LAWRENCE J. HOGAN, JR., Governor Ch. 51
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Chapter 51
(Senate Bill 259)
AN ACT concerning
Procurement – Prevailing Wage – Applicability
FOR the purpose of applying the Prevailing Wage Law to a certain contract for the
construction of a public work under certain circumstances; and generally relating to
the applicability of the Prevailing Wage Law.
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 17–201 and 17–202
Annotated Code of Maryland
(2021 Replacement Volume)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – State Finance and Procurement
17–201.
(a) In this subtitle, unless the context indicates otherwise, the following words
have the meanings indicated.
(b) “Apprentice” means an individual who:
(1) is at least 16 years old;
(2) has signed with an employer or employer’s agent, an association of
employers, an organization of employees, or a joint committee from both, an agreement
including a statement of:
(i) the trade, craft, or occupation that the individual is learning; and
(ii) the beginning and ending dates of the apprenticeship; and
(3) is registered in a program of the Council or the Office of Apprenticeship
of the United States Department of Labor.
(c) “Commissioner” means:
(1) the Commissioner of Labor and Industry;
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(2) the Deputy Commissioner of Labor and Industry; or
(3) an authorized representative of the Commissioner.
(d) “Construction” includes all:
(1) building;
(2) reconstructing;
(3) improving;
(4) enlarging;
(5) painting and decorating;
(6) altering;
(7) maintaining; [and]
(8) repairing; AND
(9) SERVICES PROVIDED UN DER A MECHANICAL SYSTEM S SERVICE
CONTRACT.
(e) “Council” means the Apprenticeship and Training Council.
(f) (1) “Employee” means an apprentice or worker employed by a contractor or
subcontractor under a public work contract.
(2) “Employee” does not include an individual employed by a public body.
(g) (1) “Locality” means the county in which the work is to be performed.
(2) If the public work is located within 2 or more counties, the locality
includes all counties in which the public work is located.
(H) “MECHANICAL SYSTEMS SE RVICE CONTRACT ” MEANS A CONTRACT FOR:
(1) HVAC SYSTEMS, INCLUDING HEATING , VENTILATION,
DUCTWORK , AND COOLING /AIR–CONDITIONING EQUIPME NT;
(2) REFRIGERATION SYSTEM S;
LAWRENCE J. HOGAN, JR., Governor Ch. 51
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(3) PLUMBING SYSTEMS , INCLUDING PIPES, TANKS, FITTINGS, AND
OTHER ELEMENTS THAT CONTROL THE WATER AN D GAS SUPPLY , HEATING, AND
SANITATION OF A BUIL DING;
(4) ELECTRICAL SYSTEMS , INCLUDING ELECTRICAL COMPONENTS
THAT SUPPLY, DISTRIBUTE, GENERATE, AND USE ELECTRICAL P OWER, OVERHEAD
AND UNDERGROUND LINE S, POLES, TRANSFORMERS , AND OTHER RELATED
EQUIPMENT; AND
(5) ELEVATOR SYSTEMS , INCLUDING ESCALATORS , MOVING
WALKWAY S, AND OTHER CONVEYANCE S.
[(h)] (I) “Prevailing wage rate” means the hourly rate of wages paid in the
locality as determined by the Commissioner under § 17–208 of this subtitle.
[(i)] (J) (1) “Public body” means:
(i) the State;
(ii) except as provided in paragraph (2)(i) of this subsection, a unit of
the State government or instrumentality of the State;
(iii) any political subdivision, agency, person, or entity with respect
to the construction of any public work for which 25% or more of the money used for
construction is State money;
(iv) notwithstanding paragraph (2)(ii) of this subsection, a political
subdivision if its governing body:
1. provides by ordinance or resolution that the political
subdivision is covered by this subtitle; and
2. gives written notice of that ordinance or resolution to the
Commissioner; and
(v) the Washington Suburban Sanitary Commission.
(2) “Public body” does not include:
(i) except as provided in paragraph (1)(v) of this subsection, a unit
of the State government or instrumentality of the State funded wholly from a source other
than the State; or
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(ii) any political subdivision, agency, person, or entity with respect
to the construction of any public work for which less than 25% of the money used for
construction is State money.
[(j)] (K) (1) Subject to paragraph (2) of this subsection, “public work” means
a structure or work, including a bridge, building, ditch, road, alley, waterwork, or sewage
disposal plant, that:
(i) is constructed for public use or benefit; or
(ii) is paid for wholly or partly by public money.
(2) “Public work” does not include:
(i) unless let to contract, a structure or work whose construction is
performed by a public service company under order of the Public Service Commission or
other public authority regardless of:
1. public supervision or direction; or
2. payment wholly or partly from public money; or
(ii) a capital project that receives State funds in the annual State
capital budget as:
1. a local House of Delegates initiative; or
2. a local Senate initiative.
[(k)] (L) “Public work contract” means a contract for construction of a public
work.
[(l)] (M) “Worker” means a laborer or mechanic.
17–202.
(a) This subtitle does not limit:
(1) the hours of work an employee may work in a particular period of time;
or
(2) the right of a contractor to pay an employee under a public work
contract more than the prevailing wage rate.
(b) [This] EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, THIS
subtitle does not apply to: LAWRENCE J. HOGAN, JR., Governor Ch. 51
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(1) a public work contract of less than $250,000; or
(2) the part of a public work contract for which the federal government
provides money if, as to that part, the contractor is required to pay the prevailing wage rate
as determined by the United States Secretary of Labor.
(c) If this subtitle and the federal Davis–Bacon Act apply and the federal act is
suspended, the Governor may declare this subtitle suspended for the same period for:
(1) the part of that public work contract for which the United States
Secretary of Labor would have been required to make a determination of a prevailing wage
rate; or
(2) that entire public work contract.
(d) (1) Subject to paragraph (2) of this subsection, this subtitle applies to the
construction of a structure or work, including a bridge, a building, a ditch, a road, an alley,
a waterwork, or a sewage disposal plant, funded with bond proceeds from bonds issued in
accordance with Title 12, Subtitle 2 of the Economic Development Article that is located in
a designated tax increment financing development district created on or after July 1, 2018,
established under State or local law.
(2) This subsection applies to the construction of a structure or work only
if a political subdivision of the State, Baltimore City, or the Revenue Authority of Prince
George’s County authorizes that the construction of the structure or work is subject to this
subtitle.
(E) THIS SUBTITLE APPLIES TO A MECHANICAL SYSTEMS SERVICE
CONTRACT THAT IS PAR T OF A PUBLIC WORK CONTRACT WITH A VALUE IN EXCESS
OF THE THRESHOLD SPECIFIED IN 41 U.S.C. 6702(A)(2), THE MCNAMARA–O’HARA
SERVICE CONTRACT ACT OF 1965 (SCA).
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2022.
Gubernatorial Veto Override, April 9, 2022.