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.
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.
This section does not apply to:
an individual who works for a contractor for a salary or wages but who is not a salesperson for the contractor;
a clerical employee, retail clerk, or other employee of a licensed contractor who is not a salesperson, as to a transaction on the premises of the licensed contractor;
a solicitor for a contractor who calls an owner by telephone only;
an architect, electrician, plumber, heating, ventilation, air–conditioning, or refrigeration contractor, or other person who:
is required by State or local law to meet standards of competency or experience before engaging in an occupation or profession;
currently is licensed in that occupation or profession under State or local law; and
is:
acting only within the scope of that occupation or profession; or
installing a central heating or air–conditioning system;
a security systems technician licensed under Title 18 of the Business Occupations and Professions Article;
a marine contractor licensed under Title 17, Subtitle 3 of the Environment Article; or
a person who is selling a home improvement to be performed by a person described in item (4) of this subsection.
An applicant for a contractor’s or salesperson’s license must pass the examination prior to submitting an application for a license.
An applicant may receive a license only if the applicant passes the examination that the Commission requires.
To take an examination, an applicant shall pay to the Commission or a testing service chosen by the Commission the examination fee set by the Commission to cover the cost of the examination.
The examination fee is nonrefundable.
The Commission shall schedule the applicant for an examination to be held within 45 days after the Commission receives an application for examination.
The examination shall be held at a location:
that is within the general geographic area where the applicant resides, if the applicant resides in the State; or
that the Commission determines, if the applicant resides out of State.
The Commission shall give each qualified applicant notice of the time and place of examination.
Except as otherwise provided in this section, the Commission shall determine the subjects, scope, and form of and the passing score for examinations.
The examination shall test:
the applicant’s knowledge of the law about home improvement; and
the applicant’s competency to engage in the licensed occupation.
The competency part of the examination may be oral or written.
The Commission may use a testing service to administer the examinations given under this section.
If the Commission uses a testing service under this subsection, the testing service, subject to the requirements set by the Commission, may:
set the time and place of examinations;
give qualified applicants notice of the time and place of examinations; and
furnish any other information that the Commission may require the testing service to provide.
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.
An applicant for a contractor license shall maintain general liability insurance in the amount of at least $500,000.
A licensed contractor shall maintain general liability insurance in the amount of at least $500,000.
An applicant for a contractor license shall have:
at least 2 years of trade experience that is satisfactory to the Commission, under regulations adopted by the Commission; or
comparable educational training to be determined by regulations adopted by the Commission.
An applicant for a license shall:
submit to the Commission an application on the form that the Commission provides;
submit to the Commission with the license application proof of compliance with the insurance requirement of § 8–302.1 of this subtitle, if the applicant is applying for a contractor license;
pay into the Fund the fee required under § 8–404(a) of this title, if the applicant is applying for a contractor license; and
pay to the Commission an application fee set by the Commission.
In addition to any other information required on an application form, the form shall require:
for an individual applicant, the name and address of the applicant;
for a corporate applicant, the name and address of each officer;
for a partnership applicant, the name and address of each partner;
for a joint venture applicant, the name and address of each party to the joint venture;
if the applicant acts as a contractor through a corporation or limited partnership, the name and address of the resident agent of the corporation or limited partnership in the State;
if the applicant is applying for a contractor license, a complete description of the nature of the contracting business of the applicant;
if the applicant is applying for a salesperson license, a complete description of the duties of the applicant;
a record of the applicant’s experience in the field of home improvement or other construction work, including dates when and addresses where the applicant has resided and done business;
if the applicant provides lead paint abatement services, the Department of the Environment lead paint abatement accreditation number and accreditation expiration date;
whether the applicant has ever held a professional or vocational license in this or any other state; and
whether the applicant has had a professional or vocational license denied, suspended, or revoked.
To evaluate the qualifications of an applicant for a license, the Commission may ask the applicant for:
information about the applicant’s character, experience, and financial stability; and
any other information that the Commission needs.
If the applicant is applying for a contractor license, the applicant shall:
have submitted to the Commission, by a credit reporting agency approved by the Commission, a credit report that contains the information required by the Commission; or
have paid to the Commission or the Commission’s designee a credit report fee in an amount not to exceed the cost charged by a credit reporting agency approved by the Commission to obtain a credit report that contains the information required by the Commission.
