PARRIS N. GLENDENING, Governor                             Ch. 628

(I) HAS BEEN DIRECTLY ENGAGED IN ANY ASPECT OF
CONSTRUCTION IN A STATE OTHER THAN MARYLAND PRIOR TO BECOMING A
MARYLAND EMPLOYER; AND

(II) HAS BEEN AN EMPLOYER ENGAGED IN ANY ASPECT OF
CONSTRUCTION IN MARYLAND FOR LESS THAN 3 COMPLETE CALENDAR YEARS.

(b) [The contribution rate for a new employer shall be the average of the rates
for employers in the State in the same employing units industry category for the previous
calendar year but may not be less than the higher of:] (1) THE CONTRIBUTION RATE
ASSIGNED TO FOREIGN CONSTRUCTION CONTRACTORS SHALL BE THE MAXIMUM
EARNED RATE PLUS ANY BASIC RATE ADJUSTMENT APPLICABLE FOR ANY
CALENDAR YEAR IN WHICH THE CONTRACTOR EMPLOYS AT LEAST 1 EMPLOYEE IN
MARYLAND.

(2) THE CONTRIBUTION RATE FOR A NEW EMPLOYER OTHER THAN A
FOREIGN CONSTRUCTION CONTRACTOR SHALL BE THE AVERAGE OF THE RATES
FOR ALL NEW EMPLOYERS FOR THE PREVIOUS 5 CALENDAR YEARS BUT MAY NOT
BE THE HIGHER OF:

[(1)](I) 1%; or

[(2)] (II) the current contribution rate under § 8-611 of this subtitle that
applies to an employing unit with a benefit ratio of .0000.

8-610.

(b) (1) Except as provided in [§ 8-609(c)] § 8-600(B) of this subtitle for foreign
contractors, an employing unit that transfers an operation from another state to this State
qualifies for an earned rate of contribution effective on the transfer if:

(i) for at least each of the 3 calendar years immediately preceding the
transfer, the employing unit had the experience with benefit charges and payrolls in the
other state that subsection (a)(2) requires an employing unit to have in this State; and

(ii) the employing unit submits to the Secretary an application that
includes the information that is needed to determine the benefit ratio of the employing
unit as if the benefit charges and payrolls in the other state had been paid in this State.

(2) The Secretary shall determine the accuracy of the information in the
application.

(B) A NEW EMPLOYER SHALL PAY CONTRIBUTIONS AT A RATE THAT DOES
NOT EXCEED 2.3% OF THE TAXABLE WAGE BASE, AND THAT IS THE HIGHEST OF:

(1) 1% OF THE TAXABLE WAGE BASE;

(2) THE 5-YEAR BENEFIT COST RATE OF THE STATE AS COMPUTED
UNDER SUBSECTION (C) OF THIS SECTION; OR

(3) THE CONTRIBUTION RATE UNDER § 8-611 OF THIS SUBTITLE THAT
APPLIES TO AN EMPLOYING UNIT WITH A BENEFIT RATIO OF 0.000.

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