State agencies and relevant stakeholders that were consulted 2 as required under this title; and 3 [(9)] (10) the capability and capacity of the Department to administer the 4 Program as compared to the findings and recommendations of the capability and capacity 5 study completed under § 5 of Chapter 48 of the Acts of the General Assembly of 2022. 6 (C) THE REPORTING REQUIRE MENT ESTABLISHED UND ER SUBSECTION (A) 7 OF THIS SECTION DOES NOT APPLY TO AN EMPL OYER THAT HAS A PRIV ATE 8 EMPLOYER PLAN DESCRI BED IN § 8.3–705 OF THIS TITLE. 9 8.3–504. 10 (d) In accordance with regulations that the Secretary adopts, money in the Fund 11 account: 12 (1) shall be used to pay benefits under this title; and 13 (2) may be used to pay for: 14 (i) the public education program CARRIED OUT UNDER § 15 8.3–403(A)(4) OF THIS TITLE; and 16 (ii) any costs associated with the initial implementation and ongoing 17 administration of this title. 18 8.3–505. 19 A check that [the State Treasurer issues] IS ISSUED to pay benefits or refunds shall: 20 (1) [be issued only on a warrant signed by] BEAR THE SIGNATURE O F the 21 Secretary; AND 22 (2) bear the signature of the State Treasurer; and 23 (3) be countersigned by an authorized agent. 24 8.3–601. 25 (a) (1) Beginning [October 1, 2023] JANUARY OCTOBER 1, 2024, each 26 employee of an employer, each employer with 15 or more employees, and each 27 self–employed individual participating in the Program shall contribute to the Fund. 28 12 SENATE BILL 828 (2) THE TOTAL RATE OF CON TRIBUTION ESTABLISHE D UNDER THIS 1 SECTION: 2 (I) MAY NOT EXCEED 1.2% OF AN EMPLOYEE ’S WAGES; AND 3 (II) SHALL BE APPLIED TO ALL WAGES UP TO AND INCLUDING 4 THE SOCIAL SECURITY WAGE BASE . 5 (b) (1) ON SUBJECT TO SUBSECTION (A)(2) OF THIS SECTION , ON OR 6 BEFORE SEPTEMBER OCTOBER 1, 2023, THE SECRETARY SHALL SET T HE TOTAL 7 RATE OF CONTRIBUTION BASED ON AVAILABLE C OST ANALYSES OF THE PROGRAM. 8 (2) THE RATE SET UNDER PA RAGRAPH (1) OF THIS SUBSECTION 9 SHALL BE IN EFFECT F OR THE PERIOD FROM JANUARY OCTOBER 1, 2024, TO JUNE 10 30, 2025 2026, BOTH INCLUSIVE . 11 (C) (1) On or before [December 1 every 2 years] NOVEMBER 15 EACH YEAR, 12 beginning in [2025] 2024, the Secretary[, in consultation with State agencies and relevant 13 stakeholders,] shall conduct a cost analysis of the Program that is focused on the cost of 14 maintaining solvency and paying benefits to covered individuals THAT WILL BE USED TO 15 DETERMINE THE A PPROPRIATE TOTAL RAT E OF CONTRIBUTION TO THE FUND. 16 [(c) (1) Once every 2 years, beginning in 2025, the Secretary, in consultation 17 with State agencies and relevant stakeholders, shall study and make recommendations 18 regarding the following: 19 (i) the appropriate total rate of contribution; 20 (ii) the appropriate cost–sharing formula between employers and 21 employees for making contributions to fund the Program, including various formulas that 22 range between a cost share of: 23 1. A. 75% paid by employers; and 24 B. 25% paid by employees; and 25 2. A. 25% paid by employers; and 26 B. 75% paid by employees; 27 (iii) the cost efficiency and benefits of the Department issuing a 28 request for proposals seeking the services of an outside contractor for the following: 29 1. premium collection; 30 2. claims administration; 31 SENATE BILL 828 13 3. data management; 1 4. fraud control; 2 5. marketing and advertising; or 3 6. implementing any other elements of the Program.] 4 (2) On or before [April 1] NOVEMBER 15 each year [a study is conducted 5 under paragraph (1) of this subsection], the Secretary shall report the [findings and 6 recommendations] RESULTS OF THE COST ANALYSIS to the Senate Finance Committee, 7 the House Economic Matters Committee, and the Joint Committee on Administrative, 8 Executive, and Legislative Review in accordance with § 2–1257 of the State Government 9 Article. 