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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0317*
HOUSE BILL 317
C8, P2, K3 6lr0889
By: Delegate Stewart
Introduced and read first time: January 15, 2026
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Recipients of Economic Development Assistance or State Contracts – 2
Certification of Compliance With State Labor Laws 3
FOR the purpose of requiring certain persons that receive certain State economic 4
development assistance to make a certification each year that the person was not the 5
subject of a final adverse determination concerning a certain obligation and is not 6
currently failing to comply with certain outstanding requirements under a prior final 7
judgment or order; requirin g a certain unit of State government to initiate a certain 8
pause on disbursements or approvals of certain economic development assistance or 9
new or renewals of certain State contracts under certain circumstances; requiring a 10
certain unit to remove a certai n pause if certain circumstances are met; authorizing 11
the taking of certain actions if a person willfully files a false certification; providing 12
that this Act does not create a new audit program; authorizing certain units to release 13
certain information about certain persons required to make the certification; and 14
generally relating to certifications required of persons receiving State ec onomic 15
development assistance or that have entered into certain contracts. 16
BY adding to 17
Article – Economic Development 18
Section 5–108 19
Annotated Code of Maryland 20
(2024 Replacement Volume and 2025 Supplement) 21
BY adding to 22
Article – State Finance and Procurement 23
Section 17–1001 and 17–1002 to be under the new subtitle “Subtitle 10. Certification 24
of Compliance With Labor Laws” 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2025 Supplement) 27
2 HOUSE BILL 317
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Economic Development 3
5–108. 4
IF A PERSON IS REQUIRED TO FILE AN ANNUAL CERTIFICATION UNDER § 17–1001 5
OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE PERSON IS NOT ELIGIBLE 6
TO RECEIVE PAYMENT O F A STATE ECONOMIC DEVELO PMENT GRANT , LOAN, LOAN 7
GUARANTEE, OR TAX CREDIT IN A F ISCAL YEAR UNTIL THE PERSON HAS FILED THE 8
ANNUAL CERTIFICATION APPLICABLE FOR THAT FISCAL YEAR. 9
Article – State Finance and Procurement 10
SUBTITLE 10. CERTIFICATION OF COMPLIANCE WITH LABOR LAWS. 11
17–1001. 12
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 13
INDICATED. 14
(B) “ADMINISTERING AGENCY ” MEANS A STATE AGENCY OR UNIT THAT 15
ADMINISTERS: 16
(1) ECONOMIC DEVELOPMENT ASSISTANCE; OR 17
(2) A STATE PROCUREMENT CONTRACT. 18
(C) “COVERED OBLIGATIONS ” MEANS, TO THE EXTENT APPLICABL E TO A 19
COVERED RECIPIENT’S OPERATIONS IN THE STATE, REQUIREMENTS UNDER TITLE 3, 20
SUBTITLES 2, 3, 4, 5, 8, AND 9 OF THE LABOR AND EMPLOYMENT ARTICLE. 21
(D) “COVERED RECIPIENT ” MEANS A PERSON THAT , IN THE PRECEDING 22
FISCAL YEAR: 23
(1) RECEIVED $100,000 OR MORE IN ECONOMIC DEVELOPMENT 24
ASSISTANCE; OR 25
(2) HELD AGGREGATE STATE PROCUREMENT CONTRACTS OF $250,000 26
OR MORE. 27
HOUSE BILL 317 3
(E) “ECONOMIC DEVELOPMENT ASSISTANCE” MEANS ANY STATE PROGRAM 1
THAT PROVIDES BUSINE SS OR ECONOMIC DEVEL OPMENT SUPPORT , INCLUDING 2
GRANTS, LOANS, LOAN GUARANTEES, OR TAX CREDITS. 3
(F) “FINAL ADVERSE DETERMINATION” MEANS: 4
(1) A FINAL NONAPPEALABLE COURT JUDGMENT OR ADMINISTRATIVE 5
ORDER FINDING A VIOLATION OF A COVERED OBLIGATION; OR 6
