HB 577
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
House Bill 577 (Delegate Stewart)
Economic Matters
Health and Welfare of H–2 Visa and Migrant Workers – COVID–19 Pandemic –
Regulations (Healthy Farmworkers Act)
This bill requires the Secretary of Labor to adopt regulations, by October 1, 2021, that
apply to each employer of H-2A and H-2B visa and migrant workers during the COVID-19
pandemic. Generally, the regulations must ensure safe and sanitary housing for those
workers in relation to the COVID-19 pandemic. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: General fund expenditures for the Maryland Department of Labor (MDL)
increase by $762,600 in FY 2022 and $722,700 in FY 2023 for related enforcement.
Revenues are not affected.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues $0 $0 $0 $0 $0
GF Expenditure 762,600 722,700 0 0 0
Net Effect ($762,600) ($722,700) $0 $0 $0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: Local health departments are assumed to be able to provide assistance in
arranging housing space when an employer does not have sufficient space to accommodate
separate and isolated facilities for workers. Otherwise, the bill does directly affect local
government operations or finances.
Small Business Effect: Potential meaningful.
 Analysis
Bill Summary: The bill enumerates the various safeguards and other requirements that
must be in the regulations, including that each employer of H-2A and H-2B visa and
migrant workers must, among other things:
 provide a separate and isolated living space for workers who have tested positive
for COVID-19, have reason to believe they were exposed to COVID-19, or are
exhibiting symptoms of COVID-19;
 provide separate living facilities for workers with underlying health conditions and
workers older than 60, as specified;
 ensure that housing for all workers is thoroughly ventilated and meets basic
standards of habitability;
 inform the affected workers of their rights to protection from eviction, COVID-19
prevention protocols, and other specified information;
 ensure that worker housing is inspected by MDL at least once prior to being
inhabited and at least one more time annually; and
 establish (1) enhanced whistleblower protections for workers who make complaints
related to COVID-19 guidelines and (2) an enhanced enforcement and penalty
structure for violations of the COVID-19 housing regulations.
Current Law: The hiring and sanctioning of temporary migrant workers in the nation is
controlled primarily by federal law and various federal agencies, including the
U.S. Department of Labor (DOL) and the U.S. Citizenship and Immigration Service. There
are many procedures, processes, and requirements enumerated in federal law when an
entity seeks to use temporary migrant workers. For example, a farm labor contractor must
be specifically authorized to provide housing or transportation to migrant or seasonal
agricultural workers prior to doing so, and persons employed by farm labor contractors to
perform farm labor contracting activities also must register with DOL.
Section 218 of the Immigration and Nationality Act authorizes the lawful admission into
the United States of nonimmigrant workers (H-2A workers) to perform agricultural labor
or services of a temporary or seasonal nature. Similarly, the H-2B nonimmigrant program
permits employers to hire nonimmigrants to perform temporary nonagricultural labor or
services in the United States.
Background: For information on the COVID-19 pandemic, please see the Appendix –
COVID-19.
State Expenditures: The bill creates additional responsibilities for MDL by requiring the
development and implementation of regulations that apply to employers of H-2A and H-2B
HB 577/ Page 2
visa and migrant workers during the COVID-19 pandemic. MDL cannot carry out the
necessary enforcement activities using its existing staff and resources.
Under its current practices, MDL’s Division of Workforce Development and Adult
Learning inspects the housing of H-2A workers once per year; it does not inspect housing
of H-2B workers. The bill requires at least one additional inspection annually for H-2A
housing, as well as initial and at least annual inspections of H-2B housing. Moreover, MDL
advises that inspection staff are paid almost entirely using federal funds and, thus, are
barred from carrying out State duties in the absence of State funding for their time. As
such, general funds are needed to supplant or supplement the federal funds as existing or
new staff perform activities under the bill.
Thus, general fund expenditures increase by $762,608 in fiscal 2022. This estimate is based
on current housing inspection workloads and reflects the cost of hiring 14 contractual
employees (12 bilingual inspectors and 2 administrative assistants) who begin working on
October 1, 2021, to conduct the required inspections and enforce the bill’s other
requirements. It includes salaries, fringe benefits, one-time start-up costs, and ongoing
operating expenses. It also includes (1) the purchase of six sedans for use by the inspectors
at a cost of $16,000 per sedan and (2) $29,000 in general funds to offset the federal funds
used to pay existing employees.