10 (d) (1) Subject to paragraph (2) of this subsection AND SUBSECTION (A)(2) 11 OF THIS SECTION , on or before [June 1 every 2 years,] FEBRUARY 1 EACH YEAR, 12 beginning in 2025 2026, the Secretary shall set the total rate of contribution [and the 13 percentage of the total rate of contribution to be paid by employees of employers and 14 employers with 15 or more employees ] that will be in effect for the 15 [24–month] 12–MONTH period beginning on the immediately following [January] JULY 1. 16 (2) The rate [and percentages] set under paragraph (1) of this subsection 17 shall be based on the study COST ANALYSIS required under subsection (c) of this section. 18 [(3)] (E) The total rate of contribution shall be applied to all wages up to 19 and including the Social Security wage base. 20 [(4) The percentages set under paragraph (1) of this subsection may not 21 vary between employees or employers.] 22 [(e)] (F) (1) (I) EXCEPT AS OTHERWISE P ROVIDED IN THIS SECT ION, 23 EACH EMPLOYER OF 15 OR MORE EMPLOYEES SH ALL CONTRIBUTE AN AM OUNT 24 EQUAL TO 25% 50% OF THE TOTAL RATE OF CO NTRIBUTION FOR EACH COVERED 25 EMPLOYEE. 26 (II) EXCEPT AS OTHERWISE P ROVIDED IN THIS SECT ION, EACH 27 EMPLOYEE OF AN EMPLO YER SHALL CONTRIBUTE AN AMOUNT EQUAL TO 75% 50% 28 OF THE TOTAL RATE OF CONTRIBUTION . 29 [(1)] (2) (I) Except as provided in [paragraph (2) of this subsection] 30 SUBPARAGRAPH (II) OF THIS PARAGRAPH , the employer of the employee shall deduct 31 the employee’s required contribution from the wages of the employee. 32 14 SENATE BILL 828 (II) 1. AN EMPLOYER MAY ELECT TO PAY ALL OR A PORTION 1 OF THE REQUIRED EMPL OYEE CONTRIBUTIONS I N WHOLE OR IN PART . 2 [(2)] 2. If the employer of an employee elects to pay a portion of 3 the employee’s required contribution, the employer: 4 A. may deduct an amount that is less than 75% 50% of the 5 rate of contribution required from the wages of the employee; AND 6 B. SHALL NOTIFY EMPLOYE ES OF THE RATE OF 7 CONTRIBUTION SET FOR EMPLOYEES UNDER SUBS ECTION (D)(1) OF THIS SECTION 8 AND THE PORTION OF T HAT AMOUNT THAT THE EMPLOYER IS ELECTING TO PAY. 9 [(f)] (G) Each self–employed individual participating in the Program shall: 10 (1) pay contributions during each year that the self–employed individual 11 participates in the Program; and 12 (2) contribute an amount equal to the total rate of contribution set under 13 subsection (d) of this section. 14 (H) THE STATE SHALL PAY THE C ONTRIBUTION REQUIRED UNDER 15 SUBSECTION (F) OF THIS SECTION FOR : 16 (1) EMPLOYERS THAT ARE C OMMUNITY PROVIDERS T HAT ARE 17 COMMUNITY –BASED AGENCIES OR PR OGRAMS FUNDED BY THE BEHAVIORAL 18 HEALTH ADMINISTRATION , THE DEVELOPMENTAL DISABILITIES 19 ADMINISTRATION , OR THE MEDICAL CARE PROGRAMS ADMINISTRATION THAT 20 SERVE INDIVIDUALS WI TH MENTAL DISORDERS , SUBSTANCE USE DISORD ERS, OR A 21 COMBINATION OF THOSE DISORDERS OR DEVELOP MENTAL DISABILITIES ; AND 22 (2) COVERED EMPLOYEES WH O MAKE AN HOURLY WAG E THAT IS LESS 23 THAN $15 PER HOUR, UNLESS THE EMPLOYER OF THE COVERED EMPLO YEE ELECTS 24 TO PAY ALL OF A PORT ION OF THE EMPLOYEE ’S REQUIRED CONTRIBUT ION. 25 (G) (1) THE MARYLAND DEPARTMENT OF HEALTH SHALL REIMBURS E 26 EACH: 27 (I) COMMUNITY PROVIDER T HAT IS REQUIRED TO B E LICENSED 28 OR CERTIFIED UNDER TITLE 7 OF THE HEALTH – GENERAL ARTICLE FOR 100% OF 29 THE EMPLOYER CONTRIB UTION REQUIRED UNDER SUBSECTION (F) OF THIS 30 SECTION FOR EMPLOYEE S WHO MANAGE OR PROV IDE SERVICES UNDER TITLE 7 OF 31 THE HEALTH – GENERAL ARTICLE; 32 