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