PROPOSED ACTION ON REGULATIONS
MARYLAND REGISTER, VOLUME 39, ISSUE 25,
FRIDAY, DECEMBER 14, 2012
Title 21
STATE PROCUREMENT REGULATIONS
Subtitle 11 SOCIOECONOMIC POLICIES
21.11.12 State Apprenticeship Training Fund
Authority: State Finance and Procurement Article, §§17-603—17-606, Annotated Code of Maryland
Notice of Proposed Action
[12-343-P-I]
The Commissioner of Labor and Industry proposes to adopt new Regulations
.01—.09 under a new chapter, COMAR 21.11.12 State Apprenticeship Training Fund.
Statement of Purpose
The purpose of this action is to implement the State Apprenticeship Training Fund, Ch. 687, Acts of 2009.
The State Apprenticeship Training Fund requires contractors and some subcontractors on public work contracts
to make contributions to: (1) a registered apprenticeship program, (2) an organization that operates registered
programs, or (3) the State Apprenticeship Training Fund.
Comparison to Federal Standards
There is no corresponding federal standard to this proposed action.
Estimate of Economic Impact
The proposed action has no economic impact.
Economic Impact on Small Businesses
The proposed action has minimal or no economic impact on small businesses.
Impact on Individuals with Disabilities
The proposed action has no impact on individuals with disabilities.
Opportunity for Public Comment
Comments may be sent to Debbie Stone, Regulations Coordinator, Department of Labor, Licensing, and Regulation, Division of
Labor and Industry, 1100 N. Eutaw Street, Room 606, Baltimore, Maryland 21201, or call 410-767-2225, or email to
dstone@dllr.state.md.us, or fax to 410-767-2986. Comments will be
accepted through January 14, 2013.
A public hearing will be held on January 7, 2013, at 10 a.m., at 1100 North Eutaw Street, Room #108, Baltimore, Maryland
21201, for the purpose of affording interested persons the opportunity to submit data or comments in writing or orally. Any
interested person desiring to participate in this hearing should give written notification of intention to appear not later
than January 3, 2013, to Commissioner of Labor and Industry, Attention: Debbie Stone, Regulations Coordinator, Division of
Labor and Industry, 1100 N. Eutaw Street, Room 606, Baltimore, Maryland 21201, or call (410) 767-2225, or fax to (410) 767-2986, or email
dstone@dllr.state.md.us.
.01 Definitions.
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) “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.
(2) “Commissioner” means the Commissioner of Labor and Industry.
(3) “Covered craft” means a classification of workers listed in the prevailing wage determination applicable
to a prevailing wage project.
(4) “Fund” means the State Apprenticeship Training Fund.
.02 Hourly Contribution Rate.
A. 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.
B. 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.
C. 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.
D. Contractors and subcontractors who make contributions to the Fund shall do so on a monthly basis.
E. 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.
F. 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.
.03 Contractor and Subcontractor Registration.
A. Contractors performing work on a prevailing wage project shall complete the registration process at the Division
of Labor and Industry’s website at
https://www.dllr.state.md.us/prevwage.
B. Subcontractors who are performing work valued at $100,000 or more on a prevailing wage project shall complete the
registration process at the Division of Labor and Industry’s website at
https://www.dllr.state.md.us/prevwage.
C. Prior to the commencement of work, a registered contractor or registered subcontractor shall log onto the Division
of Labor and Industry’s website at
https://www.dllr.state.md.us/prevwage
and complete the required project log information including:
(1) The prevailing wage project number;
(2) Contract value;
(3) Identification of subcontractors to perform work on the project and subcontract value amount;
(4) Designation of the program or Fund where the contractor or subcontractor will make contributions; and
(5) Any other information that the Commissioner requires.
.04 Contractor and Subcontractor Notification to Subcontractors.
A. 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:
(1) Subcontractors shall complete the registration process at the Division of Labor and Industry’s website at
https://www.dllr.state.md.us/prevwage;
(2) Prior to the commencement of work, a subcontractor shall log onto the Division of Labor and Industry’s website at
https://www.dllr.state.md.us/prevwage
and complete the required project log information including:
(a) The prevailing wage project number;
(b) Contract value;
(c) Identification of all subcontractors to perform work on the project and subcontract value amount;
(d) Designation of the program or Fund where the subcontractor will make contributions; and
(e) Any other information that the Commissioner requires; and
(3) 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.
B. 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.
.05 Contractor and Subcontractor Obligations Related to Contributions.
Contractors and subcontractors are required to:
A. 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
B. Certify that the contributions were received by an approved apprenticeship program or the Fund.
.06 Notification to Division of Labor and Industry of Changes to Designated Approved Apprenticeship Programs or Fund.
A. Contractors and subcontractors shall log onto the Division of Labor and Industry’s website at
https://www.dllr.state.md.us/prevwage
and indicate each approved apprenticeship program or the Fund to which it will make contributions.
B. If a contractor or subcontractor intends to change a designation, it shall log onto the Division of Labor and Industry’s website at
https://www.dllr.state.md.us/prevwage
to indicate the change in designation 30 days prior to that change.
.07 Approved Apprenticeship Program Obligations.
A. 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 Division of Labor and Industry’s website at
https://www.dllr.state.md.us/prevwage.
B. 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 Division of Labor and
Industry’s website at http://www.dllr.state.md.us/prevwage on or before the last day of the month immediately following each calendar quarter.
C. Certify that all funds received are used solely for the purpose of improving or expanding apprenticeship training in the State.
.08 Audit of an Approved Apprenticeship Program.
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.
.09 Enforcement Procedures.
A. The Commissioner may investigate whether State Finance and Procurement Article, Title 17, Subtitle 6,
Annotated Code of Maryland, has been violated:
(1) On the Commissioner’s own initiative;
(2) On receipt of a written complaint; or
(3) On referral from another State agency.
B. The Commissioner may require a contractor, subcontractor, or an approved apprenticeship program
to produce records as part of its investigation.
C. The Commissioner may enter a place of business to:
(1) Interview individuals; or
(2) Review and copy records.
D. 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:
(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, if any.
E. 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.
F. 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.
G. If a hearing is not requested within 15 days, the administrative charge, including any penalties,
shall become a final order of the Commissioner.
H. 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.
I. 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:
(1) The Commissioner orders review of the proposed decision; or
(2) The alleged violator submits to the Commissioner 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 Commissioner shall issue an order that affirms, modifies, or vacates the proposed decision.
J. RONALD DEJULIIS
Commissioner of Labor and Industry
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