Maryland Laws Affecting Contractors Effective July 1, 2011

Maryland Laws Affecting Contractors Effective July 1, 2011

Effective July 1, 2011 certain laws passed by the Maryland General Assembly and signed by the Governor will go into effect. The following Laws may have an impact on your business as a contractor:

Senate Bill 120/House Bill 456 – Minority Business Participation

This Bill extends the MBE program for one year, maintaining the 25 % participation goal. It also eliminated statutory sub-goals that had required the 7 percent and 10 percent participation for African American owned and women owned businesses respectively. The Bill requires the Governor’s Office of Minority Affairs in consultation with others to establish guidelines and possible sub-goals.

House Bill 67 and House Bill 69 – Architects and Engineers

These bills require that the State Board of Architects and the State Board of Engineers submit reports by October 1, 2011 to determine whether increases in license fees are warranted.

HB362 – Maryland Home Improvement Commission

This bill extended the operations of the MHIC to July 1, 2022 and the Maryland Mold Remediation Services Act to July 1, 2019

SB 334/HB 379 New Home Deposits and Payments

This bill made clear that money received by a new home builder is held in trust for the benefit of the purchaser. This law is distinct from the construction trust laws applicable to commercial contracts. For new homes, money received by a general contractor is held in trust for the express benefit of the purchaser of the new home. For commercial contracts, money received by the general contractor is held in trust for the benefit of the subcontractors. This bill also clarifies that the new home builder may make withdraws from an escrow account in accordance with the draw schedule.

Special Session of the General Assembly

The General Assembly will hold a special session in October of 2011. Contractors should pay close attention as the General Assembly has historically used special sessions to pass unpopular and controversial legislation aimed at closing budget deficits. During the 2007 special session, the General Assembly passed the controversial “technology tax” that services provided by IT companies in Maryland.

For further information, contact Matt Hjortsberg at 410583-2400 or at


210 W. Pennsylvania Avenue, Suite 400
Towson, Maryland 21204