1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *sb0688* |
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6 | 6 | | |
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7 | 7 | | SENATE BILL 688 |
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8 | 8 | | P2 5lr2664 |
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9 | 9 | | SB 1138/24 – SRU CF 5lr2659 |
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10 | 10 | | By: Senator Benson |
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11 | 11 | | Introduced and read first time: January 26, 2025 |
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12 | 12 | | Assigned to: Finance and Budget and Taxation |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Public Works Contracts – Apprenticeship Requirements 2 |
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19 | 19 | | (Maryland Workforce Apprenticeship Utilization Act) 3 |
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20 | 20 | | |
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21 | 21 | | FOR the purpose of altering certain apprenticeship requirements relating to public works 4 |
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22 | 22 | | contracts to require certain contractors and subcontractors to employ a certain 5 |
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23 | 23 | | number of qualified apprentices or journeyworkers necessary to meet a certain 6 |
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24 | 24 | | applicable percentage for the project; altering which projects are subject to certain 7 |
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25 | 25 | | apprenticeship requirements; repealing certain provisions of law that authorized 8 |
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26 | 26 | | contractors and subcontractors to make certain payments to a certain apprenticeship 9 |
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27 | 27 | | program in lieu of employing certain apprentices; requiring the Secretary of Labor 10 |
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28 | 28 | | to annually establish a certain applicable percentage; authorizing the Secretary to 11 |
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29 | 29 | | waive certain requirements under certain circumstances; establishing that certain 12 |
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30 | 30 | | apprenticeship requirements apply to the University System of Maryland and 13 |
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31 | 31 | | Baltimore City Community College; and generally relating to apprenticeship 14 |
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32 | 32 | | requirements for public works contracts. 15 |
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33 | 33 | | |
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34 | 34 | | BY repealing and reenacting, with amendments, 16 |
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35 | 35 | | Article – State Finance and Procurement 17 |
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36 | 36 | | Section 11–203(e) 18 |
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37 | 37 | | Annotated Code of Maryland 19 |
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38 | 38 | | (2021 Replacement Volume and 2024 Supplement) 20 |
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39 | 39 | | (As enacted by Chapter 732 of the Acts of the General Assembly of 2021 and 21 |
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40 | 40 | | Chapters 575 and 576 of the Acts of the General Assembly of 2023) 22 |
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41 | 41 | | |
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42 | 42 | | BY repealing and reenacting, with amendments, 23 |
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43 | 43 | | Article – State Finance and Procurement 24 |
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44 | 44 | | Section 17–601, 17–603, 17–604, and 17–606 25 |
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45 | 45 | | Annotated Code of Maryland 26 |
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46 | 46 | | (2021 Replacement Volume and 2024 Supplement) 27 |
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47 | 47 | | |
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48 | 48 | | BY adding to 28 2 SENATE BILL 688 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | Article – State Finance and Procurement 1 |
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52 | 52 | | Section 17–601.1, 17–602.1, 17–604.1, 17–605.1, and 17–607 2 |
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53 | 53 | | Annotated Code of Maryland 3 |
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54 | 54 | | (2021 Replacement Volume and 2024 Supplement) 4 |
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55 | 55 | | |
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56 | 56 | | BY repealing and reenacting, without amendments, 5 |
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57 | 57 | | Article – State Finance and Procurement 6 |
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58 | 58 | | Section 17–602 7 |
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59 | 59 | | Annotated Code of Maryland 8 |
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60 | 60 | | (2021 Replacement Volume and 2024 Supplement) 9 |
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61 | 61 | | |
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62 | 62 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10 |
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63 | 63 | | That the Laws of Maryland read as follows: 11 |
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64 | 64 | | |
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65 | 65 | | Article – State Finance and Procurement 12 |
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66 | 66 | | |
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67 | 67 | | 11–203. 13 |
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68 | 68 | | |
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69 | 69 | | (e) (1) In this subsection, “University” means the University System of 14 |
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70 | 70 | | Maryland, Morgan State University, or St. Mary’s College of Maryland. 15 |
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71 | 71 | | |
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72 | 72 | | (2) Except as otherwise provided in this subsection, this Division II does 16 |
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73 | 73 | | not apply to the University System of Maryland, Morgan State University, St. Mary’s 17 |
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74 | 74 | | College of Maryland, or Baltimore City Community College. 18 |
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75 | 75 | | |
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76 | 76 | | (3) (i) A procurement by a University or Baltimore City Community 19 |
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77 | 77 | | College shall comply with the policies and procedures developed by the University or 20 |
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78 | 78 | | Baltimore City Community College and approved by the Board of Public Works and the 21 |
