Procurement Contracts and Construction Contracts - Payments

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1336*

HOUSE BILL 1336
P2, N1 6lr2882
CF SB 671
By: Delegate Wilson
Introduced and read first time: February 12, 2026
Assigned to: Government, Labor, and Elections

A BILL ENTITLED

AN ACT concerning 1

Procurement Contracts and Construction Contracts – Payments 2

FOR the purpose of making certain provisions of law governing construction contracts 3
applicable to certain local government owners; altering certain provisions of law 4
relating to the payment of contractors and subcontractors in procurement contracts 5
and construction contracts; requiring certain notification if all or part of a payment 6
is withheld; altering certain provisions of law relating to the accrual of interest for 7
unpaid amounts; and generally relating to payment in procurement and construction 8
contracts. 9

BY repealing and reenacting, without amendments, 10
Article – Real Property 11
Section 9–301(a) and 9–303 12
Annotated Code of Maryland 13
(2023 Replacement Volume and 2025 Supplement) 14

BY repealing and reenacting, with amendments, 15
Article – Real Property 16
Section 9–301(d) and 9–302 17
Annotated Code of Maryland 18
(2023 Replacement Volume and 2025 Supplement) 19

BY repealing and reenacting, with amendments, 20
Article – State Finance and Procurement 21
Section 11–101, 15–103, and 15–104 22
Annotated Code of Maryland 23
(2021 Replacement Volume and 2025 Supplement) 24

BY repealing 25
Article – State Finance and Procurement 26
Section 15–105 27
2 HOUSE BILL 1336

Annotated Code of Maryland 1
(2021 Replacement Volume and 2025 Supplement) 2

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARY LAND, 3
That the Laws of Maryland read as follows: 4

Article – Real Property 5

9–301. 6

(a) In this subtitle the following words have the meanings indicated. 7

(d) (1) “Owner” means: 8

[(1)] (I) The owner of the land; or 9

[(2)] (II) An owner’s tenant for life or for years, provided the tenant enters 10
into the contract with the contractor. 11

(2) “OWNER” MAY INCLUDE A COUNTY , MUNICIPAL CORPORATION, 12
BOARD OF EDUCATION, OR PUBLIC AUTHORITY OR INSTRUMENTALITY. 13

9–302. 14

(a) Except for work done or materials fur nished under a contract enumerated in 15
§ 9–305 of this subtitle, a contractor or subcontractor who does work or furnishes material 16
under a contract shall be entitled to prompt payment under subsection (b) of this section. 17

(b) (1) If the contract is with an owner, the owner shall: 18

(i) If the contract does not provide for specific dates or times of 19
payment, pay to the contractor undisputed amounts owed under the terms of the written 20
contract, within the earlier of: 21

1. 30 days after the day on which the occupancy permit is 22
granted; or 23

2. 30 days after the day on which the owner or the owner’s 24
agent takes possession; or 25

(ii) If the contract provides for specific dates or times of payment, 26
pay to the contractor undisputed amounts owed within 7 days after the date or time 27
specified in the contract. 28

(2) Paragraph (1) of this subsection does not apply to any contract between 29
the contractor and[: 30
HOUSE BILL 1336 3

(i) The] THE State[; 1

(ii) A county; 2

(iii) A municipal corporation; 3

(iv) A board of education; or 4

(v) A public authority or instrumentality]. 5

(3) If the contract is not with an owner, the contractor or subcontractor 6
shall pay undisputed amounts owed to its subcontractors within 7 days after receipt by the 7
contractor or subcontractor of each payment received for its subcontractors’ work or 8
materials. 9

(C) (1) IF A PARTY WITHHOLDS ALL OR PART OF AN AM OUNT INVOICED 10
BY A PERFORMING PART Y UNDER SUBSECTION (B) OF THIS SECTION , THE 11
WITHHOLDING PARTY SH ALL NOTIFY THE PERFO RMING PARTY IN WRIT ING AND 12
WITH REASONABLE SPEC IFICITY WITHIN 15 DAYS AFTER THE RECEI PT OF THE 13
INVOICE OF THE INTENTION TO WITHHOLD ALL OR PART OF THE PAYMENT AND THE 14
REASON FOR WITHHOLDI NG, INCLUDING IDENTIFYIN G THE WORK FOR WHICH 15
PAYMENT IS NOT BEING MADE AND THE AMOUNT BEING WITHHELD FOR THAT WORK. 16

