Automation Technology Deployment Assessment and Displaced Employee Retraining Fund - Established

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0314*

HOUSE BILL 314
K3 6lr1123

By: Delegate Stewart
Introduced and read first time: January 15, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Automation Technology Deployment Assessment and Displaced Employee 2
Retraining Fund – Established 3

FOR the purpose of requiring certain employers to submit certain information to the 4
Secretary of Labor in a certain manner concerning the nu mber of employees 5
employed, certain automation technology deployed or used, and certain employees 6
separated from employment during the immediately preceding calendar year ; 7
requiring certain covered employers to pay a certain assessment for each displaced 8
employee reported by the covered employer; establishing the Displaced Employee 9
Retraining Fund as a special, nonlapsing fund to support the retraining of certain 10
individuals; and generally relating to an assessment for displacing employees due to 11
deploying or using automation technology. 12

BY adding to 13
Article – Labor and Employment 14
Section 11–1801 through 11–1807 to be under the new subtitle “ Subtitle 18. 15
Automation Technology Deployment Assessment” 16
Annotated Code of Maryland 17
(2025 Replacement Volume) 18

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20

Article – Labor and Employment 21

SUBTITLE 18. AUTOMATION TECHNOLOGY DEPLOYMENT ASSESSMENT. 22

11–1801. 23

2 HOUSE BILL 314

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2

(B) “AUTOMATION TECHNOLOGY ” MEANS ARTIFICIAL INT ELLIGENCE, 3
MACHINE LEARNING SYS TEMS, ROBOTICS, OR OTHER ADVANCED TE CHNOLOGIES 4
IMPLEMENTED WITH THE PRIMARY PURPOSE OR S UBSTANTIAL EFFECT OF 5
REPLACING HUMAN LABOR. 6

(C) “COVERED EMPLOYER ” MEANS AN EMPLOYER THAT, DURING THE 7
IMMEDIATELY PRECEDING CALENDAR YEAR: 8

(1) EMPLOYED 100 OR MORE EMPLOYEES IN THE STATE; AND 9

(2) REDUCED ITS WORKFORC E IN THE STATE BY AT LEAST 10 10
EMPLOYEES WHILE DEPL OYING OR USING AUTOMATION TECHNOLOGY THAT 11
CONTRIBUTED TO THE REDUCTION. 12

(D) “DISPLACED EMPLOYEE” MEANS A FORMER EMPLOYEE OF A COVERED 13
EMPLOYER IN THE STATE WHO WAS SEPARAT ED FROM EMPLOYMENT D UE TO THE 14
DEPLOYMENT OR USE OF AUTOMATION TECHNOLOGY BY THE COVERED EMPLOYER. 15

(E) “EMPLOYEE” MEANS AN INDIVIDUAL EMPLOYED FULL –TIME OR 16
PART–TIME DIRECTLY BY AN EMPLOYER. 17

(F) “EMPLOYER” MEANS A PERSON WHO E MPLOYS AT LEAST ONE 18
INDIVIDUAL IN THE STATE. 19

(G) “SECRETARY” MEANS THE SECRETARY OF LABOR. 20

11–1802. 21

(A) ON OR BEFORE JANUARY 15 EACH YEAR , BEGINNING IN 2028, EACH 22
COVERED EMPLOYER SHALL SUBMIT ON A FO RM AND IN A MANNER A PPROVED BY 23
THE SECRETARY: 24

(1) THE NUMBER OF EMPLOYEES OF THE COVERED EMPLOYER IN THE 25
STATE ON THE FIRST AND LAST DAYS OF THE IMMEDIATELY PRECEDING PREVIOUS 26
CALENDAR YEAR; 27

(2) A DESCRIPTION OF AUT OMATION TECHNOLOGIES DEPLOYED OR 28
USED BY THE COVERED EMPLO YER DURING THE IMMEDIATELY PRECEDIN G 29
CALENDAR YEAR; AND 30

HOUSE BILL 314 3

(3) THE NUMBER OF DISPLACED EMPLOYEES DURING TH E 1
IMMEDIATELY PRECEDING CALENDAR YEAR, EXCLUDING INDIVIDUALS SEPARATED 2
FROM EMPLOYMENT DUE TO: 3

