<section article="gbr" article_name="Business Regulation" number="8-101" title_number="8" title_name="Home Improvement" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Commission” means the Maryland Home Improvement Commission.</text> </level> <level label="c"> <text>“Contractor” means a person, other than an employee of an owner, who performs or offers or agrees to perform a home improvement for an owner.</text> </level> <level label="d"> <text>“Contractor license” means a license issued by the Commission to act as a contractor.</text> </level> <level label="e"> <text>“Fund” means the Home Improvement Guaranty Fund.</text> </level> <level label="f"> <text>“Hearing board” means a home improvement hearing board appointed by the Commission under § 8-313 of this title.</text> </level> <level label="g"> <level label="1"> <text>“Home improvement” means:</text> <level label="i"> <text>the addition to or alteration, conversion, improvement, modernization, remodeling, repair, or replacement of a building or part of a building that is used or designed to be used as a residence or dwelling place or a structure adjacent to that building; or</text> </level> <level label="ii"> <text>an improvement to land adjacent to the building.</text> </level> </level> <level label="2"> <text>“Home improvement” includes:</text> <level label="i"> <text>construction, improvement, or replacement, on land adjacent to the building, of a driveway, fall–out shelter, fence, garage, landscaping, deck, pier, porch, or swimming pool;</text> </level> <level label="ii"> <text>a shore erosion control project, as defined under § 8–1001 of the Natural Resources Article, for a residential property;</text> </level> <level label="iii"> <text>connection, installation, or replacement, in the building or structure, of a dishwasher, disposal, or refrigerator with an icemaker to existing exposed household plumbing lines;</text> </level> <level label="iv"> <text>installation, in the building or structure, of an awning, fire alarm, or storm window; and</text> </level> <level label="v"> <text>work done on individual condominium units.</text> </level> </level> <level label="3"> <text>“Home improvement” does not include:</text> <level label="i"> <text>construction of a new home;</text> </level> <level label="ii"> <text>work done to comply with a guarantee of completion for a new building project;</text> </level> <level label="iii"> <text>connection, installation, or replacement of an appliance to existing exposed plumbing lines that requires alteration of the plumbing lines;</text> </level> <level label="iv"> <text>sale of materials, if the seller does not arrange to perform or does not perform directly or indirectly any work in connection with the installation or application of the materials;</text> </level> <level label="v"> <text>work done on apartment buildings that contain four or more single–family units; or</text> </level> <level label="vi"> <text>work done on the commonly owned areas of condominiums.</text> </level> </level> </level> <level label="h"> <text>“Home improvement contract” means an oral or written agreement between a contractor and owner for the contractor to perform a home improvement.</text> </level> <level label="i"> <level label="1"> <text>“License” means, except where it refers to a license other than one issued under this title, a license issued by the Commission.</text> </level> <level label="2"> <text>“License” includes:</text> <level label="i"> <text>a contractor license; and</text> </level> <level label="ii"> <text>a salesperson license.</text> </level> </level> </level> <level label="j"> <text>“Licensed contractor” means a person who is licensed by the Commission to act as a contractor.</text> </level> <level label="k"> <text>“Owner” includes a homeowner, tenant, or other person who buys, contracts for, orders, or is entitled to a home improvement.</text> </level> <level label="l"> <text>“Salesperson” means a person who sells a home improvement.</text> </level> <level label="m"> <text>“Salesperson license” means a license issued by the Commission to sell a home improvement.</text> </level> <level label="n"> <text>“Sell a home improvement” means:</text> <level label="1"> <text>to negotiate or offer to negotiate a home improvement contract with an owner; or</text> </level> <level label="2"> <text>to seek to get a home improvement contract from an owner.</text> </level> </level> <level label="o"> <text>“Subcontractor” means a person, other than a laborer or supplier of materials, who makes an oral or written agreement with:</text> <level label="1"> <text>a contractor to perform all or part of a home improvement contract; or</text> </level> <level label="2"> <text>another subcontractor to perform all or part of a subcontract to a home improvement contract.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-102" title_number="8" title_name="Home Improvement" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>This title does not apply to a transaction of:</text> <level label="1"> <text>the United States or an instrumentality of the United States; or</text> </level> <level label="2"> <text>a state or an instrumentality or political subdivision of a state.</text> </level> </level> <level label="b"> <text>A county or municipal corporation of the State may not:</text> <level label="1"> <text>require a person to get authorization to do business performing or selling a home improvement; or</text> </level> <level label="2"> <text>regulate the qualifications necessary to do that business.</text> </level> </level> <level label="c"> <text>This title does not limit the power of a county or municipal corporation:</text> <level label="1"> <text>to regulate the character, performance, or quality of a home improvement by having a system of inspections and permits designed to:</text> <level label="i"> <text>ensure compliance with and help to enforce applicable State and local building laws; or</text> </level> <level label="ii"> <text>enforce other laws necessary to protect the public health and safety; or</text> </level> </level> <level label="2"> <text>to adopt a system of inspections and permits that requires:</text> <level label="i"> <text>submission to and approval by the county or municipal corporation of plans and specifications for an installation, before construction of the installation begins; and</text> </level> <level label="ii"> <text>inspection of work done.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-103" title_number="8" title_name="Home Improvement" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>The provisions of this title may not be waived.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-201" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <text>There is a Maryland Home Improvement Commission in the Department.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-202" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <level label="a"> <level label="1"> <text>The Commission consists of 9 members, appointed by the Governor with the advice of the Secretary.</text> </level> <level label="2"> <text>Of the 9 members of the Commission:</text> <level label="i"> <text>3 shall have experience in some phase of the business of home improvement;</text> </level> <level label="ii"> <text>at least 1 shall have experience in the business of banking or finance;</text> </level> <level label="iii"> <text>4 shall be consumer members; and</text> </level> <level label="iv"> <text>1 shall have experience in some phase of the business of home improvement or shall be a consumer member.</text> </level> </level> </level> <level label="b"> <text>Each member of the Commission shall have been a citizen and resident of the State for at least 5 years before appointment.</text> </level> <level label="c"> <text>Each consumer member of the Commission:</text> <level label="1"> <text>shall be a member of the general public;</text> </level> <level label="2"> <text>may not be a licensee or otherwise be subject to regulation by the Commission;</text> </level> <level label="3"> <text>may not be required to meet the qualifications for the professional members of the Commission; and</text> </level> <level label="4"> <text>may not, within 1 year before appointment, have had a financial interest in or have received compensation from a person regulated by the Commission.</text> </level> </level> <level label="d"> <text>While a member of the Commission, a consumer member may not:</text> <level label="1"> <text>have a financial interest in or receive compensation from a person regulated by the Commission; or</text> </level> <level label="2"> <text>grade any examination given by or for the Commission.</text> </level> </level> <level label="e"> <text>Before taking office, each appointee to the Commission shall take the oath required by Article I, § 9 of the Maryland Constitution.</text> </level> <level label="f"> <level label="1"> <text>The term of a member is 4 years and begins on July 1.</text> </level> <level label="2"> <text>The terms of members are staggered as required by the terms in effect for members of the Commission on October 1, 1992.</text> </level> <level label="3"> <text>At the end of a term, a member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="g"> <level label="1"> <text>The Governor may remove a member for incompetence or misconduct.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-203" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <text>With the advice of the Secretary, the Governor shall designate a chairman from among the members of the Commission.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-204" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <level label="a"> <level label="1"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, a majority of the members then serving on the Commission is a quorum.</text> </level> <level label="ii"> <text>A quorum may not be fewer than 4 members.