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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0675*
SENATE BILL 675
P2, C5 6lr3173
CF HB 997
By: Senator A. Washington
Introduced and read first time: February 6, 2026
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
State Finance and Procurement – Prevailing Wage Rate – Calculation 2
FOR the purpose of modifying the method by which the Commissioner of Labor and 3
Industry determines a prevailing wage rate; requiring the Commissioner to vacate a 4
certain prevailing wage rate under certain circumstances; and generally relating to 5
prevailing wages. 6
BY repealing and reenacting, without amendments, 7
Article – Public Utilities 8
Section 1–101(a) and (p–1) 9
Annotated Code of Maryland 10
(2025 Replacement Volume and 2025 Supplement) 11
BY adding to 12
Article – Public Utilities 13
Section 1–101(p–2) 14
Annotated Code of Maryland 15
(2025 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – State Finance and Procurement 18
Section 17–201(c) and (i) 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2025 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – State Finance and Procurement 23
Section 17–208 24
Annotated Code of Maryland 25
(2021 Replacement Volume and 2025 Supplement) 26
2 SENATE BILL 675
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Public Utilities 3
1–101. 4
(a) In this division the following words have the meanings indicated. 5
(p–1) “Investor–owned electric company” means an electric company that is not a 6
municipal electric utility or an electric cooperative. 7
(P–2) “INVESTOR–OWNED GAS COMPANY ” MEANS A GAS COMPANY THAT IS 8
NOT A MUNICIPAL GAS UTILITY OR A GAS COOPERATIVE. 9
Article – State Finance and Procurement 10
17–201. 11
(c) “Commissioner” means: 12
(1) the Commissioner of Labor and Industry; 13
(2) the Deputy Commissioner of Labor and Industry; or 14
(3) an authorized representative of the Commissioner. 15
(i) “Prevailing wage rate” means the hourly rate of wages paid in the locality as 16
determined by the Commissioner under § 17–208 of this subtitle. 17
17–208. 18
(a) (1) For each public work to which this subtitle applies, the Commissioner 19
shall determine the prevailing wage rate for each classification of worker engaged in work 20
of the same or a similar character. 21
(2) The Commissioner shall determine the prevailing wage rates for both 22
straight time and overtime. 23
(3) These determinations shall be made in accordance with: 24
(i) the applicable provisions of Title 10, Subtitles 1 through 3 of the 25
State Government Article; and 26
(ii) to the extent not inconsistent with those provisions, the 27
requirements of this section. 28
SENATE BILL 675 3
(4) IN DETERMINING A PREV AILING WAGE RATE UND ER THIS 1
SUBSECTION, THE COMMISSIONER MAY NOT SURVEY OR USE WAGE D ATA OF 2
EMPLOYEES DIRECTLY EMPLOYED BY: 3
(I) AN INVESTOR–OWNED GAS COMPANY, AS DEFINED UNDER § 4
1–101 OF THE PUBLIC UTILITIES ARTICLE; 5
(II) AN INVESTOR –OWNED ELECTRIC COMPA NY, AS DEFINED 6
UNDER § 1–101 OF THE PUBLIC UTILITIES ARTICLE; OR 7
(III) A COMBINATION INVEST OR–OWNED GAS AND ELECTR IC 8
COMPANY. 9
(5) ON RECEIPT OF A PETIT ION FOR REVIEW OF A DETERMINATION 10
OF A PREVAILING WAGE RATE IN ACCORDANCE W ITH § 17–211 OF THIS SUBTITLE 11
FOR A PREVAILING WAGE RATE DETERMINED USING WAGE DATA PROH IBITED 12
UNDER PARAGRAPH (4) OF THIS SUBSECTION, THE COMMISSIONER SHALL: 13
(I) VACATE THE PREVAILING WAGE RATE; AND 14
(II) RECALCULATE THE PREVAILING WAGE RATE AS REQUIRED 15
UNDER THIS SUBSECTION. 16
(b) (1) Except as provided in subsection (c) of this section, the prevailing wage 17
rate for straight time for a worker is the rate paid: 18
(i) in the locality; 19
(ii) on projects similar to the proposed public work; 20
(iii) for work of the same or a similar characte r as that to be 21
performed on the public work; and 22
(iv) to 50% or more of the workers in the worker’s occupational 23
classification. 24
(2) The prevailing wage rate for overtime for a worker shall be at least time 25
and a half the prevailing wage rate for straight time for that worker. 26
(c) (1) If fewer than 50% of the workers in the locality working in the same 27
classification receive the same wage rate: 28
(i) the prevailing wage rate shall be the rate paid to at least 40% of 29
those workers; or 30
4 SENATE BILL 675
(ii) if fewer than 40% receive the same wage rate, the rate shall be a 1
weighted average rate obtained by: 2
1. adding the products obtained by multiplying each hourly 3
rate paid to workers in the classification by the number of workers receiving that rate; and 4
2. dividing that sum by the total number of workers in the 5
classification. 6
(2) If the Commissioner determines that there is not a substantial number 7
of competent workers engaged in similar work in the locality, the Commissioner shall 8
determine the prevailing wage rate based on the nearest locality within the State that most 9
closely approximates that locality in: 10
(i) population; 11
(ii) degree of industrialization; and 12
(iii) skill of work force. 13
(d) The calculation of the rate paid in the locality shall include the basic hourly 14
rate of pay and either: 15
(1) if a contractor is not required by law to provide fringe benefits, the 16
hourly rate of contribution irrevocably made by a contractor or subcontractor to a third 17
person under a fund, plan, or program that provides: 18
(i) medical, surgical, or hospital care; 19
(ii) retirement, disability, or death benefits, including a profit 20
sharing plan that provides benefits on retirement; 21
(iii) unemployment, life, or accident insurance or compensation; 22
(iv) insurance or compensation for injury or illness resulting from 23
occupational activity; 24
(v) vacation and holiday pay; 25
(vi) subsidies to defray costs of apprenticeship or other similar 26
programs; or 27
(vii) other bona fide fringe benefits; or 28
(2) the hourly rate of costs to the contractor or subcontractor that 29
reasonably may be anticipated in providing the fringe benefits specified in item (1) of this 30
subsection under an enforceable commitment to carry out a financially responsible plan or 31
SENATE BILL 675 5
program that is communicated in writing to the workers. 1
(e) An apprentice under a public work contract shall be paid at least the 2
percentage, set by the Council, of the prevailing wage rate for a mechanic in the trade in 3
which the apprentice is employed. 4
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
1, 2026. 6