MarylandSB 09642026 Regular SessionSenateWALLET

Public Works Contracts - Apprenticeship Requirements (Maryland Workforce Apprenticeship Utilization Act)

Sponsored By: Cory V. McCray (Democratic)

Signed by Governor

State ProcurementAELR CommitteeApprenticeships and InternshipsBaltimore CityCommunity CollegesConstructionContractors -see also- Construct; Electricians; etc.Contracts -see also- ProcurementData -see also- Census; DemographicsElectronic CommunicationEthicsInternet -see also- Internet AccessJob Training -see also- Continuing Ed; Vocational RehabPostal ServicePublic Works -see also- Brg&Tun; Hwys; PublBlgFac; etc.Public Works, Board ofReportsRules and RegulationsSalaries and Compensation -see also- Overtime; Reimb. RatesStandards and Best PracticesState Universities and CollegesTelecommunicationsTimeWork, Labor, and Employment -see also- JobTrn; Leave; etc.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 3 costs, 3 mixed.

New fund to grow apprenticeships

The State Apprenticeship Training Fund receives contractor payments, certain penalties, and other money. The Department uses the Fund to support pre‑apprenticeship, apprenticeship, and workforce programs. Only programs tied to a registered apprenticeship with at least a 25% completion rate can get awards.

Hire apprentices or pay $0.25/hour

To count as participating, contractors must make regular apprenticeship contributions for each craft at least equal to the prevailing‑wage apprenticeship fringe set by the Secretary. Contractors may instead pay the State Apprenticeship Training Fund each month at a rate the Secretary sets, up to $0.25 per employee hour. If the prevailing‑wage apprenticeship fringe is above $0.25 per hour, the extra must be paid to workers as wages. These payments are shown on payroll records and count toward prevailing‑wage obligations.

Pre-award checks and monthly reports

Before starting work, contractors and subs must give written proof they participate in apprenticeship training and will meet the project’s required percentage or make Fund payments. While work is ongoing, they must file monthly reports listing each apprentice and journeyworker, their program and ID, and hours by trade. Within 60 days after finishing, they must report total apprentice and journeyworker hours. The Department posts aggregated use and payment data online.

Stiffer penalties and no waivers

If a contractor fails to pay required apprenticeship contributions, they owe twice the unpaid amount and can be fined up to $10,000. Willful false payroll records carry civil penalties up to $1,000 for each employee and each falsified record. Penalties go to the General Fund, and courts can add interest, attorney fees, and costs. The Secretary’s prior power to waive these requirements is removed.

20% apprentice hours on public projects

For projects advertised on or after January 1, 2027, at least 20% of total labor hours must be by qualifying apprentices or journeyworkers. Each December 31, the Labor Secretary sets the next year’s percentage using a two‑year lookback and may adjust to meet supervision ratios. Labor hours exclude foremen, superintendents, owners, and bona fide executive, administrative, or professional staff. A worker counts if enrolled in a registered apprenticeship, graduated within the last 3 years, or finished equivalent apprenticeship‑length work in the last 3 years.

More public projects now covered

A covered project now means any public work that is subject to Subtitle 2 of Title 17. The University System of Maryland and Baltimore City Community College must follow these apprenticeship rules starting October 1, 2026. This expands where contractors must comply and opens more chances for apprentices to work on public jobs.

Rules take effect Oct 1, 2026

The Act takes effect October 1, 2026. The Labor Secretary must issue regulations to carry out the apprenticeship requirements.

Sponsors & Cosponsors

Sponsor

Cory V. McCray
Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 169 • No: 11

Senate vote • 4/13/2026

Third Reading Passed

Yes: 45 • No: 0 • Other: 2

House vote • 4/13/2026