<section article="gsf" article_name="State Finance and Procurement" number="17-101" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="1" subtitle_name="Security for Construction Contracts"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Payment security” means security to guarantee payment for labor and materials, including leased equipment, under a contract for construction.</text> </level> <level label="c"> <text>“Performance security” means security to guarantee the performance of a contract for construction.</text> </level> <level label="d"> <text>“Public body” means:</text> <level label="1"> <text>the State;</text> </level> <level label="2"> <text>a county, municipal corporation, or other political subdivision;</text> </level> <level label="3"> <text>a public instrumentality; or</text> </level> <level label="4"> <text>any governmental unit authorized to award a contract.</text> </level> </level> <level label="e"> <level label="1"> <text>“Supplier” means a person who supplies labor or materials.</text> </level> <level label="2"> <text>“Supplier” includes a lessor of equipment to the extent of the fair rental value of the equipment.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-102" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="1" subtitle_name="Security for Construction Contracts"> <level label="a"> <text>This subtitle does not limit the authority of a public body to require performance security in addition to, or in cases other than, those specified under §§ 17-103, 17-104, 17-106, and 17-107 of this subtitle.</text> </level> <level label="b"> <text>This subtitle applies only to security for a construction contract.</text> </level> <level label="c"> <level label="1"> <text>By ordinance, Baltimore City may provide for a program to satisfy the bonding requirements under §§ 17-103, 17-104, 17-106, and 17-107 of this subtitle with respect to any construction contract:</text> <level label="i"> <text>that does not exceed $200,000; and</text> </level> <level label="ii"> <text>for which State money is not used.</text> </level> </level> <level label="2"> <text>The program shall provide for payment security of at least 50% of the total amount payable under the contract.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-103" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="1" subtitle_name="Security for Construction Contracts"> <level label="a"> <level label="1"> <text>Before a public body awards a construction contract exceeding the small procurement amount specified in § 13–109 of this article for construction, the contractor shall provide payment security and performance security that meet the requirements of § 17–104 of this subtitle.</text> </level> <level label="2"> <text>The security shall be:</text> <level label="i"> <text>for performance security, in an amount that the public body considers adequate for its protection; and</text> </level> <level label="ii"> <text>for payment security, at least 50% of the total amount payable under the contract.</text> </level> </level> </level> <level label="b"> <text>A public body, other than the State or a unit of the State government, may require payment security or performance security for a construction contract if:</text> <level label="1"> <text>the contract exceeds $100,000 but does not exceed the small procurement amount specified in § 13–109 of this article; and</text> </level> <level label="2"> <text>the amount of the security does not exceed 50% of the contract amount.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-104" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="1" subtitle_name="Security for Construction Contracts"> <level label="a"> <text>Payment security or performance security required under this subtitle shall be:</text> <level label="1"> <text>a bond executed by a surety company authorized to do business in the State;</text> </level> <level label="2"> <text>cash in an amount equivalent to a bond; or</text> </level> <level label="3"> <text>other security that is satisfactory to the public body awarding the contract.</text> </level> </level> <level label="b"> <level label="1"> <text>Subject to paragraphs (2) and (3) of this subsection, performance security may include the granting of a mortgage or deed of trust on real property located within the State if such security is satisfactory to the public body awarding the contract.</text> </level> <level label="2"> <text>The face amount of a mortgage or deed of trust on real property granted as security under this subsection may not exceed 75% of the contractor’s equity interest in the property.</text> </level> <level label="3"> <text>A mortgage or deed of trust accepted under this subsection shall be recorded by an official designated by the public body accepting the mortgage or deed of trust in the land records of the county where the real property is situated in accordance with § 3–103 of the Real Property Article.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-105" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="1" subtitle_name="Security for Construction Contracts"> <level label="a"> <text>Security under this subtitle:</text> <level label="1"> <text>if required by the State or a unit of the State government, shall be payable to “the State of Maryland”; or</text> </level> <level label="2"> <text>if required by any other public body, shall be payable to that public body.</text> </level> </level> <level label="b"> <text>The form of payment security or performance security shall be approved:</text> <level label="1"> <text>for the State or a unit of the State government, by the Attorney General; and</text> </level> <level label="2"> <text>for any other public body, by its attorney.</text> </level> </level> <level label="c"> <text>The contractor shall file the security or evidence of a trust account established as security:</text> <level label="1"> <text>if payable to the State under this section, in the Office of the Comptroller; or</text> </level> <level label="2"> <text>if payable to any other public body, in the appropriate office of that public body.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-106" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="1" subtitle_name="Security for Construction Contracts"> <text>Before a contractor receives a progress or final payment under a contract covered by payment security, the contractor shall certify in writing that, in accordance with contractual arrangements, suppliers:</text> <level label="1"> <text>have been paid from the proceeds of previous progress payments; and</text> </level> <level label="2"> <text>will be paid in a timely manner from the proceeds of the progress or final payment currently due.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-107" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="1" subtitle_name="Security for Construction Contracts"> <text>A contractor who provides payment security under this subtitle in connection with a construction contract awarded by a public body need not execute a waiver of a mechanics’ lien to the public body.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-108" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="1" subtitle_name="Security for Construction Contracts"> <level label="a"> <text>Subject to subsection (b) of this section, a supplier may sue on payment security if the supplier:</text> <level label="1"> <text>supplied labor or materials in the prosecution of work provided for in a contract subject to this subtitle; and</text> </level> <level label="2"> <text>has not been paid in full for the labor or materials within 90 days after the day that the person last supplied labor or materials for which the claim is made.</text> </level> </level> <level label="b"> <level label="1"> <text>A supplier who has a direct contractual relationship with a subcontractor or sub-subcontractor of a contractor who has provided payment security but no contractual relationship with the contractor may sue on the security if the supplier gives written notice to the contractor within 90 days after the labor or materials for which the claim is made were last supplied in prosecution of work covered by the security.</text> </level> <level label="2"> <text>A notice under this subsection:</text> <level label="i"> <text>shall state with substantial accuracy the amount claimed and the person to whom the labor or material was supplied; and</text> </level> <level label="ii"> <text>shall be sent by certified mail to the contractor at the contractor’s residence or a place where the contractor has an office or does business.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>On request by a person who submits an affidavit verifying that the person has supplied labor or materials but has not been paid or is being sued under this section, the Comptroller or the officer in charge of the office where the payment security or evidence of security is required to be filed shall issue:</text> <level label="i"> <text>a certified copy of the payment bond; or</text> </level> <level label="ii"> <text>for other security, a certified statement of the security.</text> </level> </level> <level label="2"> <text>The person requesting certification shall pay a reasonable fee, set by the Comptroller or other officer required to issue the certification, to cover the costs of preparation.</text> </level> <level label="3"> <text>A certification under this section is prima facie evidence of the contents, execution, and delivery of payment security.</text> </level> </level> <level label="d"> <level label="1"> <text>An executory contract between a supplier and a contractor or subcontractor that is related to a construction contract may not waive or require the supplier to waive the right to sue on payment security under this section.</text> </level> <level label="2"> <text>A provision in an executory contract between a supplier and a contractor or subcontractor that is related to a construction contract and that conditions payment to the supplier on receipt of payment by the person from a public body or other third party, may not abrogate or waive the right of the supplier to sue on payment security under this subtitle.</text> </level> <level label="3"> <text>A provision of a contract made in violation of this subsection is void as against the public policy of the State.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-109" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="1" subtitle_name="Security for Construction Contracts"> <level label="a"> <text>An action on a payment bond required by this subtitle shall be filed in the appropriate court of the county where:</text> <level label="1"> <text>the contract was executed and performed; or</text> </level> <level label="2"> <text>the contractor has its principal place of business.</text> </level> </level> <level label="b"> <text>An action on a payment bond required by this subtitle shall be filed within 1 year after the public body finally accepts the work performed under the contract.</text> </level> <level label="c"> <text>An obligee named in a bond or a trustee for any other security is not liable for any costs in connection with an action on a payment bond required by this subtitle.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-110" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="1" subtitle_name="Security for Construction Contracts"> <level label="a"> <text>Subsections (b)(1) and (2), (c), and (d) of this section do not apply to an entity that is required to comply with the provisions of § 13–225 of this article.</text> </level> <level label="b"> <level label="1"> <text>If a contractor has furnished 100% payment security and 100% performance security in accordance with this subtitle under a contract for construction awarded by a public body, the percentage specified in the contract for retainage may not exceed 5% of the total amount of the contract.</text> </level> <level label="2"> <text>In addition to retainage, a public body may withhold from payments otherwise due a contractor any amount that the public body reasonably believes necessary to protect the public body’s interest.</text> </level> <level label="3"> <text>Except as provided in paragraph (4) of this subsection, within 120 days after satisfactory completion of a contract for construction, a public body shall release any retainage due to the contractor.</text> </level> <level label="4"> <text>If there is a dispute or contract claim between the contractor and the public body concerning the satisfactory completion of a contract for construction, the public body shall release the retainage to the contractor within 120 days after the resolution of the dispute or contract claim.</text> </level> </level> <level label="c"> <level label="1"> <text>A contractor may not retain a percentage of payments due a subcontractor that exceeds the percentage of payments retained by the public body.</text> </level> <level label="2"> <text>Paragraph (1) of this subsection may not be construed to prohibit a contractor from withholding any amount in addition to retainage if the contractor determines that a subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount.</text> </level> </level> <level label="d"> <level label="1"> <text>A subcontractor may not retain a percentage of payments due a lower tier subcontractor that exceeds the percentage of payments retained from the subcontractor.</text> </level> <level label="2"> <text>Paragraph (1) of this subsection may not be construed to prohibit a subcontractor from withholding any amount in addition to retainage if the subcontractor determines that a lower tier subcontractor’s performance under the subcontract provides reasonable grounds for withholding the additional amount.</text> </level> </level> <level label="e"> <text>This section may not be construed to limit the application of the remaining provisions of this subtitle.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-111" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="1" subtitle_name="Security for Construction Contracts"> <text>This subtitle may be cited as the “Maryland Little Miller Act”.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-201" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>In this subtitle, unless the context indicates otherwise, the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Apprentice” means an individual who:</text> <level label="1"> <text>is at least 16 years old;</text> </level> <level label="2"> <text>has signed with an employer or employer’s agent, an association of employers, an organization of employees, or a joint committee from both, an agreement including a statement of:</text> <level label="i"> <text>the trade, craft, or occupation that the individual is learning; and</text> </level> <level label="ii"> <text>the beginning and ending dates of the apprenticeship; and</text> </level> </level> <level label="3"> <text>is registered in a program of the Council or the Office of Apprenticeship of the United States Department of Labor.</text> </level> </level> <level label="c"> <text>“Apprenticeship cohort” has the meaning stated in § 14–801 of this article.