Bill
Bill > SB453
summary
Introduced
02/02/2023
02/02/2023
In Committee
02/02/2023
02/02/2023
Crossed Over
Passed
Dead
04/10/2023
04/10/2023
Introduced Session
2023 Regular Session
Bill Summary
AN ACT concerning State and Private Construction Contracts - Prompt Payment Requirements FOR the purpose of requiring a private construction contract to include a provision requiring the owner to pay the contractor within a certain period of time or, if the owner withholds all or part of an amount invoiced, to send a certain notification to the contractor; establishing that amounts unpaid to a contractor accrue interest at a certain rate; requiring a contract between a contractor and a subcontractor to perform a portion of a private or State construction contract to include a provision requiring the contractor to pay the subcontractor within a certain period of time or, if the contractor withholds all or part of an amount invoiced, to send a certain notification to the subcontractor; establishing that amounts unpaid to a subcontractor accrue interest at a certain rate; and generally relating to prompt payment on construction contracts. BY repealing and reenacting, without amendments, Article - Business Regulation Section 17-601 Annotated Code of Maryland (2015 Replacement Volume and 2022 Supplement) BY adding to Article - Business Regulation Section 17-604 Annotated Code of Maryland (2015 Replacement Volume and 2022 Supplement) BY adding to Article - State Finance and Procurement Section 13-228 Annotated Code of Maryland (2021 Replacement Volume and 2022 Supplement) SENATE BILL 453 BY repealing and reenacting, without amendments, Article - State Finance and Procurement Section 15-103 and 15-104 Annotated Code of Maryland (2021 Replacement Volume and 2022 Supplement)
AI Summary
This bill aims to establish prompt payment requirements for private construction contracts and subcontracts. Specifically, it requires private construction contracts to include a provision that the owner must pay the contractor within 60 days of receiving an invoice for satisfactory work completion. If the owner withholds payment, they must provide written notice to the contractor. The bill also requires subcontracts between contractors and subcontractors to include a provision for payment within 60 days of the subcontractor's invoice or 7 days after the contractor receives payment from the owner. It further stipulates that unpaid amounts under these contracts will accrue interest at 9% per annum. The bill also clarifies existing prompt payment requirements for state construction contracts.
Committee Categories
Budget and Finance
Sponsors (7)
Ben Kramer (D)*,
Dawn Gile (D),
Michael Jackson (D),
Jim Rosapepe (D),
Johnny Salling (R),
Ron Watson (D),
Chris West (R),
Last Action
Senate Finance Hearing (13:00:00 2/23/2023 ) (on 02/23/2023)
bill text
bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0453?ys=2023RS |
| BillText | https://mgaleg.maryland.gov/2023RS/bills/sb/sb0453f.pdf |
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