</text> </level> </level> <level label="2"> <text>The Commission may not act unless at least a majority of the members then serving concur.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commission shall meet at least once every 2 months.</text> </level> <level label="2"> <text>The Commission may hold meetings at the times and places in the State that it determines.</text> </level> </level> <level label="c"> <text>On or before December 1 of each year, the Commission shall report to the Senate Education, Health, and Environmental Affairs Committee and the House Economic Matters Committee, in accordance with § 2–1257 of the State Government Article, regarding:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>how many claims were pending as of the date of each meeting.</text> </level> </level> <level label="d"> <text>Each member of the Commission is entitled to:</text> <level label="1"> <text>compensation in accordance with the State budget; and</text> </level> <level label="2"> <text>reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> <level label="e"> <text>The Commission shall have its office in Baltimore City.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-205" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <level label="a"> <level label="1"> <text>The Secretary shall appoint an executive director of the Commission.</text> </level> <level label="2"> <text>The executive director serves at the pleasure of the Secretary.</text> </level> </level> <level label="b"> <text>The executive director shall devote full time to the duties of office.</text> </level> <level label="c"> <text>The executive director is entitled to:</text> <level label="1"> <text>compensation in accordance with the State budget; and</text> </level> <level label="2"> <text>reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> <level label="d"> <text>While employed as executive director, the executive director shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under § 5–108 of the State Government Article.</text> </level> <level label="e"> <text>The executive director shall:</text> <level label="1"> <text>administer and operate the office of the Commission;</text> </level> <level label="2"> <text>be responsible to the Secretary;</text> </level> <level label="3"> <text>keep the official records of the Commission; and</text> </level> <level label="4"> <text>keep the seal of the Commission.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-206" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <level label="a"> <level label="1"> <text>The executive director may employ a staff in accordance with the State budget.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>The executive director shall employ an investigative staff in accordance with the State budget.</text> </level> <level label="c"> <text>The executive director may contract with an expert, subject to the State budget, if the services of an expert are required in a particular case.</text> </level> <level label="d"> <text>Investigative staff and contractual experts shall investigate only complaints about home improvement.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-207" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <level label="a"> <text>The Commission may adopt and enforce regulations to carry out this title.</text> </level> <level label="b"> <level label="1"> <text>The executive director shall:</text> <level label="i"> <text>compile and keep in the office of the Commission a set of current regulations adopted under this title; and</text> </level> <level label="ii"> <text>make a copy of the regulations for anyone who asks for one.</text> </level> </level> <level label="2"> <text>The Commission may set a fee to cover the cost of making and mailing a copy of the current regulations.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-208" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <level label="a"> <text>The Commission shall administer and enforce this title.</text> </level> <level label="b"> <level label="1"> <text>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:</text> <level label="i"> <text>injunctive relief against the conduct;</text> </level> <level label="ii"> <text>an order for satisfactory completion of a home improvement contract; or</text> </level> <level label="iii"> <text>restitution.</text> </level> </level> <level label="2"> <text>If the Commission sues for injunctive relief under this subsection against a person who is not licensed under this title, the Commission need not:</text> <level label="i"> <text>post bond; or</text> </level> <level label="ii"> <text>show that no adequate remedy at law exists.</text> </level> </level> <level label="3"> <text>A suit under this section shall be brought in the circuit court for the county where:</text> <level label="i"> <text>the alleged violation occurs; or</text> </level> <level label="ii"> <text>the principal place of business of the alleged violator is located.</text> </level> </level> </level> <level label="c"> <text>An administrative hearing and adjudication by the Commission is not a prerequisite to prosecution of a person under § 8-601 of this title.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-209" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <level label="a"> <text>The Commission shall keep available for public inspection during office hours a record of:</text> <level label="1"> <text>all licenses issued under this title;</text> </level> <level label="2"> <text>all expirations, revocations, and suspensions of those licenses; and</text> </level> <level label="3"> <text>all contractors represented by each salesperson who holds a license under this title.</text> </level> </level> <level label="b"> <text>The Commission shall collect a fee of $1 per page for each copy of a document in the Commission office.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-210" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <text>On request of any person and payment of a fee set by the Commission, the Commission shall certify the licensing status of a person that is the subject of the request.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-211" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <text>Each month the Commission shall give the building and permits department and the office of consumer affairs of each county a current list of all licensees and may provide other information relevant to this title.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-212" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <level label="a"> <text>The Commission at any time may require of an applicant or licensee:</text> <level label="1"> <text>information reasonably related to the administration or enforcement of this title; and</text> </level> <level label="2"> <text>the production of financial records.</text> </level> </level> <level label="b"> <text>The Commission shall have a seal.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-213" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <level label="a"> <level label="1"> <text>The Commission may set by regulation reasonable fees for the Commission’s services.</text> </level> <level label="2"> <text>The fees charged shall be:</text> <level label="i"> <text>set so as to produce funds to approximate the cost of maintaining the Commission; and</text> </level> <level label="ii"> <text>based on the calculations performed by the Secretary under § 2–106.10 of this article.</text> </level> </level> </level> <level label="b"> <text>The Commission shall publish a schedule of fees set by the Commission.</text> </level> <level label="c"> <text>Except as otherwise provided by law, the Commission shall pay all fees collected under this title to the Comptroller.</text> </level> <level label="d"> <text>The Comptroller shall distribute the fees to the Maryland Home Improvement Commission Special Fund established in § 2–106.9 of this article.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-214" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <text>The Commission exercises its powers and performs its duties subject to the authority of the Secretary.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-215" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <text>The Commission shall publish on its Web site consumer education materials that specify the protections available to consumers through the Commission, including the availability of compensation from the Guaranty Fund.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-216" title_number="8" title_name="Home Improvement" subtitle_number="2" subtitle_name="Maryland Home Improvement Commission"> <text>The Commission shall develop a searchable Web site that includes a listing of licensed contractors and information relating to any final disciplinary action taken by the Commission against a licensee in each licensee’s profile.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-301" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>Except as otherwise provided in this title or §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person must have a contractor license whenever the person acts as a contractor in the State.</text> </level> <level label="b"> <text>Except as otherwise provided in this title or §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person must have a salesperson license or contractor license whenever the person sells a home improvement in the State.