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<article heading="Article VI. Contract Administration.">
  <section heading="Sec. 11B-27. Performance and payment security.">
    <paragraph indent="1">(a)   The Director may require a contractor to provide performance and payment security in an amount determined by the Director.  Performance security guarantees performance of the contract.  Payment security guarantees payment for all labor and materials, including leased equipment, provided to the contractor for the performance of work under the contract.</paragraph>
    <paragraph indent="1">(b)   In a construction contract, the Director must require performance and payment security in an amount at least equal to that required by State law.</paragraph>
    <paragraph indent="1">(c)   Performance and payment security must be:</paragraph>
    <paragraph indent="2">(1)   a bond provided by a surety company authorized to do business in this State;</paragraph>
    <paragraph indent="2">(2)   cash; or</paragraph>
    <paragraph indent="2">(3)   other security satisfactory to the County.</paragraph>
  </section>
  <section heading="Sec. 11B-28. Plant inspection.">
    <paragraph indent="1">The County may, at reasonable times, inspect the part of a plant, place of business, or place where the services are performed of a potential contractor, contractor, or any subcontractor which is related to the performance of any contract awarded or to be awarded by the County.</paragraph>
  </section>
  <section heading="Sec. 11B-29. Inspection and testing of supplies and services.">
    <paragraph indent="1">The County may inspect supplies and services at the contractor or subcontractor's facility and perform tests to determine whether they conform to solicitation requirements, or, after award, to contract requirements, and are therefore acceptable.  The inspections and tests must be conducted under the terms of the solicitation and contract.</paragraph>
  </section>
  <section heading="Sec. 11B-30. Audit of records.">
    <paragraph indent="1">(a)   Audit of cost or pricing data. The County may, at reasonable times and places, audit the books and records of any person who has submitted cost or pricing data under Section 11B-26 (Cost or Pricing Data) to the extent that the books and records relate to the cost or pricing data.  Any person who submits cost and pricing data must maintain the books and records that relate to the cost or pricing data for 3 years from the date of final payment under the contract, unless a shorter period is authorized by contract.</paragraph>
    <paragraph indent="1">(b)   Contract audit. The County may audit the books and records of a contractor or any subcontractor under any contract to the extent that the books and records relate to the performance of the contract.  The books and records must be maintained by the contractor for a period of 3 years from the date of final payment under the prime contract and by the subcontractor for a period of 3 years from the date of final payment under the subcontract, unless a shorter period is authorized by contract.</paragraph>
  </section>
  <section heading="Sec. 11B-31. Procurement records.">
    <paragraph indent="1">All procurement records must be retained and disposed of under records retention guidelines and schedules in regulations.</paragraph>
  </section>
  <section heading="Sec. 11B-32. Record of procurement actions.">
    <paragraph indent="1">(a)   Actions covered. The Director must maintain a record for 5 years of any:</paragraph>
    <paragraph indent="2">(1)   non-competitive contract award (Section 11B-14);</paragraph>
    <paragraph indent="2">(2)   emergency procurement (Section 11B-16);</paragraph>
    <paragraph indent="2">(3)   contract modification exceeding $25,000;</paragraph>
    <paragraph indent="2">(4)   public entity contract (Section 11B-41); or</paragraph>
    <paragraph indent="2">(5)   bridge contract (Section 11B-42).</paragraph>
    <paragraph indent="1">(b)   Contents of record. The record must include:</paragraph>
    <paragraph indent="2">(1)   each contractor's name;</paragraph>
    <paragraph indent="2">(2)   the amount of each contract or contract modification; and</paragraph>
    <paragraph indent="2">(3)   a listing of the goods, services, or construction procured under each contract or each contract modification.</paragraph>
    <paragraph indent="1">(c)   Submission to County Council. A copy of the record required under this Section for the preceding fiscal year must be submitted to the Council by September 30 of each year.</paragraph>
  </section>
  <section heading="Sec. 11B-33. Nondiscrimination in employment.">
    <paragraph indent="1">(a)   Each contractor and subcontractor must comply with the requirements of Chapter 27, and all federal civil rights requirements prohibiting discrimination in employment. Contractors must take affirmative action to ensure that all persons are treated in accordance with the provisions of Chapter 27.</paragraph>
    <paragraph indent="1">(b)   In the event of a noncompliance by a contractor or subcontractor with the nondiscrimination requirements, the contract or subcontract may be canceled, terminated, or suspended in whole or in part and the contractor or subcontractor may be declared ineligible for further County contracts.  Other sanctions may be imposed and remedies invoked as provided in regulations or by contract.  Contractors are required to bind their subcontractors contractually to the provisions of this Section.</paragraph>
  </section>
  <section heading="Sec. 11B-33A. Wage requirements.">
    <paragraph indent="1">(a)   Scope. Any contract for procurement of services by a County department or office must require the contractor and any subcontractor to comply with the wage requirements of this Section.  As used in this Section, “covered employer” refers to any contractor or subcontractor that is subject to this Section.</paragraph>
    <paragraph indent="1">(b)   Exceptions to coverage.  This Section does not apply to:</paragraph>
    <paragraph indent="2">(1)   a contractor who, at the time a contract is signed:</paragraph>
    <paragraph indent="3">(A)   has received less than $50,000 from the County in the most recent 12-month period; and</paragraph>
    <paragraph indent="3">(B)   will be entitled to receive less than $50,000 from the County under that contract in the next 12-month period;</paragraph>
    <paragraph indent="2">(2)   a contract with a public entity;</paragraph>
    <paragraph indent="2">(3)   a contract with a nonprofit organization that has qualified for an exemption from federal income taxes under Section 501(c)(3) of the Internal Revenue Code;</paragraph>
    <paragraph indent="2">(4)   a non-competitive contract awarded under Section 11B-14 if the Chief Administrative Officer finds that the performance of the contract would be significantly impaired if the wage requirements of this Section applied;</paragraph>
    <paragraph indent="2">(5)   a contract for electricity, telephone, cable television, water, sewer, or similar service delivered by a regulated public utility;</paragraph>
    <paragraph indent="2">(6)   a contract for services needed immediately to prevent or respond to an imminent threat to public health or safety;</paragraph>
