Maryland 2025 Regular Session

Maryland Senate Bill SB225 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0225
6	6
7	7	SENATE BILL 225
8	8	K3 5lr0377
9	9	(PRE–FILED) CF HB 102
10	10	By: Chair, Finance Committee (By Request – Departmental – Labor)
11	11	Requested: October 12, 2024
12	12	Introduced and read first time: January 8, 2025
13	13	Assigned to: Finance
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Family and Medical Leave Insurance Program – Application Year and 2
20	20	Participation of Self–Employed Individuals 3
21	21
22	22	FOR the purpose of requiring the Maryland Department of Labor to adopt regulations 4
23	23	establishing an optional self–employed enrollment program governing the 5
24	24	participation of self–employed individuals in the Family and Medical Leave 6
25	25	Insurance Program; repealing certain requirements related to the payment of 7
26	26	contributions to the Program by participating self–employed individuals; excluding 8
27	27	participating self–employed individuals from certain provisions of law governing the 9
28	28	payment of benefits under the Program; altering the definition of “application year” 10
29	29	for purposes of the Program; and generally relating to the Family and Medical Leave 11
30	30	Insurance Program. 12
31	31
32	32	BY repealing and reenacting, without amendments, 13
33	33	Article – Labor and Employment 14
34	34	Section 8.3–101(a), (d), and (e) and 8.3–703(b)(3) 15
35	35	Annotated Code of Maryland 16
36	36	(2016 Replacement Volume and 2024 Supplement) 17
37	37
38	38	BY repealing and reenacting, with amendments, 18
39	39	Article – Labor and Employment 19
40	40	Section 8.3–101(b), 8.3–201, 8.3–601, and 8.3–703(a) and (b)(1) and (2) 20
41	41	Annotated Code of Maryland 21
42	42	(2016 Replacement Volume and 2024 Supplement) 22
43	43
44	44	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
45	45	That the Laws of Maryland read as follows: 24
46	46
47	47	Article – Labor and Employment 25
48	48	2 SENATE BILL 225
49	49
50	50
51	51	8.3–101. 1
52	52
53	53	(a) In this title the following words have the meanings indicated. 2
54	54
55	55	(b) “Application year” means the 12–month period beginning on the Sunday of 3
56	56	the calendar week [for which benefits are approved] IN WHICH LEAVE UNDER TH IS TITLE 4
57	57	BEGINS. 5
58	58
59	59	(d) “Covered employee” means an employee who has worked at least 680 hours 6
60	60	performing services under employment located in the State over the four most recently 7
61	61	completed calendar quarters for which quarterly reports have been required immediately 8
62	62	preceding the date on which leave is to begin. 9
63	63
64	64	(e) “Covered individual” means a covered employee or a self–employed individual 10
65	65	who elects to participate in the Program under § 8.3–201 of this title. 11
66	66
67	67	8.3–201. 12
68	68
69	69	(a) In this section, “self–employed individual” includes an individual [that] WHO: 13
70	70
71	71	(1) is the sole owner of a sole proprietorship, limited liability company, C 14
72	72	corporation, or S corporation; and 15
73	73
74	74	(2) is the only individual employed by the sole proprietorship, limited 16
75	75	liability company, C corporation, or S corporation. 17
76	76
77	77	(b) [(1)] A self–employed individual who is a resident of the State may elect to 18
78	78	participate in the Program [by filing a written notice of election with the Secretary] in 19
79	79	accordance with regulations adopted by the Secretary UNDER SUBSECTION (C) OF THIS 20
80	80	SECTION. 21
81	81
82	82	[(2) An election made under paragraph (1) of this subsection becomes 22
83	83	effective on the date the written notice is filed. 23
84	84
85	85	(c) (1) If a self–employed individual elects to participate in the Program 24
86	86	under subsection (b) of this section, the individual shall participate for an initial period 25
87	87	of not less than 3 years. 26
88	88
89	89	(2) Once the initial participation period expires, the self–employed 27
90	90	individual may renew participation in the Program for a period of not less than 1 year. 28
91	91
92	92	(3) If the self–employed individual does not wish to renew participation in 29
93	93	the Program under paragraph (2) of this subsection, within 30 days before the participation 30
94	94	period expires, the self–employed individual shall notify the Secretary in writing of the 31
95	95	self–employed individual’s withdrawal from the Program. 32
96	96	SENATE BILL 225 3
97	97
98	98
