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*hb0864*
HOUSE BILL 864
P2 (6lr2779)
ENROLLED BILL
— Government, Labor, and Elections/Budget and Taxation —
Introduced by Delegates Wells, Coley, Addison, Alston, Boafo, Ivey, J. Long,
Palakovich Carr, Pasteur, Roberson, Roberts, Ruff, Ruth, Solomon,
Stinnett, Turner, Wims, Woods, and Young
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Public Works Contracts – Apprenticeship Requirements 2
(Maryland Workforce Apprenticeship Utilization Act) 3
FOR the purpose of altering certain apprenticeship requirements relating to public works 4
contracts to require ce rtain contractors and subcontractors to employ a certain 5
number of qualified qualifying new apprentices or journeyworkers necessary to meet 6
a certain applicable percentage for the project; altering which projects are subject to 7
certain apprenticeship requirements; repealing altering certain provisions of law 8
that authorize contractors and subcontractors to make certain payments to a certain 9
apprenticeship program in lieu of employing certain apprentices; requiring the 10
Secretary of Labor to annually establish a certain applicable percentage; authorizing 11
the Secretary to waive certain requirements under certain circumstances; 12
establishing that certain apprenticeship requirements apply to the University 13
2 HOUSE BILL 864
System of Maryland and Baltimore City Community College; and generally relating 1
to apprenticeship requirements for public works contracts. 2
BY repealing and reenacting, with amendments, 3
Article – State Finance and Procurement 4
Section 11–203(e), 17–601, 17–602, 17–603, 17–604, 17–605, and 17–606 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2025 Supplement) 7
BY adding to 8
Article – State Finance and Procurement 9
Section 17–601.1, 17–602.1, 17–604.1, 17–605.1, and 17–607 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2025 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – State Finance and Procurement 14
Section 17–602 15
Annotated Code of Maryland 16
(2021 Replacement Volume and 2025 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – State Finance and Procurement 20
11–203. 21
(e) (1) In this subsection, “University” means the University System of 22
Maryland, Morgan State University, or St. Mary’s College of Maryland. 23
(2) Except as otherwise provided in this subsection, this Division II does 24
not apply to the University System of Maryl and, Morgan State University, St. Mary’s 25
College of Maryland, or Baltimore City Community College. 26
(3) (i) A procurement by a University or Baltimore City Community 27
College shall comply with the policies and procedures developed by the University or 28
Baltimore City Community College and approved by the Board of Public Works and the 29
Administrative, Executive, and Legislative Review Committee of the General Assembly in 30
accordance with: 31
1. § 12 –112 of the Education Article for the University 32
System of Maryland; 33
2. § 14 –109 of the Education Article for Morgan State 34
University; 35
HOUSE BILL 864 3
3. § 14–405(f) of the Education Article for St. Mary’s College 1
of Maryland; or 2
4. § 16 –505.3 of the Education Article for Baltimore City 3
Community College. 4
(ii) 1. The review and approval of the Board of Public Works 5
shall be required for the following types of contracts with a value that exceeds $1,000,000 6
