Apprenticeship Utilization Act debate highlights funding, portability and waiver concerns

Delegate Melissa Wells testified before the House Economic Matters Committee in support of House Bill 1017, the Apprenticeship Utilization Act, which would require contractors and subcontractors that employ four or more workers on covered prevailing‑wage public projects to ensure apprentices perform 20 percent of covered craft work hours.

Nut graf: The sponsor and supporters described the provision as a demand‑side complement to state investments in apprenticeship supply, saying the rule would expand opportunities and help fill workforce shortages. Opponents from construction associations warned the bill, as drafted, could interrupt funding for Maryland apprenticeship programs and leave contractors exposed to fines or False Claims Act liability if definitions and fund language are not corrected.

Scope and mechanism: Wells said the 20 percent standard is measured on work hours to allow flexibility across crafts; for example, tower‑crane operation requires fewer workers than other tasks. The bill contains a waiver mechanism for contractors who cannot meet the standard and provides that contractors may instead make payments into the State Apprenticeship Training Fund in specified circumstances. The sponsor said she intends to preserve the existing fund and its 25‑cent per labor‑hour funding mechanism but acknowledged drafting ambiguities that she expects to resolve with staff and the Department of Legislative Services.

Concerns raised: Industry witnesses — including Associated Builders and Contractors and ABC Greater Baltimore — and some committee members said the bill’s language could unintentionally strip existing statutory protections that require State Apprenticeship Training Fund dollars be used to improve in‑state apprenticeship programs. Opponents said the bill’s ‘‘geographic area of operation’’ language could allow sourcing apprentices from neighboring states, effectively sending Maryland dollars out of state. ABC representatives said the existing 25‑cent per hour option funds Maryland training centers, pre‑apprenticeship programs, and post‑apprenticeship management training and that the bill’s current draft would undermine that funding stream.

Supportive testimony: Building‑trade witnesses, union apprentices and the Baltimore‑DC Building Trades said the bill would unlock opportunities for entry into the construction trades and help employers access trained workers. Apprentices who testified said the measure would increase diversity and create reliable career pathways. Supporters stressed the bill applies only to prevailing‑wage public projects and includes exemptions for covered entities and for projects where a waiver is granted.

Enforcement and penalties: As drafted, failure to meet apprenticeship utilization without an approved waiver could subject contractors to a $100 per labor‑hour penalty and other administrative or civil sanctions; the sponsor said additional language and waiver procedures can be negotiated to address contractor concerns.

Next steps: The sponsor said she would work with the committee and stakeholders to clarify geographic sourcing language, preserve in‑state apprenticeship funding, and refine waiver rules. Proponents asked for a favorable report; opponents urged amendment to preserve the State Apprenticeship Training Fund and to ensure Maryland dollars serve Maryland programs.