State Procurement - Apprenticeship Program Accountability and Completion

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1165*

HOUSE BILL 1165
P2 6lr1705
CF SB 673
By: Delegate Williams
Introduced and read first time: February 11, 2026
Assigned to: Government, Labor, and Elections
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 7, 2026

CHAPTER ______

AN ACT concerning 1

State Procurement – Apprenticeship Program Accountability and Completion 2

FOR the purpose of requiring certain apprenticeship programs utilized in certain State 3
procurements to have at least a certain completion rate, as determined by the 4
Maryland Department of Labor; and generally relating to the use of apprentices in 5
State procurement. 6

BY repealing and reenacting, with amendments, 7
Article – State Finance and Procurement 8
Section 14–801, 14–802, 17–201, 17–205, 17–601(b), and 17 –6A–01(f) 17–601, and 9
17–6A–01 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 17–601(a), (e), (f), (g), and (h), 17–602, 17–603(a), 17–604(a), 17–6A–01(a), 15
(d), and (e), and 17–6A–02(a) 16
Annotated Code of Maryland 17
(2021 Replacement Volume and 2025 Supplement) 18

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

Article – State Finance and Procurement 21
2 HOUSE BILL 1165

14–801. 1

(a) In this subtitle the following words have the meanings indicated. 2

(B) “APPRENTICESHIP COHORT ” MEANS A GROUP OF APP RENTICES 3
REGISTERED WITH A SP ECIFIC APPRENTICESHI P PROGRAM DURING A 1–YEAR 4
PERIOD, EXCLUDING ANY APPREN TICES TERMINATED DUR ING THEIR 5
PROBATIONARY PERIOD. 6

(C) “COMPLETION RATE” MEANS: 7

(1) FOR GROUP NONJOINT A PPRENTICESHIP PROGRA MS, THE 8
PERCENTAGE OF AN APP RENTICESHIP COHORT PER EMPLOYER THAT REC EIVES A 9
CERTIFICATE OF APPRE NTICESHIP COMPLETION WITHIN 1 YEAR AFTER THE 10
PROJECTED COMPLETION DATE; OR 11

(2) FOR GROUP JOINT , INDIVIDUAL NONJOINT , INDIVIDUAL JOINT , 12
AND WAIVER APPRENTICES HIP PROGRAMS , THE PERCENTAGE OF AN 13
APPRENTICESHIP COHORT FOR THE PROGRAM TH AT RECEIVES A CERTIF ICATE OF 14
APPRENTICESHIP COMPL ETION WITHIN 1 YEAR AFTER THE PROJE CTED 15
COMPLETION DATE. 16

(b) (D) “Covered procurement” means a procurement contract that: 17

(1) meets the criteria established by the Chief Procurement Officer, in 18
consultation with the Secretary and, for contracts subject to Title 3.5 of this article, the 19
Secretary of Information Technology, under § 14–802 of this subtitle; and 20

(2) is not a public work contract subject to § 17–202 of this article. 21

(c) (E) “Department” means the Maryland Department of Labor. 22

(d) (F) “Eligible internship program” means an internship program that 23
requires a contractor or other entity to provide paid internships that meet standards 24
established by the Secretary. 25

(e) “Registered apprenticeship program” means an apprenticeship program that: 26

(1) is registered with and approved by the Division of Workforce 27
Development and Adult Learning; AND 28

(2) HAS A COMPLETION RATE OF AT LEAST 25%, AS DETERMINED BY 29
THE DEPARTMENT. 30

HOUSE BILL 1165 3

(G) “GROUP JOINT APPRENTIC ESHIP PROGRAM ” MEANS AN 1
APPRENTICESHIP PROGR AM THAT HAS A COMMIT TEE, COMPOSED OF AN EQUAL 2
NUMBER OF REPRESENTATIVES OF EMPLOYERS A ND EMPLOYEES, THAT HAS BEEN 3
JOINTLY ESTABLISHED BY AN EMPLOYER OR GR OUP OF EMPLOYERS AND A 4
COLLECTIVE BARGAINING AGENT OR AGENTS. 5

