EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb0145*
HOUSE BILL 145
P2 (2lr0652)
ENROLLED BILL
— Economic Matters/Finance —
Introduced by Delegate Crosby Delegates Crosby, Brooks, Charkoudian, Fennell,
Harrison, Jackson, Rogers, Turner, and Valderrama
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Govern or, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
State Finance and Procurement – Prevailing Wage – Stop Work Orders 2
FOR the purpose of authorizing the Commissioner of Labor and Industry to issue a stop 3
work order for each work site where the Commissioner has made an initial 4
determination that a contractor or subcontractor may have violated the prevailing 5
wage requirements; requiring the Commissioner to follow certain procedures under 6
certain circumstances; authorizing a prime contractor to terminate the contract of a 7
subcontractor without incurring certain liability if the subcontractor has a stop work 8
order issued against them; authorizing the Commissioner to assess a penalty against 9
a contractor or subcontractor for each day the contractor or subcontractor violates 10
the stop work order; requiring the Commissioner to release a stop work order on a 11
showing that the contractor or subcontractor is properly paying the required 12
prevailing wage to employees and has paid all associated penalties; authorizing an 13
appeal from the issuance of a stop work order; authorizing the Commissioner to 14 2 HOUSE BILL 145
impose a civil fine for each day an employer or employer’s agent knowingly fails to 1
comply with an investigation; granting the Maryland State Board of Contract 2
Appeals jurisdiction to hear a certain appeal; and generally relating to stop work 3
orders for the enforcement of prevailing wage laws. 4
BY repealing and reenacting, with amendments, 5
Article – State Finance and Procurement 6
Section 15–211, 17–201(b), and 17–221 Section 17–221 7
Annotated Code of Maryland 8
(2021 Replacement Volume) 9
BY repealing and reenacting, without amendments, 10
Article – State Finance and Procurement 11
Section 17–201(a), (b), (c), (f), (g), and (h) 12
Annotated Code of Maryland 13
(2021 Replacement Volume) 14
BY adding to 15
Article – State Finance and Procurement 16
Section 17–201(b) 17
Annotated Code of Maryland 18
(2021 Replacement Volume) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – State Finance and Procurement 22
15–211. 23
(a) The Appeals Board shall have jurisdiction to hear and decide all appeals 24
arising from the final action of a unit: 25
(1) on a protest relating to the formation of a procurement contract, 26
including a violation of § 13–212.1 of this article; or 27
(2) except for a contract claim relating to a lease of real property, on a 28
contract claim by a contractor or a unit concerning: 29
(i) breach; 30
(ii) performance; 31
(iii) modification; or 32
(iv) termination. 33
HOUSE BILL 145 3
(b) THE APPEALS BOARD SHALL HAVE JURI SDICTION TO HEAR AND DECIDE 1
AN APPEAL ARISING FR OM A DECISION OF THE COMMISSIONER OF LABOR AND 2
INDUSTRY TO ISSUE A S TOP WORK ORDER IN AC CORDANCE WITH § 17–221 OF THIS 3
ARTICLE. 4
(C) A decision of the Appeals Board is final, subject to any judicial review. 5
17–201. 6
(a) In this subtitle, unless the context indicates otherwise, the following words 7
have the meanings indicated. 8
(B) “APPEALS BOARD” MEANS THE MARYLAND STATE BOARD OF 9
CONTRACT APPEALS. 10