    <paragraph indent="2">(7)   an employer to the extent that the employer is expressly precluded from complying with this Section by the terms of any federal or state law, contract, or grant;</paragraph>
    <paragraph indent="2">(8)   a bridge contract entered into under Section 11B-42; or</paragraph>
    <paragraph indent="2">(9)   a contract entered into under a cooperative procurement under Section 11B-40.</paragraph>
    <paragraph indent="0">The Executive by regulation may increase the amount in subsection (b)(1) to reflect increases in the cost of living.</paragraph>
    <paragraph indent="1">(c)   Solicitation requirements.</paragraph>
    <paragraph indent="2">(1)   Each bid or proposal to provide services to the County must specify how the contractor and each subcontractor will comply with these wage requirements, and must include sufficient funds to meet these requirements. The Director, for good cause shown, may permit a bidder or proposer to provide this information after the bid or proposal is submitted if:</paragraph>
    <paragraph indent="3">(A)   the information is provided before the time for evaluation of the bid or proposal and no later than contract award;</paragraph>
    <paragraph indent="3">(B)   the original bid or proposal price does not change; and</paragraph>
    <paragraph indent="3">(C)   the Director approves the later submission in writing.</paragraph>
    <paragraph indent="2">(2)   Each bid or proposal to provide services to the County which is submitted by an organization that is exempt from coverage under subsection (b)(3) must specify the wage the organization intends to pay to those employees who will perform direct, measurable work under the contract, and any health insurance the organization intends to provide to those employees.  In evaluating the cost of a bid or proposal the County must disregard any additional cost attributable to payment of the wage requirements of this Section by any organization that is exempt from coverage under subsection (b)(3) when compared to a bid or proposal submitted by another organization that is also exempt from coverage under subsection (b)(3).</paragraph>
    <paragraph indent="2">(3)   A contractor must not split or subdivide a contract, pay an employee through a third party, or treat an employee as a subcontractor or independent contractor, to avoid the imposition of any requirement under this Section.</paragraph>
    <paragraph indent="1">(d)   Health insurance.</paragraph>
    <paragraph indent="2">(1)   Definitions.  As used in this subsection;</paragraph>
    <paragraph indent="0">Health insurance means insurance coverage that is part of an employer benefit package that pays for medical expenses incurred by an employee and an employee’s family either by reimbursing the employee or by paying the care provider directly and provides the minimum essential health benefits required under the Patient Protection and Affordable Care Act, 26 U.S.C. §5000A, as amended.</paragraph>
    <paragraph indent="0">Maryland Health Benefit Exchange means the public corporation and independent unit of Maryland State government established in Title 31 of the Maryland Insurance Code.</paragraph>
    <paragraph indent="2">(2)   A contractor or subcontractor who does not provide health insurance for an employee who provides services to the County must:</paragraph>
    <paragraph indent="3">(A)   report to the Director the job title and salary for each employee providing services to the County under the contract who does not have health insurance without identifying confidential medical information; and</paragraph>
    <paragraph indent="3">(B)   permit each employee without health insurance to meet with a County representative designated by the Director of Health and Human Services during normal work hours to receive help applying for health insurance on the Maryland Health Benefit Exchange, including any available Federal tax subsidy.</paragraph>
    <paragraph indent="2">(3)   The Director of the Department of Health and Human Services or a designee must assist any employee of a contractor or subcontractor without health insurance who requests help to apply for health insurance on the Maryland Health Benefit Exchange, including any available Federal tax subsidy.</paragraph>
    <paragraph indent="2">(4)   Each contractor must submit a quarterly payroll report to the Chief Administrative Officer for each employee of the contractor or any subcontractor who performed services on the contract that includes:</paragraph>
    <paragraph indent="3">(A)   the wages paid to the employee; and</paragraph>
    <paragraph indent="3">(B)   the employer and the employee share of any health insurance premium provided to the employee.</paragraph>
    <paragraph indent="2">(5)   The Director must retain the quarterly payroll reports submitted by the contractor under paragraph (4) for at least 3 years after the completion of the contract. On or before each September 1, the Director must report to the Executive and the Council the number of employees of a contractor or subcontractor who provided services to the County during the previous fiscal year who had health insurance and the number of employees who did not have health insurance.</paragraph>
    <paragraph indent="1">(e)   Wage requirement.</paragraph>
    <paragraph indent="2">(1)   Each covered employer must pay each employee who is not exempt under subsection (f) a gross wage of at least $10.50 per hour during the time the employee actually provides services to the County. For employees who are not paid an hourly wage, compliance with the wage requirement must be measured by dividing the amount paid to the employee each pay period by the number of hours worked each pay period.</paragraph>
    <paragraph indent="2">(2)   The Chief Administrative Officer must adjust the wage rate required under this subsection, effective July 1 of each year, by the annual average increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U) for the Washington-Arlington-Alexandria Core Based Statistical Area (CBSA), as published by the United States Department of Labor, Bureau of Labor Statistics, or any successor index, for the previous calendar year.  The Chief Administrative Officer must calculate the adjustment to the nearest multiple of 5 cents, and must publish the amount of this adjustment not later than March 1 of each year.  Each adjustment under this paragraph applies to any contract covered by this Section which:</paragraph>
    <paragraph indent="3">(A)   is in effect when the adjustment takes effect, or</paragraph>
    <paragraph indent="3">(B)   takes effect during the next 12 months.</paragraph>
    <paragraph indent="2">(3)   A covered employer must not make any deduction for any item necessary for an employee to perform the essential job function unless the deduction is permitted by Executive regulation.</paragraph>
    <paragraph indent="1">(f)   Exceptions to wage requirement.  The wage requirements of this Section do not apply to any employee:</paragraph>
    <paragraph indent="2">(1)   who performs no measurable work related to any contract with the County;</paragraph>
    <paragraph indent="2">(2)   who participates in a government-operated or -sponsored program that restricts the earnings of or wages paid to employees to a level below the wage required under this Section; or</paragraph>
