EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1017*
HOUSE BILL 1017
P2 5lr2659
CF SB 688
By: Delegate Wells
Introduced and read first time: February 3, 2025
Assigned to: Economic Matters
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 requirements 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, with amendments, 16
Article – State Finance and Procurement 17
Section 11–203(e) 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2024 Supplement) 20
(As enacted by Chapter 732 of the Acts of the General Assembly of 2021 and 21
Chapters 575 and 576 of the Acts of the General Assembly of 2023) 22
BY repealing and reenacting, with amendments, 23
Article – State Finance and Procurement 24
Section 17–601, 17–603, 17–604, and 17–606 25
Annotated Code of Maryland 26
(2021 Replacement Volume and 2024 Supplement) 27
BY adding to 28 2 HOUSE BILL 1017
Article – State Finance and Procurement 1
Section 17–601.1, 17–602.1, 17–604.1, 17–605.1, and 17–607 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, without amendments, 5
Article – State Finance and Procurement 6
Section 17–602 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2024 Supplement) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – State Finance and Procurement 12
11–203. 13
(e) (1) In this subsection, “University” means the University System of 14
Maryland, Morgan State University, or St. Mary’s College of Maryland. 15
(2) Except as otherwise provided in this subsection, this Division II does 16
not apply to the University System of Maryland, Morgan State University, St. Mary’s 17
College of Maryland, or Baltimore City Community College. 18
(3) (i) A procurement by a University or Baltimore City Community 19
College shall comply with the policies and procedures developed by the University or 20
Baltimore City Community College and approved by the Board of Public Works and the 21
Administrative, Executive, and Legislative Review Committee of the General Assembly in 22
accordance with: 23
1. § 12–112 of the Education Article for the University 24
System of Maryland; 25
2. § 14–109 of the Education Article for Morgan State 26
University; 27
3. § 14–405(f) of the Education Article for St. Mary’s College 28
of Maryland; or 29
4. § 16–505.3 of the Education Article for Baltimore City 30
Community College. 31
(ii) 1. The review and approval of the Board of Public Works 32
shall be required for the following types of contracts with a value that exceeds $1,000,000 33
for a University or $500,000 for Baltimore City Community College: 34
HOUSE BILL 1017 3
A. capital improvements; and 1
B. services. 2
2. In its review of a contract for services or capital 3
improvements with a value that exceeds $1,000,000, the Board of Public Works may request 4
the comments of the appropriate agencies, including the Department of Budget and 5
Management and the Department of General Services. 6
3. For Baltimore City Community College contracts that are 7
not subject to the review and approval of the Board of Public Works under subsubparagraph 8
1 of this subparagraph: 9
A. contracts with a value of $100,000 or less shall be reviewed 10
and approved by the President of Baltimore City Community College or the President’s 11
designee; and 12
B. contracts with a value that exceeds $100,000 but does not 13
exceed $500,000 shall be approved by the Board of Trustees of Baltimore City Community 14
College. 15
(4) The policies of a University or Baltimore City Community College shall: 16
