Business Regulation (GBR) — Title 8. Home Improvement

“Home improvement” means:

“Home improvement” includes:

“Home improvement” does not include:

“License” means, except where it refers to a license other than one issued under this title, a license issued by the Commission.

“License” includes:

to negotiate or offer to negotiate a home improvement contract with an owner; or

to seek to get a home improvement contract from an owner.

a contractor to perform all or part of a home improvement contract; or

another subcontractor to perform all or part of a subcontract to a home improvement contract.

the United States or an instrumentality of the United States; or

a state or an instrumentality or political subdivision of a state.

require a person to get authorization to do business performing or selling a home improvement; or

regulate the qualifications necessary to do that business.

to regulate the character, performance, or quality of a home improvement by having a system of inspections and permits designed to:

to adopt a system of inspections and permits that requires:

The Commission consists of 9 members, appointed by the Governor with the advice of the Secretary.

Of the 9 members of the Commission:

shall be a member of the general public;

may not be a licensee or otherwise be subject to regulation by the Commission;

may not be required to meet the qualifications for the professional members of the Commission; and

may not, within 1 year before appointment, have had a financial interest in or have received compensation from a person regulated by the Commission.

have a financial interest in or receive compensation from a person regulated by the Commission; or

grade any examination given by or for the Commission.

The term of a member is 4 years and begins on July 1.

The terms of members are staggered as required by the terms in effect for members of the Commission on October 1, 1992.

At the end of a term, a member continues to serve until a successor is appointed and qualifies.

A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.

The Governor may remove a member for incompetence or misconduct.

Except as provided in paragraph (3) of this subsection and subject to paragraph (4) of this subsection, the Governor shall remove a member if the member did not attend at least two–thirds of the Commission meetings held during the prior year while the member was serving on the Commission.

The Governor may allow a member to continue serving if the member has been unable to attend meetings for reasons satisfactory to the Governor and the reasons are made public.

In accordance with § 8–501 of the State Government Article, the chairman shall provide notice to the Governor and the Governor shall appoint a successor.

The Commission may not act unless at least a majority of the members then serving concur.

The Commission shall meet at least once every 2 months.

The Commission may hold meetings at the times and places in the State that it determines.

the attendance record of each Commission meeting, disaggregated by the constituency that the attendee represents pursuant to the attendee’s appointment under § 8–202(a)(2) of this subtitle; and

how many claims were pending as of the date of each meeting.

compensation in accordance with the State budget; and

reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

The Secretary shall appoint an executive director of the Commission.

The executive director serves at the pleasure of the Secretary.

compensation in accordance with the State budget; and

reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

administer and operate the office of the Commission;

be responsible to the Secretary;

keep the official records of the Commission; and

keep the seal of the Commission.

The executive director may employ a staff in accordance with the State budget.

Except as otherwise provided by law, the staff is in the skilled service or professional service, with the exception of special appointments, in the State Personnel Management System.

The executive director shall:

The Commission may set a fee to cover the cost of making and mailing a copy of the current regulations.

If the Commission concludes that continuing conduct of a person alleged to be in violation of this title will result in irreparable or substantial harm to any other person, the Commission may sue for:

If the Commission sues for injunctive relief under this subsection against a person who is not licensed under this title, the Commission need not:

A suit under this section shall be brought in the circuit court for the county where:

all licenses issued under this title;

all expirations, revocations, and suspensions of those licenses; and

all contractors represented by each salesperson who holds a license under this title.

information reasonably related to the administration or enforcement of this title; and

the production of financial records.

The Commission may set by regulation reasonable fees for the Commission’s services.

The fees charged shall be:

an individual who works for a contractor for a salary or wages but who is not a salesperson for the contractor;

a clerical employee, retail clerk, or other employee of a licensed contractor who is not a salesperson, as to a transaction on the premises of the licensed contractor;

a solicitor for a contractor who calls an owner by telephone only;

an architect, electrician, plumber, heating, ventilation, air–conditioning, or refrigeration contractor, or other person who:

a security systems technician licensed under Title 18 of the Business Occupations and Professions Article;

a marine contractor licensed under Title 17, Subtitle 3 of the Environment Article; or

a person who is selling a home improvement to be performed by a person described in item (4) of this subsection.

