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*hb1351*
HOUSE BILL 1351
C2 6lr1622
HB 1348/25 – ECM CF SB 929
By: Delegates Amprey and Ruff, Ruff, and Bhandari
Introduced and read first time: February 12, 2026
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 10, 2026
CHAPTER _____
AN ACT concerning 1
Home Improvement Contractors – Disaster Mitigation Services and Fraudulent 2
Insurance Acts – Regulation and Prohibition 3
FOR the purpose of altering the definition of “home improvement” to include the provision 4
of certain disaster mitigation services for purposes of licensing and regulation of 5
home improvement contractors; exempting certain home improvement contractors 6
from certain home improvement contractor licensing requirements in certain 7
instances; authorizing a certain owner to rescind a home improvement contract for 8
disaster mitigation services under certain circumstances; authorizing the governing 9
body of a county to impose certain limitations on in–person solicitation of a victim of 10
a disaster b y a contractor offering disaster mitigation services; repealing a certain 11
intent requirement for a certain fraudulent insurance act; establishing that it is a 12
fraudulent insurance act for a certain person to provide a payment, referral fee, 13
rebate, gift, or anything of value to a certain person in connection with a claim for 14
the repair or replacement of a residential structure; and generally relating to 15
solicitation following a disaster. 16
BY repealing and reenacting, with amendments, 17
Article – Business Regulation 18
Section 8–101, 8–301(c)(6) and (7), and 8–501(c)(1)(viii) and (ix) 19
Annotated Code of Maryland 20
(2024 Replacement Volume and 2025 Supplement) 21
BY adding to 22
Article – Business Regulation 23
2 HOUSE BILL 1351
Section 8–301(c)(8), 8–501(c)(1)(x), 8–501.1, and 8–507 1
Annotated Code of Maryland 2
(2024 Replacement Volume and 2025 Supplement) 3
BY repealing and reenacting, without amendments, 4
Article – Business Regulation 5
Section 8–301(a) and (b) and 8–501(c)(2) and (3) and (f) 6
Annotated Code of Maryland 7
(2024 Replacement Volume and 2025 Supplement) 8
BY repealing and reenacting, with amendments, 9
Article – Insurance 10
Section 27–407.2 11
Annotated Code of Maryland 12
(2017 Replacement Volume and 2025 Supplement) 13
BY adding to 14
Article – Insurance 15
Section 27–407.3 16
Annotated Code of Maryland 17
(2017 Replacement Volume and 2025 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Business Regulation 21
8–101. 22
(a) In this title the following words have the meanings indicated. 23
(b) “Commission” means the Maryland Home Improvement Commission. 24
(c) “Contractor” means a person, other than an employee of an owner, who 25
performs or offers or agrees to perform a home improvement for an owner. 26
(d) “Contractor license” means a license issued by the Commission to act as a 27
contractor. 28
(E) “DISASTER MITIGATION SERVICES” INCLUDES: 29
(1) BOARDING UP WINDOWS OR DOORS TO SECURE A BUILDING; 30
(2) DEMOLITION OF A STRUCTURE TO PREVENT FURTHER DAMAGE; 31
(3) SETTING WATER MITIGATION EQUIPMENT; 32
HOUSE BILL 1351 3
(4) TARPING OR CAULKING A ROOF OR BUILDING A FTER DAMAGE ; 1
AND 2
(5) SECURING A WALL OR ROOF TO PREVENT FURTHER DAMAGE. 3
[(e)] (F) “Fund” means the Home Improvement Guaranty Fund. 4
[(f)] (G) “Hearing board” means a home improvement hearing board appointed 5
by the Commission under § 8–313 of this title. 6
[(g)] (H) (1) “Home improvement” means: 7