SENATE BILL 828 15 (II) COMMUNITY PROVIDER T HAT IS REQUIRED TO B E LICENSED 1 OR CERTIFIED UNDER TITLE 7.5 OF THE HEALTH – GENERAL ARTICLE FOR A 2 PERCENTAGE OF THE EM PLOYER CONTRIBUTION REQUIRED UNDER SUBSE CTION 3 (F) OF THIS SECTION FO R EMPLOYEES WHO MANA GE OR PROVIDE SERVIC ES UNDER 4 TITLE 7.5 OF THE HEALTH – GENERAL ARTICLE THAT IS EQUAL TO THE 5 PERCENTAGE OF REVENU E THAT IS ATTRIBUTAB LE TO FEDERAL AND STATE 6 MEDICAID FUNDING AND ANY OTHER STATE FUNDING RECEIVE D BY THE 7 COMMUNITY PROVIDER FOR THE SERVICES DUR ING THE PERIOD COVER ED BY THE 8 REIMBURSEMENT ; OR 9 (III) PROVIDER, AS DEFINED IN § 16–201.4 OF THE HEALTH – 10 GENERAL ARTICLE, FOR A PERCENTAGE OF THE EMPLOYER CONTRIB UTION 11 REQUIRED UNDER SUBSE CTION (F) OF THIS SECTION FOR EMPLOYEES WHO MANAGE 12 OR PROVIDE SERVICES DESCRIBED IN § 16–201.4(A) OF THE HEALTH – GENERAL 13 ARTICLE THAT IS EQUAL TO THE PERCENTAGE OF REVENUE ATTRIBUTABLE TO 14 FEDERAL AND STATE MEDICAID FUNDING AND ANY OTHER STATE FUNDING 15 RECEIVED BY THE PROV IDER FOR THE SERVICE S DURING THE PERIOD COVERED B Y 16 THE REIMBURSEMENT . 17 (2) THE MARYLAND DEPARTMENT OF HEALTH SHALL MAKE THE 18 REIMBURSEMENTS REQUI RED UNDER PARAGRAPH (1) OF THIS SUBSECTION A T 19 LEAST QUARTERLY . 20 (3) TO RECEIVE REIMBURSEM ENT UNDER PARAGRAPH (1) OF THIS 21 SUBSECTION, A PROVIDER SHALL PROVID E TO THE MARYLAND DEPARTMENT OF 22 HEALTH ANY INFORMATIO N NECESSARY TO CARRY OUT THIS SUBSECTION IN THE 23 FORM AND MANNER REQU IRED BY THE MARYLAND DEPARTMENT OF HEALTH. 24 8.3–701. 25 (a) (1) Subject to paragraph (2) of this subsection, beginning January 1, 2025 26 2026, a covered individual taking leave from employment may submit a claim for benefits 27 [to]: 28 (i) 1. TO care for a newborn child OF THE COVERED 29 INDIVIDUAL DURING TH E FIRST YEAR AFTER T HE CHILD’S BIRTH; or 30 2. BECAUSE a child [newly] IS BEING placed for adoption, 31 foster care, or kinship care with the covered individual [during the first year after the birth, 32 adoption,] or TO CARE FOR OR BOND WITH THE CHILD DURIN G THE FIRST YEAR AFT ER 33 THE placement; 34 (ii) TO care for a family member with a serious health condition; 35 16 SENATE BILL 828 (iii) TO attend to a serious health condition that [results in] 1 PREVENTS the covered individual FROM being [unable] ABLE to perform [the] ONE OR 2 MORE functions of the covered individual’s position; 3 (iv) TO care for a service member with a serious health condition 4 resulting from military service who is the covered individual’s next of kin; or 5 (v) TO attend to a qualifying exigency arising out of the deployment 6 of a service member who is a family member of the covered individual. 7 (2) (i) Except as provided under subparagraph (ii) of this paragraph, if 8 the need to use leave is foreseeable, an employer may require a covered employee taking 9 leave under this title to provide the employer with written notice of the covered employee’s 10 intention to take leave at least 30 days before commencing the leave. 11 (ii) If the need to use leave is not foreseeable, the covered employee 12 shall: 13 1. provide notice to the employer as soon as practicable; and 14 2. generally comply with the employer’s notice or procedural 15 requirements for requesting or reporting other leave, if those requirements do not interfere 16 with the covered employee’s ability to use leave for which benefits may be paid under this 17 title. 18 (B) (1) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , AN 19 INDIVIDUAL MAY FILE AN APPLICATION FOR B ENEFITS WITHIN 60 DAYS BEFORE THE 20 ANTICIPATED START DA TE OF THE LEAVE FOR WHICH BENEFITS MAY B E PAID 21 UNDER THIS TITLE , BUT NOT LATER THAN 60 DAYS AFTER THE START DATE OF THE 22 LEAVE. 