summary
Introduced
02/10/2023
02/10/2023
In Committee
02/10/2023
02/10/2023
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) HOUSE BILL 1097 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 and state construction contracts in Maryland. It requires that private construction contracts include a provision for the owner to pay the contractor within 60 days of receiving an invoice, and that the contractor notify the subcontractor within 60 days if all or part of an amount is being withheld. It also requires that subcontractor contracts include a provision for the contractor to pay the subcontractor within 60 days of receiving an invoice or 7 days after receiving payment from the owner, and that the contractor notify the subcontractor within 60 days if all or part of an amount is being withheld. The bill also establishes that unpaid amounts will accrue interest at 9% per annum.
Committee Categories
Business and Industry
Sponsors (3)
Last Action
Withdrawn by Sponsor (on 03/06/2023)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1097?ys=2023RS |
| Vote Image | https://mgaleg.maryland.gov/2023RS/votes_comm/hb1097_hgo.pdf |
| Vote Image | https://mgaleg.maryland.gov/2023RS/votes_comm/hb1097_ecm.pdf |
| BillText | https://mgaleg.maryland.gov/2023RS/bills/hb/hb1097f.pdf |
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