EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW. [Brackets] indicate matter deleted from existing law. *hb0501* HOUSE BILL 501 K3 5lr0368 CF SB 431 By: The Speaker (By Request – Administration) and Delegates Allen, Amprey, Boafo, Buckel, Cardin, Fennell, Hornberger, Kerr, Martinez, McComas, Phillips, Ruff, Taveras, Taylor, Toles, Turner, Vogel, Woods, Woorman, and Wu Introduced and read first time: January 22, 2025 Assigned to: Economic Matters A BILL ENTITLED AN ACT concerning 1 Registered Apprenticeship Investments for a Stronger Economy (RAISE) Act 2 FOR the purpose of authorizing the State Board of Plumbing to waive the license 3 examination requirement for a journey plumber license; authorizing the Secretary 4 of Labor to waive the examination for certain licenses; altering the duties of the 5 Maryland Apprenticeship and Training Council; repealing the Youth Apprenticeship 6 Advisory Committee; establishing the Maryland Office of Registered Apprenticeship 7 Development within the Maryland Apprenticeship and Training Program; 8 establishing the Registered Apprenticeship Qualified Intermediary Program within 9 the Maryland Apprenticeship and Training Program; establishing the Maryland 10 Apprenticeship Incentive Program within the Maryland Department of Labor; 11 establishing the Maryland Apprenticeship Incentive Program Fund as a special, 12 nonlapsing fund; requiring that the interest earnings of the Fund remain in the 13 Fund; applying certain provisions of this Act retroactively; and generally relating to 14 registered apprenticeships. 15 BY adding to 16 Article – Business Occupations and Professions 17 Section 12–305.3 18 Annotated Code of Maryland 19 (2018 Replacement Volume and 2024 Supplement) 20 BY adding to 21 Article – Business Regulation 22 Section 2–104.1 23 Annotated Code of Maryland 24 (2024 Replacement Volume) 25 2 HOUSE BILL 501 BY repealing and reenacting, with amendments, 1 Article – Labor and Employment 2 Section 11–405(a) and (d) 3 Annotated Code of Maryland 4 (2016 Replacement Volume and 2024 Supplement) 5 BY repealing 6 Article – Labor and Employment 7 Section 11–409 8 Annotated Code of Maryland 9 (2016 Replacement Volume and 2024 Supplement) 10 BY adding to 11 Article – Labor and Employment 12 Section 11–409, 11–410, and 11–607 13 Annotated Code of Maryland 14 (2016 Replacement Volume and 2024 Supplement) 15 BY repealing and reenacting, without amendments, 16 Article – State Finance and Procurement 17 Section 6–226(a)(2)(i) 18 Annotated Code of Maryland 19 (2021 Replacement Volume and 2024 Supplement) 20 BY repealing and reenacting, with amendments, 21 Article – State Finance and Procurement 22 Section 6–226(a)(2)(ii)204. and 205. 23 Annotated Code of Maryland 24 (2021 Replacement Volume and 2024 Supplement) 25 BY adding to 26 Article – State Finance and Procurement 27 Section 6–226(a)(2)(ii)206. 28 Annotated Code of Maryland 29 (2021 Replacement Volume and 2024 Supplement) 30 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 31 That the Laws of Maryland read as follows: 32 Article – Business Occupations and Professions 33 12–305.3. 