Maryland Paint Stewardship

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. [Brackets] indicate matter deleted from existing law. *sb0143* SENATE BILL 143 P2 6lr1185 SB 688/25 – FIN & B&T (PRE–FILED) By: Senator Benson Requested: October 14, 2025 Introduced and read first time: January 14, 2026 Assigned to: Finance and Budget and Taxation A BILL ENTITLED AN ACT concerning 1 Public Works Contracts – Apprenticeship Requirements 2 (Maryland Workforce Apprenticeship Utilization Act) 3 FOR the purpose of altering certain apprenticeship requirements relating to public works 4 contracts to require certain contractors and subcontractors to employ a certain 5 number of qualified apprentices or journeyworkers necessary to meet a certain 6 applicable percentage for the project; altering which projects are subject to certain 7 apprenticeship requirements; repealing certain provisions of law that authorized 8 contractors and subcontractors to make certain payments to a certain apprenticeship 9 program in lieu of employing certain apprentices; requiring the Secretary of Labor 10 to annually establish a certain applicable percentage; authorizing the Secretary to 11 waive certain requirements under certain circumstances; establishing that certain 12 apprenticeship requir ements apply to the University System of Maryland and 13 Baltimore City Community College; and generally relating to apprenticeship 14 requirements for public works contracts. 15 BY repealing and reenacting, without amendments, 16 Article – State Finance and Procurement 17 Section 11–203(e)(1) and (7) 18 Annotated Code of Maryland 19 (2021 Replacement Volume and 2025 Supplement) 20 BY repealing and reenacting, with amendments, 21 Article – State Finance and Procurement 22 Section 11–203(e)(5)(i), 17–601, 17–602, 17–603, 17–604, and 17–606 23 Annotated Code of Maryland 24 (2021 Replacement Volume and 2025 Supplement) 25 BY adding to 26 Article – State Finance and Procurement 27 2 SENATE BILL 143 Section 17–601.1, 17–602.1, 17–604.1, 17–605.1, and 17–607 1 Annotated Code of Maryland 2 (2021 Replacement Volume and 2025 Supplement) 3 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4 That the Laws of Maryland read as follows: 5 Article – State Finance and Procurement 6 11–203. 7 (e) (1) In this subsection, “University” means the Uni versity System of 8 Maryland, Morgan State University, or St. Mary’s College of Maryland. 9 (5) (i) Except as provided in paragraph (7) of this subsection, the 10 following provisions of Division II of this article apply to a University and to Baltimore City 11 Community College: 12 1. § 11–205 of this subtitle (“Collusion”); 13 2. § 11 –205.1 of this subtitle (“Falsification, concealment, 14 etc., of material facts”); 15 3. § 13 –219 of this article (“Required clauses – 16 Nondiscrimination clause”); 17 4. § 13–225 of this article (“Retainage”); 18 5. Title 14, Subtitle 3 of this article (“Minority Business 19 Participation”); 20 6. Title 14, Subtitle 7 of this article (“Certified Local Farm 21 and Fish Program”); 22 7. Title 15, Subtitle 1 of this article (“Proc urement Contract 23 Administration”); 24 8. § 15 –226 of this article (“Policy established; timing of 25 payments; notice upon nonpayment; disputes; appeals”); [and] 26 9. Title 16 of this article (“Suspension and Debarment of 27 Contractors”); AND 28 10. TITLE 17, SUBTITLE 6 OF THIS ARTICLE 29 (“APPRENTICESHIP REQUIREMENTS FOR PUBLIC WORKS CONTRACTS”). 