(a) Except as provided in subsection (b) of this section, employment is not covered employment if performed:
(1) in a facility that:
(i) carries out a program of rehabilitation for individuals whose earning capacity is impaired by age, physical or mental disability, or injury; or
(ii) provides compensated work for individuals who, because of their physical or mental disability, cannot be employed readily in the competitive labor market; and
(2) by an individual who receives that rehabilitation or compensated work.
(b) Employment is covered employment if performed by a blind or other severely handicapped employee of Blind Industries and Services of Maryland.