(i) 1. the addition to or alteration, conversion, improvement, 8
modernization, remodeling, repair, or replacement of a building or part of a building that 9
is used or designed to be used as a residence or dwelling place or a structure adjacent to 10
that building; or 11
[(ii)] 2. an improvement to land adjacent to the building; OR 12
(II) THE PROVISION OF DISASTER MITIGATION SERVICES FOR A 13
BUILDING OR PART OF A BUILDING THAT IS U SED OR DESIGNED TO B E USED AS A 14
RESIDENCE OR DWELLING PLACE OR A STRUCTURE ADJACENT TO THAT BUILDING. 15
(2) “Home improvement” includes: 16
(i) construction, improvement, or replacement, o n land adjacent to 17
the building, of a driveway, fall –out shelter, fence, garage, landscaping, deck, pier, porch, 18
or swimming pool; 19
(ii) a shore erosion control project, as defined under § 8 –1001 of the 20
Natural Resources Article, for a residential property; 21
(iii) connection, installation, or replacement, in the building or 22
structure, of a dishwasher, disposal, or refrigerator with an icemaker to existing exposed 23
household plumbing lines; 24
(iv) installation, in the building or structure, of an awni ng, fire 25
alarm, or storm window; and 26
(v) work done on individual condominium units; 27
(VI) WORK DONE ON TREES , INCLUDING REMOVAL SE RVICES; 28
AND 29
(VII) WATER REMEDIATION SE RVICES THAT RESTORE , CLEAN, 30
SANITIZE, OR RETURN A PROPERTY TO BE SAFE AND HABITABLE. 31
4 HOUSE BILL 1351
(3) “Home improvement” does not include: 1
(i) construction of a new home; 2
(ii) work done to comply with a guarantee of completion for a new 3
building project; 4
(iii) connection, installation, or replacement of an appliance to 5
existing exposed plumbing lines that requires alteration of the plumbing lines; 6
(iv) sale of materials, if the seller does not arrange to perform or does 7
not perform directly or indirectly any work in connection with the installation or application 8
of the materials; 9
(v) work done on apartment buildings that contain four or more 10
single–family units; or 11
(vi) work done on the commonly owned areas of condominiums. 12
[(h)] (I) “Home improvement contract” means an oral or written agreement 13
between a contractor and owner for the contractor to perform a home improvement. 14
[(i)] (J) (1) “License” means, except where it refers to a license other than 15
one issued under this title, a license issued by the Commission. 16
(2) “License” includes: 17
(i) a contractor license; and 18
(ii) a salesperson license. 19
[(j)] (K) “Licensed contractor” means a person who is licensed by the 20
Commission to act as a contractor. 21
[(k)] (L) “Owner” includes a homeowner, tenant, or other person who buys, 22
contracts for, orders, or is entitled to a home improvement. 23
[(l)] (M) “Salesperson” means a person who sells a home improvement. 24
[(m)] (N) “Salesperson license” means a license issued by the Commission to sell 25
a home improvement. 26
[(n)] (O) “Sell a home improvement” means: 27
HOUSE BILL 1351 5
(1) to negotiate or offer to negotiate a home improvement contract with an 1
owner; or 2
(2) to seek to get a home improvement contract from an owner. 3
[(o)] (P) “Subcontractor” means a person, other than a laborer or supplier of 4
materials, who makes an oral or written agreement with: 5
(1) a contractor to perform all or part of a home improvement contract; or 6
(2) another subcontractor to perform all or part of a subcontract to a home 7
improvement contract. 8
8–301. 9
