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. *sb0431* SENATE BILL 431 K3 5lr0367 CF HB 501 By: The President (By Request – Administration) and Senators Augustine, Brooks, Carozza, Charles, Gile, Henson, Hettleman, James, King, M. Washington, and West Introduced and read first time: January 20, 2025 Assigned to: Finance Committee Report: Favorable with amendments Senate action: Adopted Read second time: February 25, 2025 CHAPTER ______ 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 Pay Per Apprentice Program within the Maryland 11 Department of Labor; establishing the Maryland Apprenticeship Incentive Pay Per 12 Apprentice Program Fund as a special, nonlapsing fund; requiring that the interest 13 earnings of the Fund remain in the Fund; establishing the Registered 14 Apprenticeship Development Advisory Board in the Department; applying certain 15 provisions of this Act retroactively; and generally relating to registered 16 apprenticeships. 17 BY adding to 18 Article – Business Occupations and Professions 19 Section 12–305.3 20 Annotated Code of Maryland 21 (2018 Replacement Volume and 2024 Supplement) 22 2 SENATE BILL 431 BY adding to 1 Article – Business Regulation 2 Section 2–104.1 3 Annotated Code of Maryland 4 (2024 Replacement Volume) 5 BY repealing and reenacting, with amendments, 6 Article – Labor and Employment 7 Section 11–405(a) and (d) 8 Annotated Code of Maryland 9 (2016 Replacement Volume and 2024 Supplement) 10 BY repealing 11 Article – Labor and Employment 12 Section 11–409 13 Annotated Code of Maryland 14 (2016 Replacement Volume and 2024 Supplement) 15 BY adding to 16 Article – Labor and Employment 17 Section 11–409, 11–410, 11–411, and 11–607 18 Annotated Code of Maryland 19 (2016 Replacement Volume and 2024 Supplement) 20 BY repealing and reenacting, without amendments, 21 Article – State Finance and Procurement 22 Section 6–226(a)(2)(i) 23 Annotated Code of Maryland 24 (2021 Replacement Volume and 2024 Supplement) 25 BY repealing and reenacting, with amendments, 26 Article – State Finance and Procurement 27 Section 6–226(a)(2)(ii)204. and 205. 28 Annotated Code of Maryland 29 (2021 Replacement Volume and 2024 Supplement) 30 BY adding to 31 Article – State Finance and Procurement 32 Section 6–226(a)(2)(ii)206. 33 Annotated Code of Maryland 34 (2021 Replacement Volume and 2024 Supplement) 35 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY O F MARYLAND, 36 That the Laws of Maryland read as follows: 37 Article – Business Occupations and Professions 38 SENATE BILL 431 3 12–305.3. 1 THE BOARD SHALL WAIVE THE EXAMINATION REQUIREM ENTS FOR A 2 JOURNEY PLUMBER LICE NSE FOR AN INDIVIDUA L WHO: 3 (1) HAS SUCCESSFULLY COM PLETED A PLUMBING APPRENTICES HIP 4 PROGRAM APPROVED BY THE DIVISION OF WORKFORCE DEVELOPMENT AND 5 ADULT LEARNING; AND 6 (2) PAYS THE APPROPRIATE FEE REQUIRED UNDER § 12–306 OF THIS 7 SUBTITLE. 8 Article – Business Regulation 9 2–104.1. 10 (A) IN THIS SECTION , “LICENSE” MEANS A LICENSE , CERTIFICATE, 11 REGISTRATION , PERMIT, OR OTHER CREDENTIAL THAT IS ISSUED BY A UNIT OF THE 12 DIVISION OF OCCUPATIONAL AND PROFESSIONAL LICENSING IN THE 13 DEPARTMENT . 