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79 | 79 | | Administrative, Executive, and Legislative Review Committee of the General Assembly in 22 |
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80 | 80 | | accordance with: 23 |
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81 | 81 | | |
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82 | 82 | | 1. § 12–112 of the Education Article for the University 24 |
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83 | 83 | | System of Maryland; 25 |
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84 | 84 | | |
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85 | 85 | | 2. § 14–109 of the Education Article for Morgan State 26 |
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86 | 86 | | University; 27 |
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87 | 87 | | |
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88 | 88 | | 3. § 14–405(f) of the Education Article for St. Mary’s College 28 |
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89 | 89 | | of Maryland; or 29 |
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90 | 90 | | |
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91 | 91 | | 4. § 16–505.3 of the Education Article for Baltimore City 30 |
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92 | 92 | | Community College. 31 |
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93 | 93 | | |
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94 | 94 | | (ii) 1. The review and approval of the Board of Public Works 32 |
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95 | 95 | | shall be required for the following types of contracts with a value that exceeds $1,000,000 33 |
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96 | 96 | | for a University or $500,000 for Baltimore City Community College: 34 |
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97 | 97 | | SENATE BILL 688 3 |
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98 | 98 | | |
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99 | 99 | | |
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100 | 100 | | A. capital improvements; and 1 |
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101 | 101 | | |
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102 | 102 | | B. services. 2 |
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103 | 103 | | |
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104 | 104 | | 2. In its review of a contract for services or capital 3 |
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105 | 105 | | improvements with a value that exceeds $1,000,000, the Board of Public Works may request 4 |
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106 | 106 | | the comments of the appropriate agencies, including the Department of Budget and 5 |
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107 | 107 | | Management and the Department of General Services. 6 |
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108 | 108 | | |
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109 | 109 | | 3. For Baltimore City Community College contracts that are 7 |
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110 | 110 | | not subject to the review and approval of the Board of Public Works under subsubparagraph 8 |
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111 | 111 | | 1 of this subparagraph: 9 |
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112 | 112 | | |
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113 | 113 | | A. contracts with a value of $100,000 or less shall be reviewed 10 |
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114 | 114 | | and approved by the President of Baltimore City Community College or the President’s 11 |
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115 | 115 | | designee; and 12 |
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116 | 116 | | |
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117 | 117 | | B. contracts with a value that exceeds $100,000 but does not 13 |
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118 | 118 | | exceed $500,000 shall be approved by the Board of Trustees of Baltimore City Community 14 |
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119 | 119 | | College. 15 |
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120 | 120 | | |
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121 | 121 | | (4) The policies of a University or Baltimore City Community College shall: 16 |
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122 | 122 | | |
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123 | 123 | | (i) to the maximum extent practicable, require the purchasing of 17 |
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124 | 124 | | supplies and services in accordance with Title 14, Subtitle 1 of this article; 18 |
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125 | 125 | | |
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126 | 126 | | (ii) promote the purposes of the regulations adopted by the 19 |
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127 | 127 | | Department of General Services governing the procurement of architectural and 20 |
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128 | 128 | | engineering services; 21 |
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129 | 129 | | |
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130 | 130 | | (iii) promote the purposes of § 13–402 of the State Personnel and 22 |
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131 | 131 | | Pensions Article; 23 |
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132 | 132 | | |
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133 | 133 | | (iv) to the maximum extent practicable, be similar to § 13–218.1 of 24 |
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134 | 134 | | this article; and 25 |
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135 | 135 | | |
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136 | 136 | | (v) to the maximum extent practicable, require the procurement of 26 |
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137 | 137 | | food in accordance with Title 14, Subtitle 7 of this article. 27 |
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138 | 138 | | |
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139 | 139 | | (5) (i) Except as provided in paragraph (7) of this subsection, the 28 |
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140 | 140 | | following provisions of Division II of this article apply to a University and to Baltimore City 29 |
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141 | 141 | | Community College: 30 |
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142 | 142 | | |
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143 | 143 | | 1. § 11–205 of this subtitle (“Collusion”); 31 |
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144 | 144 | | |
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145 | 145 | | 2. § 11–205.1 of this subtitle (“Falsification, concealment, 32 |
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146 | 146 | | etc., of material facts”); 33 4 SENATE BILL 688 |
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147 | 147 | | |
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148 | 148 | | |
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149 | 149 | | |
