EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0218*
SENATE BILL 218
K3, C3 5lr0385
(PRE–FILED) CF HB 264
By: Chair, Finance Committee (By Request – Departmental – Labor)
Requested: October 12, 2024
Introduced and read first time: January 8, 2025
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Business Occupational and Professional Licenses – Suspension and Revocation 2
for Workplace Fraud 3
FOR the purpose of requiring, under certain circumstances, the Commissioner of Labor and 4
Industry to notify a licensing authority when a licensee is found in violation of 5
certain workplace fraud provisions; requiring licensing authorities to suspend or 6
revoke the licenses of licensees who are reported by the Commissioner; establishing 7
certain appeal and license reinstatement procedures; and generally relating to the 8
discipline of occupational and professional licenses for employers who commit 9
workplace fraud. 10
BY adding to 11
Article – Labor and Employment 12
Section 3–912 13
Annotated Code of Maryland 14
(2016 Replacement Volume and 2024 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Labor and Employment 18
3–912. 19
(A) (1) IN THIS SECTION THE FOLLOWIN G WORDS HAVE THE MEA NINGS 20
INDICATED. 21
(2) “LICENSE” MEANS A LICENSE , CERTIFICATE, REGISTRATION , 22
PERMIT, OR OTHER AUTHORIZATI ON THAT: 23 2 SENATE BILL 218
(I) IS ISSUED BY A LICEN SING AUTHORITY ; 1
(II) IS SUBJECT TO SUSPEN SION, REVOCATION , FORFEITURE, 2
OR TERMINATION BY A LICENSING AUTHORITY ; AND 3
(III) IS NECESSARY FOR A P ERSON TO PRACTICE OR ENGAGE IN 4
A PARTICULAR BUSINES S, OCCUPATION , OR PROFESSION . 5
(3) “LICENSEE” MEANS AN EMPLOYER HO LDING A VALID LICENS E. 6
(4) (I) “LICENSING AUTHORITY ” MEANS A UNIT OF THE DIVISION 7
OF OCCUPATIONAL AND PROFESSIONAL LICENSING IN THE MARYLAND 8
DEPARTMENT OF LABOR. 9
(II) “LICENSING AUTHORITY ” INCLUDES: 10
1. THE ELEVATOR SAFETY REVIEW BOARD; 11
2. THE MARYLAND HOME IMPROVEMENT COMMISSION; 12
3. THE STATE BOARD OF ELECTRICIANS; 13
4. THE STATE BOARD OF HEATING, VENTILATION, 14
AIR–CONDITIONING, AND REFRIGERATION CONTRACTORS ; AND 15
5. THE STATE BOARD OF PLUMBING. 16
(B) THE COMMISSIONER SHALL NO TIFY THE APPLICABLE LICENSING 17
AUTHORITY WHEN A LICENSEE IS FOUND IN VIOLATION O F § 3–903 OR § 3–904 OF 18
THIS SUBTITLE BY A F INAL ORDER OF A COUR T OR AN ADMINISTRATI VE UNIT AND 19
HAS NOT PAID: 20
(1) ALL PENALTIES ASSESSED IN ACCORDANCE WITH THIS SUBTITLE 21
FOR A VIOLATION OF § 3–903 OR § 3–904 OF THIS SUBTITLE; AND 22
(2) WITHIN 45 DAYS AFTER ISSUANCE OF TH E FINAL ORDER OF A 23
COURT OR ADMINISTRAT IVE UNIT, ALL RESTITUTION OWED IN ACCORDANCE WITH § 24
3–907 OF THIS SUBTITLE FOR FAILING TO PROPERLY CLASSIFY AN EMPLOYEE . 25
(C) SUBJECT TO SUBSECTION (D) OF THIS SECTION , IF A LICENSING 26
AUTHORITY RECEIVES A NOTIFICATION MADE UN DER SUBSECTION (B) OF THIS 27 SENATE BILL 218 3
SECTION, THE LICENSING AUTHORI TY SHALL SUSPEND OR REVOKE THE LICENSE OF 1
THE LICENSEE. 2
