Public Works Contracts - Apprenticeship Requirements (Maryland Workforce Apprenticeship Utilization Act)

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0143*

SENATE BILL 143
P2 6lr1185
SB 688/25 – FIN & B&T (PRE–FILED)
By: Senator Benson
Requested: October 14, 2025
Introduced and read first time: January 14, 2026
Assigned to: Finance and Budget and Taxation

A BILL ENTITLED

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 certain contractors and subcontractors to employ a certain 5
number of qualified apprentices or journeyworkers necessary to meet a certain 6
applicable percentage for the project; altering which projects are subject to certain 7
apprenticeship requirements; repealing certain provisions of law that authorized 8
contractors and subcontractors to make certain payments to a certain apprenticeship 9
program in lieu of employing certain apprentices; requiring the Secretary of Labor 10
to annually establish a certain applicable percentage; authorizing the Secretary to 11
waive certain requirements under certain circumstances; establishing that certain 12
apprenticeship requir ements apply to the University System of Maryland and 13
Baltimore City Community College; and generally relating to apprenticeship 14
requirements for public works contracts. 15

BY repealing and reenacting, without amendments, 16
Article – State Finance and Procurement 17
Section 11–203(e)(1) and (7) 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2025 Supplement) 20

BY repealing and reenacting, with amendments, 21
Article – State Finance and Procurement 22
Section 11–203(e)(5)(i), 17–601, 17–602, 17–603, 17–604, and 17–606 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2025 Supplement) 25

BY adding to 26
Article – State Finance and Procurement 27
2 SENATE BILL 143

Section 17–601.1, 17–602.1, 17–604.1, 17–605.1, and 17–607 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2025 Supplement) 3

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5

Article – State Finance and Procurement 6

11–203. 7

(e) (1) In this subsection, “University” means the Uni versity System of 8
Maryland, Morgan State University, or St. Mary’s College of Maryland. 9

(5) (i) Except as provided in paragraph (7) of this subsection, the 10
following provisions of Division II of this article apply to a University and to Baltimore City 11
Community College: 12

1. § 11–205 of this subtitle (“Collusion”); 13

2. § 11 –205.1 of this subtitle (“Falsification, concealment, 14
etc., of material facts”); 15

3. § 13 –219 of this article (“Required clauses – 16
Nondiscrimination clause”); 17

4. § 13–225 of this article (“Retainage”); 18

5. Title 14, Subtitle 3 of this article (“Minority Business 19
Participation”); 20

6. Title 14, Subtitle 7 of this article (“Certified Local Farm 21
and Fish Program”); 22

7. Title 15, Subtitle 1 of this article (“Proc urement Contract 23
Administration”); 24

8. § 15 –226 of this article (“Policy established; timing of 25
payments; notice upon nonpayment; disputes; appeals”); [and] 26

9. Title 16 of this article (“Suspension and Debarment of 27
Contractors”); AND 28

10. TITLE 17, SUBTITLE 6 OF THIS ARTICLE 29
(“APPRENTICESHIP REQUIREMENTS FOR PUBLIC WORKS CONTRACTS”). 30

SENATE BILL 143 3

(7) Except with regard to the provisions of § 15 –113 of this article, 1
paragraphs (3), (4), and (5) of this subsection do not apply to: 2

(i) procurement by a University or Baltimore City Community 3
College from: 4

1. another unit; 5

2. a political subdivision of the State; 6

3. an agency of a political subdivision of the State; 7

4. a government, including the government of another state, 8
of the United States, or of another country; 9

5. an agency or political subdivision of a government; or 10

6. a bistate, multistate, bicounty, or multicounty 11
governmental agency; 12

(ii) procurement by a University in support of enterprise activities 13
for the purpose of: 14

1. direct resale; 15

2. remanufacture and subsequent resale; or 16

3. procurement by the University for overseas programs; or 17

(iii) procurement by the University System of Maryland for: 18

1. services of managers to invest, in accordance with the 19
management and investment policies adopted by the Board of Regents of the University 20
System of Maryland, gift and endowment assets received by the University System of 21
Maryland in accordance with § 12–104(e) of the Education Article; or 22

2. expenditures to manage, maintain, and enhance, in 23
accordance with the management and investment policies adopted by the Board of Regents 24
of the University System of Maryland, the value of gift and endowment assets received by 25
the University System of Maryland in accordance with § 12–104(e) of the Education Article. 26

17–601. 27

(a) In this subtitle the following words have the meanings indicated. 28

(B) “APPLICABLE PERCENTAGE ” MEANS THE PERCENTAGE OF TOTAL 29
LABOR HOURS OF WORK ON A COVERED PROJECT , INCLUDING CONSTRUCTI ON, 30
4 SENATE BILL 143