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150 | 150 | | 3. § 13–219 of this article (“Required clauses – 1 |
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151 | 151 | | Nondiscrimination clause”); 2 |
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152 | 152 | | |
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153 | 153 | | 4. § 13–225 of this article (“Retainage”); 3 |
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154 | 154 | | |
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155 | 155 | | 5. Title 14, Subtitle 3 of this article (“Minority Business 4 |
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156 | 156 | | Participation”); 5 |
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157 | 157 | | |
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158 | 158 | | 6. Title 14, Subtitle 7 of this article (“Certified Local Farm 6 |
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159 | 159 | | and Fish Program”); 7 |
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160 | 160 | | |
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161 | 161 | | 7. Title 15, Subtitle 1 of this article (“Procurement Contract 8 |
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162 | 162 | | Administration”); 9 |
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163 | 163 | | |
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164 | 164 | | 8. § 15–226 of this article (“Policy established; timing of 10 |
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165 | 165 | | payments; notice upon nonpayment; disputes; appeals”); [and] 11 |
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166 | 166 | | |
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167 | 167 | | 9. Title 16 of this article (“Suspension and Debarment of 12 |
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168 | 168 | | Contractors”); AND 13 |
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169 | 169 | | |
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170 | 170 | | 10. TITLE 17, SUBTITLE 6 OF THIS ARTICLE 14 |
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171 | 171 | | (“APPRENTICESHIP REQUIREMENTS FOR PUBLIC WORKS CONTRACTS”). 15 |
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172 | 172 | | |
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173 | 173 | | (ii) If a procurement violates the provisions of this subsection or 16 |
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174 | 174 | | policies adopted in accordance with this subsection, the procurement contract is void or 17 |
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175 | 175 | | voidable in accordance with the provisions of § 11–204 of this subtitle. 18 |
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176 | 176 | | |
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177 | 177 | | (6) (i) The State Board of Contract Appeals shall have authority over 19 |
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178 | 178 | | contract claims related to procurement contracts awarded by: 20 |
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179 | 179 | | |
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180 | 180 | | 1. the University System of Maryland before July 1, 1999; 21 |
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181 | 181 | | |
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182 | 182 | | 2. Morgan State University before July 1, 2004; and 22 |
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183 | 183 | | |
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184 | 184 | | 3. Baltimore City Community College before July 1, 2021. 23 |
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185 | 185 | | |
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186 | 186 | | (ii) At the election of the Board of Regents of the University System 24 |
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187 | 187 | | of Maryland and subject to the approval of the Board of Public Works, the State Board of 25 |
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188 | 188 | | Contract Appeals shall have authority over contract claims related to procurement 26 |
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189 | 189 | | contracts awarded by the University after June 30, 1999. 27 |
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190 | 190 | | |
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191 | 191 | | (iii) At the election of the Board of Regents of Morgan State 28 |
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192 | 192 | | University and subject to the approval of the Board of Public Works, the State Board of 29 |
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193 | 193 | | Contract Appeals shall have authority over contract claims related to procurement 30 |
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194 | 194 | | contracts awarded by the University after June 30, 2004. 31 |
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195 | 195 | | SENATE BILL 688 5 |
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196 | 196 | | |
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197 | 197 | | |
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198 | 198 | | (iv) At the election of the Board of Trustees of St. Mary’s College of 1 |
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199 | 199 | | Maryland and subject to the approval of the Board of Public Works, the State Board of 2 |
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200 | 200 | | Contract Appeals shall have authority over contract claims related to procurement 3 |
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201 | 201 | | contracts awarded by St. Mary’s College of Maryland after June 30, 2006. 4 |
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202 | 202 | | |
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203 | 203 | | (v) At the election of the Board of Trustees of Baltimore City 5 |
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204 | 204 | | Community College and subject to the approval of the Board of Public Works, the State 6 |
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205 | 205 | | Board of Contract Appeals shall have authority over contract claims related to procurement 7 |
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206 | 206 | | contracts awarded by Baltimore City Community College after June 30, 2021. 8 |
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207 | 207 | | |
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208 | 208 | | (7) Except with regard to the provisions of § 15–113 of this article, 9 |
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209 | 209 | | paragraphs (3), (4), and (5) of this subsection do not apply to: 10 |
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210 | 210 | | |
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211 | 211 | | (i) procurement by a University or Baltimore City Community 11 |
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212 | 212 | | College from: 12 |
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213 | 213 | | |
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214 | 214 | | 1. another unit; 13 |
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215 | 215 | | |
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216 | 216 | | 2. a political subdivision of the State; 14 |