</text> </level> <level label="d"> <text>“Commissioner” means:</text> <level label="1"> <text>the Commissioner of Labor and Industry;</text> </level> <level label="2"> <text>the Deputy Commissioner of Labor and Industry; or</text> </level> <level label="3"> <text>an authorized representative of the Commissioner.</text> </level> </level> <level label="e"> <text>“Completion rate” has the meaning stated in § 14–801 of this article.</text> </level> <level label="f"> <text>“Construction” includes all:</text> <level label="1"> <text>building;</text> </level> <level label="2"> <text>reconstructing;</text> </level> <level label="3"> <text>improving;</text> </level> <level label="4"> <text>enlarging;</text> </level> <level label="5"> <text>painting and decorating;</text> </level> <level label="6"> <text>altering;</text> </level> <level label="7"> <text>maintaining;</text> </level> <level label="8"> <text>repairing; and</text> </level> <level label="9"> <text>services provided under a mechanical systems service contract.</text> </level> </level> <level label="g"> <text>“Council” means the Apprenticeship and Training Council.</text> </level> <level label="h"> <level label="1"> <text>“Employee” means an apprentice or worker employed by a contractor or subcontractor under a public work contract.</text> </level> <level label="2"> <text>“Employee” does not include an individual employed by a public body.</text> </level> </level> <level label="i"> <text>“Group joint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="j"> <text>“Group nonjoint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="k"> <text>“Individual joint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="l"> <text>“Individual nonjoint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="m"> <level label="1"> <text>“Locality” means the county in which the work is to be performed.</text> </level> <level label="2"> <text>If the public work is located within 2 or more counties, the locality includes all counties in which the public work is located.</text> </level> </level> <level label="n"> <text>“Mechanical systems service contract” means a contract for:</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-202" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>This subtitle does not limit:</text> <level label="1"> <text>the hours of work an employee may work in a particular period of time; or</text> </level> <level label="2"> <text>the right of a contractor to pay an employee under a public work contract more than the prevailing wage rate.</text> </level> </level> <level label="b"> <text>Except as provided in subsection (e) of this section, this subtitle does not apply to:</text> <level label="1"> <text>a public work contract of less than $250,000; or</text> </level> <level label="2"> <text>the part of a public work contract for which the federal government provides money if, as to that part, the contractor is required to pay the prevailing wage rate as determined by the United States Secretary of Labor.</text> </level> </level> <level label="c"> <text>If this subtitle and the federal Davis–Bacon Act apply and the federal act is suspended, the Governor may declare this subtitle suspended for the same period for:</text> <level label="1"> <text>the part of that public work contract for which the United States Secretary of Labor would have been required to make a determination of a prevailing wage rate; or</text> </level> <level label="2"> <text>that entire public work contract.</text> </level> </level> <level label="d"> <level label="1"> <text>Subject to paragraph (2) of this subsection, this subtitle applies to the construction of a structure or work, including a bridge, a building, a ditch, a road, an alley, a waterwork, or a sewage disposal plant, funded with bond proceeds from bonds issued in accordance with Title 12, Subtitle 2 of the Economic Development Article that is located in a designated tax increment financing development district created on or after July 1, 2018, established under State or local law.</text> </level> <level label="2"> <text>This subsection applies to the construction of a structure or work only if a political subdivision of the State, Baltimore City, or the Revenue Authority of Prince George’s County authorizes that the construction of the structure or work is subject to this subtitle.</text> </level> </level> <level label="e"> <text>This subtitle applies to a mechanical systems service contract that is part of a public work contract with a value in excess of the threshold specified in 41 U.S.C. 6702(a)(2), the McNamara–O’Hara Service Contract Act of 1965 (SCA).</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-204" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <level label="1"> <text>The Commissioner shall adopt regulations reasonably required to carry out this subtitle.</text> </level> <level label="2"> <text>The regulations may include exemptions for minimum number of hours worked or workers employed.</text> </level> <level label="3"> <text>Payroll records shall be kept in accordance with those regulations.</text> </level> </level> <level label="b"> <text>On or before January 1 of each year, the Commissioner shall submit to the Governor and to the Secretary of Labor an annual report that:</text> <level label="1"> <text>describes the activities of the Commissioner under this subtitle during the preceding calendar year; and</text> </level> <level label="2"> <text>includes:</text> <level label="i"> <text>full information about the operation of this subtitle; and</text> </level> <level label="ii"> <text>other information about prevailing wage rates, as the Commissioner desires.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-205" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>A contractor or subcontractor under a public work contract subject to this subtitle:</text> <level label="1"> <text>shall employ only competent workers and apprentices who qualify under subsection (b) of this section;</text> </level> <level label="2"> <text>may not employ any individual classified as a helper or trainee; and</text> </level> <level label="3"> <text>may refuse to employ a worker who is a resident of another state if the Commissioner finds that the other state enforces a law that prohibits a resident of this State from employment as a worker under a public work contract in that state, unless:</text> <level label="i"> <text>the refusal is in conflict or otherwise inconsistent with a federal law applicable to the public work;</text> </level> <level label="ii"> <text>the federal government is to pay wholly or partly for the public work; and</text> </level> <level label="iii"> <text>the inconsistency with federal law jeopardizes the availability of federal funds for the public work.</text> </level> </level> </level> <level label="b"> <text>An apprentice under a public work contract shall be part of and used in accordance with an apprenticeship program that:</text> <level label="1"> <text>is registered with the Council and approved by the Office of Apprenticeship of the United States Department of Labor; and</text> </level> <level label="2"> <text>if the program has graduated at least one apprenticeship cohort, has a completion rate of at least 25%, as determined by the Maryland Department of Labor.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-208" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <level label="1"> <text>For each public work to which this subtitle applies, the Commissioner shall determine the prevailing wage rate for each classification of worker engaged in work of the same or a similar character.</text> </level> <level label="2"> <text>The Commissioner shall determine the prevailing wage rates for both straight time and overtime.</text> </level> <level label="3"> <text>These determinations shall be made in accordance with:</text> <level label="i"> <text>the applicable provisions of Title 10, Subtitles 1 through 3 of the State Government Article; and</text> </level> <level label="ii"> <text>to the extent not inconsistent with those provisions, the requirements of this section.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in subsection (c) of this section, the prevailing wage rate for straight time for a worker is the rate paid:</text> <level label="i"> <text>in the locality;</text> </level> <level label="ii"> <text>on projects similar to the proposed public work;</text> </level> <level label="iii"> <text>for work of the same or a similar character as that to be performed on the public work; and</text> </level> <level label="iv"> <text>to 50% or more of the workers in the worker’s occupational classification.</text> </level> </level> <level label="2"> <text>The prevailing wage rate for overtime for a worker shall be at least time and a half the prevailing wage rate for straight time for that worker.</text> </level> </level> <level label="c"> <level label="1"> <text>If fewer than 50% of the workers in the locality working in the same classification receive the same wage rate:</text> <level label="i"> <text>the prevailing wage rate shall be the rate paid to at least 40% of those workers; or</text> </level> <level label="ii"> <text>if fewer than 40% receive the same wage rate, the rate shall be a weighted average rate obtained by:</text> <level label="1"> <text>adding the products obtained by multiplying each hourly rate paid to workers in the classification by the number of workers receiving that rate; and</text> </level> <level label="2"> <text>dividing that sum by the total number of workers in the classification.</text> </level> </level> </level> <level label="2"> <text>If the Commissioner determines that there is not a substantial number of competent workers engaged in similar work in the locality, the Commissioner shall determine the prevailing wage rate based on the nearest locality within the State that most closely approximates that locality in:</text> <level label="i"> <text>population;</text> </level> <level label="ii"> <text>degree of industrialization; and</text> </level> <level label="iii"> <text>skill of work force.</text> </level> </level> </level> <level label="d"> <text>The calculation of the rate paid in the locality shall include the basic hourly rate of pay and either:</text> <level label="1"> <text>if a contractor is not required by law to provide fringe benefits, the hourly rate of contribution irrevocably made by a contractor or subcontractor to a third person under a fund, plan, or program that provides:</text> <level label="i"> <text>medical, surgical, or hospital care;</text> </level> <level label="ii"> <text>retirement, disability, or death benefits, including a profit sharing plan that provides benefits on retirement;</text> </level> <level label="iii"> <text>unemployment, life, or accident insurance or compensation;</text> </level> <level label="iv"> <text>insurance or compensation for injury or illness resulting from occupational activity;</text> </level> <level label="v"> <text>vacation and holiday pay;</text> </level> <level label="vi"> <text>subsidies to defray costs of apprenticeship or other similar programs; or</text> </level> <level label="vii"> <text>other bona fide fringe benefits; or</text> </level> </level> <level label="2"> <text>the hourly rate of costs to the contractor or subcontractor that reasonably may be anticipated in providing the fringe benefits specified in item (1) of this subsection under an enforceable commitment to carry out a financially responsible plan or program that is communicated in writing to the workers.</text> </level> </level> <level label="e"> <text>An apprentice under a public work contract shall be paid at least the percentage, set by the Council, of the prevailing wage rate for a mechanic in the trade in which the apprentice is employed.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-209" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>One time per year, the Commissioner shall determine the prevailing wage rate for a classification of worker in a locality by considering among other things:</text> <level label="1"> <text>any other payroll information relevant to the determination; and</text> </level> <level label="2"> <text>wage rates established by collective bargaining agreements.</text> </level> </level> <level label="b"> <text>The Commissioner shall mail notice as provided in § 17-210(b)(2) of this subtitle at least 60 days before making a determination under this section.</text> </level> <level label="c"> <level label="1"> <text>The determination, as issued under this section or modified in a proceeding under § 17-211 of this subtitle, is effective for 1 year from the date upon which the Commissioner issued the determination under this section.</text> </level> <level label="2"> <text>The Commissioner shall show on the determination the date upon which it expires.</text> </level> <level label="3"> <text>Upon expiration of the prevailing wage determination for a locality, the Commissioner shall issue a new determination for the locality.</text> </level> <level label="4"> <text>A determination applies to a public work covered by this subtitle that is the subject of a call for bids or proposals published on or before the date upon which it expires.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-210" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>Before a public body advertises for bids or proposals for a public work contract, it shall request the Commissioner to determine the prevailing wage rate for each classification of worker required to perform the public work contract.</text> </level> <level label="b"> <level label="1"> <text>The Commissioner shall give notice of each prevailing wage rate determination for a public work contract under this subtitle.</text> </level> <level label="2"> <text>On written request, the Commissioner shall mail to any representative of any classification, any employer, or any representative of any group of employers notice:</text> <level label="i"> <text>that a determination will be made, at least 60 days before making the determination; and</text> </level> <level label="ii"> <text>of the determination, after making the determination.</text> </level> </level> </level> <level label="c"> <text>After a determination has been made, the public body shall include each prevailing wage rate for straight time and overtime:</text> <level label="1"> <text>in any call for bids or proposals;</text> </level> <level label="2"> <text>in the specifications for the public work contract; and</text> </level> <level label="3"> <text>in the public work contract.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-211" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>A determination of a prevailing wage rate issued under § 17-209 of this subtitle is subject to review when a public body publishes a call for bids or proposals in which the determination is used for the first time following its issuance under § 17-209 of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>Within 10 days after a public body publishes any call for bids or proposals, as described in subsection (a) of this section, a petition for review of a determination of a prevailing wage rate may be submitted to the Commissioner by:</text> <level label="i"> <text>the public body;</text> </level> <level label="ii"> <text>a prospective bidder or offeror or a representative of a prospective bidder or offeror;</text> </level> <level label="iii"> <text>a representative of a group of employers engaged in the type of construction for which the prevailing wage rate was determined; or</text> </level> <level label="iv"> <text>a representative of a classification of worker for which the prevailing wage rate was determined.