30 SENATE BILL 143 3 (7) Except with regard to the provisions of § 15 –113 of this article, 1 paragraphs (3), (4), and (5) of this subsection do not apply to: 2 (i) procurement by a University or Baltimore City Community 3 College from: 4 1. another unit; 5 2. a political subdivision of the State; 6 3. an agency of a political subdivision of the State; 7 4. a government, including the government of another state, 8 of the United States, or of another country; 9 5. an agency or political subdivision of a government; or 10 6. a bistate, multistate, bicounty, or multicounty 11 governmental agency; 12 (ii) procurement by a University in support of enterprise activities 13 for the purpose of: 14 1. direct resale; 15 2. remanufacture and subsequent resale; or 16 3. procurement by the University for overseas programs; or 17 (iii) procurement by the University System of Maryland for: 18 1. services of managers to invest, in accordance with the 19 management and investment policies adopted by the Board of Regents of the University 20 System of Maryland, gift and endowment assets received by the University System of 21 Maryland in accordance with § 12–104(e) of the Education Article; or 22 2. expenditures to manage, maintain, and enhance, in 23 accordance with the management and investment policies adopted by the Board of Regents 24 of the University System of Maryland, the value of gift and endowment assets received by 25 the University System of Maryland in accordance with § 12–104(e) of the Education Article. 26 17–601. 27 (a) In this subtitle the following words have the meanings indicated. 28 (B) “APPLICABLE PERCENTAGE ” MEANS THE PERCENTAGE OF TOTAL 29 LABOR HOURS OF WORK ON A COVERED PROJECT , INCLUDING CONSTRUCTI ON, 30 4 SENATE BILL 143 ALTERATION, AND REPAIR WORK , PERFORMED BY AN APPR ENTICE OR A 1 JOURNEYWORKER, ESTABLISHED UNDER § 17–602.1 OF THIS SUBTITLE. 2 [(b)] (C) “Apprenticeship training program” means an apprenticeship training 3 program that: 4 (1) is registered with, and approved by, the Apprenticeship and Training 5 Council or the U.S. Department of Labor; AND 6 (2) COMPLIES WITH THE REQUIREMENTS OF 29 C.F.R. PART 29 AND 7 PART 30. 8 [(c)] (D) “Covered craft” means a classification of workers listed in the prevailing 9 wage determination applicable to the covered project. 10 [(d)] (E) “Covered project” means a project for the construction of a public work[, 11 as defined u nder § 17 –201 of this title, that is valued at $500,000 or more ] THAT IS 12 SUBJECT TO SUBTITLE 2 OF THIS TITLE. 13 [(e)] (F) “Department” means the Maryland Department of Labor. 14 [(f)] (G) “Fund” means the State Apprenticeship Training Fund established 15 under § 17–602 of this subtitle. 16 (H) “LABOR HOURS” MEANS THE TOTAL NUMB ER OF HOURS DEVOTED TO 17 THE PERFORMANCE OF C ONSTRUCTION, ALTERATION, OR REPAIR WORK BY AN Y 18 INDIVIDUAL AND EXCLUDES HOURS WORKED BY: 19 (1) FOREMEN; 20 (2) SUPERINTENDENTS; 21 (3) OWNERS; OR 22 (4) ANY PERSON EMPLOYED IN A BONA FIDE EXECU TIVE, 23 ADMINISTRATIVE, OR PROFESSIONAL CAPA CITY, AS DEFINED IN 29 C.F.R. PART 24 541. 25 [(g)] (I) “Participates in an apprenticeship training program” means that a 26 contractor or subcontractor makes regular financial contributions for each covered craft to 27 apprenticeship training programs for covered crafts during the term of the covered project 28 that are at least equal to the hourly fringe benefit contribution rates required for 29 apprenticeship training by the applicable prevailing wage determination for the project, as 30 specified by the Secretary. 