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217 | 217 | | |
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218 | 218 | | 3. an agency of a political subdivision of the State; 15 |
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219 | 219 | | |
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220 | 220 | | 4. a government, including the government of another state, 16 |
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221 | 221 | | of the United States, or of another country; 17 |
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222 | 222 | | |
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223 | 223 | | 5. an agency or political subdivision of a government; or 18 |
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224 | 224 | | |
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225 | 225 | | 6. a bistate, multistate, bicounty, or multicounty 19 |
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226 | 226 | | governmental agency; 20 |
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227 | 227 | | |
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228 | 228 | | (ii) procurement by a University in support of enterprise activities 21 |
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229 | 229 | | for the purpose of: 22 |
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230 | 230 | | |
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231 | 231 | | 1. direct resale; 23 |
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232 | 232 | | |
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233 | 233 | | 2. remanufacture and subsequent resale; or 24 |
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234 | 234 | | |
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235 | 235 | | 3. procurement by the University for overseas programs; or 25 |
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236 | 236 | | |
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237 | 237 | | (iii) procurement by the University System of Maryland for: 26 |
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238 | 238 | | |
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239 | 239 | | 1. services of managers to invest, in accordance with the 27 |
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240 | 240 | | management and investment policies adopted by the Board of Regents of the University 28 |
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241 | 241 | | System of Maryland, gift and endowment assets received by the University System of 29 |
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242 | 242 | | Maryland in accordance with § 12–104(e) of the Education Article; or 30 |
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243 | 243 | | 6 SENATE BILL 688 |
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244 | 244 | | |
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245 | 245 | | |
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246 | 246 | | 2. expenditures to manage, maintain, and enhance, in 1 |
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247 | 247 | | accordance with the management and investment policies adopted by the Board of Regents 2 |
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248 | 248 | | of the University System of Maryland, the value of gift and endowment assets received by 3 |
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249 | 249 | | the University System of Maryland in accordance with § 12–104(e) of the Education Article. 4 |
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250 | 250 | | |
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251 | 251 | | 17–601. 5 |
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252 | 252 | | |
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253 | 253 | | (a) In this subtitle the following words have the meanings indicated. 6 |
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254 | 254 | | |
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255 | 255 | | (B) “APPLICABLE PERCENTAGE ” MEANS THE PERCENTAGE OF TOTAL 7 |
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256 | 256 | | LABOR HOURS OF WORK ON A COVERED PROJECT , INCLUDING CONSTRUCTI ON, 8 |
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257 | 257 | | ALTERATION, AND REPAIR WORK , PERFORMED BY AN APPR ENTICE OR A 9 |
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258 | 258 | | JOURNEYWORKER ESTABL ISHED UNDER § 17–602.1 OF THIS SUBTITLE. 10 |
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259 | 259 | | |
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260 | 260 | | [(b)] (C) “Apprenticeship training program” means an apprenticeship training 11 |
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261 | 261 | | program that: 12 |
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262 | 262 | | |
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263 | 263 | | (1) is registered with, and approved by, the Apprenticeship and Training 13 |
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264 | 264 | | Council or the U.S. Department of Labor; AND 14 |
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265 | 265 | | |
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266 | 266 | | (2) COMPLIES WITH THE RE QUIREMENTS OF 29 C.F.R. PART 29 AND 15 |
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267 | 267 | | PART 30. 16 |
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268 | 268 | | |
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269 | 269 | | [(c)] (D) “Covered craft” means a classification of workers listed in the prevailing 17 |
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270 | 270 | | wage determination applicable to the covered project. 18 |
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271 | 271 | | |
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272 | 272 | | [(d)] (E) “Covered project” means a project for the construction of a public work[, 19 |
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273 | 273 | | as defined under § 17–201 of this title, that is valued at $500,000 or more] THAT IS 20 |
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274 | 274 | | SUBJECT TO SUBTITLE 2 OF THIS TITLE. 21 |
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275 | 275 | | |
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276 | 276 | | [(e)] (F) “Department” means the Maryland Department of Labor. 22 |
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277 | 277 | | |
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278 | 278 | | [(f)] (G) “Fund” means the State Apprenticeship Training Fund established 23 |
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279 | 279 | | under § 17–602 of this subtitle. 24 |
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280 | 280 | | |
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281 | 281 | | (H) “LABOR HOURS ” MEANS THE TOTAL NUMB ER OF HOURS DEVOTED TO 25 |
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282 | 282 | | THE PERFORMANCE OF C ONSTRUCTION , ALTERATION, OR REPAIR WORK BY AN Y 26 |
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283 | 283 | | INDIVIDUAL AND EXCLU DES HOURS WORKED BY : 27 |
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284 | 284 | | |
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285 | 285 | | (1) FOREMEN; 28 |
