Md. Code, State Finance and Procurement, Title 17

Md. Code, State Finance and Procurement, Title 17
in effect

Md. Code, State Finance and Procurement § 17-6A-01

(a) In this subtitle the following words have the meanings indicated. (b) “Construction” includes: (1) building; (2) reconstructing; (3) improving; (4) enlarging; (5) painting and decorating; (6) altering; (7) maintaining; and (8) repairing. (c) (1) “Covered contract” means a contract: (i) for a capital construction project funded with at least $1,000,000 of funds in the State capital budget; (ii) entered into by the recipient of the funding in the State capital budget and a contractor, or the contractor and a subcontractor; and (iii) for an amount of $500,000 or more. (2) “Covered contract” does not include a contract for a covered project as defined in § 17–601(d) of this title. (d) “Department” means the Maryland Department of Labor. (e) “Fund” means the State Apprenticeship Training Fund established under § 17–602 of this title. (f) “Registered apprenticeship program” means an apprenticeship program that is registered with, and approved by, the Department or the United States Department of Labor. (g) “Secretary” means the Secretary of Labor.

Md. Code, State Finance and Procurement § 17-6A-02

(a) Except as provided in subsection (b) of this section, each contractor or subcontractor awarded a covered contract shall: (1) (i) be affiliated with a registered apprenticeship program; and (ii) 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; (2) make payments to the Fund; or (3) make payments in amounts determined under § 17–6A–03 of this subtitle to a registered apprenticeship program for the purpose of supporting the program. (b) 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.

Md. Code, State Finance and Procurement § 17-6A-03

(a) (1) 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. (2) Payments made to the Fund in accordance with this subsection shall be made on a monthly basis. (b) (1) 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. (2) Payments made to the Fund in accordance with this subsection shall be made on a monthly basis.

Md. Code, State Finance and Procurement § 17-6A-04

(a) (1) 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. (2) The Secretary shall make a good–faith effort to accommodate requests received in accordance with paragraph (1) of this subsection. (b) 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.

Md. Code, State Finance and Procurement § 17-6A-05

(a) The Secretary shall adopt regulations to carry out the provisions of this subtitle. (b) (1) 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. (2) 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. (c) 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.

Md. Code, State Finance and Procurement § 17-6A-06

(a) 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. (b) (1) 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. (2) (i) 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. (ii) A penalty shall be recoverable in a civil action and paid to the State. (c) (1) The Secretary may file suit to enforce this section in any court of competent jurisdiction. (2) 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.

Md. Code, State Finance and Procurement § 17-101

(a) In this subtitle the following words have the meanings indicated. (b) “Payment security” means security to guarantee payment for labor and materials, including leased equipment, under a contract for construction. (c) “Performance security” means security to guarantee the performance of a contract for construction. (d) “Public body” means: (1) the State; (2) a county, municipal corporation, or other political subdivision; (3) a public instrumentality; or (4) any governmental unit authorized to award a contract. (e) (1) “Supplier” means a person who supplies labor or materials. (2) “Supplier” includes a lessor of equipment to the extent of the fair rental value of the equipment.

Md. Code, State Finance and Procurement § 17-102

(a) 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. (b) This subtitle applies only to security for a construction contract. (c) (1) 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: (i) that does not exceed $200,000; and (ii) for which State money is not used. (2) The program shall provide for payment security of at least 50% of the total amount payable under the contract.

Md. Code, State Finance and Procurement § 17-103

(a) (1) 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. (2) The security shall be: (i) for performance security, in an amount that the public body considers adequate for its protection; and (ii) for payment security, at least 50% of the total amount payable under the contract. (b) 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: (1) the contract exceeds $100,000 but does not exceed the small procurement amount specified in § 13–109 of this article; and (2) the amount of the security does not exceed 50% of the contract amount.

Md. Code, State Finance and Procurement § 17-104

(a) Payment security or performance security required under this subtitle shall be: (1) a bond executed by a surety company authorized to do business in the State; (2) cash in an amount equivalent to a bond; or (3) other security that is satisfactory to the public body awarding the contract. (b) (1) 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. (2) 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. (3) 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.

Md. Code, State Finance and Procurement § 17-105

(a) Security under this subtitle: (1) if required by the State or a unit of the State government, shall be payable to “the State of Maryland”; or (2) if required by any other public body, shall be payable to that public body. (b) The form of payment security or performance security shall be approved: (1) for the State or a unit of the State government, by the Attorney General; and (2) for any other public body, by its attorney. (c) The contractor shall file the security or evidence of a trust account established as security: (1) if payable to the State under this section, in the Office of the Comptroller; or (2) if payable to any other public body, in the appropriate office of that public body.

