Maryland 2023 2023 Regular Session

Maryland Senate Bill SB555 Engrossed / Bill

Filed 03/17/2023

                     
 
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. 
          *sb0555*  
  
SENATE BILL 555 
K3   	3lr0134 
    	CF HB 549 
By: The President (By Request – Administration) and Senators Waldstreicher, 
Augustine, Benson, Carter, Ellis, Hettleman, Jackson, Kagan, King, Kramer, 
Lam, McCray, Muse, Rosapepe, Smith, Sydnor, M. Washington, and Watson 
Introduced and read first time: February 6, 2023 
Assigned to: Finance and Budget and Taxation 
Committee Report: Favorable with amendments 
Senate action: Adopted 
Read second time: March 8, 2023 
 
CHAPTER ______ 
 
AN ACT concerning 1 
 
Fair Wage Act of 2023 2 
 
FOR the purpose of increasing the State minimum wage rate in effect for certain periods of 3 
time; increasing, except under certain circumstances, the State minimum wage rate 4 
in effect for certain periods of time based on annual growth in a certain consumer 5 
price index; altering repealing the authority of the Board of Public Works to 6 
temporarily suspend an increase in the minimum wage rate; repealing the 7 
requirement that the Governor’s budgets for certain fiscal years include certain 8 
provider rate increases; and generally relating to the State minimum wage rate. 9 
 
BY repealing and reenacting, with amendments, 10 
 Article – Health – General 11 
 Section 7–307, 16–201.3, and 16–201.4 12 
 Annotated Code of Maryland 13 
 (2019 Replacement Volume and 2022 Supplement) 14 
 
BY repealing and reenacting, with amendments, 15 
 Article – Labor and Employment  16 
 Section 3–413 and 3–413.1 17 
 Annotated Code of Maryland  18 
 (2016 Replacement Volume and 2022 Supplement) 19 
 
BY repealing 20  2 	SENATE BILL 555  
 
 
 Article – Labor and Employment 1 
Section 3–413.1 2 
 Annotated Code of Maryland 3 
 (2016 Replacement Volume and 2022 Supplement)  4 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5 
That the Laws of Maryland read as follows: 6 
 
Article – Health – General 7 
 
7–307. 8 
 
 (a) (1) In this section the following words have the meanings indicated. 9 
 
 (2) “Community direct service worker” means an employee of a community 10 
provider that provides treatment or services to developmentally disabled individuals. 11 
 
 (3) “Community provider” means a community–based agency or program 12 
funded by the Administration to serve individuals with developmental disabilities. 13 
 
 (4) “Rate” means the reimbursement rate paid by the Department to a 14 
community provider from the State General Fund, Maryland Medical Assistance Program 15 
funds, other State or federal funds, or a combination of funds. 16 
 
 (b) Notwithstanding the provisions of this title or any other provision of law, the 17 
Department shall reimburse community providers as provided in this section. 18 
 
 (c) Subject to subsection (d) of this section, the Department shall increase the rate 19 
of reimbursement for community service providers each fiscal year by the amount of rate 20 
increase included in the State budget for that fiscal year. 21 
 
 (d) (1) The Governor’s proposed budget for fiscal year 2019 shall include a 22 
3.5% rate increase for community service providers over the funding provided in the 23 
legislative appropriation for Object 08 Contractual Services in Program M00M01.02 24 
Community Services for fiscal year 2018. 25 
 
 (2) The Governor’s proposed budget for fiscal year 2021 shall include a 4% 26 
rate increase for community service providers over the funding provided in the legislative 27 
appropriation for Object 08 Contractual Services in Program M00M01.02 Community 28 
Services for fiscal year 2020. 29 
 
 (3) The Governor’s proposed budget for fiscal year 2022 shall include a 4% 30 
rate increase for community service providers over the funding provided in the legislative 31 
appropriation for Object 08 Contractual Services in Program M00M01.02 Community 32 
Services for fiscal year 2021. 33 
   	SENATE BILL 555 	3 
 