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286 | 286 | | |
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287 | 287 | | (2) SUPERINTENDENTS ; 29 |
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288 | 288 | | |
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289 | 289 | | (3) OWNERS; OR 30 |
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290 | 290 | | SENATE BILL 688 7 |
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291 | 291 | | |
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292 | 292 | | |
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293 | 293 | | (4) ANY PERSON EMPLOYED IN A BONA FIDE EXECU TIVE, 1 |
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294 | 294 | | ADMINISTRATIVE , OR PROFESSIONAL CAPA CITY, AS DEFINED IN 29 C.F.R. PART 2 |
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295 | 295 | | 541. 3 |
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296 | 296 | | |
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297 | 297 | | [(g)] (I) “Participates in an apprenticeship training program” means that a 4 |
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298 | 298 | | contractor or subcontractor makes regular financial contributions for each covered craft to 5 |
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299 | 299 | | apprenticeship training programs for covered crafts during the term of the covered project 6 |
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300 | 300 | | that are at least equal to the hourly fringe benefit contribution rates required for 7 |
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301 | 301 | | apprenticeship training by the applicable prevailing wage determination for the project, as 8 |
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302 | 302 | | specified by the Secretary. 9 |
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303 | 303 | | |
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304 | 304 | | (J) “QUALIFIED APPRENTICE OR JOURNEYWORKER ” MEANS AN 10 |
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305 | 305 | | INDIVIDUAL WHO IS PA RTICIPATING IN AN AP PRENTICESHIP TRAININ G PROGRAM. 11 |
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306 | 306 | | |
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307 | 307 | | [(h)] (K) “Secretary” means the Secretary of Labor. 12 |
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308 | 308 | | |
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309 | 309 | | 17–601.1. 13 |
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310 | 310 | | |
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311 | 311 | | (A) THIS SUBTITLE APPLIES ONLY TO CONTRACTORS AND 14 |
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312 | 312 | | SUBCONTRACTORS WHO E MPLOY FOUR OR MORE I NDIVIDUALS TO PERFOR M WORK 15 |
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313 | 313 | | ON A COVERED PROJECT . 16 |
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314 | 314 | | |
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315 | 315 | | (B) NOTHING IN THIS SUBTI TLE MAY PREEMPT A LO CAL LAW OR POLICY 17 |
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316 | 316 | | PROVIDING FOR ADDITI ONAL SKILLED AND TRAINED WO RKFORCE REQUIREMENTS 18 |
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317 | 317 | | ON PUBLIC WORKS PROJ ECTS. 19 |
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318 | 318 | | |
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319 | 319 | | 17–602. 20 |
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320 | 320 | | |
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321 | 321 | | (a) There is a State Apprenticeship Training Fund in the Department. 21 |
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322 | 322 | | |
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323 | 323 | | (b) The Fund consists of: 22 |
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324 | 324 | | |
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325 | 325 | | (1) payments made by contractors or subcontractors in accordance with 23 |
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326 | 326 | | this subtitle and Subtitle 6A of this title; and 24 |
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327 | 327 | | |
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328 | 328 | | (2) penalties collected as a result of violations of this subtitle and Subtitle 25 |
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329 | 329 | | 6A of this title. 26 |
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330 | 330 | | |
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331 | 331 | | (c) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this 27 |
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332 | 332 | | article. 28 |
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333 | 333 | | |
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334 | 334 | | (d) The State Treasurer shall hold the Fund separately, and the Comptroller shall 29 |
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335 | 335 | | account for the Fund. 30 |
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336 | 336 | | |
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337 | 337 | | (e) The Secretary shall use money in the Fund to: 31 |
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338 | 338 | | 8 SENATE BILL 688 |
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339 | 339 | | |
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340 | 340 | | |
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341 | 341 | | (1) promote preapprenticeship programs and other workforce development 1 |
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342 | 342 | | programs in the State’s public secondary schools and community colleges that assist 2 |
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343 | 343 | | students in preparing for and entering apprenticeship training programs; and 3 |
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344 | 344 | | |
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345 | 345 | | (2) pay any costs associated with carrying out the provisions of this subtitle 4 |
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346 | 346 | | and Subtitle 6A of this title. 5 |
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347 | 347 | | |
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348 | 348 | | 17–602.1. 6 |
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349 | 349 | | |
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350 | 350 | | (A) FOR CONSTRUCTION ON A COVER ED PROJECT FOR WHICH A PUBLIC 7 |
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351 | 351 | | BODY ADVERTISES FOR BIDS OR PROPOSALS FO R A PUBLIC WORKS CON TRACT ON 8 |
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352 | 352 | | OR AFTER JANUARY 1, 2026, THE APPLICABLE PERCE NTAGE IS 20%. 9 |
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353 | 353 | | |
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354 | 354 | | (B) ON OR BEFORE DECEMBER 31, 2026, AND EACH YEAR THEREA FTER, 10 |
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355 | 355 | | THE SECRETARY SHALL SET THE APPLIC ABLE PERCENTAGE THAT WILL APPLY FOR 11 |
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356 | 356 | | THE FOLLOWING CALEND AR YEAR. 12 |
