Title 17. Special Provisions -- State and Local Subdivisions — Subtitle 6. Apprenticeship Requirements for Public Works Contracts
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Fin. & Proc. § 17-601 (2026)
Title 17. Special Provisions -- State and Local Subdivisions
Subtitle 6. Apprenticeship Requirements for Public Works Contracts
§ 17–601LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Applicable percentage” means the percentage of total labor hours of work on a covered project, including construction, alteration, and repair work, performed by a qualifying apprentice or journeyworker established under § 17–602.1 of this subtitle.
(c)
“Apprenticeship cohort” has the meaning stated in § 14–801 of this article.
(d)
“Apprenticeship training program” means an apprenticeship training program that:
(1)
is registered with, and approved by, the Apprenticeship and Training Council or the U.S. Department of Labor; 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.
(e)
“Completion rate” has the meaning stated in § 14–801 of this article.
(f)
“Covered craft” means a classification of workers listed in the prevailing wage determination applicable to the covered project.
(g)
“Covered project” means a project for the construction of a public work that is subject to Subtitle 2 of this title.
(h)
“Department” means the Maryland Department of Labor.
(i)
“Fund” means the State Apprenticeship Training Fund established under § 17–602 of this subtitle.
(j)
“Group joint apprenticeship program” has the meaning stated in § 14–801 of this article.
(k)
“Group nonjoint apprenticeship program” has the meaning stated in § 14–801 of this article.
(l)
“Individual joint apprenticeship program” has the meaning stated in § 14–801 of this article.
(m)
“Individual nonjoint apprenticeship program” has the meaning stated in § 14–801 of this article.
(n)
“Labor hours” means the total number of hours devoted to the performance of construction, alteration, or repair work by any individual and excludes hours worked by:
(1)
foremen;
(2)
superintendents;
(3)
owners; or
(4)
any person employed in a bona fide executive, administrative, or professional capacity, as defined in 29 C.F.R. Part 541.
(o)
“Participates in an apprenticeship training program” means that a contractor or subcontractor makes regular financial contributions for each covered craft to apprenticeship training programs for covered crafts during the term of the covered project that are at least equal to the hourly fringe benefit contribution rates required for apprenticeship training by the applicable prevailing wage determination for the project, as specified by the Secretary.
(p)
“Qualifying apprentice or journeyworker” means an individual who:
(1)
has graduated from a registered apprenticeship training program within 3 years before the start date of the covered project;
(2)
is currently completing, or has completed within 3 years before the start date of the covered project, the equivalent of an apprenticeship in length and content of work experience and all requirements in the apprenticeship standards for a craft; or
(3)
is enrolled in a registered apprenticeship training program.
(q)
“Qualified apprenticeship program” means a preapprenticeship program, apprenticeship program, or workforce development program that is affiliated with or provides participants with access to a registered apprenticeship training program that has a completion rate of at least 25%, as determined by the Department.
(r)
“Secretary” means the Secretary of Labor.
(s)
“Waiver apprenticeship program” has the meaning stated in § 14–801 of this article.
Md. Code Ann., State Fin. & Proc. § 17-601.1 (2026)
Title 17. Special Provisions -- State and Local Subdivisions
Subtitle 6. Apprenticeship Requirements for Public Works Contracts
§ 17–601.1LinkCopy Citation
Nothing in this subtitle may preempt a local law or policy providing for additional skilled and trained workforce requirements on public works projects.
Md. Code Ann., State Fin. & Proc. § 17-602 (2026)
Title 17. Special Provisions -- State and Local Subdivisions
Subtitle 6. Apprenticeship Requirements for Public Works Contracts
§ 17–602LinkCopy Citation
(a)
There is a State Apprenticeship Training Fund in the Department.
(b)
The Fund consists of:
(1)
payments made by contractors or subcontractors in accordance with this subtitle and Subtitle 6A of this title;
(2)
penalties collected as a result of violations of this subtitle and Subtitle 6A of this title;
(3)
penalties collected as a result of violations of Title 14, Subtitle 8 of this article; and
(4)
any money from any other source accepted for the benefit of the Fund.
(c)
The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this article.
(d)
The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(e)
The Secretary shall use money in the Fund to:
(1)
subject to subsection (f) of this section, promote or support preapprenticeship programs, apprenticeship programs, and other workforce development programs; and
(2)
pay any costs associated with carrying out the provisions of this subtitle and Subtitle 6A of this title or Title 14, Subtitle 8 of this article.
(f)
Funds distributed under subsection (e)(1) of this section shall be awarded only to qualified apprenticeship programs.