[(b)] (B–1) “Apprentice” means an individual who: 11
(1) is at least 16 years old; 12
(2) has signed with an employer or employer’s agent, an association of 13
employers, an organization of employees, or a joint committee from both, an agreement 14
including a statement of: 15
(i) the trade, craft, or occupation that the individual is learning; and 16
(ii) the beginning and ending dates of the apprenticeship; and 17
(3) is registered in a program of the Council or the Office of Apprenticeship 18
of the United States Department of Labor. 19
(c) “Commissioner” means: 20
(1) the Commissioner of Labor and Industry; 21
(2) the Deputy Commissioner of Labor and Industry; or 22
(3) an authorized representative of the Commissioner. 23
(f) (1) “Employee” means an apprentice or worker employed by a contractor or 24
subcontractor under a public work contract. 25
(2) “Employee” does not include an individual employed by a public body. 26
(g) (1) “Locality” means the county in which the work is to be performed. 27
4 HOUSE BILL 145
(2) If the public work is located within 2 or more counties, the locality 1
includes all counties in which the public work is located. 2
(h) “Prevailing wage rate” means the hourly rate of wages paid in the locality as 3
determined by the Commissioner under § 17–208 of this subtitle. 4
17–221. 5
(a) Each public body that awards a public work contract shall: 6
(1) take cognizance of a complaint of a violation of this subtitle committed 7
in the course of performance of the public work contract; and 8
(2) when making payments to the contractor, withhold any amount that 9
the contractor owes to its employees or the public body as a result of the violation. 10
(b) (1) The Commissioner shall PROMPTLY institute an investigation as 11
necessary to determine compliance with this subtitle and regulations adopted under this 12
subtitle WHEN THE COMMISSIONER : 13
(I) RECEIVES A COMPLAINT OF A VIOLATION OF TH IS 14
SUBTITLE; AND 15
(II) IS OTHERWISE MADE AW ARE OF A POSSIBLE VI OLATION OF 16
THIS SUBTITLE. 17
(2) [The Commissioner promptly shall investigate a complaint of a 18
violation of this subtitle. 19
(3)] Any written or oral complaint or statement made by an employee is 20
confidential and may not be disclosed to the employer without the consent of the employee. 21
(c) A contractor or subcontractor subject to an investigation under this section 22
shall allow the Commissioner, DURING NORMAL WORKIN G HOURS, to observe work being 23
performed at the site of a public work project, to interview employees, and to review books 24
and records, to determine: 25
(1) the correctness of each classification; 26
(2) the ratio of apprentices to mechanics; and 27
(3) payment of straight and overtime prevailing wage rates as required 28
under the public work contract. 29
HOUSE BILL 145 5
(d) (1) If, after investigation, the Commissioner determines that a provision of 1
this subtitle may have been violated, the Commissioner immediately shall notify the public 2
body. 3
[(e) (1)] (2) On notification, the public body shall withhold from payment due 4
the contractor or subcontractor an amount sufficient to: 5
(i) pay each employee of the contractor or subcontractor the full 6
amount of wages due under this subtitle; and 7
(ii) satisfy a liability of a contractor for liquidated damages as 8
provided in § 17–222(a) of this subtitle, pending a final determination. 9
