| 1 | 1 | | |
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| 2 | 2 | | |
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| 3 | 3 | | EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW. |
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| 4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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| 5 | 5 | | *sb0855* |
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| 6 | 6 | | |
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| 7 | 7 | | SENATE BILL 855 |
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| 8 | 8 | | C2, I1 2lr2850 |
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| 9 | 9 | | CF 2lr2323 |
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| 10 | 10 | | By: Senator Eckardt |
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| 11 | 11 | | Introduced and read first time: February 7, 2022 |
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| 12 | 12 | | Assigned to: Finance |
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| 13 | 13 | | |
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| 14 | 14 | | A BILL ENTITLED |
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| 15 | 15 | | |
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| 16 | 16 | | AN ACT concerning 1 |
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| 17 | 17 | | |
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| 18 | 18 | | Business Regulation – Home Improvement Contracts – Deposits by Financial 2 |
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| 19 | 19 | | Institutions 3 |
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| 20 | 20 | | |
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| 21 | 21 | | FOR the purpose of authorizing a person to receive a deposit for more than a certain amount 4 |
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| 22 | 22 | | of a home improvement contract price at a certain time if the deposit is being 5 |
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| 23 | 23 | | financed by certain financial institutions; and generally relating to home 6 |
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| 24 | 24 | | improvement contracts. 7 |
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| 25 | 25 | | |
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| 26 | 26 | | BY repealing and reenacting, with amendments, 8 |
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| 27 | 27 | | Article – Business Regulation 9 |
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| 28 | 28 | | Section 8–617 10 |
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| 29 | 29 | | Annotated Code of Maryland 11 |
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| 30 | 30 | | (2015 Replacement Volume and 2021 Supplement) 12 |
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| 31 | 31 | | |
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| 32 | 32 | | BY repealing and reenacting, without amendments, 13 |
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| 33 | 33 | | Article – Financial Institutions 14 |
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| 34 | 34 | | Section 1–101(a) and (j) 15 |
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| 35 | 35 | | Annotated Code of Maryland 16 |
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| 36 | 36 | | (2020 Replacement Volume and 2021 Supplement) 17 |
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| 37 | 37 | | |
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| 38 | 38 | | SECTION 1. BE IT ENACTED BY TH E GENERAL ASSEMBLY OF MARYLAND, 18 |
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| 39 | 39 | | That the Laws of Maryland read as follows: 19 |
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| 40 | 40 | | |
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| 41 | 41 | | Article – Business Regulation 20 |
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| 42 | 42 | | |
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| 43 | 43 | | 8–617. 21 |
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| 44 | 44 | | |
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| 45 | 45 | | (a) A person may not demand or receive any payment for a home improvement 22 |
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| 46 | 46 | | before the home improvement contract is signed. 23 |
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| 47 | 47 | | 2 SENATE BILL 855 |
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| 48 | 48 | | |
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| 49 | 49 | | |
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| 50 | 50 | | (b) (1) [A] EXCEPT AS PROVIDED IN PA RAGRAPH (2) OF THIS 1 |
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| 51 | 51 | | SUBSECTION, A person may not receive a deposit of more than one–third of the home 2 |
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| 52 | 52 | | improvement contract price before or at the time of execution of the home improvement 3 |
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| 53 | 53 | | contract. 4 |
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| 54 | 54 | | |
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| 55 | 55 | | (2) A PERSON MAY RECEIVE A DEPOSIT OF MORE THAN ONE –THIRD 5 |
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| 56 | 56 | | OF THE HOME IMPROVEM ENT CONTRACT PRICE B EFORE OR AT THE TIME OF 6 |
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| 57 | 57 | | EXECUTION OF THE HOM E IMPROVEMENT CONTRA CT IF THE FULL AMOUN T OF THE 7 |
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| 58 | 58 | | DEPOSIT IS BEING FIN ANCED BY A FINANCIAL INSTITUTION, AS DEFINED IN § 1–101 8 |
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| 59 | 59 | | OF THE FINANCIAL INSTITUTIONS ARTICLE. 9 |
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| 60 | 60 | | |
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| 61 | 61 | | Article – Financial Institutions 10 |
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| 62 | 62 | | |
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| 63 | 63 | | 1–101. 11 |
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| 64 | 64 | | |
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| 65 | 65 | | (a) In this article, unless the context clearly requires otherwise, the following 12 |
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| 66 | 66 | | words have the meanings indicated. 13 |
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| 67 | 67 | | |
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| 68 | 68 | | (j) “Financial institution” means any financial institution of the type supervised 14 |
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| 69 | 69 | | under this article, whether or not State–chartered. 15 |
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| 70 | 70 | | |
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| 71 | 71 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16 |
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| 72 | 72 | | October 1, 2022. 17 |
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| 73 | 73 | | |
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