    <paragraph indent="2">(3)   who participates for no longer than 120 days in any calendar year in a government-operated or -sponsored summer youth employment program.</paragraph>
    <paragraph indent="1">(g)   Wage reporting.</paragraph>
    <paragraph indent="2">(1)   The Director must insert into each contract subject to this Section a provision that requires a covered employer to submit to the Director a report (on a schedule determined by the Director) showing a summary of the wages paid to its employees, who performed direct, measurable work under the contract, by gender and race.</paragraph>
    <paragraph indent="2">(2)   Each contractor and subcontractor must submit a complete copy of its payroll records for work performed on a contract covered by this Section to the Chief Administrative Officer or a designee within 14 days after the end of each quarter.</paragraph>
    <paragraph indent="2">(3)   The payroll records must contain a statement signed by the contractor or subcontractor certifying that:</paragraph>
    <paragraph indent="3">(A)   the payroll records are correct; and</paragraph>
    <paragraph indent="3">(B)   the wage rates paid are not less than those required by this Section.</paragraph>
    <paragraph indent="2">(4)   Each payroll record must include:</paragraph>
    <paragraph indent="3">(A)   the name, address, and telephone number of the contractor or subcontractor;</paragraph>
    <paragraph indent="3">(B)   the name and location of the job; and</paragraph>
    <paragraph indent="3">(C)   each employee’s:</paragraph>
    <paragraph indent="4">(i)   name;</paragraph>
    <paragraph indent="4">(ii)   current home address, unless previously reported;</paragraph>
    <paragraph indent="4">(iii)   daily straight time and overtime hours;</paragraph>
    <paragraph indent="4">(iv)   total straight time and overtime hours for the payroll period;</paragraph>
    <paragraph indent="4">(v)   rate of pay;</paragraph>
    <paragraph indent="4">(vi)   fringe benefits by type and amount;</paragraph>
    <paragraph indent="4">(vii)   gross wages; and</paragraph>
    <paragraph indent="4">(viii)   the employer and the employee share of any health insurance premium provided to the employee.</paragraph>
    <paragraph indent="2">(5)   Each contractor or subcontractor must:</paragraph>
    <paragraph indent="3">(A)   keep payroll records covering work performed on a contract covered by this Section for not less than 5 years after the work is completed; and</paragraph>
    <paragraph indent="3">(B)   subject to reasonable notice, permit the Chief Administrative Officer or a designee to inspect the payroll records at any reasonable time and as often as the Chief Administrative Officer deems necessary.</paragraph>
    <paragraph indent="2">(6)   The Chief Administrative Officer or a designee must make payroll records obtained from contractors or subcontractors under this Section available for public inspection during regular business hours for 5 years after the Chief Administrative Officer receives the records, unless disclosure of a record is prohibited under federal or state law.</paragraph>
    <paragraph indent="2">(7)   Prohibition against retaliation. Except as provided in paragraph (8), a covered employer must not discharge or in any other manner discriminate or retaliate against an employee, who performed direct, measurable work under the contract, because the employee:</paragraph>
    <paragraph indent="3">(A)   has inquired about, discussed, or disclosed the wages of the employee or another employee;</paragraph>
    <paragraph indent="3">(B)   asserts any right under this subsection; or</paragraph>
    <paragraph indent="3">(C)   files any complaint for violation of this subsection.</paragraph>
    <paragraph indent="2">(8)   The prohibition against retaliation under paragraph (7) does not apply to an employee who has access to wage information of other employees or applicants as part of the employee’s essential job functions and discloses the wages of other employees or applicants to individuals who do not otherwise have access to the information, unless the disclosure is in response to:</paragraph>
    <paragraph indent="3">(A)   a formal complaint or charge;</paragraph>
    <paragraph indent="3">(B)   in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by a covered employer; or</paragraph>
    <paragraph indent="3">(C)   is consistent with the contractor’s legal duty to furnish information.</paragraph>
    <paragraph indent="2">(9)   The Director may refer a report to the Office of Human Rights for investigation of a possible violation of Chapter 27, Human Rights and Civil Liberties.</paragraph>
    <paragraph indent="2">(10)   On or before December 31, 2019, the Director must submit to the County Executive and the County Council a report on the evaluation of the wage data submitted by contractors and subcontractors under paragraph (1). This report must include:</paragraph>
    <paragraph indent="3">(A)   the number of reports reviewed;</paragraph>
    <paragraph indent="3">(B)   the number of reports referred to the Office of Human Rights for investigation;</paragraph>
    <paragraph indent="3">(C)   the number of probable cause findings by the Office of Human Rights resulting from these reports;</paragraph>
    <paragraph indent="3">(D)   a list of sanctions imposed upon a contractor for a violation of subsection (g); and</paragraph>
    <paragraph indent="3">(E)   any other information the Director finds relevant to evaluate the effect of this reporting requirement on wage equity.</paragraph>
    <paragraph indent="1">(h)   Conflicting requirements.  If any federal, state, or County law or regulation requires payment of a higher wage, that law or regulation controls.  If any applicable collective bargaining agreement requires payment of a higher wage, that agreement controls.</paragraph>
    <paragraph indent="1">(i)   Enforcement.</paragraph>
    <paragraph indent="2">(1)   The Chief Administrative Officer must require each covered employer to:</paragraph>
    <paragraph indent="3">(A)   certify that the employer and each subcontractor is aware of and will comply with the applicable wage requirements of this Section;</paragraph>
    <paragraph indent="3">(B)   keep and submit any records necessary to show compliance; and</paragraph>
    <paragraph indent="3">(C)   conspicuously post notices informing employees of the requirements of this Section, and send a copy of each such notice to the Chief Administrative Officer’s designee.</paragraph>
    <paragraph indent="2">(2)   The Chief Administrative Officer or a designee must perform random or regular audits and investigate any complaint of a violation of this Section. If the Director determines that a provision of this Section has been violated, the Director must issue a written decision, including imposing appropriate sanctions, and may withhold from payment due the contractor, pending a final decision, an amount sufficient to:</paragraph>
    <paragraph indent="3">(A)   pay each employee of the contractor or subcontractor the full amount of wages due under this Section;</paragraph>
    <paragraph indent="3">(B)   satisfy a liability of a contractor for liquidated damages as provided in this Section; and</paragraph>