23 (2) TO BE CONSIDERED COMP LETE, AN APPLICATION SHALL CONTAIN 24 ALL INFORMATION REQU IRED BY THE DEPARTMENT . 25 (3) (I) THE DEPARTMENT SHALL WAIV E THE FILING DEADLIN E 26 ESTABLISHED UNDER PA RAGRAPH (1) OF THIS SUBSECTION F OR GOOD CAUSE . 27 (II) IF THE COVERED INDIVIDU AL DOES NOT HAVE GOO D CAUSE 28 FOR THE DELAY IN COM PLETING THE CLAIM AP PLICATION, THE SECRETARY MAY 29 DELAY OR DENY BENEFI TS UNDER THIS TITLE . 30 [(b)] (C) (1) Subject to paragraphs (2) and (3) of this subsection, a covered 31 individual may take the leave for which the individual is eligible for benefits under 32 subsection (a) of this section on an intermittent leave schedule. 33 SENATE BILL 828 17 (2) If leave is taken on an intermittent leave schedule, the covered 1 individual shall: 2 (i) make a reasonable effort to schedule the intermittent leave in a 3 manner that does not unduly disrupt the operations of the employer; and 4 (ii) provide the employer with reasonable and practicable prior 5 notice of the reason for which the intermittent leave is necessary. 6 (3) A covered employee may not take intermittent leave in an increment of 7 less than 4 hours. 8 (4) If leave is taken on an intermittent leave schedule, an employer may 9 not reduce the total amount of leave to which the covered individual is entitled beyond the 10 amount of leave actually taken. 11 8.3–702. 12 (a) (1) Except as provided in paragraph (2) of this subsection, a covered 13 individual may not receive more than 12 weeks of benefits in an application year. 14 (2) A covered individual may receive an additional 12 weeks of benefits if 15 the covered individual during the same application year: 16 (i) 1. Received benefits because the covered individual was 17 eligible for benefits under § 8.3–701(a)(1)(i) of this subtitle; and 18 2. becomes eligible for benefits under § 8.3–701(a)(1)(iii) of 19 this subtitle; or 20 (ii) 1. Received benefits because the covered individual was 21 eligible for benefits under § 8.3–701(a)(1)(iii) of this subtitle; and 22 2. becomes eligible for benefits under § 8.3–701(a)(1)(i) of 23 this subtitle. 24 [(b) If a covered individual takes leave for which the covered individual is receiving 25 benefits under this title, the leave shall run concurrently with eligible leave that may be 26 taken by the covered individual under the federal Family and Medical Leave Act.] 27 (B) (C) THE DEPARTMENT MAY COUNT THE LEAVE AGAINST A COVERED 28 INDIVIDUAL TAKEN UNDER THE FEDE RAL FAMILY AND MEDICAL LEAVE ACT 29 AGAINST A COVERED IN DIVIDUAL’S MAXIMUM DURATION O F LEAVE FOR WHICH 30 BENEFITS ARE AVAILAB LE UNDER THIS TITLE IN AN APPLICATION YEAR FOR THE 31 SAME PURPOSE , IF: 32 18 SENATE BILL 828 (1) AN EMPLOYER DESIGNAT ES A PERIOD OF LEAVE AS COVERED BY 1 THE FEDERAL FAMILY AND MEDICAL LEAVE ACT FOR A COVERED IND IVIDUAL WHO 2 WOULD ALSO QUALIFY F OR BENEFITS UNDER § 8.3–302 OF THIS TITLE; 3 (2) THE EMPLOYER INFORMS THE COVERED INDIVIDU AL OF THE 4 INDIVIDUAL’S ELIGIBILITY FOR BE NEFITS UNDER THIS TI TLE; AND 5 (3) THE EMPLOYEE DECLINE S TO APPLY FOR BENEF ITS UNDER THIS 6 TITLE. 7 (c) (D) (1) A covered individual [shall exhaust all employer–provided leave that is 8 not required to be provided under law before receiving benefits under this title] MAY NOT 9 BE REQUIRED TO USE O R EXHAUST PAID VACAT ION, PAID SICK LEAVE , OR OTHER 10 PAID TIME OFF UNDER AN EMPLOYER POLICY B EFORE, OR WHILE, RECEIVING 11 BENEFITS UNDER THIS TITLE. 12 [(2) For the purposes of §§ 8.3–706 and 8.3–707 of this subtitle and §§ 13 8.3–904 and 8.3–905 of this title, employer–provided leave that is being exhausted as 14 required under paragraph (1) of this subsection shall be treated the same as leave from 15 work for which benefits may be paid under this title.] 