EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0957*
HOUSE BILL 957
P2 5lr2141
By: Delegate Wilson Delegates Wilson, Alston, Bagnall , Bhandari, Cullison,
Guzzone, Hill, S. Johnson, Kaiser, Kerr, Lopez, Martinez, Pena –Melnyk,
Rosenberg, Ross, Taveras, White Holland, Woods, and Woorman
Introduced and read first time: January 31, 2025
Assigned to: Health and Government Operations and Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 20, 2025
CHAPTER ______
AN ACT concerning 1
State Procurement – Worker Residency Requirements 2
FOR the purpose of requiring certain contractors to ensure that a certain percentage of 3
workers on certain projects are State residents and a certain percentage of work 4
hours on the certain projects are performed by State residents; requiring the 5
Department of Labor to enforce certain worker residency requirements; providing 6
that a person may be debarred from entering into a contract with the State for a 7
certain period of time under certain circumstances; and generally relating to State 8
procurement and worker residency requirements. 9
BY repealing and reenacting, with amendments, 10
Article – State Finance and Procurement 11
Section 16–203 and 17–602 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2024 Supplement) 14
BY adding to 15
Article – State Finance and Procurement 16
Section 17–6B–01 through 17–6B–05 17–6B–06 to be under the new subtitle 17
“Subtitle 6B. Worker Residency Requirements” 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2024 Supplement) 20
2 HOUSE BILL 957
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – State Finance and Procurement 3
16–203. 4
(a) A person may be debarred from entering into a contract with the State if the 5
person, an officer, partner, controlling stockholder or principal of that person, or any other 6
person substantially involved in that person’s contracting activities has: 7
(1) been convicted under the laws of the State, another state or the United 8
States of: 9
(i) a criminal offense incident to obtaining, attempting to obtain, or 10
performing a public or private contract, except as provided in § 16–202 of this subtitle; or 11
(ii) fraud, embezzlement, theft, forgery, falsification or destruction 12
of records, or receiving stolen property; 13
(2) been convicted of a criminal violation of an antitrust statute of the 14
State, another state, or the United States; 15
(3) been convicted of a violation of the Racketeer Influenced and Corrupt 16
Organization Act, or the Mail Fraud Act, for acts in connection with the submission of bids 17
or proposals for a public or private contract; 18
(4) been convicted of a violation of § 14–308 of this article; 19
(5) been convicted of conspiracy to commit any act or omission that would 20
constitute grounds for conviction under any of the laws or statutes described in items (1), 21
(2), (3), or (4) of this subsection; 22
(6) been convicted of a violation of § 7201, § 7203, § 7205, § 7206, or § 7207 23
of the Internal Revenue Code; 24
(7) been convicted of a violation of 18 U.S.C. § 286, § 287, or § 371; 25
(8) been convicted of a violation of Title 13, Subtitle 7 or Subtitle 10 of the 26
Tax – General Article; 27
(9) been found to have willfully or knowingly violated Title 17, Subtitle 2 28
or Title 18 of this article if: 29
(i) 1. the finding was made by a court; and 30
2. the decision of the court became final; or 31 HOUSE BILL 957 3
(ii) 1. the finding was made in a contested case under the 1
Administrative Procedure Act; and 2
2. the finding was not overturned on judicial review; 3
