EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0225*
SENATE BILL 225
K3 5lr0377
(PRE–FILED) CF HB 102
By: Chair, Finance Committee (By Request – Departmental – Labor)
Requested: October 12, 2024
Introduced and read first time: January 8, 2025
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Family and Medical Leave Insurance Program – Application Year and 2
Participation of Self–Employed Individuals 3
FOR the purpose of requiring the Maryland Department of Labor to adopt regulations 4
establishing an optional self–employed enrollment program governing the 5
participation of self–employed individuals in the Family and Medical Leave 6
Insurance Program; repealing certain requirements related to the payment of 7
contributions to the Program by participating self–employed individuals; excluding 8
participating self–employed individuals from certain provisions of law governing the 9
payment of benefits under the Program; altering the definition of “application year” 10
for purposes of the Program; and generally relating to the Family and Medical Leave 11
Insurance Program. 12
BY repealing and reenacting, without amendments, 13
Article – Labor and Employment 14
Section 8.3–101(a), (d), and (e) and 8.3–703(b)(3) 15
Annotated Code of Maryland 16
(2016 Replacement Volume and 2024 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Labor and Employment 19
Section 8.3–101(b), 8.3–201, 8.3–601, and 8.3–703(a) and (b)(1) and (2) 20
Annotated Code of Maryland 21
(2016 Replacement Volume and 2024 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Labor and Employment 25
2 SENATE BILL 225
8.3–101. 1
(a) In this title the following words have the meanings indicated. 2
(b) “Application year” means the 12–month period beginning on the Sunday of 3
the calendar week [for which benefits are approved] IN WHICH LEAVE UNDER TH IS TITLE 4
BEGINS. 5
(d) “Covered employee” means an employee who has worked at least 680 hours 6
performing services under employment located in the State over the four most recently 7
completed calendar quarters for which quarterly reports have been required immediately 8
preceding the date on which leave is to begin. 9
(e) “Covered individual” means a covered employee or a self–employed individual 10
who elects to participate in the Program under § 8.3–201 of this title. 11
8.3–201. 12
(a) In this section, “self–employed individual” includes an individual [that] WHO: 13
(1) is the sole owner of a sole proprietorship, limited liability company, C 14
corporation, or S corporation; and 15
(2) is the only individual employed by the sole proprietorship, limited 16
liability company, C corporation, or S corporation. 17
(b) [(1)] A self–employed individual who is a resident of the State may elect to 18
participate in the Program [by filing a written notice of election with the Secretary] in 19
accordance with regulations adopted by the Secretary UNDER SUBSECTION (C) OF THIS 20
SECTION. 21
[(2) An election made under paragraph (1) of this subsection becomes 22
effective on the date the written notice is filed. 23
(c) (1) If a self–employed individual elects to participate in the Program 24
under subsection (b) of this section, the individual shall participate for an initial period 25
of not less than 3 years. 26
(2) Once the initial participation period expires, the self–employed 27
individual may renew participation in the Program for a period of not less than 1 year. 28
(3) If the self–employed individual does not wish to renew participation in 29
the Program under paragraph (2) of this subsection, within 30 days before the participation 30
period expires, the self–employed individual shall notify the Secretary in writing of the 31
self–employed individual’s withdrawal from the Program. 32
SENATE BILL 225 3
(d) During the period a self–employed individual participates in the Program, the 1
self–employed individual shall pay the contribution required under § 8.3–601 of this title.] 2
(C) ON OR BEFORE JULY 1, 2027, THE SECRETARY SHALL ADOPT 3
REGULATIONS THAT ESTABLISH AN OPTIONA L SELF–EMPLOYED ENROLLMENT 4
PROGRAM AND INCLUDE: 5
(1) CONTRIBUTION AMOUNTS ; 6
(2) BENEFIT AMOUNTS ; AND 7
(3) ENROLLMENT PROCEDURES . 8
8.3–601. 9
(a) (1) (I) Beginning July 1, 2025, each employee of an employer[,] AND 10
each employer with 15 or more employees [, and each self–employed individual 11
participating in the Program] shall contribute to the Fund. 12
[(2)] (II) The total rate of contribution established under this section FOR 13
EMPLOYEES AND EMPLOY ERS DESCRIBED IN SUBPARAGRAPH (I) OF THIS 14
PARAGRAPH : 15
[(i)] 1. may not exceed 1.2% of an employee’s wages; and 16
[(ii)] 2. shall be applied to all wages up to and including the Social 17
Security wage base. 18
(2) EACH SELF–EMPLOYED INDIVIDUAL PARTICIPATING IN THE 19
PROGRAM SHALL CONTRIBU TE TO THE FUND IN ACCORDANCE WI TH REGULATIONS 20
ADOPTED UNDER § 8.3–201(C) OF THIS TITLE. 21
(b) (1) Subject to subsection [(a)(2)] (A)(1)(II) of this section, on or before 22
February 1, 2025, the Secretary shall set the total rate of contribution based on available 23
cost analyses of the Program. 24
(2) The rate set under paragraph (1) of this subsection shall be in effect for 25
the period from July 1, 2025, to June 30, 2026, both inclusive. 26
(c) (1) On or before November 15 each year, beginning in 2026, the Secretary 27
shall conduct a cost analysis of the Program that is focused on the cost of maintaining 28
solvency and paying benefits to covered individuals that will be used to determine the 29
appropriate total rate of contribution to the Fund. 30
(2) On or before November 15 each year, the Secretary shall report the 31 4 SENATE BILL 225
results of the cost analysis to the Senate Finance Committee, the House Economic Matters 1
