MD
Maryland Senate Bill SB259

Maryland 2022 Regular Session

Maryland Senate Bill SB259 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 51
21
3-– 1 –
4-Chapter 51
5-(Senate Bill 259)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *sb0259*
89
9-Procurement – Prevailing Wage – Applicability
10+SENATE BILL 259
11+P2 2lr0467
12+ CF HB 611
13+By: Senators Feldman, Augustine, Beidle, Benson, Elfreth, Guzzone, Kelley,
14+Klausmeier, Kramer, McCray, and Smith
15+Introduced and read first time: January 14, 2022
16+Assigned to: Budget and Taxation
17+Reassigned: Finance, January 17, 2022
18+Committee Report: Favorable
19+Senate action: Adopted
20+Read second time: March 9, 2022
1021
11-FOR the purpose of applying the Prevailing Wage Law to a certain contract for the
12-construction of a public work under certain circumstances; and generally relating to
13-the applicability of the Prevailing Wage Law.
22+CHAPTER ______
1423
15-BY repealing and reenacting, with amendments,
16- Article – State Finance and Procurement
17-Section 17–201 and 17–202
18- Annotated Code of Maryland
19- (2021 Replacement Volume)
24+AN ACT concerning 1
2025
21- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
22-That the Laws of Maryland read as follows:
26+Procurement – Prevailing Wage – Applicability 2
2327
24-Article – State Finance and Procurement
28+FOR the purpose of applying the Prevailing Wage Law to a certain contract for the 3
29+construction of a public work under certain circumstances; and generally relating to 4
30+the applicability of the Prevailing Wage Law. 5
2531
26-17–201.
32+BY repealing and reenacting, with amendments, 6
33+ Article – State Finance and Procurement 7
34+Section 17–201 and 17–202 8
35+ Annotated Code of Maryland 9
36+ (2021 Replacement Volume) 10
2737
28- (a) In this subtitle, unless the context indicates otherwise, the following words
29-have the meanings indicated.
38+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
39+That the Laws of Maryland read as follows: 12
3040
31- (b) “Apprentice” means an individual who:
41+Article – State Finance and Procurement 13
3242
33- (1) is at least 16 years old;
43+17–201. 14
3444
35- (2) has signed with an employer or employer’s agent, an association of
36-employers, an organization of employees, or a joint committee from both, an agreement
37-including a statement of:
45+ (a) In this subtitle, unless the context indicates otherwise, the following words 15
46+have the meanings indicated. 16
3847
39- (i) the trade, craft, or occupation that the individual is learning; and
48+ (b) “Apprentice” means an individual who: 17 2 SENATE BILL 259
4049
41- (ii) the beginning and ending dates of the apprenticeship; and
4250
43- (3) is registered in a program of the Council or the Office of Apprenticeship
44-of the United States Department of Labor.
4551
46- (c) “Commissioner” means:
52+ (1) is at least 16 years old; 1
4753
48- (1) the Commissioner of Labor and Industry;
49- Ch. 51 2022 LAWS OF MARYLAND
54+ (2) has signed with an employer or employer’s agent, an association of 2
55+employers, an organization of employees, or a joint committee from both, an agreement 3
56+including a statement of: 4
5057
51-– 2 –
52- (2) the Deputy Commissioner of Labor and Industry; or
58+ (i) the trade, craft, or occupation that the individual is learning; and 5
5359
54- (3) an authorized representative of the Commissioner.
60+ (ii) the beginning and ending dates of the apprenticeship; and 6
5561
56- (d) “Construction” includes all:
62+ (3) is registered in a program of the Council or the Office of Apprenticeship 7
63+of the United States Department of Labor. 8
5764
58- (1) building;
65+ (c) “Commissioner” means: 9
5966
60- (2) reconstructing;
67+ (1) the Commissioner of Labor and Industry; 10
6168
62- (3) improving;
69+ (2) the Deputy Commissioner of Labor and Industry; or 11
6370
64- (4) enlarging;
71+ (3) an authorized representative of the Commissioner. 12
6572
66- (5) painting and decorating;
73+ (d) “Construction” includes all: 13
6774
68- (6) altering;
75+ (1) building; 14
6976
70- (7) maintaining; [and]
77+ (2) reconstructing; 15
7178
72- (8) repairing; AND
79+ (3) improving; 16
7380
74- (9) SERVICES PROVIDED UN DER A MECHANICAL SYSTEM S SERVICE
75-CONTRACT.
