Bill Positions

Bill Number: HB 746

Bill Title: Procurement - Living Wage - Repeal

Bill Sponsor(s): Delegate Bates, et al

Subject: Procurement

Committee: ECM

Bill Summary: This bill would repeal the state's living wage law, effective October 1, 2010.

History: The state's living wage law was passed in 2007, requiring minimum specified wage levels to be paid by vendors of state service contracts. In 2009 SB 694, to repeal the law, received an unfavorable report from the Finance Committee.

Chamber Position: Support

Position Summary: The state's living wage law is needlessly inflating the cost of state service contracts by millions of dollars annually. The law undermines the purpose of competitive bidding, which is to get the best service at the lowest cost. At a time that the state has a two billion dollar gap between ongoing spending and revenues, it is ill-advised for the state to pay above market wages on service contracts.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.