(I) VOLUNTARY ATTRITION OR RETIREMENT; 4

(II) A DECLINE IN REVENUE EXCEEDING 20% THAT WAS NOT 5
RELATED TO THE DEPLOYMENT OR USE OF AUTOMATED TECHNOLOGY; OR 6

(III) THE CLOSURE OR RELOC ATION OF AN ENTIRE FACILITY I N 7
THE STATE. 8

(B) THE SECRETARY SHALL ADOPT REGULATIONS THAT SPE CIFY THE 9
INFORMATION THAT A COVERED EMPLOYER IS REQUIRED TO SUBMIT UNDER 10
SUBSECTION (A) OF THIS SECTION. 11

(C) THE INFORMATION SUBMITTED UNDER SUBSECTION (A) OF THIS 12
SECTION SHALL BE INCLUDED IN A REPORT: 13

(1) SIGNED BY THE PRINCI PAL EXECUTIVE OFFICE R OR AN 14
INDIVIDUAL PERFORMING A SIMILAR FUNCTION; AND 15

(2) THAT INCLUDES AN AFFIDAVIT UNDER P ENALTY OF PERJURY 16
THAT THE INFORMATION SUBMITTED UNDER SUBSECTION (A) OF THIS SECTION: 17

(I) WAS REVIEWED BY THE SIGNING OFFICER; AND 18

(II) IS TRUE TO THE BEST OF THE SIGNING OFFIC ER’S 19
KNOWLEDGE, INFORMATION, AND BELIEF. 20

11–1803. 21

(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION A ND 22
SUBSECTION (B) OF THIS SECTION , A COVERED EMPLOYER S HALL PAY TO THE 23
SECRETARY AN AMOUNT E QUAL TO $900 FOR EACH DISPLACED EMPLOYEE 24
REPORTED UNDER § 11–1802(A)(3) OF THIS SUBTITLE. 25

(2) THE SECRETARY SHALL ANNUA LLY ADJUST THE AMOUN T 26
ASSESSED FOR EACH DI SPLACED EMPLOYEE BY IN FLATION, ROUNDED TO THE 27
NEAREST WHOLE DOLLAR , BASED ON AN APPROPRI ATE INDEX SPECIFIED BY THE 28
SECRETARY IN REGULATION. 29

4 HOUSE BILL 314

(B) A COVERED EMPLOYER MAY REDUCE THE PAYMENT REQUIRED UNDER 1
SUBSECTION (A) OF THIS SECTION BY 50% WITH RESPECT TO A DISPLA CED 2
EMPLOYEE FOR WHOM THE EMPLOYER: 3

(1) PROVIDED AT LEAST 12 WEEKS OF SEVERANCE PAY; 4

(2) OFFERED CERTIFIED RE TRAINING OR REDEPLOY MENT 5
OPPORTUNITIES; OR 6

(3) SUCCESSFULLY PLACED WITH ANOTHER EMPLOYER WHO SE 7
PRINCIPAL PLACE OF BUSINESS IS LOCATED IN THE STATE AND THAT, DURING THE 8
IMMEDIATELY PRECEDIN G CALENDAR YEAR , EMPLOYED FEWER THAN 50 9
EMPLOYEES IN THE STATE. 10

(C) A COVERED EMPLOYER SHALL MAKE THE PAYMENT REQUIRED UNDER 11
SUBSECTION (A) OF THIS SECTION TO THE SECRETARY WITH THE SUBMISSION OF 12
THE INFORMATION REQUIRED UNDER § 11–1802 OF THIS SUBTITLE. 13

(D) THE SECRETARY SHALL REMIT AMOUNTS PAID IN ACCO RDANCE WITH 14
THIS SECTION TO THE DISPLACED EMPLOYEE RETRAINING FUND ESTABLISHED 15
UNDER § 11–1805 OF THIS SUBTITLE. 16

11–1804. 17

(A) THE SECRETARY SHALL ASSES S A CIVIL PENALTY OF $250 AGAINST A 18
COVERED EMPLOYER FOR EACH DAY THE COVERED EMPLOYER FAILS TO TI MELY 19
FILE A REPORT UNDER § 11–1802 OF THIS SUBTITLE. 20