81+ (4) enlarging; 17
7682
77- (e) “Council” means the Apprenticeship and Training Council.
83+ (5) painting and decorating; 18
7884
79- (f) (1) “Employee” means an apprentice or worker employed by a contractor or
80-subcontractor under a public work contract.
85+ (6) altering; 19
8186
82- (2) “Employee” does not include an individual employed by a public body.
87+ (7) maintaining; [and] 20
8388
84- (g) (1) “Locality” means the county in which the work is to be performed.
89+ (8) repairing; AND 21
8590
86- (2) If the public work is located within 2 or more counties, the locality
87-includes all counties in which the public work is located.
91+ (9) SERVICES PROVIDED UN DER A MECHANICAL SYSTEM S SERVICE 22
92+CONTRACT. 23
8893
89- (H) “MECHANICAL SYSTEMS SE RVICE CONTRACT ” MEANS A CONTRACT FOR:
94+ (e) “Council” means the Apprenticeship and Training Council. 24
9095
91- (1) HVAC SYSTEMS, INCLUDING HEATING , VENTILATION,
92-DUCTWORK , AND COOLING /AIR–CONDITIONING EQUIPME NT;
96+ (f) (1) “Employee” means an apprentice or worker employed by a contractor or 25
97+subcontractor under a public work contract. 26 SENATE BILL 259 3
9398
94- (2) REFRIGERATION SYSTEM S;
95- LAWRENCE J. HOGAN, JR., Governor Ch. 51
9699
97-– 3 –
98- (3) PLUMBING SYSTEMS , INCLUDING PIPES, TANKS, FITTINGS, AND
99-OTHER ELEMENTS THAT CONTROL THE WATER AN D GAS SUPPLY , HEATING, AND
100-SANITATION OF A BUIL DING;
101100
102- (4) ELECTRICAL SYSTEMS , INCLUDING ELECTRICAL COMPONENTS
103-THAT SUPPLY, DISTRIBUTE, GENERATE, AND USE ELECTRICAL P OWER, OVERHEAD
104-AND UNDERGROUND LINE S, POLES, TRANSFORMERS , AND OTHER RELATED
105-EQUIPMENT; AND
101+ (2) “Employee” does not include an individual employed by a public body. 1
106102
107- (5) ELEVATOR SYSTEMS , INCLUDING ESCALATORS , MOVING
108-WALKWAY S, AND OTHER CONVEYANCE S.
103+ (g) (1) “Locality” means the county in which the work is to be performed. 2
109104
110- [(h)] (I) “Prevailing wage rate” means the hourly rate of wages paid in the
111-locality as determined by the Commissioner under § 17–208 of this subtitle.
105+ (2) If the public work is located within 2 or more counties, the locality 3
106+includes all counties in which the public work is located. 4
112107
113- [(i)] (J) (1) “Public body” means:
108+ (H) “MECHANICAL SYSTEMS SE RVICE CONTRACT ” MEANS A CONTRACT FOR: 5
114109
115- (i) the State;
110+ (1) HVAC SYSTEMS, INCLUDING HEATING , VENTILATION, 6
111+DUCTWORK , AND COOLING /AIR–CONDITIONING EQUIPME NT; 7
116112
117- (ii) except as provided in paragraph (2)(i) of this subsection, a unit of
118-the State government or instrumentality of the State;
113+ (2) REFRIGERATION SYSTEM S; 8
119114
120- (iii) any political subdivision, agency, person, or entity with respect
121-to the construction of any public work for which 25% or more of the money used for
122-construction is State money;
115+ (3) PLUMBING SYSTEMS , INCLUDING PIPES , TANKS, FITTINGS, AND 9
116+OTHER ELEMENTS THAT CONTROL THE WATER AN D GAS SUPPLY , HEATING, AND 10
117+SANITATION OF A BUIL DING; 11
123118
124- (iv) notwithstanding paragraph (2)(ii) of this subsection, a political
125-subdivision if its governing body:
119+ (4) ELECTRICAL SYSTEMS , INCLUDING ELECTRICAL COMPONENTS 12
120+THAT SUPPLY, DISTRIBUTE, GENERATE, AND USE ELECTRICAL P OWER, OVERHEAD 13
121+AND UNDERGROUND LINE S, POLES, TRANSFORMERS , AND OTHER RELATED 14
122+EQUIPMENT; AND 15
126123
127- 1. provides by ordinance or resolution that the political
128-subdivision is covered by this subtitle; and
124+ (5) ELEVATOR SYSTEMS , INCLUDING ESCALATORS , MOVING 16
125+WALKWAYS, AND OTHER CONVEYANCE S. 17
129126
130- 2. gives written notice of that ordinance or resolution to the
131-Commissioner; and
127+ [(h)] (I) “Prevailing wage rate” means the hourly rate of wages paid in the 18
128+locality as determined by the Commissioner under § 17–208 of this subtitle. 19
132129
133- (v) the Washington Suburban Sanitary Commission.