To take an examination, an applicant shall pay to the Commission or a testing service chosen by the Commission the examination fee set by the Commission to cover the cost of the examination.

The examination fee is nonrefundable.

The Commission shall schedule the applicant for an examination to be held within 45 days after the Commission receives an application for examination.

The examination shall be held at a location:

Except as otherwise provided in this section, the Commission shall determine the subjects, scope, and form of and the passing score for examinations.

The examination shall test:

The competency part of the examination may be oral or written.

The Commission may use a testing service to administer the examinations given under this section.

If the Commission uses a testing service under this subsection, the testing service, subject to the requirements set by the Commission, may:

submit to the Commission an application on the form that the Commission provides;

submit to the Commission with the license application proof of compliance with the insurance requirement of § 8–302.1 of this subtitle, if the applicant is applying for a contractor license;

pay into the Fund the fee required under § 8–404(a) of this title, if the applicant is applying for a contractor license; and

pay to the Commission an application fee set by the Commission.

for an individual applicant, the name and address of the applicant;

for a corporate applicant, the name and address of each officer;

for a partnership applicant, the name and address of each partner;

for a joint venture applicant, the name and address of each party to the joint venture;

if the applicant acts as a contractor through a corporation or limited partnership, the name and address of the resident agent of the corporation or limited partnership in the State;

if the applicant is applying for a contractor license, a complete description of the nature of the contracting business of the applicant;

if the applicant is applying for a salesperson license, a complete description of the duties of the applicant;

a record of the applicant’s experience in the field of home improvement or other construction work, including dates when and addresses where the applicant has resided and done business;

if the applicant provides lead paint abatement services, the Department of the Environment lead paint abatement accreditation number and accreditation expiration date;

whether the applicant has ever held a professional or vocational license in this or any other state; and

whether the applicant has had a professional or vocational license denied, suspended, or revoked.

information about the applicant’s character, experience, and financial stability; and

any other information that the Commission needs.

have submitted to the Commission, by a credit reporting agency approved by the Commission, a credit report that contains the information required by the Commission; or

have paid to the Commission or the Commission’s designee a credit report fee in an amount not to exceed the cost charged by a credit reporting agency approved by the Commission to obtain a credit report that contains the information required by the Commission.

is confidential and is not a public record; but

if relevant, is admissible as evidence in an administrative or judicial proceeding.

whether the application for a license is approved or denied; and

of the reasons for denial, if the application is denied.

If the application is denied, the applicant, within 10 days after the notice of denial is mailed, may request a hearing.

The hearing shall be held in accordance with § 8-312 of this subtitle within 30 days after the date that the Commission receives the request.

The Commission shall make a decision within a reasonable time, but not later than 60 days after the hearing.

may issue a salesperson license only to an individual; and

may not issue a salesperson license unless the Commission has received from a licensed contractor written notice, signed by both the licensed contractor and salesperson, of an employment or other contractual relationship between the licensed contractor and salesperson.

the Commission determines that the applicant has settled all outstanding obligations; and

1 year has passed since the date of conviction.

if the Secretary staggers the terms of licenses, on the date that the Secretary sets; or

if the Secretary does not stagger the terms of licenses, on the first June 30 that comes after the effective date of the license in an odd–numbered year.

At least 1 month before a license expires, the Commission shall mail or electronically transmit to the licensee:

If an electronic transmission under paragraph (1) of this subsection is returned to the Commission as undeliverable, the Commission shall mail to the licensee, at the last known address of the licensee, the materials required under paragraph (1) of this subsection within 10 business days of the date the Commission received the notice that the electronic transmission was undeliverable.