for a University or $500,000 for Baltimore City Community College: 7
A. capital improvements; and 8
B. services. 9
2. In its review of a contract for services or capital 10
improvements with a value that exceeds $1,000,000, the Board of Public Works may request 11
the comments of the appropriate agencies, including the Department of Budget and 12
Management and the Department of General Services. 13
3. For Baltimore City Community College contracts that are 14
not subject to the review and approval of the Board of Public Works under subsubparagraph 15
1 of this subparagraph: 16
A. contracts with a value of $100,000 or less shall be reviewed 17
and approved by the President of Baltimore City Community College or the President’s 18
designee; and 19
B. contracts with a value that exceeds $100,000 but does not 20
exceed $500,000 shall be approved by the Board of Trustees of Baltimore City Community 21
College. 22
(4) The policies of a University or Baltimore City Community College shall: 23
(i) to the maximum extent practicable, require the purchasing of 24
supplies and services in accordance with Title 14, Subtitle 1 of this article; 25
(ii) promote the purposes of the regulations adopted by the 26
Department of General Services governing the procurement of architectural and 27
engineering services; 28
(iii) promote the purposes of § 13 –402 of the State Personnel and 29
Pensions Article; 30
(iv) to the maximum extent practicable, be similar to § 13 –218.1 of 31
this article; and 32
4 HOUSE BILL 864
(v) to the maximum extent practicable, require the procurement of 1
food in accordance with Title 14, Subtitle 7 of this article. 2
(5) (i) Except as provided in paragraph (7) of this subsection, the 3
following provisions of Division II of this article apply to a University and to Baltimore City 4
Community College: 5
1. § 11–205 of this subtitle (“Collusion”); 6
2. § 11 –205.1 of this subtitle (“Falsification, c oncealment, 7
etc., of material facts”); 8
3. § 13 –219 of this article (“Required clauses – 9
Nondiscrimination clause”); 10
4. § 13–225 of this article (“Retainage”); 11
5. Title 14, Subtitle 3 of this article (“Minority Business 12
Participation”); 13
6. Title 14, Subtitle 7 of this article (“Certified Local Farm 14
and Fish Program”); 15
7. Title 15, Subtitle 1 of this article (“Procurement Contract 16
Administration”); 17
8. § 15 –226 of this article (“Policy established; timing of 18
payments; notice upon nonpayment; disputes; appeals”); [and] 19
9. Title 16 of this article (“Suspension and Debarment of 20
Contractors”); AND 21
10. TITLE 17, SUBTITLE 6 OF THIS ARTICLE 22
(“APPRENTICESHIP REQUIREMENTS FOR PUBLIC WORKS CONTRACTS”). 23
(ii) Except as provided in paragraph (7) of this subsection, Title 14, 24
Subtitle 8 of this article (“Employee Stock Ownership Plan Preference Program”) applies to 25
Morgan State University, St. Mary’s College of Maryland, and Baltimore City Community 26
College. 27
(iii) If a procurem ent violates the provisions of this subsection or 28
policies adopted in accordance with this subsection, the procurement contract is void or 29
voidable in accordance with the provisions of § 11–204 of this subtitle. 30
(6) (i) The State Board of Contract Appeals shall have authority over 31
contract claims related to procurement contracts awarded by: 32
HOUSE BILL 864 5
1. the University System of Maryland before July 1, 1999; 1