16 (2) A COVERED INDIVIDUAL A ND AN EMPLOYER MAY A GREE TO USE 17 PAID VACATION , PAID SICK LEAVE , OR OTHER PAID TIME O FF WHILE A COVERED 18 INDIVIDUAL IS RECEIVING BENEFITS A VAILABLE UNDER THIS TITLE TO REPLACE 19 THE COVERED INDIVIDU AL’S WAGES UP TO 100% OF THE COVERED INDIV IDUAL’S 20 AVERAGE WEEKLY WAGE DURING THE PERIOD OF LEAVE FOR WHICH BENE FITS ARE 21 RECEIVED UNDER THIS TITLE. 22 (3) NOTWITHSTANDING PARAG RAPH (1) OF THIS SUBSECTION , AN 23 EMPLOYER MAY REQUIRE THAT BENEFIT PAYMENT S UNDER THIS TITLE B E MADE 24 CONCURRENTLY , OR OTHERWISE COORDIN ATED WITH PAYMENTS M ADE OR LEAVE 25 THAT IS ALLOWED UNDE R THE TERMS OF A SEP ARATE EMPLOYER –PROVIDED LEAVE 26 POLICY DUE TO PARENT AL CARE, FAMILY CARE, OR MILITARY LEAVE OR UNDER A 27 DISABILITY POLICY . 28 [(3)] (4) This subsection may not be construed to reduce any weeks of 29 leave for which benefits may be paid under this title. 30 (d) (E) (1) Except as provided in paragraph (2) of this subsection, an individual 31 receiving benefits under Title 8 of this article or wage replacement benefits under Title 9 32 of this article is not eligible to receive benefits under this title. 33 (2) An individual receiving compensation for a permanent partial disability 34 under Title 9 of this article may be eligible for benefits under this title. 35 SENATE BILL 828 19 8.3–703. 1 (a) For the purposes of this section: 2 (1) the covered individual’s average weekly wage shall be calculated as the 3 total wages received by the covered individual over the last 680 hours for which the covered 4 individual was paid divided by the number of weeks worked; and 5 (2) the State average weekly wage shall be the wage calculated under § 6 9–603 of this article. 7 (b) (1) Subject to [paragraph] PARAGRAPHS (2) AND (3) of this subsection, 8 the weekly benefit amount payable to a covered individual under this title shall be: 9 (i) if the covered individual’s average weekly wage is 65% or less of 10 the State average weekly wage, 90% of the covered individual’s average weekly wage; OR 11 (ii) if the covered individual’s average weekly wage is greater than 12 65% of the State average weekly wage, the sum of: 13 1. 90% of the covered individual’s average weekly wage up to 14 65% of the State average weekly wage; and 15 2. 50% of the covered individual’s average weekly wage that 16 is greater than 65% of the State average weekly wage[; or 17 (iii) if the covered individual is taking partially paid leave, the lesser 18 of: 19 1. the amount required to make up the difference between 20 the wages paid to the covered individual while the covered individual is taking partially 21 paid leave and the full wages normally paid to the covered individual; and 22 2. if the covered individual’s average weekly wage is greater 23 than 65% of the State average weekly wage, the sum of: 24 A. 90% of the covered individual’s average weekly wage up to 25 65% of the State average weekly wage; and 26 B. 50% of the covered individual’s average weekly wage that 27 is greater than 65% of the State average weekly wage]. 28 (2) THE BENEFIT PAID UNDE R THIS TITLE AND ANY ADDITIONAL PAID 29 LEAVE CANNOT TOTAL M ORE THAN 100% OF THE COVERED INDIV IDUAL’S AVERAGE 30 WEEKLY WAGE . 31 20 SENATE BILL 828 (3) The weekly benefit amount payable under paragraph (1) of this 1 subsection: 2 (i) shall be at least $50; and 3 (ii) may not exceed: 4 1. for the 12–month period beginning January 1, 2025 2026, 5 $1,000; and 6 2. for the 12–month period beginning January 1, 2026 2027, 7 and each subsequent 12–month period, the amount determined and announced by the 8 Secretary under paragraph [(3)] (4) of this subsection. 