</text> </level> <level label="c"> <text>This section does not apply to:</text> <level label="1"> <text>an individual who works for a contractor for a salary or wages but who is not a salesperson for the contractor;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>a solicitor for a contractor who calls an owner by telephone only;</text> </level> <level label="4"> <text>an architect, electrician, plumber, heating, ventilation, air–conditioning, or refrigeration contractor, or other person who:</text> <level label="i"> <text>is required by State or local law to meet standards of competency or experience before engaging in an occupation or profession;</text> </level> <level label="ii"> <text>currently is licensed in that occupation or profession under State or local law; and</text> </level> <level label="iii"> <text>is:</text> <level label="1"> <text>acting only within the scope of that occupation or profession; or</text> </level> <level label="2"> <text>installing a central heating or air–conditioning system;</text> </level> </level> </level> <level label="5"> <text>a security systems technician licensed under Title 18 of the Business Occupations and Professions Article;</text> </level> <level label="6"> <text>a marine contractor licensed under Title 17, Subtitle 3 of the Environment Article; or</text> </level> <level label="7"> <text>a person who is selling a home improvement to be performed by a person described in item (4) of this subsection.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-302" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>An applicant for a contractor’s or salesperson’s license must pass the examination prior to submitting an application for a license.</text> </level> <level label="b"> <text>An applicant may receive a license only if the applicant passes the examination that the Commission requires.</text> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The examination fee is nonrefundable.</text> </level> </level> <level label="d"> <level label="1"> <text>The Commission shall schedule the applicant for an examination to be held within 45 days after the Commission receives an application for examination.</text> </level> <level label="2"> <text>The examination shall be held at a location:</text> <level label="i"> <text>that is within the general geographic area where the applicant resides, if the applicant resides in the State; or</text> </level> <level label="ii"> <text>that the Commission determines, if the applicant resides out of State.</text> </level> </level> </level> <level label="e"> <text>The Commission shall give each qualified applicant notice of the time and place of examination.</text> </level> <level label="f"> <level label="1"> <text>Except as otherwise provided in this section, the Commission shall determine the subjects, scope, and form of and the passing score for examinations.</text> </level> <level label="2"> <text>The examination shall test:</text> <level label="i"> <text>the applicant’s knowledge of the law about home improvement; and</text> </level> <level label="ii"> <text>the applicant’s competency to engage in the licensed occupation.</text> </level> </level> <level label="3"> <text>The competency part of the examination may be oral or written.</text> </level> </level> <level label="g"> <level label="1"> <text>The Commission may use a testing service to administer the examinations given under this section.</text> </level> <level label="2"> <text>If the Commission uses a testing service under this subsection, the testing service, subject to the requirements set by the Commission, may:</text> <level label="i"> <text>set the time and place of examinations;</text> </level> <level label="ii"> <text>give qualified applicants notice of the time and place of examinations; and</text> </level> <level label="iii"> <text>furnish any other information that the Commission may require the testing service to provide.</text> </level> </level> </level> <level label="h"> <text>Within 30 days after the first meeting of the Commission after an examination date, the Commission shall notify an applicant in writing of the examination score of the applicant.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-302.1" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>An applicant for a contractor license shall maintain general liability insurance in the amount of at least $500,000.</text> </level> <level label="b"> <text>A licensed contractor shall maintain general liability insurance in the amount of at least $500,000.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-302.2" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <text>An applicant for a contractor license shall have:</text> <level label="1"> <text>at least 2 years of trade experience that is satisfactory to the Commission, under regulations adopted by the Commission; or</text> </level> <level label="2"> <text>comparable educational training to be determined by regulations adopted by the Commission.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-303" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>An applicant for a license shall:</text> <level label="1"> <text>submit to the Commission an application on the form that the Commission provides;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>pay into the Fund the fee required under § 8–404(a) of this title, if the applicant is applying for a contractor license; and</text> </level> <level label="4"> <text>pay to the Commission an application fee set by the Commission.</text> </level> </level> <level label="b"> <text>In addition to any other information required on an application form, the form shall require:</text> <level label="1"> <text>for an individual applicant, the name and address of the applicant;</text> </level> <level label="2"> <text>for a corporate applicant, the name and address of each officer;</text> </level> <level label="3"> <text>for a partnership applicant, the name and address of each partner;</text> </level> <level label="4"> <text>for a joint venture applicant, the name and address of each party to the joint venture;</text> </level> <level label="5"> <text>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;</text> </level> <level label="6"> <text>if the applicant is applying for a contractor license, a complete description of the nature of the contracting business of the applicant;</text> </level> <level label="7"> <text>if the applicant is applying for a salesperson license, a complete description of the duties of the applicant;</text> </level> <level label="8"> <text>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;</text> </level> <level label="9"> <text>if the applicant provides lead paint abatement services, the Department of the Environment lead paint abatement accreditation number and accreditation expiration date;</text> </level> <level label="10"> <text>whether the applicant has ever held a professional or vocational license in this or any other state; and</text> </level> <level label="11"> <text>whether the applicant has had a professional or vocational license denied, suspended, or revoked.</text> </level> </level> <level label="c"> <text>To evaluate the qualifications of an applicant for a license, the Commission may ask the applicant for:</text> <level label="1"> <text>information about the applicant’s character, experience, and financial stability; and</text> </level> <level label="2"> <text>any other information that the Commission needs.</text> </level> </level> <level label="d"> <text>If the applicant is applying for a contractor license, the applicant shall:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <text>Financial information that an applicant submits to the Commission:</text> <level label="1"> <text>is confidential and is not a public record; but</text> </level> <level label="2"> <text>if relevant, is admissible as evidence in an administrative or judicial proceeding.</text> </level> </level> <level label="f"> <text>An applicant 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 application fee set by the Commission.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-305" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>Within 30 days after the first meeting of the Commission after submission of a completed application, the Commission shall notify an applicant in writing:</text> <level label="1"> <text>whether the application for a license is approved or denied; and</text> </level> <level label="2"> <text>of the reasons for denial, if the application is denied.</text> </level> </level> <level label="b"> <level label="1"> <text>If the application is denied, the applicant, within 10 days after the notice of denial is mailed, may request a hearing.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>The Commission shall make a decision within a reasonable time, but not later than 60 days after the hearing.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-306" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>The Commission shall issue a license to each applicant who meets the requirements of this subtitle.</text> </level> <level label="b"> <text>The Commission:</text> <level label="1"> <text>may issue a salesperson license only to an individual; and</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>Except as otherwise provided in subsection (d) of this section, the Commission may not issue a license to an applicant for a contractor license or salesperson license who has been convicted of violating § 8–601 of this title.</text> </level> <level label="d"> <text>The Commission may issue a contractor license or salesperson license to an applicant who has been convicted of violating § 8–601 of this title if:</text> <level label="1"> <text>the Commission determines that the applicant has settled all outstanding obligations; and</text> </level> <level label="2"> <text>1 year has passed since the date of conviction.</text> </level> </level> <level label="e"> <text>The Commission may not issue a contractor license to an applicant unless the applicant has submitted to the Commission proof of compliance with the insurance requirement of § 8-302.1 of this subtitle.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-307" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>A contractor license authorizes the licensee to act as a contractor or subcontractor and to sell a home improvement.