(H) “GROUP NONJOINT APPREN TICESHIP PROGRAM ” MEANS AN 6
APPRENTICESHIP PROGRAM SPONSORED BY TWO OR MORE EMPLOYERS WI THOUT 7
THE PARTICIPATION OF A COLLECTIVE BARGAINING AGENT. 8

(I) “INDIVIDUAL JOINT APPR ENTICESHIP PROGRAM ” MEANS AN 9
APPRENTICESHIP PROGR AM SPONSORED BY ONE EMPLOYER WITH THE 10
PARTICIPATION OF A COLLECTIVE BARGAINING AGENT. 11

(J) “INDIVIDUAL NONJOINT A PPRENTICESHIP PROGRA M” MEANS AN 12
APPRENTICESHIP PROGR AM SPONSORED BY ONE EMPLOYER WITHOUT THE 13
PARTICIPATION OF A COLLECTIVE BARGAINING AGENT. 14

(K) “REGISTERED APPRENTICE SHIP PROGRAM ” MEANS AN 15
APPRENTICESHIP PROGRAM THAT: 16

(1) IS REGISTERED WITH A ND APPROVED BY THE DIVISION OF 17
WORKFORCE DEVELOPMENT AND ADULT LEARNING; AND 18

(2) IF THE PROGRAM HAS G RADUATED AT LEAST ON E 19
APPRENTICESHIP COHOR T, HAS A COMPLETION RAT E OF AT LEAST 25%, AS 20
VERIFIED BY THE DEPARTMENT. 21

(f) (L) “Secretary” means the Secretary of Labor. 22

(M) “WAIVER APPRENTICES HIP PROGRAM ” MEANS AN APPRENTICES HIP 23
PROGRAM SPONSORED BY AN INDIVIDUAL OR GRO UP OF EMPLOYERS WHER E THE 24
APPLICABLE COLLECTIVE BARGAINING AGENT WAIVED PARTICIPATION. 25

14–802. 26

(a) This subtitle applies to a covered procurement made by a unit. 27

(b) A contractor awarded a covered procurement with an estimated total dollar 28
value of $1,000,000 or more shall utilize A REGISTERED APPRENTICESHIP PROGRAM OR 29
an eligible internship program. 30

(c) [A contractor awarded a covered procurement shall utilize a reg istered 31
apprenticeship program. 32

4 HOUSE BILL 1165

(d)] The Chief Procurement Officer, in consultation with the Secretary and, for 1
contracts subject to Title 3.5 of this article, the Secretary of Information Technology: 2

(1) shall adopt regulations establishing the defin ition of “covered 3
procurement”; and 4

(2) may adopt: 5

(i) regulations to improve the recruitment or skills of employees of 6
vendors; or 7

(ii) other regulations necessary to carry out this subtitle, including 8
waiver processes. 9

17–201. 10

(a) In this s ubtitle, unless the context indicates otherwise, the following words 11
have the meanings indicated. 12

(b) “Apprentice” means an individual who: 13

(1) is at least 16 years old; 14

(2) has signed with an employer or employer’s agent, an association of 15
employers, an organization of employees, or a joint committee from both, an agreement 16
including a statement of: 17

(i) the trade, craft, or occupation that the individual is learning; and 18

(ii) the beginning and ending dates of the apprenticeship; and 19

(3) is registered in a program of the Council or the Office of Apprenticeship 20
of the United States Department of Labor. 21