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357 | 357 | | |
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358 | 358 | | (C) THE SECRETARY MAY ALTER T HE APPLICABLE PERCEN TAGE FOR A 13 |
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359 | 359 | | COVERED PROJECT TO M EET ANY RATIO REQUIR EMENTS NECESSARY FOR 14 |
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360 | 360 | | APPRENTICE OR JOURNE YWORKER SUPERVISION IN THE COVERED CRAFT . 15 |
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361 | 361 | | |
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362 | 362 | | 17–603. 16 |
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363 | 363 | | |
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364 | 364 | | (a) A contractor that is awarded a procurement contract for a covered project shall 17 |
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365 | 365 | | provide to a unit, as a condition of receiving the contract, written verification that: 18 |
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366 | 366 | | |
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367 | 367 | | (1) the contractor [participates in an apprenticeship training program for 19 |
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368 | 368 | | each covered craft in which it will employ persons for the covered project] IS EMPLOYING 20 |
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369 | 369 | | THE NUMBER OF QUALIF IED APPRENTICES OR J OURNEYWORKERS FOR A COVERED 21 |
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370 | 370 | | PROJECT NECESSARY TO MEET THE APPLICABLE PERCENTAGE FOR THE C OVERED 22 |
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371 | 371 | | PROJECT; OR 23 |
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372 | 372 | | |
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373 | 373 | | (2) the contractor will make payments to the Fund[; or 24 |
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374 | 374 | | |
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375 | 375 | | (3) the contractor will make payments in amounts determined under § 25 |
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376 | 376 | | 17–605 of this subtitle to a registered apprenticeship program or to an organization that 26 |
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377 | 377 | | has registered apprenticeship programs for the purpose of supporting these programs]. 27 |
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378 | 378 | | |
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379 | 379 | | (b) The written verification required under subsection (a) of this section shall be 28 |
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380 | 380 | | provided by a contractor to the unit responsible for the project before the contractor 29 |
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381 | 381 | | commences performance under the procurement contract. 30 |
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382 | 382 | | |
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383 | 383 | | [(c) Organizations that have registered apprenticeship programs and receive 31 |
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384 | 384 | | funds from contractors under subsection (a)(3) of this section shall certify to the Secretary 32 SENATE BILL 688 9 |
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385 | 385 | | |
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386 | 386 | | |
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387 | 387 | | that all funds received are used solely for the purpose of improving or expanding 1 |
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388 | 388 | | apprenticeship training in the State. 2 |
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389 | 389 | | |
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390 | 390 | | (d) The Secretary shall adopt regulations to establish a process for auditing 3 |
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391 | 391 | | organizations that provide registered apprenticeship programs to ensure that all funds 4 |
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392 | 392 | | received under subsection (a)(3) of this section are used solely to improve and expand 5 |
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393 | 393 | | apprenticeship programs in the State.] 6 |
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394 | 394 | | |
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395 | 395 | | 17–604. 7 |
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396 | 396 | | |
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397 | 397 | | (a) A subcontractor that performs work valued at $100,000 or more for a covered 8 |
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398 | 398 | | project shall provide to a unit written verification that: 9 |
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399 | 399 | | |
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400 | 400 | | (1) the subcontractor [participates in an apprenticeship training program 10 |
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401 | 401 | | for each covered craft in which it will employ persons] IS EMPLOYING THE NUM BER OF 11 |
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402 | 402 | | QUALIFIED APPRENTICE S OR JOURNEYWORKERS FOR A COVERED PROJEC T 12 |
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403 | 403 | | NECESSARY TO MEET TH E APPLICABLE PERCENT AGE for the covered project; OR 13 |
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404 | 404 | | |
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405 | 405 | | (2) the subcontractor will make payments to the Fund[; or 14 |
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406 | 406 | | |
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407 | 407 | | (3) the subcontractor will make payments in amounts determined under § 15 |
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408 | 408 | | 17–605 of this subtitle to a registered apprenticeship program or to an organization that 16 |
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409 | 409 | | has registered apprenticeship programs for the purpose of supporting these programs]. 17 |
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410 | 410 | | |
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411 | 411 | | (b) The written verification required under subsection (a) of this section shall be 18 |
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412 | 412 | | provided by a subcontractor to the unit responsible for the project before the subcontractor 19 |
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413 | 413 | | commences performance under the procurement contract. 20 |
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414 | 414 | | |
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415 | 415 | | [(c) Organizations that have registered apprenticeship programs and receive 21 |
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416 | 416 | | funds from contractors under subsection (a)(3) of this section shall certify to the Secretary 22 |
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417 | 417 | | that all funds received are used solely for the purpose of improving or expanding 23 |
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418 | 418 | | apprenticeship training in the State. 24 |