    <paragraph indent="3">(C)   reimburse the County for the cost of the audit.</paragraph>
    <paragraph indent="2">(3)   An employer must not discharge or otherwise retaliate against an employee for asserting any right under this Section or filing a complaint of violation.  Any retaliation is subject to all sanctions for noncompliance with this Section.</paragraph>
    <paragraph indent="2">(4)   The sanctions of Section 11B-33(b) which apply to noncompliance with nondiscrimination requirements apply with equal force and scope to noncompliance with the wage requirements of this Section.</paragraph>
    <paragraph indent="2">(5)   Each contract may specify that liquidated damages for any noncompliance with this Section includes the amount of any unpaid wages, with interest, and that the contractor is jointly and severally liable for any noncompliance by a subcontractor.  In addition, each contract must specify:</paragraph>
    <paragraph indent="3">(A)   that liquidated damages may be imposed on the contractor in the event that a covered employer violates the wage reporting or payroll records reporting requirement in subsection (g), including for providing late or inaccurate payroll records; and</paragraph>
    <paragraph indent="3">(B)   that an aggrieved employee, as a third-party beneficiary, may by civil action enforce the payment of wages due under this Section and recover any unpaid wages with interest, a reasonable attorney’s fee, and damages for any retaliation for asserting any right under this Section.</paragraph>
    <paragraph indent="2">(6)   If a contractor or subcontractor fails to submit, or is late in submitting, copies of any payroll record or other report required to be submitted under this Section, the County may deem invoices unacceptable until the contractor or subcontractor provides the required records or reports, and may postpone processing payments due under the contract or under an agreement to finance the contract.</paragraph>
    <paragraph indent="1">(j)   Report.</paragraph>
    <paragraph indent="2">The Chief Administrative Officer must report annually to the Council and Executive on the operation of and compliance with this Section.  In addition, the report filed under Section 11B-61(a) each year must compute the number of contracts and subcontracts with minority-owned businesses that are subject to the requirements of this Section, and how that number has changed since the year before those requirements took effect.</paragraph>
    <paragraph indent="1">(a)   apply to any contract in effect on or after the date this Act takes effect; and</paragraph>
    <paragraph indent="1">(b)   are not effective after July 1, 2017.</paragraph>
  </section>
  <section heading="Sec. 11B-33B. Use of County Funds.">
    <paragraph indent="1">(a)   Purpose.  Sound fiscal management requires vigilance to ensure that County funds appropriated for a service contract or a grant award to participate in a County-funded program are expended solely for the public purpose for which they are appropriated.  If County funds are appropriated for a service contract or a grant award to participate in a County-funded program, and those funds are instead used to encourage, discourage, or otherwise influence union activity or organization, the proprietary interests of the County are adversely affected.  The use of County funds to encourage, discourage, or otherwise influence employees from union activity or organizing constitutes a misuse of County resources.</paragraph>
    <paragraph indent="1">(b)   Use of Funds.  County funds appropriated for a service contract or a grant award to participate in a County-funded program must not be encumbered or used to assist, promote, deter, or otherwise influence union activity or organizing.  Nothing in this Section shall be construed to prohibit the expenditure of County funds appropriated for a service contract or a grant award from being used to perform another act required by law.</paragraph>
    <paragraph indent="1">(c)   Specific Restrictions.  County funds for a service contract or a grant award to participate in a County-funded program must not be used to:</paragraph>
    <paragraph indent="2">(1)   prepare, mail, or otherwise distribute materials related to union activity or organizing;</paragraph>
    <paragraph indent="2">(2)   hire an attorney or a consultant to assist, promote, deter, or otherwise influence union activity or organizing;</paragraph>
    <paragraph indent="2">(3)   encourage, discourage, or otherwise influence an employee from taking a position on union organizing in the workplace;</paragraph>
    <paragraph indent="2">(4)   prevent or facilitate access to an employer’s facilities or property by a labor organization or its representatives;</paragraph>
    <paragraph indent="2">(5)   encourage or discourage a program manager, policy council, committee, or community or parent group from assisting or participating in a union activity or organizing.</paragraph>
    <paragraph indent="1">(d)   Enforcement.</paragraph>
    <paragraph indent="2">(1)   The Chief Administrative Officer must require each contractor or grantee to:</paragraph>
    <paragraph indent="3">(A)   Certify that the contractor or grantee will not expend County funds to assist, promote, deter, or otherwise influence union activity or organizing and will comply with the requirements of this Section.</paragraph>
    <paragraph indent="3">(B)   Keep and submit any records associated with County funds received for a service contract or a grant award to participate in a County-program necessary to show compliance.  A contractor or grantee must provide these records to the County upon request.</paragraph>
    <paragraph indent="2">(2)   The Chief Administrative Officer must enforce this Section and investigate any complaint of a violation.</paragraph>
    <paragraph indent="1">(e)   Penalty.  A contractor or grantee must pay the County the amount of funds expended in violation of this Section.</paragraph>
  </section>
  <section heading="Sec. 11B-33C. Prevailing Wage Requirements — Construction Contracts.">
    <paragraph indent="1">(a)   Definitions.  In this Section, the following words have the meanings indicated:</paragraph>
    <paragraph indent="2">Apprentice means an individual who:</paragraph>
    <paragraph indent="2">(1)   is at least 16 years old;</paragraph>
    <paragraph indent="2">(2)   has signed an agreement with an employer or employer’s agent, an association of employers, an organization of employees, or a joint committee, that includes a statement of:</paragraph>
    <paragraph indent="3">(A)   the trade, craft, or occupation that the individual is learning; and</paragraph>
    <paragraph indent="3">(B)   the beginning and ending dates of the apprenticeship; and</paragraph>
    <paragraph indent="2">(3)   is registered in a program of a Council or Bureau of Apprenticeship and Training of the United States Department of Labor.</paragraph>
    <paragraph indent="2">Construction means work defined in Section 11B-1(c).</paragraph>