9 [(3)] (4) (i) In this paragraph, “Consumer Price Index” means the 10 Consumer Price Index for All Urban Consumers for the 11 Washington–Arlington–Alexandria, DC–VA–MD–WV metropolitan area or a successor 12 index published by the federal Bureau of Labor Statistics. 13 (ii) Subject to subsection (e) of this section, for the 12–month period 14 beginning January 1, 2026 2027, and each subsequent 12–month period, the maximum 15 weekly benefit amount shall be increased by the amount, rounded to the nearest cent, that 16 equals the product of: 17 1. the maximum weekly benefit amount in effect for the 18 immediately preceding 12–month period; and 19 2. the annual percentage growth in the Consumer Price 20 Index for the immediately preceding 12–month period, as determined by the Secretary 21 under subparagraph (iii)1 of this paragraph. 22 (iii) Beginning September 1, 2025 2026, and on each subsequent 23 September 1, the Secretary shall determine and announce: 24 1. the annual percentage growth, if any, in the Consumer 25 Price Index based on the most recent 12–month period for which data are available on 26 September 1; and 27 2. the maximum weekly benefit amount effective for the 28 12–month period beginning the immediately following January 1. 29 (c) (1) [An] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 30 SUBSECTION, AN increase in the weekly benefit amount under subsection [(b)(3)](B)(4) of 31 this section applies only to a claim for benefits [filed] THAT BEGINS after the date the 32 increase becomes effective. 33 SENATE BILL 828 21 (2) IF THE LEAVE FOR WHIC H BENEFITS ARE BEING PAID IS BEING 1 TAKEN INTERMITTENTLY , AN INCREASE IN THE W EEKLY BENEFIT AMOUNT SHALL 2 APPLY TO A CLAIM FOR BENEFITS AS SPECIFIE D IN REGULATIONS ADO PTED BY THE 3 DEPARTMENT . 4 (d) The Department shall: 5 (1) notify the employer of a covered individual within [5] 3 business days 6 after the covered individual files a [claim] COMPLETED APPLICATIO N for benefits under 7 this title; 8 (2) NOTIFY THE COVERED I NDIVIDUAL WITHIN 3 5 BUSINESS DAYS 9 AFTER THE INDIVIDUAL FILES AN APPLICATION , IF THE APPLICATION I S 10 CONSIDERED TO BE INCOMPLETE UNDER § 8.3–701(B)(2) OF THIS SUBTITLE DUE TO 11 MISSING INFORMATION THAT IS NECESSARY TO COMPLETE THE CLAIM ; 12 (3) approve or deny the claim and notify the covered individual and the 13 covered individual’s employer within 10 business days after the covered individual files the 14 [claim] COMPLETED APPLICATIO N; 15 [(3)] (4) make the first payment of benefits to a covered individual within 16 5 business days after the [claim] COMPLETED APPLICATIO N is approved OR THE LEAVE 17 HAS STARTED, WHICHEVER IS LATER ; and 18 [(4)] (5) make subsequent payments every 2 weeks until the benefit 19 period ends. 20 (e) (1) In this subsection, “Board” means the Board of Public Works. 21 (2) Subject to paragraph (4) of this subsection, on or before September 1 22 each year, beginning in 2025 2026, the Board shall determine whether the seasonally 23 adjusted total employment from the Current Employment Statistics series as reported by 24 the U.S. Bureau of Labor Statistics for the most recent 6–month period is negative as 25 compared with the immediately preceding 6–month period. 26 (3) (i) Subject to paragraph (4) of this subsection, the Board may 27 temporarily suspend an increase in the maximum weekly benefit specified under subsection 28 [(b)(2)(ii)] (B)(3)(II) of this section if the Board determined under paragraph (2) of this 29 subsection that the seasonally adjusted total employment is negative. 