Md. Code, State Finance and Procurement § 17-106

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: (1) have been paid from the proceeds of previous progress payments; and (2) will be paid in a timely manner from the proceeds of the progress or final payment currently due.

Md. Code, State Finance and Procurement § 17-107

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.

Md. Code, State Finance and Procurement § 17-108

(a) Subject to subsection (b) of this section, a supplier may sue on payment security if the supplier: (1) supplied labor or materials in the prosecution of work provided for in a contract subject to this subtitle; and (2) 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. (b) (1) 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. (2) A notice under this subsection: (i) shall state with substantial accuracy the amount claimed and the person to whom the labor or material was supplied; and (ii) 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. (c) (1) 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: (i) a certified copy of the payment bond; or (ii) for other security, a certified statement of the security. (2) 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. (3) A certification under this section is prima facie evidence of the contents, execution, and delivery of payment security. (d) (1) 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. (2) 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. (3) A provision of a contract made in violation of this subsection is void as against the public policy of the State.

Md. Code, State Finance and Procurement § 17-109

(a) An action on a payment bond required by this subtitle shall be filed in the appropriate court of the county where: (1) the contract was executed and performed; or (2) the contractor has its principal place of business. (b) 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. (c) 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.

Md. Code, State Finance and Procurement § 17-110

(a) 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. (b) (1) 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. (2) 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. (3) 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. (4) 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. (c) (1) A contractor may not retain a percentage of payments due a subcontractor that exceeds the percentage of payments retained by the public body. (2) 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. (d) (1) A subcontractor may not retain a percentage of payments due a lower tier subcontractor that exceeds the percentage of payments retained from the subcontractor. (2) 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. (e) This section may not be construed to limit the application of the remaining provisions of this subtitle.

Md. Code, State Finance and Procurement § 17-201

(a) In this subtitle, unless the context indicates otherwise, the following words have the meanings indicated. (b) “Apprentice” means an individual who: (1) is at least 16 years old; (2) has signed with an employer or employer’s agent, an association of employers, an organization of employees, or a joint committee from both, an agreement including a statement of: (i) the trade, craft, or occupation that the individual is learning; and (ii) the beginning and ending dates of the apprenticeship; and (3) is registered in a program of the Council or the Office of Apprenticeship of the United States Department of Labor. (c) “Commissioner” means: (1) the Commissioner of Labor and Industry; (2) the Deputy Commissioner of Labor and Industry; or (3) an authorized representative of the Commissioner. (d) “Construction” includes all: (1) building; (2) reconstructing; (3) improving; (4) enlarging; (5) painting and decorating; (6) altering; (7) maintaining; (8) repairing; and (9) services provided under a mechanical systems service contract. (e) “Council” means the Apprenticeship and Training Council. (f) (1) “Employee” means an apprentice or worker employed by a contractor or subcontractor under a public work contract. (2) “Employee” does not include an individual employed by a public body. (g) (1) “Locality” means the county in which the work is to be performed. (2) If the public work is located within 2 or more counties, the locality includes all counties in which the public work is located. (h) “Mechanical systems service contract” means a contract for:

Md. Code, State Finance and Procurement § 17-202

(a) This subtitle does not limit: (1) the hours of work an employee may work in a particular period of time; or (2) the right of a contractor to pay an employee under a public work contract more than the prevailing wage rate. (b) Except as provided in subsection (e) of this section, this subtitle does not apply to: (1) a public work contract of less than $250,000; or (2) the part of a public work contract for which the federal government provides money if, as to that part, the contractor is required to pay the prevailing wage rate as determined by the United States Secretary of Labor. (c) If this subtitle and the federal Davis–Bacon Act apply and the federal act is suspended, the Governor may declare this subtitle suspended for the same period for: (1) the part of that public work contract for which the United States Secretary of Labor would have been required to make a determination of a prevailing wage rate; or (2) that entire public work contract. (d) (1) Subject to paragraph (2) of this subsection, this subtitle applies to the construction of a structure or work, including a bridge, a building, a ditch, a road, an alley, a waterwork, or a sewage disposal plant, funded with bond proceeds from bonds issued in accordance with Title 12, Subtitle 2 of the Economic Development Article that is located in a designated tax increment financing development district created on or after July 1, 2018, established under State or local law. (2) This subsection applies to the construction of a structure or work only if a political subdivision of the State, Baltimore City, or the Revenue Authority of Prince George’s County authorizes that the construction of the structure or work is subject to this subtitle. (e) This subtitle applies to a mechanical systems service contract that is 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).