34 THE BOARD SHALL WAIVE THE EXAMINATION REQUIREM ENTS FOR A 35 JOURNEY PLUMBER LICE NSE FOR AN INDIVIDUA L WHO: 36 HOUSE BILL 501 3 (1) HAS SUCCESSFULLY COM PLETED A PLUMBING AP PRENTICESHIP 1 PROGRAM APPROVED BY THE DIVISION OF WORKFORCE DEVELOPMENT AND 2 ADULT LEARNING; AND 3 (2) PAYS THE APPROPRIATE FEE REQUIRED UNDER § 12–306 OF THIS 4 SUBTITLE. 5 Article – Business Regulation 6 2–104.1. 7 (A) IN THIS SECTION , “LICENSE” MEANS A LICENSE , CERTIFICATE, 8 REGISTRATION , PERMIT, OR OTHER CREDENTIAL THAT IS ISSUED BY A UNIT OF THE 9 DIVISION OF OCCUPATIONAL AND PROFESSIONAL LICENSING IN THE 10 DEPARTMENT . 11 (B) UNLESS REQUIRED BY FE DERAL LAW, THE SECRETARY MAY WAIVE T HE 12 EXAMINATION REQUIREM ENT FOR A LICENSE FO R AN INDIVIDUAL WHO 13 SUCCESSFULLY COMPLET ES A REGISTERED APPR ENTICESHIP PROGRAM A PPROVED 14 BY THE DIVISION OF WORKFORC E DEVELOPMENT AND ADULT LEARNING IF THE 15 MARYLAND APPRENTICESHIP AND TRAINING COUNCIL HAS FOUND THA T THE 16 APPROVED REGISTERED APPRENTICESHIP PROGR AM MEETS INDUSTRY ST ANDARDS 17 AND LICENSURE REQUIR EMENTS. 18 (C) THIS SECTION MAY NOT BE CONSTRUED TO ELIM INATE EDUCATION OR 19 EXPERIENCE REQUIREME NTS ESTABLISHED UNDE R STATE LAW FOR LICENSU RE. 20 Article – Labor and Employment 21 11–405. 22 (a) The [duties of the] Council shall [be to]: 23 (1) advise the Division of Workforce Development and Adult Learning on 24 the apprenticeability of occupations in the State of Maryland; 25 (2) encourage the establishment of local apprenticeship committees where 26 the committees are needed; 27 (3) make recommendations regarding the formulation and adoption of 28 standards of apprenticeship which safeguard the welfare of apprentices, being guided, but 29 not controlled, by the standards of apprenticeship recommended by the federal committee 30 on apprenticeship; 31 (4) REQUIRE A MINIMUM RA TIO OF ONE JOURNEYWO RKER 32 4 HOUSE BILL 501 REGULARLY EMPLOYED T O ONE APPRENTICE, CONSISTENT WITH PROP ER 1 SUPERVISION, TRAINING, AND CONTINUITY OF EM PLOYMENT AND APPLICA BLE 2 PROVISIONS IN COLLEC TIVE BARGAINING AGRE EMENTS; 3 (5) AUTHORIZE A DEVIATIO N FROM THE MINIMUM R ATIO 4 REQUIREMENT FOR ALL OCCUPATIONS THAT ARE DEFINED BY TH E SECRETARY AS 5 NONHAZARDOUS TO WORK ERS AND MEMBERS OF T HE PUBLIC; 6 (6) CONSIDER FORMAL WRIT TEN DEVIATION REQUES TS FROM ALL 7 OTHER OCCUPATIONS ; 8 [(4)] (7) make recommendations regarding the formulation of policies for 9 the overall apprenticeship program; 10 [(5)] (8) make recommendations regarding the registration of standards 11 of apprenticeship of the groups or employers that elect to conform with the provisions of 12 this subtitle; 13 [(6)] (9) make recommendations regarding the registration of 14 apprenticeship agreements which conform to the standards of apprenticeship adopted by 15 the Division of Workforce Development and Adult Learning; 16 [(7)] (10) recommend the issuance of certificates of completion of 17 apprenticeship to apprentices who are registered with the Division of Workforce 18 Development and Adult Learning when