EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1162*
HOUSE BILL 1162
C2 5lr3199
By: Delegate Stein
Introduced and read first time: February 6, 2025
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 6, 2025
CHAPTER ______
AN ACT concerning 1
Heating, Ventilation, Air–Conditioning, or Refrigeration Contractors – 2
Equipment Sales 3
FOR the purpose of prohibiting a person from knowingly offering to sell or selling heating, 4
ventilation, air–conditioning, or refrigeration equipment to an individual that is does 5
not licensed hold a certain license issued by the Board of Heating, Ventilation, 6
Air–Conditioning, or Refrigeration Contractors except under certain circumstances; 7
requiring certain persons to collect certain information from or provide a certain 8
notice to purchasers of heating, ventilation, air–conditioning, or refrigeration 9
equipment at the time of sale; requiring certain sellers of heating, ventilation, 10
air–conditioning, or refrigeration equipment to submit a certain report to the Board 11
each fiscal year; and generally relating to heating, ventilation, air–conditioning, or 12
refrigeration contractors. 13
BY repealing and reenacting, without amendments, 14
Article – Business Regulation 15
Section 9A–103, 9A–201, and 9A–301 16
Annotated Code of Maryland 17
(2024 Replacement Volume) 18
BY adding to 19
Article – Business Regulation 20
Section 9A–501.1 21
Annotated Code of Maryland 22
(2024 Replacement Volume) 23 2 HOUSE BILL 1162
BY repealing and reenacting, with amendments, 1
Article – Business Regulation 2
Section 9A–505 3
Annotated Code of Maryland 4
(2024 Replacement Volume) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Business Regulation 8
9A–103. 9
This title does not limit the right of: 10
(1) an individual owner of a single–family dwelling while that owner is 11
practicing heating, ventilation, air–conditioning, or refrigeration services on or within a 12
building or structure owned by the individual; 13
(2) an individual who is building a single–family dwelling in which that 14
individual will reside while practicing heating, ventilation, air–conditioning, or 15
refrigeration services on or within that dwelling; 16
(3) an employee of a public utility company regulated by the Public Service 17
Commission, when engaged in: 18
(i) the development, construction, maintenance, or repair of electric 19
or gas facilities located in the State; or 20
(ii) the construction, maintenance, or repair of electric or gas 21
appliances in the service area of the public utility; 22
(4) subject to § 9A–403(a) of this title, an employee of the United States 23
government, the State government, a local government, or an independent agency while 24
that employee is practicing heating, ventilation, air–conditioning, or refrigeration services 25
on or within buildings or structures owned or solely occupied by the United States 26
government, the State government, a local government, or an independent agency; 27
(5) an individual employed in the installation, maintenance, alteration, 28
repair, or replacement of self–contained appliances requiring not more than 225 volts or 25 29
amperes of electrical current; 30
(6) an individual possessing a master electrician’s license issued by the 31
State or any county, when engaged in the installation, alteration, service, repair, or 32
replacement of individually controlled electric resistance heat; 33
HOUSE BILL 1162 3
(7) an individual possessing a master plumber’s license issued by the State, 1
Baltimore County, or the Washington Suburban Sanitary Commission when providing 2
heating, ventilation, air–conditioning, or refrigeration services on hydronic heating 3
systems; 4
(8) an individual possessing a license to practice engineering when 5
providing heating, ventilation, air–conditioning, or refrigeration services in connection 6
with the practice of engineering; 7
(9) an individual who installs, alters, remodels, maintains, or repairs oil 8
burners exclusively while employed by a supplier of home heating fuel; or 9
(10) an individual regularly employed by the owner of property, or the 10
owner’s agent, to engage in maintenance and repair work. 11
9A–201. 12
There is a State Board of Heating, Ventilation, Air–Conditioning, and Refrigeration 13
Contractors in the Department. 14
9A–301. 15
Except as otherwise provided in this title, an individual shall be licensed by the 16
Board before the individual provides or assists in providing heating, ventilation, 17
air–conditioning, or refrigeration services in the State. 18
