Chapter 01. General Regulations

A corporation or partnership may not act as a home improvement contractor unless it obtains a corporate or partnership home improvement contractor's license.

To obtain and maintain a corporate or partnership home improvement license, the corporation or partnership shall employ one individual licensed contractor who shall be in responsible charge of the corporation's or partnership's home improvement work.

The corporation or partnership and the individual in responsible charge of the corporation's or partnership's home improvement work shall be jointly and severally responsible for:

For purposes of applying the limitation in Business Regulation Article, §8-405(e)(2), Annotated Code of Maryland, on Fund awards on account of the conduct of any one licensed contractor, the combined liability of a licensed corporation or partnership and the individual in responsible charge of the corporation's or partnership's work may not exceed the limitation in the aggregate.

The Commissions may, pursuant to Business Regulation Article, §8-311, Annotated Code of Maryland, sanction a corporation or partnership for conduct which is in violation of Business Regulation Article, Title 8, Annotated Code of Maryland.

Licensed contractors and subcontractors shall conspicuously display their home improvement license number preceded by the designation "MHIC #' on both sides of all vehicles primarily used either by the licensee or under the licensee's direction and control for the performance of home improvement work.

For purposes of this regulation, performance of home improvement work:

Contractors or subcontractors are required to display only their own license numbers while they are performing work as a subcontractor.

Displays required by this regulation shall be at least 3 inches in height.

A salesman may not represent any contractor unless the salesman complies with the provisions of this regulation.

A salesman seeking to represent any contractor shall make application on forms provided by the Commission.

A salesman may not represent more than two contractors at any one time.

Before the Commission may authorize a salesman to represent two contractors at the same time, the salesman shall provide to the Commission the following:

A contractor shall promptly notify the Commission when his association with any salesman is terminated, and a salesman shall promptly return to the Commission any authorization issued by the Commission to represent the contractor.

General Requirements.

Discount Coupons. An advertisement which offers a discount coupon may not contain a requirement that the coupon be presented before the contractor provides an estimate or proposal.

Guaranties or Warranties.

Special Disclosure Requirements.

Pay a commission or other compensation to the owner for any sale made within any specified distance from the owner's building; or

Consequently reduce the cost for the owner of any home improvement work.

Every home improvement contract which contains a stipulation or condition or which is represented to be that the contract is subject to the approval of the contractor before it becomes binding or any other language requiring prior approval before acceptance shall state that approval or disapproval of the contract shall be made within 10 working days from the date of the contract. The owner shall be duly informed, in writing, by the contractor of the decision approving or disapproving the contract within that time.

If the home improvement contract described in §A of this regulation is not approved, money or other collateral tendered as a deposit or down payment to a contractor, salesman, or any other person shall be returned to the owner within 3 working days of the date of disapproval, and not later than 13 working days from the date of the contract.

The examination shall be held as often as necessary at a test site determined by the Commission. This examination may be offered at various political subdivisions throughout the State. The examination shall include the law relating to the practice of home improvement contracting and the applicant's competence to perform home improvement work. The examination for competence may be oral or written.

Each applicant shall file with the Commission a written application on forms which will be furnished on request. The application must be filed not later than 1 week before the date on which the examination is held, and must be accompanied by the required fee, and a full face photograph, taken within the year preceding the initial application.

The passing mark shall be 70 in the subject matter. If the applicant has failed to pass the examination, he will not be eligible to reapply until 21 days have elapsed. A request for a second reconsideration received after the second failure will not be accepted until 60 days have elapsed.

If an applicant fails to sit for the examination as scheduled, the applicant shall, in order to be rescheduled for the examination, file a written application, on forms provided by the Commission, accompanied by the fee as determined in Business Regulation Article, §8-302(c), Annotated Code of Maryland. The Commission may, for good cause and upon written request of the applicant, waive the requirement for a subsequent fee.

The time limitation within which an applicant is required to pass is as stated in §C of this regulation. If an applicant has been denied registration of a license, because of failure to pass the examination, the applicant may submit to the Commission a request for reconsideration.

As soon as practicable after grading of the examination papers has been completed, every applicant will be notified in writing what his grades are. Within a period of 30 days after the notice, the applicant may request the Executive Director of the Commission for permission to review his examination papers.