</text> </level> </level> <level label="2"> <text>A petition under this subsection shall be verified and shall set forth the facts on which it is based.</text> </level> <level label="3"> <text>If a petition is not filed within the period set under paragraph (1) of this subsection, the determination is final and is the rate applicable in the locality for the remainder of the 1-year period for which it was issued under § 17-209 of this subtitle.</text> </level> </level> <level label="c"> <level label="1"> <text>Within 2 days after a petition is submitted under this section, the petitioner shall send a copy to the public body.</text> </level> <level label="2"> <text>On receipt of a copy of the petition, the public body shall extend the closing date for bids or proposals until 5 days after the Commissioner publishes the final determination under subsection (f) of this section.</text> </level> </level> <level label="d"> <level label="1"> <text>Within 20 days after a petition is submitted, the Commissioner shall:</text> <level label="i"> <text>after giving the notice required under paragraph (3) of this subsection, conduct an investigation; and</text> </level> <level label="ii"> <text>hold a public hearing to review the petition.</text> </level> </level> <level label="2"> <text>If more than 1 petition is submitted, the Commissioner may consolidate the hearings on any of the petitions.</text> </level> <level label="3"> <text>The Commissioner shall notify the petitioner, public body, recognized collective bargaining representative for the classification for which a review is requested, and any other person entitled to receive notice under § 17-210(b)(2) of this subtitle.</text> </level> </level> <level label="e"> <text>At the hearing:</text> <level label="1"> <text>the Commissioner shall introduce as evidence the investigation conducted under subsection (d) of this section and the other facts that formed the basis of the Commissioner’s original determination; and</text> </level> <level label="2"> <text>any interested party, including the Commissioner, may introduce other evidence material to the issue.</text> </level> </level> <level label="f"> <text>Within 10 days after the conclusion of a review hearing, the Commissioner shall send to the public body and each interested party, a determination of the prevailing wage rate. This determination is final and is the rate applicable in the locality for the remainder of the 1-year period for which it was issued under § 17-209 of this subtitle.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-212" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <text>A member of a public body may not vote for the award of a public work contract or vote to disburse money for the construction of a public work unless:</text> <level label="1"> <text>the public body has asked the Commissioner to determine the prevailing wage rates in the locality for each classification of worker required to perform the public work contract; and</text> </level> <level label="2"> <text>the determination has been made part of the specifications and public work contract for the public work.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-213" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>Before entering into a public work contract, a public body shall require that the public work contract include a clause for payment:</text> <level label="1"> <text>to a worker, of at least the prevailing wage rate; and</text> </level> <level label="2"> <text>to an apprentice, of at least the rate that the Council sets for an apprentice based on a percentage of the prevailing wage rate for a mechanic in that trade.</text> </level> </level> <level label="b"> <text>A public body shall require bonds on public work contracts to guarantee the faithful performance of the prevailing wage rate clause of the public work contract.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-214" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>Except as provided in subsection (b) of this section, each contractor and subcontractor under a public work contract shall pay not less than the prevailing wage rate of straight time to an employee for each hour that the employee works.</text> </level> <level label="b"> <text>A contractor and subcontractor shall pay an employee the prevailing wage rate of overtime for each hour that the employee works:</text> <level label="1"> <text>in excess of 10 hours in any single calendar day;</text> </level> <level label="2"> <text>in excess of 40 hours per each workweek; or</text> </level> <level label="3"> <text>on Sunday or a legal holiday.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-215" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>Each contractor and subcontractor subject to this subtitle shall pay each employee not less than the prevailing wage rate required under this subtitle:</text> <level label="1"> <text>unconditionally;</text> </level> <level label="2"> <text>without subsequent rebate; and</text> </level> <level label="3"> <text>except as provided in subsection (b) of this section, without deductions for:</text> <level label="i"> <text>food;</text> </level> <level label="ii"> <text>sleeping accommodations;</text> </level> <level label="iii"> <text>transportation;</text> </level> <level label="iv"> <text>use of small tools; or</text> </level> <level label="v"> <text>any other thing of any kind.</text> </level> </level> </level> <level label="b"> <text>A contractor or subcontractor may make deductions that are:</text> <level label="1"> <text>required by law;</text> </level> <level label="2"> <text>required or allowed by a collective bargaining agreement between a bona fide labor organization and the contractor or subcontractor; or</text> </level> <level label="3"> <text>contained in a written agreement between an employee and an employer undertaken at the beginning of employment, if the agreement:</text> <level label="i"> <text>concerns food, sleeping accommodations, or other similar items;</text> </level> <level label="ii"> <text>is submitted by the employer to the public body awarding the public work contract; and</text> </level> <level label="iii"> <text>is approved by the public body as fair and reasonable.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-216" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>A laborer may perform any work that is not ordinarily performed by a mechanic or mechanic’s apprentice, but shall be paid the prevailing wage rate for the work performed.</text> </level> <level label="b"> <level label="1"> <text>A laborer receiving the prevailing wage rate for laborers may not perform work ordinarily performed by a mechanic or mechanic’s apprentice.</text> </level> <level label="2"> <text>If a laborer performs work ordinarily performed by any mechanic or mechanic’s apprentice, the contractor or subcontractor shall pay the laborer for the entire time of performance of that work at the prevailing wage rate for a mechanic.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-219" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>Each contractor under a public work contract subject to this subtitle shall:</text> <level label="1"> <text>post a clearly legible statement of each prevailing wage rate to be paid under the public work contract; and</text> </level> <level label="2"> <text>keep the statement posted during the full time that any employee is employed on the public work contract.</text> </level> </level> <level label="b"> <text>The statement of prevailing wage rates shall be posted in a prominent and easily accessible place at the site of the public work.</text> </level> <level label="c"> <text>Subject to § 10-1001 of the State Government Article, the Commissioner may impose on a person that violates this section a civil penalty of up to $50 per violation.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-220" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>Each contractor required to pay the prevailing wage rate shall:</text> <level label="1"> <text>keep payroll records covering work performed directly at the work site in accordance with regulations adopted by the Commissioner; and</text> </level> <level label="2"> <text>allow the Commissioner or the public body to inspect the records at any reasonable time and as often as necessary.</text> </level> </level> <level label="b"> <level label="1"> <text>Each contractor shall submit a complete copy of the payroll records of the contractor and, for work performed at the work site, of the subcontractors in the form that the Commissioner specifies by regulation to:</text> <level label="i"> <text>the public body; and</text> </level> <level label="ii"> <text>the Commissioner.</text> </level> </level> <level label="2"> <text>The Commissioner and the public body shall make payroll records available for public inspection during regular business hours.</text> </level> </level> <level label="c"> <text>Each copy of the payroll records shall be accompanied by a statement that is signed by the contractor or, for the subcontractor’s records, by the subcontractor and indicates that:</text> <level label="1"> <text>the payroll records are correct;</text> </level> <level label="2"> <text>the wage rates paid are not less than those established by the Commissioner as set forth in the public work contract;</text> </level> <level label="3"> <text>the classification set forth for each employee conforms with the work performed by that employee; and</text> </level> <level label="4"> <text>the contractor or subcontractor has complied with each requirement of this subtitle.</text> </level> </level> <level label="d"> <text>If a contractor is late in submitting copies of the payroll records required under subsection (b) of this section:</text> <level label="1"> <text>the public body may postpone the processing of partial payment estimates under the public work contract pending receipt of the copies; and</text> </level> <level label="2"> <text>the contractor shall be liable to the public body for liquidated damages of $10 for each calendar day the records are late.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-221" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>Each public body that awards a public work contract shall:</text> <level label="1"> <text>take cognizance of a complaint of a violation of this subtitle committed in the course of performance of the public work contract; and</text> </level> <level label="2"> <text>when making payments to the contractor, withhold any amount that the contractor owes to its employees or the public body as a result of the violation.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commissioner shall promptly institute an investigation as necessary to determine compliance with this subtitle and regulations adopted under this subtitle when the Commissioner:</text> <level label="i"> <text>receives a complaint of a violation of this subtitle; and</text> </level> <level label="ii"> <text>is otherwise made aware of a possible violation of this subtitle.</text> </level> </level> <level label="2"> <text>Any written or oral complaint or statement made by an employee is confidential and may not be disclosed to the employer without the consent of the employee.</text> </level> </level> <level label="c"> <text>A contractor or subcontractor subject to an investigation under this section shall allow the Commissioner, during normal working hours, to observe work being performed at the site of a public work project, to interview employees, and to review books and records, to determine:</text> <level label="1"> <text>the correctness of each classification;</text> </level> <level label="2"> <text>the ratio of apprentices to mechanics; and</text> </level> <level label="3"> <text>payment of straight and overtime prevailing wage rates as required under the public work contract.</text> </level> </level> <level label="d"> <level label="1"> <text>If, after investigation, the Commissioner determines that a provision of this subtitle may have been violated, the Commissioner immediately shall notify the public body.</text> </level> </level> <level label="2"> <text>On notification, the public body shall withhold from payment due the contractor or subcontractor an amount sufficient to:</text> <level label="i"> <text>pay each employee of the contractor or subcontractor the full amount of wages due under this subtitle; and</text> </level> <level label="ii"> <text>satisfy a liability of a contractor for liquidated damages as provided in § 17–222(a) of this subtitle, pending a final determination.</text> </level> <level label="3"> <text>If a subcontractor is responsible for a violation of this subtitle, the contractor:</text> <level label="i"> <text>may withhold from payment to the subcontractor an amount equal to the amount withheld from the contractor under paragraph (2) of this subsection; or</text> </level> <level label="ii"> <text>if payment has been made to the subcontractor, may sue to recover that amount.</text> </level> </level> </level> <level label="e"> <level label="1"> <level label="i"> <text>If, after investigation, the Commissioner makes an initial determination that a contractor or subcontractor may have violated the requirement to pay the prevailing wage rate under this subtitle, the Commissioner immediately may issue a stop work order to cease all business operations at every site where a violation occurred and shall:</text> <level label="1"> <text>notify the contractor or subcontractor of the violation, to include a statement of facts disclosed in the investigation;</text> </level> <level label="2"> <text>meet with the contractor or subcontractor within 48 hours of issuing the stop work order; and</text> </level> <level label="3"> <text>provide the contractor or subcontractor a reasonable timeframe, as determined by the Commissioner, to resolve the violation.</text> </level> </level> <level label="ii"> <text>The Commissioner may issue the stop work order even if the Commissioner has referred the matter to the Attorney General or another appropriate authority for investigation or prosecution.</text> </level> </level> <level label="2"> <text>If a stop work order is issued against a subcontractor:</text> <level label="i"> <text>the prime contractor on the contract may not terminate the contract with the subcontractor until 48 hours after the meeting between the Commissioner and the subcontractor;</text> </level> <level label="ii"> <text>the prime contractor may not terminate the contract with the subcontractor if the violation has been resolved; and</text> </level> <level label="iii"> <text>the prime contractor may not incur any civil liability for damages to the subcontractor whose contract was terminated, other subcontractors affected by the termination, or any public body resulting from the termination.