(i) to the maximum extent practicable, require the purchasing of 17
supplies and services in accordance with Title 14, Subtitle 1 of this article; 18
(ii) promote the purposes of the regulations adopted by the 19
Department of General Services governing the procurement of architectural and 20
engineering services; 21
(iii) promote the purposes of § 13–402 of the State Personnel and 22
Pensions Article; 23
(iv) to the maximum extent practicable, be similar to § 13–218.1 of 24
this article; and 25
(v) to the maximum extent practicable, require the procurement of 26
food in accordance with Title 14, Subtitle 7 of this article. 27
(5) (i) Except as provided in paragraph (7) of this subsection, the 28
following provisions of Division II of this article apply to a University and to Baltimore City 29
Community College: 30
1. § 11–205 of this subtitle (“Collusion”); 31
2. § 11–205.1 of this subtitle (“Falsification, concealment, 32
etc., of material facts”); 33 4 HOUSE BILL 1017
3. § 13–219 of this article (“Required clauses – 1
Nondiscrimination clause”); 2
4. § 13–225 of this article (“Retainage”); 3
5. Title 14, Subtitle 3 of this article (“Minority Business 4
Participation”); 5
6. Title 14, Subtitle 7 of this article (“Certified Local Farm 6
and Fish Program”); 7
7. Title 15, Subtitle 1 of this article (“Procurement Contract 8
Administration”); 9
8. § 15–226 of this article (“Policy established; timing of 10
payments; notice upon nonpayment; disputes; appeals”); [and] 11
9. Title 16 of this article (“Suspension and Debarment of 12
Contractors”); AND 13
10. TITLE 17, SUBTITLE 6 OF THIS ARTICLE 14
(“APPRENTICESHIP REQUIREMENTS FOR PUBLIC WORKS CONTRACTS”). 15
(ii) If a procurement violates the provisions of this subsection or 16
policies adopted in accordance with this subsection, the procurement contract is void or 17
voidable in accordance with the provisions of § 11–204 of this subtitle. 18
(6) (i) The State Board of Contract Appeals shall have authority over 19
contract claims related to procurement contracts awarded by: 20
1. the University System of Maryland before July 1, 1999; 21
2. Morgan State University before July 1, 2004; and 22
3. Baltimore City Community College before July 1, 2021. 23
(ii) At the election of the Board of Regents of the University System 24
of Maryland and subject to the approval of the Board of Public Works, the State Board of 25
Contract Appeals shall have authority over contract claims related to procurement 26
contracts awarded by the University after June 30, 1999. 27
(iii) At the election of the Board of Regents of Morgan State 28
University and subject to the approval of the Board of Public Works, the State Board of 29
Contract Appeals shall have authority over contract claims related to procurement 30
contracts awarded by the University after June 30, 2004. 31
HOUSE BILL 1017 5
(iv) At the election of the Board of Trustees of St. Mary’s College of 1
Maryland and subject to the approval of the Board of Public Works, the State Board of 2
Contract Appeals shall have authority over contract claims related to procurement 3
contracts awarded by St. Mary’s College of Maryland after June 30, 2006. 4
(v) At the election of the Board of Trustees of Baltimore City 5
Community College and subject to the approval of the Board of Public Works, the State 6
Board of Contract Appeals shall have authority over contract claims related to procurement 7
contracts awarded by Baltimore City Community College after June 30, 2021. 8