the Division determines that such apprentices have 19 completed successfully their apprenticeship; 20 [(8)] (11) seek all information pertaining to apprenticeship training in the 21 State; 22 [(9)] (12) prescribe its rules of procedure and duties of the Chairman, 23 Director, and Secretary subject to the provisions of this law; and 24 [(10)] (13) perform other advisory functions as the Governor or the 25 Secretary may direct or as may come within the scope of the Council. 26 (d) (1) On or before [June 30 of] DECEMBER 31 each year, the Division of 27 Workforce Development and Adult Learning shall report to the General Assembly, in 28 accordance with § 2–1257 of the State Government Article, the following information for 29 the immediately preceding calendar year: 30 (i) the completion and enrollment rates of each apprenticeship 31 program registered in the State; [and] 32 (ii) the age, race, sex or gender identity, county of residence, and 33 HOUSE BILL 501 5 program enrollment of each individual enrolled in a registered apprenticeship program; 1 (III) THE NUMBER OF : 2 1. QUALIFIED INTERMEDIA RIES REGISTERED IN T HE 3 REGISTERED APPRENTICESHIP QUALIFIED INTERMEDIARY PROGRAM; 4 2. APPROVED GRANTS AND PROCUREMENTS USED BY 5 THE SECRETARY UNDER § 11–410(C)(3) OF THIS SUBTITLE; AND 6 3. NEWLY REGISTERED APPRENTIC ES AND NEWLY 7 REGISTERED APPRENTIC ESHIP PROGRAMS RESUL TING FROM THE REGISTERED 8 APPRENTICESHIP QUALIFIED INTERMEDIARY PROGRAM; AND 9 (IV) THE NUMBER AND VALUE OF THE INCENTIVES AW ARDED 10 UNDER THE MARYLAND APPRENTICESHIP INCENTIVE PROGRAM. 11 (2) The Division of Workforce Development and Adult Learning shall[: 12 (i) sort the information required under paragraph (1) of this 13 subsection by apprenticeship program; and 14 (ii)] publish the report required under paragraph (1) of this 15 subsection on the Division of Workforce Development and Adult Learning’s Web site. 16 [11–409. 17 (a) In this section, “Committee” means the Youth Apprenticeship Advisory 18 Committee. 19 (b) There is a Youth Apprenticeship Advisory Committee in the Division of 20 Workforce Development and Adult Learning. 21 (c) The Committee consists of the following members: 22 (1) the Secretary, or the Secretary’s designee; 23 (2) the State Superintendent of Schools, or the State Superintendent’s 24 designee; 25 (3) the Secretary of Commerce, or the Secretary’s designee; 26 (4) the Secretary of Juvenile Services, or the Secretary’s designee; 27 (5) the Assistant Secretary of the Division of Workforce Development and 28 6 HOUSE BILL 501 Adult Learning, or the Assistant Secretary’s designee; and 1 (6) the following members, appointed by the Governor: 2 (i) two representatives of the Council; 3 (ii) one representative of an employee organization; 4 (iii) one employer whose business has a nonjoint apprenticeship 5 program; 6 (iv) one representative from a community college; 7 (v) one individual who holds a doctoral degree and specializes in 8 labor economics with expertise in national and international apprenticeship systems; 9 (vi) one representative of a nonprofit organization who is involved 10 with employee training and workforce development; 11 (vii) one representative of the Maryland Chamber of Commerce; and 12 (viii) two representatives from regional business councils that serve 13 different regions of the State. 