30 (ii) If the seasonally adjusted total employment is negative, the 31 Board may consider the performance of State revenues in the immediately preceding 6 32 months, as reported by the Office of the Comptroller, in determining whether to temporarily 33 suspend an increase to the maximum weekly benefit specified under subsection [(b)(2)(ii)] 34 (B)(3)(II) of this section. 35 22 SENATE BILL 828 (4) If the Board temporarily suspends an increase to the maximum weekly 1 benefit specified under subsection [(b)(2)(ii)2] (B)(3)(II)2 of this section: 2 (i) the maximum weekly benefit in effect for the period beginning 3 the following January 1 shall remain the same as the rate that was in effect for the 4 immediately preceding 12–month period; and 5 (ii) the Board shall notify the Secretary that the maximum weekly 6 benefit increase for the period beginning the following January 1 is suspended for 1 year. 7 (f) The Department shall notify each employer of the increase to the maximum 8 weekly benefit specified under subsection [(b)(2)(ii)] (B)(3)(II) of this section. 9 8.3–705. 10 (a) (1) An employer may satisfy the requirements of this title through a 11 private employer plan consisting of employer–provided benefits, insurance THROUGH AN 12 INSURER THAT HOLDS A CERTIFICATE OF AUTHO RITY ISSUED BY THE MARYLAND 13 INSURANCE COMMISSIONER , or a combination of both if the private employer plan is 14 offered to all of the employer’s eligible employees and meets or exceeds the rights, 15 protections, and benefits provided to a covered employee under this title. 16 (2) (I) TO DETERMINE THE BENE FIT AMOUNT UNDER A PRIVATE 17 EMPLOYER PLAN , THE WEEKLY BENEFIT A MOUNT SHALL BE BASED ON THE 18 AVERAGE WEEKLY WAGE EARNED FROM THE EMPL OYER SPONSORING THE PRIVATE 19 EMPLOYER PLAN . 20 (II) NOTWITHSTANDING SUBPA RAGRAPH (I) OF THIS 21 PARAGRAPH , IF AN INDIVIDUAL HAS WORKED LESS THAN 680 HOURS FOR THE 22 EMPLOYER SPONSORING THE PRIVATE EMPLOYER PLAN, THE WEEKLY BENEFIT 23 AMOUNT SHALL BE BASE D ON THE AVERAGE WEE KLY WAGE UNDER § 8.3–703(A) OF 24 THIS SUBTITLE. 25 (III) THIS SUBSECTION MAY N OT BE CONSTRUED TO P REVENT A 26 PRIVATE EMPLOYER PLA N FROM PROVIDING A BENEFIT T HAT IS GREATER THAN 27 THAT PROVIDED IN § 8.3–703(A) OF THIS SUBTITLE. 28 (b) A private employer plan shall be filed with the Department for approval. 29 (c) An employer that provides covered employees with a private employer plan 30 and an employee that is covered by a private employer plan are exempt from the 31 contributions required under Subtitle 6 of this title. 32 SENATE BILL 828 23 (D) AN EMPLOYER THAT PROV IDES A PRIVATE EMPLO YER PLAN MAY NOT 1 DEDUCT FROM AN EMPLO YEE MORE THAN THE MA XIMUM CONTRIBUTION A MOUNT 2 SET BY THE DEPARTMENT . 3 8.3–801. 4 (a) An employer shall provide written notice to each employee of the rights and 5 duties of an employee under this title at the time of hire and annually thereafter. 6 (b) (1) When an employee requests leave under this title, or when an employer 7 knows that an employee’s leave may be for a reason under § 8.3–302 of this title, the 8 employer shall notify the employee of the employee’s eligibility to take leave for which 9 benefits may be paid under this title within 5 business days. 10 (2) The notice provided under paragraph (1) of this subsection shall 11 include: 12 (i) the right of [an eligible] A COVERED employee to receive 13 Program benefits under this title; 14 (ii) the procedure for filing a claim for benefits; 15 (iii) [an eligible] A COVERED employee’s responsibilities with 16 respect to providing notification prior to the commencement of leave and any penalties for 17 failing to do so; 18 (iv) the right of an employee to file a complaint for alleged violations 19 of this title; 20 (v) the right of [an eligible] A COVERED employee to job protection; 21 and 22 (vi) a description of the prohibited acts, penalties, and complaint 23 procedures under Subtitle 9 of this title. 