Agenda Item 6
January 31. 2012
Introduction
MEMORANDUM
January 27,2012
TO:
County Council
FROM:
SUBJECT:
Robert H. Drummer, Senior Legislative Attorney
~g
Wage and
Introduction:
Bill 4-12, Economic Development - Urban Renewal
Health Insurance Requirements
Bill 4-12, Economic Development - Urban Renewal
Wage and Health Insurance
Requirements, sponsored by Councilmembers Riemer, Ervin, Rice and EIrich, is scheduled to be
introduced on January 31, 2012. A public hearing is tentatively scheduled for March 13 at 7 :30
p.m.
Background
Bill 5-02, Procurement Service Contracts - Wage Requirements, was enacted by the
Council on June 11, 2002 and signed into law by the County Executive on June 20, 2002. This
law is codified at
§
llB-33A of the County Code. The Living Wage Law requires certain
businesses which provide services (but not goods) to the County to pay employees working on a
County contract a minimum living wage that was originally set at $10.50 per hour effective July
1, 2003. The law requires the Chief Administrative Officer to adjust this rate each July 1 by the
annual average increase, if any, in the Consumer Price Index for all urban consumers for the
Washington-Baltimore metropolitan area. The current living wage is $13.20 per hour. The
Living Wage Law does not require employers to provide health insurance, but employers are
given credit toward the wage rate for the cost of any health insurance provided.
Bill 4-12 would require an employer operating a large retail store on property for which
grants in excess of $100,000 are received from the Economic Development Fund to comply with
the County Living Wage Law. The Bill would also require these employers to offer their
employees health insurance that "includes coverage options that are reasonably comparable to
the coverage options then available to County employees." The Bill would also authorize the
Council to require a large retail store located on property sold or leased by the County under an
urban renewal plan to comply with the Living Wage Law plus health insurance as a condition of
the sale or lease.
This packet contains:
Bill 4-12
Legislative Request Report
F:\LAW\BILLS\1204 EDF Wage Requirements\Intro Memo.Doc
Circle #
1
6
 PDF to HTML - Convert PDF files to HTML files
Bill No.
4-12
Concerning: Economic Development ­
Urban Renewal - Wage and Health
Insurance Requirements
Revised: January 26. 2012 Draft No.
L
Introduced:
January 31. 2012
Expires:
July 31, 2013
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _--:-:--_ _ _ _ _ __
Sunset Date: -.:..:N""on-:=.::e<--_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Riemer, Ervin, Rice and EIrich
AN
ACT to:
(1)
require payment of certain wages and benefits by an employer operating a large
retail store on property for which certain grants are received from the Economic
Development Fund;
require payment of certain wages and benefits by an employer operating a large
retail store located on property sold or leased by the County under an urban renewal
plan; and
generally require the payment of certain wages and benefits by certain employers
receiving direct or indirect financial assistance from the County.
(2)
(3)
By amending
Montgomery County Code
Chapter 20. Finance
Section 20-75
Chapter 56. Urban Renewal and Community Development
Section 56-10
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law
by
original
bill.
Deletedfrom existing law
by
original
bill.
Added
by
amendment.
Deletedfrom existing law or the
bill by
amendment.
Existing law unaffected
by
hill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 4-12
1
2
3
4
5
6
7
8
9
Sec.
I.
Sections 20-75 and 56-10 are amended as follows:
20-75.
Use of Fund.
*
*
*
ill
ill
As used in this subsection,
S!
large retail store
means any
business that:
(A) derives more than 50% of its revenue from the sale of
goods directly to the public; and
ill.)
uses at least 75,000 square feet of retail space in
S!
single
location.
10
11
{£}
With respect to each employee of
S!
large retail store (including an
employee of
S!
contractor or subcontractor) whose primary
worksite is located on the property for which the assistance is
received, each recipient of assistance from the Fund, or of any
other economic development financial assistance offered
Qy
the
County, that cumulatively exceeds $100,000, must:
12
13
14
15
16
17
18
19
®
ill.)
meet the wage requirements of Section
llB-33A,
as if it
were
S!
covered employer under that Section; and
offer health insurance that the Director fmds substantially
satisfies the criteria described
in
paragraph
ill
20
21
22
23
24
25
26
27
ill
The Director, based upon information submitted
Qy
the recipient
of assistance, must find that:
®
the health insurance offered includes coverage options that
are reasonably comparable to the coverage options then
available to County employees;
ill.)
the health insurance offered has
S!
reasonable cost in
1igh!
of the compensation range for each major category of
employee; and
(j;­
f:\law\bills\1204
edf
wage requirements\bill6.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
4-12
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
(Q
more than 50% of each major category of employee has
opted to obtain employer-provided health insurance in the
current benefit year.
ill
In addition to any repayment requirements under this Section,
. the enforcement provisions of Section IlB-33A(h) apply to
noncompliance with this requirement
Qy
g recipient of economic
development assistance.