14 (d) The Committee shall: 15 (1) evaluate the effectiveness of existing high school youth apprenticeship 16 programs in the State, other states, and other countries based on a systematic review of 17 relevant data; 18 (2) review and identify: 19 (i) ways to implement high school youth apprenticeship programs 20 in the State; and 21 (ii) means through which employers and organizations can obtain 22 grants, tax credits, and other subsidies to support establishment and operation of high 23 school youth apprenticeship programs; and 24 (3) set targets for the number of apprenticeship opportunities for youth 25 that the State should reach over the next 3 years. 26 (e) On or before December 1 of each year, the Committee shall submit a 27 report, in accordance with § 2–1257 of the State Government Article, to the General 28 Assembly regarding any recommended legislation to promote high school youth 29 apprenticeship programs in the State.] 30 HOUSE BILL 501 7 11–409. 1 (A) IN THIS SECTION , “OFFICE” MEANS THE MARYLAND OFFICE OF 2 REGISTERED APPRENTICESHIP DEVELOPMENT . 3 (B) THERE IS A MARYLAND OFFICE OF REGISTERED APPRENTICESHIP 4 DEVELOPMENT WITHIN TH E MARYLAND APPRENTICESHIP AND TRAINING 5 PROGRAM OF THE DIVISION OF WORKFORCE DEVELOPMENT AND ADULT 6 LEARNING. 7 (C) THE PURPOSE OF THE OFFICE IS TO MARKET A ND ADVANCE THE 8 REGISTERED APPRENTIC ESHIP SYSTEM THROUGHOUT THE STATE. 9 (D) THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN 10 APPROPRIATION TO THE MARYLAND APPRENTICESHIP AND TRAINING PROGRAM 11 TO COVER ADMINISTRAT IVE COSTS FOR THE OFFICE. 12 11–410. 13 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14 INDICATED. 15 (2) “DIRECTOR” MEANS THE DIRECTOR OF THE MARYLAND 16 APPRENTICESHIP AND TRAINING PROGRAM. 17 (3) “PROGRAM” MEANS THE REGISTERED APPRENTICESHIP 18 QUALIFIED INTERMEDIARY PROGRAM. 19 (4) “QUALIFIED INTERMEDIAR Y” MEANS AN ENTITY TH AT 20 DEMONSTRATES EXPERTI SE IN: 21 (I) CONNECTING SPONSORS , EMPLOYERS , OR 22 APPRENTICESHIP PROGR AM PARTICIPANTS WITH REGISTERED APPRENTIC ESHIP 23 PROGRAMS; 24 (II) CONVENING STAKEHOLDE RS TO DEVELOP REGIST ERED 25 APPRENTICESHIP PROGR AMS; OR 26 (III) OTHER KEY FUNC TIONS AS DETERMINED APPROPRIATE BY 27 THE DEPARTMENT TO SUCCESS FULLY BUILD AND SCAL E REGISTERED 28 APPRENTICESHIP PROGR AMS THAT ACHIEVE DES IRED WORKFORCE OUTCO MES. 29 (B) THERE IS A REGISTERED APPRENTICESHIP QUALIFIED INTERMEDIARY 30 8 HOUSE BILL 501 PROGRAM WITHIN THE MARYLAND APPRENTICESHIP AND TRAINING PROGRAM OF 1 THE DIVISION OF WORKFORCE DEVELOPMENT AND ADULT LEARNING. 2 (C) (1) THE PROGRAM SHALL : 3 (I) REPORT TO THE DIRECTOR; 4 (II) INCREASE AWARENESS O F REGISTERED APPRENT ICESHIP 5 PROGRAMS THROUGH IND USTRY OUTREACH ; 6 (III) CONNECT EMPLOYERS AN D LABOR ORGANIZATION S WITH 7 WORKFORCE AND EDUCAT ION PARTNERS ; AND 8 (IV) PROVIDE TECHNICAL AS SISTANCE TO LAUNCH A ND EXPAND 9 REGISTERED APPRENTIC ESHIP PROGRAMS WITH A FOCUS ON NONTRADIT IONAL 10 SECTORS. 