The definitions contained in Business Regulation Article, §8-101, Annotated Code of Maryland, are incorporated into these regulations, by reference, as Regulation .01. The definitions of canvasser, solicitor, or similar term will be considered the same as the definition for a salesman; those persons using these terms will be subject to licensing and the requirements of the Maryland Home Improvement Law. All contractors and salesmen required to be licensed shall have licenses on and after October 1, 1962. 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: Payment of any fees required by Business Regulation Article, §§8-302, 8-303, 8-308, and 8-404, Annotated Code of Maryland; Filing of a bond or other evidence of financial responsibility required by Business Regulation Article, §8-303(c), Annotated Code of Maryland; Repayment to the Home Improvement Commission Guaranty Fund pursuant to Business Regulation Article, §8-410, Annotated Code of Maryland, for any payments made to claimants from the Fund on account of violations by the corporation or partnership or the individual in responsible charge. 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. A salesman's license will be issued only in the legal name of the applicant for the license. 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: Shall include, but not be limited to, transporting materials to and from the jobsite; May not include sales 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: Written notice of appointment or employment signed by both the contractor duly licensed with the Commission and the salesman; and A copy of notification by certified mail, and evidence of its receipt, to each contractor represented by the salesman stating the names and addresses of each contractor represented by the salesman. 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. In the performance of any Home Improvement Contract it shall be the non-delegable duty and obligation of the prime contractor to secure, or see to the securing of, every permit, license, or special exception necessary to the proper completion of the contract according to applicable state or local building laws. General Requirements. A licensed home improvement contractor may not solicit home improvement business by way of advertisement in a newspaper, magazine, circular, or printed document, or by way of television or radio announcement, unless the name and license number of the contractor are stated in the advertisement. A licensee may not directly or indirectly publish any advertisement relating to home improvements, including finance or credit terms, that contains an assertion, representation, or statement of fact that is false, deceptive, or misleading. General statements, such as “Factory to You”, “Direct to You”, “Buy from the Manufacturer”, “Save the Middleman's Profit”, or phrases of similar meaning may not be used unless the advertiser is actually the maker or producer of the merchandise advertised or offered for sale. 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. If reference is made to a guaranty or warranty, or the word “guarantied” or “warranted” is used, the terms, conditions, limitations, and period of time covered shall be clearly and conspicuously disclosed. The terms shall indicate whether items such as “labor and material only”, “repair”, “replacement”, or “full refund” are offered. Basic limitations shall be disclosed in the advertisement. With respect to any guaranty offered by a licensee, compliance with the Maryland Consumer Products Guaranty Act, Commercial Law Article, §14-401—14-409, Annotated Code of Maryland, shall constitute prima facie evidence that a licensee has complied with §A(2) of this regulation. The Maryland Home Improvement Commission shall provide a copy of the Consumer Products Guaranty Act to any licensee within 5 days after receipt of a written request. Special Disclosure Requirements. Credit Terms and Charges. Statements and claims regarding installment buying plans, finance, credit service, and carrying or service charges, including references to down payments, amounts, and frequency of payments, shall be accurate and clearly understandable, made in good faith, and in compliance with all other statutes or regulations regulating installment contracts. If a repayment price is offered, it shall be stated in specific amounts. The number of payments shall be stated, and the combination of amounts and number of payments advertised shall be readily available. Prices. If a price is stated in an advertisement which does not include all costs of items necessary for the proper function and appearance of the installed product, this shall be clearly and conspicuously qualified in conjunction with the stated price by an explanatory statement. When the price or specific credit terms are stated in an advertisement, the advertisement shall accurately describe what is being offered