MD
Maryland House Bill HB957

Maryland 2025 Regular Session

Maryland House Bill HB957 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
5- Underlining indicates amendments to bill.
6- Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7-amendment.
85 *hb0957*
96
107 HOUSE BILL 957
118 P2 5lr2141
129
13-By: Delegate Wilson Delegates Wilson, Alston, Bagnall , Bhandari, Cullison,
14-Guzzone, Hill, S. Johnson, Kaiser, Kerr, Lopez, Martinez, Pena –Melnyk,
15-Rosenberg, Ross, Taveras, White Holland, Woods, and Woorman
10+By: Delegate Wilson
1611 Introduced and read first time: January 31, 2025
1712 Assigned to: Health and Government Operations and Economic Matters
18-Committee Report: Favorable with amendments
19-House action: Adopted
20-Read second time: March 20, 2025
2113
22-CHAPTER ______
14+A BILL ENTITLED
2315
2416 AN ACT concerning 1
2517
2618 State Procurement – Worker Residency Requirements 2
2719
2820 FOR the purpose of requiring certain contractors to ensure that a certain percentage of 3
2921 workers on certain projects are State residents and a certain percentage of work 4
30-hours on the certain projects are performed by State residents; requiring the 5
31-Department of Labor to enforce certain worker residency requirements; providing 6
32-that a person may be debarred from entering into a contract with the State for a 7
33-certain period of time under certain circumstances; and generally relating to State 8
34-procurement and worker residency requirements. 9
22+hours on the projects are performed by State residents; requiring the Department of 5
23+Labor to enforce certain worker residency requirements; providing that a person may 6
24+be debarred from entering into a contract with the State for a certain period of time 7
25+under certain circumstances; and generally relating to State procurement and 8
26+worker residency requirements. 9
3527
3628 BY repealing and reenacting, with amendments, 10
3729 Article – State Finance and Procurement 11
3830 Section 16–203 and 17–602 12
3931 Annotated Code of Maryland 13
4032 (2021 Replacement Volume and 2024 Supplement) 14
4133
4234 BY adding to 15
4335 Article – State Finance and Procurement 16
44-Section 17–6B–01 through 17–6B–05 17–6B–06 to be under the new subtitle 17
45-“Subtitle 6B. Worker Residency Requirements” 18
36+Section 17–6B–01 through 17–6B–05 to be under the new subtitle “Subtitle 6B. 17
37+Worker Residency Requirements” 18
4638 Annotated Code of Maryland 19
4739 (2021 Replacement Volume and 2024 Supplement) 20
40+
41+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
42+That the Laws of Maryland read as follows: 22
43+
44+Article – State Finance and Procurement 23
45+
46+16–203. 24
4847 2 HOUSE BILL 957
4948
5049
51- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
52-That the Laws of Maryland read as follows: 2
50+ (a) A person may be debarred from entering into a contract with the State if the 1
51+person, an officer, partner, controlling stockholder or principal of that person, or any other 2
52+person substantially involved in that person’s contracting activities has: 3
5353
54-Article – State Finance and Procurement 3
54+ (1) been convicted under the laws of the State, another state or the United 4
55+States of: 5
5556
56-16–203. 4
57+ (i) a criminal offense incident to obtaining, attempting to obtain, or 6
58+performing a public or private contract, except as provided in § 16–202 of this subtitle; or 7
5759
58- (a) A person may be debarred from entering into a contract with the State if the 5
59-person, an officer, partner, controlling stockholder or principal of that person, or any other 6
60-person substantially involved in that person’s contracting activities has: 7