24 (c) (1) The Department shall develop standard notices for an employer to use 25 under this subtitle. 26 (2) The notices required under this subtitle shall be provided in accordance 27 with regulations adopted by the Secretary. 28 8.3–906. 29 (a) (1) (I) The Secretary shall establish a system for appeals by covered 30 individuals [in the case of denial] REGARDING DETERMINAT IONS OF BENEFIT 31 AMOUNTS, BENEFIT DURATIONS , AND DENIALS of benefits under this title. 32 24 SENATE BILL 828 (II) A COVERED INDIVIDUAL M UST FILE AN APPEAL U NDER 1 SUBPARAGRAPH (I) OF THIS PARAGRAPH WI THIN 30 DAYS AFTER THE 2 DETERMINATION IS MAD E OR BENEFITS ARE DE NIED, UNLESS GOOD CAUSE CA N BE 3 SHOWN FOR THE DELAY . 4 (2) The Secretary may use the procedures under § 8–806 of this article for 5 the system required under paragraph (1) of this subsection. 6 (b) Judicial review of any decision with respect to benefits under this title shall 7 be allowed in a court of competent jurisdiction after an aggrieved party has exhausted all 8 administrative remedies established by the Secretary under this title. 9 (c) The Secretary shall implement procedures to ensure confidentiality of all 10 information related to any claims filed or appeals taken to the maximum extent allowed by 11 law. 12 Chapter 48 of the Acts of 2022 13 [SECTION 3. AND BE IT FURTHER ENACTED, That: 14 (a) On or before June 1, 2023, the Secretary of Labor shall set the total rate of 15 contribution and percentage of the total rate of contribution to be paid by employees of 16 employers and employers with 15 or more employees under § 8–601(a) of the Labor and 17 Employment Article, as enacted by Section 1 of this Act, effective October 1, 2023. 18 (b) The rate and percentages set under subsection (a) of this section shall be: 19 (1) based on the study required under Section 11(2) of this Act; and 20 (2) in effect from October 1, 2023, through December 31, 2025, both 21 inclusive.] 22 [SECTION 10. AND BE IT FURTHER ENACTED, That, on or before June 1, 2023, 23 the Secretary of Labor shall adopt regulations as required under § 8.3–403 of the Labor and 24 Employment Article, as enacted by Section 1 of this Act.] 25 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 26 as follows: 27 Article – Labor and Employment 28 8.3–601. 29 (h) The State shall pay the contribution required under subsection (f) of this 30 section for[: 31 SENATE BILL 828 25 (1)] employers that are community providers that are community–based 1 agencies or programs funded by the Behavioral Health Administration, the Developmental 2 Disabilities Administration, or the Medical Care Programs Administration that serve 3 individuals with mental disorders, substance use disorders, or a combination of those 4 disorders or developmental disabilities[; and 5 (2) covered employees who make an hourly wage that is less than $15 per 6 hour, unless the employer of the covered employee elects to pay all or a portion of the 7 employee’s required contribution]. 8 SECTION 2. AND BE IT FURTHER ENACTED, That, on or before January 1, 2024, 9 the Secretary of Labor shall adopt regulations as required under § 8.3–403 of the Labor and 10 Employment Article. 11 SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 12 effect July 1, 2026. 13 SECTION 4 3. AND BE IT FURTHER ENACTED, That , except as provided in 14 Section 3 of this Act, this Act shall take effect June 1, 2023. 15 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.