130+ [(i)] (J) (1) “Public body” means: 20
134131
135- (2) “Public body” does not include:
132+ (i) the State; 21
136133
137- (i) except as provided in paragraph (1)(v) of this subsection, a unit
138-of the State government or instrumentality of the State funded wholly from a source other
139-than the State; or
140- Ch. 51 2022 LAWS OF MARYLAND
134+ (ii) except as provided in paragraph (2)(i) of this subsection, a unit of 22
135+the State government or instrumentality of the State; 23
141136
142-– 4 –
143- (ii) any political subdivision, agency, person, or entity with respect
144-to the construction of any public work for which less than 25% of the money used for
145-construction is State money.
137+ (iii) any political subdivision, agency, person, or entity with respect 24
138+to the construction of any public work for which 25% or more of the money used for 25
139+construction is State money; 26
146140
147- [(j)] (K) (1) Subject to paragraph (2) of this subsection, “public work” means
148-a structure or work, including a bridge, building, ditch, road, alley, waterwork, or sewage
149-disposal plant, that:
141+ (iv) notwithstanding paragraph (2)(ii) of this subsection, a political 27
142+subdivision if its governing body: 28
143+ 4 SENATE BILL 259
150144
151- (i) is constructed for public use or benefit; or
152145
153- (ii) is paid for wholly or partly by public money.
146+ 1. provides by ordinance or resolution that the political 1
147+subdivision is covered by this subtitle; and 2
154148
155- (2) “Public work” does not include:
149+ 2. gives written notice of that ordinance or resolution to the 3
150+Commissioner; and 4
156151
157- (i) unless let to contract, a structure or work whose construction is
158-performed by a public service company under order of the Public Service Commission or
159-other public authority regardless of:
152+ (v) the Washington Suburban Sanitary Commission. 5
160153
161- 1. public supervision or direction; or
154+ (2) “Public body” does not include: 6
162155
163- 2. payment wholly or partly from public money; or
156+ (i) except as provided in paragraph (1)(v) of this subsection, a unit 7
157+of the State government or instrumentality of the State funded wholly from a source other 8
158+than the State; or 9
164159
165- (ii) a capital project that receives State funds in the annual State
166-capital budget as:
160+ (ii) any political subdivision, agency, person, or entity with respect 10
161+to the construction of any public work for which less than 25% of the money used for 11
162+construction is State money. 12
167163
168- 1. a local House of Delegates initiative; or
164+ [(j)] (K) (1) Subject to paragraph (2) of this subsection, “public work” means 13
165+a structure or work, including a bridge, building, ditch, road, alley, waterwork, or sewage 14
166+disposal plant, that: 15
169167
170- 2. a local Senate initiative.
168+ (i) is constructed for public use or benefit; or 16
171169
172- [(k)] (L) “Public work contract” means a contract for construction of a public
173-work.
170+ (ii) is paid for wholly or partly by public money. 17
174171
175- [(l)] (M) “Worker” means a laborer or mechanic.
172+ (2) “Public work” does not include: 18
176173
177-17–202.
174+ (i) unless let to contract, a structure or work whose construction is 19
175+performed by a public service company under order of the Public Service Commission or 20
176+other public authority regardless of: 21
178177
179- (a) This subtitle does not limit:
178+ 1. public supervision or direction; or 22
180179
181- (1) the hours of work an employee may work in a particular period of time;
182-or
180+ 2. payment wholly or partly from public money; or 23
183181
184- (2) the right of a contractor to pay an employee under a public work
185-contract more than the prevailing wage rate.
182+ (ii) a capital project that receives State funds in the annual State 24
183+capital budget as: 25
186184
187- (b) [This] EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, THIS
188-subtitle does not apply to: LAWRENCE J. HOGAN, JR., Governor Ch. 51
185+ 1. a local House of Delegates initiative; or 26
189186
190-– 5 –
187+ 2. a local Senate initiative. 27
191188
192- (1) a public work contract of less than $250,000; or
189+ [(k)] (L) “Public work contract” means a contract for construction of a public 28
190+work. 29
193191
194- (2) the part of a public work contract for which the federal government
195-provides money if, as to that part, the contractor is required to pay the prevailing wage rate
196-as determined by the United States Secretary of Labor.