14 (B) UNLESS REQUIRED BY FE DERAL LAW, THE SECRETARY MAY WAIVE T HE 15 EXAMINATION REQ UIREMENT FOR A LICEN SE FOR AN INDIVIDUAL WHO 16 SUCCESSFULLY COMPLET ES A REGISTERED APPR ENTICESHIP PROGRAM A PPROVED 17 BY THE DIVISION OF WORKFORCE DEVELOPMENT AND ADULT LEARNING IF THE 18 MARYLAND APPRENTICESHIP AND TRAINING COUNCIL HAS FOUND THA T THE 19 APPROVED REG ISTERED APPRENTICESH IP PROGRAM MEETS IND USTRY STANDARDS 20 AND LICENSURE REQUIR EMENTS. 21 (C) THIS SECTION MAY NOT BE CONSTRUED TO ELIM INATE EDUCATION OR 22 EXPERIENCE REQUIREME NTS ESTABLISHED UNDE R STATE LAW FOR LICENSU RE. 23 Article – Labor and Employment 24 11–405. 25 (a) The [duties of the] Council shall [be to]: 26 (1) advise the Division of Workforce Development and Adult Learning on 27 the apprenticeability of occupations in the State of Maryland; 28 (2) encourage the establishment of local apprenticeship committees where 29 the committees are needed; 30 4 SENATE BILL 431 (3) make recommendations regarding the formulation and adoption of 1 standards of apprenticeship which safeguard the welfare of apprentices, being guided, but 2 not controlled, by the standards of apprenticeship recommended by the federal committee 3 on apprenticeship; 4 (4) REQUIRE A MINIMUM RA TIO OF ONE JOURNEYWO RKER 5 REGULARLY EMPLOYED T O ONE APPRENTICE , CONSISTENT WITH PROP ER 6 SUPERVISION, TRAINING, AND CONTINUITY OF EM PLOYMENT AND APPLICA BLE 7 PROVISIONS IN COLLEC TIVE BARGAINING AGREEMENT S; 8 (5) AUTHORIZE AT THE TIME OF OR SU BSEQUENT TO REGISTRA TION, 9 RECOMMEND A DEVIATION FROM THE MINIMUM RATIO REQUIR EMENT FOR ALL 10 OCCUPATIONS THAT ARE DEFINED BY THE SECRETARY AS NONHAZAR DOUS TO 11 WORKERS AND MEMBERS OF THE PUBLIC; 12 (6) CONSIDER FORMAL WRIT TEN DEVIATION REQUES TS FROM ALL 13 OTHER OCCUPATIONS ; 14 [(4)] (7) make recommendations regarding the formulation of policies for 15 the overall apprenticeship program; 16 [(5)] (8) make recommendations regarding the registration of standards 17 of apprenticeship of the groups or employers that elect to conform with the provisions of 18 this subtitle; 19 [(6)] (9) make recommendations regarding the registration of 20 apprenticeship agreements which conform to the standards of apprenticeship adopted by 21 the Division of Workforce Development and Adult Learning; 22 [(7)] (10) recommend the issuance of certificates of completion of 23 apprenticeship to apprentices who are registered with the Division of Workforce 24 Development and Adult Learning when the Division determines that such apprentices have 25 completed successfully their apprenticeship; 26 [(8)] (11) seek all information pertaining to apprenticeship training in the 27 State; 28 [(9)] (12) prescribe its rules of procedure and duties of the Chairman, 29 Director, and Secretary subject to the provisions of this law; and 30 [(10)] (13) perform other advisory functions as the Governor or the 31 Secretary may direct or as may come within the scope of the Council. 