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<chapter num="12" heading="State Apprenticeship Training Fund" title_num="21" subtitle_num="11">
  <regulation prefix="Regulation" num=".01" heading="Definitions.">
    <paragraph num="A.">
      <text>In this chapter, the following terms have the meanings indicated.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Terms Defined.</text>
      <paragraph num="(1)">
        <text>“Approved apprenticeship program” means an apprenticeship program or an organization with an apprenticeship program which has been registered with, and approved by, the Maryland Apprenticeship and Training Council or the United States Department of Labor.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>“Commissioner” means the Commissioner of Labor and Industry.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>“Covered craft” means a classification of workers listed in the prevailing wage determination applicable to a prevailing wage project.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>“Fund” means the State Apprenticeship Training Fund.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Hourly Contribution Rate.">
    <paragraph num="A.">
      <text>If a contractor participates in an apprenticeship training program for each covered craft, the contractor satisfies their obligation under State Finance and Procurement Article,  §17-603(a)(1), Annotated Code of Maryland,  by making contributions of at least 25 cents per person per hour.</text>
    </paragraph>
    <paragraph num="B.">
      <text>If a subcontractor participates in an apprenticeship training program for each covered craft, the subcontractor satisfies their obligation under State Finance and Procurement Article, §17-604(a)(1), Annotated Code of Maryland,  by making contributions of at least 25 cents per person per hour.</text>
    </paragraph>
    <paragraph num="C.">
      <text>Contractors and subcontractors that do not participate in an apprenticeship training program shall pay at least 25 cents per person per hour for each employee in each covered craft on the prevailing wage project to a registered apprenticeship program, an organization that has a registered apprenticeship program, or the Fund.</text>
    </paragraph>
    <paragraph num="D.">
      <text>Contractors and subcontractors who make contributions to the Fund shall do so on a monthly basis.</text>
    </paragraph>
    <paragraph num="E.">
      <text>Contractors and subcontractors who make contributions to a registered apprenticeship program or an organization that has a registered apprenticeship program shall make contributions on a monthly basis or consistent with a collective bargaining agreement or other contractual arrangement.</text>
    </paragraph>
    <paragraph num="F.">
      <text>If there is a prevailing wage determination that includes a fringe benefit contribution for apprenticeship that exceeds 25 cents per hour, a contractor or subcontractor that makes contributions to the Fund shall pay to the employee wages in the amount that the fringe benefit contribution for apprenticeship exceeds 25 cents per hour.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Contractor and Subcontractor Registration.">
    <paragraph num="A.">
      <text>Contractors performing work on a prevailing wage project shall complete the registration process at the Department’s website.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Subcontractors who are performing work valued at $100,000 or more on a prevailing wage project shall complete the registration process at the Department’s website.</text>
    </paragraph>
    <paragraph num="C.">
      <text>Prior to the commencement of work, a registered contractor or registered subcontractor shall log onto the Department’s website and complete the required project log information including:</text>
      <paragraph num="(1)">
        <text>The prevailing wage project number;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Contract value;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Identification of subcontractors to perform work on the project and subcontract value amount;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Designation of the program or Fund where the contractor or subcontractor will make contributions; and</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Any other information that the Commissioner requires.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Contractor and Subcontractor Notification to Subcontractors.">
    <paragraph num="A.">
      <text>Contractors and subcontractors who hire subcontractors performing work valued at $100,000 or more on a public work contract subject to the Maryland Prevailing Wage Law shall provide the subcontractors with written notice of the following requirements:</text>
      <paragraph num="(1)">
        <text>Subcontractors shall complete the registration process at the Division of Labor and Industry’s website at https://www.dllr.state.md.us/prevwage;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Prior to the commencement of work, a subcontractor shall log onto the Department’s website and complete the required project log information including:</text>
        <paragraph num="(a)">
          <text>The prevailing wage project number;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Contract value;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Identification of all subcontractors to perform work on the project and subcontract value amount;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Designation of the program or Fund where the subcontractor will make contributions; and</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Any other information that the Commissioner requires; and</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>Subcontractors performing work on a prevailing wage project valued at $100,000 or more are required to make payments to approved apprenticeship programs or to the Fund for each employee employed in classifications listed on the prevailing wage determination.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>Contractors and subcontractors shall retain a copy of the written notice required in §A of this regulation that was provided to covered subcontractors for inspection and review by the Commissioner for 3 years after the completion of their work on a public work project.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Contractor and Subcontractor Obligations Related to Contributions.">
