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*hb1216*
HOUSE BILL 1216
C4 6lr3526
By: Delegate Phillips
Introduced and read first time: February 11, 2026
Assigned to: Government, Labor, and Elections
Committee Report: Favorable
House action: Adopted
Read second time: March 7, 2026
CHAPTER ______
AN ACT concerning 1
Insurance – Certificates of Guarantee for County Bond Requirements – All 2
Counties 3
FOR the purpose of authorizing all counties, rather than only specified counties, to honor 4
certificates of guarantee that are issued by certain associations or on behalf of certain 5
contractors in order to satisfy certain county bond requirements; providing that a 6
county is not required under certain provisions of law to honor certain certificates of 7
guarantee; and generally relating to certificates of guarantee. 8
BY repealing and reenacting, with amendments, 9
Article – Insurance 10
Section 1–203 11
Annotated Code of Maryland 12
(2017 Replacement Volume and 2025 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Insurance 16
1–203. 17
(a) (1) In this section the following words have the meanings indicated. 18
(2) “Certificate of guarantee” means an instrument that is issued: 19
2 HOUSE BILL 1216
(i) by a nonprofit association of contractors, or its wholly owned 1
subsidiary that is approved to operate by [Baltimore County, Baltimore City, Calvert 2
County, Charles County, Howard County, Prince George’s County, Montgomery County, 3
St. Mary’s County, or Washington County, as appropriate] A COUNTY; and 4
(ii) on behalf of a contractor for the purpose of satisfying: 5
1. county bond requirements for public improvements; or 6
2. other county bond requirements. 7
(3) “Contractor” means a person that, for a fixed price, commission, fee, or 8
percentage, undertakes to bid on or accepts or offers to accept orders or contracts to perform 9
or supervise the construction, improvemen t, or maintenance of a building, structure, or 10
road. 11
(b) This article does not apply to a certificate of guarantee. 12
(c) [Baltimore County, Baltimore City, Calvert County, Charles County, Howard 13
County, Montgomery County, Prince George’s County, St. Mary’s County, and Washington 14
County] A COUNTY: 15
(1) may honor certificates of guarantee; but 16
(2) [are] IS not required under this article to honor certificates of 17
guarantee. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 19
October 1, 2026. 20
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
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President of the Senate.