Md. Code Ann., State Fin. & Proc. § 17-602.1 (2026)
Title 17. Special Provisions -- State and Local Subdivisions
Subtitle 6. Apprenticeship Requirements for Public Works Contracts
§ 17–602.1LinkCopy Citation
(a)
For construction on a covered project for which a public body advertises for bids or proposals for a public works contract on or after January 1, 2027, the applicable percentage is 20%.
(b)
(1)
On or before December 31, 2028, and every other December 31 thereafter, the Secretary shall set the applicable percentage that will apply for the following calendar year.
(2)
The applicable percentage adopted under this subsection shall be based on, over the previous 2 years:
(i)
enrollment in State apprenticeship programs; and
(ii)
actual apprenticeship utilization on public works projects.
(c)
The Secretary may alter the applicable percentage for a covered project to meet any ratio requirements necessary for apprentice or journeyworker supervision in the covered craft.
Md. Code Ann., State Fin. & Proc. § 17-603 (2026)
Title 17. Special Provisions -- State and Local Subdivisions
Subtitle 6. Apprenticeship Requirements for Public Works Contracts
§ 17–603LinkCopy Citation
(a)
A contractor that is awarded a procurement contract for a covered project shall provide to a unit, as a condition of receiving the contract, written verification that:
(1)
the contractor participates in an apprenticeship training program for each covered craft in which it will employ persons for the covered project and is employing the number of qualifying new apprentices or journeyworkers for a covered project necessary to meet the applicable percentage for the covered project;
(2)
the contractor will make payments to the Fund in accordance with § 17–605 of this subtitle; or
(3)
the contractor will make payments in amounts determined under § 17–605 of this subtitle to a qualified apprenticeship program for the purpose of supporting these programs.
(b)
The written verification required under subsection (a) of this section shall be provided by a contractor to the unit responsible for the project before the contractor commences performance under the procurement contract.
(c)
Organizations that have qualified apprenticeship programs and receive funds from contractors under subsection (a)(3) of this section shall certify to the Secretary that all funds received are used solely for the purpose of improving or expanding apprenticeship training in the State.
(d)
The Secretary shall adopt regulations to establish a process for auditing organizations that provide qualified apprenticeship programs to ensure that all funds received under subsection (a)(3) of this section are used solely to improve and expand apprenticeship programs in the State.
Md. Code Ann., State Fin. & Proc. § 17-604 (2026)
Title 17. Special Provisions -- State and Local Subdivisions
Subtitle 6. Apprenticeship Requirements for Public Works Contracts
§ 17–604LinkCopy Citation
(a)
A subcontractor that performs work at a value exceeding the small procurement amount specified in § 13–109 of this article for a covered project shall provide to a unit written verification that:
(1)
the subcontractor participates in an apprenticeship training program for each covered craft in which it will employ persons and is employing the number of qualifying new apprentices or journeyworkers for a covered project necessary to meet the applicable percentage for the covered project;
(2)
the subcontractor will make payments to the Fund in accordance with § 17–605 of this subtitle; or
(3)
the subcontractor will make payments in amounts determined under § 17–605 of this subtitle to a qualified apprenticeship program for the purpose of supporting these programs.
(b)
The written verification required under subsection (a) of this section shall be provided by a subcontractor to the unit responsible for the project before the subcontractor commences performance under the procurement contract.
(c)
Organizations that have qualified apprenticeship programs and receive funds from contractors under subsection (a)(3) of this section shall certify to the Secretary that all funds received are used solely for the purpose of improving or expanding apprenticeship training in the State.
(d)
The Secretary shall adopt regulations to establish a process for auditing organizations that provide qualified apprenticeship programs to ensure that all funds received under subsection (a)(3) of this section are used solely to improve and expand apprenticeship programs in the State.
Md. Code Ann., State Fin. & Proc. § 17-605 (2026)
Title 17. Special Provisions -- State and Local Subdivisions
Subtitle 6. Apprenticeship Requirements for Public Works Contracts
§ 17–605LinkCopy Citation
(a)
(1)
A contractor or subcontractor shall make payments, as determined by the Secretary, not to exceed 25 cents per hour for each employee in each covered craft who is employed by the contractor or subcontractor on the covered project, if the contractor or subcontractor:
(i)
elects to make payments to the Fund or a qualified apprenticeship program in accordance with this subtitle; or
(ii)
fails to meet their full qualifying new apprentice or journeyworker utilization requirement under this subtitle.