</text> </level> </level> <level label="3"> <text>The Commissioner may impose a penalty of up to $5,000 per day against a contractor or subcontractor for each day the contractor or subcontractor violates a stop work order.</text> </level> <level label="4"> <text>A stop work order issued under this subsection shall:</text> <level label="i"> <text>take effect when served on the contractor or subcontractor; and</text> </level> <level label="ii"> <text>remain in effect until the Commissioner issues an order releasing the stop work order.</text> </level> </level> <level label="5"> <text>The Commissioner shall issue an order releasing a stop work order issued under this subsection on a showing by the contractor or subcontractor that the contractor or subcontractor:</text> <level label="i"> <text>is properly paying employees the appropriate prevailing wage rate set in accordance with this subtitle; and</text> </level> <level label="ii"> <text>has paid all penalties assessed against the contractor or subcontractor under this subtitle.</text> </level> </level> <level label="6"> <text>The Commissioner may include in the order releasing a stop work order a requirement that the contractor or subcontractor submit periodic reports to the Commissioner demonstrating compliance with the requirements of this subtitle.</text> </level> </level> <level label="f"> <level label="1"> <level label="i"> <text>Within 72 hours after a contractor or subcontractor receives a stop work order under subsection (e) of this section, the contractor or subcontractor may submit a written appeal to the Commissioner on the stop work order.</text> </level> <level label="ii"> <text>If an appeal is not requested within 72 hours, the stop work order shall become a final order of the Commissioner.</text> </level> </level> <level label="2"> <text>The Commissioner shall hold a hearing within 7 days after receiving the written appeal.</text> </level> <level label="3"> <text>If the Commissioner does not hold a hearing within 7 days after receiving the written appeal, the contractor or subcontractor may request an administrative law judge to release the order.</text> </level> <level label="4"> <level label="i"> <text>Within 5 days after holding a hearing on a stop work order under this subsection, the Commissioner shall issue a written decision on the appeal.</text> </level> <level label="ii"> <text>The decision shall include:</text> <level label="1"> <text>an explanation of why the order was upheld or released; and</text> </level> <level label="2"> <text>the grounds on which the result was determined.</text> </level> </level> </level> </level> <level label="g"> <text>If after investigation, the Commissioner determines that a provision of this subtitle may have been violated and has not issued a stop work order in accordance with subsection (e) of this section, the Commissioner shall:</text> <level label="1"> <text>issue an order for a hearing within 30 days after completing an investigation; and</text> </level> <level label="2"> <text>expeditiously conduct the hearing.</text> </level> </level> <level label="h"> <level label="1"> <text>At least 10 days before the hearing, the Commissioner shall serve, personally or by mail, written notice of the hearing on all interested persons, including the public body.</text> </level> <level label="2"> <text>The notice shall include:</text> <level label="i"> <text>a statement of the facts disclosed in the investigation; and</text> </level> <level label="ii"> <text>the time and place of the hearing.</text> </level> </level> </level> <level label="i"> <level label="1"> <text>In conducting an investigation or hearing under this section, the Commissioner is deemed to be acting in a quasi–judicial capacity and may:</text> <level label="i"> <text>issue subpoenas;</text> </level> <level label="ii"> <text>administer oaths; or</text> </level> <level label="iii"> <text>examine witnesses.</text> </level> </level> <level label="2"> <text>The Commissioner shall grant each interested person an opportunity to speak at the hearing on matters relevant to the complaint.</text> </level> </level> <level label="j"> <level label="1"> <text>After the conclusion of the hearing, the Commissioner shall:</text> <level label="i"> <text>file in the Commissioner’s office an order that states the Commissioner’s determination; and</text> </level> <level label="ii"> <text>serve, personally or by mail, the public body and parties to the hearing with a copy of the order and notice of its filing.</text> </level> </level> <level label="2"> <text>If the Commissioner finds a violation, the Commissioner shall determine the amount of liquidated damages and restitution to be assessed for the violation.</text> </level> <level label="3"> <text>On the entry and service of a Commissioner’s order, the public body, from the money due the contractor or subcontractor, shall:</text> <level label="i"> <text>pay the affected employees the full amount of wages due them; and</text> </level> <level label="ii"> <text>satisfy the obligation of the contractor or subcontractor to pay liquidated damages as required under § 17–222 of this subtitle.</text> </level> </level> </level> <level label="k"> <level label="1"> <text>In addition to any other penalty, the Commissioner may impose a civil fine of not more than $1,000 against a contractor or subcontractor that knowingly fails to produce records or attend a hearing or deposition as required by an investigation into a possible prevailing wage violation under subsection (b) of this section.</text> </level> <level label="2"> <text>Each day that a violation under paragraph (1) of this subsection continues is a separate offense.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-222" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <level label="1"> <text>Except as provided under paragraph (2) of this subsection, a contractor under a public work contract is liable to the public body for liquidated damages of $20 for each laborer or other employee for each day for which:</text> <level label="i"> <text>the laborer is paid less than the prevailing wage rate of a mechanic while performing a task required to be performed by a mechanic or mechanic’s apprentice; or</text> </level> <level label="ii"> <text>the employee is paid less than the prevailing wage rate.</text> </level> </level> <level label="2"> <text>A contractor under a public work contract that knew or reasonably should have known of the contractor’s obligation to pay the prevailing wage rate and that deliberately failed or refused to pay the prevailing wage rate is liable to the public body for liquidated damages of $250 for each laborer or other employee for each day for which:</text> <level label="i"> <text>the laborer is paid less than the prevailing wage rate of a mechanic while the laborer is performing a task required to be performed by a mechanic or mechanic’s apprentice; or</text> </level> <level label="ii"> <text>the employee is paid less than the prevailing wage rate.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>If a contractor or subcontractor pays an employee less than the amount the employee is entitled to receive for the work performed, the contractor shall make restitution to the employee.</text> </level> <level label="2"> <text>The contractor and the subcontractor shall be jointly and severally liable for restitution to the subcontractor’s employees.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-223" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>If a public body does not comply with a provision of this subtitle, the Commissioner:</text> <level label="1"> <text>shall give written notice of the noncompliance to the public body;</text> </level> <level label="2"> <text>may require compliance within a sufficient period as determined by the Commissioner; and</text> </level> <level label="3"> <text>after the expiration of that period, may inform the Attorney General in writing that notice has been given and that the public body has not complied with the notice.</text> </level> </level> <level label="b"> <text>As soon as possible after being informed by the Commissioner, the Attorney General shall sue, in the name of the State, in the circuit court for the county where the public body is located to seek any remedies that the court may find appropriate to carry out the policies of this subtitle.</text> </level> <level label="c"> <text>In the action, the State and the public body each shall have the right of appeal that is provided by law in an injunction proceeding.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-224" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <level label="1"> <text>If an employee under a public work contract is paid less than the prevailing wage rate for that employee’s classification for the work performed, the employee may file a complaint with the Commissioner.</text> </level> <level label="2"> <text>Except as otherwise provided in this section, a complaint filed under this section shall be subject to the provisions of § 17–221 of this subtitle.</text> </level> <level label="3"> <text>If the Commissioner’s investigation determines that the employer violated provisions of this subtitle, the Commissioner shall try to resolve the issue informally.</text> </level> <level label="4"> <level label="i"> <text>If the Commissioner is unable to resolve the matter informally, the Commissioner shall issue an order for a hearing in accordance with § 17–221 of this subtitle.</text> </level> <level label="ii"> <text>If, at the conclusion of a hearing ordered under subparagraph (i) of this paragraph, the Commissioner determines that the employee is entitled to restitution under this subtitle, the Commissioner shall issue an order in accordance with § 17–221 of this subtitle.</text> </level> <level label="iii"> <text>If an employer of an employee found to be entitled to restitution under subparagraph (ii) of this paragraph is no longer working under a contract with a public body, the Commissioner may order that restitution be paid directly by the employer to the employee within a reasonable period of time, as determined by the Commissioner.</text> </level> </level> <level label="5"> <text>If an employer fails to comply with an order to pay restitution to an employee under paragraph (4)(iii) of this subsection, the Commissioner or the employee may bring a civil action to enforce the order in the circuit court in the county where the employee or employer is located.</text> </level> </level> <level label="b"> <level label="1"> <text>If an employee under a public work contract is paid less than the prevailing wage rate for that employee’s classification for the work performed, the employee is entitled to sue to recover the difference between the prevailing wage rate and the amount received by the employee.</text> </level> <level label="2"> <text>A determination by the Commissioner that a contractor is required to make restitution under subsection (a)(4) of this section does not preclude an employee from filing an action under this subsection.</text> </level> </level> <level label="c"> <level label="1"> <text>An action under this section is considered to be a suit for wages.</text> </level> <level label="2"> <text>A judgment in an action under this section shall have the same force and effect as any other judgment for wages.</text> </level> <level label="3"> <text>An action brought under this section for a violation of this subtitle shall be filed within 3 years from the date the affected employee knew or should have known of the violation.</text> </level> </level> <level label="d"> <level label="1"> <text>The failure of an employee to protest orally or in writing the payment of a wage that is less than the prevailing wage rate is not a bar to recovery in an action under this section.</text> </level> <level label="2"> <text>A contract or other written document in which an employee states that the employee shall be paid less than the amount required by this subtitle does not bar the recovery of any remedy required under this subtitle.</text> </level> </level> <level label="e"> <level label="1"> <text>Except as provided in paragraph (3) of this subsection, if the court in an action filed under this section finds that an employer paid an employee less than the requisite prevailing wage, the court shall award the affected employee the difference between the wage actually paid and the prevailing wage at the time that the services were rendered.</text> </level> <level label="2"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, unpaid fringe benefit contributions owed for an employee in accordance with this section shall be paid to the appropriate benefit fund, plan, or program.</text> </level> <level label="ii"> <text>In the absence of an appropriate benefit fund, plan, or program, the amount owed for fringe benefits for an employee shall be paid directly to the employee.</text> </level> </level> <level label="3"> <text>The court may order the payment of double damages or treble damages under this section if the court finds that the employer withheld wages or fringe benefits willfully and knowingly or with deliberate ignorance or reckless disregard of the employer’s obligations under this subtitle.</text> </level> <level label="4"> <text>In an action under this section, the court shall award a prevailing plaintiff reasonable counsel fees and costs.</text> </level> <level label="5"> <text>If the court finds that an employee submitted a false or fraudulent claim in an action under this section, the court may order the employee to pay the employer reasonable counsel fees and costs.</text> </level> <level label="6"> <text>The contractor and subcontractor shall be jointly and severally liable for any violation of the subcontractor’s obligations under this section.</text> </level> </level> <level label="f"> <level label="1"> <text>Subject to paragraph (2) of this subsection, an action filed in accordance with this section may be brought by one or more employees on behalf of that employee or group of employees and on behalf of other employees similarly situated.</text> </level> <level label="2"> <text>An employee may not be a party plaintiff to an action brought under this section unless that employee files written consent with the court in which the action is brought to become a party to the action.</text> </level> </level> <level label="g"> <level label="1"> <text>A person found to have made a false or fraudulent representation or omission known to be false or made with deliberate ignorance or reckless disregard for its truth or falsity regarding a material fact in connection with any prevailing wage payroll record required by § 17–220 of this subtitle is liable for a civil penalty of $1,000 for each falsified record.</text> </level> <level label="2"> <text>The penalty shall be recoverable in a civil action filed in accordance with this section and paid to the State General Fund.