Financial information that an applicant submits to the Commission:
is confidential and is not a public record; but
if relevant, is admissible as evidence in an administrative or judicial proceeding.
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.
Within 30 days after the first meeting of the Commission after submission of a completed application, the Commission shall notify an applicant in writing:
whether the application for a license is approved or denied; and
of the reasons for denial, if the application is denied.
If the application is denied, the applicant, within 10 days after the notice of denial is mailed, may request a hearing.
The hearing shall be held in accordance with § 8-312 of this subtitle within 30 days after the date that the Commission receives the request.
The Commission shall make a decision within a reasonable time, but not later than 60 days after the hearing.
The Commission shall issue a license to each applicant who meets the requirements of this subtitle.
The Commission:
may issue a salesperson license only to an individual; and
may not issue a salesperson license unless the Commission has received from a licensed contractor written notice, signed by both the licensed contractor and salesperson, of an employment or other contractual relationship between the licensed contractor and salesperson.
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.
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:
the Commission determines that the applicant has settled all outstanding obligations; and
1 year has passed since the date of conviction.
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.
A contractor license authorizes the licensee to act as a contractor or subcontractor and to sell a home improvement.
A salesperson license authorizes the licensee to sell a home improvement.
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.
The Secretary may stagger the terms of licenses.
Unless a license is renewed for a 2–year term as provided in this section, the license expires:
if the Secretary staggers the terms of licenses, on the date that the Secretary sets; or
if the Secretary does not stagger the terms of licenses, on the first June 30 that comes after the effective date of the license in an odd–numbered year.
At least 1 month before a license expires, the Commission shall mail or electronically transmit to the licensee:
a renewal application form; and
a notice that states:
the date on which the current license expires; and
the amount of the renewal fee.
If an electronic transmission under paragraph (1) of this subsection is returned to the Commission as undeliverable, the Commission shall mail to the licensee, at the last known address of the licensee, the materials required under paragraph (1) of this subsection within 10 business days of the date the Commission received the notice that the electronic transmission was undeliverable.
Before a license expires, the licensee periodically may renew it for an additional 2–year term, if the licensee:
otherwise is entitled to be licensed;
submits to the Commission a renewal application on the form that the Commission provides;
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;
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
pays to the Commission a renewal fee set by the Commission.
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.
For renewal of a contractor license, the licensee shall:
submit to the Commission, by a credit reporting agency approved by the Commission, a credit report that contains the information required by the Commission; or
pay to the Commission or the Commission’s designee a credit report fee in an amount not to exceed the cost charged by a credit reporting agency approved by the Commission to obtain a credit report that contains the information required by the Commission for renewal of a contractor license.
The Commission shall renew the license of each licensee who meets the requirements of this section.
The Commission may not renew a contractor license unless the contractor submits proof of compliance with the insurance requirement of § 8–302.1 of this subtitle.
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.
The Commission shall place the license of a licensee on inactive status, and issue an inactive status certificate to the licensee, if the licensee:
submits to the Commission an application for inactive status on the form that the Commission provides;
pays to the Commission an inactive status application fee set by the Commission;
except for the liability insurance requirement of § 8–302.1 of this subtitle, qualifies for an active license; and
returns the license of the licensee to the Commission.
The holder of a contractor license that is on inactive status may not act as a contractor in the State.
The holder of a salesperson license that is on inactive status may not sell a home improvement in the State.
The holder of a contractor license that is on inactive status is not required to meet the liability insurance requirement of § 8–302.1 of this subtitle.
The holder of a contractor license that is on inactive status is not subject to an assessment for the Fund under § 8–404(b) of this title.
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.
A licensee whose license is on inactive status remains responsible for renewing the license as required under § 8–308 of this subtitle.
The holder of a contractor license that is on inactive status may renew the license without complying with the liability insurance requirement of § 8–302.1 of this subtitle.
A licensee whose license is on inactive status shall pay to the Commission a renewal fee set by the Commission.
The Commission shall reactivate the license of a licensee that is on inactive status and reissue the license to the licensee, if the licensee:
submits to the Commission an application for reactivation on the form that the Commission provides;
pays to the Commission a reissuance fee set by the Commission; and
meets the requirements for a license, including, in the case of a contractor, the liability insurance requirement under § 8–302.1 of this subtitle.