Md. Code, State Finance and Procurement § 17-204

(a) (1) The Commissioner shall adopt regulations reasonably required to carry out this subtitle. (2) The regulations may include exemptions for minimum number of hours worked or workers employed. (3) Payroll records shall be kept in accordance with those regulations. (b) 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: (1) describes the activities of the Commissioner under this subtitle during the preceding calendar year; and (2) includes: (i) full information about the operation of this subtitle; and (ii) other information about prevailing wage rates, as the Commissioner desires.

Md. Code, State Finance and Procurement § 17-205

(a) A contractor or subcontractor under a public work contract subject to this subtitle: (1) shall employ only competent workers and apprentices who qualify under subsection (b) of this section; (2) may not employ any individual classified as a helper or trainee; and (3) 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: (i) the refusal is in conflict or otherwise inconsistent with a federal law applicable to the public work; (ii) the federal government is to pay wholly or partly for the public work; and (iii) the inconsistency with federal law jeopardizes the availability of federal funds for the public work. (b) An apprentice under a public work contract shall be part of and used in accordance with an apprenticeship program registered with the Council and approved by the Office of Apprenticeship of the United States Department of Labor.

Md. Code, State Finance and Procurement § 17-208

(a) (1) 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. (2) The Commissioner shall determine the prevailing wage rates for both straight time and overtime. (3) These determinations shall be made in accordance with: (i) the applicable provisions of Title 10, Subtitles 1 through 3 of the State Government Article; and (ii) to the extent not inconsistent with those provisions, the requirements of this section. (b) (1) Except as provided in subsection (c) of this section, the prevailing wage rate for straight time for a worker is the rate paid: (i) in the locality; (ii) on projects similar to the proposed public work; (iii) for work of the same or a similar character as that to be performed on the public work; and (iv) to 50% or more of the workers in the worker’s occupational classification. (2) 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. (c) (1) If fewer than 50% of the workers in the locality working in the same classification receive the same wage rate: (i) the prevailing wage rate shall be the rate paid to at least 40% of those workers; or (ii) if fewer than 40% receive the same wage rate, the rate shall be a weighted average rate obtained by: 1. adding the products obtained by multiplying each hourly rate paid to workers in the classification by the number of workers receiving that rate; and 2. dividing that sum by the total number of workers in the classification. (2) 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: (i) population; (ii) degree of industrialization; and (iii) skill of work force. (d) The calculation of the rate paid in the locality shall include the basic hourly rate of pay and either: (1) 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: (i) medical, surgical, or hospital care; (ii) retirement, disability, or death benefits, including a profit sharing plan that provides benefits on retirement; (iii) unemployment, life, or accident insurance or compensation; (iv) insurance or compensation for injury or illness resulting from occupational activity; (v) vacation and holiday pay; (vi) subsidies to defray costs of apprenticeship or other similar programs; or (vii) other bona fide fringe benefits; or (2) 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. (e) 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.

Md. Code, State Finance and Procurement § 17-209

(a) 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: (1) any other payroll information relevant to the determination; and (2) wage rates established by collective bargaining agreements. (b) 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. (c) (1) 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. (2) The Commissioner shall show on the determination the date upon which it expires. (3) Upon expiration of the prevailing wage determination for a locality, the Commissioner shall issue a new determination for the locality. (4) 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.

Md. Code, State Finance and Procurement § 17-210

(a) 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. (b) (1) The Commissioner shall give notice of each prevailing wage rate determination for a public work contract under this subtitle. (2) On written request, the Commissioner shall mail to any representative of any classification, any employer, or any representative of any group of employers notice: (i) that a determination will be made, at least 60 days before making the determination; and (ii) of the determination, after making the determination. (c) After a determination has been made, the public body shall include each prevailing wage rate for straight time and overtime: (1) in any call for bids or proposals; (2) in the specifications for the public work contract; and (3) in the public work contract.