2. Morgan State University before July 1, 2004; and 2
3. Baltimore City Community College before July 1, 2021. 3
(ii) At the election of the Board of Regents of the University System 4
of Maryland and subject to the approval of the Board of Public Works, the State Board of 5
Contract Appeals shall have authority over contract claims related to pr ocurement 6
contracts awarded by the University after June 30, 1999. 7
(iii) At the election of the Board of Regents of Morgan State 8
University and subject to the approval of the Board of Public Works, the State Board of 9
Contract Appeals shall have authori ty over contract claims related to procurement 10
contracts awarded by the University after June 30, 2004. 11
(iv) At the election of the Board of Trustees of St. Mary’s College of 12
Maryland and subject to the approval of the Board of Public Works, the State Board of 13
Contract Appeals shall have authority over contract claims related to procurement 14
contracts awarded by St. Mary’s College of Maryland after June 30, 2006. 15
(v) At the election of the Board of Trustees of Baltimore City 16
Community College and sub ject to the approval of the Board of Public Works, the State 17
Board of Contract Appeals shall have authority over contract claims related to procurement 18
contracts awarded by Baltimore City Community College after June 30, 2021. 19
(7) Except with regard to the provisions of § 15 –113 of this article, 20
paragraphs (3), (4), and (5) of this subsection do not apply to: 21
(i) procurement by a University or Baltimore City Community 22
College from: 23
1. another unit; 24
2. a political subdivision of the State; 25
3. an agency of a political subdivision of the State; 26
4. a government, including the government of another state, 27
of the United States, or of another country; 28
5. an agency or political subdivision of a government; or 29
6. a bistate, multistate, bicounty, or multicounty 30
governmental agency; 31
6 HOUSE BILL 864
(ii) procurement by a University in support of enterprise activities 1
for the purpose of: 2
1. direct resale; 3
2. remanufacture and subsequent resale; or 4
3. procurement by the University for overseas programs; or 5
(iii) procurement by the University System of Maryland for: 6
1. services of managers to invest, in accordance with the 7
management and investment policies adopted by the Board of Regents of the University 8
System of Mary land, gift and endowment assets received by the University System of 9
Maryland in accordance with § 12–104(e) of the Education Article; or 10
2. expenditures to manage, maintain, and enhance, in 11
accordance with the management and investment policies adopted by the Board of Regents 12
of the University System of Maryland, the value of gift and endowment assets received by 13
the University System of Maryland in accordance with § 12–104(e) of the Education Article. 14
17–601. 15
(a) In this subtitle the following words have the meanings indicated. 16
(B) “APPLICABLE PERCENTAGE ” MEANS THE PERCENTAGE OF TOTAL 17
LABOR HOURS OF WORK ON A COVERED PROJECT , INCLUDING CONSTRUCTI ON, 18
ALTERATION, AND REPAIR WORK , PERFORMED BY AN A QUALIFYING APPRENTICE 19
OR A JOURNEYWORKER ESTABLISHED UNDER § 17–602.1 OF THIS SUBTITLE. 20
[(b)] (C) “Apprenticeship training program” means an apprenticeship training 21
program that: 22
(1) is registered with, and approved by, the Apprenticeship and Training 23