[(2)] (3) If a subcontractor is responsible for a violation of this subtitle, 10
the contractor: 11
(i) may withhold from payment to the subcontractor an amount 12
equal to the amount withheld from the contractor under paragraph [(1)] (2) of this 13
subsection; or 14
(ii) if payment has been made to the subcontractor, may sue to 15
recover that amount. 16
(E) (1) (I) IF, AFTER INVESTIGATION , THE COMMISSIONER MAKES AN 17
INITIAL DETERMINATIO N THAT A CONTRACTOR OR SUBCONTRACTOR MAY HAVE 18
VIOLATED THE REQUIREMENT TO PAY T HE PREVAILING WAGE R ATE UNDER THIS 19
SUBTITLE, THE COMMISSIONER IMMEDIAT ELY MAY ISSUE A STOP WORK ORDER TO 20
CEASE ALL BUSINESS O PERATIONS AT EVERY S ITE WHERE A VIOLATIO N OCCURRED 21
AND SHALL: 22
1. NOTIFY THE CONTRACTO R OR SUBCONTRACTOR O F 23
THE VIOLATION , TO INCLUDE A STATEME NT OF FACTS DISCLOSE D IN THE 24
INVESTIGATION ; 25
2. MEET WITH THE CONTRA CTOR OR SUBCONTRACTO R 26
WITHIN 48 HOURS OF ISSUING THE STOP WORK ORDER ; AND 27
3. PROVIDE THE CONTRACT OR OR SUBCONTRACTOR A 28
REASONABLE TIMEFRAME , AS DETERMINED BY THE COMMISSIONER , TO RESOLVE 29
THE VIOLATION. 30
(II) THE COMMISSIONER MAY ISSU E THE STOP WORK ORDE R 31
EVEN IF THE COMMISSIONER HAS REFE RRED THE MATTER TO T HE ATTORNEY 32
GENERAL OR ANOTHER AP PROPRIATE AUTHORITY FOR INVESTIGATION OR 33
PROSECUTION . 34 6 HOUSE BILL 145
(2) IF A STOP WORK ORDER IS ISSUED AGAINST A SUBCONTRACTOR ,: 1
THE PRIME CONTRACTOR ON THE CONTRACT MAY TERMINATE THE CONTRA CT WITH 2
THE SUBCONTRACTOR WI THOUT INCURRING LIAB ILITY FOR DAMAGES RE SULTING 3
FROM THE TERMINATION . 4
(I) THE PRIME CONTRACTOR ON THE CONTRACT MAY NOT 5
TERMINATE THE CONTRA CT WITH THE SUBCONTR ACTOR UNTIL 48 HOURS AFTER 6
THE MEETING BETWEEN THE COMMISSIONER AND THE SUBCONTRACTOR ; 7
(II) THE PRIME CONTRACTOR MAY NOT TERMINATE TH E 8
CONTRACT WITH THE SU BCONTRACTOR IF THE V IOLATION HAS BEEN RESOLVED; 9
AND 10
(III) THE PRIME CONTRACTOR MAY NOT INCUR ANY CI VIL 11
LIABILITY FOR DAMAGE S TO THE SUBCONTRACT OR WHOSE CONTRACT WA S 12
TERMINATED , OTHER SUBCONTRACTORS AFFECTED BY THE TERM INATION, OR ANY 13
PUBLIC BODY RESULTIN G FROM THE TERMINATI ON. 14
(3) THE COMMISSIONER MAY IMPO SE A PENALTY OF UP T O $5,000 15
PER DAY AGAINST A CO NTRACTOR OR SUBCONTR ACTOR FOR EACH DAY T HE 16
CONTRACTOR OR SUBCON TRACTOR VIOLATES A S TOP WORK ORDER . 17
(4) A STOP WORK ORDER ISSU ED UNDER THIS SUBSEC TION SHALL: 18
(I) TAKE EFFECT WHEN SERVED ON THE CONTRA CTOR OR 19
SUBCONTRACTOR ; AND 20
(II) REMAIN IN EFFECT UNT IL THE COMMISSIONER ISSUES A N 21
ORDER RELEASING THE STOP WORK ORDER . 22
(5) THE COMMISSIONER SHALL IS SUE AN ORDER RELEASI NG A STOP 23
WORK ORDER ISSUED UN DER THIS SUBSECTION ON A SHOWI NG BY THE 24
CONTRACTOR OR SUBCON TRACTOR THAT THE CON TRACTOR OR SUBCONTRA CTOR: 25
(I) IS PROPERLY PAYING E MPLOYEES THE APPROPR IATE 26
PREVAILING WAGE RATE SET IN ACCORDANCE WI TH THIS SUBTITLE ; AND 27
(II) HAS PAID ALL PENALTI ES ASSESSED AGAINST THE 28
CONTRACTOR OR SUBCONTRACTOR UND ER THIS SUBTITLE . 29
(6) THE COMMISSIONER MAY INCL UDE IN THE ORDER REL EASING A 30
STOP WORK ORDER A RE QUIREMENT THAT THE C ONTRACTOR OR SUBCONT RACTOR 31 HOUSE BILL 145 7
SUBMIT PERIODIC REPO RTS TO THE COMMISSIONER DEMONSTR ATING 1
COMPLIANCE WITH THE REQUIREMENTS OF THIS SUBTITLE. 2
(F) (1) (I) WITHIN 72 HOURS AFTER A CONTRA CTOR OR 3
SUBCONTRACTOR RECEIV ES A STOP WORK ORDER UNDER SUBSECTION (E) OF THIS 4
SECTION, THE CONTRACTOR OR SU BCONTRACTOR MAY SUBM IT A WRITTEN APPEAL 5