(10) been found to have willfully or knowingly violated Title 3, Subtitle 3, 4
Subtitle 4, or Subtitle 5 or Title 5 of the Labor and Employment Article if: 5
(i) 1. the finding was made by a court; and 6
2. the decision of the court became final; or 7
(ii) 1. the finding was made in a contested case under the 8
Administrative Procedure Act; and 9
2. the finding was not overturned on judicial review; 10
(11) been found civilly liable under an antitrust statute of the State, another 11
state, or the United States for acts or omissions in connection with the submission of bids 12
or proposals for a public or private contract; 13
(12) been found to have willfully or knowingly violated Title 20, Subtitle 6 14
of the State Government Article if: 15
(i) 1. the finding was made by a court; and 16
2. the decision of the court became final; or 17
(ii) 1. the finding was made in a contested case under the 18
Administrative Procedure Act; and 19
2. the finding was not overturned on judicial review; or 20
(13) been found in a final adjudicated decision to have violated the 21
Commercial Nondiscrimination Policy under Title 19 of this article with regard to a public 22
or private contract. 23
(b) A person may be debarred from entering into a contract with the State if, 24
during the course of an official investigation or other proceedings, the person, an officer, 25
partner, controlling stockholder or principal of that person, or any other person 26
substantially involved in that person’s contracting activities has admitted, in writing or 27
under oath, an act or omission that constitutes grounds for conviction or liability under any 28
law or statute described in subsection (a) of this section. 29
(c) A person may be debarred from entering into a contract with the State if the 30
person, an officer, partner, controlling stockholder or principal of that person, or any other 31 4 HOUSE BILL 957
person substantially involved in that person’s contracting activities has been debarred from 1
federal contracts under: 2
(1) the Federal Acquisition Regulations, as provided in 48 C.F.R. Chapter 3
1; or 4
(2) federal Executive Order 11246, as amended due to discriminatory 5
hiring practices in the State. 6
(d) A person may be debarred from entering into a contract with the State: 7
(1) if the Board finds that the person was established or operates in a 8
manner designed to evade the application of this title or to defeat the purpose of this title; 9
(2) if the person is a successor, assignee, subsidiary, or affiliate of a person 10
who is debarred or suspended; 11
(3) except as provided under item (4) of this subsection, for one of the 12
following violations of a contract provision if the Board believes it to be serious enough to 13
justify debarment: 14
(i) the deliberate failure, without good cause, to perform in 15
accordance with the specifications, or within the time limit, provided in a contract; or 16
(ii) within the preceding 5 years, the failure to perform or 17
unsatisfactory performance in accordance with the terms of one or more contracts, unless 18
the failure to perform or unsatisfactory performance was caused by acts beyond the control 19
of the person; 20
(4) for a period not exceeding 3 years if the person persistently fails to meet 21
contract goals in the absence of mitigating factors under the criteria established under § 22
14–305(c)(2) of this article; 23
(5) FOR A PERIOD NOT EXC EEDING 5 YEARS IF THE PERSON IS FOUND 24
TO HAVE VIOLATED THE REQUIREMENTS OF TITLE 17, SUBTITLE 6B § 17–6B–03 OF 25
THIS ARTICLE TWICE FIVE TIMES IN A 10–YEAR 5–YEAR PERIOD; 26