Md. Code, State Finance and Procurement § 17-211

(a) 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. (b) (1) 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: (i) the public body; (ii) a prospective bidder or offeror or a representative of a prospective bidder or offeror; (iii) a representative of a group of employers engaged in the type of construction for which the prevailing wage rate was determined; or (iv) a representative of a classification of worker for which the prevailing wage rate was determined. (2) A petition under this subsection shall be verified and shall set forth the facts on which it is based. (3) 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. (c) (1) Within 2 days after a petition is submitted under this section, the petitioner shall send a copy to the public body. (2) 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. (d) (1) Within 20 days after a petition is submitted, the Commissioner shall: (i) after giving the notice required under paragraph (3) of this subsection, conduct an investigation; and (ii) hold a public hearing to review the petition. (2) If more than 1 petition is submitted, the Commissioner may consolidate the hearings on any of the petitions. (3) 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. (e) At the hearing: (1) 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 (2) any interested party, including the Commissioner, may introduce other evidence material to the issue. (f) 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.

Md. Code, State Finance and Procurement § 17-212

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: (1) 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 (2) the determination has been made part of the specifications and public work contract for the public work.

Md. Code, State Finance and Procurement § 17-213

(a) Before entering into a public work contract, a public body shall require that the public work contract include a clause for payment: (1) to a worker, of at least the prevailing wage rate; and (2) 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. (b) 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.

Md. Code, State Finance and Procurement § 17-214

(a) 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. (b) A contractor and subcontractor shall pay an employee the prevailing wage rate of overtime for each hour that the employee works: (1) in excess of 10 hours in any single calendar day; (2) in excess of 40 hours per each workweek; or (3) on Sunday or a legal holiday.

Md. Code, State Finance and Procurement § 17-215

(a) Each contractor and subcontractor subject to this subtitle shall pay each employee not less than the prevailing wage rate required under this subtitle: (1) unconditionally; (2) without subsequent rebate; and (3) except as provided in subsection (b) of this section, without deductions for: (i) food; (ii) sleeping accommodations; (iii) transportation; (iv) use of small tools; or (v) any other thing of any kind. (b) A contractor or subcontractor may make deductions that are: (1) required by law; (2) required or allowed by a collective bargaining agreement between a bona fide labor organization and the contractor or subcontractor; or (3) contained in a written agreement between an employee and an employer undertaken at the beginning of employment, if the agreement: (i) concerns food, sleeping accommodations, or other similar items; (ii) is submitted by the employer to the public body awarding the public work contract; and (iii) is approved by the public body as fair and reasonable.

Md. Code, State Finance and Procurement § 17-216

(a) 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. (b) (1) A laborer receiving the prevailing wage rate for laborers may not perform work ordinarily performed by a mechanic or mechanic’s apprentice. (2) 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.

Md. Code, State Finance and Procurement § 17-219

(a) Each contractor under a public work contract subject to this subtitle shall: (1) post a clearly legible statement of each prevailing wage rate to be paid under the public work contract; and (2) keep the statement posted during the full time that any employee is employed on the public work contract. (b) The statement of prevailing wage rates shall be posted in a prominent and easily accessible place at the site of the public work. (c) 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.

Md. Code, State Finance and Procurement § 17-220

(a) Each contractor required to pay the prevailing wage rate shall: (1) keep payroll records covering work performed directly at the work site in accordance with regulations adopted by the Commissioner; and (2) allow the Commissioner or the public body to inspect the records at any reasonable time and as often as necessary. (b) (1) 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: (i) the public body; and (ii) the Commissioner. (2) The Commissioner and the public body shall make payroll records available for public inspection during regular business hours. (c) 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: (1) the payroll records are correct; (2) the wage rates paid are not less than those established by the Commissioner as set forth in the public work contract; (3) the classification set forth for each employee conforms with the work performed by that employee; and (4) the contractor or subcontractor has complied with each requirement of this subtitle. (d) If a contractor is late in submitting copies of the payroll records required under subsection (b) of this section: (1) the public body may postpone the processing of partial payment estimates under the public work contract pending receipt of the copies; and (2) the contractor shall be liable to the public body for liquidated damages of $10 for each calendar day the records are late.