Contractual Positions 14.0
Salaries and Fringe Benefits $557,220
Vehicles 96,000
Staff Time Supplanting Federal Funds 29,000
Operating Expenses 80,388
Total FY 2022 State Expenditures $762,608
Costs are assumed to continue in fiscal 2023 as well, with full salaries with annual increases
and employee turnover and ongoing operating expenses. However, as the bill requires the
regulations to apply only during the COVID-19 pandemic, it is assumed for purposes of
this analysis that the additional staff, and the associated costs, are no longer necessary
beginning in fiscal 2024. The estimate also assumes that existing staff can develop the
required regulations.
This estimate does not include any health insurance costs that could be incurred for
specified contractual employees under the State’s implementation of the federal Patient
Protection and Affordable Care Act.
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Small Business Effect: Small businesses that employ H-2A and H-2B visa holders may
incur additional costs to enhance the housing conditions for their employees in accordance
with the new regulatory requirements.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Department of Labor; U.S. Department of Labor;
Department of Legislative Services
Fiscal Note History: First Reader - January 29, 2021
rh/mcr
Analysis by: Richard L. Duncan Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 577/ Page 4
 Appendix – COVID-19
In December 2019, a novel strain of coronavirus known as severe acute respiratory
syndrome coronavirus 2 emerged in Wuhan, China. Coronavirus disease (COVID-19) is
an infectious disease caused by this virus. As the number of cases spread globally by
March 2020, the World Health Organization declared COVID-19 a pandemic.
Testing, Cases, and Deaths in Maryland
Maryland’s first three confirmed cases of COVID-19 were recorded on March 6, 2020,
with the first two deaths occurring March 16, 2020. As of January 27, 2021, Maryland
reported a total of 346,559 confirmed cases, 31,468 individuals ever hospitalized, and
6,821 confirmed deaths. The jurisdictions with the highest number of cases have been
Prince George’s, Montgomery, and Baltimore counties and Baltimore City. Statewide,
8.4% of cases (28,954) and 45.9% of COVID-19 deaths (3,130) occurred in congregate
living settings (i.e., nursing homes, assisted living, and group homes). Updated data on
COVID-19 in Maryland is available on the Maryland Department of Health (MDH)
dashboard: https://coronavirus.maryland.gov.
Vaccines
In December 2020, the U.S. Food and Drug Administration approved both
Pfizer-BioNTech and Moderna’s COVID-19 vaccines for emergency use. Due to limited
quantities, distribution began with priority groups as determined by states. Maryland began
distribution in January 2021 with Phase 1A, which includes health care workers, residents
and staff of nursing homes, first responders, public safety, corrections staff, and front-line
Judiciary staff. Phase 1B began January 18, 2021, and includes residents of assisted living
facilities and other congregate settings, adults age 75 and older, staff of K-12 schools and
child care facilities, high-risk incarcerated individuals, and those involved in continuity of
government. As of January 27, 2020, the State is in Phase 1C, which includes adults
aged 65 and older, additional public safety and public health workers, and essential workers
in food/agriculture, manufacturing, public transit, and the postal service. Phase 2 will
include individuals aged 16 to 64 at increased risk of severe illness, incarcerated adults,
and remaining essential workers. Phase 3 will include the general public. As of
January 27, 2021, 852,625 doses of the vaccine have been distributed, and 419,579 doses
have been administered (363,282 first doses and 56,297 second doses). Updated data is
available on the MDH dashboard: coronavirus.maryland.gov/#Vaccine.
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Declaration of a State of Emergency and Initial Executive Orders
On March 5, 2020, Governor Lawrence J. Hogan, Jr. declared a state of emergency and the
existence of a catastrophic health emergency to deploy resources and implement the
emergency powers of the Governor to control and prevent the spread of COVID-19. The
declaration, which has been renewed several times (most recently January 21, 2021),
initiated a series of executive actions, including moving the Maryland Emergency
Management Agency to its highest activation level, activating the National Guard, and
closing all public schools. The Governor then ordered the closure of in-house dining at bars
and restaurants and banned mass gatherings of more than 50 people. This action was
followed by a more extensive stay-at-home order on March 30, 2020, requiring closure of
all nonessential businesses. This order remained in effect until May 15, 2020.
Emergency Legislation
Chapters 13 and 14 of 2020 (the COVID-19 Public Health Emergency Protection Act of
2020) authorized the Governor, for the duration of the emergency, to take actions relating
to health insurance, Medicaid, retailer profits, employer actions, and personnel at State
health care facilities as a result of the state of emergency and catastrophic health
emergency. The Acts also authorize the Secretary of Labor to determine certain individuals
eligible for unemployment insurance (UI) benefits due to COVID-19. The Acts terminate
April 30, 2021.