(2) A SETTLEMENT THAT IN CLUDES AN ADMISSION OR STIPULATED 7
FINDING OF A VIOLATION OF A COVERED OBLIGATION. 8
(G) “PAUSE” MEANS A TEMPORARY INELIGIBILITY OF A COVERED RECIPIENT 9
TO RECEIVE: 10
(1) NEW DISBURSEMENTS OF PREVIOUSLY APPROVED STATE 11
ECONOMIC DEVELOPMENT ASSISTANCE; 12
(2) NEW APPROVALS OF STATE ECONOMIC DEVELO PMENT 13
ASSISTANCE; OR 14
(3) NEW CONTRACT AWARDS OR RENEWALS OF EXISTING CONTRACTS. 15
17–1002. 16
(A) (1) ON OR BEFORE JULY 1 EACH YEAR BEGINNING IN 2027, EACH 17
COVERED RECIPIENT SHA LL FILE WITH THE ADM INISTERING AGENCY A 18
CERTIFICATION SIGNED BY AN AUTHORIZED OFF ICER STATING THAT , TO THE 19
SIGNER’S KNOWLEDGE AFTER REASONABLE INQUIRY, DURING THE YEAR PRECEDING 20
THE CERTIFICATION DATE, THE COVERED RECIPIENT: 21
(I) WAS NOT THE SUBJECT OF A FINAL ADVERSE 22
DETERMINATION CONCERNING A COVERED OBLIGATION; AND 23
(II) IS NOT CURRENTLY FAI LING TO COMPLY WITH ANY 24
OUTSTANDING REQUIREM ENT UNDER A PRIOR FI NAL JUDGMENT OR ORDE R 25
CONCERNING A COVERED OBLIGATION. 26
(2) A CERTIFICATION MAY BE SUBMITTED ELECTRONIC ALLY 27
THROUGH A STATE VENDOR OR INCENTIVE PORTAL DESIGNATED BY THE BOARD OF 28
PUBLIC WORKS OR THE DEPARTMENT OF COMMERCE. 29
4 HOUSE BILL 317
(B) (1) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION , IF A 1
COVERED RECIPIENT DOES NOT FILE THE CERTIFICATION RE QUIRED UNDER 2
SUBSECTION (A) OF THIS SECTION THE ADMINISTERING AG ENCY SHALL SEND 3
WRITTEN NOTICE TO THE COVERED RECIPIENT THAT THE COVERED RECIPIENT HAS 4
30 DAYS TO COMPLY WITH THE CERTIFICATION REQUIREMENT. 5
(2) IF A COVERED RECIPIEN T DOES NOT FILE THE CERTIFICATION 6
WITHIN 30 DAYS AFTER THE NOTIC E IS SENT , THE ADMINISTERING AG ENCY SHALL 7
INITIATE A PAUSE OF THE COVERED RECIPIENT TO REMAIN IN EFFECT UNTIL: 8
(I) THE CERTIFICATION IS FILED; AND 9
(II) IF THE COVERED RECIP IENT WAS UNABLE TO M AKE THE 10
CERTIFICATION DUE TO THE FAILURE TO COMPL Y WITH A FINAL ADVER SE 11
DETERMINATION, PRIOR FINAL JUDGMENT , OR ORDER CONCERNING A COVERED 12
OBLIGATION, THE LATER OF: 13
1. 12 MONTHS AFTER THE DAT E OF THE MOST RECENT 14
FINAL ADVERSE DETERMINATION; OR 15
2. THE COVERED RECIPIENT’S COMPLETION OF ALL 16
CORRECTIVE ACTIONS A ND PAYMENTS REQUIRED BY THE PRIOR FINAL ADVERSE 17
DETERMINATION OR ORDER. 18
(C) NOTHING IN THIS SECTION REQUIRES: 19
(1) A COVERED RECIPIENT TO REIMBURSE ANY FUN DS PREVIOUSLY 20
RECEIVED; OR 21
(2) THE TERMINATION OF EXISTING CONTRACTS. 22
(D) AN AGENCY MAY NOT INI TIATE A PAUSE DUE TO A FINAL ADVERSE 23
DETERMINATION IF: 24
(1) TOTAL MONETARY RELIE F, INCLUDING WAGES , PENALTIES, AND 25
CONTRIBUTIONS, IS LESS THAN $5,000; 26
(2) THERE IS NO FINDING OF WILLFULNESS , CHILD LABOR, OR 27
MISCLASSIFICATION; AND 28
(3) THE RECIPIENT PAID THE MONETARY REL IEF IN FULL WITHIN 30 29
DAYS AFTER THE DETERMINATION. 30
HOUSE BILL 317 5
(E) A WILLFULLY FALSE CERTIFICATION MAY: 1
(1) BE REFERRED TO THE OFFICE OF THE ATTORNEY GENERAL UNDER 2
THE MARYLAND FALSE CLAIMS ACT; AND 3
(2) CONSTITUTE GROUNDS F OR SUSPENSION OR DEB ARMENT UNDER 4
TITLE 16 OF THIS ARTICLE. 5
(F) A PAUSE UNDER THIS SEC TION MAY NOT BE CONSIDERE D TO BE A 6
PENALTY. 7
(G) (1) THIS SECTION DOES NOT CREATE A NEW AUDIT PROGRAM. 8
(2) THE BOARD OF PUBLIC WORKS MAY ADOPT A SINGLE–QUESTION 9
MODEL CERTIFICATION FORM AND INTEGRATE FILING INTO EXISTING PORTALS. 10
(H) AN ADMINISTERING AGEN CY MAY PUBLISH A LIS T INDICATING WH ICH 11
COVERED RECIPIENTS: 12
(1) HAVE COMPLIED WITH THE CERTIFICATION REQUIREMENT; OR 13
(2) ARE PAUSED IN ACCORDANCE WITH THIS SECTION. 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
October 1, 2026. 16