Before a license expires, the licensee periodically may renew it for an additional 2–year term, if the licensee:

A licensee that is incorporated or has its principal office in another state shall pay to the Commission the fee imposed in that state on a similar nonresident business if that fee is higher than the renewal fee set by the Commission.

submit to the Commission, by a credit reporting agency approved by the Commission, a credit report that contains the information required by the Commission; or

pay to the Commission or the Commission’s designee a credit report fee in an amount not to exceed the cost charged by a credit reporting agency approved by the Commission to obtain a credit report that contains the information required by the Commission for renewal of a contractor license.

The Commission shall renew the license of each licensee who meets the requirements of this section.

The Commission may not renew a contractor license unless the contractor submits proof of compliance with the insurance requirement of § 8–302.1 of this subtitle.

submits to the Commission an application for inactive status on the form that the Commission provides;

pays to the Commission an inactive status application fee set by the Commission;

except for the liability insurance requirement of § 8–302.1 of this subtitle, qualifies for an active license; and

returns the license of the licensee to the Commission.

The holder of a contractor license that is on inactive status may not act as a contractor in the State.

The holder of a salesperson license that is on inactive status may not sell a home improvement in the State.

The holder of a contractor license that is on inactive status is not required to meet the liability insurance requirement of § 8–302.1 of this subtitle.

The holder of a contractor license that is on inactive status is not subject to an assessment for the Fund under § 8–404(b) of this title.

A licensee whose license is on inactive status remains responsible for renewing the license as required under § 8–308 of this subtitle.

The holder of a contractor license that is on inactive status may renew the license without complying with the liability insurance requirement of § 8–302.1 of this subtitle.

A licensee whose license is on inactive status shall pay to the Commission a renewal fee set by the Commission.

submits to the Commission an application for reactivation on the form that the Commission provides;

pays to the Commission a reissuance fee set by the Commission; and

meets the requirements for a license, including, in the case of a contractor, the liability insurance requirement under § 8–302.1 of this subtitle.

that contractor the name of each other contractor for whom the individual currently is a salesperson; and

each contractor for whom the individual currently is a salesperson the name of the contractor for whom the individual plans to become a salesperson.

fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another person;

fraudulently or deceptively uses a license;

fails to give the Commission information required by this subtitle about an application for a license;

fails to pass an examination required by this subtitle;

under the laws of the United States or of any state, is convicted of a:

often fails to perform home improvement contracts;

falsifies an account;

engages in fraud;

as a contractor fails to show financial solvency, based on the intended scope and size of the business in relation to total assets, liabilities, credit rating, and net worth;

as a contractor lacks competence, as shown by the performance of an unworkmanlike, inadequate, or incomplete home improvement;

violates this title;

attempts to violate this title;

violates a regulation adopted under this title; or

in the Chesapeake and Atlantic Coastal Bays Critical Area, as defined under § 8–1802 of the Natural Resources Article, fails to comply with:

had no knowledge of the wrongful conduct; or

could not prevent the violation.

the nature of the crime;

the relationship of the crime to the activities authorized by the license;

with respect to a felony, the relevance of the conviction to the fitness and qualification of the applicant or licensee to provide home improvement services;

the length of time since the conviction; and

the behavior and activities of the applicant or licensee before and after the conviction.

For purposes of this subsection, the State is divided into:

The Commission shall set the time and place of the hearing but shall hold the hearing in the appropriate region to accommodate the needs of:

issue subpoenas for the attendance of witnesses to testify or to produce evidence; and

take testimony in the same manner and with the same fees and compensation for mileage as provided in civil cases in the State.

A hearing board shall consist of at least 3 members of the Commission.