at that price or on those terms. Any limitations to, or conditions on, what will be supplied at the stated price or credit terms shall be clearly and conspicuously stated in immediate conjunction with the featured statement. If the price advertised does not include all of the accessories which either appear in the advertisement, or which are necessary to affect proper installation and proper use of the item, the advertisement shall state that fact clearly and prominently in immediate conjunction with the advertised price. Extra charges may not be used as a device to disguise the actual selling price of merchandise. Delivery Charges. If an extra charge is required to make delivery of an advertised home improvement item, it shall be clearly and conspicuously stated in the advertisement. Installation Charge. If installation is extra, the advertising shall disclose the fact clearly and conspicuously in immediate conjunction with the advertisement. For example: Installation Extra; Plus Installation; Installation at Extra Cost. Offer Not Valid in Maryland. A statement that an offer in an advertisement is not valid in Maryland shall be conspicuously displayed in the advertisement. A licensee may not promise to any owner that the owner's building will be used as a “model home,” “advertising job,” or for other similar purposes, when the licensee also will: 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. Licensees shall notify the Commission, in writing, within 10 days, of any change of control in ownership or management, or a change of address or trade name of the licensee. This notice shall be sent to the Executive Director of the Commission by certified mail, return receipt requested. In the performance of any home improvement contract, it shall be the nondelegable duty and obligation of the prime contractor to pay the subcontractors and workmen and materialmen so as to avoid the subjection of the property of the owner to mechanics' liens and materialmen's liens. The Commission may summarily dismiss any complaint brought against a licensee after 3 years from the date of the home improvement contract for the work from which the complaint arises, unless the Commission finds that the complainant's delay in bringing the complaint was justified and that the delay does not result in an undue burden for the licensee. An application for licensure as a home improvement contractor, whether it is in the name of an individual, partnership, proprietorship, or corporation, may not be accepted, if the name under which the licensee will be trading is the same as the name being used by an existing licensee, or is so similar to the name being used by an existing licensee that it will cause confusion on the part of the public at large. This regulation shall apply prospectively only to new applications received as of July 1, 1974. 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. An application for a license previously issued which is received within 2 years from the date of the previously issued license's expiration shall be presumed to be an application for a renewal of that license. Upon a showing of good cause by the applicant, an application described in §A(1) of this regulation may be considered an application for a new license. Applications After 2 Years of License Expiration. An application for a license previously issued which is received more than 2 years from the date of the previously issued license's expiration shall be presumed to be an application for a new license. Upon a showing of good cause by the applicant, an application described in §B(1), above, may be considered an application for a renewal of the previously issued license. 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. A contractor required to repay the Guaranty Fund pursuant to Business Regulation Article, §8-410(c), Annotated Code of Maryland, shall repay the amount paid from the Fund on the contractor's account plus interest at the rate of 10 percent per annum simple interest. 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: The party requesting the installation does not intend for the television antenna to be fabricated into and become a permanent fixed part of the building or adjacent land; The installation does not require any substantial modification or alteration of the building to mount the television antenna or to install the wiring from the television antenna; The attachment of the television antenna is accomplished by means of screws or other similar devices that may be removed and after removal the building does not require any repair other than repairing the screw holes and normal finishing work; The television antenna and its attaching mount may be removed without damage to the building, the land, or the television antenna and its attaching mount; and The installation does not require the permanent affixation of a pole or similar device to the building or adjacent land. 