(2) ANY PAYMENT WITHHELD UNDER THIS SUBSECTIO N MAY NOT 17
EXCEED TWICE THE AMOUNT IN DISPUTE. 18

(D) (1) IF A PARTY FAILS TO M AKE PAYMENT IN ACCOR DANCE WITH 19
SUBSECTION (B) OF THIS SECTION , INTEREST SHALL ACCRUE AT THE RATE OF 2% 20
PER MONTH ON ANY AMOUNT THAT REMAINS UNPAID. 21

(2) INTEREST UNDER PARAGRAPH (1) OF THIS SUBSECTION: 22

(I) SHALL ACCRUE BEGINNIN G ON THE 61ST DAY AFTER A 23
PARTY RECEIVES AN INVOICE SUBMITTED UNDER THE TERMS OF THE CONTRACT; 24

(II) SHALL BE PAID TO T HE PERFORMING PARTY AT THE TIME 25
OF PAYMENT OF THE INVOICE; AND 26

(III) MAY NOT BE WITHHELD FROM A PERFORMING PARTY. 27

(3) THE REQUIREMENTS FOR THE ACCRUAL AND PAYM ENT OF 28
INTEREST UNDER THIS SECTION: 29

4 HOUSE BILL 1336

(I) MAY NOT BE WAIVED BY ANY PARTY; AND 1

(II) MAY NOT BE ALTERED BY CONTRACT. 2

(E) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO APPLY TO OR 3
PROHIBIT THE INCLUSI ON OF ANY RETAINAGE PROVISIONS IN A CONS TRUCTION 4
CONTRACT. 5

(F) (1) THIS SUBSECTION DOES NOT APPLY TO AN EMER GENCY 6
CONTRACT ENTERED INTO WITH A COUNTY, MUNICIPAL CORPORATION, BOARD OF 7
EDUCATION, OR PUBLIC AUTHORITY OR INSTRUMENTALITY. 8

(2) A CONTRACTOR OR SUBCON TRACTOR WHO HAS NOT RECEIVED 9
PAYMENT IN ACCORDANC E WITH SUBSECTION (B) OF THIS SECTION , AFTER 10
PROVIDING 14 DAYS’ WRITTEN NOTICE TO THE OWNER OR PARTY RESPONSIBLE FOR 11
PAYMENT, MAY STOP WORK UNTIL PAYMENT IS RECEIVED. 12

(3) A CONTRACTOR OR SUBCON TRACTOR WHO STOPS WO RK UNDER 13
THIS SUBSECTION MAY NOT BE REPLACED BY T HE OWNER OR GENERAL 14
CONTRACTOR OR SUBCONTRACTOR OR DEEMED IN VIOLATION OR DEFAULT OF THE 15
APPLICABLE CONTRACT. 16

9–303. 17

(a) In this section, “undisputed amounts” includes any retention proceeds that 18
exceed the amount authorized to be retained under § 9–304 of this subtitle. 19

(b) In addition to any other remedy provided unde r any other provision of law, a 20
court of competent jurisdiction, for good cause shown may: 21

(1) Award any equitable relief for prompt payment of undisputed amounts 22
that it considers necessary, including the enjoining of further violations; and 23

(2) In any action, award to the prevailing party: 24

(i) Interest from the date the court determines that the amount 25
owed was due; and 26

(ii) Any reasonable costs incurred. 27

(c) If a court determines that an owner, contractor, or subcontractor has acted in 28
bad faith by failing to pay any undisputed amounts owed as required under § 9–302 of this 29
subtitle, the court may award to the prevailing party reasonable attorney’s fees. 30

Article – State Finance and Procurement 31
HOUSE BILL 1336 5

11–101. 1

(a) In this Division II the following words have the meanings indicated unless: 2

(1) the context clearly requires a different meaning; or 3

(2) a different definition is provided for a particular title or provision. 4

(b) (1) “Architectural services” means professional or creative work that: 5

(i) is performed in connection with the design and supervision of 6
construction or landscaping; and 7

(ii) requires architectural education, training, and experience. 8

(2) “Architectural services” includes consultation, research, investigat ion, 9
evaluation, planning, architectural design and preparation of related documents, and 10
coordination of services that structural, civil, mechanical, and electrical engineers and 11
other consultants provide. 12