(c) “APPRENTICESHIP COHORT” HAS THE MEANING STATED IN § 14–801 OF 22
THIS ARTICLE. 23

(D) “Commissioner” means: 24

(1) the Commissioner of Labor and Industry; 25

(2) the Deputy Commissioner of Labor and Industry; or 26

(3) an authorized representative of the Commissioner. 27

HOUSE BILL 1165 5

(E) “COMPLETION RATE” HAS THE MEANING STAT ED IN § 14–801 OF THIS 1
ARTICLE. 2

[(d)] (F) “Construction” includes all: 3

(1) building; 4

(2) reconstructing; 5

(3) improving; 6

(4) enlarging; 7

(5) painting and decorating; 8

(6) altering; 9

(7) maintaining; 10

(8) repairing; and 11

(9) services provided under a mechanical systems service contract. 12

[(e)] (G) “Council” means the Apprenticeship and Training Council. 13

[(f)] (H) (1) “Employee” means an apprentice or worker employed by a 14
contractor or subcontractor under a public work contract. 15

(2) “Employee” does not include an individual employed by a public body. 16

(I) “GROUP JOINT APPRENTIC ESHIP PROGRAM ” HAS THE MEANING 17
STATED IN § 14–801 OF THIS ARTICLE. 18

(J) “GROUP NONJOINT APPREN TICESHIP PROGRAM ” HAS THE MEANING 19
STATED IN § 14–801 OF THIS ARTICLE. 20

(K) “INDIVIDUAL JOINT APPR ENTICESHIP PROGRAM ” HAS THE MEANING 21
STATED IN § 14–801 OF THIS ARTICLE. 22

(L) “INDIVIDUAL NONJOINT A PPRENTICESHIP PROGRA M” HAS THE 23
MEANING STATED IN § 14–801 OF THIS ARTICLE. 24

[(g)] (M) (1) “Locality” means the county in which the work is to be performed. 25

(2) If the public work is located within 2 or more counties, the locality 26
includes all counties in which the public work is located. 27
6 HOUSE BILL 1165

[(h)] (N) “Mechanical systems service contract” means a contract for: 1

(1) HVAC systems, including heating, ventilation, ductwork, and 2
cooling/air–conditioning equipment; 3

(2) refrigeration systems; 4

(3) plumbing systems, including pipes, tanks, fittings, and other elements 5
that control the water and gas supply, heating, and sanitation of a building; 6

(4) electrical systems, includi ng electrical components that supply, 7
distribute, generate, and use electrical power, overhead and underground lines, poles, 8
transformers, and other related equipment; and 9

(5) elevator systems, including escalators, moving walkways, and other 10
conveyances. 11

[(i)] (O) “Prevailing wage rate” means the hourly rate of wages paid in the 12
locality as determined by the Commissioner under § 17–208 of this subtitle. 13

[(j)] (P) (1) “Public body” means: 14

(i) the State; 15

(ii) except as provided in paragraph (2)(i) of this subsection, a unit of 16
the State government or instrumentality of the State; 17

(iii) any political subdivision, agency, person, or entity with respect 18
to the construction of any public work for which 25% or more of the money used for 19
construction is State money; 20

(iv) notwithstanding paragraph (2)(ii) of this subsection, a political 21
subdivision if its governing body: 22

1. provides by ordinance or resolution that the political 23
subdivision is covered by this subtitle; and 24

2. gives written notice of that ordinance or resolution to the 25
Commissioner; and 26

(v) the Washington Suburban Sanitary Commission. 27

(2) “Public body” does not include: 28

HOUSE BILL 1165 7

(i) except as provided in paragraph (1)(v) of this subsection, a unit 1
of the State government or instrumentality of the State funded wholly from a source other 2
than the State; or 3

(ii) any political subdivision, agency, person, or entity with respect 4
to the construction of any public work for which less than 25% of the money used for 5
construction is State money. 6

[(k)] (Q) (1) Subject to paragraph (2) of this subsection, “public work” means 7
a structure or work, including a bridge, building, ditch, road, alley, waterwork, or sewage 8
disposal plant, that: 9