 
 (4) The Governor’s proposed budget for fiscal year 2023 shall include a 4% 1 
rate increase for community service providers over the funding provided in the legislative 2 
appropriation for Object 08 Contractual Services in Program M00M01.02 Community 3 
Services for fiscal year 2022. 4 
 
 (5) The Governor’s proposed budget for fiscal year 2024 shall include a 4% 5 
rate increase for community service providers over the funding provided in the legislative 6 
appropriation for Object 08 Contractual Services in Program M00M01.02 Community 7 
Services for fiscal year 2023. 8 
 
 [(6) The Governor’s proposed budget for fiscal year 2025 shall include a 4% 9 
rate increase for community service providers over the funding provided in the legislative 10 
appropriation for Object 08 Contractual Services in Program M00M01.02 Community 11 
Services for fiscal year 2024. 12 
 
 (7) The Governor’s proposed budget for fiscal year 2026 shall include a 4% 13 
rate increase for community service providers over the funding provided in the legislative 14 
appropriation for Object 08 Contractual Services in Program M00M01.02 Community 15 
Services for fiscal year 2025.] 16 
 
 (e) The Governor’s proposed budget for fiscal year 2016 and thereafter for 17 
community service providers shall be presented in the same manner, including object and 18 
program information, as provided for in the fiscal year 2015 budget. 19 
 
 (f) A portion of the funds in subsection (e) of this section may be allocated to 20 
address the impact of an increase in the State minimum wage on wages and benefits of 21 
direct support workers employed by community providers licensed by the Developmental 22 
Disabilities Administration. 23 
 
16–201.3. 24 
 
 (a) (1) In this section the following words have the meanings indicated. 25 
 
 (2) “Community provider” means a community–based agency or program 26 
funded by the Behavioral Health Administration or the Medical Care Programs 27 
Administration to serve individuals with mental disorders, substance–related disorders, or 28 
a combination of these disorders. 29 
 
 (3) “Rate” means the reimbursement rate paid by the Department to a 30 
community provider from the State General Fund, Maryland Medical Assistance Program 31 
funds, other State or federal funds, or a combination of these funds. 32 
 
 (b) This section does not apply to reimbursement for any service provided by a 33 
community provider whose rates are regulated by the Health Services Cost Review 34 
Commission. 35 
  4 	SENATE BILL 555  
 
 
 (c) It is the intent of the General Assembly that a substantial portion of the rate 1 
adjustment provided under subsection (d) of this section be used to: 2 
 
 (1) Compensate direct care staff and licensed clinicians employed by 3 
community providers; and 4 
 
 (2) Improve the quality of programming provided by community providers. 5 
 
 (d) (1) The Governor’s proposed budget for fiscal year 2019 and fiscal year 6 
2020 shall include a 3.5% rate increase for community providers over the funding provided 7 
in the legislative appropriation for the immediately preceding fiscal year for each of the 8 
following: 9 
 
 (i) Object 08 Contractual Services in Program M00Q01.10 Medicaid 10 
Behavioral Health Provider Reimbursement – Medical Care Programs Administration; 11 
 
 (ii) Object 08 Contractual Services in Prog ram M00L01.02 12 
Community Services – Behavioral Health Administration; and 13 
 
 (iii) Object 08 Contractual Services in Program M00L01.03 14 
Community Services for Medicaid State Fund Recipients – Behavioral Health 15 
Administration. 16 
 
 (2) The Governor’s proposed budget for fiscal year 2021 shall include a 4% 17 
rate increase for community providers over the funding provided in the legislative 18 
appropriation for the immediately preceding fiscal year for each of the following: 19 
 
 (i) Object 08 Contractual Services in Program M00Q01.10 Medicaid 20 
Behavioral Health Provider Reimbursement – Medical Care Programs Administration; 21 
 
 (ii) Object 08 Contractual Services in Program M00L01.02 22 
Community Services – Behavioral Health Administration; and 23 
 
 (iii) Object 08 Contractual Services in Program M00L01.03 24 
Community Services for Medicaid State Fund Recipients – Behavioral Health 25 
Administration. 26 
 
