The paid family and medical leave benefits offered to employees of the State pursuant to State Personnel and Pensions Article, §9–1001, et seq. Annotated Code of Maryland, are approved as an EPIP and no application by the State to the Division is required. To obtain approval of an EPIP, an employer shall first submit a completed EPIP application to the Division. The Division shall mandate the EPIP application form. An EPIP application may be submitted at any time. EPIP Application Review Process. The Division will review complete EPIP applications as they are received. Employers will be notified of deficiencies in EPIP applications. Deficiencies must be cured within 30 days of the date of the notification. If deficiencies are not cured within 30 days, the EPIP application may be denied. EPIP Application Fees. For a commercially insured EPIP the application fees shall be as follows: $100 for an employer with 1—14 employees performing qualified employment at the time the EPIP application is submitted. $250 for an employer with 15—49 employees performing qualified employment at the time the EPIP application is submitted. $500 for an employer with 50—199 employees performing qualified employment at the time the EPIP application is submitted. $600 for an employer with 200—499 employees performing qualified employment at the time the EPIP application is submitted. $750 for an employer with 500—999 employees performing qualified employment at the time the EPIP application is submitted. $1,000 for an employer with 1000 or more employees performing qualified employment at the time the EPIP application is submitted. For a self-insured EPIP the application fee is $1,000. An approved EPIP application becomes effective, and the employer is released from its contributions obligation on the first day of the calendar quarter following the date of approval by the Division of its EPIP application. An employer’s EPIP approval and release from contributions obligation expires 1 year after the effective date in §G of this regulation, and if a complete application has been timely filed and approval is pending after expiration, the Division may extend the previous approval. EPIPs shall make benefits available to all covered employees. An employer shall submit an EPIP application annually at least 90 days before the employer’s current EPIP approval expires. Special Requirements for a Self-Insured EPIP. Any employer with 50 or more employees may apply for a self-insured EPIP. Proof of Solvency. An employer desiring to establish a self-insured EPIP shall provide proof of assured funds as demonstrated by obtaining a surety bond issued by a surety company certified by the United States Treasury Department Bureau of the Fiscal Service and authorized to do business in the State. The surety bond shall be conditioned that the employer shall: Comply with all State laws and regulations governing the EPIP; and Fulfill all obligations to pay employee claims. A surety bond shall be issued in amount equal to 1 year of expected future benefits as determined by the product of the number of employees rounded up to the nearest 50 multiplied by 12 weeks multiplied by the utilization rate multiplied by the maximum weekly benefit amount. A surety bond shall be issued on a form prescribed by the Division. A surety bond shall include a statement that the bonding company shall give 90 days notice in writing of its intent to terminate coverage to both the principal and the Division, except that if the bonding company is terminating liability because it is issuing a replacement bond, it may do so without providing prior notice. If a replacement bond is issued, the surety company and the employer shall notify the Division no later than 14 days after its effective date. A surety bond shall continue for 3 years after the later of the date on which: The bond is canceled; or The EPIP is terminated. The liability of the surety: Shall be continuous; May not be aggregated or cumulative, whether the bond is renewed, continued, replaced, or modified; May not be determined by adding together the penal sum of the bond, or any part of the penal sum of the bond, in existence at any two or more points in time; Shall be considered to be one continuous obligation, regardless of increases or decreases in the penal sum of the bond; May not be affected by the insolvency or bankruptcy of the employer, any misrepresentation, breach of warranty, failure to pay a premium, any other act or omission of the employer, or the termination of the employer’s EPIP; and May not require an administrative enforcement action by the Division as a prerequisite to liability. The Division may review the bond annually to ensure that the amount corresponds with the benefit projections and the employer: Shall provide the Division with any documentation necessary to review the bond amount; Shall increase the bond amount if the Division determines an increase is necessary; and May decrease the bond amount if the Division determines that the bond amount exceeds the projected benefits. A claim against the bond may be filed with the surety by the Division: Under COMAR 09.42.03.03(T); To cover any outstanding contributions due to the Division; or For fees and penalties owed to the Division. Separate Account. If an employer who is approved to self-insure to provide FAMLI benefits withholds from employees, the employer shall establish and maintain a separate account: Into which all employee contributions are deposited and kept; and From which only benefits shall be paid. Funds collected from employee withholdings shall be: Held separately from all other employer funds; and Separately accounted for. Account records shall be made available for audits by the Division. The separate fund does not represent the extent of liability of the employer. Any employer may apply to the Division for a waiver of the surety bond requirement based on its capitalization and existing bondedness under Labor and Employment Article, §8.3-705(b)(2), Annotated Code of Maryland. An employer with fewer than 50 employees may apply for a self-insured EPIP only if it provides a benefits package: To all of the employer's covered employees; That meets or exceeds the rights, protections, and benefits provided to a covered employee under Labor and Employment Article, §§8.3-101, et seq., Annotated Code of Maryland; and That was in effect on or before July 31, 2026 and has remained continually in effect until the date of application.