    <text>Contractors and subcontractors are required to:</text>
    <paragraph num="A.">
      <text>Indicate on their prevailing wage payroll record their contributions under State Finance and Procurement Article, §17-603 or 17-604, Annotated Code of Maryland; and</text>
    </paragraph>
    <paragraph num="B.">
      <text>Certify that the contributions were received by an approved apprenticeship program or the Fund.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Notification to Division of Labor and Industry of Changes to Designated Approved Apprenticeship Programs or Fund.">
    <paragraph num="A.">
      <text>Contractors and subcontractors shall log onto the Department’s website and indicate each approved apprenticeship program or the Fund to which it will make contributions.</text>
    </paragraph>
    <paragraph num="B.">
      <text>If a contractor or subcontractor intends to change a designation, it shall log onto the Department’s website to indicate the change in designation 30 days prior to that change.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".07" heading="Approved Apprenticeship Program Obligations.">
    <paragraph num="A.">
      <text>Upon notice from the Division of Labor and Industry that the approved apprenticeship program has been designated for contributions by a contractor or subcontractor, an approved apprenticeship program shall register on the Department’s website.</text>
    </paragraph>
    <paragraph num="B.">
      <text>An approved apprenticeship program shall complete the requested information on contributions received from contractors and subcontractors for each covered craft for each prevailing wage project at the Department's website on or before the last day of the month immediately following each calendar quarter.</text>
    </paragraph>
    <paragraph num="C.">
      <text>Certify that all funds received are used solely for the purpose of improving or expanding apprenticeship training in the State.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".08" heading="Audit of an Approved Apprenticeship Program.">
    <text>The Commissioner may require an independent audit by a certified public accountant of an approved apprenticeship program to verify that contributions received are used consistent with this subtitle.</text>
  </regulation>
  <regulation prefix="Regulation" num=".09" heading="Enforcement Procedures.">
    <paragraph num="A.">
      <text>The Commissioner may investigate whether State Finance and Procurement Article, Title 17, Subtitle 6, Annotated Code of Maryland, has been violated:</text>
      <paragraph num="(1)">
        <text>On the Commissioner’s own initiative;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>On receipt of a written complaint; or</text>
      </paragraph>
      <paragraph num="(3)">
        <text>On referral from another State agency.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>The Commissioner may require a contractor, subcontractor, or an approved apprenticeship program to produce records as part of its investigation.</text>
    </paragraph>
    <paragraph num="C.">
      <text>The Commissioner may enter a place of business to:</text>
      <paragraph num="(1)">
        <text>Interview individuals; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Review and copy records.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>If after an investigation, the Commissioner determines that there is a violation of State Finance and Procurement Article, Title 17, Subtitle 6, Annotated Code of Maryland, or a regulation adopted to carry out the title, the Commissioner shall issue an administrative charge that shall:</text>
      <paragraph num="(1)">
        <text>Describe in detail the nature of the alleged violation;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Cite the provision of law or regulation that is alleged to have been violated; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>State the penalty, if any.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>Within a reasonable amount of time after the issuance of the administrative charge, the Commissioner shall send a copy of the administrative charge to the alleged violator by certified mail with notice of the opportunity to request a hearing.</text>
    </paragraph>
    <paragraph num="F.">
      <text>Within 15 days after the alleged violator receives the administrative charge, the employer may submit a written request for a hearing on the administrative charge and proposed penalty.</text>
    </paragraph>
    <paragraph num="G.">
      <text>If a hearing is not requested within 15 days, the administrative charge, including any penalties, shall become a final order of the Commissioner.</text>
    </paragraph>
    <paragraph num="H.">
      <text>If there is a request for a hearing, the Commissioner may delegate the hearing to the Office of Administrative Hearings in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text>
    </paragraph>
    <paragraph num="I.">
      <text>A proposed decision of an administrative law judge shall become a final order of the Commissioner unless, within 15 days of the issuance of the proposed decision:</text>
      <paragraph num="(1)">
        <text>The Commissioner orders review of the proposed decision; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The alleged violator submits to the Commissioner a written request for review of the proposed decision.</text>
      </paragraph>
    </paragraph>
    <paragraph num="J.">
      <text>After review of the proposed decision under §I of this regulation, with or without a hearing on the record, the Commissioner shall issue an order that affirms, modifies, or vacates the proposed decision</text>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">State Finance and Procurement Article, §§17-603—17-606, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: July 1, 2013  (40:8 Md. R. 724)</annotation>
  </annotations>
</chapter>