1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *hb0984* |
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6 | 6 | | |
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7 | 7 | | HOUSE BILL 984 |
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8 | 8 | | P2 4lr3233 |
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9 | 9 | | CF 4lr0945 |
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10 | 10 | | By: Delegates Guzzone, Hutchinson, J. Long, Martinez, and Woods |
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11 | 11 | | Introduced and read first time: February 5, 2024 |
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12 | 12 | | Assigned to: Health and Government Operations and Economic Matters |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | State Procurement – Apprenticeship Preference Program 2 |
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19 | 19 | | |
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20 | 20 | | FOR the purpose of establishing an apprenticeship preference program in State 3 |
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21 | 21 | | procurement; establishing a certain price preference for bids and proposals that will 4 |
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22 | 22 | | utilize registered apprentices in the performance of certain contracts; requiring 5 |
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23 | 23 | | contractors and certain subcontractors to provide certain information to a unit 6 |
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24 | 24 | | regarding the use of registered apprentices as a condition of receiving a certain 7 |
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25 | 25 | | contract; providing for the liability of a contractor or subcontractor for a certain 8 |
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26 | 26 | | amount under certain circumstances; and generally relating to the use of apprentices 9 |
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27 | 27 | | in State procurement. 10 |
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28 | 28 | | |
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29 | 29 | | BY adding to 11 |
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30 | 30 | | Article – State Finance and Procurement 12 |
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31 | 31 | | Section 14–801 through 14–806 to be under the new subtitle “Subtitle 8. 13 |
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32 | 32 | | Apprenticeship Preference Program” 14 |
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33 | 33 | | Annotated Code of Maryland 15 |
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34 | 34 | | (2021 Replacement Volume and 2023 Supplement) 16 |
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35 | 35 | | |
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36 | 36 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17 |
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37 | 37 | | That the Laws of Maryland read as follows: 18 |
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38 | 38 | | |
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39 | 39 | | Article – State Finance and Procurement 19 |
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40 | 40 | | |
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41 | 41 | | SUBTITLE 8. APPRENTICESHIP PREFERENCE PROGRAM. 20 |
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42 | 42 | | |
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43 | 43 | | 14–801. 21 |
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44 | 44 | | |
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45 | 45 | | (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 22 |
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46 | 46 | | INDICATED. 23 |
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47 | 47 | | 2 HOUSE BILL 984 |
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48 | 48 | | |
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49 | 49 | | |
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50 | 50 | | (B) “APPRENTICE BIDDER ” MEANS A RESPONSIBLE BIDDER WHO WILL 1 |
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51 | 51 | | UTILIZE APPRENTICES FROM A REGISTERED AP PRENTICESHIP PROGRAM IN WHICH 2 |
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52 | 52 | | THE CONTRACTOR OR SU BCONTRACTOR EMPLOYS PERSONS TO COMPLETE THE 3 |
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53 | 53 | | COVERED CONTRACT . 4 |
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54 | 54 | | |
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55 | 55 | | (C) “APPRENTICE OFFEROR ” MEANS A RESPO NSIBLE OFFEROR WHO W ILL 5 |
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56 | 56 | | UTILIZE APPRENTICES FROM A REGISTERED AP PRENTICESHIP PROGRAM IN WHICH 6 |
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57 | 57 | | THE CONTRACTOR OR SU BCONTRACTOR EMPLOYS PERSONS TO COMPLETE THE 7 |
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58 | 58 | | COVERED CONTRACT . 8 |
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59 | 59 | | |
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60 | 60 | | (D) “COVERED PROCUREMENT ” MEANS A PROCUREMENT THAT IS VALUED 9 |
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61 | 61 | | AT $500,000 OR MORE. 10 |
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62 | 62 | | |
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63 | 63 | | (E) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF LABOR. 11 |
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64 | 64 | | |
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65 | 65 | | (F) “NONAPPRENTICE BIDDER ” MEANS A RESPONSIBLE BIDDER WHO WILL 12 |
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66 | 66 | | NOT UTILIZE APPRENTI CES FROM A REGISTERE D APPRENTICESHIP PRO GRAM IN 13 |
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67 | 67 | | WHICH THE CONTRACTOR OR SUBCONTRACTOR EMP LOYS PERSONS TO COM PLETE 14 |
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68 | 68 | | THE COVERED CONTRACT . 15 |
