(Corrects previous story to show that Maryland House of Delegates hasn't voted on legislation yet.)

Jan. 12 (Bloomberg) -- The Maryland Senate today voted to override a veto of the so-called ``Wal-Mart bill,'' requiring companies with more than 10,000 employees in the state to pay a set amount of money for health-care benefits. The state's House of Delegates plans to cast its vote later in the day.

The Senate voted 30-17 in favor of undoing Governor Robert Ehrlich's May veto of the bill. An override requires a three- fifths vote from both chambers of the state legislature.

The legislation, formally called the Fair Share Health Care Fund Act, requires large companies to devote at least 8 percent of their payroll to healthcare and would become the first U.S. state law of its kind. Wal-Mart Stores Inc., the world's largest retailer, employs almost 17,000 people in Maryland and is the only company there known not to meet the bill's requirements.

More than 30 other states, including Michigan and Wisconsin, are considering similar measures.

``This is a great moment for working families of Maryland and for businesses that do the right thing,'' said Vincent DeMarco, head of the Maryland Citizens' Health Initiative, an advocacy group in Baltimore. ``After the House votes, this measure will sweep the country.''

Wal-Mart said the bill sets a dangerous precedent and could prompt the Bentonville, Arkansas-based retailer to rethink plans for a distribution center in Maryland that would create 800 jobs.

``It singles out one company at the interest of organized labor,'' spokesman Nate Hurst said. ``Businesses across the U.S. will think twice about expanding in a state like Maryland.''

Shares of Wal-Mart fell 83 cents to $45.74 as of 4:18 p.m. in New York Stock Exchange composite trading. The stock fell 11 percent last year amid slowing profit growth.

House Vote

Maryland's Democrat-led House will meet later today to take up the bill, which it passed 84-50 in March, one vote short of the 85 needed today to cancel out the Republican governor's veto.

House Majority Leader Kumar Barve said yesterday that he's confident there are enough votes to override Ehrlich.

The governor remains ``cautiously optimistic'' that the House will vote against overruling his veto, Ehrlich's spokesman Henry Fauell said.

``It's bad on so many levels. It's the first step toward government-run healthcare in Maryland and perhaps the nation,'' he said. ``And it sends a terrible message to large employers who want to relocate to Maryland.''

Targeting Wal-Mart

Barve said the bill doesn't target Wal-Mart. ``It just happens that right now Wal-Mart is the only company of that size in the state,'' he said.

``Rather than spend all their money lobbying this, Wal-Mart ought to buy insurance for their employees,'' Kumar said. ``The package they offer now requires so much of a contribution that most of their employees can't afford it.''

Wal-Mart says 1 million of its 1.3 million workers have health insurance of some type, though not necessarily through the company. Hurst said the company is still one of the few retailers to offer health insurance to part-time employees, he said.

Other States

The AFL-CIO, which represents 53 U.S. labor unions, says it's been urging other states to adopt health-care measures similar to Maryland's legislation.

Some state lawmakers, including Democratic Representative David McCluskey of Connecticut, see the legislation as a way to ease demand for Medicaid, the State Children's Health Insurance Program and other plans for previously uninsured residents.

In November, California voters overturned a 2003 law that would have required businesses to pay for their workers' health insurance, a victory for retailers and restaurateurs such as Wal- Mart and McDonald's Corp.

Had the law remained, California would have become the second state to make health insurance a requirement after Hawaii, which did so in 1974. Businesses were concerned that other states would follow California's lead.

To contact the reporter on this story: Kim Chipman in Washington at kchipman@bloomberg.net.

Last Updated: January 12, 2006 18:18 EST