32 (d) (1) On or before [June 30 of] DECEMBER 31 each year, the Division of 33 Workforce Development and Adult Learning shall report to the General Assembly, in 34 SENATE BILL 431 5 accordance with § 2–1257 of the State Government Article, the following information for 1 the immediately preceding calendar year 5 CALENDAR YEARS : 2 (i) the completion and enrollment rates of each apprenticeship 3 program registered in the State; [and] 4 (ii) the age, race, sex or gender identity, county of residence, and 5 program enrollment of each individual enrolled in a registered apprenticeship program; 6 (III) THE NUMBER OF : 7 1. QUALIFIED INTERMEDIA RIES REGISTERED IN T HE 8 REGISTERED APPRENTICESHIP QUALIFIED INTERMEDIARY PROGRAM; 9 2. APPROVED GRANTS AND PROCUREMENTS USED BY 10 THE SECRETARY UNDER § 11–410(C)(3) OF THIS SUBTITLE; AND 11 3. NEWLY REGISTERED APP RENTICES AND NEWLY 12 REGISTERED APPRENTIC ESHIP PROGRAMS RESUL TING FROM THE REGISTERED 13 APPRENTICESHIP QUALIFIED INTERMEDIARY PROGRAM; AND 14 (IV) THE NUMBER AND VALUE OF THE INCENTIVES AW ARDED 15 UNDER THE MARYLAND APPRENTICESHIP INCENTIVE PAY PER APPRENTICE 16 PROGRAM; 17 (V) WORKER OUTCOMES FOR EACH REGISTERED 18 APPRENTICESHIP PROGR AM, INCLUDING: 19 1. JOB PLACEMENT ; 20 2. POST–APPRENTICESHIP WAGE RATES; AND 21 3. RETENTION AND ADVANC EMENT DATA; AND 22 (VI) ANY CORRECTIVE ACTIO N, INCLUDING REQUIRING 23 REIMBURSEMENT OF INC ENTIVES, FOR FAILURE TO MEET THE REQUIREMENTS OF 24 THE MARYLAND PAY PER APPRENTICE PROGRAM ESTABLISHED U NDER § 11–607 25 OF THIS TITLE. 26 (2) The Division of Workforce Development and Adult Learning shall[: 27 (i) sort the information required under paragraph (1) of this 28 subsection by apprenticeship program; and 29 6 SENATE BILL 431 (ii)] publish the report required under paragraph (1) of this 1 subsection on the Division of Workforce Development and Adult Learning’s Web site. 2 [11–409. 3 (a) In this section, “Committee” means the Youth Apprenticeship Advisory 4 Committee. 5 (b) There is a Youth Apprenticeship Advisory Committee in the Division of 6 Workforce Development and Adult Learning. 7 (c) The Committee consists of the following members: 8 (1) the Secretary, or the Secretary’s designee; 9 (2) the State Superintendent of Schools, or the State Superintendent’s 10 designee; 11 (3) the Secretary of Commerce, or the Secretary’s designee; 12 (4) the Secretary of Juvenile Services, or the Secretary’s designee; 13 (5) the Assistant Secretary of the Division of Workforce Development and 14 Adult Learning, or the Assistant Secretary’s designee; and 15 (6) the following members, appointed by the Governor: 16 (i) two representatives of the Council; 17 (ii) one representative of an employee organization; 18 (iii) one employer whose business has a nonjoint apprenticeship 19 program; 20 (iv) one representative from a community college; 21 (v) one individual who holds a doctoral degree and specializes in 22 labor economics with expertise in national and international apprenticeship systems; 23 (vi) one representative of a nonprofit organization who is involved 24 with employee training and workforce development; 25 (vii) one representative of the Maryland Chamber of Commerce; and 26 (viii) two representatives from regional business councils that serve 27 different regions of the State. 