(3) “Architectural services” does not include construction inspection 13
services, services provided in connection with an energy performance contract, or 14
structural, mechanical, plumbing, or electrical engineering. 15

(c) “Bid” means a response to an invitation for bids under § 13–103 of this article. 16

(d) “Board” means the Board of Public Works. 17

(e) “Chief Procurement Officer” means an official of the Department of General 18
Services who: 19

(1) shall be appointed by the Governor with the advice and consent of the 20
Senate; 21

(2) except for procurement a ctivity by a primary procurement unit other 22
than the Department of General Services, is the head of all procurement activity for the 23
Executive Branch of State government; and 24

(3) may engage in or control procurement for the Department of General 25
Services in accordance with § 12–107(b)(2) of this article. 26

(f) (1) “Construction” means the process of building, altering, improving, or 27
demolishing an improvement to real property. 28

(2) “Construction” includes any major work necessary to repair, prevent 29
damage to, or sustain existing components of an improvement to real property. 30
6 HOUSE BILL 1336

(3) “Construction” does not include the maintenance or routine operation 1
of an existing improvement to real property, or activities related to an energy performance 2
contract. 3

(F–1) (1) “CONSTRUCTION CONTRACT” MEANS A CONTRACT TO PERFORM 4
CONSTRUCTION–RELATED SERVICES THAT IS BETWEEN: 5

(I) A CONTRACTOR AND A SUBCONTRACTOR; OR 6

(II) A SUBCONTRACTOR AND LOWER–TIER SUBCONTRACTOR. 7

(2) “CONSTRUCTION CONTRACT” DOES NOT INCLUDE A CONTRACT 8
FOR SALE , HOUSING, OR HOME IMPROVEMENT , AS DEFINED IN § 8–101 OF THE 9
BUSINESS REGULATION ARTICLE. 10

(g) (1) “Construction related services” means feasibility studies, surveys, 11
construction management, construction inspection, and similar effort s associated with 12
construction or the acquisition of public improvements as defined in § 4 –401(d) of this 13
article. 14

(2) “Construction related services” does not include services provided in 15
connection with an energy performance contract. 16

(G–1) “CONTRACTOR” MEANS A PARTY TO A P ROCUREMENT CONTRACT 17
OTHER THAN A UNIT. 18

(h) “County” means a county of the State and, unless expressly provided 19
otherwise, Baltimore City. 20

(i) “Energy performance contract” means an agreement for the provision of 21
energy services, including electricity, heating, ventilation, cooling, steam, or hot water, in 22
which a person agrees to design, install, finance, maintain, or manage energy systems or 23
equipment to improve the energy efficiency of a building or facility in exchange for a portion 24
of the energy savings. 25

(j) (1) “Engineering services” means professional or creative work that: 26

(i) is performed in connection with any utility, structure, building, 27
machine, equipment, or process, including structural, mechanical, p lumbing, electrical, 28
geotechnical, and environmental engineering; and 29

(ii) requires engineering education, training, and experience in the 30
application of special knowledge of the mathematical, physical, and engineering sciences. 31

HOUSE BILL 1336 7

(2) “Engineering services” includes consultation, investigation, evaluation, 1
planning, design, and inspection of construction to interpret and ensure compliance with 2
specifications and design within the scope of inspection services. 3

(3) “Engineering services” does not include services provided in connection 4
with an energy performance contract. 5

(k) “Information technology” has the meaning stated in § 3.5–301 of this article. 6

(l) “Invitation for bids” means any document used for soliciting bids under § 7
13–103 of this article. 8

(L–1) “LOWER–TIER SUBCONTRACTOR ” MEANS A PERSON WHO W ILL 9
PERFORM ALL OR PART OF THE CONSTRUCTION –RELATED SERVICES ON A 10
CONSTRUCTION CONTRAC T UNDER AN AGREEMENT WITH A SUBCONTRACTOR , 11
REGARDLESS OF TIER. 12

(m) “Person” means an individual, receiver, trustee, guardian, personal 13
representative, fiduciary, or representative of any kind and any partnership, firm, 14
association, corporation, or other entity. 15

