# COMAR Title 21 — State Procurement Regulations

## Subtitle 11 — Socioeconomic Policies

### Chapter 13 — State Apprenticeship Training Fund — Capital Construction Projects

**Authority:** State Finance and Procurement Article, §§17-6A-01—17-6A-06, Annotated Code of Maryland

**Administrative History:** Regulations .01—.10 recodified from COMAR 21.11.13 to COMAR 21.11.14 effective December 28, 2020 (47:26 Md. R. 1108)

**Administrative History:** Regulations .01—.11 adopted effective December 28, 2020 (47:26 Md. R. 1108)

#### Regulation .01 Definitions.

*COMAR 21.11.13.01*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Covered contract” has the meaning stated in State Finance and Procurement Article, §17-6A-01(c), Annotated Code of Maryland.

  (2) “Department” means the Maryland Department of Labor.

  (3) “Fund” has the meaning set forth in State Finance and Procurement Article, §17-6A-01(e), Annotated Code of Maryland.

  (4) “Registered apprenticeship program” means an apprenticeship program which has been registered with, and approved by, the Maryland Apprenticeship and Training Council or the United States Department of Labor and is operating within the State of Maryland.

  (5) “Secretary” means the Secretary of the Maryland Department of Labor.

#### Regulation .02 Applicability.

*COMAR 21.11.13.02*

A. Each contractor or subcontractor awarded a covered contract defined in Regulation .01 of this chapter shall:

  (1) Both:

    (a) Be affiliated with a registered apprenticeship program; and

    (b) Use apprentices from registered apprenticeship programs for each craft or trade in which the contractor or subcontractor employs individuals to complete the contract; or

  (2) Either:

    (a) Make payments to the Fund; or

    (b) Make payments to a registered apprenticeship program.

B. This title is not applicable to a contractor or subcontractor if there are no registered apprenticeship programs for the craft or trade in which the contractor or subcontractor employs one or more individuals to complete the covered contract.

C. This title is not applicable to any capital construction projects that commenced, in whole or in part, prior to the effective date of these regulations.

#### Regulation .03 Hourly Contribution Rate.

*COMAR 21.11.13.03*

A. Contractors and subcontractors that elect to make payments as described in Regulation .02 of this chapter shall pay 25 cents per individual per hour, for each employee who is employed to complete the contract, to:

  (1) A registered apprenticeship program; or

  (2) The Fund.

B. Payments described in §A of this regulation shall be made on a monthly basis.

#### Regulation .04 Registration.

*COMAR 21.11.13.04*

A. Contractors performing work on a covered contract shall complete the registration process at the Department’s website.

B. Prior to the commencement of work, a registered contractor shall log onto Department’s website and complete the required project log information, including, but not limited to, the following:

  (1) Identification of the capital project or grant;

  (2) Contract value;

  (3) Identification of subcontractors with contracts valued at $500,000 or more to perform work on the project and subcontract value amount;

  (4) Identification of the affiliated registered apprenticeship program;

  (5) Certification that the contractor is employing registered apprentices from the registered apprenticeship program to complete the contract; and

  (6) Any other information that the Secretary requires.

C. In the event the contractor is not affiliated with a registered apprenticeship program and is not able to comply with the certification requirement set forth in §B(5) of this regulation, the contractor shall designate the entity, either a registered apprenticeship program or the Fund, to which the contractor will make contributions, estimate the number of employees per craft and trade for which there is a registered apprenticeship program, and estimate the number of hours they will be employed to complete the contract.

D. Subcontractors shall comply with the same registration requirements as set forth in this regulation.

#### Regulation .05 Notification.

*COMAR 21.11.13.05*

A. Contractors who hire subcontractors performing work valued at $500,000 or more on a covered contract, shall provide the subcontractors with written notice of the following requirements:

  (1) Subcontractors performing work valued at $500,000 or more on a covered contract shall complete the registration process on the Department’s website; and

  (2) Prior to the commencement of work, a subcontractor shall log onto the Department’s website and complete the required project log information including:

    (a) Identification of the capital project or grant;

    (b) Contract value;

    (c) Identification of subcontractors with contracts valued at $500,000 or more to perform work on the project and subcontract value amount;

    (d) Identification of the affiliated registered apprenticeship program;

    (e) Certification that the subcontractor is employing registered apprentices from that program to complete the contract;

    (f) If electing to make payments under Regulation .02A(2) of this chapter, designation of the entity, either a registered apprenticeship program or the Fund, to which the subcontractor will make contributions; and

    (g) Any other information that the Secretary requires.

B. Contractors 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 Secretary for 3 years after the completion of their work on a covered contract.

