EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0855*
SENATE BILL 855
C2, I1 2lr2850
CF 2lr2323
By: Senator Eckardt
Introduced and read first time: February 7, 2022
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Business Regulation – Home Improvement Contracts – Deposits by Financial 2
Institutions 3
FOR the purpose of authorizing a person to receive a deposit for more than a certain amount 4
of a home improvement contract price at a certain time if the deposit is being 5
financed by certain financial institutions; and generally relating to home 6
improvement contracts. 7
BY repealing and reenacting, with amendments, 8
Article – Business Regulation 9
Section 8–617 10
Annotated Code of Maryland 11
(2015 Replacement Volume and 2021 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – Financial Institutions 14
Section 1–101(a) and (j) 15
Annotated Code of Maryland 16
(2020 Replacement Volume and 2021 Supplement) 17
SECTION 1. BE IT ENACTED BY TH E GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Business Regulation 20
8–617. 21
(a) A person may not demand or receive any payment for a home improvement 22
before the home improvement contract is signed. 23
2 SENATE BILL 855
(b) (1) [A] EXCEPT AS PROVIDED IN PA RAGRAPH (2) OF THIS 1
SUBSECTION, A person may not receive a deposit of more than one–third of the home 2
improvement contract price before or at the time of execution of the home improvement 3
contract. 4
(2) A PERSON MAY RECEIVE A DEPOSIT OF MORE THAN ONE –THIRD 5
OF THE HOME IMPROVEM ENT CONTRACT PRICE B EFORE OR AT THE TIME OF 6
EXECUTION OF THE HOM E IMPROVEMENT CONTRA CT IF THE FULL AMOUN T OF THE 7
DEPOSIT IS BEING FIN ANCED BY A FINANCIAL INSTITUTION, AS DEFINED IN § 1–101 8
OF THE FINANCIAL INSTITUTIONS ARTICLE. 9
Article – Financial Institutions 10
1–101. 11
(a) In this article, unless the context clearly requires otherwise, the following 12
words have the meanings indicated. 13
(j) “Financial institution” means any financial institution of the type supervised 14
under this article, whether or not State–chartered. 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2022. 17