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419 | 419 | | |
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420 | 420 | | (d) The Secretary shall adopt regulations to establish a process for auditing 25 |
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421 | 421 | | organizations that provide registered apprenticeship programs to ensure that all funds 26 |
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422 | 422 | | received under subsection (a)(3) of this section are used solely to improve and expand 27 |
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423 | 423 | | apprenticeship programs in the State.] 28 |
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424 | 424 | | |
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425 | 425 | | 17–604.1. 29 |
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426 | 426 | | |
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427 | 427 | | (A) IN THIS SECTION , “ALL APPLICABLE APPRE NTICESHIP TRAINING 30 |
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428 | 428 | | PROGRAMS” MEANS EACH APPRENTIC ESHIP TRAINING PROG RAM THAT HAS A 31 |
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429 | 429 | | GEOGRAPHIC AREA OF O PERATION THAT INCLUD ES THE LOCATION OF T HE 32 |
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430 | 430 | | COVERED PROJECT AND HAS A USUAL AND CUST OMARY BUSINESS PRACT ICE OF 33 10 SENATE BILL 688 |
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431 | 431 | | |
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432 | 432 | | |
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433 | 433 | | ENTERING INTO AGREEM ENTS WITH EMPLOYERS FOR THE PLACEMENT OF 1 |
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434 | 434 | | APPRENTICES IN THE C OVERED CRAFT . 2 |
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435 | 435 | | |
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436 | 436 | | (B) THE SECRETARY MAY WAIVE THE RE QUIREMENTS UNDER § 17–603 OR 3 |
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437 | 437 | | § 17–604 OF THIS SUBTITLE IF A CONTRACTOR OR SUBC ONTRACTOR SUBMITS A 4 |
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438 | 438 | | WRITTEN WAIVER APPLI CATION, INCLUDING ANY SUPPOR TING DOCUMENTATION 5 |
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439 | 439 | | REQUIRED BY THE SECRETARY, DEMONSTRATING THAT T HE CONTRACTOR OR 6 |
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440 | 440 | | SUBCONTRACTOR: 7 |
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441 | 441 | | |
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442 | 442 | | (1) SUBJECT TO SUBSECTIO N (C) OF THIS SECTION, HAS REQUESTED 8 |
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443 | 443 | | QUALIFIED APPRENTICE S FROM ALL APPLICABL E APPRENTICESHIP TRA INING 9 |
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444 | 444 | | PROGRAMS; AND 10 |
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445 | 445 | | |
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446 | 446 | | (2) FOR EACH REQUEST : 11 |
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447 | 447 | | |
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448 | 448 | | (I) THE REQUEST HAS BEEN DENIED FOR A REASON THAT IS 12 |
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449 | 449 | | NOT THE RESULT OF A REFUSAL BY THE CONTRAC TOR OR SUBCONTRACTOR TO 13 |
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450 | 450 | | COMPLY WITH THE ESTA BLISHED STANDARDS AN D REQUIREMENTS OF TH E 14 |
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451 | 451 | | APPRENTICESHIP TRAIN ING PROGRAM ; OR 15 |
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452 | 452 | | |
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453 | 453 | | (II) THE APPRENTICESHIP T RAINING PROGRAM HAS FAILED TO 16 |
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454 | 454 | | RESPOND TO THE REQUE ST WITHIN 10 BUSINESS DAYS AFTER THE DATE ON WHICH 17 |
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455 | 455 | | THE APPRENTICESHIP T RAINING PROGRAM RECE IVED THE REQUEST . 18 |
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456 | 456 | | |
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457 | 457 | | (C) TO REQUEST QUALIFIED APPRENTICES FROM AN APPRENTICESHIP 19 |
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458 | 458 | | TRAINING PROGRAM , A CONTRACTOR OR SUBC ONTRACTOR SHALL SUBM IT: 20 |
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459 | 459 | | |
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460 | 460 | | (1) A REQUEST BY TELEPHO NE AND IN WRITING SE NT 21 |
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461 | 461 | | ELECTRON ICALLY AND BY REGIST ERED MAIL; AND 22 |
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462 | 462 | | |
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463 | 463 | | (2) A REQUEST TO AN APPR ENTICESHIP TRAINING PROGRAM WITH 23 |
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464 | 464 | | WHICH THE CONTRACTOR OR SUBCONTRACTOR DOE S NOT HAVE AN EXISTI NG 24 |
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465 | 465 | | PARTICIPATION AGREEM ENT, AT LEAST 90 CALENDAR DAYS BEFORE THE DATE THE 25 |
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466 | 466 | | CONTRACTOR OR SUBCON TRACTOR EXPECTS TO USE APP RENTICE LABOR . 26 |
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467 | 467 | | |
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468 | 468 | | 17–605.1. 27 |
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469 | 469 | | |
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470 | 470 | | (A) WHILE CONSTRUCTION AC TIVITY ON A COVERED PROJECT IS ONGOING , 28 |
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471 | 471 | | EACH CONTRACTOR AND SUBCONTRACTOR PERFOR MING WORK ON THE COV ERED 29 |
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472 | 472 | | PROJECT SHALL SUBMIT A MONTHLY REPORT TO THE DEPARTMENT THAT 30 |
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473 | 473 | | INCLUDES: 31 |
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474 | 474 | | |
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475 | 475 | | (1) FOR EACH APPRENTICE OR JOURNEYWORKER : 32 SENATE BILL 688 11 |
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476 | 476 | | |
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477 | 477 | | |
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478 | 478 | | |
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479 | 479 | | (I) THE NAME OF THE APPR ENTICE OR JOURNEYWOR KER; 1 |
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480 | 480 | | |
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481 | 481 | | (II) THE NAME OF THE ASSO CIATED APPRENTICESHI P TRAINING 2 |
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482 | 482 | | PROGRAM; AND 3 |
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483 | 483 | | |
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484 | 484 | | (III) THE APPRENTICE REGIS TRATION OR IDENTIFIC ATION 4 |
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485 | 485 | | NUMBER; 5 |
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486 | 486 | | |
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487 | 487 | | (2) THE TOTAL NUMBER OF APPRENTICES AND LABO R HOURS 6 |