The fee for the written examination shall be authorized as determined in Business Regulation Article, §8-302(c), Annotated Code of Maryland.

An applicant for a new license shall pass the examination within the 2-year period immediately preceding receipt of the license application by the Commission.

Applications Within 2 Years of License Expiration.

Applications After 2 Years of License Expiration.

Effective Date of Renewals. A license renewed pursuant to this regulation may not be retroactive to the date that the previously issued license expired, but shall take effect on the date that the applicant fulfills the Commission's requirements for a renewal. The license shall expire 2 years from the date on which the previously issued license expired.

Guaranty Fund Assessment. Before the Commission renews a contractor license, the contractor shall pay a fee of $175 to be credited to the Fund.

An applicant for an original contractor's license shall submit to the Commission with the application a credit report from an approved credit reporting agency and a statement of all outstanding judgments and pending civil actions against the applicant.

The Commission shall consider this credit report and statement in determining whether the applicant has demonstrated financial solvency as required by Business Regulation Article, § 8-311(a)(9), Annotated Code of Maryland.

An applicant that does not demonstrate a net worth equal to the maximum Fund award available to one claimant for acts of omissions of one contractor under Business Regulation Article, §8-405(e)(1), Annotated Code of Maryland, must obtain a 2-year surety bond for that amount.

A licensee that obtains a surety bond to satisfy the financial solvency requirement must maintain a surety bond for an amount equal to the maximum Fund award available to one claimant for acts of omissions of one contractor at all times unless the licensee demonstrates a sufficient net worth and the Commission authorizes the licensee to cancel the bond.

At any time, the Commission may require a licensee to demonstrate financial solvency and may revoke a license if the licensee fails to do so.

The fact that an applicant or licensee holds a surety bond does not preclude the Commission from denying an application or revoking or suspending a license under Business Regulation Article, §8-311(a)(9, Annotated Code of Maryland.

As used in this regulation, “television antenna” means a device used to receive television signals from terrestrial over-the-air-broadcasts or satellites for use in a building used or designed to be used as a residence or dwelling place of one, two, or three single family units.

The installation of a television antenna may not be subject to the Maryland Home Improvement Law if all of the following criteria are met:

An installation of a television antenna not meeting the criteria of §B of this regulation shall be subject to the Maryland Home Improvement Law unless otherwise determined by the Commission on a case-by-case basis.

A party under §C of this regulation shall have the burden of persuasion that the television antenna installation is not subject to the Maryland Home Improvement Law.

Trade Experience.

Business Experience in Other Areas. Experience in the capacity of supervisor, manager, or owner of a business may be substituted for 1 year of the required trade experience, based on a review by the Home Improvement Commission, or an applicant for a home improvement contractor's license may substitute for the required trade experience educational training in:

Experience or educational qualifications of applicants for a home improvement contractor's license who have documented handicaps shall be considered by the Commission on an individual basis.

This regulation applies to all applications, both original and renewal, received after April 30, 1994.

An applicant for a contractor license shall provide to the Commission the actual street address of the contractor's principal business office. An applicant may not provide a post office box or private mail drop as the applicant's business address of record.

A mandatory arbitration clause in a home improvement contract shall include the following information:

The parties shall affix their initials and date immediately adjacent to any mandatory arbitration clause in a home improvement contract, at the time of execution of the contract.

This regulation shall apply to all home improvement contracts executed after October 31, 1994.

A home improvement contract shall contain a notice stating that:

The notice required by this regulation shall be included within the contract or, until July 1, 2013, may be included in an addendum attached to the contract, provided that the addendum is signed by the homeowner and contractor.

If an applicant or licensee receives from the Commission a written communication requesting a response, the applicant or licensee shall respond within 30 days of the date of the mailing.

The Commission shall send a written communication by first-class mail to the last business address furnished to the Commission by the applicant or licensee.

It is a responsibility of an applicant or licensee to notify the Commission in writing if there has been a change in the applicant’s or licensee’s address.

Failure to respond as required by this regulation may be considered by the Commission to be a violation of Business Regulation Article, §§8-311(a)(11)—(13) and 8-616, Annotated Code of Maryland.