56-10.
Powers and authority of Council generally.
*
(s)
*
*
Sale, lease, etc., ofproperty acquired.
ill
The Council may [To] sell, lease, convey, transfer or otherwise
dispose of or retain any [of such land or] property, [regardless of]
whether or not it has been developed, redeveloped, altered or
improved [and irrespective of the manner or means in or by
which] without regard to the way it [may have been] was
acquired, to any private, public or quasi-public corporation,
partnership, association, person or other legal entity.
ill
Any lease or rental agreement entered into [pursuant to] under
this Article, for any [of the purposes or objectives contemplated
by] purpose of this Article, [is hereby declared to] must be used
exclusively for business or commercial
purposes~
[and the] Any
fee, interest, rent, or charge [reserved to be paid shall] payable as
g result of the use of the property must not be [subject to
redemption] paid to [by] the lessee, tenant or their successors in
title, except [to the extent and in the manner set forth] as provided
in [such] the lease agreement.
(])
f:\Iaw\bills\1204 edfwage requirements\bill6.doc
 PDF to HTML - Convert PDF files to HTML files
Bill
No.
4-12
54
55
56
57
ill
[Such] The Council may place [property shall be subject to such]
covenants, conditions and restrictions, including covenants
running with the land.l [as the county Council may deem to be
necessary or desirable] to [assist in preventing] prevent the
development or spread of future slums or blighted areas or to
otherwise carry out the purposes of this Article.
58
59
60
61
ill
The purchasers or lessees and their successors and assigns [shall
be obligated to] must devote such real property only to the uses
specified in the urban renewal plan,J, and may be obligated to
comply with such] The Council may establish other requirements
on the use of the property, [as the county council may determine
to be in the public interest,]
(A)
including~
62
63
64
65
66
67
[the obligation to begin within a reasonable time]
beginning any improvements on such real property
required by the urban renewal plan within
time; and
~
68
69
70
71
reasonable
!..ID
complying with the wage requirements of Section I1B­
33A
and the health insurance requirements of Section 20­
75(0, as if
it
were
~
72
73
covered employer under those
Sections, with respect to each employee of
~
large retail
store, as dermed in Section 20-75(:0(1), (including an
employee of
~
contractor or subcontractor) whose primary
worksite is located on the property purchased or leased.
(5)
Any sale or lease of [Such] real property [or interest therein shall
be retained, sold, leased, or otherwise transferred at not less than]
must be made at its fair value for uses in accordance with the
urban renewal plan. [In determining the] The fair value of real
74
75
76
77
78
79
80
o
f:\Iaw\bills\1204 edfwage requirements\bill6.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 4-12
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
Approved:
property for uses in accordance with the urban renewal plan [,
consideration shall be given to] must consider:
®
ill)
the uses provided
in
such plan;
the restrictions upon the use of the property, [and]
including the covenants, conditions and obligations
assumed by the purchaser or lessee or by the County
[council] retaining property; and
{Q
[and] the [objectives of such plan for the prevention of]
need to prevent the recurrence of slum or blighted areas.
(6)
The [conveyance to] Council may prohibit a private purchaser or
lessee [may provide that such purchaser or lessee shall be without
power to sell, or encumber, or lease, or otherwise transfer] from
selling, encumbering, or leasing the real property without the
prior written consent of the [county] Council.
*
*
*
Roger Berliner, President, County Council
98
Approved:
Date
99
Isiah Leggett, County Executive
100
This is a correct copy o/Council action.
Date
101
Linda M. Lauer, Clerk ofthe Council
Date
f:\lawlbills\
1204
edf wage requirements\bill 6.doc
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Economic Development
DESCRIPTION:
Bill 4-12
Urban Renewal
Wage and Health Insurance
This
bill
would require an employer operating a large retail store on
property for which a grant of more than $100,000 is received from
the Economic Development Fund to comply with the County Living
Wage Law and offer reasonable health insurance. The Bill would
also permit the Council to place similar requirements on an employer
operating a large retail store located on property sold or leased by the
County under an urban renewal plan.
County economic development funding does not always result in new
jobs that provide an employee with a reasonable wage and benefits.
Ensure that County economic development funds are only used to
create jobs that provide an employee with a reasonable wage and
benefits.
DED Director, DGS Director
To be requested.
To be requested.
To be requested.
To be researched.
Robert
H.