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488 | 488 | | WORKED, CATEGORIZED BY TRADE OR CRAFT; AND 7 |
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489 | 489 | | |
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490 | 490 | | (3) THE TOTAL NUMBER OF JOURNEYWORKERS AND L ABOR HOURS 8 |
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491 | 491 | | WORKED, CATEGORIZED BY TRADE OR CRAFT. 9 |
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492 | 492 | | |
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493 | 493 | | (B) WITHIN 60 DAYS AFTER COMPLETIN G WORK ON A COVERED PROJECT, 10 |
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494 | 494 | | EACH CONTRACTOR AND SUBCONTRACTOR SHALL SUBMI T TO THE DEPARTMENT : 11 |
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495 | 495 | | |
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496 | 496 | | (1) A STATEMENT OF THE T OTAL NUMBER OF LABOR HOURS OF WORK 12 |
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497 | 497 | | ON A COVERED PROJECT , INCLUDING CONSTRUCTI ON, ALTERATION, AND REPAIR 13 |
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498 | 498 | | WORK, PERFORMED BY AN APPR ENTICE OR JOURNEYWOR KER; AND 14 |
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499 | 499 | | |
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500 | 500 | | (2) IF APPLICABLE , A WRITTEN DECLARATION AND SUPP ORTING 15 |
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501 | 501 | | DOCUMENTS JUSTIFYING ANY WAIVER RECEIVED UNDER § 17–604.1 OF THIS 16 |
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502 | 502 | | SUBTITLE. 17 |
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503 | 503 | | |
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504 | 504 | | (C) THE DEPARTMENT SHALL MAIN TAIN ON ITS WEBSITE : 18 |
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505 | 505 | | |
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506 | 506 | | (1) DATA AGGREGATED FROM THE REPORTS RECEIVED UNDER 19 |
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507 | 507 | | SUBSECTIONS (A) AND (B) OF THIS SECTION SHOW ING THE USE OF QUALIF IED 20 |
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508 | 508 | | APPRENTICES AND JOUR NEYWORKERS ON COVERE D PROJECTS; AND 21 |
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509 | 509 | | |
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510 | 510 | | (2) DESCRIPTIONS OF THE CIRCUMSTANCES OF ANY WAIVER 22 |
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511 | 511 | | GRANTED UNDER § 17–604.1 OF THIS SUBTITLE. 23 |
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512 | 512 | | |
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513 | 513 | | 17–606. 24 |
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514 | 514 | | |
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515 | 515 | | (a) A contractor or subcontractor that fails to meet the requirements of this 25 |
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516 | 516 | | subtitle shall be liable for an amount equal to: 26 |
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517 | 517 | | |
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518 | 518 | | (1) twice the amount of unpaid apprenticeship training contributions 27 |
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519 | 519 | | required by §§ 17–603 AND 17–604 OF this subtitle; AND 28 |
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520 | 520 | | 12 SENATE BILL 688 |
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521 | 521 | | |
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522 | 522 | | |
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523 | 523 | | (2) $100 MULTIPLIED BY THE TO TAL LABOR HOURS FOR WHICH THE 1 |
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524 | 524 | | REQUIREMENT UNDER § 17–603 OF THIS SUBTITLE WAS APPLICABLE. 2 |
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525 | 525 | | |
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526 | 526 | | (b) (1) In this subsection, “willfully” means representations or omissions 3 |
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527 | 527 | | known to be false or made with deliberate ignorance or reckless disregard for their truth or 4 |
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528 | 528 | | falsity. 5 |
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529 | 529 | | |
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530 | 530 | | (2) Any person, firm, or corporation that is found to have made willfully a 6 |
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531 | 531 | | false or fraudulent representation or omission regarding a material fact in connection with 7 |
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532 | 532 | | prevailing wage records required by this section shall be liable for a civil penalty in an 8 |
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533 | 533 | | amount of up to $1,000 for each employee and each falsified record. 9 |
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534 | 534 | | |
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535 | 535 | | (3) Penalties shall be recoverable [in civil actions and paid to the State] 10 |
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536 | 536 | | UNDER THE MARYLAND FALSE CLAIMS ACT. 11 |
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537 | 537 | | |
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538 | 538 | | (c) (1) The Secretary shall adopt regulations to establish administrative 12 |
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539 | 539 | | procedures for the collection of payments under this subtitle. 13 |
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540 | 540 | | |
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541 | 541 | | (2) (i) The Secretary may file suit to enforce this section in any court of 14 |
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542 | 542 | | competent jurisdiction. 15 |
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543 | 543 | | |
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544 | 544 | | (ii) In an action filed under this subsection, the court shall require 16 |
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545 | 545 | | the contractor or subcontractor to pay the amount required by subsection (a) of this section, 17 |
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546 | 546 | | including interest, reasonable counsel fees, and court costs. 18 |
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547 | 547 | | |
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548 | 548 | | 17–607. 19 |
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549 | 549 | | |
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550 | 550 | | THE SECRETARY SHALL ADOPT REGULATIONS NECESSAR Y TO CARRY OUT THE 20 |
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551 | 551 | | REQUIREMENTS OF THIS SUBTITLE. 21 |
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552 | 552 | | |
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553 | 553 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 22 |
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554 | 554 | | October 1, 2025. 23 |
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