(2)
If the prevailing wage determination for a covered craft includes a fringe benefit contribution for apprenticeship programs that exceeds 25 cents, the contractor or subcontractor shall pay the difference to the employees in the covered craft in wages.
(3)
Payments made under this section fulfill any obligations of the contractor or subcontractor regarding contributions for apprenticeship programs included in the prevailing wage determination under § 17–208 of this title.
(4)
Payments made under paragraph (1) of this subsection are permissible deductions under § 17–215(b) of this title.
(5)
Payments made to the Fund in accordance with paragraph (1) of this subsection shall be made on a monthly basis.
(b)
(1)
If the Secretary determines that a contractor or subcontractor for a covered project has made contributions to an apprenticeship training program at rates lower than those required by this subtitle, or has failed to satisfy the qualifying new apprentice and journeyworker utilization requirement under this subtitle, the contractor or subcontractor shall make payments to the Fund equal to the pro rata difference between its contribution and the contribution rate required by this subtitle.
(2)
Payments made to the Fund in accordance with paragraph (1) of this subsection shall be made on a monthly basis.
(c)
A contractor shall report all apprenticeship payments made under this subtitle on prevailing wage payroll records required by § 17–220 of this title.
(d)
(1)
A contractor or subcontractor that makes contributions to the Fund or a qualified apprenticeship program, or an organization that has registered apprenticeship programs may request that its contributions be directed to a specific preapprenticeship, apprenticeship, or workforce development program.
(2)
The Secretary shall make a good–faith effort to accommodate requests received for contributions to the Fund in accordance with paragraph (1) of this subsection.
Md. Code Ann., State Fin. & Proc. § 17-605.1 (2026)
Title 17. Special Provisions -- State and Local Subdivisions
Subtitle 6. Apprenticeship Requirements for Public Works Contracts
§ 17–605.1LinkCopy Citation
(a)
While construction activity on a covered project is ongoing, each contractor and subcontractor performing work on the covered project shall submit a monthly report to the Department that includes:
(1)
for each apprentice or journeyworker:
(i)
the name of the apprentice or journeyworker;
(ii)
the name of the associated apprenticeship training program; and
(iii)
the apprentice registration or identification number;
(2)
the total number of apprentices and labor hours worked, categorized by trade or craft; and
(3)
the total number of journeyworkers and labor hours worked, categorized by trade or craft.
(b)
Within 60 days after completing work on a covered project, each contractor and subcontractor shall submit to the Department a statement of the total number of labor hours of work on a covered project, including construction, alteration, and repair work, performed by an apprentice or journeyworker.
(c)
The Department shall maintain on its website:
(1)
data aggregated from the reports received under subsections (a) and (b) of this section showing the use of qualifying new apprentices and journeyworkers on covered projects; and
(2)
payments made by each contractor or subcontractor under § 17–605 of this subtitle.
Md. Code Ann., State Fin. & Proc. § 17-606 (2026)
Title 17. Special Provisions -- State and Local Subdivisions
Subtitle 6. Apprenticeship Requirements for Public Works Contracts
§ 17–606LinkCopy Citation
(a)
A contractor or subcontractor that fails to meet the requirements of this subtitle shall be liable for an amount equal to:
(1)
twice the amount of unpaid apprenticeship training contributions required by §§ 17–603 and 17–604 of this subtitle; and
(2)
a fine of up to $10,000.
(b)
(1)
In this subsection, “willfully” means representations or omissions known to be false or made with deliberate ignorance or reckless disregard for their truth or falsity.
(2)
Any person, firm, or corporation that is found to have made willfully a false or fraudulent representation or omission regarding a material fact in connection with prevailing wage records required by this section shall be liable for a civil penalty in an amount of up to $1,000 for each employee and each falsified record.
(3)
Penalties shall be recoverable by order of the Secretary and paid to the General Fund.
(c)
(1)
The Secretary shall adopt regulations to establish administrative procedures for the collection of payments under this subtitle.
(2)
(i)
The Secretary may file suit to enforce this section in any court of competent jurisdiction.
(ii)
In an action filed under this subsection, the court shall require the contractor or subcontractor to pay the amount required by subsection (a) of this section, including interest, reasonable counsel fees, and court costs.
Md. Code Ann., State Fin. & Proc. § 17-607 (2026)
Title 17. Special Provisions -- State and Local Subdivisions
Subtitle 6. Apprenticeship Requirements for Public Works Contracts
§ 17–607LinkCopy Citation
The Secretary shall adopt regulations necessary to carry out the requirements of this subtitle.