99	99	(d) During the period a self–employed individual participates in the Program, the 1
100	100	self–employed individual shall pay the contribution required under § 8.3–601 of this title.] 2
101	101
102	102	(C) ON OR BEFORE JULY 1, 2027, THE SECRETARY SHALL ADOPT 3
103	103	REGULATIONS THAT ESTABLISH AN OPTIONA L SELF–EMPLOYED ENROLLMENT 4
104	104	PROGRAM AND INCLUDE: 5
105	105
106	106	(1) CONTRIBUTION AMOUNTS ; 6
107	107
108	108	(2) BENEFIT AMOUNTS ; AND 7
109	109
110	110	(3) ENROLLMENT PROCEDURES . 8
111	111
112	112	8.3–601. 9
113	113
114	114	(a) (1) (I) Beginning July 1, 2025, each employee of an employer[,] AND 10
115	115	each employer with 15 or more employees [, and each self–employed individual 11
116	116	participating in the Program] shall contribute to the Fund. 12
117	117
118	118	[(2)] (II) The total rate of contribution established under this section FOR 13
119	119	EMPLOYEES AND EMPLOY ERS DESCRIBED IN SUBPARAGRAPH (I) OF THIS 14
120	120	PARAGRAPH : 15
121	121
122	122	[(i)] 1. may not exceed 1.2% of an employee’s wages; and 16
123	123
124	124	[(ii)] 2. shall be applied to all wages up to and including the Social 17
125	125	Security wage base. 18
126	126
127	127	(2) EACH SELF–EMPLOYED INDIVIDUAL PARTICIPATING IN THE 19
128	128	PROGRAM SHALL CONTRIBU TE TO THE FUND IN ACCORDANCE WI TH REGULATIONS 20
129	129	ADOPTED UNDER § 8.3–201(C) OF THIS TITLE. 21
130	130
131	131	(b) (1) Subject to subsection [(a)(2)] (A)(1)(II) of this section, on or before 22
132	132	February 1, 2025, the Secretary shall set the total rate of contribution based on available 23
133	133	cost analyses of the Program. 24
134	134
135	135	(2) The rate set under paragraph (1) of this subsection shall be in effect for 25
136	136	the period from July 1, 2025, to June 30, 2026, both inclusive. 26
137	137
138	138	(c) (1) On or before November 15 each year, beginning in 2026, the Secretary 27
139	139	shall conduct a cost analysis of the Program that is focused on the cost of maintaining 28
140	140	solvency and paying benefits to covered individuals that will be used to determine the 29
141	141	appropriate total rate of contribution to the Fund. 30
142	142
143	143	(2) On or before November 15 each year, the Secretary shall report the 31 4 SENATE BILL 225
144	144
145	145
146	146	results of the cost analysis to the Senate Finance Committee, the House Economic Matters 1
147	147	Committee, and the Joint Committee on Administrative, Executive, and Legislative Review 2
148	148	in accordance with § 2–1257 of the State Government Article. 3
149	149
150	150	(d) (1) Subject to paragraph (2) of this subsection and subsection [(a)(2)] 4
151	151	(A)(1)(II) of this section, on or before February 1 each year, beginning in 2026, the 5
152	152	Secretary shall set the total rate of contribution that will be in effect for the 12–month 6
153	153	period beginning on the immediately following July 1. 7
154	154
155	155	(2) The rate set under paragraph (1) of this subsection shall be based on 8
156	156	the cost analysis required under subsection (c) of this section. 9
157	157
158	158	(e) (1) (i) Except as otherwise provided in this section, each employer of 15 10
159	159	or more employees shall contribute an amount equal to 50% of the total rate of contribution 11
160	160	for each employee. 12
161	161
162	162	(ii) Except as otherwise provided in this section, each employee of an 13
163	163	employer shall contribute an amount equal to 50% of the total rate of contribution. 14
164	164
165	165	(2) (i) Except as provided in subparagraph (ii) of this paragraph, the 15
166	166	employer of the employee shall deduct the employee’s required contribution from the wages 16
167	167	of the employee. 17
168	168
169	169	(ii) 1. An employer may elect to pay all or a portion of the 18
170	170	required employee contributions in whole or in part. 19
171	171
172	172	2. If the employer of an employee elects to pay a portion of 20
173	173	the employee’s required contribution, the employer: 21
174	174
175	175	A. may deduct an amount that is less than 50% of the rate of 22
176	176	contribution required from the wages of the employee; and 23
177	177
178	178	B. shall notify employees of the rate of contribution set for 24
179	179	employees under subsection (d)(1) of this section and the portion of that amount that the 25
180	180	employer is electing to pay. 26
181	181
182	182	[(f) Each self–employed individual participating in the Program shall: 27
183	183
184	184	(1) pay contributions during each year that the self–employed individual 28