(7) Except with regard to the provisions of § 15–113 of this article, 9
paragraphs (3), (4), and (5) of this subsection do not apply to: 10
(i) procurement by a University or Baltimore City Community 11
College from: 12
1. another unit; 13
2. a political subdivision of the State; 14
3. an agency of a political subdivision of the State; 15
4. a government, including the government of another state, 16
of the United States, or of another country; 17
5. an agency or political subdivision of a government; or 18
6. a bistate, multistate, bicounty, or multicounty 19
governmental agency; 20
(ii) procurement by a University in support of enterprise activities 21
for the purpose of: 22
1. direct resale; 23
2. remanufacture and subsequent resale; or 24
3. procurement by the University for overseas programs; or 25
(iii) procurement by the University System of Maryland for: 26
1. services of managers to invest, in accordance with the 27
management and investment policies adopted by the Board of Regents of the University 28
System of Maryland, gift and endowment assets received by the University System of 29
Maryland in accordance with § 12–104(e) of the Education Article; or 30
6 HOUSE BILL 1017
2. expenditures to manage, maintain, and enhance, in 1
accordance with the management and investment policies adopted by the Board of Regents 2
of the University System of Maryland, the value of gift and endowment assets received by 3
the University System of Maryland in accordance with § 12–104(e) of the Education Article. 4
17–601. 5
(a) In this subtitle the following words have the meanings indicated. 6
(B) “APPLICABLE PERCENTAGE ” MEANS THE PERCENTAGE OF TOTAL 7
LABOR HOURS OF WORK ON A COVERED PROJECT , INCLUDING CONSTRUCTI ON, 8
ALTERATION, AND REPAIR WORK , PERFORMED BY AN APPR ENTICE OR A 9
JOURNEYWORKER ESTABL ISHED UNDER § 17–602.1 OF THIS SUBTITLE. 10
[(b)] (C) “Apprenticeship training program” means an apprenticeship training 11
program that: 12
(1) is registered with, and approved by, the Apprenticeship and Training 13
Council or the U.S. Department of Labor; AND 14
(2) COMPLIES WITH THE RE QUIREMENTS OF 29 C.F.R. PART 29 AND 15
PART 30. 16
[(c)] (D) “Covered craft” means a classification of workers listed in the prevailing 17
wage determination applicable to the covered project. 18
[(d)] (E) “Covered project” means a project for the construction of a public work[, 19
as defined under § 17–201 of this title, that is valued at $500,000 or more] THAT IS 20
SUBJECT TO SUBTITLE 2 OF THIS TITLE. 21
[(e)] (F) “Department” means the Maryland Department of Labor. 22
[(f)] (G) “Fund” means the State Apprenticeship Training Fund established 23
under § 17–602 of this subtitle. 24
(H) “LABOR HOURS ” MEANS THE TOTAL NUMB ER OF HOURS DEVOTED TO 25
THE PERFORMANCE OF C ONSTRUCTION , ALTERATION, OR REPAIR WORK BY AN Y 26
INDIVIDUAL AND EXCLU DES HOURS WORKED BY : 27
(1) FOREMEN; 28
(2) SUPERINTENDENTS ; 29
(3) OWNERS; OR 30
HOUSE BILL 1017 7
(4) ANY PERSON EMPLOYED IN A BONA FIDE EXECU TIVE, 1
ADMINISTRATIVE , OR PROFESSIONAL CAPA CITY, AS DEFINED IN 29 C.F.R. PART 2
541. 3
[(g)] (I) “Participates in an apprenticeship training program” means that a 4
contractor or subcontractor makes regular financial contributions for each covered craft to 5
apprenticeship training programs for covered crafts during the term of the covered project 6
that are at least equal to the hourly fringe benefit contribution rates required for 7