(i) is constructed for public use or benefit; or 10

(ii) is paid for wholly or partly by public money. 11

(2) “Public work” does not include: 12

(i) unless let to contract, a structure or work whose construction is 13
performed by a public service company under order of the Public Service Commission or 14
other public authority regardless of: 15

1. public supervision or direction; or 16

2. payment wholly or partly from public money; or 17

(ii) a capital project that receives State funds in the annual State 18
capital budget as: 19

1. a local House of Delegates initiative; or 20

2. a local Senate initiative. 21

[(l)] (R) “Public work contract” means a contract for construction of a public 22
work. 23

(S) “WAIVER APPRENTICESHIP PROGRAM” HAS THE MEANING STATED IN § 24
14–801 OF THIS ARTICLE. 25

[(m)] (T) “Worker” means a laborer or mechanic. 26

17–205. 27

(a) A contractor or subcontractor under a public work contract subject to this 28
subtitle: 29

8 HOUSE BILL 1165

(1) shall employ only competent workers and apprentices who qualify 1
under subsection (b) of this section; 2

(2) may not employ any individual classified as a helper or trainee; and 3

(3) may refuse to employ a worker who is a resident of another state if the 4
Commissioner finds that the other state enforces a law that prohibits a resident of this 5
State from employment as a worker under a public work contract in that state, unless: 6

(i) the refusal is in conflict or otherwise inconsistent with a federal 7
law applicable to the public work; 8

(ii) the federal government is to pay wholly or partly for the publi c 9
work; and 10

(iii) the inconsistency with federal law jeopardizes the availability of 11
federal funds for the public work. 12

(b) An apprentice under a public work contract shall be part of and used in 13
accordance with an apprenticeship program THAT: 14

(1) IS registered with the Council and approved by the Office of 15
Apprenticeship of the United States Department of Labor; AND 16

(2) IF THE PROGRAM HAS G RADUATED AT LEAST ON E 17
APPRENTICESHIP COHORT, HAS A COMPLETION RAT E OF AT LEAST 25%, AS 18
DETERMINED BY THE MARYLAND DEPARTMENT OF LABOR. 19

17–601. 20

(a) In this subtitle the following words have the meanings indicated. 21

(b) “Apprenticeship training program” means an apprenticeship training 22
program that: 23

(1) is registered with, and approved by, the Apprenticeship and Training 24
Council or the U.S. Department of Labor; AND 25

(2) HAS A COMPLETION RATE OF AT LEAST 25%, AS DETERMINED BY 26
THE DEPARTMENT. 27

(e) “Department” means the Maryland Department of Labor. 28

(f) “Fund” means the State Apprenticeship T raining Fund established under § 29
17–602 of this subtitle. 30

HOUSE BILL 1165 9

(g) “Participates in an apprenticeship training program” means that a contractor 1
or subcontractor makes regular financial contributions for each covered craft to 2
apprenticeship training programs for covered crafts during the term of the covered project 3
that are at least equal to the hourly fringe benefit contribution rates required for 4
apprenticeship training by the applicable prevailing wage determination for the project, as 5
specified by the Secretary. 6

(h) “Secretary” means the Secretary of Labor. 7

17–601. 8

(a) In this subtitle the following words have the meanings indicated. 9

(b) “APPRENTICESHIP COHORT” HAS THE MEANING STATED IN § 14–801 OF 10
THIS ARTICLE. 11

(C) “Apprenticeship training program” means an apprenticeship training 12
program that: 13

(1) is registered with, and approved by, the Apprenticeship and Training 14
Council or the U.S. Department of Labor; AND 15

(2) IF THE PROGRAM HAS G RADUATED AT LEAST ON E 16
APPRENTICESHIP COHOR T, HAS A COMPLETIO N RATE OF AT LEAST 25%, AS 17
VERIFIED BY THE DEPARTMENT. 18

(D) “COMPLETION RATE” HAS THE MEANING STAT ED IN § 14–801 OF THIS 19
ARTICLE. 20

[(c)] (E) “Covered craft” means a classification of workers listed in the prevailing 21
wage determination applicable to the covered project. 22