60+ (ii) fraud, embezzlement, theft, forgery, falsification or destruction 8
61+of records, or receiving stolen property; 9
6162
62- (1) been convicted under the laws of the State, another state or the United 8
63-States of: 9
63+ (2) been convicted of a criminal violation of an antitrust statute of the 10
64+State, another state, or the United States; 11
6465
65- (i) a criminal offense incident to obtaining, attempting to obtain, or 10
66-performing a public or private contract, except as provided in § 16–202 of this subtitle; or 11
66+ (3) been convicted of a violation of the Racketeer Influenced and Corrupt 12
67+Organization Act, or the Mail Fraud Act, for acts in connection with the submission of bids 13
68+or proposals for a public or private contract; 14
6769
68- (ii) fraud, embezzlement, theft, forgery, falsification or destruction 12
69-of records, or receiving stolen property; 13
70+ (4) been convicted of a violation of § 14–308 of this article; 15
7071
71- (2) been convicted of a criminal violation of an antitrust statute of the 14
72-State, another state, or the United States; 15
72+ (5) been convicted of conspiracy to commit any act or omission that would 16
73+constitute grounds for conviction under any of the laws or statutes described in items (1), 17
74+(2), (3), or (4) of this subsection; 18
7375
74- (3) been convicted of a violation of the Racketeer Influenced and Corrupt 16
75-Organization Act, or the Mail Fraud Act, for acts in connection with the submission of bids 17
76-or proposals for a public or private contract; 18
76+ (6) been convicted of a violation of § 7201, § 7203, § 7205, § 7206, or § 7207 19
77+of the Internal Revenue Code; 20
7778
78- (4) been convicted of a violation of § 14–308 of this article; 19
79+ (7) been convicted of a violation of 18 U.S.C. § 286, § 287, or § 371; 21
7980
80- (5) been convicted of conspiracy to commit any act or omission that would 20
81-constitute grounds for conviction under any of the laws or statutes described in items (1), 21
82-(2), (3), or (4) of this subsection; 22
81+ (8) been convicted of a violation of Title 13, Subtitle 7 or Subtitle 10 of the 22
82+Tax – General Article; 23
8383
84- (6) been convicted of a violation of § 7201, § 7203, § 7205, § 7206, or § 7207 23
85-of the Internal Revenue Code; 24
84+ (9) been found to have willfully or knowingly violated Title 17, Subtitle 2 24
85+or Title 18 of this article if: 25
8686
87- (7) been convicted of a violation of 18 U.S.C. § 286, § 287, or § 371; 25
87+ (i) 1. the finding was made by a court; and 26
8888
89- (8) been convicted of a violation of Title 13, Subtitle 7 or Subtitle 10 of the 26
90-Tax – General Article; 27
89+ 2. the decision of the court became final; or 27
9190
92- (9) been found to have willfully or knowingly violated Title 17, Subtitle 2 28
93-or Title 18 of this article if: 29
91+ (ii) 1. the finding was made in a contested case under the 28
92+Administrative Procedure Act; and 29
9493
95- (i) 1. the finding was made by a court; and 30
94+ 2. the finding was not overturned on judicial review; 30
95+ HOUSE BILL 957 3
9696
97- 2. the decision of the court became final; or 31 HOUSE BILL 957 3
97+
98+ (10) been found to have willfully or knowingly violated Title 3, Subtitle 3, 1
99+Subtitle 4, or Subtitle 5 or Title 5 of the Labor and Employment Article if: 2
100+
101+ (i) 1. the finding was made by a court; and 3
102+
103+ 2. the decision of the court became final; or 4
104+
105+ (ii) 1. the finding was made in a contested case under the 5
106+Administrative Procedure Act; and 6
107+
108+ 2. the finding was not overturned on judicial review; 7
109+
110+ (11) been found civilly liable under an antitrust statute of the State, another 8
