EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING 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.
*sb0259*
SENATE BILL 259
P2 2lr0467
CF HB 611
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
Reassigned: Finance, January 17, 2022
Committee Report: Favorable
Senate action: Adopted
Read second time: March 9, 2022
CHAPTER ______
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 2 SENATE BILL 259
(1) is at least 16 years old; 1
(2) has signed with an employer or employer’s agent, an association of 2
employers, an organization of employees, or a joint committee from both, an agreement 3
including a statement of: 4
(i) the trade, craft, or occupation that the individual is learning; and 5
(ii) the beginning and ending dates of the apprenticeship; and 6
(3) is registered in a program of the Council or the Office of Apprenticeship 7
of the United States Department of Labor. 8
(c) “Commissioner” means: 9
(1) the Commissioner of Labor and Industry; 10
(2) the Deputy Commissioner of Labor and Industry; or 11
(3) an authorized representative of the Commissioner. 12
(d) “Construction” includes all: 13
(1) building; 14
(2) reconstructing; 15
(3) improving; 16
(4) enlarging; 17
(5) painting and decorating; 18
(6) altering; 19
(7) maintaining; [and] 20
(8) repairing; AND 21
(9) SERVICES PROVIDED UN DER A MECHANICAL SYSTEM S SERVICE 22
CONTRACT. 23
(e) “Council” means the Apprenticeship and Training Council. 24
(f) (1) “Employee” means an apprentice or worker employed by a contractor or 25
subcontractor under a public work contract. 26 SENATE BILL 259 3
(2) “Employee” does not include an individual employed by a public body. 1
(g) (1) “Locality” means the county in which the work is to be performed. 2
(2) If the public work is located within 2 or more counties, the locality 3
includes all counties in which the public work is located. 4
(H) “MECHANICAL SYSTEMS SE RVICE CONTRACT ” MEANS A CONTRACT FOR: 5
(1) HVAC SYSTEMS, INCLUDING HEATING , VENTILATION, 6
DUCTWORK , AND COOLING /AIR–CONDITIONING EQUIPME NT; 7
(2) REFRIGERATION SYSTEM S; 8
(3) PLUMBING SYSTEMS , INCLUDING PIPES , TANKS, FITTINGS, AND 9
OTHER ELEMENTS THAT CONTROL THE WATER AN D GAS SUPPLY , HEATING, AND 10
SANITATION OF A BUIL DING; 11
(4) ELECTRICAL SYSTEMS , INCLUDING ELECTRICAL COMPONENTS 12
THAT SUPPLY, DISTRIBUTE, GENERATE, AND USE ELECTRICAL P OWER, OVERHEAD 13
AND UNDERGROUND LINE S, POLES, TRANSFORMERS , AND OTHER RELATED 14
EQUIPMENT; AND 15
(5) ELEVATOR SYSTEMS , INCLUDING ESCALATORS , MOVING 16
WALKWAYS, AND OTHER CONVEYANCE S. 17
[(h)] (I) “Prevailing wage rate” means the hourly rate of wages paid in the 18
locality as determined by the Commissioner under § 17–208 of this subtitle. 19
[(i)] (J) (1) “Public body” means: 20
(i) the State; 21
(ii) except as provided in paragraph (2)(i) of this subsection, a unit of 22
the State government or instrumentality of the State; 23
(iii) any political subdivision, agency, person, or entity with respect 24
to the construction of any public work for which 25% or more of the money used for 25
construction is State money; 26
(iv) notwithstanding paragraph (2)(ii) of this subsection, a political 27
subdivision if its governing body: 28
4 SENATE BILL 259
1. provides by ordinance or resolution that the political 1
subdivision is covered by this subtitle; and 2
2. gives written notice of that ordinance or resolution to the 3
Commissioner; and 4
(v) the Washington Suburban Sanitary Commission. 5
(2) “Public body” does not include: 6
(i) except as provided in paragraph (1)(v) of this subsection, a unit 7
of the State government or instrumentality of the State funded wholly from a source other 8
than the State; or 9
(ii) any political subdivision, agency, person, or entity with respect 10
to the construction of any public work for which less than 25% of the money used for 11
construction is State money. 12
[(j)] (K) (1) Subject to paragraph (2) of this subsection, “public work” means 13
a structure or work, including a bridge, building, ditch, road, alley, waterwork, or sewage 14
disposal plant, that: 15
(i) is constructed for public use or benefit; or 16
(ii) is paid for wholly or partly by public money. 17
(2) “Public work” does not include: 18
(i) unless let to contract, a structure or work whose construction is 19
performed by a public service company under order of the Public Service Commission or 20
other public authority regardless of: 21
1. public supervision or direction; or 22
2. payment wholly or partly from public money; or 23
(ii) a capital project that receives State funds in the annual State 24
capital budget as: 25
1. a local House of Delegates initiative; or 26
2. a local Senate initiative. 27
[(k)] (L) “Public work contract” means a contract for construction of a public 28
work. 29
[(l)] (M) “Worker” means a laborer or mechanic. 30 SENATE BILL 259 5
17–202. 1
(a) This subtitle does not limit: 2
(1) the hours of work an employee may work in a particular period of time; 3
or 4
(2) the right of a contractor to pay an employee under a public work 5
contract more than the prevailing wage rate. 6
(b) [This] EXCEPT AS PROVIDED I N SUBSECTION (E) OF THIS SECTION, THIS 7
subtitle does not apply to: 8
(1) a public work contract of less than $250,000; or 9
(2) the part of a public work contract for which the federal government 10
provides money if, as to that part, the contractor is required to pay the prevailing wage rate 11
as determined by the United States Secretary of Labor. 12
(c) If this subtitle and the federal Davis–Bacon Act apply and the federal act is 13
suspended, the Governor may declare this subtitle suspended for the same period for: 14
(1) the part of that public work contract for which the United States 15
Secretary of Labor would have been required to make a determination of a prevailing wage 16
rate; or 17
(2) that entire public work contract. 18
(d) (1) Subject to paragraph (2) of this subsection, this subtitle applies to the 19
construction of a structure or work, including a bridge, a building, a ditch, a road, an alley, 20
a waterwork, or a sewage disposal plant, funded with bond proceeds from bonds issued in 21
accordance with Title 12, Subtitle 2 of the Economic Development Article that is located in 22
a designated tax increment financing development district created on or after July 1, 2018, 23
established under State or local law. 24
(2) This subsection applies to the construction of a structure or work only 25
if a political subdivision of the State, Baltimore City, or the Revenue Authority of Prince 26
George’s County authorizes that the construction of the structure or work is subject to this 27
subtitle. 28
(E) THIS SUBTITLE APPLIES TO A MECHANICAL SYSTEMS SERVICE 29
CONTRACT THAT IS PAR T OF A PUBLIC WORK CONTRACT WITH A VALUE IN EXCESS 30
OF THE THRESHOLD SPECIFIED IN 41 U.S.C. 6702(A)(2), THE MCNAMARA–O’HARA 31
SERVICE CONTRACT ACT OF 1965 (SCA). 32
6 SENATE BILL 259
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2022. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.