EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0984*
HOUSE BILL 984
P2 4lr3233
CF 4lr0945
By: Delegates Guzzone, Hutchinson, J. Long, Martinez, and Woods
Introduced and read first time: February 5, 2024
Assigned to: Health and Government Operations and Economic Matters
A BILL ENTITLED
AN ACT concerning 1
State Procurement – Apprenticeship Preference Program 2
FOR the purpose of establishing an apprenticeship preference program in State 3
procurement; establishing a certain price preference for bids and proposals that will 4
utilize registered apprentices in the performance of certain contracts; requiring 5
contractors and certain subcontractors to provide certain information to a unit 6
regarding the use of registered apprentices as a condition of receiving a certain 7
contract; providing for the liability of a contractor or subcontractor for a certain 8
amount under certain circumstances; and generally relating to the use of apprentices 9
in State procurement. 10
BY adding to 11
Article – State Finance and Procurement 12
Section 14–801 through 14–806 to be under the new subtitle “Subtitle 8. 13
Apprenticeship Preference Program” 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2023 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
SUBTITLE 8. APPRENTICESHIP PREFERENCE PROGRAM. 20
14–801. 21
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 22
INDICATED. 23
2 HOUSE BILL 984
(B) “APPRENTICE BIDDER ” MEANS A RESPONSIBLE BIDDER WHO WILL 1
UTILIZE APPRENTICES FROM A REGISTERED AP PRENTICESHIP PROGRAM IN WHICH 2
THE CONTRACTOR OR SU BCONTRACTOR EMPLOYS PERSONS TO COMPLETE THE 3
COVERED CONTRACT . 4
(C) “APPRENTICE OFFEROR ” MEANS A RESPO NSIBLE OFFEROR WHO W ILL 5
UTILIZE APPRENTICES FROM A REGISTERED AP PRENTICESHIP PROGRAM IN WHICH 6
THE CONTRACTOR OR SU BCONTRACTOR EMPLOYS PERSONS TO COMPLETE THE 7
COVERED CONTRACT . 8
(D) “COVERED PROCUREMENT ” MEANS A PROCUREMENT THAT IS VALUED 9
AT $500,000 OR MORE. 10
(E) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF LABOR. 11
(F) “NONAPPRENTICE BIDDER ” MEANS A RESPONSIBLE BIDDER WHO WILL 12
NOT UTILIZE APPRENTI CES FROM A REGISTERE D APPRENTICESHIP PRO GRAM IN 13
WHICH THE CONTRACTOR OR SUBCONTRACTOR EMP LOYS PERSONS TO COM PLETE 14
THE COVERED CONTRACT . 15
(G) “NONAPPRENTICE OFFEROR ” MEANS A RESPONSIBLE OFFEROR WHO 16
WILL NOT UTILIZE APP RENTICES FROM A REGI STERED APPRENTICESHI P PROGRAM 17
IN WHICH THE CONTRAC TOR OR SUBCONTRACTOR EMPLOYS PERSONS TO 18
COMPLETE THE COVERED CONTRACT. 19
(H) “PERCENTAGE PREFERENCE ” MEANS: 20
(1) THE PERCENT OF THE L OWEST RESPONSIVE BID SUBMITTED BY 21
AN APPRENTICE BIDDER BY WHICH A RESPONSIV E BID SUBMITTED BY A 22
NONAPPRENTICE BIDDER MAY: 23
(I) EXCEED THE LOWEST BI D; AND 24
(II) BE AWARDED A COVERED PROCUREME NT CONTRACT IN 25
ACCORDANCE WITH THIS SUBTITLE; OR 26
(2) THE PERCENT OF THE L OWEST RESPONSIVE COS T PROPOSAL 27
SUBMITTED BY AN APPR ENTICE OFFEROR BY WH ICH A RESPONSIVE PRO POSAL 28
SUBMITTED BY A NONAP PRENTICE OFFEROR MAY : 29
(I) EXCEED THE LOWEST CO ST; AND 30
(II) BE AWARDED A COVERED PROCUREMENT CONTRACT IN 31 HOUSE BILL 984 3
ACCORDANCE WITH THIS SUBTITLE. 1
(I) “REGISTERED APPRENTICE SHIP PROGRAM ” MEANS AN 2
APPRENTICESHIP PROGR AM THAT IS REGISTERE D WITH, AND APPROVED BY , THE 3
DEPARTMENT OR THE U.S. DEPARTMENT OF LABOR. 4