Council or the U.S. Department of Labor; AND 24
(2) COMPLIES WITH THE REQUIREMENTS OF 29 C.F.R. PART 29 AND 25
PART 30. 26
[(c)] (D) “Covered craft” means a classification of workers listed in the prevailing 27
wage determination applicable to the covered project. 28
[(d)] (E) “Covered project” means a project for the construction of a public work[, 29
as defined under § 17 –201 of this title, that is valued at $500,000 or more ] THAT IS 30
SUBJECT TO SUBTITLE 2 OF THIS TITLE. 31
HOUSE BILL 864 7
[(e)] (F) “Department” means the Maryland Department of Labor. 1
[(f)] (G) “Fund” means the State Apprenticeship Training Fund established 2
under § 17–602 of this subtitle. 3
(H) “LABOR HOURS” MEANS THE TOTAL NUMB ER OF HOURS DEVOTED TO 4
THE PERFORMANCE OF C ONSTRUCTION, ALTERATION, OR REPAIR WORK BY AN Y 5
INDIVIDUAL AND EXCLUDES HOURS WORKED BY: 6
(1) FOREMEN; 7
(2) SUPERINTENDENTS; 8
(3) OWNERS; OR 9
(4) ANY PERSON EMPLOYED IN A BONA FIDE EXECU TIVE, 10
ADMINISTRATIVE, OR PROFESSIONAL CAPA CITY, AS DEFINED IN 29 C.F.R. PART 11
541. 12
[(g)] (I) “Participates in an apprenti ceship training program” means that a 13
contractor or subcontractor makes regular financial contributions for each covered craft to 14
apprenticeship training programs for covered crafts during the term of the covered project 15
that are at least equal to the hour ly fringe benefit contribution rates required for 16
apprenticeship training by the applicable prevailing wage determination for the project, as 17
specified by the Secretary. 18
(J) “QUALIFIED QUALIFYING APPRENTICE OR JOURNE YWORKER” MEANS 19
AN INDIVIDUAL WHO: 20
(1) HAS GRADUATED FROM A REGISTERED APPRENTIC ESHIP 21
TRAINING PROGRAM WITHIN 3 YEARS BEFORE THE STA RT DATE OF THE COVER ED 22
PROJECT; OR 23
(2) IS CURRENTLY COMPLETING, OR HAS COMPLETED WITHIN 3 YEARS 24
BEFORE THE START DAT E OF THE COVERED PRO JECT, THE EQUIVALENT OF AN 25
APPRENTICESHIP IN LE NGTH AND CONTENT OF WORK EXPERIENCE AND ALL 26
REQUIREMENTS IN THE APPRENTICESHIP STANDARDS FOR A CRAFT; OR 27
(2) (3) IS PARTICIPATING ENROLLED IN AN A REGISTERED 28
APPRENTICESHIP TRAINING PROGRAM. 29
8 HOUSE BILL 864
(K) “QUALIFIED APPRENTICESHIP–CONNECTED APPRENTICESHIP 1
PROGRAM” MEANS A PREAPPRENTICESHIP PROGRAM, APPRENTICESHIP PROGRAM, 2
OR WORKFORCE DEVELOPMENT PROGRAM THAT: 3
(1) DEMONSTRATES THROUGH VERIFIABLE DATA OVER THE 4
PRECEDING 2 YEARS A CONSISTENT R ECORD OF PLACING PAR TICIPANTS INTO A 5
REGISTERED APPRENTICESHIP TRAINING PROGRAM; AND 6
(2) IS AFFILIATED WITH O R PROVIDES PARTICIPA NTS WITH ACCESS 7
TO A REGISTERED APPRENTICESHIP TRAINING PROGRAM THAT HAS A COMPLETION 8
RATE OF AT LEAST 25%, AS DETERMINED BY THE DEPARTMENT. 9
[(h)] (K) (L) “Secretary” means the Secretary of Labor. 10
17–601.1. 11
(A) THIS SUBTITLE APPLIES ONLY TO CONTRACTORS AND 12
SUBCONTRACTORS WHO EMPLOY FOUR OR MORE INDIVIDUALS TO PERFORM WORK 13
ON A COVERED PROJECT. 14
(B) NOTHING IN THIS SUBTI TLE MAY PREEMPT A LO CAL LA W OR POLICY 15
PROVIDING FOR ADDITIONAL SKILLED AND TRAINED WORKFORCE REQUIREMENTS 16
ON PUBLIC WORKS PROJECTS. 17
17–602. 18
(a) There is a State Apprenticeship Training Fund in the Department. 19
(b) The Fund consists of: 20
(1) payments made by contractors or sub contractors in accordance with 21
this subtitle and Subtitle 6A of this title; 22
(2) penalties collected as a result of violations of this subtitle and Subtitle 23
6A of this title; and 24