11 (2) THE DIRECTOR SHALL , IN COLLABORATION WITH T HE 12 SECRETARY, THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD, AND THE 13 DEPARTMENT OF COMMERCE, DEVELOP THE PROGRAM. 14 (3) THE SECRETARY MAY USE GRA NTS OR PROCUREMENT , AMONG 15 OTHER STRATEGIES , TO ADVANCE AND ACCOM PLISH THE GOALS OF T HE PROGRAM. 16 11–607. 17 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 18 INDICATED. 19 (2) “EMPLOYER” MEANS AN INDIVIDUAL OR ORGANIZATION LOCA TED 20 OR OPERATING IN THE STATE THAT EMPLOYS A REGISTERED APPRENTIC E. 21 (3) “FUND” MEANS THE MARYLAND APPRENTICE SHIP INCENTIVE 22 PROGRAM FUND. 23 (4) “PROGRAM” MEANS THE MARYLAND APPRENTICESHIP 24 INCENTIVE PROGRAM. 25 (5) “REGISTERED APPRENTICE ” MEANS AN EMPLOYEE WH O 26 PARTICIPATES IN A RE GISTERED APPRENTICES HIP PROGRAM . 27 (6) “REGISTERED APPRENTICE SHIP” MEANS AN APPREN TICESHIP 28 PROGRAM THAT IS REGI STERED WITH , AND APPROVED BY , THE DIVISION OF 29 HOUSE BILL 501 9 WORKFORCE DEVELOPMENT AND ADULT LEARNING. 1 (7) “SPONSOR” MEANS AN INDIVIDUAL , ASSOCIATION, COMMITTEE, 2 ORGANIZATION , OR EMPLOYER IN WHOSE NAME OR TITLE THE RE GISTERED 3 APPRENTICESHI P PROGRAM IS OR IS T O BE REGISTERED . 4 (B) THERE IS A MARYLAND APPRENTICESHIP INCENTIVE PROGRAM IN THE 5 DEPARTMENT . 6 (C) THE PURPOSES OF THE PROGRAM ARE TO : 7 (1) DEVELOP A WELL –TRAINED, PRODUCTIVE WORKFORCE THAT 8 MEETS THE NEEDS OF T HE STATE’S ECONOMY; AND 9 (2) HELP EMPLOYERS AND S PONSORS OFFSET COSTS , INCLUDING 10 RECRUITMENT , EDUCATION, TRAINING, AND ACCOMMODATIONS F OR DISABILITIES 11 OR MATERIALS , ASSOCIATED WITH HIRI NG NEWLY REGISTERED APPRENTICES . 12 (D) THE DEPARTMENT SHALL ADMI NISTER THE PROGRAM AND ESTABLISH: 13 (1) REQUIREMENTS FOR INC ENTIVE APPLICATIONS ; 14 (2) A PROCESS FOR REVIEW ING INCENTIVE APPLIC ATIONS AND 15 AWARDING INCENTIVES TO ELIGIBLE EMPLOYER S OR SPONSORS; 16 (3) THE MAXIMUM AWARD EL IGIBILITY PER NEWLY REGISTERED 17 APPRENTICE SUBJECT T O FUND AVAILABILITY; 18 (4) THE MAXIMUM AMOUNT O F INCENTIVES THAT AN ELIGIBLE 19 EMPLOYER OR SPONSOR MAY RECEIVE EACH YEA R; AND 20 (5) A PROCESS FOR MONITO RING AND EVALUATING OUTCOMES, 21 ASSESSING COMPLIANCE , AND TAKING CORRECTIV E ACTION, INCLUDING 22 REQUIRING REIMBURSEMENT OF INC ENTIVES, SHOULD AN EMPLOYER O R SPONSOR 23 FAIL TO MEET THE REQ UIREMENTS OF THE PROGRAM. 24 (E) (1) THERE IS A MARYLAND APPRENTICESHIP INCENTIVE PROGRAM 25 FUND. 26 (2) THE PURPOSE OF THE FUND IS TO PROVIDE IN CENTIVES UNDER 27 THE PROGRAM. 28 (3) THE SECRETARY SHALL ADMIN ISTER THE FUND. 29 10 HOUSE BILL 501 (4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 1 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 2 (II) THE STATE TREASURER SHALL HOLD THE FUND 3 SEPARATELY, AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 4 (5) THE FUND CONSISTS OF : 5 (I) MONEY APPROPRIATED T O THE FUND UNDER PARAGRAPH 6 (9) OF THIS SUBSECTION ; 7 (II) MONEY COLLECTED DUE TO NONCOMPLIANCE WIT H 8 PROGRAM REQUIREMENTS ; 9 (III) INTEREST EARNINGS OF THE FUND; AND 10 (IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 11 FOR THE BENEFIT OF T HE FUND. 12 (6) THE FUND MAY BE USED ONLY FOR PROVIDING INCENT IVES 13 UNDER THE PROGRAM AND ADMINISTR ATIVE EXPENSES RELAT ED TO THE 14 PROGRAM. 