TO THE APPEALS BOARD COMMISSIONER ON THE STOP WORK ORDER . 6
(II) IF AN APPEAL IS NOT R EQUESTED WITHIN 72 HOURS, THE 7
STOP WORK ORDER SHAL L BECOME A FINAL ORD ER OF THE COMMISSIONER . 8
(2) THE APPEALS BOARD COMMISSIONER SHALL HOLD A HEARING 9
WITHIN 7 DAYS AFTER RECEIVING THE WRITTEN APPEAL . 10
(3) IF THE APPEALS BOARD COMMISSIONER DOES NOT HOLD A 11
HEARING WITHIN 7 DAYS AFTER RECEIVING THE WRITTEN APPEAL , THE 12
CONTRACTOR OR SUBCON TRACTOR MAY REQUEST AN ADMINISTRATIVE LA W JUDGE 13
TO RELEASE THE ORDER . 14
(4) (I) WITHIN 5 DAYS AFTER HOLDING A HEARING ON A STOP 15
WORK ORDER UNDER THI S SUBSECTION , THE APPEALS BOARD COMMISSIONER 16
SHALL ISSUE A WRITTE N DECISION ON THE AP PEAL. 17
(II) THE DECISION SHALL IN CLUDE: 18
1. AN EXPLANATION OF WH Y THE ORDER WAS UPHE LD 19
OR RELEASED ; AND 20
2. THE GROUNDS ON WHICH THE RESULT WAS 21
DETERMINED . 22
[(f)] (G) The IF AFTER INVESTIGATIO N, THE COMMISSIONER DETERMIN ES 23
THAT A PROVISION OF THIS SUBTITLE MAY HA VE BEEN VIOLATED AND HAS NOT 24
ISSUED A STOP WORK O RDER IN ACCORDANCE W ITH SUBSECTION (E) OF THIS 25
SECTION, THE Commissioner shall: 26
(1) issue an order for a hearing within 30 days after completing an 27
investigation; and 28
(2) expeditiously conduct the hearing. 29
[(g)] (H) (1) At least 10 days before the hearing, the Commissioner shall 30
serve, personally or by mail, written notice of the hearing on all interested persons, 31
including the public body. 32 8 HOUSE BILL 145
(2) The notice shall include: 1
(i) a statement of the facts disclosed in the investigation; and 2
(ii) the time and place of the hearing. 3
[(h)] (I) (1) In conducting an investigation or hearing under this section, the 4
Commissioner is deemed to be acting in a quasi–judicial capacity and may: 5
(i) issue subpoenas; 6
(ii) administer oaths; or 7
(iii) examine witnesses. 8
(2) The Commissioner shall grant each interested person an opportunity to 9
speak at the hearing on matters relevant to the complaint. 10
[(i)] (J) (1) After the conclusion of the hearing, the Commissioner shall: 11
(i) file in the Commissioner’s office an order that states the 12
Commissioner’s determination; and 13
(ii) serve, personally or by mail, the public body and parties to the 14
hearing with a copy of the order and notice of its filing. 15
(2) If the Commissioner finds a violation, the Commissioner shall 16
determine the amount of liquidated damages and restitution to be assessed for the 17
violation. 18
(3) On the entry and service of a Commissioner’s order, the public body, 19
from the money due the contractor or subcontractor, shall: 20
(i) pay the affected employees the full amount of wages due them; 21
and 22
(ii) satisfy the obligation of the contractor or subcontractor to pay 23
liquidated damages as required under § 17–222 of this subtitle. 24
(K) (1) IN ADDITION TO ANY OT HER PENALTY , THE COMMISSIONER MAY 25
IMPOSE A CIVIL FINE OF NOT LESS MORE THAN $1,000 AGAINST A CONTRACTOR OR 26
SUBCONTRACTOR THAT K NOWINGLY FAILS TO PR ODUCE RECORDS OR ATT END A 27
HEARING OR DEPOSITIO N AS REQUIRED BY AN INVESTIGATION INTO A POSSIBLE 28
PREVAILING WAGE VIOL ATION UNDER SUBSECTI ON (B) OF THIS SECTION. 29
HOUSE BILL 145 9
(2) EACH DAY THAT A VIOLATION UNDER PARAGRAPH (1) OF THIS 1
SUBSECTION CONTINUES IS A SEPARATE OFFENS E. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
October 1, 2022. 4
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.