</text> </level> </level> <level label="h"> <text>An employer may not discharge, threaten, or otherwise retaliate or discriminate against an employee regarding compensation or other terms and conditions of employment because that employee or an organization or other person acting on behalf of that employee:</text> <level label="1"> <text>reports or makes a complaint under this subtitle or otherwise asserts the worker’s rights under this section; or</text> </level> <level label="2"> <text>participates in any investigation, hearing, or inquiry held by the Commissioner under § 17–221 of this subtitle.</text> </level> </level> <level label="i"> <level label="1"> <text>A contractor or subcontractor may not retaliate or discriminate against an employee in violation of this section.</text> </level> <level label="2"> <text>If a contractor or subcontractor retaliates or discriminates against an employee in violation of this section, the affected employee may file an action in any court of competent jurisdiction within 3 years from the employee’s knowledge of the action.</text> </level> <level label="3"> <text>If the court finds in favor of the employee in an action brought under this subsection, the court shall order that the contractor or subcontractor:</text> <level label="i"> <text>reinstate the employee or provide the employee restitution, as appropriate;</text> </level> <level label="ii"> <text>pay the employee an amount equal to three times the amount of back wages and fringe benefits calculated from the date of the violation; and</text> </level> <level label="iii"> <text>pay reasonable counsel fees and other costs.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-225" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <text>A person may not:</text> <level label="1"> <text>violate the wage provisions of a public work contract;</text> </level> <level label="2"> <text>allow or require an employee to work for less than the applicable prevailing wage rate;</text> </level> <level label="3"> <text>except as provided in subsection (b) of this section, ask an employee or prospective employee to give anything of value to that person or any other person on a statement, representation, or understanding that failure to comply with the request or demand will prevent the employee from procuring or retaining employment; or</text> </level> <level label="4"> <text>directly or indirectly, authorize a violation of this subtitle by any other person.</text> </level> </level> <level label="b"> <text>Subsection (a) of this section does not apply to any agent of a collective bargaining organization acting in collection of sums as allowed by the National Labor Relations Act.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-226" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <level label="a"> <level label="1"> <text>After investigation and entry of an order in accordance with § 17-221 of this subtitle, the Commissioner shall file with the Secretary of State a list of the contractors and any subcontractors who persistently and willfully violate the provisions of this subtitle.</text> </level> <level label="2"> <text>Filing under this subsection shall be notice to a public body and its representatives.</text> </level> </level> <level label="b"> <level label="1"> <text>If the name of a contractor or any subcontractor appears on the list, that contractor or subcontractor shall be prohibited from entering into a contract for construction of a public work directly or indirectly for 2 years from the day on which the list is filed.</text> </level> <level label="2"> <text>A public body may not award a contract for construction of a public work to a person who is prohibited from entering into a contract under this section.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-227" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="2" subtitle_name="Prevailing Wage Rates -- Public Work Contracts"> <text>On a showing by clear and convincing evidence that a violation of this subtitle has occurred, the Commissioner shall refer any complaint that alleges a violation of § 13–1007 or § 13–1024 of the Tax – General Article to the:</text> <level label="1"> <text>Comptroller;</text> </level> <level label="2"> <text>State’s Attorney with jurisdiction over the alleged violation;</text> </level> <level label="3"> <level label="U"> <level label="S"> <text>Department of Justice;</text> </level> </level> </level> <level label="4"> <level label="U"> <level label="S"> <text>Department of Labor; and</text> </level> </level> </level> <level label="5"> <level label="U"> <level label="S"> <text>Department of the Treasury.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-301" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="3" subtitle_name="Steel Procurement for Public Works"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“American steel product” means a product that is:</text> <level label="1"> <text>produced from steel made in any state by the open hearth, basic oxygen, electric furnace, Bessemer, or other steel making process; and</text> </level> <level label="2"> <text>rolled, forged, drawn, cast, extruded, or otherwise similarly processed.</text> </level> </level> <level label="c"> <text>“Public body” means:</text> <level label="1"> <text>the State;</text> </level> <level label="2"> <text>a unit of the State government; or</text> </level> <level label="3"> <text>a county, municipal corporation, school or conservation district, or other governmental entity that, by State law, awards contracts for public construction or other public work.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-302" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="3" subtitle_name="Steel Procurement for Public Works"> <text>The provisions of this subtitle do not apply if they conflict with a federal law or grant affecting a contract.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-303" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="3" subtitle_name="Steel Procurement for Public Works"> <level label="a"> <text>Except as otherwise provided in this subtitle, a public body shall require a contractor or subcontractor to use or supply only American steel products in the performance of a contract for:</text> <level label="1"> <text>constructing or maintaining a public work; or</text> </level> <level label="2"> <text>buying or manufacturing machinery or equipment that:</text> <level label="i"> <text>is composed of at least 10,000 pounds of steel products; and</text> </level> <level label="ii"> <text>is to be installed at a public work site.</text> </level> </level> </level> <level label="b"> <text>This section does not apply if the head of a public body determines that:</text> <level label="1"> <text>the price of American steel products is not reasonable, as provided in § 17-304 of this subtitle;</text> </level> <level label="2"> <text>American steel products are not produced in sufficient quantity to meet the requirements of the contract; or</text> </level> <level label="3"> <text>the purchase of American steel products would be inconsistent with the public interest.</text> </level> </level> <level label="c"> <text>The public body shall give notice of the requirement for American steel products in the invitation for bids or request for proposals.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-304" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="3" subtitle_name="Steel Procurement for Public Works"> <text>The Board shall adopt regulations, in accordance with Title 10, Subtitle 1 of the State Government Article, stating that a bid or offered price of an American steel product shall be considered reasonable if it does not exceed the sum of the bid or offered price of a similar steel product of foreign origin, including duty, plus:</text> <level label="1"> <text>20% of that bid or offered price; or</text> </level> <level label="2"> <text>30% of that bid or offered price if the steel product is produced in a “substantial labor surplus area” as defined by the United States Department of Labor.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-305" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="3" subtitle_name="Steel Procurement for Public Works"> <level label="a"> <text>Unless a public body is satisfied that a person has completed the work in full compliance with §§ 17-303 and 17-304 of this subtitle, the public body may not pay or authorize a payment for work subject to §§ 17-303 and 17-304 of this subtitle to a person under a contract.</text> </level> <level label="b"> <text>If a person receives a payment that should not have been made under subsection (a) of this section, the Attorney General may recover the portion of the payment that is attributable to work that does not comply with §§ 17-303 and 17-304 of this subtitle directly from the person who did not comply with §§ 17-303 and 17-304 of this subtitle by filing a complaint in the circuit court for the county where the contract was executed or performed.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-306" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="3" subtitle_name="Steel Procurement for Public Works"> <text>This subtitle may be cited as the “Maryland Buy American Steel Act”.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-401" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="4" subtitle_name="Notice of Political Contributions"> <text>In this subtitle, “contribution” has the meaning stated in § 1-101 of the Election Law Article.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-402" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="4" subtitle_name="Notice of Political Contributions"> <text>Each State or local government procurement contract shall include a clause covering the obligation of a contractor to comply with the political contribution reporting requirements under Title 14 of the Election Law Article to which the contractor may be subject.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-501" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="5" subtitle_name="Emaryland Marketplace"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“eMaryland Marketplace” has the meaning stated in § 13–101 of this article.</text> </level> <level label="c"> <text>“Procurement” means procurement by competitive sealed bidding, competitive sealed proposals, or noncompetitive negotiation.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-502" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="5" subtitle_name="Emaryland Marketplace"> <level label="a"> <text>This section does not apply to emergency procurement under § 13–108 of this Division II.</text> </level> <level label="b"> <text>In addition to any other provision of law, the following persons shall use eMaryland Marketplace to publish notice of a procurement and publish a notice of award of a procurement that is at the same amount or exceeds the amount required by the Board for a State contract to be published in eMaryland Marketplace:</text> <level label="1"> <text>a unit of State government;</text> </level> <level label="2"> <text>a county;</text> </level> <level label="3"> <text>a municipality;</text> </level> <level label="4"> <text>a bicounty or multicounty governmental agency;</text> </level> <level label="5"> <text>a special tax district, sanitary district, drainage district, soil conservation district, and water supply district;</text> </level> <level label="6"> <text>a public institution of higher education;</text> </level> <level label="7"> <text>a public school; and</text> </level> <level label="8"> <text>except for the Maryland Health and Higher Educational Facilities Authority, an entity exempt from the provisions of this Division II in accordance with § 11–203 of this article.</text> </level> </level> <level label="c"> <text>This section may not be construed to prohibit a person listed in subsection (b) of this section from publishing notice of a procurement or publishing a notice of award in accordance with any other law or policy.</text> </level> <level label="d"> <text>An unintentional violation of this section may not constitute grounds to challenge or appeal:</text> <level label="1"> <text>the award of a procurement; or</text> </level> <level label="2"> <text>the process through which a procurement was conducted.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-503" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="5" subtitle_name="Emaryland Marketplace"> <level label="a"> <text>In this section, “restricted individual” has the meaning stated in § 5–501.1 of the General Provisions Article.</text> </level> <level label="b"> <text>The Department of General Services shall include with each notice of a procurement published on eMaryland Marketplace on or after October 1, 2025, a check–off box to indicate an ownership interest by the Governor or a restricted individual in the bidder or offeror as reported under § 5–501.1 of the General Provisions Article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-601" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6" subtitle_name="Apprenticeship Requirements for Public Works Contracts"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Applicable percentage” means the percentage of total labor hours of work on a covered project, including construction, alteration, and repair work, performed by a qualifying apprentice or journeyworker established under § 17–602.1 of this subtitle.</text> </level> <level label="c"> <text>“Apprenticeship cohort” has the meaning stated in § 14–801 of this article.</text> </level> <level label="d"> <text>“Apprenticeship training program” means an apprenticeship training program that:</text> <level label="1"> <text>is registered with, and approved by, the Apprenticeship and Training Council or the U.S. Department of Labor; and</text> </level> <level label="2"> <text>if the program has graduated at least one apprenticeship cohort, has a completion rate of at least 25%, as verified by the Department.</text> </level> </level> <level label="e"> <text>“Completion rate” has the meaning stated in § 14–801 of this article.</text> </level> <level label="f"> <text>“Covered craft” means a classification of workers listed in the prevailing wage determination applicable to the covered project.</text> </level> <level label="g"> <text>“Covered project” means a project for the construction of a public work that is subject to Subtitle 2 of this title.</text> </level> <level label="h"> <text>“Department” means the Maryland Department of Labor.</text> </level> <level label="i"> <text>“Fund” means the State Apprenticeship Training Fund established under § 17–602 of this subtitle.</text> </level> <level label="j"> <text>“Group joint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="k"> <text>“Group nonjoint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="l"> <text>“Individual joint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="m"> <text>“Individual nonjoint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="n"> <text>“Labor hours” means the total number of hours devoted to the performance of construction, alteration, or repair work by any individual and excludes hours worked by:</text> <level label="1"> <text>foremen;</text> </level> <level label="2"> <text>superintendents;</text> </level> <level label="3"> <text>owners; or</text> </level> <level label="4"> <text>any person employed in a bona fide executive, administrative, or professional capacity, as defined in 29 C.F.R. Part 541.