28 SENATE BILL 431 7 (d) The Committee shall: 1 (1) evaluate the effectiveness of existing high school youth apprenticeship 2 programs in the State, other states, and other countries based on a systematic review of 3 relevant data; 4 (2) review and identify: 5 (i) ways to implement high school youth apprenticeship programs 6 in the State; and 7 (ii) means through which employers and organizations can obtain 8 grants, tax credits, and other subsidies to support establishment and operation of high 9 school youth apprenticeship programs; and 10 (3) set targets for the number of apprenticeship opportunities for youth 11 that the State should reach over the next 3 years. 12 (e) On or before December 1 of each year, the Committee shall submit a 13 report, in accordance with § 2–1257 of the State Government Article, to the General 14 Assembly regarding any recommended legislation to promote high school youth 15 apprenticeship programs in the State.] 16 11–409. 17 (A) IN THIS SECTION , “OFFICE” MEANS THE MARYLAND OFFICE OF 18 REGISTERED APPRENTICESHIP DEVELOPMENT . 19 (B) THERE IS A MARYLAND OFFICE OF REGISTERED APPRENTICESHIP 20 DEVELOPMENT WITHIN TH E MARYLAND APPRENTICESHIP AND TRAINING 21 PROGRAM OF THE DIVISION OF WORKFORCE DEVELOPMENT AND ADULT 22 LEARNING. 23 (C) THE PURPOSE OF THE OFFICE IS TO MARKET AND ADVANCE T HE 24 REGISTERED APPRENTIC ESHIP SYSTEM THROUGH OUT THE STATE SCALE 25 REGISTERED APPRENTIC ESHIPS ACROSS INDUST RIES AND OCCUPATIONS TO MEET 26 THE NEEDS OF THE STATE’S ECONOMY. 27 (D) THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL AN 28 APPROPRIATION TO THE MARYLAND APPRENTICESHIP AND TRAINING PROGRAM 29 TO COVER ADMINISTRAT IVE COSTS FOR THE OFFICE. 30 11–410. 31 8 SENATE BILL 431 (A) (1) IN THIS SECTION THE FOLLOWIN G WORDS HAVE THE MEA NINGS 1 INDICATED. 2 (2) “DIRECTOR” MEANS THE DIRECTOR OF THE MARYLAND 3 APPRENTICESHIP AND TRAINING PROGRAM. 4 (3) “PROGRAM” MEANS THE REGISTERED APPRENTICESHIP 5 QUALIFIED INTERMEDIARY PROGRAM. 6 (4) “QUALIFIED INT ERMEDIARY” MEANS AN ENTITY THAT 7 DEMONSTRATES EXPERTI SE IN: 8 (I) CONNECTING SPONSORS , EMPLOYERS , OR POTENTIAL 9 APPRENTICESHIP PROGR AM PARTICIPANTS WITH REGISTERED APPRENTIC ESHIP 10 PROGRAMS; 11 (II) CONVENING STAKEHOLDE RS TO DEVELOP REGIST ERED 12 APPRENTICESHI P PROGRAMS ; OR 13 (III) OTHER KEY FUNCTIONS AS DETERMINED APPROP RIATE BY 14 THE DEPARTMENT TO SUCCESS FULLY BUILD AND SCAL E REGISTERED 15 APPRENTICESHIP PROGR AMS THAT ACHIEVE DES IRED WORKFORCE OUTCO MES. 16 (B) THERE IS A REGISTERED APPRENTICESHIP QUALIFIED INTERMEDIARY 17 PROGRAM WITHIN THE MARYLAND APPRENTICESHIP AND TRAINING PROGRAM OF 18 THE DIVISION OF WORKFORCE DEVELOPMENT AND ADULT LEARNING. 19 (C) (1) THE PROGRAM SHALL : 20 (I) REPORT TO THE DIRECTOR; 21 (II) INCREASE AWARENESS O F REGISTERED APPRENT ICESHIP 22 PROGRAMS THROUGH IND USTRY OUTREACH ; 23 (III) CONNECT EMPLOYERS AN D LABOR ORGANIZATION S WITH 24 WORKFORCE AND EDUCAT ION PARTNERS ; AND 25 (IV) PROVIDE TECHNICAL AS SISTANCE TO LAUNCH A ND EXPAND 26 REGISTERED APPRENTIC ESHIP PROGRAMS WITH A FOCUS ON NONTRADIT IONAL 27 SECTORS; AND 28 (V) INCLUDE A PROCESS FO R MONITORING AND EVA LUATING 29 THE PROGRAM. 