31 SENATE BILL 143 5 (J) “QUALIFIED APPRENTICE OR JOURNEYWORKER ” MEANS AN 1 INDIVIDUAL WHO IS PARTICIPATING IN AN APPRENTICESHIP TRAINING PROGRAM. 2 [(h)] (K) “Secretary” means the Secretary of Labor. 3 17–601.1. 4 (A) THIS SUBTITLE APPLIES ONLY TO CONTRACTORS AND 5 SUBCONTRACTORS WHO EMPLOY FOUR OR MORE INDIVIDUALS TO PERFORM WORK 6 ON A COVERED PROJECT. 7 (B) NOTHING IN THIS SUBTI TLE MAY PREEMPT A LO CAL LAW OR POLICY 8 PROVIDING FOR ADDITIONAL SKILLED AND TRAINED WORKFORCE REQUIREMENTS 9 ON PUBLIC WORKS PROJECTS. 10 17–602. 11 (a) There is a State Apprenticeship Training Fund in the Department. 12 (b) The Fund consists of: 13 (1) payments made by contractors or subcontractors in accordance with 14 this subtitle and Subtitle 6A of this title; 15 (2) penalties collected as a result of violations of this subtitle and Subtitle 16 6A of this title; and 17 (3) penalties collected as a result of violations of Title 14, Subtitle 8 of this 18 article. 19 (c) The Fund is a special, nonlapsing fund that is not subject to § 7 –302 of this 20 article. 21 (d) The State Treasurer shall hold the Fund separately, and the Comptroller shall 22 account for the Fund. 23 (e) The Secretary shall use money in the [fund] FUND to: 24 (1) promote preapprenticeship programs and other workforce development 25 programs in the State’s public secondary schools and community colleges that assist 26 students in preparing for and entering apprenticeship training programs; and 27 (2) pay any costs associated with carrying out the provisions of this subtitle 28 and Subtitle 6A of this title or Title 14, Subtitle 8 of this article. 29 6 SENATE BILL 143 17–602.1. 1 (A) FOR CONSTRUCTION ON A COVERED PROJECT FOR WHICH A PUBLIC 2 BODY ADVERTISES FOR BIDS OR PROPOSALS FO R A PUBLIC WORKS CONTRACT ON 3 OR AFTER JANUARY 1, 2027, THE APPLICABLE PERCENTAGE IS 20%. 4 (B) ON OR BEFORE DECEMBER 31, 2027, AND EACH YEAR THEREA FTER, 5 THE SECRETARY SHALL SET THE APPLICABLE PERCENTAGE THAT WILL APPLY FOR 6 THE FOLLOWING CALENDAR YEAR. 7 (C) THE SECRETARY M AY ALTER THE APPLICA BLE PERCENTAGE FOR A 8 COVERED PROJECT TO M EET ANY RATIO REQUIR EMENTS NECESSARY FOR 9 APPRENTICE OR JOURNEYWORKER SUPERVISION IN THE COVERED CRAFT. 10 17–603. 11 (a) A contractor that is awarded a procurement contract for a covered project shall 12 provide to a unit, as a condition of receiving the contract, written verification that: 13 (1) the contractor [participates in an apprenticeship training program for 14 each covered craft in which it will employ persons for the covered project ] IS EMPLOYING 15 THE NUMBER OF QUALIFIED APPRENTICES OR JOURNEYWORKERS FOR A COVERED 16 PROJECT NECESSARY TO MEET THE APPLICABLE PERCENTAGE FOR THE COVERED 17 PROJECT; OR 18 (2) the contractor will make payments to the Fund[; or 19 (3) the contractor will make payments in amounts determined under § 20 17–605 of this subtitle to a registered apprenticeship program or to an organization that 21 has registered apprenticeship programs for the purpose of supporting these programs]. 22 (b) The written verification required under subsection (a) of this section shall be 23 provided by a contractor to the unit responsible for the project before the contractor 24 commences performance under the procurement contract. 25 [(c) Organizations that have register ed apprenticeship programs and receive 26 funds from contractors under subsection (a)(3) of this section shall certify to the Secretary 27 that all funds received are used solely for the purpose of improving or expanding 28 apprenticeship training in the State. 