Subsequent Executive Orders and Advisories
Since March 2020, the Governor has issued numerous executive orders relating to
COVID-19, including (1) closing Maryland ports and harbors to passenger vessels;
(2) expanding child care access; (3) expanding the scope of practice for health care
practitioners, activating the Maryland Responds Medical Reserve Corps, controlling and
restricting elective medical procedures, closing adult day care centers, and providing
additional health care regulatory flexibility; (4) augmenting emergency medical services;
(5) prohibiting price gouging; (6) fast tracking lab testing processes; (7) authorizing
expanded telehealth services; (8) delegating authority to local health officials to control
and close unsafe facilities; (9) extending certain licenses, permits, and registrations;
(10) authorizing remote notarizations; (11) prohibiting evictions of tenants suffering
substantial loss of income due to COVID-19, additionally prohibiting certain
repossessions, restricting initiation of residential mortgage foreclosures, and prohibiting
commercial evictions; (12) regulating certain businesses and facilities and generally
requiring the use of face coverings; (13) establishing alternate health care sites and
authorizing regulation of patient care space in health care facilities; and (14) implementing
alterative correctional detention and supervision.
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Federal Legislation Regarding COVID-19
Five federal emergency bills have been enacted to address the COVID-19 pandemic:
 the Coronavirus Preparedness and Response Supplemental Appropriations
Act, which provided $8.3 billion in emergency funds for federal agencies (including
$950 million through the U.S. Centers for Disease Control and Prevention for state
and local response);
 the Families First Coronavirus Response Act, which addressed emergency family
and medical leave and paid sick leave, specified insurance coverage of COVID-19
testing, and provided additional funding for nutrition assistance programs and
unemployment benefits;
 the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which
included a Coronavirus Relief Fund for state and local governments; an Education
Stabilization Fund for states, school districts, and institutions of higher education; a
Disaster Relief Fund for state and local governments; additional funding for public
health agencies to prevent, prepare for, and respond to COVID-19; funding for
transit systems; an expansion and extension of eligibility for UI benefits, and
additional temporary unemployment compensation of $600 per week; $349 billion
for the establishment of the Paycheck Protection Program (PPP); a $500 billion
lending fund for businesses, cities, and states; and Economic Impact Payments to
American households of up to $1,200 per adult and $500 per child;
 the Paycheck Protection Program and Health Care Enhancement Act, which
provided an additional $310 billion to PPP, $75 billion for health care providers,
$60 billion for small business disaster loans, and $25 billion for increased testing
capacity; and
 the Consolidated Appropriations Act, 2021, and Other Extensions Act, which
included $908 billion in relief, including another $284 billion for PPP, $82 billion
for schools, $45 billion for transportation, $25 billion in emergency assistance to
renters, $20 billion for vaccine distribution, $13 billion for a major expansion in
Supplemental Nutrition Assistance benefits, $13 billion for agriculture and rural
programs, $10 billion for child care assistance, extended federal unemployment
benefits of up to $300 per week, extended the federal moratorium on evictions
through January 31, 2021, and provided a second stimulus payment of up to $600
per person.
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Federal Funding for Maryland to Address COVID-19
The CARES Act and the Families First Coronavirus Response Act provided Maryland with
a significant amount of federal aid. More than $6 billion in assistance has been made
available to the State and local governments, including an enhanced federal matching rate
for Medicaid. More than $900 million was directly provided to local governments. The
largest and most flexible portion of CARES Act funding is the Coronavirus Relief Fund,
which totals $2.3 billion, $691 million of which was allocated directly to Baltimore City
and Anne Arundel, Baltimore, Montgomery, and Prince George’s counties.
CARES Act funding also included $800 million for the Disaster Recovery Fund;
$696 million for transit grants; $575 million in enhanced Medicaid matching funds
(through December 2020); $239 million in CDC grants; $108 million for airports;
$74 million for community development block grants; $50 million for homelessness
assistance; $46 million for grants for local education agencies and higher education
institutions; $46 million for child care and development block grants; $36 million for public
housing and rental assistance grants; $24 million for community health centers; $20 million
for senior nutrition; $19 million for energy assistance; $18 million for justice assistance
grants; $17 million for administration of the UI program; $14 million for community
service block grants; $13 million for emergency food assistance; $8 million for Head Start;
$8 million for the Women, Infants, and Children program; and $7 million for election
security.
The Consolidated Appropriations Act is estimated to provide Maryland with $1.2 billion
for education (including $869 million for K-12 education, $306 million for higher
education, and $57.7 million for the Governor’s Fund); $1.1 billion for transportation
(including $830.3 million for transit in the Washington, DC area, $149.3 million for
highways, $76.2 million for transit in Baltimore, $22.5 million for airports, and
$9.1 million for rural area grants); more than $475 million for health (including
$335.6 million for testing, $75.3 million for vaccines, $32.6 million for mental health
assistance, and $