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COMAR 21.11.11 - Division of Labor and Industry - Pending Regulations

 

PROPOSED ACTION ON REGULATIONS
MARYLAND REGISTER, VOLUME 40, ISSUE 16,
FRIDAY, AUGUST 9, 2013

Title 21
STATE PROCUREMENT REGULATIONS
Subtitle 11 SOCIOECONOMIC POLICIES

21.11.11 Prevailing Wage — Contracts for Public Works

Authority: State Finance and Procurement Article, §17-204(a), Annotated Code of Maryland

Notice of Proposed Action
[13-216-P]

The Commissioner of Labor and Industry proposes to adopt new Regulation .05 and recodify existing Regulations .05 and .06 to be Regulations .06 and .07 under COMAR 21.11.11 Prevailing Wage — Contracts for Public Works.

Statement of Purpose

The purpose of this action is to amend the prevailing wage regulations to provide that apprentices be paid the full amount of the bona fide fringe benefits except where the apprentice’s apprenticeship program, subject to the approval of the Maryland Apprenticeship and Training Council, provides for the payment of a percentage of the bona fide fringe benefit amount.

Comparison to Federal Standards

There is a corresponding federal standard to this proposed action, but the proposed action is not more restrictive or stringent.

Estimate of Economic Impact

I. Summary of Economic Impact. The proposal has a potential positive economic impact on businesses. The proposed action would allow businesses who employ apprentices on Maryland prevailing wage jobs and who have received appropriate approval from the Maryland Apprenticeship and Training Council to pay their apprentices a percentage of the bona fide fringe benefit amount rather than the full fringe benefit amount. This could be a cost savings for affected employers.

 
Revenue (R+/R-)
 
II. Types of Economic
Impact.
Expenditure
(E+/E-)
Magnitude

A. On issuing agency: NONE
 
B. On other State agencies: NONE
 
C. On local governments: NONE
Benefit (+)
Cost (-)
Magnitude

D. On regulated
industries or trade groups:
(+) Undeterminable
 
E. On other industries or trade groups: NONE
 
F. Direct and indirect effects on public: NONE  
 

III. Assumptions. (Identified by Impact Letter and Number from Section II.)

D. The proposed amendment may not only positively benefit regulated employers in potential cost savings, but the proposed action will make Maryland consistent with federal apprenticeship and training standards. The result will be that businesses will not have to expend additional work time to ensure compliance with differing standards.

Economic Impact on Small Businesses

The proposed action has a meaningful economic impact on small business. An analysis of this economic impact follows.

The proposed action has a potential positive economic impact on small businesses. The proposed action would allow small businesses who employ apprentices on Maryland prevailing wage jobs and who have received appropriate approval from the Maryland Apprenticeship and Training Council to pay their apprentices a percentage of the bona fide fringe benefit amount rather than the full fringe benefit amount. This could be a cost savings.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to Debbie Stone, Regulations Coordinator, Department of Labor, Licensing, and Regulation, Division of Labor and Industry, 1100 N. Eutaw Street, Room 606, Baltimore, Maryland 21201, or call 410-767-2225, or email to dstone@dllr.state.md.us, or fax to 410-767-2986. Comments will be accepted through September 9, 2013. A public hearing has not been scheduled.

.05 Apprentice Bona Fide Fringe Benefits.
An apprentice shall be paid the full amount of the bona fide fringe benefit in the prevailing wage determination for the applicable classification unless the apprentice’s apprenticeship program as approved by the Maryland Apprenticeship and Training Council provides for the payment of a percentage of the bona fide fringe benefit amount.

J. RONALD DEJULIIS
Commissioner of Labor and Industry