90 Days of Narrow Escapes and Hard-Fought Wins
The last week of session was full of near misses, and one or two extremely close calls. But once the dust settled (gavel banged?) there was good reason for ABC members to feel, if not joy, then at least relief.
[As challenging as was this Session, Maryland builders certainly had an easier go of it than our friends in Delaware, whose legislature is currently deliberating legislation that would impose union-only agreements on all public construction projects over $5 million and another bill that would require a PLA on all school construction over $1 million! Either bill would deal a devastating blow to Delaware’s economy and its workforce. What’s happening in Delaware needs to serve as a cautionary tale for ABC Members in Maryland; if pro-PLA legislation can gain traction in Delaware, you can be certain forces will attempt something similar here.]
Much like last year’s frenetic session, 2026 proved equally demanding. Over 2,400 bills were introduced across both the House and Senate, with 884 passing and now awaiting the Governor’s signature.
The summary below highlights key priority legislation that ABC either supported or successfully opposed. These outcomes reflect the strong leadership and coordinated efforts of our Joint Legislative Committee, lobbying team, and engaged members who took action throughout the 90-day session. A comprehensive bill tracking report is available upon request.
LABOR & EMPLOYMENT
Maryland Worker Freedom Act (HB 45 / SB 117)
ABC Position: Oppose
RESULTS: BILL DIED IN THE SENATE AFTER PASSING IN THE HOUSE
What were ABC’s Concerns:
- This bill would have prohibited employers from requiring employees to attend meetings involving political or union-related matters.
- Restrictions on employer free speech, potential conflicts with federal labor law, and negative impacts on Maryland’s business climate.
Prevailing Wage Enforcement Expansion (HB 299 / SB 60)
ABC Position: Oppose
RESULTS: BILL DIED IN THE SENATE
What were ABC’s Concerns:
- This bill represents the most significant threat to the Merit Shop this session. The bill significantly expands prevailing wage requirements and enforcement in Maryland. It increases penalties, broadens investigations, and makes general contractors responsible not just for their own compliance, but also for violations anywhere down the subcontracting chain.
- HB 299/SB 60 imposed sweeping joint and several liability on general contractors for the actions of subcontractors, regardless of control, knowledge, or contractual relationship. In practice, this means contractors could be held legally responsible for decisions they do not make and cannot realistically oversee. General contractors do not control subcontractors’ hiring, payroll, or internal operations, and there is no reliable way to verify internal records or detect potential violations.
- ABC built a broad coalition to oppose this legislation, including the Maryland Chamber of Commerce, IEC, subcontractor organizations, MTBMA, NFIB, and numerous other industry partners. This bill timed out on the last day of session. We except this bill to be re-introduced next year.
PROCUREMENT
State Procurement – Transparency and Procedures (HB 193 / SB 213)
ABC Position: Support
RESULTS: BILL PASSED
Why did ABC Support?
- This bill improves transparency and consistency in state contracting by requiring debriefings for unsuccessful bidders, updating conflict-of-interest rules, standardizing contract provisions related to legal changes, and clarifying procedures for change orders.
Prompt Payment Protections (HB 1336 / SB 671)
ABC Position: Support
RESULTS: BILL DIED IN COMMITTEE
Why did ABC Support?
- This bill SB 671 represents an important and necessary step toward strengthening Maryland’s procurement system and protecting contractors and subcontractors who perform work on public projects. SB 671 provided clear standards in many ways.
- Requiring timely payment of undisputed amounts, mandating written notice with reasonable specificity when payments are withheld
- Establishing meaningful interest penalties for late payments, extending these protections to projects involving local government owners
- These provisions create fairness, transparency, and accountability in public contracting. The 2% monthly interest provision ensures that payment obligations are taken seriously and discourages unnecessary delay, while the written notice requirement promotes communication and dispute resolution before problems escalate.
WORKFORCE DEVELOPMENT
Maryland Workforce Apprenticeship Utilization Act (SB 964 / HB 864)
ABC Position: Support with Amendments
RESULT: BILL PASSED
- This bill strengthens Maryland’s construction workforce pipeline by increasing the use of registered apprentices on public projects.