30 SENATE BILL 431 9 (2) THE DIRECTOR SHALL , IN COLLABORATION CONSULTATION WITH 1 THE SECRETARY, THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD, THE 2 REGISTERED APPRENTICESHIP DEVELOPMENT ADVISORY BOARD, AND THE 3 DEPARTMENT OF COMMERCE, DEVELOP THE PROGRAM. 4 (3) THE SECRETARY MAY USE GRA NTS OR PROCUREMENT , AMONG 5 OTHER STRATEGIES , TO ADVANCE AND ACCOM PLISH THE GOALS OF T HE PROGRAM. 6 11–411. 7 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEAN INGS 8 INDICATED. 9 (2) “BOARD” MEANS THE REGISTERED APPRENTICESHIP 10 DEVELOPMENT ADVISORY BOARD. 11 (3) “OFFICE” MEANS THE OFFICE OF REGISTERED APPRENTICESHIP 12 DEVELOPMENT ESTABLISH ED UNDER § 11–409 OF THIS SUBTITLE. 13 (B) (1) THERE IS A REGISTERED APPRENTICE SHIP DEVELOPMENT 14 ADVISORY BOARD IN THE DEPARTMENT . 15 (2) THE PURPOSE OF THE BOARD IS TO ADVISE TH E OFFICE ON THE 16 STRATEGY TO ACHIEVE ITS MISSION OF EXPAN DING REGISTERED APPR ENTICESHIP 17 OPPORTUNITIES IN THE STATE. 18 (C) THE BOARD SHALL CONSIST O F: 19 (1) ONE MEMBER OF THE SENATE OF MARYLAND, APPOINTED BY THE 20 PRESIDENT OF THE SENATE; 21 (2) ONE MEMBER OF THE HOUSE OF DELEGATES, APPOINTED BY THE 22 SPEAKER OF THE HOUSE; 23 (3) TWO MEMBERS DESIGNAT ED BY THE PRESIDENT OF THE 24 MARYLAND STATE AND DC AFL–CIO; 25 (4) TWO MEMBERS REPRESEN TING EMPLOYERS ENGAG ED IN 26 REGISTERED APPRENTIC ESHIPS, APPOINTED BY THE GOVERNOR; AND 27 (5) ONE MEMBER TO SERVE AS CHAIR OF THE BOARD, APPOINTED BY 28 THE GOVERNOR. 29 (D) A MEMBER OF THE BOARD: 30 10 SENATE BILL 431 (1) MAY NOT RECEIVE COMP ENSATION AS A MEMB ER OF THE BOARD; 1 BUT 2 (2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 3 STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 4 (E) (1) THE TERM OF A MEMBER IS 4 YEARS. 5 (2) THE TERMS OF MEMBERS ARE STAGGERED AS REQ UIRED BY THE 6 TERMS PROVIDED FOR MEMB ERS OF THE BOARD ON OCTOBER 1, 2025. 7 (3) A VACANCY SHALL BE FIL LED FOR AN UNEXPIRED TERM IN THE 8 SAME MANNER AS THE O RIGINAL APPOINTMENT . 9 (4) AT THE END OF THE TERM, A MEMBER CONTINUES T O SERVE 10 UNTIL A SUCCESSOR IS APPOINTED AND QU ALIFIES. 11 (5) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 12 ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 13 QUALIFIES. 14 (F) THE BOARD SHALL: 15 (1) CONSULT WITH THE OFFICE REGULARLY ABOU T DEVELOPING 16 STRATEGY AND REVIEWI NG OUTCOMES FOR APPRENT ICESHIPS; 17 (2) PROVIDE ADVICE ON PR OGRAMS OPERATED BY T HE OFFICE; AND 18 (3) ON OR BEFORE DECEMBER 1 EACH YEAR, BEGINNING IN 2025, 19 EVALUATE THE OFFICE AND REPORT THE RESULTS OF THE EVALU ATION TO THE 20 GENERAL ASSEMBLY, IN ACCORDANCE WI TH § 2–1257 OF THE STATE GOVERNMENT 21 ARTICLE. 22 11–607. 23 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 24 INDICATED. 25 (2) “EMPLOYER” MEANS AN INDIVIDUAL OR ORGANIZATION LOCA TED 26 OR OPERATING IN THE STATE THAT EMPLOYS A REGISTERED APPRENTIC E. 27 (3) “FUND” MEANS THE MARYLAND APPRENTICESHIP INCENTIVE 28 PAY PER APPRENTICE PROGRAM FUND. 29 SENATE BILL 431 11 (4) “PROGRAM” MEANS THE MARYLAND APPRENTICESHIP 1 INCENTIVE PAY PER APPRENTICE PROGRAM. 