Within 10 days, a licensee shall notify the Commission of a change of control in ownership, management, address, or trade name.
A salesperson may not represent more than 2 contractors at a time.
Before an individual becomes a salesperson for a contractor, the individual shall tell:
that contractor the name of each other contractor for whom the individual currently is a salesperson; and
each contractor for whom the individual currently is a salesperson the name of the contractor for whom the individual plans to become a salesperson.
When an individual ceases to be a salesperson for a contractor, the contractor shall give the Commission written notice of the cessation.
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:
fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another person;
fraudulently or deceptively uses a license;
fails to give the Commission information required by this subtitle about an application for a license;
fails to pass an examination required by this subtitle;
under the laws of the United States or of any state, is convicted of a:
felony; or
misdemeanor that is directly related to the fitness and qualification of the applicant or licensee to engage in home improvement services;
often fails to perform home improvement contracts;
falsifies an account;
engages in fraud;
as a contractor fails to show financial solvency, based on the intended scope and size of the business in relation to total assets, liabilities, credit rating, and net worth;
as a contractor lacks competence, as shown by the performance of an unworkmanlike, inadequate, or incomplete home improvement;
violates this title;
attempts to violate this title;
violates a regulation adopted under this title; or
in the Chesapeake and Atlantic Coastal Bays Critical Area, as defined under § 8–1802 of the Natural Resources Article, fails to comply with:
the terms of a State or local permit, license, or approval issued for home improvement; or
any State or local law, an approved plan, or other legal requirement.
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:
had no knowledge of the wrongful conduct; or
could not prevent the violation.
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.
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:
the nature of the crime;
the relationship of the crime to the activities authorized by the license;
with respect to a felony, the relevance of the conviction to the fitness and qualification of the applicant or licensee to provide home improvement services;
the length of time since the conviction; and
the behavior and activities of the applicant or licensee before and after the conviction.
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.
The Commission shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.
The Commission may administer oaths in a proceeding under this section.
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.
For purposes of this subsection, the State is divided into:
the region that includes Allegany, Carroll, Frederick, Garrett, and Washington counties;
the region that includes Anne Arundel, Calvert, Charles, and St. Mary’s counties;
the region that includes Baltimore City and Baltimore and Howard counties;
the region that includes Caroline, Cecil, Dorchester, Harford, Kent, Queen Anne’s, Somerset, Talbot, Wicomico, and Worcester counties; and
the region that includes Montgomery and Prince George’s counties.
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:
disabled witnesses;
indigent witnesses; or
a majority of witnesses.
The person may be represented at the hearing by counsel.
In connection with a proceeding under this section, the Commission may:
issue subpoenas for the attendance of witnesses to testify or to produce evidence; and
take testimony in the same manner and with the same fees and compensation for mileage as provided in civil cases in the State.
If, after due notice, the person against whom the action is contemplated does not appear, nevertheless the Commission may hear and determine the matter.
With the approval of the Secretary, the Commission may appoint a home improvement hearing board.
A hearing board shall consist of at least 3 members of the Commission.
Of the members of the hearing board:
at least 1 shall have experience in some phase of the business of home improvement; and
at least 1 shall be a consumer member of the Commission.
The Commission shall appoint a chairman from among the members of the hearing board.
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.
Each procedure applicable to a hearing before the Commission is applicable to a hearing before the hearing board.
A decision of the hearing board shall be:
by a majority vote of the entire membership of the hearing board;
in writing; and
submitted to the Commission.
Unless, within 15 days after the hearing board submits its decision to the Commission, the Commission or a member of the Commission finds that a full hearing by the Commission is required:
the decision of the hearing board is final;
the decision is a final decision of the Commission; and
a party who is aggrieved by the decision may take an appeal as provided in § 8-314 of this subtitle.
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.
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:
the person to be paid or compensated is licensed;
the person to be paid or compensated is not subject to the licensing requirements of this title; or
the transaction for which the consideration is to be paid is not subject to this title.
After the expiration, suspension, or revocation of a license, a person:
is not relieved of outstanding obligations; and
may complete and be paid under a home improvement contract that is made but not performed on the date of the expiration, suspension, or revocation.
A person may not reapply for a license within 6 months after the person has had a license:
denied after a hearing; or
revoked.
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.
A contractor who holds a license under this title is not required to hold a construction license under Title 17 of this article.