Title 14. Preferences — Subtitle 8. Employee Stock Ownership Plan Preference Program
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Fin. & Proc. § 14-801 (2026)
Title 14. Preferences
Subtitle 8. Employee Stock Ownership Plan Preference Program
§ 14–801LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Apprenticeship cohort” means a group of apprentices registered with a specific apprenticeship program during a 1–year period, excluding any apprentices terminated during their probationary period.
(c)
“Completion rate” means:
(1)
for group nonjoint apprenticeship programs, the percentage of an apprenticeship cohort per employer that receives a certificate of apprenticeship completion within 1 year after the projected completion date; or
(2)
for group joint, individual nonjoint, individual joint, and waiver apprenticeship programs, the percentage of an apprenticeship cohort for the program that receives a certificate of apprenticeship completion within 1 year after the projected completion date.
(d)
“Covered procurement” means a procurement contract that:
(1)
meets the criteria established by the Chief Procurement Officer, in consultation with the Secretary and, for contracts subject to Title 3.5 of this article, the Secretary of Information Technology, under § 14–802 of this subtitle; and
(2)
is not a public work contract subject to § 17–202 of this article.
(e)
“Department” means the Maryland Department of Labor.
(f)
“Eligible internship program” means an internship program that requires a contractor or other entity to provide paid internships that meet standards established by the Secretary.
(g)
“Group joint apprenticeship program” means an apprenticeship program that has a committee, composed of an equal number of representatives of employers and employees, that has been jointly established by an employer or group of employers and a collective bargaining agent or agents.
(h)
“Group nonjoint apprenticeship program” means an apprenticeship program sponsored by two or more employers without the participation of a collective bargaining agent.
(i)
“Individual joint apprenticeship program” means an apprenticeship program sponsored by one employer with the participation of a collective bargaining agent.
(j)
“Individual nonjoint apprenticeship program” means an apprenticeship program sponsored by one employer without the participation of a collective bargaining agent.
(k)
“Registered apprenticeship program” means an apprenticeship program that:
(1)
is registered with and approved by the Division of Workforce Development and Adult Learning; and
(2)
if the program has graduated at least one apprenticeship cohort, has a completion rate of at least 25%, as verified by the Department.
(l)
“Secretary” means the Secretary of Labor.
(m)
“Waiver apprenticeship program” means an apprenticeship program sponsored by an individual or group of employers where the applicable collective bargaining agent waived participation.
Md. Code Ann., State Fin. & Proc. § 14-802 (2026)
Title 14. Preferences
Subtitle 8. Employee Stock Ownership Plan Preference Program
§ 14–802LinkCopy Citation
(a)
This subtitle applies to a covered procurement made by a unit.
(b)
A contractor awarded a covered procurement with an estimated total dollar value of $1,000,000 or more shall utilize a registered apprenticeship program or an eligible internship program.
(c)
The Chief Procurement Officer, in consultation with the Secretary and, for contracts subject to Title 3.5 of this article, the Secretary of Information Technology:
(1)
shall adopt regulations establishing the definition of “covered procurement”; and
(2)
may adopt:
(i)
regulations to improve the recruitment or skills of employees of vendors; or
(ii)
other regulations necessary to carry out this subtitle, including waiver processes.
Md. Code Ann., State Fin. & Proc. § 14-803 (2026)
Title 14. Preferences
Subtitle 8. Employee Stock Ownership Plan Preference Program
§ 14–803LinkCopy Citation
(a)
A contractor that submits a bid or proposal for a covered procurement shall provide to a unit written verification of:
(1)
the number of apprentices or interns that will be utilized throughout the contract term, including potential renewal options;
(2)
the work to be performed by apprentices in a registered apprenticeship program or interns in an eligible internship program; and
(3)
the duration of the apprenticeship or the internship.
(b)
The written verification required under subsection (a) of this section shall be provided before the contractor may be awarded a contract for a covered procurement.
Md. Code Ann., State Fin. & Proc. § 14-804 (2026)
Title 14. Preferences
Subtitle 8. Employee Stock Ownership Plan Preference Program
§ 14–804LinkCopy Citation
(a)
The Secretary is responsible for ensuring compliance with the requirements of this subtitle.
(b)
The Secretary shall establish criteria to assist units in ensuring contractor compliance with this subtitle, including:
(1)
penalties for a contractor’s failure to use apprentices or interns as provided in a bid or proposal; and
(2)
procedures for reporting alleged violations of this subtitle.
Md. Code Ann., State Fin. & Proc. § 14-805 (2026)
Title 14. Preferences
Subtitle 8. Employee Stock Ownership Plan Preference Program
§ 14–805LinkCopy Citation
(a)
A contractor that is awarded a contract for a covered procurement under this subtitle who fails to use apprentices from a registered apprenticeship program or interns from an eligible internship program as provided in the bid or proposal shall be liable for an amount as specified by the criteria established under § 14–804 of this subtitle.
(b)
A unit shall report alleged violations of this subtitle to the Department as specified in the criteria established under § 14–804 of this subtitle.
(c)
The Department shall report alleged violations of this subtitle to the Office of the Attorney General, which shall determine whether to bring a civil action against a person or business for a violation of this subtitle.
(d)
Penalties shall be recoverable in civil actions and paid to the State Apprenticeship Training Fund established under § 17–602 of this article, unless otherwise required by federal law.
(e)
The Secretary may file suit to enforce this subtitle in any court of competent jurisdiction.
(f)
In an action filed under this section, the court shall require the contractor to pay the amount required by subsection (a) of this section, including interest, reasonable attorney’s fees, and court costs.