</text> </level> </level> <level label="o"> <text>“Participates in an apprenticeship training program” means that a contractor or subcontractor makes regular financial contributions for each covered craft to apprenticeship training programs for covered crafts during the term of the covered project that are at least equal to the hourly fringe benefit contribution rates required for apprenticeship training by the applicable prevailing wage determination for the project, as specified by the Secretary.</text> </level> <level label="p"> <text>“Qualifying apprentice or journeyworker” means an individual who:</text> <level label="1"> <text>has graduated from a registered apprenticeship training program within 3 years before the start date of the covered project;</text> </level> <level label="2"> <text>is currently completing, or has completed within 3 years before the start date of the covered project, the equivalent of an apprenticeship in length and content of work experience and all requirements in the apprenticeship standards for a craft; or</text> </level> <level label="3"> <text>is enrolled in a registered apprenticeship training program.</text> </level> </level> <level label="q"> <text>“Qualified apprenticeship program” means a preapprenticeship program, apprenticeship program, or workforce development program that is affiliated with or provides participants with access to a registered apprenticeship training program that has a completion rate of at least 25%, as determined by the Department.</text> </level> <level label="r"> <text>“Secretary” means the Secretary of Labor.</text> </level> <level label="s"> <text>“Waiver apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-601.1" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6" subtitle_name="Apprenticeship Requirements for Public Works Contracts"> <text>Nothing in this subtitle may preempt a local law or policy providing for additional skilled and trained workforce requirements on public works projects.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-602" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6" subtitle_name="Apprenticeship Requirements for Public Works Contracts"> <level label="a"> <text>There is a State Apprenticeship Training Fund in the Department.</text> </level> <level label="b"> <text>The Fund consists of:</text> <level label="1"> <text>payments made by contractors or subcontractors in accordance with this subtitle and Subtitle 6A of this title;</text> </level> <level label="2"> <text>penalties collected as a result of violations of this subtitle and Subtitle 6A of this title;</text> </level> <level label="3"> <text>penalties collected as a result of violations of Title 14, Subtitle 8 of this article; and</text> </level> <level label="4"> <text>any money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="c"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this article.</text> </level> <level label="d"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> <level label="e"> <text>The Secretary shall use money in the Fund to:</text> <level label="1"> <text>subject to subsection (f) of this section, promote or support preapprenticeship programs, apprenticeship programs, and other workforce development programs; and</text> </level> <level label="2"> <text>pay any costs associated with carrying out the provisions of this subtitle and Subtitle 6A of this title or Title 14, Subtitle 8 of this article.</text> </level> </level> <level label="f"> <text>Funds distributed under subsection (e)(1) of this section shall be awarded only to qualified apprenticeship programs.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-602.1" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6" subtitle_name="Apprenticeship Requirements for Public Works Contracts"> <level label="a"> <text>For construction on a covered project for which a public body advertises for bids or proposals for a public works contract on or after January 1, 2027, the applicable percentage is 20%.</text> </level> <level label="b"> <level label="1"> <text>On or before December 31, 2028, and every other December 31 thereafter, the Secretary shall set the applicable percentage that will apply for the following calendar year.</text> </level> <level label="2"> <text>The applicable percentage adopted under this subsection shall be based on, over the previous 2 years:</text> <level label="i"> <text>enrollment in State apprenticeship programs; and</text> </level> <level label="ii"> <text>actual apprenticeship utilization on public works projects.</text> </level> </level> </level> <level label="c"> <text>The Secretary may alter the applicable percentage for a covered project to meet any ratio requirements necessary for apprentice or journeyworker supervision in the covered craft.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-603" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6" subtitle_name="Apprenticeship Requirements for Public Works Contracts"> <level label="a"> <text>A contractor that is awarded a procurement contract for a covered project shall provide to a unit, as a condition of receiving the contract, written verification that:</text> <level label="1"> <text>the contractor participates in an apprenticeship training program for each covered craft in which it will employ persons for the covered project and is employing the number of qualifying new apprentices or journeyworkers for a covered project necessary to meet the applicable percentage for the covered project;</text> </level> <level label="2"> <text>the contractor will make payments to the Fund in accordance with § 17–605 of this subtitle; or</text> </level> <level label="3"> <text>the contractor will make payments in amounts determined under § 17–605 of this subtitle to a qualified apprenticeship program for the purpose of supporting these programs.</text> </level> </level> <level label="b"> <text>The written verification required under subsection (a) of this section shall be provided by a contractor to the unit responsible for the project before the contractor commences performance under the procurement contract.</text> </level> <level label="c"> <text>Organizations that have qualified apprenticeship programs and receive funds from contractors under subsection (a)(3) of this section shall certify to the Secretary that all funds received are used solely for the purpose of improving or expanding apprenticeship training in the State.</text> </level> <level label="d"> <text>The Secretary shall adopt regulations to establish a process for auditing organizations that provide qualified apprenticeship programs to ensure that all funds received under subsection (a)(3) of this section are used solely to improve and expand apprenticeship programs in the State.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-604" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6" subtitle_name="Apprenticeship Requirements for Public Works Contracts"> <level label="a"> <text>A subcontractor that performs work at a value exceeding the small procurement amount specified in § 13–109 of this article for a covered project shall provide to a unit written verification that:</text> <level label="1"> <text>the subcontractor participates in an apprenticeship training program for each covered craft in which it will employ persons and is employing the number of qualifying new apprentices or journeyworkers for a covered project necessary to meet the applicable percentage for the covered project;</text> </level> <level label="2"> <text>the subcontractor will make payments to the Fund in accordance with § 17–605 of this subtitle; or</text> </level> <level label="3"> <text>the subcontractor will make payments in amounts determined under § 17–605 of this subtitle to a qualified apprenticeship program for the purpose of supporting these programs.</text> </level> </level> <level label="b"> <text>The written verification required under subsection (a) of this section shall be provided by a subcontractor to the unit responsible for the project before the subcontractor commences performance under the procurement contract.</text> </level> <level label="c"> <text>Organizations that have qualified apprenticeship programs and receive funds from contractors under subsection (a)(3) of this section shall certify to the Secretary that all funds received are used solely for the purpose of improving or expanding apprenticeship training in the State.</text> </level> <level label="d"> <text>The Secretary shall adopt regulations to establish a process for auditing organizations that provide qualified apprenticeship programs to ensure that all funds received under subsection (a)(3) of this section are used solely to improve and expand apprenticeship programs in the State.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-605" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6" subtitle_name="Apprenticeship Requirements for Public Works Contracts"> <level label="a"> <level label="1"> <text>A contractor or subcontractor shall make payments, as determined by the Secretary, not to exceed 25 cents per hour for each employee in each covered craft who is employed by the contractor or subcontractor on the covered project, if the contractor or subcontractor:</text> <level label="i"> <text>elects to make payments to the Fund or a qualified apprenticeship program in accordance with this subtitle; or</text> </level> <level label="ii"> <text>fails to meet their full qualifying new apprentice or journeyworker utilization requirement under this subtitle.</text> </level> </level> <level label="2"> <text>If the prevailing wage determination for a covered craft includes a fringe benefit contribution for apprenticeship programs that exceeds 25 cents, the contractor or subcontractor shall pay the difference to the employees in the covered craft in wages.</text> </level> <level label="3"> <text>Payments made under this section fulfill any obligations of the contractor or subcontractor regarding contributions for apprenticeship programs included in the prevailing wage determination under § 17–208 of this title.</text> </level> <level label="4"> <text>Payments made under paragraph (1) of this subsection are permissible deductions under § 17–215(b) of this title.</text> </level> <level label="5"> <text>Payments made to the Fund in accordance with paragraph (1) of this subsection shall be made on a monthly basis.</text> </level> </level> <level label="b"> <level label="1"> <text>If the Secretary determines that a contractor or subcontractor for a covered project has made contributions to an apprenticeship training program at rates lower than those required by this subtitle, or has failed to satisfy the qualifying new apprentice and journeyworker utilization requirement under this subtitle, the contractor or subcontractor shall make payments to the Fund equal to the pro rata difference between its contribution and the contribution rate required by this subtitle.</text> </level> <level label="2"> <text>Payments made to the Fund in accordance with paragraph (1) of this subsection shall be made on a monthly basis.</text> </level> </level> <level label="c"> <text>A contractor shall report all apprenticeship payments made under this subtitle on prevailing wage payroll records required by § 17–220 of this title.</text> </level> <level label="d"> <level label="1"> <text>A contractor or subcontractor that makes contributions to the Fund or a qualified apprenticeship program, or an organization that has registered apprenticeship programs may request that its contributions be directed to a specific preapprenticeship, apprenticeship, or workforce development program.</text> </level> <level label="2"> <text>The Secretary shall make a good–faith effort to accommodate requests received for contributions to the Fund in accordance with paragraph (1) of this subsection.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-605.1" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6" subtitle_name="Apprenticeship Requirements for Public Works Contracts"> <level label="a"> <text>While construction activity on a covered project is ongoing, each contractor and subcontractor performing work on the covered project shall submit a monthly report to the Department that includes:</text> <level label="1"> <text>for each apprentice or journeyworker:</text> <level label="i"> <text>the name of the apprentice or journeyworker;</text> </level> <level label="ii"> <text>the name of the associated apprenticeship training program; and</text> </level> <level label="iii"> <text>the apprentice registration or identification number;</text> </level> </level> <level label="2"> <text>the total number of apprentices and labor hours worked, categorized by trade or craft; and</text> </level> <level label="3"> <text>the total number of journeyworkers and labor hours worked, categorized by trade or craft.</text> </level> </level> <level label="b"> <text>Within 60 days after completing work on a covered project, each contractor and subcontractor shall submit to the Department a statement of the total number of labor hours of work on a covered project, including construction, alteration, and repair work, performed by an apprentice or journeyworker.</text> </level> <level label="c"> <text>The Department shall maintain on its website:</text> <level label="1"> <text>data aggregated from the reports received under subsections (a) and (b) of this section showing the use of qualifying new apprentices and journeyworkers on covered projects; and</text> </level> <level label="2"> <text>payments made by each contractor or subcontractor under § 17–605 of this subtitle.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-606" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6" subtitle_name="Apprenticeship Requirements for Public Works Contracts"> <level label="a"> <text>A contractor or subcontractor that fails to meet the requirements of this subtitle shall be liable for an amount equal to:</text> <level label="1"> <text>twice the amount of unpaid apprenticeship training contributions required by §§ 17–603 and 17–604 of this subtitle; and</text> </level> <level label="2"> <text>a fine of up to $10,000.</text> </level> </level> <level label="b"> <level label="1"> <text>In this subsection, “willfully” means representations or omissions known to be false or made with deliberate ignorance or reckless disregard for their truth or falsity.</text> </level> <level label="2"> <text>Any person, firm, or corporation that is found to have made willfully a false or fraudulent representation or omission regarding a material fact in connection with prevailing wage records required by this section shall be liable for a civil penalty in an amount of up to $1,000 for each employee and each falsified record.</text> </level> <level label="3"> <text>Penalties shall be recoverable by order of the Secretary and paid to the General Fund.</text> </level> </level> <level label="c"> <level label="1"> <text>The Secretary shall adopt regulations to establish administrative procedures for the collection of payments under this subtitle.