29 (d) The Secretary shall adopt regulations to establish a process for auditing 30 organizations that provide registered apprenticeship programs to ensure that all funds 31 received under subsection (a)(3) of this section are used solely to improve and expand 32 apprenticeship programs in the State.] 33 SENATE BILL 143 7 17–604. 1 (a) A subcontractor that performs work at a value exceeding the small 2 procurement amount specified in § 13–109 of this article for a covered project shall provide 3 to a unit written verification that: 4 (1) the subcontractor [participates in an apprenticeship training program 5 for each covered craft in which it will employ persons ] IS EMPLOYING THE NUMBER OF 6 QUALIFIED APPRENTICE S OR JOURNEYWORKERS FOR A COVERED PROJEC T 7 NECESSARY TO MEET THE APPLICABLE PERCENTAGE for the covered project; OR 8 (2) the subcontractor will make payments to the Fund[; or 9 (3) the subcontractor will make payments in amounts determined under § 10 17–605 of this subtitle to a registered apprenticeship program or to an organization that 11 has registered apprenticeship programs for the purpose of supporting these programs]. 12 (b) The written verification required under subsection (a) of this section shall be 13 provided by a subcontractor to the unit responsible for the project before the subcontractor 14 commences performance under the procurement contract. 15 [(c) Organizations that have registered apprenticeship programs and receive 16 funds from contractors under subsection (a)(3) of this section shall certify to the Secretary 17 that all funds received a re used solely for the purpose of improving or expanding 18 apprenticeship training in the State. 19 (d) The Secretary shall adopt regulations to establish a process for auditing 20 organizations that provide registered apprenticeship programs to ensure that all funds 21 received under subsection (a)(3) of this section are used solely to improve and expand 22 apprenticeship programs in the State.] 23 17–604.1. 24 (A) IN THIS SECTION , “ALL APPLICABLE APPRE NTICESHIP TRAINING 25 PROGRAMS” MEANS EACH APPRENTIC ESHIP TRAINING PROGR AM THAT HAS A 26 GEOGRAPHIC AREA OF O PERATION THAT INCLUD ES THE LOCATION OF T HE 27 COVERED PROJECT AND HAS A USUAL AND CUST OMARY BUSINESS PRACT ICE OF 28 ENTERING INTO AGREEM ENTS WITH EMPLOYERS FOR THE PLACEMENT OF 29 APPRENTICES IN THE COVERED CRAFT. 30 (B) THE SECRETARY MAY WAIVE THE REQ UIREMENTS UNDER § 17–603 OR 31 § 17–604 OF THIS SUBTITLE IF A CONTRACTOR OR SUBC ONTRACTOR SUBMITS A 32 WRITTEN WAIVER APPLI CATION, INCLUDING ANY SUPPOR TING DOCUMENTATION 33 REQUIRED BY THE SECRETARY, DEMONSTRATING THAT T HE CONTRACTOR OR 34 SUBCONTRACTOR: 35 8 SENATE BILL 143 (1) SUBJECT TO SUBSECTION (C) OF THIS SECTION, HAS REQUESTED 1 QUALIFIED APPRENTICE S FROM ALL APPLICABL E APPRENTICESHIP TRA INING 2 PROGRAMS; AND 3 (2) FOR EACH REQUEST: 4 (I) THE REQUEST HAS BEEN DENIED FOR A REASON THAT IS 5 NOT THE RESULT OF A REFUSAL BY THE CONTR ACTOR OR SUBCONTRACT OR TO 6 COMPLY WITH THE ESTA BLISHED STANDARDS AN D REQUIREMENTS OF TH E 7 APPRENTICESHIP TRAINING PROGRAM; OR 8 (II) THE APPRENTICESHIP TRAINING PROGRAM HAS FAILED TO 9 RESPOND TO THE REQUEST WITHIN 10 BUSINESS DAYS AFTER THE DATE ON WHICH 10 THE APPRENTICESHIP TRAINING PROGRAM RECEIVED THE REQUEST. 