ALTERATION, AND REPAIR WORK , PERFORMED BY AN APPR ENTICE OR A 1
JOURNEYWORKER, ESTABLISHED UNDER § 17–602.1 OF THIS SUBTITLE. 2

[(b)] (C) “Apprenticeship training program” means an apprenticeship training 3
program that: 4

(1) is registered with, and approved by, the Apprenticeship and Training 5
Council or the U.S. Department of Labor; AND 6

(2) COMPLIES WITH THE REQUIREMENTS OF 29 C.F.R. PART 29 AND 7
PART 30. 8

[(c)] (D) “Covered craft” means a classification of workers listed in the prevailing 9
wage determination applicable to the covered project. 10

[(d)] (E) “Covered project” means a project for the construction of a public work[, 11
as defined u nder § 17 –201 of this title, that is valued at $500,000 or more ] THAT IS 12
SUBJECT TO SUBTITLE 2 OF THIS TITLE. 13

[(e)] (F) “Department” means the Maryland Department of Labor. 14

[(f)] (G) “Fund” means the State Apprenticeship Training Fund established 15
under § 17–602 of this subtitle. 16

(H) “LABOR HOURS” MEANS THE TOTAL NUMB ER OF HOURS DEVOTED TO 17
THE PERFORMANCE OF C ONSTRUCTION, ALTERATION, OR REPAIR WORK BY AN Y 18
INDIVIDUAL AND EXCLUDES HOURS WORKED BY: 19

(1) FOREMEN; 20

(2) SUPERINTENDENTS; 21

(3) OWNERS; OR 22

(4) ANY PERSON EMPLOYED IN A BONA FIDE EXECU TIVE, 23
ADMINISTRATIVE, OR PROFESSIONAL CAPA CITY, AS DEFINED IN 29 C.F.R. PART 24
541. 25

[(g)] (I) “Participates in an apprenticeship training program” means that a 26
contractor or subcontractor makes regular financial contributions for each covered craft to 27
apprenticeship training programs for covered crafts during the term of the covered project 28
that are at least equal to the hourly fringe benefit contribution rates required for 29
apprenticeship training by the applicable prevailing wage determination for the project, as 30
specified by the Secretary. 31
SENATE BILL 143 5

(J) “QUALIFIED APPRENTICE OR JOURNEYWORKER ” MEANS AN 1
INDIVIDUAL WHO IS PARTICIPATING IN AN APPRENTICESHIP TRAINING PROGRAM. 2

[(h)] (K) “Secretary” means the Secretary of Labor. 3

17–601.1. 4

(A) THIS SUBTITLE APPLIES ONLY TO CONTRACTORS AND 5
SUBCONTRACTORS WHO EMPLOY FOUR OR MORE INDIVIDUALS TO PERFORM WORK 6
ON A COVERED PROJECT. 7

(B) NOTHING IN THIS SUBTI TLE MAY PREEMPT A LO CAL LAW OR POLICY 8
PROVIDING FOR ADDITIONAL SKILLED AND TRAINED WORKFORCE REQUIREMENTS 9
ON PUBLIC WORKS PROJECTS. 10

17–602. 11

(a) There is a State Apprenticeship Training Fund in the Department. 12

(b) The Fund consists of: 13

(1) payments made by contractors or subcontractors in accordance with 14
this subtitle and Subtitle 6A of this title; 15

(2) penalties collected as a result of violations of this subtitle and Subtitle 16
6A of this title; and 17

(3) penalties collected as a result of violations of Title 14, Subtitle 8 of this 18
article. 19

(c) The Fund is a special, nonlapsing fund that is not subject to § 7 –302 of this 20
article. 21

(d) The State Treasurer shall hold the Fund separately, and the Comptroller shall 22
account for the Fund. 23

(e) The Secretary shall use money in the [fund] FUND to: 24

(1) promote preapprenticeship programs and other workforce development 25
programs in the State’s public secondary schools and community colleges that assist 26
students in preparing for and entering apprenticeship training programs; and 27

(2) pay any costs associated with carrying out the provisions of this subtitle 28
and Subtitle 6A of this title or Title 14, Subtitle 8 of this article. 29

6 SENATE BILL 143

17–602.1. 1

(A) FOR CONSTRUCTION ON A COVERED PROJECT FOR WHICH A PUBLIC 2
BODY ADVERTISES FOR BIDS OR PROPOSALS FO R A PUBLIC WORKS CONTRACT ON 3
OR AFTER JANUARY 1, 2027, THE APPLICABLE PERCENTAGE IS 20%. 4

(B) ON OR BEFORE DECEMBER 31, 2027, AND EACH YEAR THEREA FTER, 5
THE SECRETARY SHALL SET THE APPLICABLE PERCENTAGE THAT WILL APPLY FOR 6
THE FOLLOWING CALENDAR YEAR. 7