</text> </level> <level label="b"> <text>A salesperson license authorizes the licensee to sell a home improvement.</text> </level> <level label="c"> <text>A license issued under this subtitle does not authorize the licensee to engage in a business or provide a service that may be engaged in or provided only by a person licensed under other State or local law.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-308" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>The Secretary may stagger the terms of licenses.</text> </level> <level label="b"> <text>Unless a license is renewed for a 2–year term as provided in this section, the license expires:</text> <level label="1"> <text>if the Secretary staggers the terms of licenses, on the date that the Secretary sets; or</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>At least 1 month before a license expires, the Commission shall mail or electronically transmit to the licensee:</text> <level label="i"> <text>a renewal application form; and</text> </level> <level label="ii"> <text>a notice that states:</text> <level label="1"> <text>the date on which the current license expires; and</text> </level> <level label="2"> <text>the amount of the renewal fee.</text> </level> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <level label="1"> <text>Before a license expires, the licensee periodically may renew it for an additional 2–year term, if the licensee:</text> <level label="i"> <text>otherwise is entitled to be licensed;</text> </level> <level label="ii"> <text>submits to the Commission a renewal application on the form that the Commission provides;</text> </level> <level label="iii"> <text>submits to the Commission proof of compliance with the insurance requirement of § 8–302.1 of this subtitle, if the licensee is renewing a contractor license;</text> </level> <level label="iv"> <text>submits to the Commission the Department of the Environment lead paint abatement accreditation number and accreditation expiration date, if the licensee provides lead paint abatement services; and</text> </level> <level label="v"> <text>pays to the Commission a renewal fee set by the Commission.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <text>For renewal of a contractor license, the licensee shall:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="f"> <level label="1"> <text>The Commission shall renew the license of each licensee who meets the requirements of this section.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="g"> <text>A licensed contractor shall give the Commission notice of the cancellation of insurance required under § 8–302.1 of this subtitle at least 10 days before the effective date of the cancellation.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-308.1" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>The Commission shall place the license of a licensee on inactive status, and issue an inactive status certificate to the licensee, if the licensee:</text> <level label="1"> <text>submits to the Commission an application for inactive status on the form that the Commission provides;</text> </level> <level label="2"> <text>pays to the Commission an inactive status application fee set by the Commission;</text> </level> <level label="3"> <text>except for the liability insurance requirement of § 8–302.1 of this subtitle, qualifies for an active license; and</text> </level> <level label="4"> <text>returns the license of the licensee to the Commission.</text> </level> </level> <level label="b"> <level label="1"> <text>The holder of a contractor license that is on inactive status may not act as a contractor in the State.</text> </level> <level label="2"> <text>The holder of a salesperson license that is on inactive status may not sell a home improvement in the State.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <text>The placement of a license on inactive status does not affect the power of the Commission to suspend or revoke the license or to take any other disciplinary action against the licensee.</text> </level> <level label="e"> <level label="1"> <text>A licensee whose license is on inactive status remains responsible for renewing the license as required under § 8–308 of this subtitle.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>A licensee whose license is on inactive status shall pay to the Commission a renewal fee set by the Commission.</text> </level> </level> <level label="f"> <text>The Commission shall reactivate the license of a licensee that is on inactive status and reissue the license to the licensee, if the licensee:</text> <level label="1"> <text>submits to the Commission an application for reactivation on the form that the Commission provides;</text> </level> <level label="2"> <text>pays to the Commission a reissuance fee set by the Commission; and</text> </level> <level label="3"> <text>meets the requirements for a license, including, in the case of a contractor, the liability insurance requirement under § 8–302.1 of this subtitle.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-309" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <text>Within 10 days, a licensee shall notify the Commission of a change of control in ownership, management, address, or trade name.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-310" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>A salesperson may not represent more than 2 contractors at a time.</text> </level> <level label="b"> <text>Before an individual becomes a salesperson for a contractor, the individual shall tell:</text> <level label="1"> <text>that contractor the name of each other contractor for whom the individual currently is a salesperson; and</text> </level> <level label="2"> <text>each contractor for whom the individual currently is a salesperson the name of the contractor for whom the individual plans to become a salesperson.</text> </level> </level> <level label="c"> <text>When an individual ceases to be a salesperson for a contractor, the contractor shall give the Commission written notice of the cessation.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-311" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>Subject to the hearing provisions of § 8–312 of this subtitle, the Commission may deny a license to an applicant, reprimand a licensee, or suspend or revoke a license if the applicant or licensee or the management personnel of the applicant or licensee:</text> <level label="1"> <text>fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another person;</text> </level> <level label="2"> <text>fraudulently or deceptively uses a license;</text> </level> <level label="3"> <text>fails to give the Commission information required by this subtitle about an application for a license;</text> </level> <level label="4"> <text>fails to pass an examination required by this subtitle;</text> </level> <level label="5"> <text>under the laws of the United States or of any state, is convicted of a:</text> <level label="i"> <text>felony; or</text> </level> <level label="ii"> <text>misdemeanor that is directly related to the fitness and qualification of the applicant or licensee to engage in home improvement services;</text> </level> </level> <level label="6"> <text>often fails to perform home improvement contracts;</text> </level> <level label="7"> <text>falsifies an account;</text> </level> <level label="8"> <text>engages in fraud;</text> </level> <level label="9"> <text>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;</text> </level> <level label="10"> <text>as a contractor lacks competence, as shown by the performance of an unworkmanlike, inadequate, or incomplete home improvement;</text> </level> <level label="11"> <text>violates this title;</text> </level> <level label="12"> <text>attempts to violate this title;</text> </level> <level label="13"> <text>violates a regulation adopted under this title; or</text> </level> <level label="14"> <text>in the Chesapeake and Atlantic Coastal Bays Critical Area, as defined under § 8–1802 of the Natural Resources Article, fails to comply with:</text> <level label="i"> <text>the terms of a State or local permit, license, or approval issued for home improvement; or</text> </level> <level label="ii"> <text>any State or local law, an approved plan, or other legal requirement.</text> </level> </level> </level> <level label="b"> <text>Subject to the hearing provisions of § 8–312 of this subtitle, the Commission may reprimand a contractor or suspend or revoke the license of a contractor for a violation of this title by an agent, director, employee, manager, officer, partner, or salesperson of the contractor, unless the Commission finds that the contractor or management personnel of the contractor:</text> <level label="1"> <text>had no knowledge of the wrongful conduct; or</text> </level> <level label="2"> <text>could not prevent the violation.</text> </level> </level> <level label="c"> <text>Instead of or in addition to reprimanding a licensee or suspending or revoking a license, the Commission may impose a civil penalty under § 8-620 of this title.</text> </level> <level label="d"> <text>The Commission shall consider the following facts in the granting, denial, renewal, suspension, or revocation of a license or the reprimand of a licensee when an applicant or licensee is convicted of a felony or misdemeanor described in subsection (a)(5) of this section:</text> <level label="1"> <text>the nature of the crime;</text> </level> <level label="2"> <text>the relationship of the crime to the activities authorized by the license;</text> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>the length of time since the conviction; and</text> </level> <level label="5"> <text>the behavior and activities of the applicant or licensee before and after the conviction.