(3) penalties collected as a result of violations of Title 14, Subtitle 8 of this 25
article; AND 26
(4) ANY MONEY FROM ANY O THER SOURCE ACCEPTED FOR THE 27
BENEFIT OF THE FUND. 28
(c) The Fund is a special, nonlapsing fund that is not subject to § 7 –302 of this 29
article. 30
HOUSE BILL 864 9
(d) The State Treasurer shall hold the Fund separately, and the Comptroller shall 1
account for the Fund. 2
(e) The Secretary shall use money in the Fund to: 3
(1) SUBJECT TO SUBSECTIO N (F) OF THIS SECTION , promote OR 4
SUPPORT preapprenticeship programs , APPRENTICESHIP PROGR AMS, and other 5
workforce development progra ms in the State’s public secondary schools and community 6
colleges that assist students in preparing for and entering apprenticeship training 7
programs; and 8
(2) pay any costs associated with carrying out the provisions of this subtitle 9
and Subtitle 6A of this title or Title 14, Subtitle 8 of this article. 10
(F) FUNDS DISTRIBUTED UND ER SUBSECTION (E)(1) OF THIS SECTION 11
SHALL BE AWARDED ONL Y TO QUALIFIED APPRENTICESHIP–CONNECTED 12
APPRENTICESHIP PROGRAMS. 13
17–602.1. 14
(A) FOR CONSTRUCTION ON A COVERED PROJECT FOR WHICH A PUBLIC 15
BODY ADVERTISES FOR BIDS OR PROPOSALS FO R A PUBLIC WORKS CON TRACT ON 16
OR AFTER JANUARY 1, 2027, THE APPLICABLE PERCENTAGE IS 20%. 17
(B) (1) ON OR BEFORE DECEMBER 31, 2027 2028, AND EACH EVERY 18
OTHER DECEMBER 31 THEREAFTER, THE SECRETARY SHALL SET THE APPLICABLE 19
PERCENTAGE THAT WILL APPLY FOR THE FOLLOWING CALENDAR YEAR. 20
(2) THE APPLICABLE PERCEN TAGE ADOPTED UNDER T HIS 21
SUBSECTION SHALL BE BASED ON, OVER THE PREVIOUS 2 YEARS: 22
(I) ENROLLMENT IN STATE APPRENTICESHIP PROGRAMS; AND 23
(II) ACTUAL APPRENTICESHIP UTILIZATION ON PUBLIC WORKS 24
PROJECTS. 25
(C) THE SECRETARY MAY ALTER T HE APPLICABLE PERCEN TAGE FOR A 26
COVERED PROJECT TO M EET ANY RATIO REQUIR EMENTS NECESSARY FOR 27
APPRENTICE OR JOURNEYWORKER SUPERVISION IN THE COVERED CRAFT. 28
17–603. 29
(a) A contractor that is awarded a procurement contract for a covered project shall 30
provide to a unit, as a condition of receiving the contract, written verification that: 31
10 HOUSE BILL 864
(1) the contractor [participates in an apprenticeship training program for 1
each covered craft in which it will employ persons for the covered project ] AND IS 2
EMPLOYING THE NUMBER OF QUALIFIED QUALIFYING NEW APPRENTICES OR 3
JOURNEYWORKERS FOR A COVERED PROJECT NECE SSARY TO MEET THE 4
APPLICABLE PERCENTAGE FOR THE COVERED PROJECT; OR 5
(2) the contractor will make payments to the Fund IN ACCORDANCE WITH 6
§ 17–605 OF THIS SUBTITLE[; or 7
(3) the contractor will make payments in amounts determined under § 8
17–605 of this subtitle to a registered apprenticeship program or to an organizat ion that 9
has registered apprenticeship programs QUALIFIED APPRENTICESHIP PROGRAM for the 10
purpose of supporting these programs]. 11
(b) The written verification required under subsection (a) of this section shall be 12
provided by a contractor to the unit respo nsible for the project before the contractor 13
commences performance under the procurement contract. 14
[(c) Organizations that have registered QUALIFIED apprenticeship programs and 15
receive funds from contractors under subsection (a)(3) of this section shall certify to the 16
Secretary that all funds received are used solely for the purpose of improving or expanding 17
apprenticeship training in the State. 18
