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SB 225

Relating to: regulation of amusement rides located at campgrounds. (FE)

2025-2026 Regular Session Introduced by André Jacque

SB 225 creates an optional, regulatory-set self-employed pathway for Maryland's FAMLI, replacing statutory elections; rules due by 7/1/2027, affecting participation and benefits.

Presented to the Governor on 4-2-2026
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Bill Summary · SB 225

SB 225 — Family and Medical Leave Insurance Program

Subtitle: Application Year and Participation of Self‑Employed Individuals

Status: Introduced Jan 8, 2025; takes effect June 1, 2025. Hearing noted Jan 29.
Primary subject: Maryland Family and Medical Leave Insurance (FAMLI) Program

Main purpose / intent

SB 225 makes two principal changes to Maryland’s FAMLI law: (1) it changes how an “application year” is defined for benefit limits; and (2) it restructures how self‑employed individuals may participate in the program by directing the Maryland Department of Labor to adopt regulations creating an optional enrollment pathway for self‑employed people rather than relying on the current statutory election process.

Key provisions

  • Regulatory framework for self‑employed participation

    • Requires the Secretary of Labor to adopt regulations by July 1, 2027, establishing an optional self‑employed enrollment program that specifies:
    • contribution amounts for participating self‑employed individuals,
    • benefit amounts available to those participants, and
    • enrollment procedures and related rules.
    • Repeals existing statutory election mechanics for self‑employed participation and related statutory requirements; instead participation and contribution/benefit terms for self‑employed persons will be set by regulation.
    • While regulations are pending, self‑employed residents who might otherwise have elected into the program under prior law will not be treated as participating for purposes of the statutory benefit‑payment provisions (i.e., benefits and contributions for self‑employed persons are governed by the forthcoming regulations).

  • Application year definition

    • Alters “application year” to mean the 12‑month period beginning on the Sunday of the calendar week in which FAMLI leave begins (previously tied to the date benefits were approved). This affects how the 12‑week (or other) benefit maximums and year‑based limits are calculated.

  • Effective date

    • The bill takes effect June 1, 2025; regulatory deadline for Maryland Department of Labor is July 1, 2027.

Who would be affected

  • Self‑employed Maryland residents (sole proprietors, owners of single‑member entities, etc.): the route, timing, and cost of enrolling in and receiving FAMLI benefits would shift from a statutory election to a regulatory program; until MD Labor issues regulations, participation and benefit payment rules for self‑employed persons are effectively delayed.
  • Employers and employees: the change to the “application year” could affect timing and calculation of how many weeks of benefits an employee may receive in a given year.
  • Maryland Department of Labor / FAMLI Fund: tasked with writing and implementing regulations; minor fiscal and administrative impacts (see below).

Fiscal and operational impacts

  • MD Labor estimates: no state effect in FY2025. Potential minimal decreases in FAMLI special fund revenues in FY2026 and FY2027 (delaying contributions from any self‑employed participants until regulations become effective). Expenditures may minimally decline in FY2027 for the same reason. Beginning FY2028, net revenues/expenditures could increase or decrease depending on regulatory choices and actual participation rates.
  • Department can adopt required regulations within existing resources.
  • Evidence from other states suggests self‑employment take‑up rates are low (Center for American Progress estimate: under 2%), so overall fiscal effects are likely small.

Practical implications and timeline

  • Until MD Labor issues regulations (deadline July 1, 2027), self‑employed individuals do not participate under the old statutory election framework and are not eligible for benefits under the statutory scheme.
  • Employers/employees should note the redefined “application year” when planning leave and benefit claims.
  • The bill leaves substantive policy choices (contribution and benefit levels for self‑employed participants) to administrative rulemaking, creating flexibility but also regulatory uncertainty until rules are finalized.

Issues to watch

  • Content of the regulations: whether self‑employed participants will pay full, partial, or employee‑equivalent contribution rates; how benefits for them will be calculated; enrollment periods and any minimum commitment terms.
  • Administrative timing and outreach: awareness and enrollment among self‑employed residents may depend on MD Labor’s implementation and outreach once rules are issued.

Compiled from official sources — confirm details with the bill’s official record.

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