Bill Summary – FastDemocracy

SB 116
                      Department of Legislative Services
                            Maryland General Assembly
                                  2020 Session
                          FISCAL AND POLICY NOTE
                                Third Reader
Senate Bill 116               (Chair, Education, Health, and Environmental Affairs
                              Committee)(By Request - Departmental - Labor)
Education, Health, and Environmental Affairs                        Economic Matters
           Maryland Home Improvement Commission - Sunset Extension
This departmental bill extends the termination date for the Maryland Home Improvement
Commission (MHIC) by 10 years to July 1, 2032.
                                  Fiscal Summary
State Effect: Special fund revenues and expenditures for MHIC are maintained beyond
FY 2022.
Local Effect: None.
Small Business Effect: The Maryland Department of Labor (MDL) has determined that
this bill has minimal or no impact on small business (attached). The Department of
Legislative Services (DLS) concurs with this assessment.
                                      Analysis
Current Law/Background: The Maryland Home Improvement Commission in MDL
licenses and regulates home improvement contractors and salespersons, subject to
specified requirements for licensure and ongoing licensee behavior. MHIC also
administers a guaranty fund for the purpose of reimbursing homeowners for actual losses
due to the errors and omissions of licensed contractors and their subcontractors,
salespersons, and employees. The commission licenses approximately 21,500 individuals,
with annual revenues of approximately $2.5 million and annual operating expenditures of
approximately $1.8 million.
Maryland Program Evaluation Act
MHIC is 1 of approximately 70 regulatory entities and activities subject to evaluation under
the Maryland Program Evaluation Act (MPEA). Entities subject to MPEA may be
evaluated by DLS only as directed by specified entities or by legislation. Most such entities
are subject to termination, including the commission, which is scheduled to terminate
July 1, 2022. Accordingly, the evaluation process is better known as sunset review.
                                Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Department of Labor; Department of Legislative
Services
Fiscal Note History:      First Reader - January 7, 2020
mr/mcr                    Third Reader - January 17, 2020
Analysis by: Stephen M. Ross                            Direct Inquiries to:
                                                        (410) 946-5510
                                                        (301) 970-5510
SB 116/ Page 2
                 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL:       Maryland Home Improvement Commission – Sunset Extension
BILL NUMBER:         SB 116
PREPARED BY:         David Finneran
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
_X_¬¬   WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON
MARYLAND SMALL BUSINESS
OR
    WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND
SMALL BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
The Maryland Home Improvement Commission issues licenses to contractors and
salespersons on a biennial basis. The extension of the statutory and regulatory authority
of the Maryland Home Improvement Commission will extend the existing licensing
requirements on new and existing small home improvement businesses over an additional
ten year period.
SB 116/ Page 3
Statutes affected: 
Text - First - Maryland Home Improvement Commission - Sunset Extension: 8-802 Business Regulation
Text - Third - Maryland Home Improvement Commission - Sunset Extension: 8-802 Business Regulation