State Procurement - Contractors and Vendors - Restrictions on Use of State Funds and Resources

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1173*

HOUSE BILL 1173
P2 6lr3273

By: Delegates Kerr, Crutchfield, Fair, Ruth, Schindler, and Wu
Introduced and read first time: February 11, 2026
Assigned to: Government, Labor, and Elections

A BILL ENTITLED

AN ACT concerning 1

State Procurement – Contractors and Vendors – Restrictions on Use of State 2
Funds and Resources 3

FOR the purpose of prohibiting certain contractors and vendors from knowingly using 4
public funds to influence the decisions of certain employees to support or oppose a 5
certain employee organization or become a member of an employee organization; 6
prohibiting certain contractors and vendors from knowingly using public funds or 7
resources to contract with or provide assistance to a person for the purpose of 8
carrying out a certain campaign or engaging in anti –union activities; and generally 9
relating to restrictions on the use of State funds and resources by contractors and 10
vendors. 11

BY repealing and reenacting, with amendments, 12
Article – State Finance and Procurement 13
Section 2–108 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2025 Supplement) 16

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18

Article – State Finance and Procurement 19

2–108. 20

(a) A unit of State government may not knowingly use public funds to influence 21
the decisions of State employees to: 22

(1) support or oppose an employee organization that represents or seeks to 23
represent the employees of the unit of State government; or 24

2 HOUSE BILL 1173

(2) become a member of an employee organization. 1

(B) A CONTRACTOR OR VENDOR CONTRACTED BY A UNIT OF STATE 2
GOVERNMENT MAY NOT KNOWINGLY USE PUBLIC FUNDS TO INFLUENCE THE 3
DECISIONS OF EMPLOYEES OF THE CONTRACTOR, EMPLOYEES OF THE VENDOR, OR 4
EMPLOYEES OF ANY SUB CONTRACTOR PERFORMING WORK UNDE R A STATE 5
CONTRACT TO: 6

(1) SUPPORT OR OPPOSE AN EMPLOYEE ORGANIZATIO N THAT 7
REPRESENTS OR SEEKS TO REPRESENT THE EMP LOYEES OF THE CO NTRACTOR, 8
VENDOR, OR SUBCONTRACTOR; OR 9

(2) BECOME A MEMBER OF AN EMPLOYEE ORGANIZATION. 10

(C) A CONTRACTOR OR VENDOR CONTRACTED BY A UNIT OF STATE 11
GOVERNMENT MAY NOT K NOWINGLY USE PUBLIC FUNDS OR RESOURCES T O 12
CONTRACT WITH OR PROVIDE ASSISTANCE TO ANY PERSON FOR THE PURPOSE OF: 13

(1) CARRYING OUT A CAMPAIGN AGAINST EFFORTS BY EMPLOYEES OF 14
THE CONTRACTOR OR VENDOR TO: 15

(I) GAIN OR RETAIN COLLECTIVE BARGAINING RIGHTS; OR 16

(II) CERTIFY AN EMPLOYEE ORGANIZATION AS AN E XCLUSIVE 17
REPRESENTATIVE; OR 18

(2) ENGAGING IN ANTI–UNION ACTIVITIES. 19

[(b)] (D) This section does not apply to an activity performed or to an expense 20
incurred in connection with: 21

(1) addressing a grievance or negotiating or administering a collective 22
bargaining agreement; 23

(2) allowing an employee organization or a representative of an employee 24
organization access to and use of State facilities or properties; 25

(3) performing an activity required by federal or State law or a collective 26
bargaining agreement; 27

(4) negotiating, e ntering into, or carrying out a voluntary recognition 28
agreement with an employee organization; or 29

(5) paying wages to a represented employee while the employee is 30
performing duties if the payment is permitted under a collective bargaining agreement. 31
HOUSE BILL 1173 3

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