C. In the event the contractor or subcontractor is not affiliated with a registered apprenticeship program and is not able to comply with the certification requirement set forth in §A(2) of this regulation, the contractor or subcontractor shall estimate the number of employees per craft and trade for which there is a registered apprenticeship program and the number of hours they will be employed to complete the contract.

D. Subcontractors shall comply with the same notice requirements as set forth in this regulation.

#### Regulation .06 Contractor’s and Subcontractor’s Obligations Related to Contributions.

*COMAR 21.11.13.06*

Contractors and subcontractors who elect to make contributions to a registered apprenticeship program or the Fund are required to comply with the following requirements:

A. Indicate on their capital construction payroll records their contributions under State Finance and Procurement Article, §17-6A- 03 or §17-6A-04, Annotated Code of Maryland; and

B. Certify to the Secretary, or the Secretary’s designee, on a quarterly basis, that the contributions were sent to a registered apprenticeship program or to the Fund.

#### Regulation .07 Registered Apprenticeship Program’s Obligations Related to Contributions.

*COMAR 21.11.13.07*

Upon request from contractors or subcontractors, registered apprenticeship programs shall provide written documentation to the contractors or subcontractors verifying their affiliation with the applicable program.

#### Regulation .08 Notification of Intended Changes to Designated Registered Apprenticeship Programs or the Fund.

*COMAR 21.11.13.08*

A. Thirty days prior to making a change in the designation of applicable apprenticeship or contribution to the Fund, a contractor or subcontractor shall log onto the Department’s website to indicate the intended change.

B. A contractor or subcontractor making payments to the Fund may make a written request to the Secretary that the contributions be directed to a specific pre-apprenticeship or workforce development program.

#### Regulation .09 Registered Apprenticeship Program’s Obligations.

*COMAR 21.11.13.09*

A. Upon notice from the Department’s Division of Workforce Development and Adult Learning that the registered apprenticeship program has been designated for contributions by a contractor or subcontractor, a registered apprenticeship program shall register on the Department’s website.

B. A registered apprenticeship program shall comply with the following requirements:

  (1) Complete the requested information on contributions received from contractors and subcontractors for each contract at the Department’s website on or before the last day of the month immediately following each calendar quarter; and

  (2) Certify that all funds received are used solely for the purpose of improving or expanding apprenticeship training in the State.

#### Regulation .10 Audit of a Registered Apprenticeship Program.

*COMAR 21.11.13.10*

The Secretary, or the Secretary’s designee, may require an independent audit by a certified public accountant of a registered apprenticeship program to verify that contributions received from contractors and subcontractors are used consistently with requirements set forth in  State Finance and Procurement Article, §§17-6A-01—17-6A-06, Annotated Code of Maryland and this chapter.

#### Regulation .11 Enforcement Procedures.

*COMAR 21.11.13.11*

A. The Secretary, or the Secretary’s designee,  may investigate whether State Finance and Procurement Article, Title 17, Subtitle 6A, Annotated Code of Maryland, has been violated:

  (1) On the Secretary’s, or the Secretary’s designee, own initiative;

  (2) On receipt of a written complaint; or

  (3) On referral from another State agency.

B. The Secretary, or the Secretary’s designee, may require a contractor, subcontractor, or registered apprenticeship program to produce records as part of its investigation.

C. The Secretary, or the Secretary’s designee, may enter a place of business to:

  (1) Interview individuals; or

  (2) Review and copy records.

D. If after an investigation the Secretary, or the Secretary’s designee, determines that there is a violation of State Finance and Procurement Article, Title 17, Subtitle 6A, Annotated Code of Maryland, or a regulation adopted to carry out the title, the Secretary shall issue an administrative charge that shall:

  (1) Describe in detail the nature of the alleged violation;

  (2) Cite the provision of law or regulation that is alleged to have been violated; and

  (3) State the penalty to be assessed, if any.

E. Within a reasonable amount of time after the issuance of the administrative charge, the Secretary shall send a copy of the administrative charge to the alleged violator by regular mail with notice of the opportunity to request a hearing.

F. Within 30 days of the postmark of the administrative charge sent to the alleged violator, the alleged violator may submit a written request for a hearing on the administrative charge and proposed penalty.

G. If a hearing is not requested within 30 days of the postmark of the administrative charge sent to the alleged violator, the administrative charge, including any penalties, shall become a final order of the Secretary.

H. If there is a request for a hearing, the Secretary may delegate the hearing to the Office of Administrative Hearings in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.

I. A proposed decision of an administrative law judge shall become a final order of the Secretary unless, within 15 days of the issuance of the proposed decision:

  (1) The Secretary orders review of the proposed decision; or

  (2) The alleged violator submits to the Secretary a written request for review of the proposed decision.

J. After review of the proposed decision under §I of this regulation, with or without a hearing on the record, the Secretary shall issue an order that affirms, modifies, or vacates the proposed decision.