2 (5) “REGISTERED APPRENTICE ” MEANS AN EMPLOYEE WH O 3 PARTICIPATES IN A REGISTERED APPRENTIC ESHIP PROGRAM . 4 (6) “REGISTERED APPRENTICE SHIP” MEANS AN APPRENTICES HIP 5 PROGRAM THAT IS REGI STERED WITH , AND APPROVED BY , THE DIVISION OF 6 WORKFORCE DEVELOPMENT AND ADULT LEARNING. 7 (7) “SPONSOR” MEANS AN INDIVIDUAL , ASSOCIATION, COMMITTEE, 8 ORGANIZATION , INTERMEDIARY , OR EMPLOYER IN WHOSE NAME OR TITLE THE 9 REGISTERED APPRENTIC ESHIP PROGRAM IS OR IS TO BE REGISTERED . 10 (B) THERE IS A MARYLAND APPRENTICESHIP INCENTIVE PAY PER 11 APPRENTICE PROGRAM IN THE DEPARTMENT . 12 (C) THE PURPOSES OF T HE PROGRAM ARE TO : 13 (1) DEVELOP A WELL –TRAINED, PRODUCTIVE WORKFORCE THAT 14 MEETS THE NEEDS OF T HE STATE’S ECONOMY; AND 15 (2) HELP EMPLOYERS AND S PONSORS OFFSET COSTS , INCLUDING 16 RECRUITMENT , EDUCATION, TRAINING, AND ACCOMMODATIONS F OR DISABILITIES 17 OR MATERIALS, ASSOCIATED WITH HIRI NG NEWLY REGISTERED APPRENTICES . 18 (D) THE DEPARTMENT SHALL ADMI NISTER THE PROGRAM AND ESTABLISH : 19 (1) REQUIREMENTS FOR INC ENTIVE APPLICATIONS ; 20 (2) A PROCESS FOR REVIEW ING INCENTIVE APPLIC ATIONS AND 21 AWARDING INCENTIVES TO ELIGIBLE EMPLOYER S OR SPONSORS; 22 (3) THE MAXIMUM AWARD EL IGIBILITY PER NEWLY REGISTERED 23 APPRENTICE SUBJECT T O FUND AVAILABILITY ; 24 (4) THE MAXIMUM AMOUNT O F INCENTIVES THAT AN ELIGIBLE 25 EMPLOYER OR SPONSOR MAY RECEIVE EACH YEA R; AND 26 (5) A PROCESS FOR MONITO RING AND EVALUATING OUTCOMES, 27 ASSESSING COMPLIANCE , AND TAKING CORRECTIV E ACTION, INCLUDING 28 REQUIRING REIMBURSEM ENT OF INCENTIVES , SHOULD AN EMPLOYER O R SPONSOR 29 FAIL TO MEET THE REQUIREMENTS OF THE PROGRAM. 30 12 SENATE BILL 431 (E) (1) THERE IS A MARYLAND APPRENTICESHIP INCENTIVE PAY PER 1 APPRENTICE PROGRAM FUND. 2 (2) THE PURPOSE OF THE FUND IS TO PROVIDE IN CENTIVES UNDER 3 THE PROGRAM. 4 (3) THE SECRETARY SHALL ADMIN ISTER THE FUND. 5 (4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 6 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 7 (II) THE STATE TREASURER SHALL HOLD THE FUND 8 SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 9 (5) THE FUND CONSISTS OF : 10 (I) MONEY APPROPRIATED T O THE FUND UNDER PARAGRAPH 11 (9) OF THIS SUBSECTION ; 12 (II) MONEY COLLECTED DUE TO NONCOMPLIANCE WIT H 13 PROGRAM REQUIREMENTS ; 14 (III) INTEREST EARNINGS OF THE FUND; AND 15 (IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 16 FOR THE BENEFIT OF T HE FUND. 17 (6) THE FUND MAY BE USED ONLY FOR PROVIDING INCENT IVES 18 UNDER THE PROGRAM AND ADMINISTR ATIVE EXPENSES RELAT ED TO THE 19 PROGRAM. 20 (7) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 21 FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE INVESTE D. 22 (II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 23 CREDITED TO THE FUND. 24 (8) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN 25 ACCORDANCE WITH THE STATE BUDGET . 