185	185	participates in the Program; and 29
186	186
187	187	(2) contribute an amount equal to the total rate of contribution set under 30
188	188	subsection (d) of this section.] 31
189	189
190	190	[(g)] (F) (1) The Maryland Department of Health shall reimburse each: 32
191	191	SENATE BILL 225 5
192	192
193	193
194	194	(i) community provider that is required to be licensed or certified 1
195	195	under Title 7 of the Health – General Article for 100% of the employer contribution required 2
196	196	under subsection (e) of this section for employees who manage or provide services under 3
197	197	Title 7 of the Health – General Article; 4
198	198
199	199	(ii) community provider that is required to be licensed or certified 5
200	200	under Title 7.5 of the Health – General Article for a percentage of the employer contribution 6
201	201	required under subsection (e) of this section for employees who manage or provide services 7
202	202	under Title 7.5 of the Health – General Article that is equal to the percentage of revenue 8
203	203	that is attributable to federal and State Medicaid funding and any other State funding 9
204	204	received by the community provider for the services during the period covered by the 10
205	205	reimbursement; or 11
206	206
207	207	(iii) provider, as defined in § 16–201.4 of the Health – General Article, 12
208	208	for a percentage of the employer contribution required under subsection (e) of this section 13
209	209	for employees who manage or provide services described in § 16–201.4(a) of the Health – 14
210	210	General Article that is equal to the percentage of revenue attributable to federal and State 15
211	211	Medicaid funding and any other State funding received by the provider for the services 16
212	212	during the period covered by the reimbursement. 17
213	213
214	214	(2) The Maryland Department of Health shall make the reimbursements 18
215	215	required under paragraph (1) of this subsection at least quarterly. 19
216	216
217	217	(3) To receive reimbursement under paragraph (1) of this subsection, a 20
218	218	provider shall provide to the Maryland Department of Health any information necessary to 21
219	219	carry out this subsection in the form and manner required by the Maryland Department of 22
220	220	Health. 23
221	221
222	222	8.3–703. 24
223	223
224	224	(a) For the purposes of this section: 25
225	225
226	226	(1) the covered [individual’s] EMPLOYEE’S average weekly wage shall be 26
227	227	calculated as the total wages received by the covered [individual] EMPLOYEE in the 27
228	228	highest of the previous four completed calendar quarters for which quarterly reports have 28
229	229	been required, divided by 13; and 29
230	230
231	231	(2) the State average weekly wage shall be the wage calculated under § 30
232	232	9–603 of this article. 31
233	233
234	234	(b) (1) Subject to paragraphs (2) and (3) of this subsection, the weekly benefit 32
235	235	amount payable to a covered [individual] EMPLOYEE under this title shall be: 33
236	236
237	237	(i) if the covered [individual’s] EMPLOYEE’S average weekly wage 34
238	238	is 65% or less of the State average weekly wage, 90% of the covered [individual’s] 35
239	239	EMPLOYEE’S average weekly wage; or 36 6 SENATE BILL 225
240	240
241	241
242	242
243	243	(ii) if the covered [individual’s] EMPLOYEE’S average weekly wage 1
244	244	is greater than 65% of the State average weekly wage, the sum of: 2
245	245
246	246	1. 90% of the covered [individual’s] EMPLOYEE’S average 3
247	247	weekly wage up to 65% of the State average weekly wage; and 4
248	248
249	249	2. 50% of the covered [individual’s] EMPLOYEE’S average 5
250	250	weekly wage that is greater than 65% of the State average weekly wage. 6
251	251
252	252	(2) The benefit paid under this title and any additional paid leave cannot 7
253	253	total more than 100% of the covered [individual’s] EMPLOYEE’S average weekly wage. 8
254	254
255	255	(3) The weekly benefit amount payable under paragraph (1) of this 9
256	256	subsection: 10
257	257
258	258	(i) shall be at least $50; and 11
259	259
260	260	(ii) may not exceed: 12
261	261
262	262	1. for the 6–month period beginning July 1, 2026, $1,000; and 13
263	263
264	264	2. for the 12–month period beginning January 1, 2027, and 14
265	265	each subsequent 12–month period, the amount determined and announced by the Secretary 15
266	266	under paragraph (4) of this subsection. 16
267	267
268	268	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 17
269	269	1, 2025. 18