    <paragraph indent="2">County financed construction contract means a contract for construction work that is awarded by the County or where County funds are used to finance all or part of the cost of the contract. A county financed construction contract includes a construction contract that receives in whole or part a payment in lieu of taxes solely under Section 52-24(b), unless the qualified housing development:</paragraph>
    <paragraph indent="2">(1)   does not exceed four (4) stories above ground level; or</paragraph>
    <paragraph indent="2">(2)   is provided under Section 52-24(c).</paragraph>
    <paragraph indent="2">County funds means any:</paragraph>
    <paragraph indent="2">(1)   funds directly appropriated by the County; or</paragraph>
    <paragraph indent="2">(2)   ggrant funding for construction under Section 20-75 that cumulatively exceeds $250,000 or the prevailing wage threshold limit, whichever is lower.</paragraph>
    <paragraph indent="2">Employee means a laborer, apprentice, journeyman, or mechanic employed by a contractor or subcontractor on a County financed construction contract.</paragraph>
    <paragraph indent="2">Payment in Lieu of Taxes or PILOTs means an authorized payment made by the owner of a qualifying housing development instead of paying the County real property tax, including real property tax levied under a special area taxing law, that would otherwise be due.</paragraph>
    <paragraph indent="2">Prevailing wage means the hourly wage rate set by the State Commissioner of Labor and Industry for State-funded construction contracts in the County.</paragraph>
    <paragraph indent="2">Prevailing wage threshold limit means the minimum dollar amount for a construction contract subject to the State prevailing wage law under §17-202 of the State Finance and Procurement Article of the Maryland Code, as amended.</paragraph>
    <paragraph indent="1">(b)   Exclusions.  Except as provided in subsection (9), this Section does not apply to a County financed construction contract:</paragraph>
    <paragraph indent="2">(1)   of less than $250,000 or the prevailing wage threshold limit, whichever is lower;</paragraph>
    <paragraph indent="2">(2)   that is subject to a Federal or State prevailing wage law;</paragraph>
    <paragraph indent="2">(3)   awarded without competition under Section 11B-14;</paragraph>
    <paragraph indent="2">(4)   with a public entity;</paragraph>
    <paragraph indent="2">(5)   to the extent that the contractor is expressly precluded from complying with this Section by the terms of any Federal or State law, contract, or grant;</paragraph>
    <paragraph indent="2">(6)   entered into as a bridge contract under Section 11B-42;</paragraph>
    <paragraph indent="2">(7)   entered into as a cooperative procurement under Section 11B-40; or</paragraph>
    <paragraph indent="2">(8)   which results from an emergency procurement under Section 11B-16.</paragraph>
    <paragraph indent="2">(9)   This Section applies to a mechanical systems service contract with a contract value in excess of the threshold amount codified at 41 U.S.C. 6702(A)(2), the McNamara-O’Hara Service Contract Act of 1965, as amended.</paragraph>
    <paragraph indent="1">(c)   Payment of prevailing wage.  Any contractor and subcontractor that performs direct and measurable construction work on a County financed construction contract must pay each employee at a rate equal to or more than the prevailing wage in effect when the solicitation is published for the type of work performed.</paragraph>
    <paragraph indent="1">(d)   Prevailing wage.</paragraph>
    <paragraph indent="2">(1)   Basic rate.  The prevailing wage rate is the prevailing wage rate established annually by the Commissioner of Labor and Industry for State financed construction work performed in the County by an employee who performs direct and measurable work.</paragraph>
    <paragraph indent="2">(2)   Overtime rate.  A contractor or subcontractor must pay an employee at a rate equal to or more than the prevailing wage rate for overtime for the type of work performed for each hour that the employee performs direct and measurable work:</paragraph>
    <paragraph indent="3">(A)   more than 10 hours in any single calendar day;</paragraph>
    <paragraph indent="3">(B)   more than 40 hours in a workweek; or</paragraph>
    <paragraph indent="3">(C)   on a Sunday or a legal holiday.</paragraph>
    <paragraph indent="2">(3)   Deductions.  A contractor or subcontractor may only make fair and reasonable deductions that are:</paragraph>
    <paragraph indent="3">(A)   required by law;</paragraph>
    <paragraph indent="3">(B)   authorized in a written agreement between an employee and an employer signed at the beginning of employment that:</paragraph>
    <paragraph indent="4">(i)   concerns food, sleeping quarters, or similar items;</paragraph>
    <paragraph indent="4">(ii)   is submitted by the employer to the Chief Administrative Officer or a designee; or</paragraph>
    <paragraph indent="3">(C)   required or allowed by a collective bargaining agreement between a bona fide labor organization and a contractor or subcontractor.</paragraph>
    <paragraph indent="2">(4)   Apprentices.  Each apprentice must be paid at least the rate that the State’s Apprenticeship and Training Council sets for an apprentice in the trade involved, based on a percentage of the prevailing wage rate in that trade.</paragraph>
    <paragraph indent="1">(e)   Contract requirements.  Each contract covered by this Section must:</paragraph>
    <paragraph indent="2">(1)   require the contractor and subcontractor to comply with this Section;</paragraph>
    <paragraph indent="2">(2)   specify that an aggrieved employee, as a third-party beneficiary, may by civil action recover the difference between the prevailing wage for the type of work performed and the amount actually received, with interest and a reasonable attorney’s fee; and</paragraph>
    <paragraph indent="2">(3)   require best efforts to hire Montgomery County residents for at least 25% of the new jobs to complete the County financed construction contract that exceeds the prevailing wage threshold limit.</paragraph>
    <paragraph indent="2">(4)   For the proper implementation and enforcement necessary to carry out the purposes of this Section, the Director may adopt and amend regulations in accordance with this Section.</paragraph>
    <paragraph indent="1">(f)   Reporting Requirement. For each quarter of the finance construction contract, the contractor must submit a report to the Department, on a form designated by the Director, with the following:</paragraph>
    <paragraph indent="2">(1)   the number of employees needed for the contract;</paragraph>
    <paragraph indent="2">(2)   the number of current employees transferred;</paragraph>
    <paragraph indent="2">(3)   the number of new job openings created;</paragraph>
    <paragraph indent="2">(4)   the number of job openings listed in the department;</paragraph>
    <paragraph indent="2">(5)   describe efforts made to fill the open positions with local County residents;</paragraph>
    <paragraph indent="2">(6)   the total number of Montgomery County residents hired for the reporting period and for new hires:</paragraph>
    <paragraph indent="3">(A)   name;</paragraph>
    <paragraph indent="3">(B)   last four numbers of their social security number;</paragraph>
    <paragraph indent="3">(C)   job title;</paragraph>
    <paragraph indent="3">(D)   address; and</paragraph>