192+ [(l)] (M) “Worker” means a laborer or mechanic. 30 SENATE BILL 259 5
197193
198- (c) If this subtitle and the federal Davis–Bacon Act apply and the federal act is
199-suspended, the Governor may declare this subtitle suspended for the same period for:
200194
201- (1) the part of that public work contract for which the United States
202-Secretary of Labor would have been required to make a determination of a prevailing wage
203-rate; or
204195
205- (2) that entire public work contract.
196+17–202. 1
206197
207- (d) (1) Subject to paragraph (2) of this subsection, this subtitle applies to the
208-construction of a structure or work, including a bridge, a building, a ditch, a road, an alley,
209-a waterwork, or a sewage disposal plant, funded with bond proceeds from bonds issued in
210-accordance with Title 12, Subtitle 2 of the Economic Development Article that is located in
211-a designated tax increment financing development district created on or after July 1, 2018,
212-established under State or local law.
198+ (a) This subtitle does not limit: 2
213199
214- (2) This subsection applies to the construction of a structure or work only
215-if a political subdivision of the State, Baltimore City, or the Revenue Authority of Prince
216-George’s County authorizes that the construction of the structure or work is subject to this
217-subtitle.
200+ (1) the hours of work an employee may work in a particular period of time; 3
201+or 4
218202
219- (E) THIS SUBTITLE APPLIES TO A MECHANICAL SYSTEMS SERVICE
220-CONTRACT THAT IS PAR T OF A PUBLIC WORK CONTRACT WITH A VALUE IN EXCESS
221-OF THE THRESHOLD SPECIFIED IN 41 U.S.C. 6702(A)(2), THE MCNAMARA–O’HARA
222-SERVICE CONTRACT ACT OF 1965 (SCA).
203+ (2) the right of a contractor to pay an employee under a public work 5
204+contract more than the prevailing wage rate. 6
223205
224- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
225-October 1, 2022.
206+ (b) [This] EXCEPT AS PROVIDED I N SUBSECTION (E) OF THIS SECTION, THIS 7
207+subtitle does not apply to: 8
226208
227-Gubernatorial Veto Override, April 9, 2022.
209+ (1) a public work contract of less than $250,000; or 9
210+
211+ (2) the part of a public work contract for which the federal government 10
212+provides money if, as to that part, the contractor is required to pay the prevailing wage rate 11
213+as determined by the United States Secretary of Labor. 12
214+
215+ (c) If this subtitle and the federal Davis–Bacon Act apply and the federal act is 13
216+suspended, the Governor may declare this subtitle suspended for the same period for: 14
217+
218+ (1) the part of that public work contract for which the United States 15
219+Secretary of Labor would have been required to make a determination of a prevailing wage 16
220+rate; or 17
221+
222+ (2) that entire public work contract. 18
223+
224+ (d) (1) Subject to paragraph (2) of this subsection, this subtitle applies to the 19
225+construction of a structure or work, including a bridge, a building, a ditch, a road, an alley, 20
226+a waterwork, or a sewage disposal plant, funded with bond proceeds from bonds issued in 21
227+accordance with Title 12, Subtitle 2 of the Economic Development Article that is located in 22
228+a designated tax increment financing development district created on or after July 1, 2018, 23
229+established under State or local law. 24
230+
231+ (2) This subsection applies to the construction of a structure or work only 25
232+if a political subdivision of the State, Baltimore City, or the Revenue Authority of Prince 26
233+George’s County authorizes that the construction of the structure or work is subject to this 27
234+subtitle. 28
235+
236+ (E) THIS SUBTITLE APPLIES TO A MECHANICAL SYSTEMS SERVICE 29
237+CONTRACT THAT IS PAR T OF A PUBLIC WORK CONTRACT WITH A VALUE IN EXCESS 30
238+OF THE THRESHOLD SPECIFIED IN 41 U.S.C. 6702(A)(2), THE MCNAMARA–O’HARA 31
239+SERVICE CONTRACT ACT OF 1965 (SCA). 32
240+ 6 SENATE BILL 259
241+
242+
243+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
244+October 1, 2022. 2
245+
246+
247+
248+
249+Approved:
250+________________________________________________________________________________
251+ Governor.
252+________________________________________________________________________________
253+ President of the Senate.
254+________________________________________________________________________________
255+ Speaker of the House of Delegates.