(D) (1) BEFORE SUSPENDING OR REVOKI NG A LICENSE UNDER 3
SUBSECTION (C) OF THIS SECTION, A LICENSING AUTHORIT Y SHALL SEND WRITTEN 4
NOTICE OF THE PROPOS ED ACTION TO THE LICENSEE WHOSE LICENSE IS SUB JECT 5
TO SUSPENSION OR REV OCATION, INCLUDING NOTICE OF THE LICENSEE’S RIGHT TO 6
CONTEST THE IDENTITY OF THE LICENSEE WHOSE LICENSE IS TO BE SUSPENDED OR 7
REVOKED. 8
(2) (I) A LICENSEE MAY APPEAL A DECISIO N OF A LICENSING 9
AUTHORITY TO SUSPEND OR REVOKE THE LICENS E IN ACCORDANCE WITH TITLE 10, 10
SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 11
(II) AT A HEARING INITIATED UNDER THIS PARAGRAPH , THE 12
ISSUE SHALL BE LIMIT ED TO WHETHER THE COMMISSIONER HAS MIST AKEN THE 13
IDENTITY OF THE LICENSEE WHOSE LICENSE HAS BE EN SUSPENDED OR REVO KED. 14
(E) (1) A LICENSING AUTHORITY MAY NOT REINSTATE A LICENSE THAT 15
HAS BEEN SUSPENDED O R REVOKED UNDER SUBSECTION (C) OF THIS SECTION 16
UNTIL THE COMMISSIONER PROVIDES NOTICE TO THE LICENS ING AUTHORITY IN 17
ACCORDANCE WITH PARA GRAPH (2) OF THIS SUBSECTION . 18
(2) THE COMMISSIONER SHALL NO TIFY THE LICENSING A UTHORITY 19
WITHIN 10 DAYS AFTER THE COMMISSIONER FIRST RECEIVES: 20
(I) A COURT ORDER TO REI NSTATE THE LICENSE ; OR 21
(II) WITH RESPECT TO A LICENSEE WHO IS SUBJECT TO A FINAL 22
ORDER OF A COURT OR AN ADM INISTRATIVE UNIT TO PAY PENALTIES OR 23
RESTITUTION FOR A VIOLATION OF § 3–903 OR § 3–904 OF THIS SUBTITLE , NOTICE 24
THAT THE LICENSEE HAS PAID ALL PENALTIES AND RESTIT UTION IN FULL. 25
(3) A LICENSING AUTHORITY SHALL IMMEDIATELY RE INSTATE ANY 26
LICENSE SUSPENDED OR REVOKED UNDER SUBSECTION (C) OF THIS SECTION IF: 27
(I) NOTIFIED BY THE COMMISSIONER THAT THE LICENSE 28
SHOULD BE REINSTATED ; AND 29
(II) THE LICENSEE OTHERWISE QUALIFIES FOR THE LICENSE . 30
4 SENATE BILL 218
(F) (1) ADVERSE LICENSING ACT IONS TAKEN UNDER THI S SECTION MAY 1
BE IMPOSED IN ADDITI ON TO ANY OTHER ACTI ONS TAKEN IN THE ENF ORCEMENT OF 2
THIS SUBTITLE. 3
(2) ADVERSE LICENSING ACT IONS TAKEN UNDER THI S SECTION 4
SHALL BE IN EFFECT A GAINST: 5
(I) ANY SUCCESSOR CORPOR ATION OR BUSINESS EN TITY THAT: 6
1. HAS ONE OR MORE OF T HE SAME PRINCIPALS O R 7
OFFICERS AS THE LICE NSEE AGAINST WHOM TH E ADVERSE ACTION WAS TA KEN, 8
UNLESS THE PRINCIPAL OR OFFICER DID NOT O R, WITH THE EXERCISE OF 9
REASONABLE DILIGENCE , COULD NOT HAVE KNOWN OF THE VIOLATION FOR WHICH 10
THE ADVERSE ACTION W AS TAKEN; AND 11
2. IS ENGAGED IN OR INT ENDS TO ENGAGE IN TH E SAME 12
OR EQUIVALENT TRADE OR ACTI VITY; AND 13
(II) ANY INDIVIDUAL LICEN SEE THAT WAS AN OFFI CER, 14
DIRECTOR, CONTROLLING SHAREHOL DER, PARTNER, OR MANAGER OF THE 15
EMPLOYER AGAINST WHO M THE ADVERSE ACTION WAS TAKEN UNLESS THE 16
OFFICER, DIRECTOR, CONTROLLING SHAREHOL DER, PARTNER, OR MANAGER DID 17
NOT OR, WITH THE EXERCISE OF REASONABLE DILIGENCE , COULD NOT HAVE KNOWN 18
OF THE VIOLATION FOR WHICH THE ADVERSE AC TION WAS TAKEN . 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 20
October 1, 2025. 21