(n) “Primary procurement units” means: 16

(1) the State Treasurer; 17

(2) the Department of General Services; 18

(3) the Department of Transportation; 19

(4) the University System of Maryland; 20

(5) the Maryland Port Commission; 21

(6) the Morgan State University; and 22

(7) the St. Mary’s College of Maryland. 23

(o) (1) “Procurement” means the process of: 24

(i) leasing real or personal property as lessee; or 25

(ii) buying or otherwise obtaining supplies, services, construction, 26
construction related services, architectural services, engineering services, or services 27
provided under an energy performance contract. 28

(2) “Procurement” includes the solicitation and award of procurement 29
contracts and all phases of procurement contract administration. 30
8 HOUSE BILL 1336

(p) (1) “Procurement contract” means an agreement in any form entered into 1
by a unit for procurement. 2

(2) “Procurement contract” does not include: 3

(i) a collective bargaining agreement with an employee 4
organization; 5

(ii) an agreement with a contractual employee, as defined in § 6
1–101(d) of the State Personnel and Pensions Article; 7

(iii) a Medicaid, Judicare, or similar reimbursement contract for 8
which law sets: 9

1. user or recipient eligibility; and 10

2. price payable by the State; or 11

(iv) a Medicaid contract with a managed care organization, as 12
defined in § 15–101(e) of the Health – General Article as to which regulations adopted by 13
the Department establish: 14

1. recipient eligibility; 15

2. minimum qualifications for managed care organizations; 16
and 17

3. criteria for enrolling recipients in managed care 18
organizations. 19

(q) “Procurement officer” means an individual authorized by a unit to: 20

(1) enter into a procurement contract; 21

(2) administer a procurement contract; or 22

(3) make determinations and findings with respect to a procurement 23
contract. 24

(r) “Proposal” means a response to any solicitation other than an invitation for 25
bids. 26

(s) “Request for proposals” means any document used for soliciting proposals. 27

(t) “Responsible bidder or offeror” means a person who: 28

HOUSE BILL 1336 9

(1) has the capability in all re spects to perform fully the requirements for 1
a procurement contract; and 2

(2) possesses the integrity and reliability that will ensure good faith 3
performance. 4

(u) “Responsive bid” means a bid that: 5

(1) is submitted under § 13–103 of this article; and 6

(2) conforms in all material respects to the invitation for bids. 7

(v) (1) Except as provided in paragraph (3) of this subsection, “services” 8
means: 9

(i) the labor, time, or effort of a contractor; and 10

(ii) any product or report necessarily as sociated with the rendering 11
of a service. 12

(2) “Services” includes: 13

(i) services provided by attorneys, accountants, physicians, 14
consultants, and other professionals who are independent contractors; and 15

(ii) information technology services and cybersecurity. 16

(3) “Services” does not include: 17

(i) construction related services; 18

(ii) architectural services; 19

(iii) engineering services; or 20

(iv) energy performance contract services. 21

(w) “State” means: 22

(1) a state, possession, territory, or commonwealth of the United States; or 23

(2) the District of Columbia. 24

(x) (1) “State correctional facilities” means correctional institutions, and all 25
places of correctional confinement, that are located within the State of Maryland and ar e 26
primarily operated by the Maryland State government. 27

10 HOUSE BILL 1336

(2) “State correctional facilities” includes Patuxent Institution. 1

(y) “Statewide contract” means a contract that has been procured by a primary 2
procurement unit to be used by all units or any entity listed in § 4–316 of this article. 3

(Y–1) “SUBCONTRACTOR” MEANS A PERSON , OTHER THAN A LABORER OR 4
SUPPLIER OF MATERIALS, THAT MAKES AN AGREEMENT WITH: 5

(1) A CONTRACTOR TO PERFORM ALL OR PART OF A CONSTRUCTION 6
CONTRACT; OR 7

(2) A LOWER–TIER SUBCONTRACTOR TO PERFORM ALL OR PART OF A 8
CONSTRUCTION CONTRACT WITH THE LOWER–TIER SUBCONTRACTOR. 9

(z) (1) “Supplies” means: 10

(i) insurance; 11

(ii) tangible personal property including information technology 12
hardware and software; 13

(iii) printing; and 14

(iv) services necessarily associated with insurance or tangible 15
personal property. 16

(2) “Supplies” does not include: 17

(i) an interest in real property; or 18

(ii) tangible personal property acquired or used in connection with 19
an energy performance contract. 20

(aa) (1) “Unit” means an officer or other entity that is in the Executive Branch 21
of the State government and is authorized by law to enter into a procurement contract. 22