26 (9) FOR EACH OF FISCAL YE ARS 2027 THROUGH 2030, THE 27 GOVERNOR SHALL MAY INCLUDE IN THE ANNUA L BUDGET BILL AN APP ROPRIATION 28 OF AT LEAST $5,000,000 FOR THE FUND. 29 SENATE BILL 431 13 (F) (1) SUBJECT TO THIS SUBSE CTION, AN EMPLOYER OR A SPO NSOR 1 MAY APPLY FOR AND BE AWARDED AN INCENTIVE UNDER THE PROGRAM. 2 (2) AN EMPLOYER OR A SPON SOR MAY APPL Y FOR ONLY ONE GRANT 3 FOR A NEWLY REGISTER ED APPRENTICE WHO : 4 (I) HAS BEEN EMPLOYED FO R AT LEAST 7 MONTHS; AND 5 (II) IS WITHIN THE INITIA L YEAR OF EMPLOYMENT WITH THE 6 APPLICANT. 7 (3) AN EMPLOYER OR A SPON SOR MAY BE AWARDED O NLY ONE GRANT 8 PER EACH NEWLY REGISTERED APPR ENTICE PER YEAR . 9 (4) AN EMPLOYER OR SPONSO R AWARDED A GRANT UN DER THE 10 PROGRAM SHALL ATTEST TO ITS INTENT TO RET AIN THE APPRENTICE AFTER 11 COMPLETION OF THE RE GISTERED APPRENTICES HIP AND ITS DEVELOPM ENT OF A 12 PLAN TO ACHIEVE THE RETENTION OF THE APP RENTICE AN APPRENTICE THROUG H 13 THE DURATION OF THE FULL APPRENTICESHIP AND AFTER COMPLETION OF THE 14 APPRENTICESHIP , UNLESS AN APPRENTICE LEAVES ON THE APPREN TICE’S OWN 15 ACCORD OR HAS BEEN D ISMISSED FOR CAUSE . 16 (5) IF AN INCENTIVE IS AW ARDED TO AN EMPLOYER O R A SPONSOR 17 ON BEHALF OF A NEWLY REGISTERED APPRENTIC E, ANOTHER EMPLOYER OR 18 SPONSOR MAY NOT APPL Y FOR AN INCENTIVE U NDER THE PROGRAM FOR THE SAME 19 NEWLY REGISTERED APP RENTICE. 20 (G) THE DEPARTMENT MAY ADOPT REGULATIONS TO CARRY OUT THIS 21 SECTION. 22 Article – State Finance and Procurement 23 6–226. 24 (a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 25 through 2028. 26 2. Notwithstanding any other provision of law, and unless 27 inconsistent with a federal law, grant agreement, or other federal requirement or with the 28 terms of a gift or settlement agreement, net interest on all State money allocated by the 29 State Treasurer under this section to special funds or accounts, and otherwise entitled to 30 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 31 Fund of the State. 32 14 SENATE BILL 431 (ii) The provisions of subparagraph (i) of this paragraph do not apply 1 to the following funds: 2 204. the Victims of Domestic Violence Program Grant Fund; 3 [and] 4 205. the Proposed Programs Collaborative Grant Fund; AND 5 206. THE MARYLAND APPRENTICESHIP INCENTIVE PAY 6 PER APPRENTICE PROGRAM FUND. 7 SECTION 2. AND BE IT FURTHER ENACTED, That § 11 –405 of the Labor and 8 Employment Article, as enacted by Section 1 of this Act, shall be construed to apply 9 retroactively and shall be applied to and interpreted to affect only registered apprenticeship 10 programs initially approved by the Maryland Apprenticeship and Training Council 11 Maryland Department of Labor on or after January 1, 2023. 12 SECTION 3. AND BE IT FURTHER ENACTED, That the terms of the initial 13 members of the Registered Apprenticeship Development Advisory Board shall expire as 14 follows: 15 (1) two members neither of whom is the chair on September 30, 2027; 16 (2) the chair on September 30, 2028; and 17 (3) two members neither of whom is the chair on September 30, 2029. 18 SECTION 3. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 19 October 1, 2025. 20 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.