(d) The Secretary shall adopt regulations to establish a process for auditing 19
organizations that provide registered QUALIFIED apprenticeship programs to ensure that 20
all funds received under subsection (a)(3) of this section are used solely to improve and 21
expand apprenticeship programs in the State.] 22
17–604. 23
(a) A subcontractor that performs work at a value exceeding the small 24
procurement amount specified in § 13–109 of this article for a covered project shall provide 25
to a unit written verification that: 26
(1) the subcontractor [participates in an apprenticeship training program 27
for each covered craft in which it will employ persons] AND IS EMPLOYING THE NUMBER 28
OF QUALIFIED QUALIFYING NEW APPRENTICES OR JOURN EYWORKERS FOR A 29
COVERED PROJECT NECE SSARY TO MEET THE APPLICABLE PERCE NTAGE for the 30
covered project; OR 31
(2) the subcontractor will make payments to the Fund IN ACCORDANCE 32
WITH § 17–605 OF THIS SUBTITLE[; or 33
(3) the subcontractor will make payments in amounts determined under § 34
17–605 of this subtitle to a registered apprenticeship program or to an organization that 35
HOUSE BILL 864 11
has registered apprenticeship programs QUALIFIED APPRENTICESHIP PROGRAM for the 1
purpose of supporting these programs]. 2
(b) The written verification required under subsection (a) of this section shall be 3
provided by a subcontractor to the unit responsible for the project before the subcontractor 4
commences performance under the procurement contract. 5
[(c) Organizations that have registered QUALIFIED apprenticeship programs and 6
receive funds from contractors under subsection (a)(3) of this section shall certify to the 7
Secretary that all funds received are used solely for the purpose of improving or expanding 8
apprenticeship training in the State. 9
(d) The Secretary shall adopt regulations to establish a process for auditing 10
organizations that provide registered QUALIFIED apprenticeship programs to ensure that 11
all funds received under subsection (a)(3) of this section are used solely to improve and 12
expand apprenticeship programs in the State.] 13
17–604.1. 14
(A) IN THIS SECTION , “ALL APPLICABLE APPRE NTICESHIP TRAINING 15
PROGRAMS” MEANS EACH APPRENTIC ESHIP TRAINING PROGR AM THAT HAS A 16
GEOGRAPHIC AREA OF O PERATION THAT INCLUDES THE LO CATION OF THE 17
COVERED PROJECT AND HAS A USUAL AND CUST OMARY BUSINESS PRACT ICE OF 18
ENTERING INTO AGREEM ENTS WITH EMPLOYERS FOR THE PLACEMENT OF 19
APPRENTICES IN THE COVERED CRAFT. 20
(B) THE SECRETARY MAY WAIVE THE REQUIREMENTS UNDER § 17–603 OR 21
§ 17–604 OF THIS SUBTITLE IF A CONTRACTOR OR SUBC ONTRACTOR SUBMITS A 22
WRITTEN WAIVER APPLI CATION, INCLUDING ANY SUPPOR TING DOCUMENTATION 23
REQUIRED BY THE SECRETARY, DEMONSTRATING THAT T HE CONTRACTOR OR 24
SUBCONTRACTOR: 25
(1) SUBJECT TO SUBSECTION (C) OF THIS SECTION, HAS REQUESTED 26
QUALIFIED APPRENTICE S FROM ALL APPLICABL E APPRENTICESHIP TRA INING 27
PROGRAMS; AND 28
(2) FOR EACH REQUEST: 29
(I) THE REQUEST HAS BEEN DENIED FOR A REASON THAT IS 30
NOT THE RESULT OF A REFUSAL BY THE CONTR ACTOR OR SUBCONTRACT OR TO 31
COMPLY WITH THE ESTA BLISHED STANDARDS AN D REQUIREMENTS OF TH E 32
APPRENTICESHIP TRAINING PROGRAM; OR 33
12 HOUSE BILL 864
(II) THE APPRENTICESHIP TRAINING PROGRAM HAS FAILED TO 1
RESPOND TO THE REQUEST WITHIN 10 BUSINESS DAYS AFTER THE DATE ON WHICH 2
THE APPRENTICESHIP TRAINING PROGRAM RECEIVED THE REQUEST. 3
