# State Personnel and Pensions (GSP)

## Title 2. State Employment Generally

### Subtitle 5. Health and Welfare Benefits Program

#### Section 2-512

(a) In this section, "qualifying nonprofit organization" means an organization that:

  (1)

    (i) receives State funds from the Maryland Department of Health that cover more than one-third of the organization's operating expenses; and

    (ii) is:

      (1) described in Sec. 501(c)(3) of the Internal Revenue Code; and

      (2) exempt from income tax under Sec. 501(a) of the Internal Revenue Code;

  (2) is the Legal Aid Bureau, Inc.;

  (3) is a corporation, a limited liability company, or any other entity that is wholly owned by the Legal Aid Bureau, Inc.; or

  (4) is the Maryland Crime Victims' Resource Center.

(b) The Secretary shall adopt regulations for the enrollment and participation of employees of a qualifying nonprofit organization to participate in the Program as a satellite organization.

(c) A qualifying nonprofit organization that participates in the Program as a satellite organization shall:

  (1) pay to the State:

    (i) a premium in the amount determined by the Secretary; and

    (ii) any costs, as determined by the Secretary, for the administration of this Program; and

  (2) determine the extent to which the organization will subsidize participation by its employees in the Program.

(d) The participation of a satellite organization in the Program may not impede, undermine, or conflict with the Program's federal compliance obligations or governmental and cafeteria plan status, as defined in 26 U.S.C. Sec. 125.

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Md. Code Ann., State Pers. & Pens. (as displayed at mgaleg.maryland.gov, October 16, 2026)