(a) Except as otherwise provided in this title, a person must have a contractor 10
license whenever the person acts as a contractor in the State. 11
(b) Except as otherwise provided in this title, a person must have a salesperson 12
license or contractor license whenever the person sells a home improvement in the State. 13
(c) This section does not apply to: 14
(6) a marine contractor licensed under Title 17, Subtitle 3 of the 15
Environment Article; [or] 16
(7) a person who is selling a home improvement to be performed by a 17
person described in item (4) of this subsection; OR 18
(8) ON OR BEFORE NOVEMBER 1, 2028, A HOME IMPROVEMENT 19
CONTRACTOR THAT PROV IDES DISASTER MITIGA TING SERVICES IF THE HOME 20
IMPROVEMENT CONTRACTOR: 21
(I) COMPLIES WITH THE REQUIREMENTS OF § 8–501.1 OF THIS 22
TITLE; 23
(II) IS SUBSTANTIALLY WORKING TOWARD A LICENSE; AND 24
(III) IF THE HOME IMPROVEM ENT CONTRACTOR IS A COMPANY, 25
CORPORATION, OR OTHER ENTITY , FORMED, INCORPORATED, OR REGISTERED IN 26
THE STATE ON OR BEFORE OCTOBER 1, 2026. 27
8–501. 28
(c) (1) In addition to any other m atters on which the parties lawfully agree, 29
each home improvement contract shall contain: 30
6 HOUSE BILL 1351
(viii) a notice that gives the telephone number and website of the 1
Commission and states that: 2
1. each contractor must be licensed by the Commission; and 3
2. anyone may ask the Commission about a contractor; [and] 4
(ix) a notice set by the Commission by regulation that: 5
1. specifies the protections available to consumers through 6
the Commission; and 7
2. advises the consumer of the right to purchase a 8
performance bond for additional protection against loss; AND 9
(X) IF THE CONTRACT IS F OR THE PROVISION OF DISASTER 10
MITIGATION SERVICES, NOTICE OF THE OWNER’S RIGHT TO RESCIND THE CONTRACT 11
UNDER § 8–501.1 OF THIS SUBTITLE. 12
(2) If payment for work performed under the home improvement contract 13
will be secured by an interest in residential real estate, a written notice in not smaller than 14
10 point bold type that is on the first page of the contract shall state in substantially the 15
following form: “This contract creates a mortgage or lien against your property to secure 16
payment and may cause a loss of your property if you fail to pay the amount agreed upon. 17
You have the right to consult an attorney. You have the right to rescind this contract within 18
3 business days after the date you sign it by notifying the contractor in writing that you are 19
rescinding the contract.” 20
(3) The notice under paragraph (2) of this subsection shall be 21
independently initialed by the homeowner. 22
(f) (1) Except as pro vided in paragraph (2) of this subsection, a home 23
improvement contract for the installation of a solar energy generating system on the roof 24
of a building shall include the installation of a barrier that meets industry standards to 25
prevent wildlife intrusio n and damage to the solar energy generating system or the 26
underlying roof. 27
(2) A home improvement contract for the installation of a solar energy 28
generating system on the roof of a building is not required to include the installation of a 29
barrier as specified under paragraph (1) of this subsection if the customer has waived the 30
installation of the barrier after being informed of the cost of the barrier and the risks of not 31
installing a wildlife barrier. 32
8–501.1. 33
HOUSE BILL 1351 7
(A) (1) IF NOTWITHSTANDING TITLE 14, SUBTITLE 3 OF THE 1
COMMERCIAL LAW ARTICLE, IF A HOME IMPROVEMENT CONTRACTOR SOLICITS AN 2