</text> </level> <level label="2"> <level label="i"> <text>The Secretary may file suit to enforce this section in any court of competent jurisdiction.</text> </level> <level label="ii"> <text>In an action filed under this subsection, the court shall require the contractor or subcontractor to pay the amount required by subsection (a) of this section, including interest, reasonable counsel fees, and court costs.</text> </level> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-607" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6" subtitle_name="Apprenticeship Requirements for Public Works Contracts"> <text>The Secretary shall adopt regulations necessary to carry out the requirements of this subtitle.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-6A-01" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6A" subtitle_name="Apprenticeship Requirements for Capital Construction Projects"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Apprenticeship cohort” has the meaning stated in § 14–801 of this article.</text> </level> <level label="c"> <text>“Completion rate” has the meaning stated in § 14–801 of this article.</text> </level> <level label="d"> <text>“Construction” includes:</text> <level label="1"> <text>building;</text> </level> <level label="2"> <text>reconstructing;</text> </level> <level label="3"> <text>improving;</text> </level> <level label="4"> <text>enlarging;</text> </level> <level label="5"> <text>painting and decorating;</text> </level> <level label="6"> <text>altering;</text> </level> <level label="7"> <text>maintaining; and</text> </level> <level label="8"> <text>repairing.</text> </level> </level> <level label="e"> <level label="1"> <text>“Covered contract” means a contract:</text> <level label="i"> <text>for a capital construction project funded with at least $1,000,000 of funds in the State capital budget;</text> </level> <level label="ii"> <text>entered into by the recipient of the funding in the State capital budget and a contractor, or the contractor and a subcontractor; and</text> </level> <level label="iii"> <text>for an amount of $500,000 or more.</text> </level> </level> <level label="2"> <text>“Covered contract” does not include a contract for a covered project as defined in § 17–601(d) of this title.</text> </level> </level> <level label="f"> <text>“Department” means the Maryland Department of Labor.</text> </level> <level label="g"> <text>“Fund” means the State Apprenticeship Training Fund established under § 17–602 of this title.</text> </level> <level label="h"> <text>“Group joint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="i"> <text>“Group nonjoint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="j"> <text>“Individual joint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="k"> <text>“Individual nonjoint apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> <level label="l"> <text>“Registered apprenticeship program” means an apprenticeship program that:</text> <level label="1"> <text>is registered with, and approved by, the Department or the United States Department of Labor; and</text> </level> <level label="2"> <text>if the program has graduated at least one apprenticeship cohort, has a completion rate of at least 25%, as verified by the Department.</text> </level> </level> <level label="m"> <text>“Secretary” means the Secretary of Labor.</text> </level> <level label="n"> <text>“Waiver apprenticeship program” has the meaning stated in § 14–801 of this article.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-6A-02" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6A" subtitle_name="Apprenticeship Requirements for Capital Construction Projects"> <level label="a"> <text>Except as provided in subsection (b) of this section, each contractor or subcontractor awarded a covered contract shall:</text> <level label="1"> <level label="i"> <text>be affiliated with a registered apprenticeship program; and</text> </level> <level label="ii"> <text>use apprentices from a registered apprenticeship program for each craft or trade in which the contractor or subcontractor employs persons to complete the covered contract;</text> </level> </level> <level label="2"> <text>make payments to the Fund; or</text> </level> <level label="3"> <text>make payments in amounts determined under § 17–6A–03 of this subtitle to a registered apprenticeship program for the purpose of supporting the program.</text> </level> </level> <level label="b"> <text>A contractor or subcontractor is not subject to the requirements of subsection (a) of this section if there are no registered apprenticeship programs for the craft or trade in which the contractor or subcontractor employs persons to complete the covered contract.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-6A-03" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6A" subtitle_name="Apprenticeship Requirements for Capital Construction Projects"> <level label="a"> <level label="1"> <text>A contractor or subcontractor that elects to make payments to the Fund in accordance with this subtitle shall make payments, as determined by the Secretary, not to exceed 25 cents per hour for each employee who is employed by the contractor or subcontractor to complete the covered contract.</text> </level> <level label="2"> <text>Payments made to the Fund in accordance with this subsection shall be made on a monthly basis.</text> </level> </level> <level label="b"> <level label="1"> <text>If the Secretary determines that a contractor or subcontractor awarded a covered contract has made contributions to a registered apprenticeship program at rates lower than those required by this subtitle, the contractor or subcontractor shall make payments to the Fund for the difference between its contribution and the contribution rate required by this subtitle.</text> </level> <level label="2"> <text>Payments made to the Fund in accordance with this subsection shall be made on a monthly basis.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-6A-04" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6A" subtitle_name="Apprenticeship Requirements for Capital Construction Projects"> <level label="a"> <level label="1"> <text>A contractor or subcontractor that makes contributions to the Fund or a registered apprenticeship program may request that the contributions of the contractor or subcontractor be directed to a specific preapprenticeship or workforce development program.</text> </level> <level label="2"> <text>The Secretary shall make a good–faith effort to accommodate requests received in accordance with paragraph (1) of this subsection.</text> </level> </level> <level label="b"> <text>A registered apprenticeship program that receives funds from contractors or subcontractors under § 17–6A–02(a)(3) of this subtitle shall certify to the Secretary that all funds received are used solely for the purpose of improving or expanding apprenticeship training.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-6A-05" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6A" subtitle_name="Apprenticeship Requirements for Capital Construction Projects"> <level label="a"> <text>The Secretary shall adopt regulations to carry out the provisions of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>The regulations shall establish the process for a contractor or subcontractor to provide written verification to the Department that the requirements of this subtitle have been met.</text> </level> <level label="2"> <text>If a contractor or subcontractor is affiliated with a registered apprenticeship program, the regulations shall require the registered apprenticeship program to provide written documentation to the contractor or subcontractor verifying the affiliation.</text> </level> </level> <level label="c"> <text>The regulations shall establish a process for auditing organizations that provide registered apprenticeship programs to ensure that all funds received by a registered apprenticeship program under § 17–6A–02(a)(3) of this subtitle are used solely to improve and expand apprenticeship programs in the State.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-6A-06" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="6A" subtitle_name="Apprenticeship Requirements for Capital Construction Projects"> <level label="a"> <text>A contractor or subcontractor that fails to meet the requirements of this subtitle shall be liable for an amount equal to twice the amount of unpaid apprenticeship contributions required by this subtitle.</text> </level> <level label="b"> <level label="1"> <text>In this subsection, “willfully” means a representation or an omission known to be false or made with deliberate ignorance or reckless disregard for truth or falsity.</text> </level> <level label="2"> <level label="i"> <text>Any person, firm, or corporation that is found to have made willfully a false or fraudulent representation or omission regarding a material fact in connection with contributions required by this subtitle shall be liable for a civil penalty in an amount of up to $1,000 for each employee for whom contributions are required and each falsification.</text> </level> <level label="ii"> <text>A penalty shall be recoverable in a civil action and paid to the State.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>The Secretary may file suit to enforce this section in any court of competent jurisdiction.</text> </level> <level label="2"> <text>In an action filed under this subsection, the court shall require the contractor or subcontractor to pay the amount required by subsection (a) of this section, including interest, reasonable counsel fees, and court costs.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-701" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="7" subtitle_name="Investment Activities in Iran"> <text>** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **</text> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Energy sector of Iran” means activities to develop petroleum or natural gas resources or nuclear power in Iran.</text> </level> <level label="c"> <text>“Financial institution” has the meaning stated in Section 14 of the Iran Sanctions Act of 1996 (Public Law 104–172).</text> </level> <level label="d"> <text>“Iran” includes the government of Iran and any agency or instrumentality of Iran.</text> </level> <level label="e"> <text>“Person” includes:</text> <level label="1"> <text>a natural person, corporation, company, limited liability company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group;</text> </level> <level label="2"> <text>a governmental entity or instrumentality of a government, including a multilateral development institution, as defined by the federal International Financial Institutions Act, 22 U.S.C. 262r(c)(3); or</text> </level> <level label="3"> <text>any parent, successor, subunit, direct or indirect subsidiary of, or any entity under common ownership or control with, an entity described in item (1) or (2) of this subsection.</text> </level> </level> <level label="f"> <text>“Public body” means:</text> <level label="1"> <text>the State;</text> </level> <level label="2"> <text>a county, municipal corporation, or other political subdivision;</text> </level> <level label="3"> <text>a public instrumentality; or</text> </level> <level label="4"> <text>any governmental unit authorized to award a contract.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-702" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="7" subtitle_name="Investment Activities in Iran"> <text>** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **</text> <level label="a"> <text>For purposes of this subtitle, a person engages in investment activities in Iran if:</text> <level label="1"> <text>the person provides goods or services of $20,000,000 or more in the energy sector of Iran, including a person that provides oil or liquefied natural gas tankers or products used to construct or maintain pipelines used to transport oil or liquefied natural gas for the energy sector of Iran; or</text> </level> <level label="2"> <text>the person is a financial institution that extends $20,000,000 or more in credit to another person for 45 days or more if the person to whom the credit is extended:</text> <level label="i"> <text>will use the credit to provide goods or services in the energy sector of Iran as described in item (1) of this subsection; and</text> </level> <level label="ii"> <text>is, at the time of the extension of credit, identified on a list created under § 17–704 of this subtitle as a person engaging in investment activities in Iran.</text> </level> </level> </level> <level label="b"> <text>If the Board determines that the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 has been amended or any other federal act or law has been enacted or amended that authorizes or requires the reduction of the dollar amounts provided for in this section or otherwise alters the parameters of investment activities in Iran for the purpose of imposing sanctions, the Board shall adopt regulations to reduce the dollar amounts or alter the parameters.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-703" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="7" subtitle_name="Investment Activities in Iran"> <text>** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **</text> <text>A person that, at the time of bid or proposal for a new contract or renewal of an existing contract, is identified on a list created by the Board under § 17–704 of this subtitle as a person engaging in investment activities in Iran is ineligible to, and may not bid on, submit a proposal for, or enter into or renew a contract with a public body for goods or services.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-704" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="7" subtitle_name="Investment Activities in Iran"> <text>** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **</text> <level label="a"> <level label="1"> <text>On or before December 31, 2012, the Board shall use credible information available to the public to create a list of persons that the Board determines to be engaged in investment activities in Iran as described in § 17–702 of this subtitle.</text> </level> <level label="2"> <text>The Board shall update the list at least every 180 days.</text> </level> <level label="3"> <text>Before the Board includes a person on the list, the Board shall provide the person with 90 days’ written notice that:</text> <level label="i"> <text>the Board intends to include the person on the list; and</text> </level> <level label="ii"> <text>inclusion on the list would make the person ineligible to bid on, submit a proposal for, or enter into or renew a contract with a public body for goods or services.</text> </level> </level> <level label="4"> <text>The notice required under paragraph (3) of this subsection shall specify that if the person ceases engagement in investment activities in Iran as described in § 17–702 of this subtitle, the person may become eligible for a future contract or contract renewal with a public body for goods or services on removal from the list.