Section 8-401 – “Actual Loss” Defined

    In this subtitle, “actual loss” means the costs of restoration, repair, replacement, or completion that arise from an unworkmanlike, inadequate, or incomplete home improvement.

Section 8-402 – Scope of Subtitle

    This subtitle does not:         (1)    limit the authority of the Commission to take disciplinary action against a licensee under Subtitle 3 of this title;         (2)    limit the availability of other remedies to a claimant; or         (3)    require a claimant to exhaust administrative remedies before the Commission before bringing an action in court.

Section 8-403 – Establishment; Disposition of Money; Investments; Administration

    (a)    The Commission shall:         (1)    establish a Home Improvement Guaranty Fund;         (2)    keep the Fund at a level of at least $250,000; and         (3)    submit a report detailing actions being taken to restore the balance of the Fund to a sustainable level to the Senate Education, Health, and Environmental Affairs Committee and the House Economic Matters Committee within 30 […]

Section 8-404 – Initial Fee; Assessments

    (a)    Before the Commission issues a contractor license, the contractor shall pay a fee of $100 to be credited to the Fund.     (b)    (1)    If the Commission finds that, because of pending claims, the amount of the Fund may fall below $250,000, the Commission shall assess each contractor a fee of $50.         (2)    However, under this subsection the Commission […]

Section 8-405 – Claims Against Fund

    (a)    Subject to this subtitle, an owner may recover compensation from the Fund for an actual loss that results from an act or omission by a licensed contractor or a violation of § 8–607(4) of this title as found by the Commission or a court of competent jurisdiction.     (b)    For purposes of recovery from the Fund, the […]

Section 8-406 – Procedure for Submitting Claims

    To begin a proceeding to recover from the Fund, a claimant shall submit to the Commission a claim, under oath, that states:         (1)    the amount claimed based on the actual loss;         (2)    the facts giving rise to the claim;         (3)    any other evidence that supports the claim; and         (4)    any other information that the Commission requires.

Section 8-407 – Action on Claim by Commission

    (a)    The procedures for notice, hearings, and judicial review that apply to proceedings under Subtitle 3 of this title also apply to proceedings to recover from the Fund.     (b)    On receipt of a claim, the Commission shall:         (1)    send a copy of the claim to the contractor alleged to be responsible for the actual loss; and         (2)    require a […]

Section 8-408 – Joinder of Proceedings; Administrative and Legal Proceedings

    (a)    (1)    The Commission may join a proceeding on a claim against the Fund with a disciplinary proceeding against a licensed contractor under Subtitle 3 of this title, if the disciplinary hearing is based on the same facts alleged in the claim.         (2)    In a consolidated proceeding, the claimant is a party and may participate in the hearing […]

Section 8-409 – Payments From Fund

    (a)    The Commission may order payment of a claim against the Fund only if:         (1)    the decision or order of the Commission is final in accordance with Title 10, Subtitle 2 of the State Government Article and all rights of appeal are exhausted; or         (2)    the claimant provides the Commission with a certified copy of a final judgment […]

Section 8-410 – Reimbursement of Fund

    (a)    (1)    After the Commission pays a claim from the Fund:             (i)    the Commission is subrogated to all rights of the claimant in the claim up to the amount paid;             (ii)    the claimant shall assign to the Commission all rights of the claimant in the claim up to the amount paid; and             (iii)    the Commission has a right to reimbursement […]

Section 8-411 – Disciplinary Proceedings

    (a)    Except as provided in subsection (b) of this section, if the Commission pays a claim against the Fund based on an act or omission of a contractor, the Commission may suspend the contractor license until the contractor reimburses the Fund in full for:         (1)    the amount paid from the Fund; and         (2)    interest on that amount at […]