9A–501.1. 19
(A) IN THIS SECTION, “SELLER” MEANS A PERSON THAT OWNS A BUSINESS 20
THAT HAS A GROSS ANN UAL REVENUE OF $100,000 OR MORE FROM THE SAL E OF 21
HEATING, VENTILATION, AIR–CONDITIONING , OR REFRIGERATION EQU IPMENT. 22
(B) (1) THIS SUBSECTION DOES NOT APPLY TO A PERSO N WHO: 23
(I) SELLS CONSTRUCTION M ATERIALS OTHER THAN 24
MATERIALS INVOLVED I N THE INSTALLATION O F HEATING , VENTILATION, 25
AIR–CONDITIONING , OR REFRIGERATION EQU IPMENT; AND 26
(II) DERIVES LESS THAN 25% OF THE PERSON ’S REVENUES 27
FROM THE SALE OF HEA TING, VENTILATION, AIR–CONDITIONING, OR 28
REFRIGERATION EQUIPM ENT. 29
(2) A PERSON MAY NOT KNOWI NGLY SELL OR OFFER T O SELL 30
HEATING, VENTILATION, AIR–CONDITIONING , OR REFRIGERATION EQU IPMENT TO 31
ANOTHER PERSON , UNLESS THE INDIVIDUA L PURCHASING THE EQU IPMENT: 32
4 HOUSE BILL 1162
(1) (I) IS LICENSED BY HOLDS A MASTER LICEN SE, A MASTER 1
RESTRICTED LICENSE , OR A LIMITED LICENSE OR EMPLOYS AN INDIVI DUAL 2
LICENSED BY THE WHO HOLDS A MASTER L ICENSE, A MASTER RESTRICTED LICENSE, 3
OR A LIMITED LICENSE ISSUED BY THE BOARD TO PROVIDE OR A SSIST IN PROVIDING 4
HEATING, VENTILATION, AIR–CONDITIONING , OR REFRIGERATION SER VICES; 5
(II) OPERATES A BUSINESS THAT RESELLS HEATING , 6
VENTILATION, AIR–CONDITIONING , OR REFRIGERATION EQU IPMENT TO 7
INDIVIDUALS LICENSED BY THE BOARD; OR 8
(2) (III) IS NOT REQUIRED TO B E LICENSED UNDER § 9A–103 OF 9
THIS TITLE. 10
(C) (B) (1) A PERSON THAT SELLS HE ATING, VENTILATION, 11
AIR–CONDITIONING , OR REFRIGERATION EQU IPMENT SHALL COLLECT THE NAME 12
AND LICENSE NUMBER O F AN INDIVIDUAL WHO PURCHASES HEATING , 13
VENTILATION, AIR–CONDITIONING , OR REFRIGERATION EQUIPM ENT AT THE TIME 14
OF SALE. 15
(2) IF A PERSON IS NOT AB LE TO COLLECT THE NA ME AND LICENSE 16
NUMBER OF AN INDIVID UAL WHO PURCHASED EQ UIPMENT UNDER PARAGR APH (1) 17
OF THIS SUBSECTION , THE PERSON SHALL , AT THE TIME OF SALE , PROVIDE A 18
WRITTEN NOTICE TO TH E INDIVIDUAL WITH PURCHASING THE EQUIP MENT THAT 19
CONTAINS INFORMATION PRESCRIB ED BY THE BOARD REGARDING THE 20
REQUIREMENT THAT AN INDIVIDUAL BE LICENS ED BY THE BOARD BEFORE 21
PROVIDING OR ASSISTI NG IN PROVIDING HEAT ING, VENTILATION, 22
AIR–CONDITIONING , OR REFRIGERATION SER VICES IN THE STATE, INCLUDING THE 23
INSTALLATION OF HEAT ING, VENTILATION, AIR–CONDITIONING , OR 24
REFRIGERATION EQUIPM ENT. 25
(D) A SELLER SHALL FILE A REPORT WITH THE BOARD WITHIN 1 MONTH 26
AFTER THE END OF EAC H FISCAL YEAR THAT LISTS THE NAM E AND LICENSE NUMBER 27
OF EACH INDIVIDUAL T HAT PURCHASED HEATIN G, VENTILATION, 28
AIR–CONDITIONING , OR REFRIGERATION EQU IPMENT FROM THE SELL ER DURING 29
THE PRECEDING FISCAL YEAR. 30
(E) (C) ON OR BEFORE JANUARY 1, 2026, THE BOARD SHALL ADOPT 31
REGULATIONS TO CARRY OUT THIS SECTION . 32
9A–505. 33
(a) (1) In this section, “officer” includes a superintendent, manager, or agent 34
of a corporation regardless of whether the corporation provides heating, ventilation, 35
air–conditioning, or refrigeration services. 36 HOUSE BILL 1162 5
(2) Any person, including an officer, who violates § 9A–501, § 9A–502, § 1
9A–503, or § 9A–504 of this subtitle is guilty of a misdemeanor, and on conviction is subject 2
to a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both and, on a 3
second or subsequent conviction, subject to a fine not exceeding $5,000 or imprisonment 4
not exceeding 2 years or both. 5
(3) ANY PERSON, INCLUDING AN OFFICER , WHO VIOLATES § 9A–501.1 6
OF THIS SUBTITLE IS SUBJECT TO: 7
(I) FOR A FIRST VIOLATION, A CIVIL PENALTY NOT EXCEEDING 8
$1,000; AND 9
(II) FOR A SECOND OR SUBS EQUENT VIOLATION , A CIVIL 10
PENALTY NOT EXCEEDIN G $5,000. 11
(b) Any person who violates any provision of § 9A–402 of this title is guilty of a 12
misdemeanor, and on conviction is subject to a fine not exceeding $1,000 or imprisonment 13
not exceeding 6 months or both. 14
(c) (1) Except as otherwise provided by this title, the Board may impose on a 15
person who violates any provision of this title a penalty not exceeding $5,000 for each 16
violation. 17
(2) In setting the amount of the penalty, the Board shall consider: 18
(i) the seriousness of the violation; 19
(ii) the harm caused by the violation; 20
(iii) the good faith of the violator; 21
(iv) any history of previous violations by the violator; and 22
(v) any other relevant factors. 23
(3) The Board shall pay any penalty collected under this subsection into 24
the General Fund of the State. 25
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 26
October 1, 2025. 27