    <paragraph indent="3">(E)   hire date.</paragraph>
    <paragraph indent="1">(g)   Violations.</paragraph>
    <paragraph indent="2">(1)   If the Director determines that a contractor has not made best efforts or reported as required under this section, the Director shall issue a written decision detailing the bases for the determination.</paragraph>
    <paragraph indent="2">(2)   A contractor may appeal a written decision of the Director that the contractor violated a provision of this section to the Department within 10 working days after receiving a copy of the decision.</paragraph>
    <paragraph indent="2">(3)   If the contractor does not appeal the Director’s decision within 10 working days after receipt, the decision of the Director is deemed final and not appealable.</paragraph>
    <paragraph indent="1">(h)   Untimely Reporting. If a contractor is late in submitting reports required to be submitted under this section, the County may postpone payments due under the contract until the required reports are submitted.</paragraph>
    <paragraph indent="1">(i)   Misclassification of employees.</paragraph>
    <paragraph indent="2">(1)   A contractor or subcontractor must not split or subdivide a contract, pay an employee through a third party, or treat an employee as a subcontractor or independent contractor to avoid any requirement of this Section.</paragraph>
    <paragraph indent="2">(2)   A laborer may perform any work that is not ordinarily performed by a mechanic or mechanic’s apprentice, but must be paid the prevailing wage rate for the work performed.</paragraph>
    <paragraph indent="2">(3)   A laborer receiving the prevailing wage rate for laborers must not perform work ordinarily performed by a mechanic or mechanic’s helper.</paragraph>
    <paragraph indent="2">(4)   If a laborer performs work ordinarily performed by any mechanic or mechanic’s apprentice, the laborer must be paid for the entire time of performance of that work at the prevailing wage rate for a mechanic.</paragraph>
    <paragraph indent="1">(j)   Helper and trainee restrictions.  A contractor or subcontractor must not employ any individual classified as a helper or trainee to perform direct and measurable work on a contract covered by this Section.</paragraph>
    <paragraph indent="1">(k)   Posting requirements.  Each contractor and subcontractor must post a clearly legible statement of each prevailing wage rate in a prominent and easily accessible place at the work site during the entire time work is being performed in English and any other language that is primarily spoken by the employees at the work site.</paragraph>
    <paragraph indent="1">(l)   Payroll records.</paragraph>
    <paragraph indent="2">(1)   Each contractor and subcontractor must submit a complete copy of its payroll records for construction work performed on a contract covered by this Section to the Chief Administrative Officer or a designee within 14 days after the end of each payroll period.</paragraph>
    <paragraph indent="2">(2)   The payroll records must contain a statement signed by the contractor or subcontractor certifying that:</paragraph>
    <paragraph indent="3">(A)   the payroll records are correct;</paragraph>
    <paragraph indent="3">(B)   the wage rates paid are not less than those required by this Section; and</paragraph>
    <paragraph indent="3">(C)   the rate of pay and classification for each employee accurately reflects the work the employee performed.</paragraph>
    <paragraph indent="2">(3)   Each payroll record must include:</paragraph>
    <paragraph indent="3">(A)   the name, address, and telephone number of the contractor or subcontractor;</paragraph>
    <paragraph indent="3">(B)   the name and location of the job; and</paragraph>
    <paragraph indent="3">(C)   each employee’s:</paragraph>
    <paragraph indent="4">(i)   name;</paragraph>
    <paragraph indent="4">(ii)   current address, unless previously reported;</paragraph>
    <paragraph indent="4">(iii)   specific work classification;</paragraph>
    <paragraph indent="4">(iv)   daily straight time and overtime hours;</paragraph>
    <paragraph indent="4">(v)   total straight time and overtime hours for the payroll period;</paragraph>
    <paragraph indent="4">(vi)   rate of pay;</paragraph>
    <paragraph indent="4">(vii)   fringe benefits by type and amount; and</paragraph>
    <paragraph indent="4">(viii)   gross wages.</paragraph>
    <paragraph indent="2">(4)   Each contractor or subcontractor must:</paragraph>
    <paragraph indent="3">(A)   keep payroll records covering construction work performed on a contract covered by this Section for not less than 5 years after the work is completed; and</paragraph>
    <paragraph indent="3">(B)   subject to reasonable notice, permit the Chief Administrative Officer or a designee to inspect the payroll records at any reasonable time and as often as necessary.</paragraph>
    <paragraph indent="2">(5)   The Chief Administrative Officer or a designee must make payroll records obtained from contractors or subcontractors under this Section available for public inspection during regular business hours for 5 years after the Chief Administrative Officer receives the records.</paragraph>
    <paragraph indent="1">(m)   Enforcement.</paragraph>
    <paragraph indent="2">(1)   The Chief Administrative Officer or a designee may perform random or regular audits and investigate any complaint of a violation of this Section.  If the Director determines that a provision of this Section has been violated, the Director must issue a written decision, including appropriate sanctions, and may withhold from payment due the contractor, pending a final decision, an amount sufficient to:</paragraph>
    <paragraph indent="3">(i)   pay each employee of the contractor or subcontractor the full amount of wages due under this Section; and</paragraph>
    <paragraph indent="3">(ii)   satisfy a liability of a contractor for liquidated damages as provide in this Section.</paragraph>
    <paragraph indent="2">(2)   A contractor or subcontractor must not discharge or otherwise retaliate against an employee for asserting any right under this Section or for filing a complaint of a violation.</paragraph>
    <paragraph indent="2">(3)   The sanctions of Section 11B-33(b) which apply to noncompliance with nondiscrimination requirements apply with equal force and scope to noncompliance with this Section.</paragraph>
    <paragraph indent="2">(4)   Each contract subject to this Section may specify the payment of liquidated damages to the County by the contractor for any noncompliance with this Section.</paragraph>
    <paragraph indent="2">(5)   Each contractor is jointly and severally liable for noncompliance with this Section by a subcontractor.</paragraph>
    <paragraph indent="2">(6)   If a contractor or subcontractor is late in submitting copies of any payroll record required to be submitted under this Section, the County may deem invoices unacceptable until the contractor or subcontractor provides the required records, and may postpone processing payments due under the contract or under an agreement to finance the contract.</paragraph>