 (3) The Governor’s proposed budget for fiscal year 2022 shall include a 27 
3.5% rate increase for community providers over the funding provided in the legislative 28 
appropriation for the immediately preceding fiscal year for each of the following: 29 
 
 (i) Object 08 Contractual Services in Program M00Q01.10 Medicaid 30 
Behavioral Health Provider Reimbursement – Medical Care Programs Administration; 31 
 
 (ii) Object 08 Contractual Services in Program M00L01.02 32 
Community Services – Behavioral Health Administration; and 33 
   	SENATE BILL 555 	5 
 
 
 (iii) Object 08 Contractual Services in Program M00L01.03 1 
Community Services for Medicaid State Fund Recipients – Behavioral Health 2 
Administration. 3 
 
 (4) The Governor’s proposed budget for fiscal year 2023 shall include a 4 
3.25% rate increase for community providers over the funding provided in the legislative 5 
appropriation for the immediately preceding fiscal year for each of the following: 6 
 
 (i) Object 08 Contractual Services in Program M00Q01.10 Medicaid 7 
Behavioral Health Provider Reimbursement – Medical Care Programs Administration; 8 
 
 (ii) Object 08 Contractual Services in Program M00L01.02 9 
Community Services – Behavioral Health Administration; and 10 
 
 (iii) Object 08 Contractual Services in Program M00L01.03 11 
Community Services for Medicaid State Fund Recipients – Behavioral Health 12 
Administration. 13 
 
 (5) The Governor’s proposed budget for fiscal year 2024 shall include a 3% 14 
rate increase for community providers over the funding provided in the legislative 15 
appropriation for the immediately preceding fiscal year for each of the following: 16 
 
 (i) Object 08 Contractual Services in Program M00Q01.10 Medicaid 17 
Behavioral Health Provider Reimbursement – Medical Care Programs Administration; 18 
 
 (ii) Object 08 Contractual Services in Program M00L01.02 19 
Community Services – Behavioral Health Administration; and 20 
 
 (iii) Object 08 Contractual Services in Program M00L01.03 21 
Community Services for Medicaid State Fund Recipients – Behavioral Health 22 
Administration. 23 
 
 (6) [The Governor’s proposed budget for fiscal year 2025 shall include a 4% 24 
rate increase for community providers over the funding provided in the legislative 25 
appropriation for the immediately preceding fiscal year for each of the following: 26 
 
 (i) Object 08 Contractual Services in Program M00Q01.10 Medicaid 27 
Behavioral Health Provider Reimbursement – Medical Care Programs Administration; 28 
 
 (ii) Object 08 Contractual Services in Program M00L01.02 29 
Community Services – Behavioral Health Administration; and 30 
 
 (iii) Object 08 Contractual Services in Program M00L01.03 31 
Community Services for Medicaid State Fund Recipients – Behavioral Health 32 
Administration. 33 
  6 	SENATE BILL 555  
 
 
 (7) The Governor’s proposed budget for fiscal year 2026 shall include a 4% 1 
rate increase for community providers over the funding provided in the legislative 2 
appropriation for the immediately preceding fiscal year for each of the following: 3 
 
 (i) Object 08 Contractual Services in Program M00Q01.10 Medicaid 4 
Behavioral Health Provider Reimbursement – Medical Care Programs Administration; 5 
 
 (ii) Object 08 Contractual Services in Program M00L01.02 6 
Community Services – Behavioral Health Administration; and 7 
 
 (iii) Object 08 Contractual Services in Program M00L01.03 8 
Community Services for Medicaid State Fund Recipients – Behavioral Health 9 
Administration. 10 
 
 (8)] The Governor’s proposed budget for fiscal year 2019 and each fiscal year 11 
thereafter for community providers shall be presented in the same manner, including object 12 
and program information, as in the fiscal year 2018 budget. 13 
 
 (e) (1) The Behavioral Health Administration and the Medical Care Programs 14 
Administration jointly shall: 15 
 