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. Under Business Regulation Article, §8-306(d)(1), Annotated Code of Maryland, an applicant's outstanding obligation is considered a financial obligation arising out of the applicant's conviction for violation of Business Regulation Article, §8-601, Annotated Code of Maryland. Trade Experience. An applicant for a home improvement contractor's license shall have at least 2 years of trade experience. “Trade experience” includes one or more of the following: Participation in a registered apprenticeship program; Employment in performing home improvements; Employment in performing commercial or residential construction, repairs, or renovations; Participation in a community service or charitable building or renovation program; or Performing repairs and improvements which require a building permit on one's home or the home of family members. Experience as a licensed home improvement salesperson for at least 2 years may be credited as trade experience, if the Home Improvement Commission determines that the applicant has gained substantial knowledge of the operation of a home improvement business. 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: Vocational school training in a building trade; or Participation in a building trade work-study program. 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 name of the person or organization that will conduct the arbitration; Whether any mandatory fees will be charged to the parties for participation in the arbitration and include the fee schedule; Whether the arbitrator's findings are binding; and A disclosure that, under Business Regulation Article, §8-405(c), Annotated Code of Maryland, a claim against the Home Improvement Guaranty Fund by an owner shall be stayed until completion of any mandatory arbitration proceeding. 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: Formal mediation of disputes between homeowners and contractors is available through the Maryland Home Improvement Commission; The Maryland Home Improvement Commission administers the Guaranty Fund, which may compensate homeowners for certain actual losses caused by acts or omissions of licensed contractors; and A homeowner may request that a contractor purchase a performance bond for additional protection against losses not covered by the Guaranty Fund. 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. Business Regulation Article, §§8-207(a), 8-212(a)(1) and (2), 8-309, 8-311(a)(11)—(13), 8-501(c)(1)(ix), and 8-616, Annotated Code of Maryland Effective date: Regulation .04 repealed and new Regulation adopted effective May 19, 1986 (13:10 Md. R. 1154) Regulation .06 repealed effective December 1, 1986 (13:24 Md. R. 2557) Regulations .07 and .20 amended effective January 16, 1984 (11:1 Md. R. 42) Regulations .23 and .24 amended effective November 19, 1984 (11:23 Md. R. 1991) Regulation .31 amended effective August 25, 1978 (5:17 Md. R. 1328) Regulation .32 amended effective August 3, 1977 (4:16 Md. R. 1211) Regulations .33—.34 effective June 19, 1974 Regulation .33 repealed and new Regulation .33 adopted effective November 19, 1984 (11:23 Md. R. 1991) Regulation .35 adopted effective June 1, 1979 (6:11 Md. R. 978) Regulation .36 adopted effective May 16, 1980 (7:10 Md. R. 952) Regulation .36D amended effective December 2, 1985 (12:24 Md. R. 2347) Regulation .37 adopted effective November 19, 1984 (11:23 Md. R. 1991) Regulation .38 adopted effective March 25, 1985 (12:6 Md. R. 594) Regulation .39 adopted effective March 25, 1985 (12:6 Md. R. 595) Regulation .40 adopted effective May 19, 1986 (13:10 Md. R. 1154) Regulation .41 adopted effective April 20, 1987 (14:8 Md. R. 938) Chapter revised effective December 14, 1987 (14:25 Md. R. 2658) Regulation .04B, D amended effective June 23, 2025 (52:12 Md. R. 599) Regulation .04B amended effective July 10, 2000 (27:13 Md. R. 1211) Regulation .06 adopted effective February 22, 1988 (15:4 Md. R. 471) Regulation .09B amended effective February 19, 2001 (28:3 Md. R. 205) Regulation .11 amended effective June 1, 1995 (22:10 Md. R. 705) Regulation .16C amended effective August 6, 1990 (17:15 Md. R. 1857) Regulation .17 repealed effective March 20, 2000 (27:5 Md. R. 583) Regulation .16H adopted effective June 1, 1995 (22:10 Md. R. 705) Regulation .18 D adopted effective May 27, 2024 (51:10 Md. R. 524) Regulation .19 amended effective June 23, 2025 (52:12 Md. R. 599) Regulation .22 adopted effective October 26, 1992 (19:21 Md. R. 1890) Regulation .23 adopted effective April 12, 1993 (20:7 Md. R. 641) Regulation .23A amended effective April 30, 1994 (21:7 Md. R. 529) Regulation .24 adopted effective April 30, 1994 (21:7 Md. R. 529) Regulation .25 adopted effective October 31, 1994 (21:20 Md. R. 1732) Regulation .26 adopted effective August 20, 2012 (39:16 Md. R. 1080) Regulation .27 adopted effective April 8, 2019 (46:7 Md. R. 370)