Md. Code, State Finance and Procurement § 17-221

(a) Each public body that awards a public work contract shall: (1) take cognizance of a complaint of a violation of this subtitle committed in the course of performance of the public work contract; and (2) 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. (b) (1) The Commissioner shall promptly institute an investigation as necessary to determine compliance with this subtitle and regulations adopted under this subtitle when the Commissioner: (i) receives a complaint of a violation of this subtitle; and (ii) is otherwise made aware of a possible violation of this subtitle. (2) 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. (c) 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: (1) the correctness of each classification; (2) the ratio of apprentices to mechanics; and (3) payment of straight and overtime prevailing wage rates as required under the public work contract. (d) (1) If, after investigation, the Commissioner determines that a provision of this subtitle may have been violated, the Commissioner immediately shall notify the public body. (2) On notification, the public body shall withhold from payment due the contractor or subcontractor an amount sufficient to: (i) pay each employee of the contractor or subcontractor the full amount of wages due under this subtitle; and (ii) satisfy a liability of a contractor for liquidated damages as provided in § 17–222(a) of this subtitle, pending a final determination. (3) If a subcontractor is responsible for a violation of this subtitle, the contractor: (i) may withhold from payment to the subcontractor an amount equal to the amount withheld from the contractor under paragraph (2) of this subsection; or (ii) if payment has been made to the subcontractor, may sue to recover that amount. (e) (1) (i) 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: 1. notify the contractor or subcontractor of the violation, to include a statement of facts disclosed in the investigation; 2. meet with the contractor or subcontractor within 48 hours of issuing the stop work order; and 3. provide the contractor or subcontractor a reasonable timeframe, as determined by the Commissioner, to resolve the violation. (ii) 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. (2) If a stop work order is issued against a subcontractor: (i) 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; (ii) the prime contractor may not terminate the contract with the subcontractor if the violation has been resolved; and (iii) 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. (3) 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. (4) A stop work order issued under this subsection shall: (i) take effect when served on the contractor or subcontractor; and (ii) remain in effect until the Commissioner issues an order releasing the stop work order. (5) 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: (i) is properly paying employees the appropriate prevailing wage rate set in accordance with this subtitle; and (ii) has paid all penalties assessed against the contractor or subcontractor under this subtitle. (6) 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. (f) (1) (i) 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. (ii) If an appeal is not requested within 72 hours, the stop work order shall become a final order of the Commissioner. (2) The Commissioner shall hold a hearing within 7 days after receiving the written appeal. (3) 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. (4) (i) 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. (ii) The decision shall include: 1. an explanation of why the order was upheld or released; and 2. the grounds on which the result was determined. (g) 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: (1) issue an order for a hearing within 30 days after completing an investigation; and (2) expeditiously conduct the hearing. (h) (1) 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. (2) The notice shall include: (i) a statement of the facts disclosed in the investigation; and (ii) the time and place of the hearing. (i) (1) In conducting an investigation or hearing under this section, the Commissioner is deemed to be acting in a quasi–judicial capacity and may: (i) issue subpoenas; (ii) administer oaths; or (iii) examine witnesses. (2) The Commissioner shall grant each interested person an opportunity to speak at the hearing on matters relevant to the complaint. (j) (1) After the conclusion of the hearing, the Commissioner shall: (i) file in the Commissioner’s office an order that states the Commissioner’s determination; and (ii) serve, personally or by mail, the public body and parties to the hearing with a copy of the order and notice of its filing. (2) If the Commissioner finds a violation, the Commissioner shall determine the amount of liquidated damages and restitution to be assessed for the violation. (3) On the entry and service of a Commissioner’s order, the public body, from the money due the contractor or subcontractor, shall: (i) pay the affected employees the full amount of wages due them; and (ii) satisfy the obligation of the contractor or subcontractor to pay liquidated damages as required under § 17–222 of this subtitle. (k) (1) 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. (2) Each day that a violation under paragraph (1) of this subsection continues is a separate offense.

Md. Code, State Finance and Procurement § 17-222

(a) (1) 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: (i) 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 (ii) the employee is paid less than the prevailing wage rate. (2) 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: (i) 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 (ii) the employee is paid less than the prevailing wage rate. (b) (1) 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. (2) The contractor and the subcontractor shall be jointly and severally liable for restitution to the subcontractor’s employees.

Md. Code, State Finance and Procurement § 17-223

(a) If a public body does not comply with a provision of this subtitle, the Commissioner: (1) shall give written notice of the noncompliance to the public body; (2) may require compliance within a sufficient period as determined by the Commissioner; and (3) 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. (b) 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. (c) 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.