 (i) Conduct an independent cost–driven, rate–setting study to set 16 
community provider rates for community–based behavioral health services that includes a 17 
rate analysis and an impact study that considers the actual cost of providing 18 
community–based behavioral health services; 19 
 
 (ii) Develop and implement a payment system incorporating the 20 
findings of the rate–setting study conducted under item (i) of this paragraph, including 21 
projected costs of implementation and recommendations to address any potential shortfall 22 
in funding; and 23 
 
 (iii) Consult with stakeholders, including community providers and 24 
individuals receiving services, in conducting the rate–setting study and developing the 25 
payment system required by this paragraph. 26 
 
 (2) The Administration, on or before September 30, 2019, shall complete 27 
the study required under paragraph (1)(i) of this subsection. 28 
 
 (3) The Administration shall adopt regulations to implement the payment 29 
system required by paragraph (1) of this subsection. 30 
 
 (f) If services of community providers are provided through managed care 31 
organizations, the managed care organizations shall: 32 
 
 (1) Pay the rate in effect during the immediately preceding fiscal year for 33 
the first fiscal year the managed care organizations provide the services; and 34 
   	SENATE BILL 555 	7 
 
 
 (2) Adjust the rate for community providers each fiscal year by at least the 1 
same amount that otherwise would have been required under subsection (d) of this section. 2 
 
 (g) Increased funding provided under subsection (d) of this section may be used 3 
only to increase the rates paid to: 4 
 
 (1) Community providers accredited by a State–approved accrediting body 5 
and licensed by the State; and 6 
 
 (2) Health care providers who are acting within the scopes of practice of 7 
the health care providers’ licenses or certificates as specified under the Health Occupations 8 
Article. 9 
 
 (h) (1) On or before December 1, 2018, the Department shall submit an interim 10 
report to the Governor and, in accordance with § 2–1257 of the State Government Article, 11 
the General Assembly on the delivery system through which community–based behavioral 12 
health services should be provided and any preliminary recommendations regarding the 13 
payment system required under this section. 14 
 
 (2) On or before December 1, 2019, and on or before December 1 each year 15 
thereafter, the Department shall submit a report to the Governor and, in accordance with 16 
§ 2–1257 of the State Government Article, the General Assembly on the impact of the rate 17 
adjustments and the payment system required under this section on community providers, 18 
including the impact on: 19 
 
 (i) The wages and salaries paid and the benefits provided to direct 20 
care staff and licensed clinicians employed by community providers; 21 
 
 (ii) The tenure and turnover of direct care staff and licensed 22 
clinicians employed by community providers; and 23 
 
 (iii) The ability of community providers to recruit qualified direct 24 
care staff and licensed clinicians. 25 
 
 (3) The Department may require a community provider to submit, in the 26 
form and manner required by the Department, information that the Department considers 27 
necessary for completion of the report required under paragraph (2) of this subsection. 28 
 
16–201.4. 29 
 
 (a) (1) In this section the following words have the meanings indicated. 30 
 
 (2) “Provider” means a provider of: 31 
 
 (i) Nursing home services; 32 
 
 (ii) Medical day care services; 33  8 	SENATE BILL 555  
 
 
 
 (iii) Private duty nursing services; 1 
 
 (iv) Personal care services; 2 
 
 (v) Home– and community–based services; and 3 
 
 (vi) Services provided through the Community First Choice program. 4 
 
 (3) “Rate” means the reimbursement rate paid by the Department to 5 
providers of nursing home, medical day care, private duty nursing, personal care, and 6 
home– and community–based services and services provided through the Community First 7 
Choice program from the State General Fund, Maryland Medical Assistance Program 8 
funds, other State or federal funds, or a combination of these funds. 9 
 
 (b) (1) The Governor’s proposed budget for fiscal year 2021 shall include a 4% 10 
rate increase for providers over the funding provided in the legislative appropriation for 11 
the immediately preceding fiscal year in Program M00Q01.03 Medical Care Provider 12 
Reimbursements – Medical Care Programs Administration and Program M00Q01.07 13 
Maryland Children’s Health Program – Medical Care Programs Administration. 14 
 