    <paragraph indent="2">(7)   A contractor may appeal a written decision of the Director that the contractor violated a provision of this Section to the Chief Administrative Officer within 10 working days after receiving a copy of the decision.  The Chief Administrative Officer must designate a hearing officer to conduct a hearing under Chapter 2A upon receipt of a timely appeal.  If the contractor does not appeal a written decision within 10 working days after receipt, the decision of the Director becomes final and binding.</paragraph>
    <paragraph indent="1">(n)   Report.  The Chief Administrative Officer must report annually to the Council and Executive on the operation of and compliance with this Section.</paragraph>
  </section>
  <section heading="Sec. 11B-33D. Prohibition Against Human Trafficking.">
    <paragraph indent="1">(a)   Definitions. For purposes of this Section, the following terms have the meanings indicated.</paragraph>
    <paragraph indent="2">Human trafficking has the meanings stated under state and federal law. Human trafficking includes the offenses stated under:</paragraph>
    <paragraph indent="2">(1)   Sections 3-1102 {Sex trafficking} and 3-1202 {Labor trafficking} of the Criminal Law Article of the Maryland Code, as amended; and</paragraph>
    <paragraph indent="2">(2)   Chapter 77 {Peonage, Slavery, and Trafficking in Persons} of Part I of Title 18 of the United States Code, as amended.</paragraph>
    <paragraph indent="1">(b)   Bidding and proposal requirement. Each bid or proposal submitted to the County in response to an invitation for bids or request for proposals must certify that the bidder or offeror has not been found, by an administrative or judicial body, to have violated a federal or state law against human trafficking.</paragraph>
    <paragraph indent="1">(c)   Contractual requirements. A contract valued above the threshold for an invitation for bids or request for proposals must require the contractor and any subcontractor:</paragraph>
    <paragraph indent="2">(1)   to comply with all federal and state laws against human trafficking;</paragraph>
    <paragraph indent="2">(2)   to certify that the contractor has not been found, by an administrative or judicial body, to have violated a federal or state law against human trafficking;</paragraph>
    <paragraph indent="2">(3)   if the contractor or subcontractor is charged with a criminal offense, or subject to a civil claim, involving human trafficking, to notify the Director in writing within 3 days after receiving notification of the charge or claim; and</paragraph>
    <paragraph indent="2">(4)   if the contractor or subcontractor is found by an administrative or judicial body to have violated a law against human trafficking, or to have liability related to human trafficking, to notify the Director in writing within 3 days after receiving notification of the finding.</paragraph>
    <paragraph indent="1">(d)   Enforcement.</paragraph>
    <paragraph indent="2">(1)   Within 3 days after receiving a notification under subsection (c), the Director must transmit a copy of the notification to the Executive and the Council.</paragraph>
    <paragraph indent="2">(2)   If the Director finds that a contractor or subcontractor failed to comply with the requirements of paragraphs (c)(1) and (c)(4) or made a false certification under subsections (b) or (c), the Director must pursue remedies under the terms of the contract and this Chapter, which may include termination of the contract and debarment.</paragraph>
  </section>
  <section heading="Sec. 11B-34. Payment of invoices; interest.">
    <paragraph indent="1">(a)   In this Section, the following terms have the meanings indicated:</paragraph>
    <paragraph indent="2">(1)   contract administrator means the person designated in the contract to accept invoices on behalf of the County for goods, services, or construction provided; and</paragraph>
    <paragraph indent="2">(2)   proper invoice means a written request from a contractor for payment from the County for performance under a contract that:</paragraph>
    <paragraph indent="3">(A)   complies with all documentation requirements under the contract and regulation;</paragraph>
    <paragraph indent="3">(B)   represents work covered by the contract that has been satisfactorily performed, validated, and certified by County representatives; and</paragraph>
    <paragraph indent="3">(C)   identifies the contract number or adequately describes the contract.</paragraph>
    <paragraph indent="1">(b)   It is the policy of the County to make a payment under a contract within 30 days after the day that:</paragraph>
    <paragraph indent="2">(1)   payment becomes due under the contract; or</paragraph>
    <paragraph indent="2">(2)   the County contract administrator receives a proper invoice; whichever is later.</paragraph>
    <paragraph indent="1">(c)</paragraph>
    <paragraph indent="2">(1)</paragraph>
    <paragraph indent="3">(d)   Except as provided in subsection (d), interest accrues at a rate set under Executive Regulations on any amount that:</paragraph>
    <paragraph indent="3">(A)   is due and payable by law and under the contract; and</paragraph>
    <paragraph indent="3">(B)   remains unpaid for more than 45 days after the County contract administrator receives a proper invoice.</paragraph>
    <paragraph indent="2">(2)   Interest accrues beginning on the 31st day after the day that:</paragraph>
    <paragraph indent="3">(A)   payment becomes due under the contract;</paragraph>
    <paragraph indent="3">(B)   the County contract administrator receives a proper invoice; and</paragraph>
    <paragraph indent="3">(C)   the goods and services have been delivered and accepted.</paragraph>
    <paragraph indent="0">However, for a progress payment for construction services, interest accrues on the 31st day after the day subparagraphs (A) and (B) of this paragraph are both met.</paragraph>
    <paragraph indent="1">(d)   The County is not liable for interest:</paragraph>
    <paragraph indent="2">(1)   unless, within 30 days after the date on the County's check for the amount on which the interest accrued, the contractor submits a written request for the interest that identifies the contract number or otherwise adequately identifies the contract;</paragraph>
    <paragraph indent="2">(2)   if the invoice is for work that is:</paragraph>
    <paragraph indent="3">(A)   the subject of a contract claim; or</paragraph>
    <paragraph indent="3">(B)   for a payment that is not made because of a disagreement over the amount of the payment or compliance with the contract;</paragraph>
    <paragraph indent="2">(3)   on an amount that represents unpaid interest;</paragraph>
    <paragraph indent="2">(4)   accruing more than one year after interest may begin to accrue under this Section; or</paragraph>
    <paragraph indent="2">(5)   unless the contractor has included in each subcontract entered into as a result of the contract with the County an obligation for the contractor to pay the subcontractor interest for late payment in an amount and under the same conditions as the County must pay interest for late payment to the contractor.</paragraph>
    <paragraph indent="1">(e)   A dispute over County liability for interest under this Section must be decided by the Chief Administrative Officer.</paragraph>