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-312" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>Except as otherwise provided in § 10–226 of the State Government Article, before the Commission takes any final action under § 8–311 of this subtitle, or if requested under § 8–620(c) of this title, it shall give the person against whom the action is contemplated an opportunity for a hearing before the Commission or, as provided under § 8–313 of this subtitle, a hearing board.</text> </level> <level label="b"> <text>The Commission shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="c"> <text>The Commission may administer oaths in a proceeding under this section.</text> </level> <level label="d"> <text>The hearing notice to be given to the person shall be sent at least 10 days before the hearing by certified mail to the business address of the licensee on record with the Commission.</text> </level> <level label="e"> <level label="1"> <text>For purposes of this subsection, the State is divided into:</text> <level label="i"> <text>the region that includes Allegany, Carroll, Frederick, Garrett, and Washington counties;</text> </level> <level label="ii"> <text>the region that includes Anne Arundel, Calvert, Charles, and St. Mary’s counties;</text> </level> <level label="iii"> <text>the region that includes Baltimore City and Baltimore and Howard counties;</text> </level> <level label="iv"> <text>the region that includes Caroline, Cecil, Dorchester, Harford, Kent, Queen Anne’s, Somerset, Talbot, Wicomico, and Worcester counties; and</text> </level> <level label="v"> <text>the region that includes Montgomery and Prince George’s counties.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>disabled witnesses;</text> </level> <level label="ii"> <text>indigent witnesses; or</text> </level> <level label="iii"> <text>a majority of witnesses.</text> </level> </level> </level> <level label="f"> <text>The person may be represented at the hearing by counsel.</text> </level> <level label="g"> <text>In connection with a proceeding under this section, the Commission may:</text> <level label="1"> <text>issue subpoenas for the attendance of witnesses to testify or to produce evidence; and</text> </level> <level label="2"> <text>take testimony in the same manner and with the same fees and compensation for mileage as provided in civil cases in the State.</text> </level> </level> <level label="h"> <text>If, after due notice, the person against whom the action is contemplated does not appear, nevertheless the Commission may hear and determine the matter.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-313" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>With the approval of the Secretary, the Commission may appoint a home improvement hearing board.</text> </level> <level label="b"> <level label="1"> <text>A hearing board shall consist of at least 3 members of the Commission.</text> </level> <level label="2"> <text>Of the members of the hearing board:</text> <level label="i"> <text>at least 1 shall have experience in some phase of the business of home improvement; and</text> </level> <level label="ii"> <text>at least 1 shall be a consumer member of the Commission.</text> </level> </level> </level> <level label="c"> <text>The Commission shall appoint a chairman from among the members of the hearing board.</text> </level> <level label="d"> <text>The Commission may refer to a hearing board a charge, claim, complaint, or license application made by the Commission or by any person under this subtitle.</text> </level> <level label="e"> <text>Each procedure applicable to a hearing before the Commission is applicable to a hearing before the hearing board.</text> </level> <level label="f"> <level label="1"> <text>A decision of the hearing board shall be:</text> <level label="i"> <text>by a majority vote of the entire membership of the hearing board;</text> </level> <level label="ii"> <text>in writing; and</text> </level> <level label="iii"> <text>submitted to the Commission.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>the decision of the hearing board is final;</text> </level> <level label="ii"> <text>the decision is a final decision of the Commission; and</text> </level> <level label="iii"> <text>a party who is aggrieved by the decision may take an appeal as provided in § 8-314 of this subtitle.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-314" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <text>A party to a proceeding before the Commission who is aggrieved by a final decision of the Commission in a contested case, as defined in § 10-202 of the State Government Article, may take an appeal as allowed in §§ 10-222 and 10-223 of the State Government Article.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-315" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>Except as otherwise provided in subsection (b) of this section, a contractor may not pay or otherwise compensate another person for performing or selling a home improvement unless:</text> <level label="1"> <text>the person to be paid or compensated is licensed;</text> </level> <level label="2"> <text>the person to be paid or compensated is not subject to the licensing requirements of this title; or</text> </level> <level label="3"> <text>the transaction for which the consideration is to be paid is not subject to this title.</text> </level> </level> <level label="b"> <text>After the expiration, suspension, or revocation of a license, a person:</text> <level label="1"> <text>is not relieved of outstanding obligations; and</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-316" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <level label="a"> <text>A person may not reapply for a license within 6 months after the person has had a license:</text> <level label="1"> <text>denied after a hearing; or</text> </level> <level label="2"> <text>revoked.</text> </level> </level> <level label="b"> <text>The Commission may reinstate the license of a person whose license has been suspended or revoked under this subtitle only if the person passes the examination that the Commission requires.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-317" title_number="8" title_name="Home Improvement" subtitle_number="3" subtitle_name="Licensing"> <text>A contractor who holds a license under this title is not required to hold a construction license under Title 17 of this article.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-401" title_number="8" title_name="Home Improvement" subtitle_number="4" subtitle_name="Home Improvement Guaranty Fund"> <text>In this subtitle, “actual loss” means the costs of restoration, repair, replacement, or completion that arise from an unworkmanlike, inadequate, or incomplete home improvement.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-402" title_number="8" title_name="Home Improvement" subtitle_number="4" subtitle_name="Home Improvement Guaranty Fund"> <text>This subtitle does not:</text> <level label="1"> <text>limit the authority of the Commission to take disciplinary action against a licensee under Subtitle 3 of this title;</text> </level> <level label="2"> <text>limit the availability of other remedies to a claimant; or</text> </level> <level label="3"> <text>require a claimant to exhaust administrative remedies before the Commission before bringing an action in court.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-403" title_number="8" title_name="Home Improvement" subtitle_number="4" subtitle_name="Home Improvement Guaranty Fund"> <level label="a"> <text>The Commission shall:</text> <level label="1"> <text>establish a Home Improvement Guaranty Fund;</text> </level> <level label="2"> <text>keep the Fund at a level of at least $1,000,000; and</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <level label="i"> <text>The Commission shall establish and maintain within the Fund a separate account to be held with the State Treasurer for the payment of necessary expenses for expert witnesses used to resolve claims against the Fund.</text> </level> <level label="ii"> <text>One–half of the money collected under § 8–620(c) of this title shall be credited to the account established in subparagraph (i) of this paragraph.</text> </level> <level label="iii"> <text>One–half of the money collected under § 8–620(c) of this title shall be credited to the General Fund of the State.</text> </level> </level> <level label="3"> <level label="i"> <text>The State Treasurer shall invest the money in the Fund in the same way that money in the State Retirement and Pension System is invested.</text> </level> <level label="ii"> <text>Investment earnings shall be credited to the Fund.</text> </level> </level> </level> <level label="c"> <text>The Commission shall administer the Fund in accordance with this subtitle.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-404" title_number="8" title_name="Home Improvement" subtitle_number="4" subtitle_name="Home Improvement Guaranty Fund"> <level label="a"> <text>Before the Commission issues a contractor license, the contractor shall pay a fee of $100 to be credited to the Fund.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>However, under this subsection the Commission may not assess a contractor more than $150 in a calendar year.</text> </level> </level> <level label="c"> <text>If a contractor fails to pay an assessment within 60 days after notice of the assessment, the contractor license is suspended until the assessment is paid.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-405" title_number="8" title_name="Home Improvement" subtitle_number="4" subtitle_name="Home Improvement Guaranty Fund"> <level label="a"> <text>Subject to this subtitle, an owner may recover compensation from the Fund for an actual loss that results from an act or omission by a licensed contractor or a violation of § 8–607(4) of this title as found by the Commission or a court of competent jurisdiction.</text> </level> <level label="b"> <text>For purposes of recovery from the Fund, the act or omission of a licensed contractor includes the act or omission of a subcontractor, salesperson, or employee of the licensed contractor, whether or not an express agency relationship exists.