111+state, or the United States for acts or omissions in connection with the submission of bids 9
112+or proposals for a public or private contract; 10
113+
114+ (12) been found to have willfully or knowingly violated Title 20, Subtitle 6 11
115+of the State Government Article if: 12
116+
117+ (i) 1. the finding was made by a court; and 13
118+
119+ 2. the decision of the court became final; or 14
120+
121+ (ii) 1. the finding was made in a contested case under the 15
122+Administrative Procedure Act; and 16
123+
124+ 2. the finding was not overturned on judicial review; or 17
125+
126+ (13) been found in a final adjudicated decision to have violated the 18
127+Commercial Nondiscrimination Policy under Title 19 of this article with regard to a public 19
128+or private contract. 20
129+
130+ (b) A person may be debarred from entering into a contract with the State if, 21
131+during the course of an official investigation or other proceedings, the person, an officer, 22
132+partner, controlling stockholder or principal of that person, or any other person 23
133+substantially involved in that person’s contracting activities has admitted, in writing or 24
134+under oath, an act or omission that constitutes grounds for conviction or liability under any 25
135+law or statute described in subsection (a) of this section. 26
136+
137+ (c) A person may be debarred from entering into a contract with the State if the 27
138+person, an officer, partner, controlling stockholder or principal of that person, or any other 28
139+person substantially involved in that person’s contracting activities has been debarred from 29
140+federal contracts under: 30
141+
142+ (1) the Federal Acquisition Regulations, as provided in 48 C.F.R. Chapter 31
143+1; or 32
144+ 4 HOUSE BILL 957
145+
146+
147+ (2) federal Executive Order 11246, as amended due to discriminatory 1
148+hiring practices in the State. 2
149+
150+ (d) A person may be debarred from entering into a contract with the State: 3
151+
152+ (1) if the Board finds that the person was established or operates in a 4
153+manner designed to evade the application of this title or to defeat the purpose of this title; 5
154+
155+ (2) if the person is a successor, assignee, subsidiary, or affiliate of a person 6
156+who is debarred or suspended; 7
157+
158+ (3) except as provided under item (4) of this subsection, for one of the 8
159+following violations of a contract provision if the Board believes it to be serious enough to 9
160+justify debarment: 10
161+
162+ (i) the deliberate failure, without good cause, to perform in 11
163+accordance with the specifications, or within the time limit, provided in a contract; or 12
164+
165+ (ii) within the preceding 5 years, the failure to perform or 13
166+unsatisfactory performance in accordance with the terms of one or more contracts, unless 14
167+the failure to perform or unsatisfactory performance was caused by acts beyond the control 15
168+of the person; 16
169+
170+ (4) for a period not exceeding 3 years if the person persistently fails to meet 17
171+contract goals in the absence of mitigating factors under the criteria established under § 18
172+14–305(c)(2) of this article; 19
173+
174+ (5) FOR A PERIOD NOT EXC EEDING 5 YEARS IF THE PERSON IS FOUND 20
175+TO HAVE VIOLATE D THE REQUIREMENTS O F TITLE 17, SUBTITLE 6B OF THIS 21
176+ARTICLE TWICE IN A 10–YEAR PERIOD; 22
177+
178+ [(5)] (6) if the person is a competing contractor, or any officer, employee, 23
179+representative, agent, or consultant of any competing contractor who violates § 13–211 of 24
180+this article; or 25
181+
182+ [(6)] (7) for any other cause that the Board determines to be so serious as 26
183+to affect the integrity of the procurement process. 27
184+
185+17–602. 28
186+