(C) TO REQUEST QUALIFIED APPRENTICES FROM AN APPRENTICESHIP 4
TRAINING PROGRAM, A CONTRACTOR OR SUBCONTRACTOR SHALL SUBMIT: 5
(1) A REQUEST BY TELEPHO NE AND IN WRITING SE NT 6
ELECTRONICALLY AND BY REGISTERED MAIL; AND 7
(2) A REQUEST TO AN APPREN TICESHIP TRAINING PR OGRAM WITH 8
WHICH THE CONTRACTOR OR SUBCONTRACTOR DOE S NOT HAVE AN EXISTI NG 9
PARTICIPATION AGREEMENT, AT LEAST 90 CALENDAR DAYS BEFORE THE DATE THE 10
CONTRACTOR OR SUBCONTRACTOR EXPECTS TO USE APPRENTICE LABOR. 11
17–605. 12
(a) (1) A contractor or subcontractor [that elects to make payments to the 13
Fund in accordance with this subtitle ] shall make payments, as determined by the 14
Secretary, not to exceed 25 cents per hour for each employee in each covered craft who is 15
employed by the contractor or subcontractor on the covered project, IF THE CONTRACTOR 16
OR SUBCONTRACTOR: 17
(I) ELECTS TO MAKE PAYMENTS TO THE FUND OR A QUALIFIED 18
APPRENTICESHIP PROGRAM IN ACCORDANCE WITH THIS SUBTITLE; OR 19
(II) FAILS TO MEET THEIR FULL QUALIFIED QUALIFYING NEW 20
APPRENTICE OR JOURNE YWORKER UTILIZATION REQUIREMENT UNDER TH IS 21
SUBTITLE. 22
(2) If the prevailing wage determination for a covered craft includes a 23
fringe benefit contribution for apprenticeship programs that exceeds 25 cents, the 24
contractor or subcontractor shall pay the difference to the employees in the covered craft in 25
wages. 26
(3) Payments made under this section fulfill any obligations of the 27
contractor or subcontractor regarding contributions for apprenticeship programs included 28
in the prevailing wage determination under § 17–208 of this title. 29
(4) Payments made under paragraph (1) of this subsection are permissible 30
deductions under § 17–215(b) of this title. 31
(5) Payments made to the Fund in accordance with paragrap h (1) of this 32
subsection shall be made on a monthly basis. 33
HOUSE BILL 864 13
(b) (1) If the Secretary determines that a contractor or subcontractor for a 1
covered project has made contributions to an apprenticeship training program at rates 2
lower than those required by this subtitle, OR HAS FAILED TO SATISFY THE QUALIFIED 3
QUALIFYING NEW APPRENTICE AND JOURNEYWORKER UTILIZATION REQUIREMENT 4
UNDER THIS SUBTITLE, the contractor or subcontractor shall make payments to the Fund 5
[for the ] EQUAL TO THE PRO RAT A difference between i ts contribution and the 6
contribution rate required by this subtitle. 7
(2) Payments made to the Fund in accordance with paragraph (1) of this 8
subsection shall be made on a monthly basis. 9
(c) A contractor shall report all apprenticeship payments made und er this 10
subtitle on prevailing wage payroll records required by § 17–220 of this title. 11
(d) (1) A contractor or subcontractor that makes contributions to the Fund , a 12
registered apprenticeship OR A QUALIFIED APPRE NTICESHIP program, or an 13
organization that has registered apprenticeship programs may request that its 14
contributions be directed to a specific preapprenticeship, APPRENTICESHIP, or workforce 15
development program. 16
(2) The Secretary shall make a good–faith effort to accommodate requests 17
received FOR CONTRIBUTIONS TO THE FUND in accordance with paragraph (1) of this 18
subsection. 19
17–605.1. 20
(A) WHILE CONSTRUCTION ACTIVITY ON A COVERED PROJECT IS ONGOING, 21
EACH CONTRACTOR A ND SUBCONTRACTOR PER FORMING WORK ON THE COVERED 22
PROJECT SHALL SUBMIT A MONTHLY REPORT TO THE DEPARTMENT THAT 23