[(5)] (6) if the person is a competing contractor, or any officer, employee, 27
representative, agent, or consultant of any competing contractor who violates § 13–211 of 28
this article; or 29
[(6)] (7) for any other cause that the Board determines to be so serious as 30
to affect the integrity of the procurement process. 31
17–602. 32
(a) There is a State Apprenticeship Training Fund in the Department. 33 HOUSE BILL 957 5
(b) The Fund consists of: 1
(1) payments made by contractors or subcontractors in accordance with 2
this subtitle and Subtitle 6A of this title; and 3
(2) penalties collected as a result of violations of this subtitle and [Subtitle] 4
SUBTITLES 6A AND 6B of this title. 5
(c) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this 6
article. 7
(d) The State Treasurer shall hold the Fund separately, and the Comptroller shall 8
account for the Fund. 9
(e) The Secretary shall use money in the Fund to: 10
(1) promote preapprenticeship programs and other workforce development 11
programs in the State’s public secondary schools and community colleges that assist 12
students in preparing for and entering apprenticeship training programs; and 13
(2) pay any costs associated with carrying out the provisions of this subtitle 14
and [Subtitle] SUBTITLES 6A AND 6B of this title. 15
SUBTITLE 6B. WORKER RESIDENCY REQUIREMENTS . 16
17–6B–01. 17
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 18
INDICATED. 19
(B) “APPRENTICEABLE HOUR ” MEANS 25% OF THE TOTAL OF JOUR NEY 20
HOURS PLUS APPRENTIC ESHIP HOURS. 21
(C) (B) “APPRENTICESHIP HOUR ” MEANS 1 HOUR OF TIME SPENT I N AN 22
APPRENTICESHIP PROGR AM AND MAY INCLUDE O BSERVATION, PERFORMING WORK , 23
OR WORK–RELATED DISCUSSION . 24
(D) (C) “COVERED LARGE PROJECT ” MEANS A STATE–FUNDED PROJECT 25
PUBLIC WORK CONTRACT SUBJECT TO SUBTITLE 2 OF THIS TITLE THAT IS VALUED 26
AT $5,000,000 OR MORE. 27
(E) “COVERED SMALL PROJECT ” MEANS A STATE–FUNDED PROJECT THAT 28
IS VALUED AT EQUAL T O OR GREATER THAN $300,000 BUT LESS THAN $5,000,000. 29
6 HOUSE BILL 957
(F) (D) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF 1
LABOR. 2
(G) (E) “NEW APPRENTICE ” MEANS AN APPRENTICE : 3
(1) EMPLOYED TO LEARN A SKILLED TRADE THROUG H ENROLLED IN 4
A REGISTERED APPRENTICESHIP PROGR AM; 5
(2) WHOSE START DATE OF EMPLOYMENT WITH A CO MPANY IS AFTER 6
THE DATE ON WHICH TH E STATE CONTRACT IS AWA RDED BUT BEFORE OR D URING 7
THE PERFORMANCE OF T HE STATE CONTRACT ; AND 8
(3) WHO IS EITHER NEW TO THE COMPANY OR HAS B EEN SEPARATED 9
FROM THE COMPANY FOR AT LEAST 60 DAYS PRIOR TO THE DA TE OF HIRE. 10
(H) “NEW EMPLOYEE” MEANS AN INDIVIDUAL : 11
(1) WHOSE START DATE OF EMPLOYMENT WITH A CO MPANY IS AFTER 12
THE DATE ON WHICH TH E STATE CONTRACT IS AWA RDED BUT BEFORE OR D URING 13
THE PERFORMANCE OF T HE STATE CONTRACT ; AND 14
(2) WHO IS EITHER NEW TO THE COMPANY OR WHO H AS BEEN 15
SEPARATED FROM THE C OMPANY FOR AT LEAST 60 DAYS PRIOR TO THE DA TE OF 16
HIRE. 17
(E) “REGISTERED APPRENTICE SHIP PROGRAM ” MEANS AN 18
APPRENTICESHIP PROGR AM REGISTERED WITH T HE DIVISION OF WORKFORCE 19
DEVELOPMENT AND ADULT LEARNING WITHIN THE DEPARTMENT . 20
(I) (F) “SECRETARY” MEANS THE SECRETARY OF LABOR. 21
17–6B–02. 22
THIS SUBTITLE APPLIES ONLY TO CONTRACTORS AWARDED STATE 23
CONTRACTS WITH A TOT AL VALUE EQUAL TO OR GREATER THAN $500,000 WITHIN 24
THE IMMEDIATELY PREC EDING 12–MONTH PERIOD . 25
(A) EXCEPT AS PROVIDED IN SUBSECTI ON (B) OF THIS SECTION , THIS 26
SUBTITLE APPLIES ONL Y TO: 27
(1) CONTRACTORS AWARDED A STATE CONTRACT THAT I S A COVERED 28
LARGE PROJECT ; AND 29
(2) COVERED LARGE PROJEC TS LOCATED IN: 30 HOUSE BILL 957 7
(I) ANNE ARUNDEL COUNTY; 1