Md. Code, State Finance and Procurement § 17-224

(a) (1) 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. (2) 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. (3) If the Commissioner’s investigation determines that the employer violated provisions of this subtitle, the Commissioner shall try to resolve the issue informally. (4) (i) 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. (ii) 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. (iii) 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. (5) 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. (b) (1) 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. (2) 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. (c) (1) An action under this section is considered to be a suit for wages. (2) A judgment in an action under this section shall have the same force and effect as any other judgment for wages. (3) 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. (d) (1) 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. (2) 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. (e) (1) 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. (2) (i) 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. (ii) 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. (3) 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. (4) In an action under this section, the court shall award a prevailing plaintiff reasonable counsel fees and costs. (5) 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. (6) The contractor and subcontractor shall be jointly and severally liable for any violation of the subcontractor’s obligations under this section. (f) (1) 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. (2) 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. (g) (1) 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. (2) The penalty shall be recoverable in a civil action filed in accordance with this section and paid to the State General Fund. (h) 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: (1) reports or makes a complaint under this subtitle or otherwise asserts the worker’s rights under this section; or (2) participates in any investigation, hearing, or inquiry held by the Commissioner under § 17–221 of this subtitle. (i) (1) A contractor or subcontractor may not retaliate or discriminate against an employee in violation of this section. (2) 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. (3) 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: (i) reinstate the employee or provide the employee restitution, as appropriate; (ii) 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 (iii) pay reasonable counsel fees and other costs.

Md. Code, State Finance and Procurement § 17-225

(a) A person may not: (1) violate the wage provisions of a public work contract; (2) allow or require an employee to work for less than the applicable prevailing wage rate; (3) 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 (4) directly or indirectly, authorize a violation of this subtitle by any other person. (b) 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.

Md. Code, State Finance and Procurement § 17-226

(a) (1) 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. (2) Filing under this subsection shall be notice to a public body and its representatives. (b) (1) 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. (2) 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.

Md. Code, State Finance and Procurement § 17-227

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: (1) Comptroller; (2) State’s Attorney with jurisdiction over the alleged violation; (3) U.S. Department of Justice; (4) U.S. Department of Labor; and (5) U.S. Department of the Treasury.

Md. Code, State Finance and Procurement § 17-301

(a) In this subtitle the following words have the meanings indicated. (b) “American steel product” means a product that is: (1) produced from steel made in any state by the open hearth, basic oxygen, electric furnace, Bessemer, or other steel making process; and (2) rolled, forged, drawn, cast, extruded, or otherwise similarly processed. (c) “Public body” means: (1) the State; (2) a unit of the State government; or (3) 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.

Md. Code, State Finance and Procurement § 17-303

(a) 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: (1) constructing or maintaining a public work; or (2) buying or manufacturing machinery or equipment that: (i) is composed of at least 10,000 pounds of steel products; and (ii) is to be installed at a public work site. (b) This section does not apply if the head of a public body determines that: (1) the price of American steel products is not reasonable, as provided in § 17-304 of this subtitle; (2) American steel products are not produced in sufficient quantity to meet the requirements of the contract; or (3) the purchase of American steel products would be inconsistent with the public interest. (c) The public body shall give notice of the requirement for American steel products in the invitation for bids or request for proposals.

Md. Code, State Finance and Procurement § 17-304

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: (1) 20% of that bid or offered price; or (2) 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.

Md. Code, State Finance and Procurement § 17-305

(a) 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. (b) 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.

Md. Code, State Finance and Procurement § 17-402

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.

Md. Code, State Finance and Procurement § 17-501

(a) In this subtitle the following words have the meanings indicated. (b) “eMaryland Marketplace” has the meaning stated in § 13–101 of this article. (c) “Procurement” means procurement by competitive sealed bidding, competitive sealed proposals, or noncompetitive negotiation.

Md. Code, State Finance and Procurement § 17-502

(a) This section does not apply to emergency procurement under § 13–108 of this Division II. (b) 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: (1) a unit of State government; (2) a county; (3) a municipality; (4) a bicounty or multicounty governmental agency; (5) a special tax district, sanitary district, drainage district, soil conservation district, and water supply district; (6) a public institution of higher education; (7) a public school; and (8) 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. (c) 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. (d) An unintentional violation of this section may not constitute grounds to challenge or appeal: (1) the award of a procurement; or (2) the process through which a procurement was conducted.

Md. Code, State Finance and Procurement § 17-503

(a) In this section, “restricted individual” has the meaning stated in § 5–501.1 of the General Provisions Article. (b) 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.

Md. Code, State Finance and Procurement § 17-601

(a) In this subtitle the following words have the meanings indicated. (b) “Apprenticeship training program” means an apprenticeship training program that is registered with, and approved by, the Apprenticeship and Training Council or the U.S. Department of Labor. (c) “Covered craft” means a classification of workers listed in the prevailing wage determination applicable to the covered project. (d) “Covered project” means a project for the construction of a public work, as defined under § 17–201 of this title, that is valued at $500,000 or more. (e) “Department” means the Maryland Department of Labor. (f) “Fund” means the State Apprenticeship Training Fund established under § 17–602 of this subtitle. (g) “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. (h) “Secretary” means the Secretary of Labor.