Committee, and the Joint Committee on Administrative, Executive, and Legislative Review 2
in accordance with § 2–1257 of the State Government Article. 3
(d) (1) Subject to paragraph (2) of this subsection and subsection [(a)(2)] 4
(A)(1)(II) of this section, on or before February 1 each year, beginning in 2026, the 5
Secretary shall set the total rate of contribution that will be in effect for the 12–month 6
period beginning on the immediately following July 1. 7
(2) The rate set under paragraph (1) of this subsection shall be based on 8
the cost analysis required under subsection (c) of this section. 9
(e) (1) (i) Except as otherwise provided in this section, each employer of 15 10
or more employees shall contribute an amount equal to 50% of the total rate of contribution 11
for each employee. 12
(ii) Except as otherwise provided in this section, each employee of an 13
employer shall contribute an amount equal to 50% of the total rate of contribution. 14
(2) (i) Except as provided in subparagraph (ii) of this paragraph, the 15
employer of the employee shall deduct the employee’s required contribution from the wages 16
of the employee. 17
(ii) 1. An employer may elect to pay all or a portion of the 18
required employee contributions in whole or in part. 19
2. If the employer of an employee elects to pay a portion of 20
the employee’s required contribution, the employer: 21
A. may deduct an amount that is less than 50% of the rate of 22
contribution required from the wages of the employee; and 23
B. shall notify employees of the rate of contribution set for 24
employees under subsection (d)(1) of this section and the portion of that amount that the 25
employer is electing to pay. 26
[(f) Each self–employed individual participating in the Program shall: 27
(1) pay contributions during each year that the self–employed individual 28
participates in the Program; and 29
(2) contribute an amount equal to the total rate of contribution set under 30
subsection (d) of this section.] 31
[(g)] (F) (1) The Maryland Department of Health shall reimburse each: 32
SENATE BILL 225 5
(i) community provider that is required to be licensed or certified 1
under Title 7 of the Health – General Article for 100% of the employer contribution required 2
under subsection (e) of this section for employees who manage or provide services under 3
Title 7 of the Health – General Article; 4
(ii) community provider that is required to be licensed or certified 5
under Title 7.5 of the Health – General Article for a percentage of the employer contribution 6
required under subsection (e) of this section for employees who manage or provide services 7
under Title 7.5 of the Health – General Article that is equal to the percentage of revenue 8
that is attributable to federal and State Medicaid funding and any other State funding 9
received by the community provider for the services during the period covered by the 10
reimbursement; or 11
(iii) provider, as defined in § 16–201.4 of the Health – General Article, 12
for a percentage of the employer contribution required under subsection (e) of this section 13
for employees who manage or provide services described in § 16–201.4(a) of the Health – 14
General Article that is equal to the percentage of revenue attributable to federal and State 15
Medicaid funding and any other State funding received by the provider for the services 16
during the period covered by the reimbursement. 17
(2) The Maryland Department of Health shall make the reimbursements 18
required under paragraph (1) of this subsection at least quarterly. 19
(3) To receive reimbursement under paragraph (1) of this subsection, a 20
provider shall provide to the Maryland Department of Health any information necessary to 21
carry out this subsection in the form and manner required by the Maryland Department of 22
Health. 23
8.3–703. 24
(a) For the purposes of this section: 25
(1) the covered [individual’s] EMPLOYEE’S average weekly wage shall be 26
calculated as the total wages received by the covered [individual] EMPLOYEE in the 27
highest of the previous four completed calendar quarters for which quarterly reports have 28
been required, divided by 13; and 29
(2) the State average weekly wage shall be the wage calculated under § 30
9–603 of this article. 31
(b) (1) Subject to paragraphs (2) and (3) of this subsection, the weekly benefit 32
amount payable to a covered [individual] EMPLOYEE under this title shall be: 33
(i) if the covered [individual’s] EMPLOYEE’S average weekly wage 34
is 65% or less of the State average weekly wage, 90% of the covered [individual’s] 35
EMPLOYEE’S average weekly wage; or 36 6 SENATE BILL 225
(ii) if the covered [individual’s] EMPLOYEE’S average weekly wage 1
is greater than 65% of the State average weekly wage, the sum of: 2
1. 90% of the covered [individual’s] EMPLOYEE’S average 3
weekly wage up to 65% of the State average weekly wage; and 4
2. 50% of the covered [individual’s] EMPLOYEE’S average 5
weekly wage that is greater than 65% of the State average weekly wage. 6
(2) The benefit paid under this title and any additional paid leave cannot 7
total more than 100% of the covered [individual’s] EMPLOYEE’S average weekly wage. 8
(3) The weekly benefit amount payable under paragraph (1) of this 9
subsection: 10
(i) shall be at least $50; and 11
(ii) may not exceed: 12
1. for the 6–month period beginning July 1, 2026, $1,000; and 13
2. for the 12–month period beginning January 1, 2027, and 14
each subsequent 12–month period, the amount determined and announced by the Secretary 15
under paragraph (4) of this subsection. 16
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 17
1, 2025. 18