apprenticeship training by the applicable prevailing wage determination for the project, as 8
specified by the Secretary. 9
(J) “QUALIFIED APPRENTICE OR JOURNEYWOR KER” MEANS AN 10
INDIVIDUAL WHO IS PA RTICIPATING IN AN AP PRENTICESHIP TRAININ G PROGRAM. 11
[(h)] (K) “Secretary” means the Secretary of Labor. 12
17–601.1. 13
(A) THIS SUBTITLE APPLIES ONLY TO CONTRACTORS AND 14
SUBCONTRACTORS WHO E MPLOY FOUR OR MORE I NDIVIDUALS TO PERFORM WORK 15
ON A COVERED PROJECT . 16
(B) NOTHING IN THIS SUBTI TLE MAY PREEMPT A LO CAL LAW OR POLICY 17
PROVIDING FOR ADDITI ONAL SKILLED AND TRA INED WORKFORCE REQUI REMENTS 18
ON PUBLIC WORK S PROJECTS. 19
17–602. 20
(a) There is a State Apprenticeship Training Fund in the Department. 21
(b) The Fund consists of: 22
(1) payments made by contractors or subcontractors in accordance with 23
this subtitle and Subtitle 6A of this title; and 24
(2) penalties collected as a result of violations of this subtitle and Subtitle 25
6A of this title. 26
(c) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this 27
article. 28
(d) The State Treasurer shall hold the Fund separately, and the Comptroller shall 29
account for the Fund. 30
(e) The Secretary shall use money in the Fund to: 31
8 HOUSE BILL 1017
(1) promote preapprenticeship programs and other workforce development 1
programs in the State’s public secondary schools and community colleges that assist 2
students in preparing for and entering apprenticeship training programs; and 3
(2) pay any costs associated with carrying out the provisions of this subtitle 4
and Subtitle 6A of this title. 5
17–602.1. 6
(A) FOR CONSTRUCTION ON A COVERED PROJECT FOR WHICH A PUBLIC 7
BODY ADVERTISES FOR BIDS OR PROPOSALS FO R A PUBLIC WORKS CON TRACT ON 8
OR AFTER JANUARY 1, 2026, THE APPLICABLE PERCE NTAGE IS 20%. 9
(B) ON OR BEFORE DECEMBER 31, 2026, AND EACH YEAR THEREA FTER, 10
THE SECRETARY SHALL SET T HE APPLICABLE PERCEN TAGE THAT WILL APPLY FOR 11
THE FOLLOWING CALEND AR YEAR. 12
(C) THE SECRETARY MAY ALTER T HE APPLICABLE PERCEN TAGE FOR A 13
COVERED PROJECT TO M EET ANY RATIO REQUIR EMENTS NECESSARY FOR 14
APPRENTICE OR JOURNE YWORKER SUPERVISION IN THE COVERED CRAFT . 15
17–603. 16
(a) A contractor that is awarded a procurement contract for a covered project shall 17
provide to a unit, as a condition of receiving the contract, written verification that: 18
(1) the contractor [participates in an apprenticeship training program for 19
each covered craft in which it will employ persons for the covered project] IS EMPLOYING 20
THE NUMBER OF QUALIF IED APPRENTICES OR J OURNEYWORKERS FOR A COVERED 21
PROJECT NECESSARY TO MEET THE APPLICABLE PERCENTAGE FOR THE C OVERED 22
PROJECT; OR 23
(2) the contractor will make payments to the Fund[; or 24
(3) the contractor will make payments in amounts determined under § 25
17–605 of this subtitle to a registered apprenticeship program or to an organization that 26
has registered apprenticeship programs for the purpose of supporting these programs]. 27
(b) The written verification required under subsection (a) of this section shall be 28
provided by a contractor to the unit responsible for the project before the contractor 29
commences performance under the procurement contract. 30
[(c) Organizations that have registered apprenticeship programs and receive 31
funds from contractors under subsection (a)(3) of this section shall certify to the Secretary 32 HOUSE BILL 1017 9
that all funds received are used solely for the purpose of improving or expanding 1