INCLUDES: 24
(1) FOR EACH APPRENTICE OR JOURNEYWORKER: 25
(I) THE NAME OF THE APPRENTICE OR JOURNEYWORKER; 26
(II) THE NAME OF THE ASSOCIATED APPRENTICESHIP TRAINING 27
PROGRAM; AND 28
(III) THE APPRENTICE REGIS TRATION OR IDENTIFIC ATION 29
NUMBER; 30
(2) THE TOTAL NUMBER OF APPRENTICES AND LABO R HOURS 31
WORKED, CATEGORIZED BY TRADE OR CRAFT; AND 32
14 HOUSE BILL 864
(3) THE TOTAL NUMBER OF JOURNEYWORKERS AND L ABOR HOURS 1
WORKED, CATEGORIZED BY TRADE OR CRAFT. 2
(B) WITHIN 60 DAYS AFTER COMPLETING WORK ON A COVERED PROJECT, 3
EACH CONTRACTOR AND SUBCONTRACTOR SHALL SUBMIT TO THE DEPARTMENT: 4
(1) A STATEMENT OF THE TOTAL NUMBER OF LABOR HOURS OF WORK 5
ON A COVERED PROJECT , INCLUDING CONSTRUCTION, ALTERATION, AND REPAIR 6
WORK, PERFORMED BY AN APPRENTICE OR JOURNEYWORKER; AND 7
(2) IF APPLICABLE , A WRITTEN DECLARATIO N AND SUPPORTING 8
DOCUMENTS JUSTIFYING ANY WAIVER RECEIVED UNDER § 17–604.1 OF THIS 9
SUBTITLE. 10
(C) THE DEPARTMENT SHALL MAINTAIN ON ITS WEBSITE: 11
(1) DATA AGGREGATED FROM THE REPORTS RECEIVED UNDER 12
SUBSECTIONS (A) AND (B) OF THIS SECTION SHOW ING THE USE OF QUALIFIED 13
QUALIFYING NEW APPRENTICES AND JOUR NEYWORKERS ON COVERE D PROJECTS; 14
AND 15
(2) DESCRIPTIONS OF THE CIRCUMSTANCES OF ANY WAIVER 16
GRANTED UNDER § 17–604.1 PAYMENTS MADE BY EAC H CONTRACTOR OR 17
SUBCONTRACTOR UNDER § 17–605 OF THIS SUBTITLE. 18
17–606. 19
(a) A contractor or subcontractor that fails to meet the requirements of this 20
subtitle shall be liable for an amount equal to: 21
(1) twice the amount of unpaid apprenticeship training contributions 22
required by §§ 17–603 AND 17–604 OF this subtitle; AND 23
(2) $100 MULTIPLIED BY THE TOTAL LABOR HOURS FOR WHICH THE 24
REQUIREMENT UNDER § 17–603 OF THIS SUBTITLE WAS APPLICABLE A FINE OF UP 25
TO $10,000. 26
(b) (1) In this subsection, “willfully” means representations or omissions 27
known to be false or made with deliberate ignorance or reckless disregard for their truth or 28
falsity. 29
(2) Any person, firm, or corporation that is found to have made willfully a 30
false or fraudulent representation or omission regarding a material fact in connection with 31
HOUSE BILL 864 15
prevailing wage records required by this section shall be liable for a civil penalty in an 1
amount of up to $1,000 for each employee and each falsified record. 2
(3) Penalties shall be recoverable [in civil actions and paid to the State ] 3
UNDER THE MARYLAND FALSE CLAIMS ACT BY ORDER OF THE SECRETARY AND 4
PAID TO THE GENERAL FUND. 5
(c) (1) The Secretary shall adopt regulations to e stablish administrative 6
procedures for the collection of payments under this subtitle. 7
(2) (i) The Secretary may file suit to enforce this section in any court of 8
competent jurisdiction. 9
(ii) In an action filed under this subsection, the court shall require 10
the contractor or subcontractor to pay the amount required by subsection (a) of this section, 11
including interest, reasonable counsel fees, and court costs. 12
17–607. 13
THE SECRETARY SHALL ADOPT REGULATIONS NECESSARY TO CARRY OUT THE 14
REQUIREMENTS OF THIS SUBTITLE. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2026. 17
Approved:
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Governor.
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Speaker of the House of Delegates.
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President of the Senate.