 (2) The Governor’s proposed budget for fiscal year 2022 shall include a 4% 15 
rate increase for providers over the funding provided in the legislative appropriation for 16 
the immediately preceding fiscal year in Program M00Q01.03 Medical Care Provider 17 
Reimbursements – Medical Care Programs Administration and Program M00Q01.07 18 
Maryland Children’s Health Program – Medical Care Programs Administration. 19 
 
 (3) The Governor’s proposed budget for fiscal year 2023 shall include a 4% 20 
rate increase for providers over the funding provided in the legislative appropriation for 21 
the immediately preceding fiscal year in Program M00Q01.03 Medical Care Provider 22 
Reimbursements – Medical Care Programs Administration and Program M00Q01.07 23 
Maryland Children’s Health Program – Medical Care Programs Administration. 24 
 
 (4) The Governor’s proposed budget for fiscal year 2024 shall include a 4% 25 
rate increase for providers over the funding provided in the legislative appropriation for 26 
the immediately preceding fiscal year in Program M00Q01.03 Medical Care Provider 27 
Reimbursements – Medical Care Programs Administration and Program M00Q01.07 28 
Maryland Children’s Health Program – Medical Care Programs Administration. 29 
 
 (5) [The Governor’s proposed budget for fiscal year 2025 shall include a 4% 30 
rate increase for providers over the funding provided in the legislative appropriation for 31 
the immediately preceding fiscal year in Program M00Q01.03 Medical Care Provider 32 
Reimbursements – Medical Care Programs Administration and Program M00Q01.07 33 
Maryland Children’s Health Program – Medical Care Programs Administration. 34 
 
 (6) The Governor’s proposed budget for fiscal year 2026 shall include a 4% 35 
rate increase for providers over the funding provided in the legislative appropriation for 36   	SENATE BILL 555 	9 
 
 
the immediately preceding fiscal year in Program M00Q01.03 Medical Care Provider 1 
Reimbursements – Medical Care Programs Administration and Program M00Q01.07 2 
Maryland Children’s Health Program – Medical Care Programs Administration. 3 
 
 (7)] The Governor’s proposed budget for fiscal year 2021 and each fiscal year 4 
thereafter shall be presented in the same manner, including object and program 5 
information, as in the fiscal year 2020 budget. 6 
 
Article – Labor and Employment 7 
 
3–413. 8 
 
 (a) (1) In this section the following words have the meanings indicated. 9 
 
 (2) “CONSUMER PRICE INDEX” MEANS THE CONSUMER PRICE INDEX 10 
FOR ALL URBAN CONSUMERS FOR THE WASHINGTON–ARLINGTON–ALEXANDRIA, 11 
DC–VA–MD–WV METROPOLITAN AREA OR A SUCCESSOR METROPOL ITAN AREA 12 
INDEX PUBLISHED BY THE FEDERAL BUREAU OF LABOR STATISTICS.  13 
 
 (3) (2)  “Employer” includes a governmental unit. 14 
 
 [(3)] (4) “Small employer” means an employer that employs 14 or fewer 15 
employees. 16 
 
 (b) Except as provided in subsection (d) of this section and §§ 3–413.1 and 3–414 17 
of this subtitle, each employer shall pay: 18 
 
 (1) to each employee who is subject to both the federal Act and this subtitle, 19 
at least the greater of: 20 
 
 (i) the minimum wage for that employee under the federal Act; or 21 
 
 (ii) the State minimum wage set under subsection (c) of this section; 22 
and 23 
 
 (2) to each other employee who is subject to this subtitle, at least the 24 
greater of:  25 
 
 (i) the highest minimum wage under the federal Act; or 26 
 
 (ii) the State minimum wage set under subsection (c) of this section. 27 
 
 (c) (1) Subject to § 3–413.1 of this subtitle and except as provided in paragraph 28 
(2) of this subsection, the State minimum wage rate is: 29 
 
 (i) [for the 12–month period beginning July 1, 2017, $9.25 per hour; 30  10 	SENATE BILL 555  
 