apprenticeship training in the State. 2
(d) The Secretary shall adopt regulations to establish a process for auditing 3
organizations that provide registered apprenticeship programs to ensure that all funds 4
received under subsection (a)(3) of this section are used solely to improve and expand 5
apprenticeship programs in the State.] 6
17–604. 7
(a) A subcontractor that performs work valued at $100,000 or more for a covered 8
project shall provide to a unit written verification that: 9
(1) the subcontractor [participates in an apprenticeship training program 10
for each covered craft in which it will employ persons] IS EMPLOYING THE NUM BER OF 11
QUALIFIED APPRENTICE S OR JOURNEYWORKERS FOR A COVERED PROJEC T 12
NECESSARY TO MEET TH E APPLICABLE PERCENT AGE for the covered project; OR 13
(2) the subcontractor will make payments to the Fund[; or 14
(3) the subcontractor will make payments in amounts determined under § 15
17–605 of this subtitle to a registered apprenticeship program or to an organization that 16
has registered apprenticeship programs for the purpose of supporting these programs]. 17
(b) The written verification required under subsection (a) of this section shall be 18
provided by a subcontractor to the unit responsible for the project before the subcontractor 19
commences performance under the procurement contract. 20
[(c) Organizations that have registered apprenticeship programs and receive 21
funds from contractors under subsection (a)(3) of this section shall certify to the Secretary 22
that all funds received are used solely for the purpose of improving or expanding 23
apprenticeship training in the State. 24
(d) The Secretary shall adopt regulations to establish a process for auditing 25
organizations that provide registered apprenticeship programs to ensure that all funds 26
received under subsection (a)(3) of this section are used solely to improve and expand 27
apprenticeship programs in the State.] 28
17–604.1. 29
(A) IN THIS SECTION , “ALL APPLICABLE APPRE NTICESHIP TRAINING 30
PROGRAMS” MEANS EACH APPRENTIC ESHIP TRAINING PROGR AM THAT HAS A 31
GEOGRAPHIC AREA OF O PERATION THAT INCLUD ES THE LOCATION OF T HE 32
COVERED PROJECT AND HAS A US UAL AND CUSTOMARY BU SINESS PRACTICE OF 33 10 HOUSE BILL 1017
ENTERING INTO AGREEM ENTS WITH EMPLOYERS FOR THE PLACEMENT OF 1
APPRENTICES IN THE C OVERED CRAFT . 2
(B) THE SECRETARY MAY WAIVE T HE REQUIREMENTS UNDE R § 17–603 OR 3
§ 17–604 OF THIS SUBTITLE IF A CONTRACTOR OR SUBCONTRACTO R SUBMITS A 4
WRITTEN WAIVER APPLI CATION, INCLUDING ANY SUPPOR TING DOCUMENTATION 5
REQUIRED BY THE SECRETARY, DEMONSTRATING THAT T HE CONTRACTOR OR 6
SUBCONTRACTOR : 7
(1) SUBJECT TO SUBSECTIO N (C) OF THIS SECTION, HAS REQUESTED 8
QUALIFIED APPR ENTICES FROM ALL APP LICABLE APPRENTICESH IP TRAINING 9
PROGRAMS; AND 10
(2) FOR EACH REQUEST : 11
(I) THE REQUEST HAS BEEN DENIED FOR A REASON THAT IS 12
NOT THE RESULT OF A REFUSAL BY THE CONTR ACTOR OR SUBCONTRACT OR TO 13
COMPLY WITH THE ESTA BLISHED STANDARDS AN D REQUIREMENTS OF THE 14
APPRENTICESHIP TRAIN ING PROGRAM ; OR 15
(II) THE APPRENTICESHIP T RAINING PROGRAM HAS FAILED TO 16
RESPOND TO THE REQUE ST WITHIN 10 BUSINESS DAYS AFTER THE DATE ON WHICH 17
THE APPRENTICESHIP T RAINING PROGRAM RECE IVED THE REQUEST . 18
(C) TO REQUEST QUALIFIED APPRE NTICES FROM AN APPRE NTICESHIP 19
TRAINING PROGRAM , A CONTRACTOR OR SUBC ONTRACTOR SHALL SUBM IT: 20
(1) A REQUEST BY TELEPHO NE AND IN WRITING SE NT 21
ELECTRONICALLY AND B Y REGISTERED MAIL ; AND 22