(J) “SECRETARY” MEANS THE SECRETARY OF LABOR. 5
14–802. 6
THIS SUBTITLE APPLIES TO A COVERED PROCURE MENT OF A UNIT. 7
14–803. 8
SUBJECT TO THE APPROV AL OF THE BOARD, EACH UNIT SHALL ESTA BLISH A 9
PERCENTAGE PREFERENC E, NOT TO EXCEED 5%. 10
14–804. 11
(A) A UNIT SHALL AWARD A COVERED PROC UREMENT CONTRACT TO AN 12
APPRENTICE BIDDER TH AT SUBMITS THE LOWES T RESPONSIVE BID IF THE 13
DIFFERENCE BETWEEN T HAT BID AND THE LOWE ST RESPONSIVE BID SU BMITTED BY 14
A NONAPPRENTICE BIDD ER DOES NOT EXCEED T HE PERCENTAGE PREFER ENCE 15
ESTABLISHED U NDER § 14–803 OF THIS SUBTITLE. 16
(B) A UNIT SHALL AWARD A C OVERED PROCUREMENT C ONTRACT TO AN 17
APPRENTICE OFFEROR T HAT SUBMITS THE RESP ONSIVE PROPOSAL THAT IS MOST 18
ADVANTAGEOUS TO THE STATE AFTER FACTORING IN THE PRICE PREFERE NCE, IF 19
THE DIFFERENCE BETWE EN THAT PROPOSAL AND TH E LOWEST RESPONSIVE 20
PROPOSAL SUBMITTED B Y A NONAPPRENTICE OF FEROR DOES NOT EXCEE D THE 21
PERCENTAGE PREFERENC E ESTABLISHED UNDER § 14–803 OF THIS SUBTITLE. 22
14–805. 23
(A) (1) A CONTRACTOR THAT IS A WARDED A CONTRACT FO R A COVERED 24
PROCUREMEN T SHALL PROVIDE TO A UNIT, AS A CONDITION OF RE CEIVING THE 25
CONTRACT, WRITTEN VERIFICATION OF: 26
(I) THE WORK TO BE PERFO RMED BY REGISTERED 27
APPRENTICES ; AND 28
(II) THE WORK TO BE PERFO RMED BY REGISTERED 29
APPRENTICES UNDER TH E DIRECTION OF A SUB CONTRACTOR . 30
4 HOUSE BILL 984
(2) THE WRITTEN VERIFICAT ION REQUIRED UNDER P ARAGRAPH (1) 1
OF THIS SUBSECTION S HALL BE PROVIDED BY A CONTRACTOR TO THE UNIT 2
RESPONSIBLE FOR THE PROJECT WITH THE SUB MISSION OF A BID OR PROPOSAL. 3
(B) (1) A SUBCONTRACTOR THAT P ERFORMS WORK VALUED AT $100,000 4
OR MORE FOR A COVERE D PROCUREMENT SHALL PROVIDE TO A UNIT , AS A 5
CONDITION OF RECEIVI NG THE CONTRACT , WRITTEN VERIFICATION OF THE WORK 6
TO BE PERFORMED BY R EGISTERED APPRENTICE S. 7
(2) THE WRITTEN VERIFICAT ION REQUIRED UNDER P ARAGRAPH (1) 8
OF THIS SUBS ECTION SHALL BE PROV IDED BY A CONTRACTOR TO THE UNIT 9
RESPONSIBLE FOR THE PROJECT WITH THE SUB MISSION OF A BID OR PROPOSAL. 10
(C) THE SECRETARY SHALL ADOPT REGULATIONS TO ESTAB LISH A 11
PROCESS FOR AUDITING THE USE OF REGISTERE D APPRENTICES BY A C ONTRACTOR 12
OR SUBCONTRACTOR FOR A COVERED PROCUREMENT AWARDED IN ACCORDANC E 13
WITH THIS SUBTITLE . 14
14–806. 15
(A) A CONTRACTOR OR SUBCON TRACTOR THAT IS AWAR DED A COVERED 16
PROCUREMENT IN ACCOR DANCE WITH THIS SUBT ITLE WHO FAILS TO US E 17
REGISTERED APPRENTIC ES AS PROVIDED IN TH E BID OR PROPOSAL SHAL L BE 18
LIABLE FOR AN AMOUNT EQUAL TO TWICE THE A MOUNT OF THE PRICE P REFERENCE 19
APPLIED UNDER § 14–803 OF THIS SUBTITLE . 20
(B) PENALTIES SHALL BE RE COVERABLE IN CIVIL A CTIONS AND PAID TO 21
THE STATE. 22
(C) (1) THE SECRETARY SHALL ADOPT REGULATIONS TO ESTAB LISH 23
ADMINISTRATIVE PROCE DURES FOR THE COLLEC TION OF PAYMENTS UND ER THIS 24
SUBTITLE. 25
(2) (I) THE SECRETARY MAY FILE SU IT TO ENFORCE THIS S ECTION 26
IN ANY COURT OF COMP ETENT JURISDICTION . 27
(II) IN AN ACTION FILED UN DER THIS SUBSECTION , THE COURT 28
SHALL REQUIRE THE CO NTRACTOR OR SUBCONTR ACTOR TO PAY THE AMO UNT 29
REQUIRED BY SUBSECTI ON (A) OF THIS SECTION , INCLUDING INTEREST , 30
REASONABLE ATTORNEY ’S FEES, AND COURT COSTS . 31
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 32
October 1, 2024. 33