State Procurement - Apprenticeship Program Accountability and Completion
Summary
HB1165 revises Maryland procurement and public works apprenticeship requirements by adding a completion-rate standard for apprenticeship programs used on certain State-funded contracts. The bill defines several apprenticeship categories and, for programs to qualify as “registered apprenticeship programs” under the affected procurement and public works provisions, requires that they be registered with the Maryland Department of Labor or the U.S. Department of Labor and, if they have graduated at least one cohort, have a completion rate of at least 25% as determined or verified by the Department. It also allows certain covered procurements over $1 million to be satisfied by using either a registered apprenticeship program or an eligible paid internship program.
The bill amends multiple sections of the State Finance and Procurement Article governing covered procurements, public work contracts, prevailing wage-related apprenticeship requirements, and the State Apprenticeship Training Fund. It changes the criteria contractors and subcontractors must meet on covered projects and covered contracts, including verification obligations and options to make payments to the Fund or to apprenticeship programs. The measure takes effect October 1, 2026, and is intended to tighten accountability for apprenticeship participation while preserving existing apprenticeship and workforce-development structures.
The overall sentiment appears favorable. The bill passed both chambers with substantial majorities, and the House committee reported it favorably with amendments before adoption. The voting margins suggest broad support for linking State contracting preferences to apprenticeship quality and completion outcomes, as well as for expanding flexibility through eligible internship programs.
The main point of contention is likely the new 25% completion-rate threshold. Supporters would view it as a quality-control measure to ensure State procurement dollars support effective apprenticeship programs, while critics could see it as a barrier for newer, smaller, or otherwise lower-completion programs that still provide training opportunities. Another possible issue is the added administrative role for the Maryland Department of Labor in determining or verifying completion rates, which may raise implementation and compliance concerns for contractors and program sponsors.
Impact
HB1165 amends the State Finance and Procurement Article to condition use of apprenticeship programs in certain State procurements and public works on a minimum completion rate, as determined by the Maryland Department of Labor. It also updates related definitions across procurement and public works subtitles, modifies contractor and subcontractor verification requirements, and preserves the State Apprenticeship Training Fund framework for payments and penalties tied to apprenticeship obligations. The bill affects contractors, subcontractors, apprenticeship program sponsors, and State procurement officials by changing which programs qualify for compliance purposes and by adding a new performance-based eligibility standard.
Sentiment
The bill appears to have been received positively overall. It advanced through the House with a favorable-with-amendments committee report and passed both chambers by comfortable margins, indicating bipartisan or at least broad legislative support. The lack of recorded committee transcript opposition in the provided materials suggests the measure was not highly controversial in committee, though the amendments imply some refinement was needed before final passage.
Contention
The most notable substantive issue is the 25% completion-rate requirement for apprenticeship programs. Supporters likely argue that State contracts should only rely on programs with demonstrated completion outcomes, while opponents may worry that the threshold excludes emerging programs, union and nonunion programs with different completion patterns, or programs serving harder-to-train populations. There may also be concern about how the Department will calculate completion rates, how often those rates will be updated, and whether the added standard could reduce the pool of eligible contractors or apprentices on State projects.