</text> </level> <level label="c"> <text>A claimant shall comply with a written agreement to submit a dispute to arbitration before seeking recovery from the Fund.</text> </level> <level label="d"> <text>The Commission may deny a claim if the Commission finds that the claimant unreasonably rejected good faith efforts by the contractor to resolve the claim.</text> </level> <level label="e"> <text>The Commission may not award from the Fund:</text> <level label="1"> <text>more than $30,000 to one claimant for acts or omissions of one contractor;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>an amount for attorney fees, consequential damages, court costs, interest, personal injury damages, or punitive damages;</text> </level> <level label="4"> <text>an amount as a result of a default judgment in court; or</text> </level> <level label="5"> <text>an amount in excess of the amount paid by or on behalf of the claimant to the contractor against whom the claim is filed.</text> </level> </level> <level label="f"> <level label="1"> <text>A claim against the Fund based on the act or omission of a particular contractor may not be made by:</text> <level label="i"> <text>a spouse or other immediate relative of the contractor;</text> </level> <level label="ii"> <text>an employee, officer, or partner of the contractor; or</text> </level> <level label="iii"> <text>an immediate relative of an employee, officer, or partner of the contractor.</text> </level> </level> <level label="2"> <text>An owner may make a claim against the Fund only if the owner:</text> <level label="i"> <text>resides in the home as to which the claim is made; or</text> </level> <level label="ii"> <text>does not own more than three residences or dwelling places.</text> </level> </level> </level> <level label="g"> <text>A claim shall be brought against the Fund within 3 years after the claimant discovered or, by use of ordinary diligence, should have discovered the loss or damage.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-406" title_number="8" title_name="Home Improvement" subtitle_number="4" subtitle_name="Home Improvement Guaranty Fund"> <text>To begin a proceeding to recover from the Fund, a claimant shall submit to the Commission a claim, under oath, that states:</text> <level label="1"> <text>the amount claimed based on the actual loss;</text> </level> <level label="2"> <text>the facts giving rise to the claim;</text> </level> <level label="3"> <text>any other evidence that supports the claim; and</text> </level> <level label="4"> <text>any other information that the Commission requires.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-407" title_number="8" title_name="Home Improvement" subtitle_number="4" subtitle_name="Home Improvement Guaranty Fund"> <level label="a"> <text>The procedures for notice, hearings, and judicial review that apply to proceedings under Subtitle 3 of this title also apply to proceedings to recover from the Fund.</text> </level> <level label="b"> <text>On receipt of a claim, the Commission shall:</text> <level label="1"> <text>send a copy of the claim to the contractor alleged to be responsible for the actual loss; and</text> </level> <level label="2"> <text>require a written response to the claim within 10 days.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commission:</text> <level label="i"> <text>shall review the claim and any response to it; and</text> </level> <level label="ii"> <text>may investigate the claim.</text> </level> </level> <level label="2"> <text>On the basis of its review and any investigation, the Commission may:</text> <level label="i"> <text>set the matter for a hearing;</text> </level> <level label="ii"> <text>dismiss the claim, if the claim is frivolous, legally insufficient, or made in bad faith; or</text> </level> <level label="iii"> <text>issue a proposed order to pay all or part of the claim or deny the claim if the total claim against a particular contractor does not exceed $7,500.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Commission shall send the proposed order to the claimant and the contractor, at the most recent address on record with the Commission, by:</text> <level label="i"> <text>personal delivery; or</text> </level> <level label="ii"> <text>both regular mail and certified mail, return receipt requested.</text> </level> </level> <level label="2"> <text>Within 21 days after service, receipt, or attempted delivery of the proposed order, the claimant or contractor may submit to the Commission:</text> <level label="i"> <text>a written request for a hearing before the Commission; or</text> </level> <level label="ii"> <text>a written exception to the proposed order.</text> </level> </level> <level label="3"> <text>If the claimant or contractor submits a timely exception to the proposed order, the Commission may:</text> <level label="i"> <text>issue a revised proposed order;</text> </level> <level label="ii"> <text>set a hearing on the claim; or</text> </level> <level label="iii"> <text>dismiss the claim.</text> </level> </level> <level label="4"> <text>Unless the claimant or contractor submits a timely request for a hearing or a timely exception, the proposed order is final.</text> </level> </level> <level label="e"> <level label="1"> <text>At a hearing on a claim, the claimant has the burden of proof.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-408" title_number="8" title_name="Home Improvement" subtitle_number="4" subtitle_name="Home Improvement Guaranty Fund"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>In a consolidated proceeding, the claimant is a party and may participate in the hearing to the extent necessary to establish the claim.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <level label="i"> <text>To the extent that a final judgment or final award in arbitration is decided in favor of the claimant, the Commission shall approve the claim against the Fund.</text> </level> <level label="ii"> <text>If a final judgment or final award in arbitration is decided in favor of the defendant, the Commission shall dismiss the claim against the Fund.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-409" title_number="8" title_name="Home Improvement" subtitle_number="4" subtitle_name="Home Improvement Guaranty Fund"> <level label="a"> <text>The Commission may order payment of a claim against the Fund only if:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>expressly has found on the merits that the claimant is entitled to recover under § 8–405(a) of this subtitle; and</text> </level> <level label="ii"> <text>has found the value of the actual loss.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Except as otherwise provided in this subsection, the Commission shall pay approved claims in the order submitted.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>After the Fund is reimbursed, the Commission shall pay unsatisfied approved claims.</text> </level> </level> <level label="c"> <text>If there is not enough money in the Fund to pay an approved claim wholly or partly, the Commission shall pay the unpaid claim:</text> <level label="1"> <text>when enough money is deposited in the Fund; and</text> </level> <level label="2"> <text>in the order that each claim originally was filed with a court of competent jurisdiction or submitted to the Commission.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-410" title_number="8" title_name="Home Improvement" subtitle_number="4" subtitle_name="Home Improvement Guaranty Fund"> <level label="a"> <level label="1"> <text>After the Commission pays a claim from the Fund:</text> <level label="i"> <text>the Commission is subrogated to all rights of the claimant in the claim up to the amount paid;</text> </level> <level label="ii"> <text>the claimant shall assign to the Commission all rights of the claimant in the claim up to the amount paid; and</text> </level> <level label="iii"> <text>the Commission has a right to reimbursement of the Fund by the contractor who the Commission finds responsible for the act or omission giving rise to the claim for:</text> <level label="1"> <text>the amount paid from the Fund; and</text> </level> <level label="2"> <text>interest on that amount at an annual rate of at least 10%, as set by the Commission.</text> </level> </level> </level> <level label="2"> <text>All money that the Commission recovers on a claim shall be deposited in the Fund.</text> </level> </level> <level label="b"> <text>If, within 60 days after the Commission gives notice, a contractor on whose account a claim was paid does not reimburse the Fund in full, the Commission may sue the contractor in a court of competent jurisdiction for the unreimbursed amount.</text> </level> <level label="c"> <text>The Commission is entitled to a judgment for the unreimbursed amount if the Commission proves that:</text> <level label="1"> <text>a claim was paid from the Fund on account of the contractor;</text> </level> <level label="2"> <text>the contractor has not reimbursed the Fund in full;</text> </level> <level label="3"> <text>the contractor was given notice and an opportunity to participate in a hearing on the claim before the Commission; and</text> </level> <level label="4"> <level label="i"> <text>the Commission directed payment based on a final judgment of a court of competent jurisdiction or a final award in arbitration; or</text> </level> <level label="ii"> <text>the decision or order of the Commission is final in accordance with Title 10, Subtitle 2 of the State Government Article and there is no pending appeal.</text> </level> </level> </level> <level label="d"> <text>The Commission may refer to the Central Collection Unit for collection under §§ 13–912 through 13–919 of the Tax – General Article a debt owed to the Commission by a contractor on whose account a claim was paid from the Fund and who is at least 1 year behind in reimbursement payments to the Fund.