 
 
 (ii) for the 18–month period beginning July 1, 2018, $10.10 per hour; 1 
 
 (iii) for the 12–month period beginning January 1, 2020, $11.00 per 2 
hour; 3 
 
 (iv) for the 12–month period beginning January 1, 2021, $11.75 per 4 
hour;  5 
 
 (v) for the 12–month period beginning January 1, 2022, $12.50 per 6 
hour;  7 
 
 (vi)] for the [12 month] 9–MONTH period beginning January 1, 2023, 8 
$13.25 per hour; AND 9 
 
 [(vii) for the 12–month period beginning January 1, 2024, $14.00 per 10 
hour; and 11 
 
 (viii)] (II) FOR THE 21–MONTH PERIOD beginning [January 1, 12 
2025] OCTOBER 1, 2023 JANUARY 1, 2024, $15.00 per hour; AND 13 
 
 (III) FOR THE 12–MONTH PERIOD BEGINNI NG JULY 1, 2025, AND 14 
EACH SUBSEQUENT 12–MONTH PERIOD , THE RATE DETERMINED BY THE 15 
COMMISSIONER UNDER PA RAGRAPH (2)(II) OF THIS SUBSECTION . 16 
 
 (2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (III) OF THIS 17 
PARAGRAPH , FOR THE 12–MONTH PERIOD BEGINNI NG JULY 1, 2025, AND EACH 18 
SUBSEQUENT 12–MONTH PERIOD , THE STATE MINIMUM WAGE RA TE SHALL BE 19 
INCREASED BY THE AMO UNT, ROUNDED TO THE NEARE ST 5 CENTS, THAT EQUALS 20 
THE PRODUCT OF : 21 
 
 1. THE STATE MINIMUM WAGE RA TE IN EFFECT FOR THE 22 
IMMEDIATELY PRECEDIN G 12–MONTH PERIOD ; AND 23 
 
 2. THE LESSER OF: 24 
 
 A. THE AVERAGE PERCENTA GE GROWTH IN THE 25 
CONSUMER PRICE INDEX FOR THE IMMEDIA TELY PRECEDING 12–MONTH PERIOD , 26 
AS DETERMINED BY THE COMMISSIONER UNDER SU BPARAGRAPH (II)1 OF THIS 27 
PARAGRAPH ; OR 28 
 
 B. 5%. 29 
 
 (II) BEGINNING MARCH 1, 2025, AND EACH MARCH 1 30 
THEREAFTER , THE COMMISSIONER SHALL DE TERMINE AND ANNOUNCE : 31   	SENATE BILL 555 	11 
 
 
 
 1. THE AVERAGE PERCENTA GE GROWTH, IF ANY, IN THE 1 
CONSUMER PRICE INDEX BASED ON THE IM MEDIATELY PRECEDING 12–MONTH 2 
PERIOD FOR WHICH DAT A ARE AVAILABLE ON MARCH 1; AND 3 
 
 2. THE STATE MINIMUM WAGE RA TE EFFECTIVE FOR 4 
THE 12–MONTH PERIOD BEGINNI NG THE FOLLOWING JULY 1. 5 
 
 (III) IF THE COMMISSIONER DETERMI NES THAT THERE IS A 6 
DECLINE OR NO GROWTH IN THE CONSUMER PRICE INDEX, THE STATE MINIMUM 7 
WAGE RATE SHALL REMA IN THE SAME AS THE R ATE THAT WAS IN EFFE CT FOR THE 8 
IMMEDIATELY PRECEDIN G 12–MONTH PERIOD . 9 
 
 [(2)] (3) Subject to § 3–413.1 of this subtitle, the State minimum wage 10 
rate for a small employer is: 11 
 
 (i) [for the 18–month period beginning July 1, 2018, $10.10 per 12 
hour;  13 
 
 (ii) for the 12–month period beginning January 1, 2020, $11.00 per 14 
hour;  15 
 
 (iii) for the 12–month period beginning January 1, 2021, $11.60 per 16 
hour;  17 
 