- ABC successfully secured amendments to:
- Refine apprentice-to-journey worker ratios
- Remove unnecessary business size thresholds
- Ensure funding is directed to legitimate construction workforce programs
- Reinstate audit requirements for apprenticeship programs
- Require participation or fund contribution when apprentices are unavailable
Incarcerated Individual Apprenticeship Program (HB 194)
ABC Position: Support
RESULT: BILL PASSED HOUSE; BUT DIED IN THE SENATE
Why did ABC Support?
- This legislation proposed creating apprenticeship opportunities for incarcerated individuals in skilled trades. Participants would work as paid apprentices for public or private employers, with wages administered through the Department of Public Safety and Correctional Services.
- The 2026 session reinforced the importance of sustained advocacy and coalition building. ABC’s engagement ensured that merit shop contractors continue to have a strong voice in Annapolis, successfully shaping outcomes on key issues impacting the construction industry.
TAXES
Unemployment Insurance Modernization Act of 2026 (HB 188 / SB 3)
ABC Position: Opposed
RESULT: BILL DIED IN COMMITTEE
What Were ABC Concerns?
- The legislation would haveincreased maximum benefits and expanded employer funding requirements.
- This legislation proposed significant changes to Maryland’s unemployment insurance (UI) system, including revising how benefits are calculated and how the system is funded.
- The bill would have tied weekly benefits to wages, increased the maximum benefit to 40% of the state’s average weekly wage by 2027, and adjusted the taxable wage base used for employer contributions.
- It also required the state to calculate and publish average wages to determine benefit and contribution levels, while modifying partial unemployment benefit rules.
Prince George’s County – Tax Increment Financing (HB 1247)
ABC Position: Supported w Amendments
RESULT: BILL PASSED
Why did ABC need the bill amended?
- This legislation expands tax increment financing (TIF) tools in Prince George’s County by broadening the definition of an extraordinary development district to include major immersive entertainment venues. It also allows bond proceeds to support acquisition, construction, and rehabilitation of such projects.
- The problem, however, was the bill contained language that would have required contractors to work under a union-only Project Labor Agreement. ABC was successful in stripping out that language during House and Senate debate. The bill now moves to the County Council, where ABC will continue to advocate to keep PLA requirements out of major projects, including the proposed Sphere development.
Commercial Financing Transparency (SB 881 / HB 1007)
ABC Position: Opposed
RESULT: BILL DIED IN COMMITTEE
What Were ABC Concerns?
- We opposed but supported a targeted amendment to exempt equipment financing. This bill aimed to increase transparency in commercial financing through standardized APR disclosures. However, it failed to distinguish between merchant cash advances and equipment financing relied upon by contractors and small businesses.
- Applying consumer-style APR calculations to equipment financing would have misrepresented costs, particularly for financing structures with seasonal payments or project-based terms.
BUSINESS REGULATION
Maryland Transit and Housing Opportunity Act (SB 389 / HB 894)
ABC Position: Support ONLY if amended.
RESULT: PASSED WITH AMENDMENTS
Why did ABC need the bill amended?
- An eleventh-hour effort was successful in stripping Project Labor Agreement language from the bill. This bill will leverage at least 300 acres of station-adjacent land, enabling the production of more than 7,000 new housing units and unlocking nearly $1.4 billion in state and local tax revenue.
- The bill prioritizes state investments in high-capacity rail corridors to advance transit-oriented developments—proposing targeted zoning reforms around high-density rail stations and extending robust financial incentives to spur expedited development. The legislation also extends financial incentives, including designating certain transit-oriented developments as Enterprise Zones and prioritizing MEDCO financing loan program projects for transit-oriented developments.
This spring, we’re rolling out a new member benefit we have been working on for the past year: The ABC/Well Built Contractor. This is a 72-question assessment (it will only take you about 30 minutes to complete) that asks you questions about five key areas of your business:
Culture
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We’ve had GCs and specialty contractors alike – small, large and everything in-between – take this test and to a person they all agreed it was very valuable.
Once you’ve completed the assessment, you’ll receive a clear, objective picture of where you stand—along with insight into your strategy, culture, and operations, and a practical roadmap for what to do next. Your answers and your data are 100% confidential!
And BTW, there’s no additional cost—it’s included as part of your ABC Greater Baltimore membership. We made this investment because we want to provide our members with the best resources available anywhere to grow and strengthen their businesses.
Please share your experience with us after you take the assessment and review the results!
We’re very excited to hear what you think!