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69 | 69 | | |
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70 | 70 | | (G) “NONAPPRENTICE OFFEROR ” MEANS A RESPONSIBLE OFFEROR WHO 16 |
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71 | 71 | | WILL NOT UTILIZE APP RENTICES FROM A REGI STERED APPRENTICESHI P PROGRAM 17 |
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72 | 72 | | IN WHICH THE CONTRAC TOR OR SUBCONTRACTOR EMPLOYS PERSONS TO 18 |
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73 | 73 | | COMPLETE THE COVERED CONTRACT. 19 |
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74 | 74 | | |
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75 | 75 | | (H) “PERCENTAGE PREFERENCE ” MEANS: 20 |
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76 | 76 | | |
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77 | 77 | | (1) THE PERCENT OF THE L OWEST RESPONSIVE BID SUBMITTED BY 21 |
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78 | 78 | | AN APPRENTICE BIDDER BY WHICH A RESPONSIV E BID SUBMITTED BY A 22 |
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79 | 79 | | NONAPPRENTICE BIDDER MAY: 23 |
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80 | 80 | | |
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81 | 81 | | (I) EXCEED THE LOWEST BI D; AND 24 |
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82 | 82 | | |
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83 | 83 | | (II) BE AWARDED A COVERED PROCUREME NT CONTRACT IN 25 |
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84 | 84 | | ACCORDANCE WITH THIS SUBTITLE; OR 26 |
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85 | 85 | | |
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86 | 86 | | (2) THE PERCENT OF THE L OWEST RESPONSIVE COS T PROPOSAL 27 |
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87 | 87 | | SUBMITTED BY AN APPR ENTICE OFFEROR BY WH ICH A RESPONSIVE PRO POSAL 28 |
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88 | 88 | | SUBMITTED BY A NONAP PRENTICE OFFEROR MAY : 29 |
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89 | 89 | | |
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90 | 90 | | (I) EXCEED THE LOWEST CO ST; AND 30 |
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91 | 91 | | |
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92 | 92 | | (II) BE AWARDED A COVERED PROCUREMENT CONTRACT IN 31 HOUSE BILL 984 3 |
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93 | 93 | | |
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94 | 94 | | |
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95 | 95 | | ACCORDANCE WITH THIS SUBTITLE. 1 |
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96 | 96 | | |
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97 | 97 | | (I) “REGISTERED APPRENTICE SHIP PROGRAM ” MEANS AN 2 |
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98 | 98 | | APPRENTICESHIP PROGR AM THAT IS REGISTERE D WITH, AND APPROVED BY , THE 3 |
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99 | 99 | | DEPARTMENT OR THE U.S. DEPARTMENT OF LABOR. 4 |
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100 | 100 | | |
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101 | 101 | | (J) “SECRETARY” MEANS THE SECRETARY OF LABOR. 5 |
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102 | 102 | | |
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103 | 103 | | 14–802. 6 |
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104 | 104 | | |
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105 | 105 | | THIS SUBTITLE APPLIES TO A COVERED PROCURE MENT OF A UNIT. 7 |
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106 | 106 | | |
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107 | 107 | | 14–803. 8 |
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108 | 108 | | |
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109 | 109 | | SUBJECT TO THE APPROV AL OF THE BOARD, EACH UNIT SHALL ESTA BLISH A 9 |
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110 | 110 | | PERCENTAGE PREFERENC E, NOT TO EXCEED 5%. 10 |
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111 | 111 | | |
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112 | 112 | | 14–804. 11 |
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113 | 113 | | |
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114 | 114 | | (A) A UNIT SHALL AWARD A COVERED PROC UREMENT CONTRACT TO AN 12 |
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115 | 115 | | APPRENTICE BIDDER TH AT SUBMITS THE LOWES T RESPONSIVE BID IF THE 13 |
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116 | 116 | | DIFFERENCE BETWEEN T HAT BID AND THE LOWE ST RESPONSIVE BID SU BMITTED BY 14 |
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117 | 117 | | A NONAPPRENTICE BIDD ER DOES NOT EXCEED T HE PERCENTAGE PREFER ENCE 15 |
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118 | 118 | | ESTABLISHED U NDER § 14–803 OF THIS SUBTITLE. 16 |
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119 | 119 | | |
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120 | 120 | | (B) A UNIT SHALL AWARD A C OVERED PROCUREMENT C ONTRACT TO AN 17 |
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121 | 121 | | APPRENTICE OFFEROR T HAT SUBMITS THE RESP ONSIVE PROPOSAL THAT IS MOST 18 |
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122 | 122 | | ADVANTAGEOUS TO THE STATE AFTER FACTORING IN THE PRICE PREFERE NCE, IF 19 |
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123 | 123 | | THE DIFFERENCE BETWE EN THAT PROPOSAL AND TH E LOWEST RESPONSIVE 20 |
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124 | 124 | | PROPOSAL SUBMITTED B Y A NONAPPRENTICE OF FEROR DOES NOT EXCEE D THE 21 |
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125 | 125 | | PERCENTAGE PREFERENC E ESTABLISHED UNDER § 14–803 OF THIS SUBTITLE. 22 |
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126 | 126 | | |
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127 | 127 | | 14–805. 23 |
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128 | 128 | | |