Drummer, Senior Legislative Attorney, 240-777-7895
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
F:\LAW\BILLS\1204 EDF Wage Requirements\LEGISLATIVE REQUEST REPORT.Doc
f:\law\bills\1204 edf wage requirements\legislative request report. doc
 PDF to HTML - Convert PDF files to HTML files
Agenda Item 6
January 31. 2012
Introduction
MEMORANDUM
January 27,2012
TO:
County Council
FROM:
SUBJECT:
Robert H. Drummer, Senior Legislative Attorney
~g
Wage and
Introduction:
Bill 4-12, Economic Development - Urban Renewal
Health Insurance Requirements
Bill 4-12, Economic Development - Urban Renewal
Wage and Health Insurance
Requirements, sponsored by Councilmembers Riemer, Ervin, Rice and EIrich, is scheduled to be
introduced on January 31, 2012. A public hearing is tentatively scheduled for March 13 at 7 :30
p.m.
Background
Bill 5-02, Procurement Service Contracts - Wage Requirements, was enacted by the
Council on June 11, 2002 and signed into law by the County Executive on June 20, 2002. This
law is codified at
§
llB-33A of the County Code. The Living Wage Law requires certain
businesses which provide services (but not goods) to the County to pay employees working on a
County contract a minimum living wage that was originally set at $10.50 per hour effective July
1, 2003. The law requires the Chief Administrative Officer to adjust this rate each July 1 by the
annual average increase, if any, in the Consumer Price Index for all urban consumers for the
Washington-Baltimore metropolitan area. The current living wage is $13.20 per hour. The
Living Wage Law does not require employers to provide health insurance, but employers are
given credit toward the wage rate for the cost of any health insurance provided.
Bill 4-12 would require an employer operating a large retail store on property for which
grants in excess of $100,000 are received from the Economic Development Fund to comply with
the County Living Wage Law. The Bill would also require these employers to offer their
employees health insurance that "includes coverage options that are reasonably comparable to
the coverage options then available to County employees." The Bill would also authorize the
Council to require a large retail store located on property sold or leased by the County under an
urban renewal plan to comply with the Living Wage Law plus health insurance as a condition of
the sale or lease.
This packet contains:
Bill 4-12
Legislative Request Report
F:\LAW\BILLS\1204 EDF Wage Requirements\Intro Memo.Doc
Circle #
1
6
 PDF to HTML - Convert PDF files to HTML files
Bill No.
4-12
Concerning: Economic Development ­
Urban Renewal - Wage and Health
Insurance Requirements
Revised: January 26. 2012 Draft No.
L
Introduced:
January 31. 2012
Expires:
July 31, 2013
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _--:-:--_ _ _ _ _ __
Sunset Date: -.:..:N""on-:=.::e<--_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Riemer, Ervin, Rice and EIrich
AN
ACT to:
(1)
require payment of certain wages and benefits by an employer operating a large
retail store on property for which certain grants are received from the Economic
Development Fund;
require payment of certain wages and benefits by an employer operating a large
retail store located on property sold or leased by the County under an urban renewal
plan; and
generally require the payment of certain wages and benefits by certain employers
receiving direct or indirect financial assistance from the County.
(2)
(3)
By amending
Montgomery County Code
Chapter 20. Finance
Section 20-75
Chapter 56. Urban Renewal and Community Development
Section 56-10
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law
by
original
bill.
Deletedfrom existing law
by
original
bill.
Added
by
amendment.
Deletedfrom existing law or the
bill by
amendment.
Existing law unaffected
by
hill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 4-12
1
2
3
4
5
6
7
8
9
Sec.
I.
Sections 20-75 and 56-10 are amended as follows:
20-75.
Use of Fund.
*
*
*
ill
ill
As used in this subsection,
S!
large retail store
means any
business that:
(A) derives more than 50% of its revenue from the sale of
goods directly to the public; and
ill.)
uses at least 75,000 square feet of retail space in
S!
single
location.
10
11
{£}
With respect to each employee of
S!
large retail store (including an
employee of
S!
contractor or subcontractor) whose primary
worksite is located on the property for which the assistance is
received, each recipient of assistance from the Fund, or of any
other economic development financial assistance offered
Qy
the
County, that cumulatively exceeds $100,000, must:
12
13
14
15
16
17
18
19
®
ill.)
meet the wage requirements of Section
llB-33A,
as if it
were
S!
covered employer under that Section; and
offer health insurance that the Director fmds substantially
satisfies the criteria described
in
paragraph
ill
20
21
22
23
24
25
26
27
ill
The Director, based upon information submitted
Qy
the recipient
of assistance, must find that:
®
the health insurance offered includes coverage options that
are reasonably comparable to the coverage options then
available to County employees;
ill.)
the health insurance offered has
S!
reasonable cost in
1igh!
of the compensation range for each major category of
employee; and
(j;­
f:\law\bills\1204
edf
wage requirements\bill6.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
4-12
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
(Q
more than 50% of each major category of employee has
opted to obtain employer-provided health insurance in the
current benefit year.
ill
In addition to any repayment requirements under this Section,
. the enforcement provisions of Section IlB-33A(h) apply to
noncompliance with this requirement
Qy
g recipient of economic
development assistance.