187+ (a) There is a State Apprenticeship Training Fund in the Department. 29
188+
189+ (b) The Fund consists of: 30
190+
191+ (1) payments made by contractors or subcontractors in accordance with 31
192+this subtitle and Subtitle 6A of this title; and 32
193+ HOUSE BILL 957 5
194+
195+
196+ (2) penalties collected as a result of violations of this subtitle and [Subtitle] 1
197+SUBTITLES 6A AND 6B of this title. 2
198+
199+ (c) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this 3
200+article. 4
201+
202+ (d) The State Treasurer shall hold the Fund separately, and the Comptroller shall 5
203+account for the Fund. 6
204+
205+ (e) The Secretary shall use money in the Fund to: 7
206+
207+ (1) promote preapprenticeship programs and other workforce development 8
208+programs in the State’s public secondary schools and community colleges that assist 9
209+students in preparing for and entering apprenticeship training programs; and 10
210+
211+ (2) pay any costs associated with carrying out the provisions of this subtitle 11
212+and [Subtitle] SUBTITLES 6A AND 6B of this title. 12
213+
214+SUBTITLE 6B. WORKER RESIDENCY REQUIREMENTS . 13
215+
216+17–6B–01. 14
217+
218+ (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 15
219+INDICATED. 16
220+
221+ (B) “APPRENTICEABLE HOUR” MEANS 25% OF THE TOTAL OF JOUR NEY 17
222+HOURS PLUS APPRENTIC ESHIP HOURS. 18
223+
224+ (C) “APPRENTICESHIP HOUR ” MEANS 1 HOUR OF TIME SPENT I N AN 19
225+APPRENTICESHIP PROGR AM AND MAY INCLUDE O BSERVATION, PERFORMING WORK , 20
226+OR WORK–RELATED DISCUSSION . 21
227+
228+ (D) “COVERED LARGE PROJECT ” MEANS A STATE–FUNDED PROJECT THAT 22
229+IS VALUED AT $5,000,000 OR MORE. 23
230+
231+ (E) “COVERED SMALL PROJECT” MEANS A STATE–FUNDED PROJECT THAT 24
232+IS VALUED AT EQUAL T O OR GREATER THAN $300,000 BUT LESS THAN $5,000,000. 25
233+
234+ (F) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF LABOR. 26
235+
236+ (G) “NEW APPRENTICE ” MEANS AN APPRENTICE : 27
237+
238+ (1) EMPLOYED TO LEARN A SKILLED TRADE THROUG H A REGISTERED 28
239+APPRENTICESHIP PROGR AM; 29 6 HOUSE BILL 957
98240
99241
100242
101- (ii) 1. the finding was made in a contested case under the 1
102-Administrative Procedure Act; and 2
243+ (2) WHOSE START DATE OF EMPLOYMENT WITH A CO MPANY IS AFTER 1
244+THE DATE ON WHICH THE STATE CONTRACT IS AWA RDED BUT BEFORE OR D URING 2
245+THE PERFORMANCE OF T HE STATE CONTRACT ; AND 3
103246
104- 2. the finding was not overturned on judicial review; 3
247+ (3) WHO IS EITHER NEW TO THE COMPANY OR HAS B EEN SEPARATED 4
248+FROM THE COMPANY FOR AT LEAST 60 DAYS PRIOR TO THE DA TE OF HIRE. 5
105249
106- (10) been found to have willfully or knowingly violated Title 3, Subtitle 3, 4
107-Subtitle 4, or Subtitle 5 or Title 5 of the Labor and Employment Article if: 5
250+ (H) “NEW EMPLOYEE ” MEANS AN INDIVIDUAL: 6
108251
109- (i) 1. the finding was made by a court; and 6
252+ (1) WHOSE START DATE OF EMPLOYMENT WITH A CO MPANY IS AFTER 7
253+THE DATE ON WHICH TH E STATE CONTRACT IS AWA RDED BUT BEFORE OR DURING 8
254+THE PERFORMANCE OF T HE STATE CONTRACT ; AND 9
110255
111- 2. the decision of the court became final; or 7
256+ (2) WHO IS EITHER NEW TO THE COMPANY OR WHO H AS BEEN 10
257+SEPARATED FROM THE COMPANY FOR AT LEAST 60 DAYS PRIOR TO THE DA TE OF 11
258+HIRE. 12
112259
113- (ii) 1. the finding was made in a contested case under the 8
114-Administrative Procedure Act; and 9
260+ (I) “SECRETARY” MEANS THE SECRETARY OF LABOR. 13
115261
116- 2. the finding was not overturned on judicial review; 10
262+17–6B–02. 14
117263
118- (11) been found civilly liable under an antitrust statute of the State, another 11
119-state, or the United States for acts or omissions in connection with the submission of bids 12