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129 | 129 | | (A) (1) A CONTRACTOR THAT IS A WARDED A CONTRACT FO R A COVERED 24 |
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130 | 130 | | PROCUREMEN T SHALL PROVIDE TO A UNIT, AS A CONDITION OF RE CEIVING THE 25 |
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131 | 131 | | CONTRACT, WRITTEN VERIFICATION OF: 26 |
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132 | 132 | | |
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133 | 133 | | (I) THE WORK TO BE PERFO RMED BY REGISTERED 27 |
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134 | 134 | | APPRENTICES ; AND 28 |
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135 | 135 | | |
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136 | 136 | | (II) THE WORK TO BE PERFO RMED BY REGISTERED 29 |
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137 | 137 | | APPRENTICES UNDER TH E DIRECTION OF A SUB CONTRACTOR . 30 |
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138 | 138 | | 4 HOUSE BILL 984 |
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139 | 139 | | |
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140 | 140 | | |
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141 | 141 | | (2) THE WRITTEN VERIFICAT ION REQUIRED UNDER P ARAGRAPH (1) 1 |
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142 | 142 | | OF THIS SUBSECTION S HALL BE PROVIDED BY A CONTRACTOR TO THE UNIT 2 |
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143 | 143 | | RESPONSIBLE FOR THE PROJECT WITH THE SUB MISSION OF A BID OR PROPOSAL. 3 |
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144 | 144 | | |
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145 | 145 | | (B) (1) A SUBCONTRACTOR THAT P ERFORMS WORK VALUED AT $100,000 4 |
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146 | 146 | | OR MORE FOR A COVERE D PROCUREMENT SHALL PROVIDE TO A UNIT , AS A 5 |
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147 | 147 | | CONDITION OF RECEIVI NG THE CONTRACT , WRITTEN VERIFICATION OF THE WORK 6 |
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148 | 148 | | TO BE PERFORMED BY R EGISTERED APPRENTICE S. 7 |
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149 | 149 | | |
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150 | 150 | | (2) THE WRITTEN VERIFICAT ION REQUIRED UNDER P ARAGRAPH (1) 8 |
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151 | 151 | | OF THIS SUBS ECTION SHALL BE PROV IDED BY A CONTRACTOR TO THE UNIT 9 |
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152 | 152 | | RESPONSIBLE FOR THE PROJECT WITH THE SUB MISSION OF A BID OR PROPOSAL. 10 |
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153 | 153 | | |
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154 | 154 | | (C) THE SECRETARY SHALL ADOPT REGULATIONS TO ESTAB LISH A 11 |
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155 | 155 | | PROCESS FOR AUDITING THE USE OF REGISTERE D APPRENTICES BY A C ONTRACTOR 12 |
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156 | 156 | | OR SUBCONTRACTOR FOR A COVERED PROCUREMENT AWARDED IN ACCORDANC E 13 |
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157 | 157 | | WITH THIS SUBTITLE . 14 |
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158 | 158 | | |
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159 | 159 | | 14–806. 15 |
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160 | 160 | | |
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161 | 161 | | (A) A CONTRACTOR OR SUBCON TRACTOR THAT IS AWAR DED A COVERED 16 |
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162 | 162 | | PROCUREMENT IN ACCOR DANCE WITH THIS SUBT ITLE WHO FAILS TO US E 17 |
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163 | 163 | | REGISTERED APPRENTIC ES AS PROVIDED IN TH E BID OR PROPOSAL SHAL L BE 18 |
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164 | 164 | | LIABLE FOR AN AMOUNT EQUAL TO TWICE THE A MOUNT OF THE PRICE P REFERENCE 19 |
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165 | 165 | | APPLIED UNDER § 14–803 OF THIS SUBTITLE . 20 |
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166 | 166 | | |
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167 | 167 | | (B) PENALTIES SHALL BE RE COVERABLE IN CIVIL A CTIONS AND PAID TO 21 |
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168 | 168 | | THE STATE. 22 |
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169 | 169 | | |
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170 | 170 | | (C) (1) THE SECRETARY SHALL ADOPT REGULATIONS TO ESTAB LISH 23 |
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171 | 171 | | ADMINISTRATIVE PROCE DURES FOR THE COLLEC TION OF PAYMENTS UND ER THIS 24 |
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172 | 172 | | SUBTITLE. 25 |
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173 | 173 | | |
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174 | 174 | | (2) (I) THE SECRETARY MAY FILE SU IT TO ENFORCE THIS S ECTION 26 |
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175 | 175 | | IN ANY COURT OF COMP ETENT JURISDICTION . 27 |
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176 | 176 | | |
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177 | 177 | | (II) IN AN ACTION FILED UN DER THIS SUBSECTION , THE COURT 28 |
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178 | 178 | | SHALL REQUIRE THE CO NTRACTOR OR SUBCONTR ACTOR TO PAY THE AMO UNT 29 |
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179 | 179 | | REQUIRED BY SUBSECTI ON (A) OF THIS SECTION , INCLUDING INTEREST , 30 |
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180 | 180 | | REASONABLE ATTORNEY ’S FEES, AND COURT COSTS . 31 |
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181 | 181 | | |
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182 | 182 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 32 |
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183 | 183 | | October 1, 2024. 33 |
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184 | 184 | | |
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