15 (7) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 16 FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. 17 (II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 18 CREDITED TO THE FUND. 19 (8) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN 20 ACCORDANCE WITH THE STATE BUDGET . 21 (9) FOR EACH OF FISCAL YEARS 2027 THROUGH 2030, THE 22 GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN APPROPRIA TION OF 23 AT LEAST $5,000,000 FOR THE FUND. 24 (F) (1) SUBJECT TO THIS SUBSE CTION, AN EMPLOYER OR A SPO NSOR 25 MAY APPLY FOR AND BE AWARDED AN INCENTIVE UNDER THE PROGRAM. 26 (2) AN EMPLOYER OR A SPON SOR MAY APPLY FOR ON LY ONE GRANT 27 FOR A NEWLY REGISTER ED APPRENTICE WHO : 28 HOUSE BILL 501 11 (I) HAS BEEN EMPLOYED FO R AT LEAST 7 MONTHS; AND 1 (II) IS WITHIN THE INITIA L YEAR OF EMPLOYMENT WITH THE 2 APPLICANT. 3 (3) AN EMPLOYER OR A SPONSOR MAY BE AWARD ED ONLY ONE GRANT 4 PER EACH NEWLY REGIS TERED APPRENTICE PER YEAR. 5 (4) AN EMPLOYER OR SPONSO R AWARDED A GRANT UN DER THE 6 PROGRAM SHALL ATTEST TO ITS INTENT TO RET AIN THE APPRENTICE A FTER 7 COMPLETION OF THE RE GISTERED APPRENTICES HIP AND ITS DEVELOPMENT OF A 8 PLAN TO ACHIEVE THE RETENTION OF THE APP RENTICE. 9 (5) IF AN INCENTIVE IS AW ARDED TO AN EMPLOYER OR A SPONSOR 10 ON BEHALF OF A NEWLY REGISTERED APPRENTIC E, ANOTHER EMPLOYER OR 11 SPONSOR MAY NOT APPL Y FOR AN INCENTIVE U NDER THE PROGRAM FOR THE SAME 12 NEWLY REGISTERED APP RENTICE. 13 (G) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS 14 SECTION. 15 Article – State Finance and Procurement 16 6–226. 17 (a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 18 through 2028. 19 2. Notwithstanding any other provision of law, and unless 20 inconsistent with a federal law, grant agreement, or other federal requirement or with the 21 terms of a gift or settlement agreement, net interest on all State money allocated by the 22 State Treasurer under this section to special funds or accounts, and otherwise entitled to 23 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 24 Fund of the State. 25 (ii) The provisions of subparagraph (i) of this paragraph do not apply 26 to the following funds: 27 204. the Victims of Domestic Violence Program Grant Fund; 28 [and] 29 205. the Proposed Programs Collaborative Grant Fund; AND 30 206. THE MARYLAND APPRENTICESHIP INCENTIVE 31 PROGRAM FUND. 32 12 HOUSE BILL 501 SECTION 2. AND BE IT FURTHER ENACTED , That § 11–405 of the Labor and 1 Employment Article, as enacted by Section 1 of this Act, shall be construed to apply 2 retroactively and shall be applied to and interpreted to affect only registered apprenticeship 3 programs initially approved by the Maryland Apprenticeship and Training Council on or 4 after January 1, 2023. 5 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 6 October 1, 2025. 7