    <paragraph indent="1">(f)   If, in the discretion of the Chief Administrative Officer, an award of predecisional interest should be made in order to provide a contractor who has substantially prevailed on a contract dispute with a fair remedy, the Chief Administrative Officer may award predecisional interest in the amount specified in subsection (c). Predecisional interest accrues from the 31st day after the contract dispute has been filed with the Chief Administrative Officer in accordance with regulations.</paragraph>
  </section>
  <section heading="Sec. 11B-35. Contract dispute resolution.">
    <paragraph indent="1">(a)    Dispute submitted. A contractor must submit any dispute arising under a contract to the Director.  The using department may submit a dispute arising under the contract to the Director.</paragraph>
    <paragraph indent="1">(b)    Decision by Director. The Director must give the contractor and the using department a written decision approving or denying the dispute in whole or in part within 45 days after receiving the dispute.  If the Director does not resolve the dispute within 45 days, the dispute is denied.</paragraph>
    <paragraph indent="1">(c)    Appeal to Chief Administrative Officer.</paragraph>
    <paragraph indent="2">(1)   The contractor or the using department may appeal the Director's decision resolving a dispute in writing to the Chief Administrative Officer within 30 days after receiving the Director's decision, or if no decision is rendered, within 75 days after submitting the dispute.</paragraph>
    <paragraph indent="2">(2)   The Chief Administrative Officer must decide the appeal after considering any written information submitted by the Director, using department, and the contractor.</paragraph>
    <paragraph indent="2">(3)   The Chief Administrative Officer may hold a hearing on the appeal.  The Chief Administrative Officer must complete any hearing on the appeal within:</paragraph>
    <paragraph indent="3">(A)   60 days after receiving the appeal for disputes involving less than $50,000;</paragraph>
    <paragraph indent="3">(B)   90 days after receiving the appeal for disputes involving between $50,000 and $100,000; and</paragraph>
    <paragraph indent="3">(C)   135 days after receiving the appeal for disputes involving more than $100,000.</paragraph>
    <paragraph indent="2">(4)   The Chief Administrative Officer may require the contractor and the using department to provide additional information about the dispute.</paragraph>
    <paragraph indent="2">(5)   The Chief Administrative Officer must give the contractor and the using department a written decision approving or denying the dispute in whole or in part within 30 days after receiving the appeal or, if a hearing is held, within 30 days after receiving the hearing officer's report.  If the Chief Administrative Officer does not give the contractor and using department a written decision on the appeal within the applicable period, the dispute is denied.</paragraph>
    <paragraph indent="1">(d)    Appeal to court.</paragraph>
    <paragraph indent="2">(1)   The contractor may appeal the Chief Administrative Officer's decision to the Circuit Court under the Maryland Rules.</paragraph>
    <paragraph indent="2">(2)   The contractor or the County may appeal the decision of the Circuit Court to the Court of Special Appeals under State law.</paragraph>
    <paragraph indent="2">(3)   In the event of a statutory denial under subsection (b), the contractor or the County may file a legal action in a court of appropriate jurisdiction.  That court must hear the case de novo.</paragraph>
    <paragraph indent="1">(e)    Consolidation of disputes. The Director or the Chief Administrative Officer may consolidate multiple disputes if:</paragraph>
    <paragraph indent="2">(1)   the disputes have common questions of law or fact; and</paragraph>
    <paragraph indent="2">(2)   the contractor or using department requests consolidation.</paragraph>
    <paragraph indent="2">The time limits in this Section for the last dispute filed apply to any consolidated dispute.</paragraph>
    <paragraph indent="1">(f)    Extension of time. A contractor and the County may agree to extend any time limit in this Section.</paragraph>
    <paragraph indent="1">(g)    Alternative dispute resolution. A contractor and the County may agree to submit a dispute to mediation or binding arbitration at any time instead of using the administrative dispute resolution process in paragraphs (b), (c), and (d).</paragraph>
  </section>
  <section heading="Sec. 11B-35A. Disclosure of illegal or improper actions.">
    <paragraph indent="1">(a)   Definitions.  In this Section, the following words have the meaning indicated:</paragraph>
    <paragraph indent="2">Covered employee means an employee of a contractor or subcontractor that performs or performed services under a contract subject to this Section.</paragraph>
    <paragraph indent="2">Employer means a contractor or subcontractor that, through the use of a covered employee, performs or performed services under a County contract.</paragraph>
    <paragraph indent="2">Personnel action means an act or omission by the employer that has a significant adverse impact on the employee, or a change in the employee’s duties or responsibilities which is inconsistent with the employee’s position and salary.</paragraph>
    <paragraph indent="1">(b)   Policy.  A covered employee must not be subjected to a personnel action by the Employer for disclosing, to a County official or employee, information involving the solicitation, award, administration, or performance of any contract that the employee reasonably believes is:</paragraph>
    <paragraph indent="2">(1)   an abuse of authority, gross mismanagement, or gross waste of money;</paragraph>
    <paragraph indent="2">(2)   a substantial and specific danger to public health or safety; or</paragraph>
    <paragraph indent="2">(3)   a violation of law.</paragraph>
    <paragraph indent="1">(c)   Each contract must:</paragraph>
    <paragraph indent="2">(1)   prohibit retaliation by the Employer against a covered employee who discloses any illegal or improper action described in subsection (b); and</paragraph>
    <paragraph indent="2">(2)   specify that an aggrieved covered employee, as a third-party beneficiary, may by civil action recover compensatory damages, including interest and a reasonable attorney’s fee, against the employer for retaliation in violation of this Section.</paragraph>
    <paragraph indent="1">(d)   In addition to other authority granted by law, the Director may cancel, terminate, or suspend a contract, in whole or in part, and declare a contractor or subcontractor ineligible for further County contracts based upon a final court judgment in favor of a covered employee for retaliation in violation of this Section.  The Director may impose other appropriate sanctions and remedies as provided in applicable regulations or by contract. Each Contractor must bind its subcontractors contractually to comply with this Section.</paragraph>
    <paragraph indent="1">(e)   This Section does not prohibit a personnel action against a covered employee that would have been taken regardless of a disclosure of information described in subsection (b).</paragraph>
  </section>
</article>