(II) BALTIMORE CITY; 2
(III) BALTIMORE COUNTY; 3
(IV) HOWARD COUNTY; 4
(V) MONTGOMERY COUNTY; AND 5
(VI) PRINCE GEORGE’S COUNTY. 6
(B) THIS SUBTITLE DOES NO T APPLY TO A STATE CONTRACT FOR WH ICH 7
THE FEDERAL GOVERNME NT PROVIDES MONEY . 8
17–6B–03. 9
(A) A CONTRACTOR THAT IS A WARDED A PROCUREMENT CONTRACT FOR A 10
COVERED SMALL LARGE PROJECT SHALL ENSURE THAT, FOR THE APPLICABLE 11
PROJECT: 12
(1) AT LEAST 51% OF THE TOTAL NUMBER OF NEW EMPLOYEES AND 13
NEW APPRENTICES ARE STATE RESIDENTS ; AND 14
(2), AT LEAST 35% OF APPRENTICESHIP HO URS ARE PERFORMED BY 15
STATE RESIDENTS . 16
(B) A CONTRACTOR THAT IS A WARDED A PROCUREMENT CONTRACT FOR A 17
COVERED LARGE PROJEC T SHALL ENSURE THAT , FOR THE APPLICABLE P ROJECT: 18
(1) AT LEAST 20% OF JOURNEY WORKER HO URS ARE PERFORMED BY 19
STATE RESIDENTS ; 20
(2) AT LEAST 51% OF SKILLED WORKER HO URS ARE PERFORMED BY 21
STATE RESIDENTS ; 22
(3) AT LEAST 70% OF COMMON LABOR WORK ER HOURS ARE 23
PERFORMED BY STATE RESIDENTS ; 24
(4) AT LEAST 60% OF APPRENTICESHIP HO URS ARE PERFORMED BY 25
STATE RESIDENT S; AND 26
(5) AT LEAST 35% OF ALL APPRENTICEABL E HOURS ARE PERFORME D 27
BY STATE RESIDENTS . 28 8 HOUSE BILL 957
(C) (B) AS A CONDITION OF REC EIVING THE CONTRACT , A CONTRACTOR 1
SUBJECT TO THIS SUBT ITLE SHALL PROVIDE T O THE UNIT AND THE DEPARTMENT A 2
STATEMENT ATTESTING THAT THE CONTRACTOR SHALL MEE T THE REQUIREMENTS 3
OF THIS SECTION FOR THE APPLICABLE PROJE CT. 4
17–6B–04. 5
(A) THE SECRETARY MAY ADOPT R EGULATIONS AUTHORIZI NG A 6
CONTRACTOR , AS AN ALTERNATIVE TO FULFILLING THE REQUI REMENTS OF § 7
17–6B–03 OF THIS SUBTITLE, TO ELECT TO MAKE A CONTRIBUTION TO: 8
(1) THE STATE APPRENTICESHIP TRAINING FUND ESTABLISHED 9
UNDER § 17–602 OF THIS TITLE; OR 10
(2) A REGISTERED APPRENT ICESHIP PROGRAM OPERATING AND 11
TRAINING APPRENTICES IN THE STATE AS AN ALTERNATIVE TO FULFILLING THE 12
REQUIREMENTS OF § 17–6B–03 OF THIS SUBTITLE. 13
(B) THE DEPARTMENT IS RESPONS IBLE FOR ENFORCING T HE 14
REQUIREMENTS OF THIS SUBTITLE. 15
(C) WHEN DETERMINING COMP LIANCE WITH THIS SUB TITLE, APPLICABLE 16
PERCENTAGES ESTABLIS HED UNDER § 17–6B–03 OF THIS SUBTITLE SHA LL BE 17
CALCULATED BY ROUNDING TO THE NEAREST WHOLE NU MBER. 18
17–6B–05. 19
A CONTRACTOR THAT EXCE EDS THE REQUIREMENTS OF § 17–6B–03(A) OF 20
THIS SUBTITLE ON A C ONTRACT MAY APPLY TH E EXCESS APPRENTICES HIP HOURS 21
TO ANOTHER CONTRACT SUBJECT TO THIS SUBT ITLE THAT IS ENTERED INTO BY THE 22
CONTRACTOR WITHIN 2 YEARS AFTER THE COMP LETION OF THE FIRST CONTRACT. 23
17–6B–06. 24
(A) A CONTRACTOR THAT FAIL S TO MEET THE REQUIR EMENTS OF THIS 25
SUBTITLE SHALL BE LI ABLE FOR AN AMOUNT E QUAL TO 0.125% OF THE TOTAL 26
DIRECT AND INDIRECT LABOR COSTS OF THE CONTRACT FOR EACH PERCENTAGE 27
POINT BY WHICH THE C ONTRACTOR FAILS TWICE THE NUMBER OF APPRENTICE 28
HOURS AT THE APPRENT ICE RATE BY WHICH TH E CONTRACTOR FAILED TO MEET 29
THE APPLICABLE REQUI REMENT. 30
(B) PAYMENTS COLLECTED UN DER THIS SECTION SHA LL BE PAID TO: 31
HOUSE BILL 957 9
(1) THE STATE APPRENTICESHIP TRAINING FUND ESTABLISHED 1
UNDER § 17–602 OF THIS TITLE; OR 2
(2) A REGISTERED APPRENT ICESHIP PROGRAM OPERATING AND 3
TRAINING APPRENTICES IN THE STATE OR AN ORGANIZATION T HAT HAS 4
REGISTERED APPRENTIC ESHIP PROGRAMS LOCATED IN THE STATE, FOR THE 5
PURPOSE OF SUPPORTIN G THESE PROGRAMS . 6
(C) THE SECRETARY SHALL ADOPT REGULATIONS TO ESTAB LISH 7
ADMINISTRATIVE PROCE DURES FOR THE COLLEC TION AND DISTRIBUTIO N OF 8
PAYMENTS UNDER THIS SECTION. 9
SECTION 2. AND BE IT FURTHER ENACTE D, That this Act shall take effect 10
October 1, 2025. 11
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.