During the 2017 Legislative Session, the Maryland General Assembly approved House Bill 467. The bill, whose effective date is June 1, 2017, focuses on contracts funded through the State’s Capital Budget and applies to contracts for at least $500,000 for a capital construction project that receives at least $1,000,000 or more from the State’s Capital Budget.
The Maryland Department of Labor, Licensing and Regulation is required under the Act to establish regulations in accordance with the Act’s requirements. While the Department will soon convene stakeholders on this matter, the Department wanted to provide the following interim overview as to the requirements of the legislation.
House Bill 467 provides that certain contractors or subcontractors be affiliated with a Registered Apprenticeship program and use apprentices from a Registered Apprenticeship program. Contractors and subcontractors must also make payments to the State Apprenticeship Training Fund, or make payments to a Registered Apprenticeship Program for the purpose of supporting the program. Payments made will not exceed 25 cents per hour, as determined by the Secretary, for each employee who is employed by the contractor or subcontractor to complete the covered contract. Those payments will be made on a monthly basis.
A contractor or subcontractor is not required to be affiliated with a Registered Apprenticeship program and use apprentices from a Registered Apprenticeship program if there are no Registered Apprenticeship programs for the craft or trade covered under the contract.
A contractor or subcontractor that fails to meet the requirements of the Act will be liable for an amount equal to twice the amount of unpaid apprenticeship contributions. Those who are found to have made a willfully false or fraudulent representation or omission of material fact in regard to its contribution will be liable of a civil penalty in the amount of up to $1,000 for each employee for whom contributions are required and each falsification.
The Department will be establishing the process for which a contactor or subcontractor provides written verification to the Department that its obligations under the Act are met.
Questions about this requirement should be directed to the Division of Workforce Development and Adult Learning’s Office of Apprenticeship and Training. The Office can be reached at 410-767-2246 or by e-mail at [email protected].