(C) THE SECRETARY M AY ALTER THE APPLICA BLE PERCENTAGE FOR A 8
COVERED PROJECT TO M EET ANY RATIO REQUIR EMENTS NECESSARY FOR 9
APPRENTICE OR JOURNEYWORKER SUPERVISION IN THE COVERED CRAFT. 10

17–603. 11

(a) A contractor that is awarded a procurement contract for a covered project shall 12
provide to a unit, as a condition of receiving the contract, written verification that: 13

(1) the contractor [participates in an apprenticeship training program for 14
each covered craft in which it will employ persons for the covered project ] IS EMPLOYING 15
THE NUMBER OF QUALIFIED APPRENTICES OR JOURNEYWORKERS FOR A COVERED 16
PROJECT NECESSARY TO MEET THE APPLICABLE PERCENTAGE FOR THE COVERED 17
PROJECT; OR 18

(2) the contractor will make payments to the Fund[; or 19

(3) the contractor will make payments in amounts determined under § 20
17–605 of this subtitle to a registered apprenticeship program or to an organization that 21
has registered apprenticeship programs for the purpose of supporting these programs]. 22

(b) The written verification required under subsection (a) of this section shall be 23
provided by a contractor to the unit responsible for the project before the contractor 24
commences performance under the procurement contract. 25

[(c) Organizations that have register ed apprenticeship programs and receive 26
funds from contractors under subsection (a)(3) of this section shall certify to the Secretary 27
that all funds received are used solely for the purpose of improving or expanding 28
apprenticeship training in the State. 29

(d) The Secretary shall adopt regulations to establish a process for auditing 30
organizations that provide registered apprenticeship programs to ensure that all funds 31
received under subsection (a)(3) of this section are used solely to improve and expand 32
apprenticeship programs in the State.] 33

SENATE BILL 143 7

17–604. 1

(a) A subcontractor that performs work at a value exceeding the small 2
procurement amount specified in § 13–109 of this article for a covered project shall provide 3
to a unit written verification that: 4

(1) the subcontractor [participates in an apprenticeship training program 5
for each covered craft in which it will employ persons ] IS EMPLOYING THE NUMBER OF 6
QUALIFIED APPRENTICE S OR JOURNEYWORKERS FOR A COVERED PROJEC T 7
NECESSARY TO MEET THE APPLICABLE PERCENTAGE for the covered project; OR 8

(2) the subcontractor will make payments to the Fund[; or 9

(3) the subcontractor will make payments in amounts determined under § 10
17–605 of this subtitle to a registered apprenticeship program or to an organization that 11
has registered apprenticeship programs for the purpose of supporting these programs]. 12

(b) The written verification required under subsection (a) of this section shall be 13
provided by a subcontractor to the unit responsible for the project before the subcontractor 14
commences performance under the procurement contract. 15

[(c) Organizations that have registered apprenticeship programs and receive 16
funds from contractors under subsection (a)(3) of this section shall certify to the Secretary 17
that all funds received a re used solely for the purpose of improving or expanding 18
apprenticeship training in the State. 19

(d) The Secretary shall adopt regulations to establish a process for auditing 20
organizations that provide registered apprenticeship programs to ensure that all funds 21
received under subsection (a)(3) of this section are used solely to improve and expand 22
apprenticeship programs in the State.] 23

17–604.1. 24

(A) IN THIS SECTION , “ALL APPLICABLE APPRE NTICESHIP TRAINING 25
PROGRAMS” MEANS EACH APPRENTIC ESHIP TRAINING PROGR AM THAT HAS A 26
GEOGRAPHIC AREA OF O PERATION THAT INCLUD ES THE LOCATION OF T HE 27
COVERED PROJECT AND HAS A USUAL AND CUST OMARY BUSINESS PRACT ICE OF 28
ENTERING INTO AGREEM ENTS WITH EMPLOYERS FOR THE PLACEMENT OF 29
APPRENTICES IN THE COVERED CRAFT. 30

(B) THE SECRETARY MAY WAIVE THE REQ UIREMENTS UNDER § 17–603 OR 31
§ 17–604 OF THIS SUBTITLE IF A CONTRACTOR OR SUBC ONTRACTOR SUBMITS A 32
WRITTEN WAIVER APPLI CATION, INCLUDING ANY SUPPOR TING DOCUMENTATION 33
REQUIRED BY THE SECRETARY, DEMONSTRATING THAT T HE CONTRACTOR OR 34
SUBCONTRACTOR: 35
8 SENATE BILL 143

(1) SUBJECT TO SUBSECTION (C) OF THIS SECTION, HAS REQUESTED 1
QUALIFIED APPRENTICE S FROM ALL APPLICABL E APPRENTICESHIP TRA INING 2
PROGRAMS; AND 3

