In this subtitle the following words have the meanings indicated. “Apprenticeship cohort” has the meaning stated in § 14–801 of this article. “Completion rate” has the meaning stated in § 14–801 of this article. “Construction” includes: building; reconstructing; improving; enlarging; painting and decorating; altering; maintaining; and repairing. “Covered contract” means a contract: for a capital construction project funded with at least $1,000,000 of funds in the State capital budget; entered into by the recipient of the funding in the State capital budget and a contractor, or the contractor and a subcontractor; and for an amount of $500,000 or more. “Covered contract” does not include a contract for a covered project as defined in § 17–601(d) of this title. “Department” means the Maryland Department of Labor. “Fund” means the State Apprenticeship Training Fund established under § 17–602 of this title. “Group joint apprenticeship program” has the meaning stated in § 14–801 of this article. “Group nonjoint apprenticeship program” has the meaning stated in § 14–801 of this article. “Individual joint apprenticeship program” has the meaning stated in § 14–801 of this article. “Individual nonjoint apprenticeship program” has the meaning stated in § 14–801 of this article. “Registered apprenticeship program” means an apprenticeship program that: is registered with, and approved by, the Department or the United States Department of Labor; and if the program has graduated at least one apprenticeship cohort, has a completion rate of at least 25%, as verified by the Department. “Secretary” means the Secretary of Labor. “Waiver apprenticeship program” has the meaning stated in § 14–801 of this article.

Except as provided in subsection (b) of this section, each contractor or subcontractor awarded a covered contract shall: be affiliated with a registered apprenticeship program; and use apprentices from a registered apprenticeship program for each craft or trade in which the contractor or subcontractor employs persons to complete the covered contract; make payments to the Fund; or make payments in amounts determined under § 17–6A–03 of this subtitle to a registered apprenticeship program for the purpose of supporting the program. A contractor or subcontractor is not subject to the requirements of subsection (a) of this section if there are no registered apprenticeship programs for the craft or trade in which the contractor or subcontractor employs persons to complete the covered contract.

A contractor or subcontractor that elects to make payments to the Fund in accordance with this subtitle shall make payments, as determined by the Secretary, not to exceed 25 cents per hour for each employee who is employed by the contractor or subcontractor to complete the covered contract. Payments made to the Fund in accordance with this subsection shall be made on a monthly basis. If the Secretary determines that a contractor or subcontractor awarded a covered contract has made contributions to a registered apprenticeship program at rates lower than those required by this subtitle, the contractor or subcontractor shall make payments to the Fund for the difference between its contribution and the contribution rate required by this subtitle. Payments made to the Fund in accordance with this subsection shall be made on a monthly basis.

A contractor or subcontractor that makes contributions to the Fund or a registered apprenticeship program may request that the contributions of the contractor or subcontractor be directed to a specific preapprenticeship or workforce development program. The Secretary shall make a good–faith effort to accommodate requests received in accordance with paragraph (1) of this subsection. A registered apprenticeship program that receives funds from contractors or subcontractors under § 17–6A–02(a)(3) of this subtitle shall certify to the Secretary that all funds received are used solely for the purpose of improving or expanding apprenticeship training.

The Secretary shall adopt regulations to carry out the provisions of this subtitle. The regulations shall establish the process for a contractor or subcontractor to provide written verification to the Department that the requirements of this subtitle have been met. If a contractor or subcontractor is affiliated with a registered apprenticeship program, the regulations shall require the registered apprenticeship program to provide written documentation to the contractor or subcontractor verifying the affiliation. The regulations shall establish a process for auditing organizations that provide registered apprenticeship programs to ensure that all funds received by a registered apprenticeship program under § 17–6A–02(a)(3) of this subtitle are used solely to improve and expand apprenticeship programs in the State.

A contractor or subcontractor that fails to meet the requirements of this subtitle shall be liable for an amount equal to twice the amount of unpaid apprenticeship contributions required by this subtitle. In this subsection, “willfully” means a representation or an omission known to be false or made with deliberate ignorance or reckless disregard for truth or falsity. 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 contributions required by this subtitle shall be liable for a civil penalty in an amount of up to $1,000 for each employee for whom contributions are required and each falsification. A penalty shall be recoverable in a civil action and paid to the State. The Secretary may file suit to enforce this section in any court of competent jurisdiction. 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.