(B) THE SECRETARY SHALL ASSESS A CIVIL PENALTY OF $250,000 AGAINST 21
A COVERED EMPLOYER THAT FAILS TO MAKE THE PA YMENT REQUIRED UNDER § 22
11–1803 OF THIS SUBTITLE. 23

11–1805. 24

(A) IN THIS SECTION , “FUND” MEANS THE DISPLACED EMPLOYEE 25
RETRAINING FUND. 26

(B) THERE IS A DISPLACED EMPLOYEE RETRAINING FUND. 27

(C) THE PURPOSE OF THE FUND IS TO SUPPORT THE RETRAINING OF 28
INDIVIDUALS WHO HAVE BEEN SEPARATED FROM EMPLOYMENT DUE TO TH E 29
DEPLOYMENT OR USE OF AUTOMATION TECHNOLOGY. 30

HOUSE BILL 314 5

(D) THE SECRETARY SHALL ADMINISTER THE FUND. 1

(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 2
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 3

(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 4
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 5

(F) THE FUND CONSISTS OF: 6

(1) REVENUE DISTRIBUTED TO THE FUND UNDER § 11–1803 OF THIS 7
SUBTITLE; 8

(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; AND 9

(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 10
THE BENEFIT OF THE FUND. 11

(G) THE FUND MAY BE USED ONLY FOR SUPPORTING TRAINING , JOB 12
PLACEMENT, AND SERVICE PROGRAMS UNDER THIS TITLE. 13

(H) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 14
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 15

(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 16
THE GENERAL FUND OF THE STATE. 17

(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 18
WITH THE STATE BUDGET. 19

(J) MONEY EXPENDED FROM T HE FUND FOR SUPPORTING TRAINING, JOB 20
PLACEMENT, AND SERVICE PROGRAMS UNDER THIS TITLE IS SUPPLEMENTAL TO 21
AND IS NOT INTENDED TO TAKE THE PLACE OF FUNDING THAT OTHERWISE WOULD 22
BE APPROPRIATED FOR TRAINING, JOB PLACEMENT , AND SERVICE PROGRAMS 23
UNDER THIS TITLE. 24

11–1806. 25

ON OR BEFORE MARCH 15 EACH YEAR, THE SECRETARY SHALL REPORT TO 26
THE GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 27
ARTICLE, THE GENERAL ASSEMBLY ON: 28

6 HOUSE BILL 314

(1) THE NUMBER OF EMPLOYERS THAT, DURING THE IMMEDIATE LY 1
PRECEDING CALENDAR YEAR, EMPLOYED AT LEAST 100 EMPLOYEES IN THE STATE; 2

(2) THE NUMBER OF COVERED EMPLOYERS DURING THE 3
IMMEDIATELY PRECEDING CALENDAR YEAR; 4

(3) THE NUMBER OF DISPLA CED EMPLOYEES REPORTED IN 5
ACCORDANCE WITH § 11–1802 OF THIS SUBTITLE FOR THE IMMEDIATELY 6
PRECEDING CALENDAR YEAR; 7

(4) THE TOTAL AMOUNTS PA ID IN ACCORDANCE WIT H § 11–1803 OF 8
THIS SUBTITLE DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR; AND 9

(5) ANY POLICY RECOMMEND ATIONS TO SUPPORT DI SPLACED 10
EMPLOYEES. 11

11–1807. 12

THE SECRETARY SHALL: 13

(1) ON AN ANNUAL BASIS , BASED ON THE INFORMA TION REPORTED 14
UNDER § 11–1802(A) OF THIS SUBTITLE: 15

(I) VERIFY WHICH EMPLOYE RS HAVE 100 OR MORE 16
EMPLOYEES IN THE STATE; AND 17

(II) ENSURE THAT ALL EMPL OYERS WITH 100 OR MORE 18
EMPLOYEES IN THE STATE HAVE MADE THE R EPORT REQUIRED UNDER § 11–1802 19
OF THIS SUBTITLE; AND 20

(2) ADOPT REGULATIONS TO CARRY OUT THIS SUBTITLE. 21

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
1, 2026. 23