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HB1478 • 2026

State Procurement - Prompt Payment of Subcontractors and Suppliers - Alteration

State Procurement - Prompt Payment of Subcontractors and Suppliers - Alteration

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Delegates Reilly , Adams , Beauchamp , McComas , T. Morgan , Roberson , and Rose
Last action
2026-03-09
Official status
In the House - Withdrawn by Sponsor
Effective date
2026-07-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

State Procurement - Prompt Payment of Subcontractors and Suppliers - Alteration

Requiring a contractor to pay a subcontractor or supplier at least 95% of an undisputed amount to which the subcontractor or supplier is entitled within 10 days of receiving payment from the State.

What This Bill Does

  • Requiring a contractor to pay a subcontractor or supplier at least 95% of an undisputed amount to which the subcontractor or supplier is entitled within 10 days of receiving payment from the State.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-03-09 House

    Withdrawn by Sponsor

  2. 2026-03-03 House

    Hearing canceled

  3. 2026-02-19 House

    Hearing 3/11 at 1:00 p.m.

  4. 2026-02-13 House

    First Reading Government, Labor, and Elections

  5. Maryland General Assembly

    Text - First - State Procurement - Prompt Payment of Subcontractors and Suppliers - Alteration

  6. Maryland General Assembly

    Vote - House - Committee - Government, Labor, and Elections

Official Summary Text

Requiring a contractor to pay a subcontractor or supplier at least 95% of an undisputed amount to which the subcontractor or supplier is entitled within 10 days of receiving payment from the State.

Current Bill Text

Read the full stored bill text 
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1478*

HOUSE BILL 1478
P2 6lr2768

By: Delegates Reilly, Adams, Beauchamp, McComas, T. Morgan, Roberson, and
Rose
Introduced and read first time: February 13, 2026
Assigned to: Government, Labor, and Elections

A BILL ENTITLED

AN ACT concerning 1

State Procurement – Prompt Payment of Subcontractors and Suppliers – 2
Alteration 3

FOR the purpose of requiring a contractor to pay a subcontractor or supplier a certain 4
percentage of an undisputed amount to which the subcontractor or supplier is 5
entitled within a certain number of days of receiving payment from the State ; and 6
generally relating to the prompt payment of suppliers under State procurement 7
contracts. 8

BY repealing and reenacting, without amendments, 9
Article – State Finance and Procurement 10
Section 15–226(a) 11
Annotated Code of Maryland 12
(2021 Replacement Volume and 2025 Supplement) 13

BY repealing and reenacting, with amendments, 14
Article – State Finance and Procurement 15
Section 15–226(c) 16
Annotated Code of Maryland 17
(2021 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 – State Finance and Procurement 21

15–226. 22

(a) (1) In this section the following words have the meanings indicated. 23

2 HOUSE BILL 1478

(2) “Supplier” means a person that has supplied labor or materials to a 1
contractor in the prosecution of work provided for in a State procurement contract. 2

(3) “Undisputed amount” means an amount owed by a contractor to a 3
subcontractor or supplier for which there is no good faith dispute, including any retainage 4
withheld. 5

(c) (1) A contractor shall pay a subcontractor or supplier AT LEAST 95% OF 6
an undisputed amount to which the subcontractor or supplier is entitled within 10 days of 7
receiving a progress or final payment from the State. 8

(2) If a contractor withholds payment from a subcontractor or supplier, 9
within the time period in which payment normally would be made, the contractor shall: 10

(i) notify the subcontractor or supplier in writing and state the 11
reason why payment is being withheld; and 12

(ii) provide a copy of the notice to the procurement officer. 13

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
1, 2026. 15