EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
[Brackets] indicate matter deleted from existing law.
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SENATE BILL 259
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By: Senators Feldman, Augustine, Beidle, Benson, Elfreth, Guzzone, Kelley,
Klausmeier, Kramer, McCray, and Smith
Introduced and read first time: January 14, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Procurement – Prevailing Wage – Applicability 2
FOR the purpose of applying the Prevailing Wage Law to a certain contract for the 3
construction of a public work under certain circumstances; and generally relating to 4
the applicability of the Prevailing Wage Law. 5
BY repealing and reenacting, with amendments, 6
Article – State Finance and Procurement 7
Section 17–201 and 17–202 8
Annotated Code of Maryland 9
(2021 Replacement Volume) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – State Finance and Procurement 13
17–201. 14
(a) In this subtitle, unless the context indicates otherwise, the following words 15
have the meanings indicated. 16
(b) “Apprentice” means an individual who: 17
(1) is at least 16 years old; 18
(2) has signed with an employer or employer’s agent, an association of 19
employers, an organization of employees, or a joint committee from both, an agreement 20
including a statement of: 21
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(i) the trade, craft, or occupation that the individual is learning; and 1
(ii) the beginning and ending dates of the apprenticeship; and 2
(3) is registered in a program of the Council or the Office of Apprenticeship 3
of the United States Department of Labor. 4
(c) “Commissioner” means: 5
(1) the Commissioner of Labor and Industry; 6
(2) the Deputy Commissioner of Labor and Industry; or 7
(3) an authorized representative of the Commissioner. 8
(d) “Construction” includes all: 9
(1) building; 10
(2) reconstructing; 11
(3) improving; 12
(4) enlarging; 13
(5) painting and decorating; 14
(6) altering; 15
(7) maintaining; [and] 16
(8) repairing; AND 17
(9) SERVICES PROVIDED UN DER A MECHANICAL SYSTEM S SERVICE 18
CONTRACT. 19
(e) “Council” means the Apprenticeship and Training Council. 20
(f) (1) “Employee” means an apprentice or worker employed by a contractor or 21
subcontractor under a public work contract. 22
(2) “Employee” does not include an individual employed by a public body. 23
(g) (1) “Locality” means the county in which the work is to be performed. 24
(2) If the public work is located within 2 or more counties, the locality 25
includes all counties in which the public work is located. 26 SENATE BILL 259 3
(H) “MECHANICAL SYSTEMS SE RVICE CONTRACT ” MEANS A CONTRACT FOR: 1
(1) HVAC SYSTEMS, INCLUDING HEATING , VENTILATION, 2
DUCTWORK , AND COOLING /AIR–CONDITIONING EQUIPME NT; 3
(2) REFRIGERATION SYSTEM S; 4
(3) PLUMBING SYSTEMS , INCLUDING PIPES , TANKS, FITTINGS, AND 5
OTHER ELEMENTS THAT CONTROL THE WATER AN D GAS SUPPLY , HEATING, AND 6
SANITATION OF A BUIL DING; 7
(4) ELECTRICAL SYSTEMS , INCLUDING ELECTRICAL COMPONENTS 8
THAT SUPPLY, DISTRIBUTE, GENERATE, AND USE ELECTRICAL P OWER, OVERHEAD 9
AND UNDERGROUND LINE S, POLES, TRANSFORMERS , AND OTHER RELATED 10
EQUIPMENT; AND 11
(5) ELEVATOR SYSTEMS , INCLUDING ESCALATORS , MOVING 12
WALKWAY S, AND OTHER CONVEYANCE S. 13
[(h)] (I) “Prevailing wage rate” means the hourly rate of wages paid in the 14
locality as determined by the Commissioner under § 17–208 of this subtitle. 15
[(i)] (J) (1) “Public body” means: 16
(i) the State; 17
(ii) except as provided in paragraph (2)(i) of this subsection, a unit of 18
the State government or instrumentality of the State; 19
(iii) any political subdivision, agency, person, or entity with respect 20
to the construction of any public work for which 25% or more of the money used for 21
construction is State money; 22
(iv) notwithstanding paragraph (2)(ii) of this subsection, a political 23
subdivision if its governing body: 24
1. provides by ordinance or resolution that the political 25
subdivision is covered by this subtitle; and 26
2. gives written notice of that ordinance or resolution to the 27
Commissioner; and 28
(v) the Washington Suburban Sanitary Commission. 29
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(2) “Public body” does not include: 1
(i) except as provided in paragraph (1)(v) of this subsection, a unit 2
of the State government or instrumentality of the State funded wholly from a source other 3
than the State; or 4
(ii) any political subdivision, agency, person, or entity with respect 5
to the construction of any public work for which less than 25% of the money used for 6
construction is State money. 7
[(j)] (K) (1) Subject to paragraph (2) of this subsection, “public work” means 8
a structure or work, including a bridge, building, ditch, road, alley, waterwork, or sewage 9
disposal plant, that: 10
(i) is constructed for public use or benefit; or 11
(ii) is paid for wholly or partly by public money. 12
(2) “Public work” does not include: 13
(i) unless let to contract, a structure or work whose construction is 14
performed by a public service company under order of the Public Service Commission or 15
other public authority regardless of: 16
1. public supervision or direction; or 17
2. payment wholly or partly from public money; or 18
(ii) a capital project that receives State funds in the annual State 19
capital budget as: 20
1. a local House of Delegates initiative; or 21
2. a local Senate initiative. 22
[(k)] (L) “Public work contract” means a contract for construction of a public 23
work. 24
[(l)] (M) “Worker” means a laborer or mechanic. 25
17–202. 26
(a) This subtitle does not limit: 27
(1) the hours of work an employee may work in a particular period of time; 28
or 29
SENATE BILL 259 5
(2) the right of a contractor to pay an employee under a public work 1
contract more than the prevailing wage rate. 2
(b) [This] EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, THIS 3
subtitle does not apply to: 4
(1) a public work contract of less than $250,000; or 5
(2) the part of a public work contract for which the federal government 6
provides money if, as to that part, the contractor is required to pay the prevailing wage rate 7
as determined by the United States Secretary of Labor. 8
(c) If this subtitle and the federal Davis–Bacon Act apply and the federal act is 9
suspended, the Governor may declare this subtitle suspended for the same period for: 10
(1) the part of that public work contract for which the United States 11
Secretary of Labor would have been required to make a determination of a prevailing wage 12
rate; or 13
(2) that entire public work contract. 14
(d) (1) Subject to paragraph (2) of this subsection, this subtitle applies to the 15
construction of a structure or work, including a bridge, a building, a ditch, a road, an alley, 16
a waterwork, or a sewage disposal plant, funded with bond proceeds from bonds issued in 17
accordance with Title 12, Subtitle 2 of the Economic Development Article that is located in 18
a designated tax increment financing development district created on or after July 1, 2018, 19
established under State or local law. 20
(2) This subsection applies to the construction of a structure or work only 21
if a political subdivision of the State, Baltimore City, or the Revenue Authority of Prince 22
George’s County authorizes that the construction of the structure or work is subject to this 23
subtitle. 24
(E) THIS SUBTITLE APPLIES TO A MECHANICAL SYSTEMS SERVICE 25
CONTRACT THAT IS PAR T OF A PUBLIC WORK CONTRACT WITH A VALUE IN EXCESS 26
OF THE THRESHOLD SPECIFIED IN 41 U.S.C. 6702(A)(2), THE MCNAMARA–O’HARA 27
SERVICE CONTRACT ACT OF 1965 (SCA). 28
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 29
October 1, 2022. 30