[(d)] (F) “Covered project” means a project for the construction of a public work, 23
as defined under § 17–201 of this title, that is valued at $500,000 or more. 24

[(e)] (G) “Department” means the Maryland Department of Labor. 25

[(f)] (H) “Fund” means the State Apprenticeship Training Fund established 26
under § 17–602 of this subtitle. 27

(I) “GROUP JOINT APPRENTIC ESHIP PROGRAM ” HAS THE MEANING 28
STATED IN § 14–801 OF THIS ARTICLE. 29

(J) “GROUP NONJOINT APPREN TICESHIP PROGRAM ” HAS THE MEANING 30
STATED IN § 14–801 OF THIS ARTICLE. 31
10 HOUSE BILL 1165

(K) “INDIVIDUAL JOINT APPR ENTICESHIP PROGRAM ” HAS THE MEANING 1
STATED IN § 14–801 OF THIS ARTICLE. 2

(L) “INDIVIDUAL NONJOINT A PPRENTICESHIP PROGRA M” HAS THE 3
MEANING STATED IN § 14–801 OF THIS ARTICLE. 4

[(g)] (M) “Participates in an apprenticeship training program” means that a 5
contractor or subcontractor makes regular financial contributions for each covered craft to 6
apprenticeship training programs for covered crafts during the term of the covered project 7
that ar e at least equal to the hourly fringe benefit contribution rates required for 8
apprenticeship training by the applicable prevailing wage determination for the project, as 9
specified by the Secretary. 10

[(h)] (N) “Secretary” means the Secretary of Labor. 11

(O) “WAIVER APPRENTICESHIP PROGRAM” HAS THE MEANING STATED IN § 12
14–801 OF THIS ARTICLE. 13

17–602. 14

(a) There is a State Apprenticeship Training Fund in the Department. 15

(b) The Fund consists of: 16

(1) payments made by contractors or subcontractors in accor dance with 17
this subtitle and Subtitle 6A of this title; 18

(2) penalties collected as a result of violations of this subtitle and Subtitle 19
6A of this title; and 20

(3) penalties collected as a result of violations of Title 14, Subtitle 8 of this 21
article. 22

(c) The Fund is a special, nonlapsing fund that is not subject to § 7 –302 of this 23
article. 24

(d) The State Treasurer shall hold the Fund separately, and the Comptroller shall 25
account for the Fund. 26

(e) The Secretary shall use money in the fund to: 27

(1) promote preapprenticeship programs and other workforce development 28
programs in the State’s public secondary schools and community colleges that assist 29
students in preparing for and entering apprenticeship training programs; and 30

HOUSE BILL 1165 11

(2) pay any costs associated with carrying out the provisions of this subtitle 1
and Subtitle 6A of this title or Title 14, Subtitle 8 of this article. 2

17–603. 3

(a) A contractor that is awarded a procurement contract for a covered project shall 4
provide to a unit, as a condition of receiving the contract, written verification that: 5

(1) the contractor participates in an apprenticeship training program for 6
each covered craft in which it will employ persons for the covered project; 7

(2) the contractor will make payments to the Fund; or 8

(3) the contractor will make payments in amounts determined under § 9
17–605 of this subtitle to a registered apprenticeship program or to an organization that 10
has registered apprenticeship programs for the purpose of supporting these programs. 11

17–604. 12

(a) A subcontractor that performs work at a value exceeding the small 13
procurement amount specified in § 13–109 of this article for a covered project shall provide 14
to a unit written verification that: 15

(1) the subcontractor participates in an apprenticeship training program 16
for each covered craft in which it will employ persons for the covered project; 17

(2) the subcontractor will make payments to the Fund; or 18

(3) the subcontractor will make payments in amounts determined under § 19
17–605 of this subtitle to a registered apprenticeship program or to an organization that 20
has registered apprenticeship programs for the purpose of supporting these programs. 21