56-10.
Powers and authority of Council generally.
*
(s)
*
*
Sale, lease, etc., ofproperty acquired.
ill
The Council may [To] sell, lease, convey, transfer or otherwise
dispose of or retain any [of such land or] property, [regardless of]
whether or not it has been developed, redeveloped, altered or
improved [and irrespective of the manner or means in or by
which] without regard to the way it [may have been] was
acquired, to any private, public or quasi-public corporation,
partnership, association, person or other legal entity.
ill
Any lease or rental agreement entered into [pursuant to] under
this Article, for any [of the purposes or objectives contemplated
by] purpose of this Article, [is hereby declared to] must be used
exclusively for business or commercial
purposes~
[and the] Any
fee, interest, rent, or charge [reserved to be paid shall] payable as
g result of the use of the property must not be [subject to
redemption] paid to [by] the lessee, tenant or their successors in
title, except [to the extent and in the manner set forth] as provided
in [such] the lease agreement.
(])
f:\Iaw\bills\1204 edfwage requirements\bill6.doc
 PDF to HTML - Convert PDF files to HTML files
Bill
No.
4-12
54
55
56
57
ill
[Such] The Council may place [property shall be subject to such]
covenants, conditions and restrictions, including covenants
running with the land.l [as the county Council may deem to be
necessary or desirable] to [assist in preventing] prevent the
development or spread of future slums or blighted areas or to
otherwise carry out the purposes of this Article.
58
59
60
61
ill
The purchasers or lessees and their successors and assigns [shall
be obligated to] must devote such real property only to the uses
specified in the urban renewal plan,J, and may be obligated to
comply with such] The Council may establish other requirements
on the use of the property, [as the county council may determine
to be in the public interest,]
(A)
including~
62
63
64
65
66
67
[the obligation to begin within a reasonable time]
beginning any improvements on such real property
required by the urban renewal plan within
time; and
~
68
69
70
71
reasonable
!..ID
complying with the wage requirements of Section I1B­
33A
and the health insurance requirements of Section 20­
75(0, as if
it
were
~
72
73
covered employer under those
Sections, with respect to each employee of
~
large retail
store, as dermed in Section 20-75(:0(1), (including an
employee of
~
contractor or subcontractor) whose primary
worksite is located on the property purchased or leased.
(5)
Any sale or lease of [Such] real property [or interest therein shall
be retained, sold, leased, or otherwise transferred at not less than]
must be made at its fair value for uses in accordance with the
urban renewal plan. [In determining the] The fair value of real
74
75
76
77
78
79
80
o
f:\Iaw\bills\1204 edfwage requirements\bill6.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 4-12
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
Approved:
property for uses in accordance with the urban renewal plan [,
consideration shall be given to] must consider:
®
ill)
the uses provided
in
such plan;
the restrictions upon the use of the property, [and]
including the covenants, conditions and obligations
assumed by the purchaser or lessee or by the County
[council] retaining property; and
{Q
[and] the [objectives of such plan for the prevention of]
need to prevent the recurrence of slum or blighted areas.
(6)
The [conveyance to] Council may prohibit a private purchaser or
lessee [may provide that such purchaser or lessee shall be without
power to sell, or encumber, or lease, or otherwise transfer] from
selling, encumbering, or leasing the real property without the
prior written consent of the [county] Council.
*
*
*
Roger Berliner, President, County Council
98
Approved:
Date
99
Isiah Leggett, County Executive
100
This is a correct copy o/Council action.
Date
101
Linda M. Lauer, Clerk ofthe Council
Date
f:\lawlbills\
1204
edf wage requirements\bill 6.doc
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Economic Development
DESCRIPTION:
Bill 4-12
Urban Renewal
Wage and Health Insurance
This
bill
would require an employer operating a large retail store on
property for which a grant of more than $100,000 is received from
the Economic Development Fund to comply with the County Living
Wage Law and offer reasonable health insurance. The Bill would
also permit the Council to place similar requirements on an employer
operating a large retail store located on property sold or leased by the
County under an urban renewal plan.
County economic development funding does not always result in new
jobs that provide an employee with a reasonable wage and benefits.
Ensure that County economic development funds are only used to
create jobs that provide an employee with a reasonable wage and
benefits.
DED Director, DGS Director
To be requested.
To be requested.
To be requested.
To be researched.
Robert
H.
Drummer, Senior Legislative Attorney, 240-777-7895
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
F:\LAW\BILLS\1204 EDF Wage Requirements\LEGISLATIVE REQUEST REPORT.Doc
f:\law\bills\1204 edf wage requirements\legislative request report. doc