11 (C) TO REQUEST QUALIFIED APPRENTICES FROM AN APPRENTICESHIP 12 TRAINING PROGRAM, A CONTRACTOR OR SUBCONTRACTOR SHALL SUBMIT: 13 (1) A REQUEST BY TELEPHO NE AND IN WRITING SE NT 14 ELECTRONICALLY AND BY REGISTERED MAIL; AND 15 (2) A REQUEST TO AN APPR ENTICESHIP TRAINING PROGRAM WITH 16 WHICH THE CONTRACTOR OR SUBCONTRACTOR DOE S NOT HAVE AN EXISTI NG 17 PARTICIPATION AGREEMENT, AT LEAST 90 CALENDAR DAYS BEFORE THE DATE THE 18 CONTRACTOR OR SUBCONTRACTOR EXPECTS TO USE APPRENTICE LABOR. 19 17–605.1. 20 (A) WHILE CONSTRUCTION ACTIVITY ON A COVERED PROJECT IS ONGOING, 21 EACH CONTRACTOR AND SUBCONTRACTOR PERFORMING WORK ON THE COV ERED 22 PROJECT SHALL SUBMIT A MONTHLY REPORT TO THE DEPARTMENT THAT 23 INCLUDES: 24 (1) FOR EACH APPRENTICE OR JOURNEYWORKER: 25 (I) THE NAME OF THE APPRENTICE OR JOURNEYWORKER; 26 (II) THE NAME OF THE ASSOCIATED APPRENTICESHIP TRAINING 27 PROGRAM; AND 28 (III) THE APPRENTICE REGIS TRATION OR IDENTIFIC ATION 29 NUMBER; 30 SENATE BILL 143 9 (2) THE TOTAL NUMBER OF APPRENTICES AND LABO R HOURS 1 WORKED, CATEGORIZED BY TRADE OR CRAFT; AND 2 (3) THE TOTAL NUMBER OF JOURNEYWORKERS AND L ABOR HOURS 3 WORKED, CATEGORIZED BY TRADE OR CRAFT. 4 (B) WITHIN 60 DAYS AFTER COMPLETING WORK ON A COVERED PROJECT, 5 EACH CONTRACTOR AND SUBCONTRACTOR SHALL SUBMIT TO THE DEPARTMENT: 6 (1) A STATEMENT OF THE TOTAL NUMBER OF LABOR HOURS OF WORK 7 ON A COVERED PROJECT , INCLUDING CONSTRUCTION, ALTERATION, AND REPAIR 8 WORK, PERFORMED BY AN APPRENTICE OR A JOURNEYWORKER; AND 9 (2) IF APPLICABLE , A WRITTEN DECLARATION AND SUPPORTING 10 DOCUMENTS JUSTIFYING ANY WAIVER RECEIVED UNDER § 17–604.1 OF THIS 11 SUBTITLE. 12 (C) THE DEPARTMENT SHALL MAINTAIN ON ITS WEBSITE: 13 (1) DATA AGGREGATED FROM THE REPORTS RECEIVED UNDER 14 SUBSECTIONS (A) AND (B) OF THIS SECTIO N SHOWING THE USE OF QUALIFIED 15 APPRENTICES AND JOURNEYWORKERS ON COVERED PROJECTS; AND 16 (2) DESCRIPTIONS OF THE CIRCUMSTANCES OF ANY WAIVER 17 GRANTED UNDER § 17–604.1 OF THIS SUBTITLE. 18 17–606. 19 (a) A contractor or subcontractor that fails to meet the req uirements of this 20 subtitle shall be liable for an amount equal to: 21 (1) twice the amount of unpaid apprenticeship training contributions 22 required by §§ 17–603 AND 17–604 OF this subtitle; AND 23 (2) $100 MULTIPLIED BY THE TOTAL LABOR HOURS FOR WHICH THE 24 REQUIREMENT UNDER § 17–603 OF THIS SUBTITLE WAS APPLICABLE. 25 (b) (1) In this subsection, “willfully” means representations or omissions 26 known to be false or made with deliberate ignorance or reckless disregard for their truth or 27 falsity. 28 (2) Any person, firm, or corporation that is found to have made willfully a 29 false or fraudulent representation or omission regarding a material fact in connection with 30 10 SENATE BILL 143 prevailing wage records required by this section shall be liable for a civil penalty in an 1 amount of up to $1,000 for each employee and each falsified record. 2 (3) Penalties shall be recoverable [in civil actions and paid to the State ] 3 UNDER THE MARYLAND FALSE CLAIMS ACT. 4 (c) (1) The Secretary shall adopt regulations to establish administrative 5 procedures for the collection of payments under this subtitle. 6 (2) (i) The Secretary may file suit to enforce this section in any court of 7 competent jurisdiction. 8 (ii) In an action filed under this subsection, the court shall require 9 the contractor or subcontractor to pay the amount required by subsection (a) of this section, 10 including interest, reasonable counsel fees, and court costs. 11 17–607. 12 THE SECRETARY SHALL ADOPT REGULATIONS NECESSARY TO CARRY OUT THE 13 REQUIREMENTS OF THIS SUBTITLE. 14 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15 October 1, 2026. 16