Md. Code, State Finance and Procurement § 17-602

(a) There is a State Apprenticeship Training Fund in the Department. (b) The Fund consists of: (1) payments made by contractors or subcontractors in accordance with this subtitle and Subtitle 6A of this title; (2) penalties collected as a result of violations of this subtitle and Subtitle 6A of this title; and (3) penalties collected as a result of violations of Title 14, Subtitle 8 of this article. (c) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this article. (d) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (e) The Secretary shall use money in the fund to: (1) promote preapprenticeship programs and other workforce development programs in the State’s public secondary schools and community colleges that assist students in preparing for and entering apprenticeship training programs; and (2) 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.

Md. Code, State Finance and Procurement § 17-603

(a) 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: (1) the contractor participates in an apprenticeship training program for each covered craft in which it will employ persons for the covered project; (2) the contractor will make payments to the Fund; or (3) the contractor will make payments in amounts determined under § 17–605 of this subtitle to a registered apprenticeship program or to an organization that has registered apprenticeship programs for the purpose of supporting these programs. (b) 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. (c) Organizations that have registered 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. (d) The Secretary shall adopt regulations to establish a process for auditing organizations that provide registered 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.

Md. Code, State Finance and Procurement § 17-604

(a) 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: (1) the subcontractor participates in an apprenticeship training program for each covered craft in which it will employ persons for the covered project; (2) the subcontractor will make payments to the Fund; or (3) the subcontractor will make payments in amounts determined under § 17–605 of this subtitle to a registered apprenticeship program or to an organization that has registered apprenticeship programs for the purpose of supporting these programs. (b) 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. (c) Organizations that have registered 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. (d) The Secretary shall adopt regulations to establish a process for auditing organizations that provide registered 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.

Md. Code, State Finance and Procurement § 17-605

(a) (1) 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 in each covered craft who is employed by the contractor or subcontractor on the covered project. (2) 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. (3) 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. (4) Payments made under paragraph (1) of this section are permissible deductions under § 17–215(b) of this title. (5) Payments made to the Fund in accordance with paragraph (1) of this subsection shall be made on a monthly basis. (b) (1) 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, the contractor or subcontractor shall make payments to the Fund for the difference between its contribution and the contribution rate required by this subtitle. (2) Payments made to the Fund in accordance with paragraph (1) of this subsection shall be made on a monthly basis. (c) A contractor shall report all apprenticeship payments made under this subtitle on prevailing wage payroll records required by § 17–220 of this title. (d) (1) A contractor or subcontractor that makes contributions to the Fund, a registered apprenticeship program, or an organization that has registered apprenticeship programs may request that its contributions be directed to a specific preapprenticeship or workforce development program. (2) The Secretary shall make a good–faith effort to accommodate requests received in accordance with paragraph (1) of this subsection.

Md. Code, State Finance and Procurement § 17-606

(a) 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 training contributions required by this subtitle. (b) (1) 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. (2) 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. (3) Penalties shall be recoverable in civil actions and paid to the State. (c) (1) The Secretary shall adopt regulations to establish administrative procedures for the collection of payments under this subtitle. (2) (i) The Secretary may file suit to enforce this section in any court of competent jurisdiction. (ii) 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.

Md. Code, State Finance and Procurement § 17-701

§17–701. IN EFFECT ** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 ** (a) In this subtitle the following words have the meanings indicated. (b) “Energy sector of Iran” means activities to develop petroleum or natural gas resources or nuclear power in Iran. (c) “Financial institution” has the meaning stated in Section 14 of the Iran Sanctions Act of 1996 (Public Law 104–172). (d) “Iran” includes the government of Iran and any agency or instrumentality of Iran. (e) “Person” includes: (1) a natural person, corporation, company, limited liability company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group; (2) 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 (3) 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. (f) “Public body” means: (1) the State; (2) a county, municipal corporation, or other political subdivision; (3) a public instrumentality; or (4) any governmental unit authorized to award a contract.

Md. Code, State Finance and Procurement § 17-702

§17–702. IN EFFECT ** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 ** (a) For purposes of this subtitle, a person engages in investment activities in Iran if: (1) 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 (2) 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: (i) will use the credit to provide goods or services in the energy sector of Iran as described in item (1) of this subsection; and (ii) 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. (b) 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.