(2) “Unit” does not include: 23

(i) a bistate, mul tistate, bicounty, or multicounty governmental 24
agency; or 25

(ii) a special tax district, sanitary district, drainage district, soil 26
conservation district, water supply district, or other political subdivision of the State. 27

15–103. 28

HOUSE BILL 1336 11

(a) (1) [It] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 1
SUBSECTION, IT is the policy of the State to make a payment under a procurement contract 2
WITHIN 30 DAYS: 3

[(1)] (I) [within 30 days ] after the day on which the payment becomes 4
due [and the unit receives a proper invoice] UNDER THE PROCUREMENT CONTRACT; or 5

(II) IF LATER, AFTER THE DAY ON WHICH THE UNIT RECEIVES A 6
PROPER INVOICE SUBMI TTED UNDER THE TERMS OF THE PROCUREMENT 7
CONTRACT. 8

(2) [for] FOR a small business reserve contract, IT IS THE POLICY OF THE 9
STATE TO MAKE A PAYMENT within 15 days: 10

(I) after the day on which the payment becomes due [and the unit 11
receives a proper invoice] UNDER THE PROCUREMENT CONTRACT; OR 12

(II) IF LATER, AFTER THE DAY ON WHICH THE UNIT RECEIVES A 13
PROPER INVOICE SUBMI TTED UNDER THE TERMS OF THE PROCUREMENT 14
CONTRACT. 15

[(b) Interest shall accrue in accordance with § 15–104 of this subtitle.] 16

(B) (1) A PROCUREMENT CONTRACT SHALL INCLUDE A PROVISION THAT 17
REQUIRES THE UNIT TO PAY THE CONTRACTOR: 18

(I) WITHIN 30 DAYS AF TER THE RECEIPT OF A N INVOICE 19
SUBMITTED UNDER THE TERMS OF THE PROCURE MENT CONTRACT FOLLOW ING 20
SATISFACTORY COMPLET ION OF THE PORTION O F THE WORK FOR WHICH THE 21
CONTRACTOR HAS PROPERLY INVOICED; AND 22

(II) INTEREST IN ACCORDAN CE WITH § 15–104 OF THIS 23
SUBTITLE FOR ANY LATE PAYMENTS. 24

(2) PARAGRAPH (1) OF THIS SUBSECTION M AY NOT BE CONSTRUED 25
TO REQUIRE A UNIT TO PAY AMOUNTS INVOICED THAT ARE SUBJECT TO 26
WITHHOLDING AS A RES ULT OF THE CONTRACTO R’S NONCOMPLIANCE WITH THE 27
PROCUREMENT CONTRACT. 28

(3) (I) IF A UNIT WITHHOLDS ALL OR PART OF AN AMOUNT 29
INVOICED BY A CONTRA CTOR UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE 30
UNIT SHALL NOTIFY TH E CONTRACTOR IN WRIT ING, WITHIN 15 DAYS AFTER THE 31
DATE OF THE RECEIPT OF THE INVOICE, OF: 32

12 HOUSE BILL 1336

1. THE UNIT ’S INTENT TO WITHHO LD ALL OR PART OF 1
THE PAYMENT; AND 2

2. THE REASON FOR THE W ITHHOLDING, INCLUDING 3
IDENTIFICATION OF THE WORK FOR WHICH PAYMENT IS NOT BEING MADE. 4

(II) A PAYMENT WITHHELD UNDER THIS PARAGRAPH MA Y NOT 5
EXCEED TWICE THE AMOUNT IN DISPUTE. 6

(C) (1) A CONSTRUCTION CONTRACT SHALL INCLUDE A PROVISION THAT 7
REQUIRES A CONTRACTO R OR SUBCONTRACTOR T O PAY A SUBCONTRACTO R OR 8
LOWER–TIER SUBCONTRACTOR: 9

(I) WITHIN 7 DAYS AFTER THE RECEI PT OF PAYMENT BY THE 10
UNIT TO THE CONTRACTOR OR BY THE CONTRACTOR TO THE SUBCONTRACTOR, FOR 11
THE SATISFACTORY COMPLETION OF THE PORTION OF THE WORK FOR W HICH THE 12
SUBCONTRACTOR OR LOW ER–TIER SUBCONTRACTOR H AS PROPERLY INVOICED ; 13
AND 14