120-or proposals for a public or private contract; 13
264+ THIS SUBTITLE APPLIES ONLY TO CONTRACTORS AWARDED STATE 15
265+CONTRACTS WITH A TOTAL VALUE E QUAL TO OR GREATER T HAN $500,000 WITHIN 16
266+THE IMMEDIATELY PRECEDIN G 12–MONTH PERIOD . 17
121267
122- (12) been found to have willfully or knowingly violated Title 20, Subtitle 6 14
123-of the State Government Article if: 15
268+17–6B–03. 18
124269
125- (i) 1. the finding was made by a court; and 16
270+ (A) A CONTRACTOR THAT IS A WARDED A PROCUREMENT CONTRACT FOR A 19
271+COVERED SMALL PROJEC T SHALL ENSURE THAT , FOR THE APPLICABLE P ROJECT: 20
126272
127- 2. the decision of the court became final; or 17
273+ (1) AT LEAST 51% OF THE TOTAL NUMBER OF NEW EMPLOYEES AND 21
274+NEW APPRENTICES ARE STATE RESIDENTS ; AND 22
128275
129- (ii) 1. the finding was made in a contested case under the 18
130-Administrative Procedure Act; and 19
276+ (2) AT LEAST 35% OF APPRENTICESHIP HO URS ARE PERFORMED BY 23
277+STATE RESIDENT S. 24
131278
132- 2. the finding was not overturned on judicial review; or 20
279+ (B) A CONTRACTOR THAT IS A WARDED A PROCUREMENT CONTRACT FOR A 25
280+COVERED LARGE PROJECT SHALL ENSURE THAT , FOR THE APPLICABLE P ROJECT: 26
133281
134- (13) been found in a final adjudicated decision to have violated the 21
135-Commercial Nondiscrimination Policy under Title 19 of this article with regard to a public 22
136-or private contract. 23
137-
138- (b) A person may be debarred from entering into a contract with the State if, 24
139-during the course of an official investigation or other proceedings, the person, an officer, 25
140-partner, controlling stockholder or principal of that person, or any other person 26
141-substantially involved in that person’s contracting activities has admitted, in writing or 27
142-under oath, an act or omission that constitutes grounds for conviction or liability under any 28
143-law or statute described in subsection (a) of this section. 29
144-
145- (c) A person may be debarred from entering into a contract with the State if the 30
146-person, an officer, partner, controlling stockholder or principal of that person, or any other 31 4 HOUSE BILL 957
282+ (1) AT LEAST 20% OF JOURNEY WORKER HO URS ARE PERFORMED BY 27
283+STATE RESIDENTS ; 28
284+ HOUSE BILL 957 7
147285
148286
149-person substantially involved in that person’s contracting activities has been debarred from 1
150-federal contracts under: 2
287+ (2) AT LEAST 51% OF SKILLED WORKER HO URS ARE PERFORMED BY 1
288+STATE RESIDENTS ; 2
151289
152- (1) the Federal Acquisition Regulations, as provided in 48 C.F.R. Chapter 3
153-1; or 4
290+ (3) AT LEAST 70% OF COMMON LABOR WORK ER HOURS ARE 3
291+PERFORMED BY STATE RESIDENTS ; 4
154292
155- (2) federal Executive Order 11246, as amended due to discriminatory 5
156-hiring practices in the State. 6
293+ (4) AT LEAST 60% OF APPRENTICESHIP HO URS ARE PERFORMED BY 5
294+STATE RESIDENTS ; AND 6
157295
158- (d) A person may be debarred from entering into a contract with the State: 7
296+ (5) AT LEAST 35% OF ALL APPRENTICEABL E HOURS ARE PERFORMED 7
297+BY STATE RESIDENTS . 8
159298
160- (1) if the Board finds that the person was established or operates in a 8
161-manner designed to evade the application of this title or to defeat the purpose of this title; 9
299+ (C) AS A CONDITION OF REC EIVING THE CONTRACT , A CONTRACTOR 9
300+SUBJECT TO THIS SUBT ITLE SHALL PROVIDE TO THE UNIT AND THE DEPARTMENT A 10
301+STATEMENT ATTESTING THAT THE CONTRACTOR SHALL MEET THE REQUI REMENTS 11
302+OF THIS SECTION FOR THE APPLICABLE P ROJECT. 12
162303
163- (2) if the person is a successor, assignee, subsidiary, or affiliate of a person 10
164-who is debarred or suspended; 11
304+17–6B–04. 13
165305