Of the members of the hearing board:

A decision of the hearing board shall be:

Unless, within 15 days after the hearing board submits its decision to the Commission, the Commission or a member of the Commission finds that a full hearing by the Commission is required:

the person to be paid or compensated is licensed;

the person to be paid or compensated is not subject to the licensing requirements of this title; or

the transaction for which the consideration is to be paid is not subject to this title.

is not relieved of outstanding obligations; and

may complete and be paid under a home improvement contract that is made but not performed on the date of the expiration, suspension, or revocation.

denied after a hearing; or

revoked.

establish a Home Improvement Guaranty Fund;

keep the Fund at a level of at least $1,000,000; and

submit a report detailing actions being taken to restore the balance of the Fund to a sustainable level to the Senate Committee on Education, Energy, and the Environment and the House Economic Matters Committee within 30 days of projecting that the Fund balance will be less than $1,000,000.

Except as otherwise provided by law, the Commission shall deposit all money collected to the credit of the Fund with the State Treasurer for placement in a special account.

If the Commission finds that, because of pending claims, the amount of the Fund may fall below $1,000,000, the Commission shall assess each contractor a fee of $50.

However, under this subsection the Commission may not assess a contractor more than $150 in a calendar year.

more than $30,000 to one claimant for acts or omissions of one contractor;

more than $250,000 to all claimants for acts or omissions of one contractor unless, after the Commission has paid out $250,000 on account of acts or omissions of the contractor, the contractor reimburses $250,000 to the Fund;

an amount for attorney fees, consequential damages, court costs, interest, personal injury damages, or punitive damages;

an amount as a result of a default judgment in court; or

an amount in excess of the amount paid by or on behalf of the claimant to the contractor against whom the claim is filed.

A claim against the Fund based on the act or omission of a particular contractor may not be made by:

An owner may make a claim against the Fund only if the owner:

send a copy of the claim to the contractor alleged to be responsible for the actual loss; and

require a written response to the claim within 10 days.

The Commission:

On the basis of its review and any investigation, the Commission may:

The Commission shall send the proposed order to the claimant and the contractor, at the most recent address on record with the Commission, by:

Within 21 days after service, receipt, or attempted delivery of the proposed order, the claimant or contractor may submit to the Commission:

If the claimant or contractor submits a timely exception to the proposed order, the Commission may:

Unless the claimant or contractor submits a timely request for a hearing or a timely exception, the proposed order is final.

At a hearing on a claim, the claimant has the burden of proof.

If a subcontractor or salesperson is necessary to adjudicate a claim fairly, the Commission shall issue a subpoena for that person to appear at the hearing.

The Commission may join a proceeding on a claim against the Fund with a disciplinary proceeding against a licensed contractor under Subtitle 3 of this title, if the disciplinary hearing is based on the same facts alleged in the claim.

In a consolidated proceeding, the claimant is a party and may participate in the hearing to the extent necessary to establish the claim.

Notwithstanding § 8-402(2) of this subtitle, a claimant may not concurrently submit a claim to recover from the Fund and bring an action in a court of competent jurisdiction against a contractor based on the same facts alleged in the claim.

If the claimant brings an action in a court of competent jurisdiction based on the same facts alleged in a pending claim, the Commission shall stay its proceedings on the claim until there is a final judgment and all rights to appeal are exhausted.

the decision or order of the Commission is final in accordance with Title 10, Subtitle 2 of the State Government Article and all rights of appeal are exhausted; or

the claimant provides the Commission with a certified copy of a final judgment of a court of competent jurisdiction or a final award in arbitration, with all rights of appeal exhausted, in which the court or arbitrator:

Except as otherwise provided in this subsection, the Commission shall pay approved claims in the order submitted.

If approved claims submitted to the Commission against a contractor exceed $250,000 less the amount of unreimbursed claim payments previously made for the contractor, the Commission may pay the approved claims proportionately so that each claimant receives the same percentage payment of the claims.

After the Fund is reimbursed, the Commission shall pay unsatisfied approved claims.

when enough money is deposited in the Fund; and

in the order that each claim originally was filed with a court of competent jurisdiction or submitted to the Commission.