OWNER AND THE OWNER SIGNS A CONTRACT FOR DISASTER MITIGATING SERVICES, 3
THE OWNER MAY RESCIND THE CONTRACT: 4
(I) IF THE OWNER IS UNDE R THE AGE OF 65 YEARS, WITHIN 5 5
DAYS AFTER ENTERING INTO THE CONTRACT; OR 6
(II) IF THE OWNER IS AT L EAST 65 YEARS OLD, WITHIN 7 DAYS 7
AFTER ENTERING INTO THE CONTRACT. 8
(2) AN OWNER THAT RESCINDS A HOME IMPROVEMENT CONTRACT IN 9
ACCORDANCE WITH THIS SECTION MAY NOT BE REQUIRED TO PAY MORE THAN THE 10
AMOUNT INDICATED AND INITIALED BY THE OWN ER, IN THE CONTRACT. FAIR AND 11
REASONABLE VALUE OF THE NECESSARY WORK PERFORMED UNDER THE CONTRACT 12
PRIOR TO THE OWNER RESCINDING THE CONTRACT. 13
(B) A HOME IMPROVEMENT CON TRACT FOR DISASTER MITIGATION 14
SERVICES SHALL: 15
(1) COMPLY WITH THE REQU IREMENTS OF § 14–302 OF THE 16
COMMERCIAL LAW ARTICLE; AND 17
(2) INCLUDE THE FOLLOWIN G LANGUAGE , WHICH SHALL BE 18
INITIALED BY THE OWNER: 19
“DURING THE FIRST 5 DAYS AFTER THIS CONT RACT IS SIGNED , THE OWNER 20
HAS THE RIGHT TO RESCIND THE CONTRACT AND BE LIABLE ONLY FOR AN AMOUNT 21
NOT TO EXCEED $_______(FILL IN AMOUNT ) AND _____ (OWNER INITIALS ).”. THE 22
FAIR AND REASONABLE VALUE OF THE NECESSARY WORK PERFORMED UNDER THE 23
CONTRACT PRIOR TO THE OWNER RESCINDING THE CONTRACT.”. 24
8–507. 25
(A) IN THIS SECTION, “DISASTER” MEANS A SERIOUS EVENT THAT: 26
(1) CAUSES HARM TO A HOME, BUILDING, OR OTHER STRUCTURE; AND 27
(2) REQUIRES EMERGENCY RESPONSE SERVICES. 28
(B) THIS SECTION DOES NOT APPLY TO A CONTRACTO R, OR A PERSON 29
ACTING ON BEHALF OF A CONTRACTOR, WHO IS ENGAGED IN AN ONGOING BUSINESS 30
RELATIONSHIP, OTHER THAN MERE SOLI CITATION, WITH A VICTIM OF A D ISASTER 31
BEFORE THE DISASTER OCCURS. 32
8 HOUSE BILL 1351
(C) FOR PURPOSES OF THIS SECTION, THE EXISTENCE OF A D ISASTER IS 1
NOT CONTINGENT ON THE DECLARATION OF A STATE OF EMERGENCY B Y THE 2
FEDERAL GOVERNMENT O R THE GOVERNOR UNDER § 14–107 OF THE PUBLIC 3
SAFETY ARTICLE, OR A LOCAL DISASTER DECLARATION AS DEFIN ED UNDER § 4
14–110.5 OF THE PUBLIC SAFETY ARTICLE. 5
(D) THE GOVERNING BODY OF A COUNTY OR THE MAYOR AND CITY 6
COUNCIL OF BALTIMORE CITY MAY IMPOSE LIMITATIO NS ON 7
IN–PERSON SOLICITATION OF A VICTIM OF A DIS ASTER BY A CONTRACTO R 8
OFFERING DISASTER MI TIGATION SERVICES , INCLUDING LIMITATION S ON THE 9
HOURS DURING WHICH A ND AREAS WITHIN WHIC H IN–PERSON SOLICITATION MAY 10
OCCUR. 11
Article – Insurance 12
27–407.2. 13
It is a fraudulent insurance act for a contractor offering home repair or remodeling 14
services for damages to a private residence, to directly or indirectly pay or otherwise 15
compensate an insured, or offer or promise to pay or compensate an insured [, with the 16
intent to defraud an insurer, ] for any part of the insured’s deductible under the insured’s 17
property or casualty insurance policy, if payment for the services will be made from the 18
proceeds of the policy. 19
27–407.3. 20
(A) IN THIS SECTION, “CONTRACTOR” HAS THE MEANING STATED IN § 8–101 21
OF THE BUSINESS REGULATION ARTICLE. 22
(B) IT IS A FRAUDULENT INSURANCE ACT FOR A CONTRACTOR OR PROVIDER 23
OF SERVICES FOR THE REPAIR OR REPLACEMENT OF A RESIDENTIAL STRUCTURE TO 24
PROVIDE A PAYMENT, REFERRAL FEE, REBATE, GIFT, OR ANYTHING OF VALUE TO AN 25
INSURED OR A CLAIMANT IN CONNECTION WITH A CLAIM. 26
(C) NOTHING IN THIS SECTION PROHIBITS A CONTRACTOR FROM PAYING A 27
REFERRAL FEE OR COMMISSION TO ANOTHER CONTRACTOR OR BUSINESS ENTITY. 28
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 29
October 1, 2026. 30