(2) FOR EACH REQUEST: 4

(I) THE REQUEST HAS BEEN DENIED FOR A REASON THAT IS 5
NOT THE RESULT OF A REFUSAL BY THE CONTR ACTOR OR SUBCONTRACT OR TO 6
COMPLY WITH THE ESTA BLISHED STANDARDS AN D REQUIREMENTS OF TH E 7
APPRENTICESHIP TRAINING PROGRAM; OR 8

(II) THE APPRENTICESHIP TRAINING PROGRAM HAS FAILED TO 9
RESPOND TO THE REQUEST WITHIN 10 BUSINESS DAYS AFTER THE DATE ON WHICH 10
THE APPRENTICESHIP TRAINING PROGRAM RECEIVED THE REQUEST. 11

(C) TO REQUEST QUALIFIED APPRENTICES FROM AN APPRENTICESHIP 12
TRAINING PROGRAM, A CONTRACTOR OR SUBCONTRACTOR SHALL SUBMIT: 13

(1) A REQUEST BY TELEPHO NE AND IN WRITING SE NT 14
ELECTRONICALLY AND BY REGISTERED MAIL; AND 15

(2) A REQUEST TO AN APPR ENTICESHIP TRAINING PROGRAM WITH 16
WHICH THE CONTRACTOR OR SUBCONTRACTOR DOE S NOT HAVE AN EXISTI NG 17
PARTICIPATION AGREEMENT, AT LEAST 90 CALENDAR DAYS BEFORE THE DATE THE 18
CONTRACTOR OR SUBCONTRACTOR EXPECTS TO USE APPRENTICE LABOR. 19

17–605.1. 20

(A) WHILE CONSTRUCTION ACTIVITY ON A COVERED PROJECT IS ONGOING, 21
EACH CONTRACTOR AND SUBCONTRACTOR PERFORMING WORK ON THE COV ERED 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
SENATE BILL 143 9

(2) THE TOTAL NUMBER OF APPRENTICES AND LABO R HOURS 1
WORKED, CATEGORIZED BY TRADE OR CRAFT; AND 2

(3) THE TOTAL NUMBER OF JOURNEYWORKERS AND L ABOR HOURS 3
WORKED, CATEGORIZED BY TRADE OR CRAFT. 4

(B) WITHIN 60 DAYS AFTER COMPLETING WORK ON A COVERED PROJECT, 5
EACH CONTRACTOR AND SUBCONTRACTOR SHALL SUBMIT TO THE DEPARTMENT: 6

(1) A STATEMENT OF THE TOTAL NUMBER OF LABOR HOURS OF WORK 7
ON A COVERED PROJECT , INCLUDING CONSTRUCTION, ALTERATION, AND REPAIR 8
WORK, PERFORMED BY AN APPRENTICE OR A JOURNEYWORKER; AND 9

(2) IF APPLICABLE , A WRITTEN DECLARATION AND SUPPORTING 10
DOCUMENTS JUSTIFYING ANY WAIVER RECEIVED UNDER § 17–604.1 OF THIS 11
SUBTITLE. 12

(C) THE DEPARTMENT SHALL MAINTAIN ON ITS WEBSITE: 13

(1) DATA AGGREGATED FROM THE REPORTS RECEIVED UNDER 14
SUBSECTIONS (A) AND (B) OF THIS SECTIO N SHOWING THE USE OF QUALIFIED 15
APPRENTICES AND JOURNEYWORKERS ON COVERED PROJECTS; AND 16

(2) DESCRIPTIONS OF THE CIRCUMSTANCES OF ANY WAIVER 17
GRANTED UNDER § 17–604.1 OF THIS SUBTITLE. 18

17–606. 19

(a) A contractor or subcontractor that fails to meet the req uirements 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. 25

(b) (1) In this subsection, “willfully” means representations or omissions 26
known to be false or made with deliberate ignorance or reckless disregard for their truth or 27
falsity. 28

(2) Any person, firm, or corporation that is found to have made willfully a 29
false or fraudulent representation or omission regarding a material fact in connection with 30
10 SENATE BILL 143

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. 4

(c) (1) The Secretary shall adopt regulations to establish administrative 5
procedures for the collection of payments under this subtitle. 6

(2) (i) The Secretary may file suit to enforce this section in any court of 7
competent jurisdiction. 8

(ii) In an action filed under this subsection, the court shall require 9
the contractor or subcontractor to pay the amount required by subsection (a) of this section, 10
including interest, reasonable counsel fees, and court costs. 11

17–607. 12

THE SECRETARY SHALL ADOPT REGULATIONS NECESSARY TO CARRY OUT THE 13
REQUIREMENTS OF THIS SUBTITLE. 14

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
October 1, 2026. 16