166- (3) except as provided under item (4) of this subsection, for one of the 12
167-following violations of a contract provision if the Board believes it to be serious enough to 13
168-justify debarment: 14
306+ (A) THE SECRETARY MAY ADOPT R EGULATIONS AUTHORIZI NG A 14
307+CONTRACTOR TO ELECT TO MAKE A CONTRIBUTI ON TO A REGISTERED 15
308+APPRENTICESHIP PROGR AM AS AN ALTERNATIVE TO FULFILLING THE 16
309+REQUIREMENTS OF § 17–6B–03 OF THIS SUBTITLE. 17
169310
170- (i) the deliberate failure, without good cause, to perform in 15
171-accordance with the specifications, or within the time limit, provided in a contract; or 16
311+ (B) THE DEPARTMENT IS RESPONS IBLE FOR EN FORCING THE 18
312+REQUIREMENTS OF THIS SUBTITLE. 19
172313
173- (ii) within the preceding 5 years, the failure to perform or 17
174-unsatisfactory performance in accordance with the terms of one or more contracts, unless 18
175-the failure to perform or unsatisfactory performance was caused by acts beyond the control 19
176-of the person; 20
314+ (C) WHEN DETERMINING COMP LIANCE WITH THIS SUB TITLE, APPLICABLE 20
315+PERCENTAGES ESTABLIS HED UNDER § 17–6B–03 OF THIS SUBTITLE SHA LL BE 21
316+CALCULATED BY ROUNDI NG TO THE NEAREST WH OLE NUMBER . 22
177317
178- (4) for a period not exceeding 3 years if the person persistently fails to meet 21
179-contract goals in the absence of mitigating factors under the criteria established under § 22
180-14–305(c)(2) of this article; 23
318+17–6B–05. 23
181319
182- (5) FOR A PERIOD NOT EXC EEDING 5 YEARS IF THE PERSON IS FOUND 24
183-TO HAVE VIOLATED THE REQUIREMENTS OF TITLE 17, SUBTITLE 6B § 17–6B–03 OF 25
184-THIS ARTICLE TWICE FIVE TIMES IN A 10–YEAR 5–YEAR PERIOD; 26
320+ (A) A CONTRACTOR THAT FAIL S TO MEET THE REQUIR EMENTS OF THIS 24
321+SUBTITLE SHALL BE LI ABLE FOR AN AMOUNT E QUAL TO 0.125% OF THE TOTAL 25
322+DIRECT AND INDIRECT LABOR COSTS OF THE C ONTRACT FOR EACH PER CENTAGE 26
323+POINT BY WHICH THE C ONTRACTOR FAILS TO MEET THE APPLICABLE 27
324+REQUIREMENT. 28
185325
186- [(5)] (6) if the person is a competing contractor, or any officer, employee, 27
187-representative, agent, or consultant of any competing contractor who violates § 13–211 of 28
188-this article; or 29
326+ (B) PAYMENTS COLLECTED UN DER THIS SECTION SHA LL BE PAID TO: 29
189327
190- [(6)] (7) for any other cause that the Board determines to be so serious as 30
191-to affect the integrity of the procurement process. 31
192-
193-17–602. 32
194-
195- (a) There is a State Apprenticeship Training Fund in the Department. 33 HOUSE BILL 957 5
328+ (1) THE STATE APPRENTICESHIP TRAINING FUND ESTABLISHED 30
329+UNDER § 17–602 OF THIS TITLE; OR 31 8 HOUSE BILL 957
196330
197331
198332
199- (b) The Fund consists of: 1
333+ (2) A REGISTERED APPRENT ICESHIP PROGRAM OR A N 1
334+ORGANIZATION THAT HA S REGISTERED APPRENTICESHIP PROGR AMS FOR THE 2
335+PURPOSE OF SUPPORTIN G THESE PROGRAMS . 3
200336
201- (1) payments made by contractors or subcontractors in accordance with 2
202-this subtitle and Subtitle 6A of this title; and 3
337+ (C) THE SECRETARY SHALL ADOPT REGULATIONS TO ESTAB LISH 4
338+ADMINISTRATIVE PROCE DURES FOR THE COLLEC TION AND DISTRIBUTION OF 5
339+PAYMENTS UNDER THIS SECTION. 6
203340
204- (2) penalties collected as a result of violations of this subtitle and [Subtitle] 4
205-SUBTITLES 6A AND 6B of this title. 5
206-
207- (c) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this 6
208-article. 7
209-
210- (d) The State Treasurer shall hold the Fund separately, and the Comptroller shall 8
211-account for the Fund. 9
212-
213- (e) The Secretary shall use money in the Fund to: 10
214-
215- (1) promote preapprenticeship programs and other workforce development 11