(II) INTEREST IN ACCORDAN CE WITH § 15–104 OF THIS 15
SUBTITLE FOR ANY LATE PAYMENTS. 16

(2) PARAGRAPH (1) OF THIS SUBSECTION M AY NOT BE CONSTRUED 17
TO REQUIRE A CONTRACTOR OR SUBCONTRACTOR TO PAY AMOUNTS INVOICED THAT 18
ARE SUBJECT TO WITHH OLDING AS A RESULT O F THE SUBCONTRACTOR ’S OR 19
LOWER–TIER SUBCONTRACTOR ’S NONCOMPLIANCE WITH THE CONSTRUCTION 20
CONTRACT. 21

(3) (I) IF A CONTRACTOR OR SU BCONTRACTOR WITHHOLDS ALL 22
OR PART OF AN AMOUNT INVOICED UNDER PARAGRAPH (1) OF THIS SUBSECTION , 23
THE CONTRACTOR OR SU BCONTRACTOR SHALL NO TIFY THE SUBCONTRACT OR OR 24
LOWER–TIER SUBCONTRACTOR IN WRITING, WITHIN 15 DAYS AFTER THE DATE OF 25
THE RECEIPT OF THE INVOICE, OF: 26

1. THE INTENT OF THE CO NTRACTOR OR 27
SUBCONTRACTOR TO WITHHOLD ALL OR PART OF THE PAYMENT; AND 28

2. THE REASON FOR THE W ITHHOLDING, INCLUDING 29
IDENTIFICATION OF THE WORK FOR WHICH PAYMENT IS NOT BEING MADE. 30

(II) A PAYMENT WITHHELD UNDER THIS PARAGRAPH MA Y NOT 31
EXCEED TWICE THE AMOUNT IN DISPUTE. 32

HOUSE BILL 1336 13

(D) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO APPLY TO OR 1
PROHIBIT THE INCLUSI ON OF ANY RETAINAGE PROVISIONS IN A PROC UREMENT 2
CONTRACT OR CONSTRUCTION CONTRACT. 3

(E) IN THE CASE OF A SUCC ESSFUL ACTION TO ENF ORCE THE 4
REQUIREMENTS OF THIS SECTION, A PERSON WHO VIOLATES THIS SECTION SHALL 5
BE LIABLE FOR THE COSTS OF THE ACTION AND REASONABLE ATTORNEY’S FEES AS 6
DETERMINED BY THE COURT. 7

15–104. 8

(a) [Except as provi ded in § 15 –105 of this subtitle, interest ] INTEREST shall 9
accrue at the rate of [9% per annum] 2% PER MONTH on any amount that: 10

(1) is due and payable by law and under the written procurement contract 11
OR CONSTRUCTION CONTRACT; and 12

(2) remains unpaid more than [37] 60 days after a unit receives an invoice 13
SUBMITTED UNDER THE TERMS OF THE CONTRACT. 14

(b) Interest shall accrue beginning on the [31st] 61ST day after: 15

(1) the day on which payment becomes due under a procurement contract 16
OR CONSTRUCTION CONTRACT; or 17

(2) if later, the day on which the unit receives an invoice SUBMITTED 18
UNDER THE TERMS OF THE CONTRACT. 19

(C) (1) INTEREST UNDER THIS SECTION: 20

(I) SHALL BE PAID TO THE PERFORMING PARTY AT THE TIME 21
OF PAYMENT OF THE INVOICE; AND 22

(II) MAY NOT BE WITHHELD FROM A PERFORMING PARTY. 23

(2) THE REQUIREMENTS FOR THE ACCRUAL AND PAYM ENT OF 24
INTEREST UNDER THIS SECTION: 25

(I) MAY NOT BE WAIVED BY ANY PARTY; AND 26

(II) MAY NOT BE ALTERED BY CONTRACT. 27

[15–105. 28

14 HOUSE BILL 1336

A unit is not liable under § 15–104 of this subtitle for interest: 1

(1) unless within 30 days after the date on the State’s check for the amount 2
on which the interest accrued, the contractor submits an invoice for the interest; 3

(2) if a contract claim has been filed under Subtitle 2 of this title; 4

(3) accruing more than 1 year after the 31st day after the unit receives an 5
invoice; or 6

(4) on an amount that represents unpaid interest.] 7

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2026. 9