17–6A–01. 22

(a) In this subtitle the following words have the meanings indicated. 23

(d) “Department” means the Maryland Department of Labor. 24

(e) “Fund” means the State Apprenticeship Training Fund established under § 25
17–602 of this title. 26

(f) “Registered apprenticeship program” means an apprenticeship program that: 27

(1) is registered with, and approved by, the Department or the United 28
States Department of Labor; AND 29

12 HOUSE BILL 1165

(2) HAS A COMPLETION RATE OF AT LEAST 25%, AS DETERMINED BY 1
THE DEPARTMENT. 2

17–6A–01. 3

(a) In this subtitle the following words have the meanings indicated. 4

(B) “APPRENTICESHIP COHORT” HAS THE MEANING STATED IN § 14–801 OF 5
THIS ARTICLE. 6

(C) “COMPLETION RATE” HAS THE MEANING STAT ED IN § 14–801 OF THIS 7
ARTICLE. 8

[(b)] (D) “Construction” includes: 9

(1) building; 10

(2) reconstructing; 11

(3) improving; 12

(4) enlarging; 13

(5) painting and decorating; 14

(6) altering; 15

(7) maintaining; and 16

(8) repairing. 17

[(c)] (E) (1) “Covered contract” means a contract: 18

(i) for a capital construction project funded with at least $1,000,000 19
of funds in the State capital budget; 20

(ii) entered into by the recipient of the funding in the State capital 21
budget and a contractor, or the contractor and a subcontractor; and 22

(iii) for an amount of $500,000 or more. 23

(2) “Covered contract” does not include a contrac t for a covered project as 24
defined in § 17–601(d) of this title. 25

[(d)] (F) “Department” means the Maryland Department of Labor. 26

HOUSE BILL 1165 13

[(e)] (G) “Fund” means the State Apprenticeship Training Fund established 1
under § 17–602 of this title. 2

(H) “GROUP JOINT A PPRENTICESHIP PROGRA M” HAS THE MEANING 3
STATED IN § 14–801 OF THIS ARTICLE. 4

(I) “GROUP NONJOINT APPREN TICESHIP PROGRAM ” HAS THE MEANING 5
STATED IN § 14–801 OF THIS ARTICLE. 6

(J) “INDIVIDUAL JOINT APPR ENTICESHIP PROGRAM ” HAS THE MEANING 7
STATED IN § 14–801 OF THIS ARTICLE. 8

(K) “INDIVIDUAL NONJOINT A PPRENTICESHIP PROGRA M” HAS THE 9
MEANING STATED IN § 14–801 OF THIS ARTICLE. 10

[(f)] (L) “Registered apprenticeship program” means an apprenticeship 11
program that: 12

(1) is registered with, and approved by, the Department or the United 13
States Department of Labor; AND 14

(2) IF THE PROGRAM HAS G RADUATED AT LEAST ON E 15
APPRENTICESHIP COHOR T, HAS A COMPLETION RAT E OF AT LEAST 25%, AS 16
VERIFIED BY THE DEPARTMENT. 17

[(g)] (M) “Secretary” means the Secretary of Labor. 18

(N) “WAIVER APPRENTICESHIP PROGRAM” HAS THE MEANING STATED IN § 19
14–801 OF THIS ARTICLE. 20

17–6A–02. 21

(a) Except as provided in subsection (b) of this section, each contractor or 22
subcontractor awarded a covered contract shall: 23

(1) (i) be affiliated with a registered apprenticeship program; and 24

(ii) use apprentices from a registered apprenticeship program for 25
each craft or trade in which the contractor or subcontractor employs persons to complete 26
the covered contract; 27

(2) make payments to the Fund; or 28

(3) make payments in amounts determined under § 17 –6A–03 of this 29
subtitle to a registered apprenticeship program for the purpose of supporting the program. 30
14 HOUSE BILL 1165

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

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.