216-programs in the State’s public secondary schools and community colleges that assist 12
217-students in preparing for and entering apprenticeship training programs; and 13
218-
219- (2) pay any costs associated with carrying out the provisions of this subtitle 14
220-and [Subtitle] SUBTITLES 6A AND 6B of this title. 15
221-
222-SUBTITLE 6B. WORKER RESIDENCY REQUIREMENTS . 16
223-
224-17–6B–01. 17
225-
226- (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 18
227-INDICATED. 19
228-
229- (B) “APPRENTICEABLE HOUR ” MEANS 25% OF THE TOTAL OF JOUR NEY 20
230-HOURS PLUS APPRENTIC ESHIP HOURS. 21
231-
232- (C) (B) “APPRENTICESHIP HOUR ” MEANS 1 HOUR OF TIME SPENT I N AN 22
233-APPRENTICESHIP PROGR AM AND MAY INCLUDE O BSERVATION, PERFORMING WORK , 23
234-OR WORK–RELATED DISCUSSION . 24
235-
236- (D) (C) “COVERED LARGE PROJECT ” MEANS A STATE–FUNDED PROJECT 25
237-PUBLIC WORK CONTRACT SUBJECT TO SUBTITLE 2 OF THIS TITLE THAT IS VALUED 26
238-AT $5,000,000 OR MORE. 27
239-
240- (E) “COVERED SMALL PROJECT ” MEANS A STATE–FUNDED PROJECT THAT 28
241-IS VALUED AT EQUAL T O OR GREATER THAN $300,000 BUT LESS THAN $5,000,000. 29
242- 6 HOUSE BILL 957
243-
244-
245- (F) (D) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF 1
246-LABOR. 2
247-
248- (G) (E) “NEW APPRENTICE ” MEANS AN APPRENTICE : 3
249-
250- (1) EMPLOYED TO LEARN A SKILLED TRADE THROUG H ENROLLED IN 4
251-A REGISTERED APPRENTICESHIP PROGR AM; 5
252-
253- (2) WHOSE START DATE OF EMPLOYMENT WITH A CO MPANY IS AFTER 6
254-THE DATE ON WHICH TH E STATE CONTRACT IS AWA RDED BUT BEFORE OR D URING 7
255-THE PERFORMANCE OF T HE STATE CONTRACT ; AND 8
256-
257- (3) WHO IS EITHER NEW TO THE COMPANY OR HAS B EEN SEPARATED 9
258-FROM THE COMPANY FOR AT LEAST 60 DAYS PRIOR TO THE DA TE OF HIRE. 10
259-
260- (H) “NEW EMPLOYEE” MEANS AN INDIVIDUAL : 11
261-
262- (1) WHOSE START DATE OF EMPLOYMENT WITH A CO MPANY IS AFTER 12
263-THE DATE ON WHICH TH E STATE CONTRACT IS AWA RDED BUT BEFORE OR D URING 13
264-THE PERFORMANCE OF T HE STATE CONTRACT ; AND 14
265-
266- (2) WHO IS EITHER NEW TO THE COMPANY OR WHO H AS BEEN 15
267-SEPARATED FROM THE C OMPANY FOR AT LEAST 60 DAYS PRIOR TO THE DA TE OF 16
268-HIRE. 17
269-
270- (E) “REGISTERED APPRENTICE SHIP PROGRAM ” MEANS AN 18
271-APPRENTICESHIP PROGR AM REGISTERED WITH T HE DIVISION OF WORKFORCE 19
272-DEVELOPMENT AND ADULT LEARNING WITHIN THE DEPARTMENT . 20
273-
274- (I) (F) “SECRETARY” MEANS THE SECRETARY OF LABOR. 21
275-
276-17–6B–02. 22
277-
278- THIS SUBTITLE APPLIES ONLY TO CONTRACTORS AWARDED STATE 23
279-CONTRACTS WITH A TOT AL VALUE EQUAL TO OR GREATER THAN $500,000 WITHIN 24
280-THE IMMEDIATELY PREC EDING 12–MONTH PERIOD . 25
281-
282- (A) EXCEPT AS PROVIDED IN SUBSECTI ON (B) OF THIS SECTION , THIS 26
283-SUBTITLE APPLIES ONL Y TO: 27
284-
285- (1) CONTRACTORS AWARDED A STATE CONTRACT THAT I S A COVERED 28
286-LARGE PROJECT ; AND 29
287-
288- (2) COVERED LARGE PROJEC TS LOCATED IN: 30 HOUSE BILL 957 7
289-
290-
291-
292- (I) ANNE ARUNDEL COUNTY; 1
293-
294- (II) BALTIMORE CITY; 2
295-
296- (III) BALTIMORE COUNTY; 3
297-
298- (IV) HOWARD COUNTY; 4
299-
300- (V) MONTGOMERY COUNTY; AND 5
301-
302- (VI) PRINCE GEORGE’S COUNTY. 6
303-
304- (B) THIS SUBTITLE DOES NO T APPLY TO A STATE CONTRACT FOR WH ICH 7
305-THE FEDERAL GOVERNME NT PROVIDES MONEY . 8
306-
307-17–6B–03. 9
308-
309- (A) A CONTRACTOR THAT IS A WARDED A PROCUREMENT CONTRACT FOR A 10
310-COVERED SMALL LARGE PROJECT SHALL ENSURE THAT, FOR THE APPLICABLE 11
311-PROJECT: 12
312-
313- (1) AT LEAST 51% OF THE TOTAL NUMBER OF NEW EMPLOYEES AND 13
314-NEW APPRENTICES ARE STATE RESIDENTS ; AND 14
315-
316- (2), AT LEAST 35% OF APPRENTICESHIP HO URS ARE PERFORMED BY 15
317-STATE RESIDENTS . 16
318-
319- (B) A CONTRACTOR THAT IS A WARDED A PROCUREMENT CONTRACT FOR A 17