After the Commission pays a claim from the Fund:

All money that the Commission recovers on a claim shall be deposited in the Fund.

a claim was paid from the Fund on account of the contractor;

the contractor has not reimbursed the Fund in full;

the contractor was given notice and an opportunity to participate in a hearing on the claim before the Commission; and

The lien in favor of the State created by this subsection may not attach to specific property until the State Central Collection Unit records written notice of the lien in the office of the clerk of the court for the county in which the property subject to the lien or any part of the property is located.

The lien in favor of the State created by this subsection does not have priority as to any specific property over any person who is a lienholder of record at the time the notice required under paragraph (2) of this subsection is recorded.

The notice required under paragraph (2) of this subsection shall contain:

Upon presentation of a release of any lien in favor of the State created by this subsection, the clerk of the court in which the lien is recorded and indexed shall record and index the release and shall note in the lien docket the date the release is filed and the fact that the lien is released.

The notice required under paragraph (2) of this subsection and any release filed under paragraph (5) of this subsection shall be indexed with the judgment lien records maintained by the office of the clerk of the court where the notice is recorded.

The clerk may collect a reasonable fee for recording and indexing each notice of lien or release of any lien under this subsection.

the amount paid from the Fund; and

interest on that amount at an annual rate of at least 10%, as set by the Commission.

did not know of the wrongful conduct; or

could not prevent the violation.

be in writing and legible;

describe clearly each document that it incorporates; and

be signed by each party to the home improvement contract.

In addition to any other matters on which the parties lawfully agree, each home improvement contract shall contain:

If payment for work performed under the home improvement contract will be secured by an interest in residential real estate, a written notice in not smaller than 10 point bold type that is on the first page of the contract shall state in substantially the following form: “This contract creates a mortgage or lien against your property to secure payment and may cause a loss of your property if you fail to pay the amount agreed upon. You have the right to consult an attorney. You have the right to rescind this contract within 3 business days after the date you sign it by notifying the contractor in writing that you are rescinding the contract.”

The notice under paragraph (2) of this subsection shall be independently initialed by the homeowner.

Except as provided in paragraph (2) of this subsection, a home improvement contract for the installation of a solar energy generating system on the roof of a building shall include the installation of a barrier that meets industry standards to prevent wildlife intrusion and damage to the solar energy generating system or the underlying roof.

A home improvement contract for the installation of a solar energy generating system on the roof of a building is not required to include the installation of a barrier as specified under paragraph (1) of this subsection if the customer has waived the installation of the barrier after being informed of the cost of the barrier and the risks of not installing a wildlife barrier.

represent concurrently more than 1 contractor in selling a home improvement;

use a home improvement contract form that does not disclose the name of the contractor; or

choose a contractor for an owner.

accept compensation only from the contractor that the salesperson represents in the sale; and

pay compensation only for that contractor.

the cost to the contractor or salesperson does not exceed $25;

the gift is not contingent on making a home improvement contract; and

the customer does not receive more than 1 item for 1 transaction.

the terms of a State or local permit, license, or approval issued for home improvement; or

any State or local law, approved plan, or other legal requirement.

make or accept an assignment or negotiation of the right to receive payment from an owner under a home improvement contract; or

get or grant credit or a loan on the security of the right to receive payment under a home improvement contract.

directly or indirectly publish a false, deceptive, or misleading advertisement about home improvement; or

advertise or offer, by any means, to perform a home improvement if the person does not intend to accept a home improvement contract:

The Commission may impose on a person who violates this title, including § 8–607(4) of this subtitle, a civil penalty not exceeding $5,000 for each violation, whether or not the person is licensed under this title.

The Commission shall pay any penalty collected under this subsection into the General Fund of the State.

the seriousness of the violation;

the good faith of the violator;

any previous violations;

the harmful effect of the violation on the complainant, the public, and the business of home improvement;

the assets of the violator; and

any other relevant factors.

The Commission may establish by regulation a schedule of violations and fines to be used for civil citations issued under this title.

A citation issued by the Commission shall include:

The Commission shall retain a copy of the citation.

All money collected under this subsection shall be paid in accordance with § 8–403(b) of this title.