</text> </level> <level label="e"> <text>For the purpose of excepting to a discharge of a contractor under federal bankruptcy law, the Commission is a creditor of the contractor for the amount paid from the Fund.</text> </level> <level label="f"> <level label="1"> <level label="i"> <text>If a person liable for reimbursing the Guaranty Fund under this section receives a demand for reimbursement and fails to reimburse the Fund, the reimbursement amount and any accrued interest or cost are a lien in favor of the State on any real property of the person if the lien is recorded and indexed as provided in this subsection.</text> </level> <level label="ii"> <text>Interest shall continue at the rate of interest on a judgment as provided in § 11–107(a) of the Courts Article until the full amount due the Fund is paid.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>The notice required under paragraph (2) of this subsection shall contain:</text> <level label="i"> <text>the name and address of the person against whose property the lien exists;</text> </level> <level label="ii"> <text>the amount of the lien;</text> </level> <level label="iii"> <text>a description of or reference to the property subject to the lien; and</text> </level> <level label="iv"> <text>the date the Guaranty Fund paid the claim giving rise to the lien.</text> </level> </level> <level label="5"> <text>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.</text> </level> <level label="6"> <text>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.</text> </level> <level label="7"> <text>The clerk may collect a reasonable fee for recording and indexing each notice of lien or release of any lien under this subsection.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-411" title_number="8" title_name="Home Improvement" subtitle_number="4" subtitle_name="Home Improvement Guaranty Fund"> <level label="a"> <text>Except as provided in subsection (b) of this section, if the Commission pays a claim against the Fund based on an act or omission of a contractor, the Commission may suspend the contractor license until the contractor reimburses the Fund in full for:</text> <level label="1"> <text>the amount paid from the Fund; and</text> </level> <level label="2"> <text>interest on that amount at an annual rate of at least 10%, as set by the Commission.</text> </level> </level> <level label="b"> <text>The Commission may not suspend the contractor license if the Commission finds that the contractor or management personnel of the contractor:</text> <level label="1"> <text>did not know of the wrongful conduct; or</text> </level> <level label="2"> <text>could not prevent the violation.</text> </level> </level> <level label="c"> <text>Reimbursement of the Fund in full by a contractor, by itself, does not nullify or modify the effect of a disciplinary proceeding against a licensee.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-501" title_number="8" title_name="Home Improvement" subtitle_number="5" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>A home improvement contract that does not comply with this section is not invalid merely because of noncompliance.</text> </level> <level label="b"> <text>Each home improvement contract shall:</text> <level label="1"> <text>be in writing and legible;</text> </level> <level label="2"> <text>describe clearly each document that it incorporates; and</text> </level> <level label="3"> <text>be signed by each party to the home improvement contract.</text> </level> </level> <level label="c"> <level label="1"> <text>In addition to any other matters on which the parties lawfully agree, each home improvement contract shall contain:</text> <level label="i"> <text>the name, address, telephone number, and license number of the contractor;</text> </level> <level label="ii"> <text>the name and license number of each salesperson who solicited the home improvement contract or sold the home improvement;</text> </level> <level label="iii"> <text>the approximate dates when the performance of the home improvement will begin and when it will be substantially completed;</text> </level> <level label="iv"> <text>a description of the home improvement to be performed and the materials to be used;</text> </level> <level label="v"> <text>the agreed consideration;</text> </level> <level label="vi"> <text>the number of monthly payments and the amount of each payment, including any finance charge;</text> </level> <level label="vii"> <text>a description of any collateral security for the obligation of the owner under the home improvement contract;</text> </level> <level label="viii"> <text>a notice that gives the telephone number and Web site of the Commission and states that:</text> <level label="1"> <text>each contractor must be licensed by the Commission; and</text> </level> <level label="2"> <text>anyone may ask the Commission about a contractor; and</text> </level> </level> <level label="ix"> <text>a notice set by the Commission by regulation that:</text> <level label="1"> <text>specifies the protections available to consumers through the Commission; and</text> </level> <level label="2"> <text>advises the consumer of the right to purchase a performance bond for additional protection against loss.</text> </level> </level> </level> <level label="2"> <text>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.”</text> </level> <level label="3"> <text>The notice under paragraph (2) of this subsection shall be independently initialed by the homeowner.</text> </level> </level> <level label="d"> <text>Before the performance of a home improvement begins, the owner shall be given a copy of the home improvement contract signed by the contractor.</text> </level> <level label="e"> <text>A salesperson or other agent or employee of a contractor may not make a change in a home improvement contract for an owner.</text> </level> <level label="f"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-502" title_number="8" title_name="Home Improvement" subtitle_number="5" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>A salesperson may not:</text> <level label="1"> <text>represent concurrently more than 1 contractor in selling a home improvement;</text> </level> <level label="2"> <text>use a home improvement contract form that does not disclose the name of the contractor; or</text> </level> <level label="3"> <text>choose a contractor for an owner.</text> </level> </level> <level label="b"> <text>For selling a home improvement, a salesperson shall:</text> <level label="1"> <text>accept compensation only from the contractor that the salesperson represents in the sale; and</text> </level> <level label="2"> <text>pay compensation only for that contractor.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-503" title_number="8" title_name="Home Improvement" subtitle_number="5" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>As an inducement to make a home improvement contract, a person may not promise or offer to pay to an owner any compensation or reward for obtaining or placing home improvement business with others.</text> </level> <level label="b"> <text>A contractor or salesperson may not offer, give, or pay to an owner a gift, bonus award, merchandise, trading stamps, or cash loan as an inducement to make a home improvement contract.</text> </level> <level label="c"> <text>To advertise or to promote sales, a contractor or salesperson may give to a prospective customer a tangible item if:</text> <level label="1"> <text>the cost to the contractor or salesperson does not exceed $25;</text> </level> <level label="2"> <text>the gift is not contingent on making a home improvement contract; and</text> </level> <level label="3"> <text>the customer does not receive more than 1 item for 1 transaction.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-504" title_number="8" title_name="Home Improvement" subtitle_number="5" subtitle_name="Miscellaneous Provisions"> <text>Except for a permit for a home improvement to be performed by a property owner, the building and permits department of a county or a municipal corporation may not issue a permit for a home improvement unless the permit includes the license number of a licensed contractor.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-505" title_number="8" title_name="Home Improvement" subtitle_number="5" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>In this section, “building code” includes a code that deals with mechanical, electrical, fire, plumbing, energy, heating, ventilation, or air conditioning matters.</text> </level> <level label="b"> <text>A county or municipal corporation shall notify the Commission of each contractor who fails to correct a violation of the applicable local or State building code within a reasonable time after the contractor receives notice of the violation.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-506" title_number="8" title_name="Home Improvement" subtitle_number="5" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>In this section, “critical area” has the meaning designated under § 8–1802 of the Natural Resources Article.</text> </level> <level label="b"> <text>The Critical Area Commission for the Chesapeake and Atlantic Coastal Bays, as established under Title 8, Subtitle 18 of the Natural Resources Article, shall notify the Commission of any contractor who, in the critical area, fails to comply with:</text> <level label="1"> <text>the terms of a State or local permit, license, or approval issued for home improvement; or</text> </level> <level label="2"> <text>any State or local law, approved plan, or other legal requirement.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-601" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>Except as otherwise provided in this title, a person may not act or offer to act as a contractor in the State unless the person has a contractor license.