320-COVERED LARGE PROJEC T SHALL ENSURE THAT , FOR THE APPLICABLE P ROJECT: 18
321-
322- (1) AT LEAST 20% OF JOURNEY WORKER HO URS ARE PERFORMED BY 19
323-STATE RESIDENTS ; 20
324-
325- (2) AT LEAST 51% OF SKILLED WORKER HO URS ARE PERFORMED BY 21
326-STATE RESIDENTS ; 22
327-
328- (3) AT LEAST 70% OF COMMON LABOR WORK ER HOURS ARE 23
329-PERFORMED BY STATE RESIDENTS ; 24
330-
331- (4) AT LEAST 60% OF APPRENTICESHIP HO URS ARE PERFORMED BY 25
332-STATE RESIDENT S; AND 26
333-
334- (5) AT LEAST 35% OF ALL APPRENTICEABL E HOURS ARE PERFORME D 27
335-BY STATE RESIDENTS . 28 8 HOUSE BILL 957
336-
337-
338-
339- (C) (B) AS A CONDITION OF REC EIVING THE CONTRACT , A CONTRACTOR 1
340-SUBJECT TO THIS SUBT ITLE SHALL PROVIDE T O THE UNIT AND THE DEPARTMENT A 2
341-STATEMENT ATTESTING THAT THE CONTRACTOR SHALL MEE T THE REQUIREMENTS 3
342-OF THIS SECTION FOR THE APPLICABLE PROJE CT. 4
343-
344-17–6B–04. 5
345-
346- (A) THE SECRETARY MAY ADOPT R EGULATIONS AUTHORIZI NG A 6
347-CONTRACTOR , AS AN ALTERNATIVE TO FULFILLING THE REQUI REMENTS OF § 7
348-17–6B–03 OF THIS SUBTITLE, TO ELECT TO MAKE A CONTRIBUTION TO: 8
349-
350- (1) THE STATE APPRENTICESHIP TRAINING FUND ESTABLISHED 9
351-UNDER § 17–602 OF THIS TITLE; OR 10
352-
353- (2) A REGISTERED APPRENT ICESHIP PROGRAM OPERATING AND 11
354-TRAINING APPRENTICES IN THE STATE AS AN ALTERNATIVE TO FULFILLING THE 12
355-REQUIREMENTS OF § 17–6B–03 OF THIS SUBTITLE. 13
356-
357- (B) THE DEPARTMENT IS RESPONS IBLE FOR ENFORCING T HE 14
358-REQUIREMENTS OF THIS SUBTITLE. 15
359-
360- (C) WHEN DETERMINING COMP LIANCE WITH THIS SUB TITLE, APPLICABLE 16
361-PERCENTAGES ESTABLIS HED UNDER § 17–6B–03 OF THIS SUBTITLE SHA LL BE 17
362-CALCULATED BY ROUNDING TO THE NEAREST WHOLE NU MBER. 18
363-
364-17–6B–05. 19
365-
366- A CONTRACTOR THAT EXCE EDS THE REQUIREMENTS OF § 17–6B–03(A) OF 20
367-THIS SUBTITLE ON A C ONTRACT MAY APPLY TH E EXCESS APPRENTICES HIP HOURS 21
368-TO ANOTHER CONTRACT SUBJECT TO THIS SUBT ITLE THAT IS ENTERED INTO BY THE 22
369-CONTRACTOR WITHIN 2 YEARS AFTER THE COMP LETION OF THE FIRST CONTRACT. 23
370-
371-17–6B–06. 24
372-
373- (A) A CONTRACTOR THAT FAIL S TO MEET THE REQUIR EMENTS OF THIS 25
374-SUBTITLE SHALL BE LI ABLE FOR AN AMOUNT E QUAL TO 0.125% OF THE TOTAL 26
375-DIRECT AND INDIRECT LABOR COSTS OF THE CONTRACT FOR EACH PERCENTAGE 27
376-POINT BY WHICH THE C ONTRACTOR FAILS TWICE THE NUMBER OF APPRENTICE 28
377-HOURS AT THE APPRENT ICE RATE BY WHICH TH E CONTRACTOR FAILED TO MEET 29
378-THE APPLICABLE REQUI REMENT. 30
379-
380- (B) PAYMENTS COLLECTED UN DER THIS SECTION SHA LL BE PAID TO: 31
381- HOUSE BILL 957 9
382-
383-
384- (1) THE STATE APPRENTICESHIP TRAINING FUND ESTABLISHED 1
385-UNDER § 17–602 OF THIS TITLE; OR 2
386-
387- (2) A REGISTERED APPRENT ICESHIP PROGRAM OPERATING AND 3
388-TRAINING APPRENTICES IN THE STATE OR AN ORGANIZATION T HAT HAS 4
389-REGISTERED APPRENTIC ESHIP PROGRAMS LOCATED IN THE STATE, FOR THE 5
390-PURPOSE OF SUPPORTIN G THESE PROGRAMS . 6
391-
392- (C) THE SECRETARY SHALL ADOPT REGULATIONS TO ESTAB LISH 7
393-ADMINISTRATIVE PROCE DURES FOR THE COLLEC TION AND DISTRIBUTIO N OF 8
394-PAYMENTS UNDER THIS SECTION. 9
395-
396- SECTION 2. AND BE IT FURTHER ENACTE D, That this Act shall take effect 10
397-October 1, 2025. 11
398-
399-
400-
401-
402-Approved:
403-________________________________________________________________________________
404- Governor.
405-________________________________________________________________________________
406- Speaker of the House of Delegates.
407-________________________________________________________________________________
408- President of the Senate.
341+ SECTION 2. AND BE IT FURTHER ENAC TED, That this Act shall take effect 7
342+October 1, 2025. 8