(2) A REQUEST TO AN APPR ENTICESHIP TRAINING PROGRAM WITH 23
WHICH THE CONTRACTOR OR SUBCONTRACTOR DOE S NOT HAVE AN EXISTI NG 24
PARTICIPATION AGREEM ENT, AT LEAST 90 CALENDAR DAYS BEFORE THE DATE THE 25
CONTRACTOR OR SUBCON TRACTOR EXPECTS TO U SE APPRENTICE LABOR . 26
17–605.1. 27
(A) WHILE CONSTRUCTION AC TIVITY ON A COVERED PROJECT IS O NGOING, 28
EACH CONTRACTOR AND SUBCONTRACTOR PERFOR MING WORK ON THE COV ERED 29
PROJECT SHALL SUBMIT A MONTHLY REPORT TO THE DEPARTMENT THAT 30
INCLUDES: 31
(1) FOR EACH APPRENTICE OR JOURNEYWORKER : 32 HOUSE BILL 1017 11
(I) THE NAME OF THE APPR ENTICE OR JOURNEYWORKER ; 1
(II) THE NAME OF THE ASSO CIATED APPRENTICESHI P TRAINING 2
PROGRAM; AND 3
(III) THE APPRENTICE REGIS TRATION OR IDENTIFIC ATION 4
NUMBER; 5
(2) THE TOTAL NUMBER OF APPRENTICES AND LABO R HOURS 6
WORKED, CATEGORIZED BY TRADE OR CRAFT; AND 7
(3) THE TOTAL NUMBER OF JOUR NEYWORKERS AND LABOR HOURS 8
WORKED, CATEGORIZED BY TRADE OR CRAFT. 9
(B) WITHIN 60 DAYS AFTER COMPLETIN G WORK ON A COVERED PROJECT, 10
EACH CONTRACTOR AND SUBCONTRACTOR SHALL SUBMIT TO THE DEPARTMENT : 11
(1) A STATEMENT OF THE T OTAL NUMBER O F LABOR HOURS OF WOR K 12
ON A COVERED PROJECT , INCLUDING CONSTRUCTI ON, ALTERATION, AND REPAIR 13
WORK, PERFORMED BY AN APPR ENTICE OR JOURNEYWOR KER; AND 14
(2) IF APPLICABLE , A WRITTEN DECLARATIO N AND SUPPORTING 15
DOCUMENTS JUSTIFYING ANY WAIVER RECEIVED UNDER § 17–604.1 OF THIS 16
SUBTITLE. 17
(C) THE DEPARTMENT SHALL MAIN TAIN ON ITS WEBSITE : 18
(1) DATA AGGREGATED FROM THE REPORTS RECEIVED UNDER 19
SUBSECTIONS (A) AND (B) OF THIS SECTION SHOW ING THE USE OF QUALI FIED 20
APPRENTICES AND JOUR NEYWORKERS ON COVERE D PROJECTS; AND 21
(2) DESCRIPTIONS OF THE CIRCUMSTANCES OF ANY WAIVER 22
GRANTED UNDER § 17–604.1 OF THIS SUBTITLE. 23
17–606. 24
(a) A contractor or subcontractor that fails to meet the requirements of this 25
subtitle shall be liable for an amount equal to: 26
(1) twice the amount of unpaid apprenticeship training contributions 27
required by §§ 17–603 AND 17–604 OF this subtitle; AND 28
12 HOUSE BILL 1017
(2) $100 MULTIPLIED BY THE TO TAL LABOR HOURS FOR WHICH THE 1
REQUIREMENT UNDER § 17–603 OF THIS SUBTITLE WAS APPLICABLE. 2
(b) (1) In this subsection, “willfully” means representations or omissions 3
known to be false or made with deliberate ignorance or reckless disregard for their truth or 4
falsity. 5
(2) Any person, firm, or corporation that is found to have made willfully a 6
false or fraudulent representation or omission regarding a material fact in connection with 7
prevailing wage records required by this section shall be liable for a civil penalty in an 8
amount of up to $1,000 for each employee and each falsified record. 9
(3) Penalties shall be recoverable [in civil actions and paid to the State] 10
UNDER THE MARYLAND FALSE CLAIMS ACT. 11
(c) (1) The Secretary shall adopt regulations to establish administrative 12
procedures for the collection of payments under this subtitle. 13
(2) (i) The Secretary may file suit to enforce this section in any court of 14
competent jurisdiction. 15
(ii) In an action filed under this subsection, the court shall require 16
the contractor or subcontractor to pay the amount required by subsection (a) of this section, 17
including interest, reasonable counsel fees, and court costs. 18
17–607. 19
THE SECRETARY SHALL ADOPT REGULATIONS NECESSAR Y TO CARRY OUT THE 20
REQUIREMENTS OF THIS SUBTITLE. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 22
October 1, 2025. 23