</text> </level> <level label="b"> <text>Except as otherwise provided in this title, a person may not sell or offer to sell a home improvement in the State unless the person has a contractor license or salesperson license.</text> </level> <level label="c"> <text>A person who violates this section is guilty of a misdemeanor and, on first conviction, is subject to a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both and, on a second or subsequent conviction, is subject to a fine not exceeding $5,000 or imprisonment not exceeding 2 years or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-602" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A person may not accept a completion certificate or other proof that performance of a home improvement contract is complete or satisfactorily concluded with knowledge that the document or proof is false and the performance is incomplete.</text> </level> <level label="b"> <text>If a person knows or has good reason to know that a completion certificate or other proof is false, the person may not utter, offer, or use the document or proof to:</text> <level label="1"> <text>make or accept an assignment or negotiation of the right to receive payment from an owner under a home improvement contract; or</text> </level> <level label="2"> <text>get or grant credit or a loan on the security of the right to receive payment under a home improvement contract.</text> </level> </level> <level label="c"> <text>A person who violates this section is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $5,000 or imprisonment not exceeding 3 years or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-605" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A contractor may not:</text> <level label="1"> <text>abandon or fail to perform, without justification, a home improvement contract; or</text> </level> <level label="2"> <text>deviate materially from plans or specifications without the consent of the owner.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-606" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A salesperson may not fail to account for or remit to the contractor whom the salesperson represents a payment received in connection with selling a home improvement.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-607" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not:</text> <level label="1"> <text>make a substantial misrepresentation when obtaining a home improvement contract;</text> </level> <level label="2"> <text>make a false promise that is likely to influence, persuade, or induce in connection with a home improvement contract;</text> </level> <level label="3"> <text>misrepresent a material fact when applying for a license; or</text> </level> <level label="4"> <text>fail to give the written notice required under § 8-501(c)(2) and (3) of this title.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-608" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not commit fraud when executing or materially altering a home improvement contract, mortgage, promissory note, or other document incident to performing or selling a home improvement.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-609" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not prepare, arrange, accept, or participate in arranging a mortgage, promissory note, or other evidence of debt for performing or selling a home improvement with knowledge that the evidence of debt states a greater monetary obligation than the consideration, including a time sale price, for the home improvement.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-610" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A person may not:</text> <level label="1"> <text>directly or indirectly publish a false, deceptive, or misleading advertisement about home improvement; or</text> </level> <level label="2"> <text>advertise or offer, by any means, to perform a home improvement if the person does not intend to accept a home improvement contract:</text> <level label="i"> <text>to do the particular home improvement; or</text> </level> <level label="ii"> <text>at the price advertised or offered.</text> </level> </level> </level> <level label="b"> <text>An advertisement that is subject to and complies with regulations adopted by the Federal Trade Commission is not false, deceptive, or misleading.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-611" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A licensee may not violate:</text> <level label="1"> <text>a building law of the State or a political subdivision of the State;</text> </level> <level label="2"> <text>a safety or labor law of the State;</text> </level> <level label="3"> <text>the Maryland Workers’ Compensation Act; or</text> </level> <level label="4"> <text>the lead paint abatement accreditation requirement under § 6–1002 of the Environment Article or any regulation adopted under that section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-612" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not perform or sell a home improvement with or through another person who is required to be licensed under this title but is not licensed.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-613" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A contractor may not fail to notify the Commission of an employment or other contractual relationship between the contractor and a salesperson.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-614" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not act as a contractor or sell a home improvement under a name other than that under which the person is licensed.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-615" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not advertise in any way that the person is licensed under this title unless the advertisement states the license number of the person in one of the following forms: “Maryland Home Improvement Commission License No. _____” or “MHIC No. _____”.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-616" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <text>A person may not fail to comply with a lawful order or requirement of the Commission under this title.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-617" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>A person may not demand or receive any payment for a home improvement before the home improvement contract is signed.</text> </level> <level label="b"> <text>A person may not receive a deposit of more than one-third of the home improvement contract price before or at the time of execution of the home improvement contract.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-620" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Commission shall pay any penalty collected under this subsection into the General Fund of the State.</text> </level> </level> <level label="b"> <text>In setting the amount of a civil penalty, the Commission shall consider:</text> <level label="1"> <text>the seriousness of the violation;</text> </level> <level label="2"> <text>the good faith of the violator;</text> </level> <level label="3"> <text>any previous violations;</text> </level> <level label="4"> <text>the harmful effect of the violation on the complainant, the public, and the business of home improvement;</text> </level> <level label="5"> <text>the assets of the violator; and</text> </level> <level label="6"> <text>any other relevant factors.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commission may establish by regulation a schedule of violations and fines to be used for civil citations issued under this title.</text> </level> <level label="2"> <text>A citation issued by the Commission shall include:</text> <level label="i"> <text>the name and address of the person charged;</text> </level> <level label="ii"> <text>the nature of the violation;</text> </level> <level label="iii"> <text>the location and time of the violation;</text> </level> <level label="iv"> <text>the amount of the fine;</text> </level> <level label="v"> <text>the manner, location, and time in which the fine may be paid;</text> </level> <level label="vi"> <text>the cited person’s right to a hearing for the violation; and</text> </level> <level label="vii"> <text>a warning that failure to pay the fine or to contest liability in a timely manner in accordance with the citation:</text> <level label="1"> <text>is an admission of liability; and</text> </level> <level label="2"> <text>may result in an entry of a default judgment that may include the fine, court costs, and administrative expenses.</text> </level> </level> </level> <level label="3"> <text>The Commission shall retain a copy of the citation.</text> </level> <level label="4"> <text>All money collected under this subsection shall be paid in accordance with § 8–403(b) of this title.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-623" title_number="8" title_name="Home Improvement" subtitle_number="6" subtitle_name="Prohibited Acts; Penalties"> <level label="a"> <text>This section only applies if there is no greater criminal penalty provided under this title or other applicable law.</text> </level> <level label="b"> <text>A person who violates this title is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="8-801" title_number="8" title_name="Home Improvement" subtitle_number="8" subtitle_name="Short Title; Termination of Title"> <text>This title is the Maryland Home Improvement Law.</text> </section> <section article="gbr" article_name="Business Regulation" number="8-802" title_number="8" title_name="Home Improvement" subtitle_number="8" subtitle_name="Short Title; Termination of Title"> <text>Subject to the evaluation and reestablishment provisions of the Maryland Program Evaluation Act, this title and all regulations adopted under this title shall terminate on July 1, 2032.</text> </section>