</text> </level> </level> <level label="b"> <level label="1"> <text>The Board shall provide a person with an opportunity to comment in writing to the Board that the person is not engaged in investment activities in Iran.</text> </level> <level label="2"> <text>If the person demonstrates to the Board that the person is not engaged in investment activities in Iran as described in § 17–702 of this subtitle, the Board may not include the person on the list.</text> </level> </level> <level label="c"> <text>The Board shall remove a person from the list if the person demonstrates to the Board that the person no longer is engaged in investment activities in Iran as described in § 17–702 of this subtitle.</text> </level> <level label="d"> <text>The Board shall make every reasonable effort to avoid erroneously including a person on the list.</text> </level> <level label="e"> <text>The Board shall publish the list on the Internet.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-705" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="7" subtitle_name="Investment Activities in Iran"> <text>** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **</text> <level label="a"> <text>On or after January 1, 2013, a public body shall require a person that submits a bid or proposal to the public body for a contract for goods or services, or otherwise proposes to enter into or renew a contract for goods or services with the public body, to:</text> <level label="1"> <text>certify at the time the bid is submitted or the contract is renewed that the person:</text> <level label="i"> <text>is not identified on the list created by the Board as a person engaging in investment activities in Iran as described in § 17–702 of this subtitle; and</text> </level> <level label="ii"> <text>is not engaging in investment activities in Iran as described in § 17–702 of this subtitle; or</text> </level> </level> <level label="2"> <text>if the person is unable to make the certification under item (1) of this subsection, provide the public body, under penalty of perjury, a detailed description of the person’s investment activities in Iran.</text> </level> </level> <level label="b"> <text>A public body shall submit any information provided to the public body under subsection (a)(2) of this section to the Board.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-706" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="7" subtitle_name="Investment Activities in Iran"> <text>** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **</text> <level label="a"> <level label="1"> <text>If a public body, using credible information available to the public, determines that a person has submitted a false certification under § 17–705(a)(1) of this subtitle, the public body shall provide written notice to the person and an opportunity for the person to demonstrate in writing that the person is not engaged in investment activities in Iran.</text> </level> <level label="2"> <text>If the person fails to demonstrate to the public body within 90 days after the public body provides notice under paragraph (1) of this subsection that the person is not engaged in investment activities in Iran, the public body shall report to the Board and the Attorney General:</text> <level label="i"> <text>the name of the person determined to have submitted a false certification; and</text> </level> <level label="ii"> <text>the information on which the public body made its decision.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The Attorney General may institute an action against a person determined to have submitted a false certification under § 17–705(a)(1) of this subtitle.</text> </level> <level label="2"> <text>An action brought under this section shall be brought within 3 years from the date the certification is made.</text> </level> </level> <level label="c"> <text>If, in an action brought under this section, a court determines that a person submitted a false certification:</text> <level label="1"> <text>the person shall pay all reasonable costs and fees incurred in the civil action, including:</text> <level label="i"> <text>any costs incurred by the public body for the investigation that led to the finding of the false certification; and</text> </level> <level label="ii"> <text>all reasonable costs and fees incurred by the Attorney General in bringing the action;</text> </level> </level> <level label="2"> <text>the court may impose a civil penalty equal to the greater of $1,000,000 or twice the amount of the contract for which the false certification was submitted;</text> </level> <level label="3"> <text>the public body may terminate the contract for which the false certification was submitted; and</text> </level> <level label="4"> <text>the person is ineligible to bid on a contract with a public body for a period of 3 years from the date of the court order.</text> </level> </level> <level label="d"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, an unsuccessful bidder or any other person may not protest the award of a contract or contract renewal on the basis of a false certification.</text> </level> <level label="2"> <text>Paragraph (1) of this subsection does not prohibit a public body from filing a protest objecting to the award of a contract or contract renewal on the basis of a false certification.</text> </level> </level> <level label="e"> <text>This subtitle does not create or authorize a private right of action.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-707" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="7" subtitle_name="Investment Activities in Iran"> <text>** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 **</text> <text>This subtitle preempts any law, ordinance, rule, or regulation of any local governing body involving procurement contracts for goods or services with a person engaged in investment activities in Iran. </text> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-801" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="8" subtitle_name="Responsible Payment of Employee Health Care Expenses"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Aggregate employee health care expenses” means all employee health care expenses paid by a responsible bidder or subcontractor.</text> </level> <level label="c"> <level label="1"> <text>“Aggregate Social Security wages” means all wages paid by a responsible bidder or subcontractor to an employee for the period of time in which the wages are paid.</text> </level> <level label="2"> <text>“Aggregate Social Security wages” does not include wages that are above the federal Social Security contribution and benefit base.</text> </level> </level> <level label="d"> <text>“Employee” means an individual who is employed by a responsible bidder, contractor, or subcontractor to work on or at the site of a State–funded construction project.</text> </level> <level label="e"> <level label="1"> <text>“Employee health care expenses” means any costs for health care services that are paid by a responsible bidder or subcontractor to an employee, unless the employee has coverage under another plan.</text> </level> <level label="2"> <text>“Employee health care expenses” includes:</text> <level label="i"> <text>contributions made on behalf of an employee to provide credible health care coverage in the form of any group policy, contract, or program that is written or administered by a disability insurer, health care service plan, fraternal benefits society, self–insured employer plan, or any other entity, in this State or elsewhere, that arranges or provides medical, hospital, and surgical coverage not designated to supplement other private or governmental plans;</text> </level> <level label="ii"> <text>contributions made on behalf of an employee to a health savings account as defined under § 223 of the Internal Revenue Code or to any other account having a substantially equivalent purpose or effect without regard to whether the contributions qualify for a tax deduction or are excludable from employee income;</text> </level> <level label="iii"> <text>reimbursements to an employee for expenses incurred in the purchase of health care services;</text> </level> <level label="iv"> <text>payments to a third party for the purpose of providing health care services for an employee;</text> </level> <level label="v"> <text>payments under a collective bargaining agreement for the purpose of providing health care services for an employee; and</text> </level> <level label="vi"> <text>costs incurred in the direct delivery of health care services to an employee.</text> </level> </level> </level> <level label="f"> <text>“Health care services” means medical care, services, or goods that:</text> <level label="1"> <text>qualify as a tax deductible expense under § 213 of the Internal Revenue Code; or</text> </level> <level label="2"> <text>have a substantially equivalent purpose to medical care, services, or goods that qualify as a tax deductible expense under § 213 of the Internal Revenue Code.</text> </level> </level> <level label="g"> <text>“Subcontractor” means a person:</text> <level label="1"> <text>listed on a responsive bid to provide construction services under a portion of a contract with the State; or</text> </level> <level label="2"> <text>added to a contract with the State after the contract is awarded in order to provide construction services under a portion of the contract.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-802" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="8" subtitle_name="Responsible Payment of Employee Health Care Expenses"> <level label="a"> <text>Subject to subsection (b) of this section, the Board shall adopt regulations that require all bidders, contractors, and subcontractors to pay employee health care expenses as required by this subtitle.</text> </level> <level label="b"> <text>This subtitle does not apply to:</text> <level label="1"> <text>a minority business enterprise, as defined under Title 14, Subtitle 3 of this article; or</text> </level> <level label="2"> <text>a small business with 30 or fewer employees.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-803" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="8" subtitle_name="Responsible Payment of Employee Health Care Expenses"> <level label="a"> <text>By regulation, the Department of General Services and the Department of Transportation shall establish procedures for each bidder, contractor, or subcontractor that performs work on a State–funded construction project to certify that the bidder, contractor, or subcontractor pays employee health care expenses in accordance with subsection (b) of this section.</text> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a bidder, contractor, or subcontractor shall demonstrate the payment of employee health care expenses by submitting certification or a valid contract to the Department of General Services or the Department of Transportation evidencing that, with respect to the employees who will work on or at the site of the project:</text> <level label="i"> <text>the bidder, contractor, or subcontractor pays aggregate employee health care expenses of at least 5% of the aggregate Social Security wages paid by the bidder, contractor, or subcontractor; or</text> </level> <level label="ii"> <text>the bidder, contractor, or subcontractor pays 50% or more of the required premium necessary to obtain coverage by a credible health care insurance plan.</text> </level> </level> <level label="2"> <text>Before July 1, 2021, a bidder, contractor, or subcontractor may demonstrate payment of employee health care expenses by submitting certification or a valid contract to the Department of General Services or the Department of Transportation evidencing, with respect to the employees who will work on or at the site of the project, that:</text> <level label="i"> <text>under a contract with a credible health care insurance plan or through a collective bargaining agreement, the bidder, contractor, or subcontractor pays some portion of employee health care expenses; and</text> </level> <level label="ii"> <text>the bidder, contractor, or subcontractor will meet the requirements of paragraph (1) of this subsection on renewal of the contract or collective bargaining agreement.</text> </level> </level> </level> <level label="c"> <text>The Department of General Services and the Department of Transportation shall collaborate with the Maryland Department of Labor to develop the form required for certification under subsection (b) of this section.</text> </level> <level label="d"> <text>A procurement officer may require a responsible bidder or subcontractor to submit records to the procurement officer that are sufficient to support the certification that the bidder or subcontractor submitted in accordance with subsection (b) of this section.</text> </level> <level label="e"> <text>If a responsible bidder that is awarded a contract to work on a State–funded construction project fails to submit records required under this section within a reasonable period of time, the procurement officer may void the contract.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-804" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="8" subtitle_name="Responsible Payment of Employee Health Care Expenses"> <level label="a"> <text>A person or an entity may not provide false information under this subtitle.</text> </level> <level label="b"> <text>A person who violates subsection (a) of this section shall be subject to a civil penalty of not less than $2,500 and not exceeding $25,000 for each violation.</text> </level> <level label="c"> <text>An action for a civil penalty under this section may be brought by:</text> <level label="1"> <text>the unit that awarded the contract, in its own name;</text> </level> <level label="2"> <text>the Attorney General, in the name of the State; or</text> </level> <level label="3"> <text>a State’s Attorney, in the name of the State.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="17-901" title_number="17" title_name="Special Provisions -- State and Local Subdivisions" subtitle_number="9" subtitle_name="Baltimore City"> <level label="a"> <text>In this section, “bus lane system operator” has the meaning stated in § 21–1133 of the Transportation Article.</text> </level> <level label="b"> <level label="1"> <text>If the City of Baltimore elects to designate a contractor to serve as the bus lane system operator for the City of Baltimore, the City of Baltimore shall issue a competitive request for proposals to select the contractor.</text> </level> <level label="2"> <text>If the Baltimore City Police Department elects to designate a contractor to administer and process civil citations issued under § 21–1134 of the Transportation Article, the City of Baltimore shall issue a competitive request for proposals to select the contractor.</text> </level> </level> <level label="c"> <text>If the City of Baltimore issues a request for proposals under subsection (b) of this section, the City of Baltimore shall apply the relevant procurement preferences for minority and women’s business enterprises and consider the procurement participation goals regarding minority and women’s business enterprises in selecting a contractor.</text> </level> </section>