 (iv) for the 12–month period beginning January 1, 2022, $12.20 per 18 
hour; 19 
 
 (v)] for the [12–month] 9–MONTH period beginning January 1, 2023, 20 
$12.80 per hour; AND 21 
 
 [(vi) for the 12–month period beginning January 1, 2024, $13.40 per 22 
hour; 23 
 
 (vii) for the 12–month period beginning January 1, 2025, $14.00 per 24 
hour;  25 
 
 (viii) for the 6–month period beginning January 1, 2026, $14.60 per 26 
hour; and  27 
 
 (ix)] (II) FOR THE 21–MONTH PERIOD beginning [July 1, 2026] 28 
OCTOBER 1, 2023 JANUARY 1, 2024, $15.00 per hour; AND 29 
  12 	SENATE BILL 555  
 
 
 (III) FOR THE 12–MONTH PERIOD BEGINNI NG JULY 1, 2025, AND 1 
EACH SUBSEQUENT 12–MONTH PERIOD , EQUIVALENT TO THE STATE MINIMUM 2 
WAGE RATE UNDER PARA GRAPH (1)(III) OF THIS SUBSECTION . 3 
 
 (d) An employer may pay an employee a wage that equals a rate of 85% of the 4 
State minimum wage established under this section if the employee is under the age of 18 5 
years. 6 
 
3–413.1. 7 
 
 (a) In this section, “Board” means the Board of Public Works. 8 
 
 (b) [(1)] Subject to subsection (d) of this section [and except as provided in 9 
paragraph (2) of this subsection], on or before [October 1, 2020] MARCH 1, 2025, and 10 
[October] MARCH 1 each year thereafter [until October 1, 2024], the Board shall 11 
determine whether the seasonally adjusted total employment from the Current 12 
Employment Statistics series as reported by the U.S. Bureau of Labor Statistics for the 13 
most recent 6–month period is negative as compared with the immediately preceding  14 
6–month period. 15 
 
 [(2) The Board is not required to make a determination under paragraph 16 
(1) of this subsection if the Board has previously temporarily suspended an increase to the 17 
minimum wage rate specified under § 3–413(c) of this subtitle.] 18 
 
 (c) (1) Subject to subsection (d) of this section, the Board may temporarily 19 
suspend an increase to the minimum wage rate specified under § 3–413(c) of this subtitle 20 
if the Board determined under subsection [(b)(1)] (B) of this section that the seasonally 21 
adjusted total employment is negative. 22 
 
 (2) If the seasonally adjusted total employment is negative, the Board may 23 
consider the performance of State revenues in the previous 6 months, as reported by the 24 
Office of the Comptroller, in determining whether to temporarily suspend an increase to 25 
the minimum wage rate specified under § 3–413(c) of this subtitle. 26 
 
 (d) [The Board may temporarily suspend an increase to the minimum wage rate 27 
under subsection (c)(1) of this section only one time. 28 
 
 (e)] If the Board temporarily suspends an increase to the minimum wage rate 29 
specified under § 3–413(c) of this subtitle: 30 
 
 (1) the minimum wage rate in effect for the period beginning the following 31 
[January] JULY 1 shall remain the same as the rate that was in effect for the immediately 32 
preceding 12–month period;  33 
 
 (2) the remaining minimum wage rates specified in § 3–413 of this subtitle 34 
shall take effect 1 year later than the date specified; AND 35   	SENATE BILL 555 	13 
 
 
 
 (3) the Board shall notify the Commissioner that the minimum wage rate 1 
increase for the period beginning the following [January] JULY 1 is suspended for 1 year[; 2 
and 3 
 
 (4) a rate increase under §§ 7–307, 16–201.3, and 16–201.4 of the Health – 4 
General Article for the immediately following fiscal year may not go into effect]. 5 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6 
1, 2023.  7 
 
 
 
 
Approved: 
________________________________________________________________________________  
 Governor. 
________________________________________________________________________________  
         President of the Senate. 
________________________________________________________________________________  
  Speaker of the House of Delegates.