Md. Code, State Finance and Procurement § 17-703

§17–703. IN EFFECT ** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 ** 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.

Md. Code, State Finance and Procurement § 17-704

§17–704. IN EFFECT ** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 ** (a) (1) 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. (2) The Board shall update the list at least every 180 days. (3) Before the Board includes a person on the list, the Board shall provide the person with 90 days’ written notice that: (i) the Board intends to include the person on the list; and (ii) 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. (4) 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. (b) (1) 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. (2) 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. (c) 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. (d) The Board shall make every reasonable effort to avoid erroneously including a person on the list. (e) The Board shall publish the list on the Internet.

Md. Code, State Finance and Procurement § 17-705

§17–705. IN EFFECT ** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 ** (a) 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: (1) certify at the time the bid is submitted or the contract is renewed that the person: (i) 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 (ii) is not engaging in investment activities in Iran as described in § 17–702 of this subtitle; or (2) 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. (b) A public body shall submit any information provided to the public body under subsection (a)(2) of this section to the Board.

Md. Code, State Finance and Procurement § 17-706

§17–706. IN EFFECT ** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 ** (a) (1) 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. (2) 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: (i) the name of the person determined to have submitted a false certification; and (ii) the information on which the public body made its decision. (b) (1) 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. (2) An action brought under this section shall be brought within 3 years from the date the certification is made. (c) If, in an action brought under this section, a court determines that a person submitted a false certification: (1) the person shall pay all reasonable costs and fees incurred in the civil action, including: (i) any costs incurred by the public body for the investigation that led to the finding of the false certification; and (ii) all reasonable costs and fees incurred by the Attorney General in bringing the action; (2) 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; (3) the public body may terminate the contract for which the false certification was submitted; and (4) 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. (d) (1) 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. (2) 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. (e) This subtitle does not create or authorize a private right of action.

Md. Code, State Finance and Procurement § 17-707

§17–707. IN EFFECT ** CONTINGENCY – IN EFFECT – CHAPTERS 446 AND 447 OF 2012 ** 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.

Md. Code, State Finance and Procurement § 17-801

(a) In this subtitle the following words have the meanings indicated. (b) “Aggregate employee health care expenses” means all employee health care expenses paid by a responsible bidder or subcontractor. (c) (1) “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. (2) “Aggregate Social Security wages” does not include wages that are above the federal Social Security contribution and benefit base. (d) “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. (e) (1) “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. (2) “Employee health care expenses” includes: (i) 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; (ii) 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; (iii) reimbursements to an employee for expenses incurred in the purchase of health care services; (iv) payments to a third party for the purpose of providing health care services for an employee; (v) payments under a collective bargaining agreement for the purpose of providing health care services for an employee; and (vi) costs incurred in the direct delivery of health care services to an employee. (f) “Health care services” means medical care, services, or goods that: (1) qualify as a tax deductible expense under § 213 of the Internal Revenue Code; or (2) 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. (g) “Subcontractor” means a person: (1) listed on a responsive bid to provide construction services under a portion of a contract with the State; or (2) added to a contract with the State after the contract is awarded in order to provide construction services under a portion of the contract.

Md. Code, State Finance and Procurement § 17-802

(a) 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. (b) This subtitle does not apply to: (1) a minority business enterprise, as defined under Title 14, Subtitle 3 of this article; or (2) a small business with 30 or fewer employees.

Md. Code, State Finance and Procurement § 17-803

(a) 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. (b) (1) 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: (i) 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 (ii) the bidder, contractor, or subcontractor pays 50% or more of the required premium necessary to obtain coverage by a credible health care insurance plan. (2) 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: (i) 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 (ii) the bidder, contractor, or subcontractor will meet the requirements of paragraph (1) of this subsection on renewal of the contract or collective bargaining agreement. (c) 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. (d) 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. (e) 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.

Md. Code, State Finance and Procurement § 17-804

(a) A person or an entity may not provide false information under this subtitle. (b) 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. (c) An action for a civil penalty under this section may be brought by: (1) the unit that awarded the contract, in its own name; (2) the Attorney General, in the name of the State; or (3) a State’s Attorney, in the name of the State.

Md. Code, State Finance and Procurement § 17-901

(a) In this section, “bus lane system operator” has the meaning stated in § 21–1133 of the Transportation Article. (b) (1) 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. (2) 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. (c) 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.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026

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