On February 6, 2025, Maryland lawmakers introduced House Bill 1170, a legislative proposal aimed at regulating subcontractor practices within home improvement contracts. The bill seeks to clarify the licensing requirements for contractors and subcontractors, ensuring that all parties involved in home improvement projects adhere to state regulations.

The primary provision of House Bill 1170 mandates that any individual or entity acting as a contractor in Maryland must possess a valid contractor license. This requirement extends to subcontractors who are engaged to perform all or part of a subcontract under a home improvement contract. By enforcing these licensing standards, the bill aims to enhance consumer protection and ensure that only qualified professionals undertake home improvement work.

Debate surrounding the bill has focused on its potential impact on the home improvement industry. Proponents argue that the legislation will help eliminate unlicensed contractors, thereby reducing the risk of subpar work and protecting homeowners from fraud. However, some industry stakeholders have expressed concerns about the increased regulatory burden on smaller subcontractors, who may struggle to meet licensing requirements.

The bill is set to take effect on October 1, 2025, if passed. Its implications could be significant, as it may lead to a more regulated home improvement market in Maryland. Experts suggest that while the bill could improve overall quality and safety in home renovations, it may also drive up costs for consumers as licensed contractors may charge higher rates to cover compliance expenses.

As discussions continue, House Bill 1170 stands as a pivotal piece of legislation that could reshape the landscape of home improvement contracting in Maryland, balancing the need for consumer protection with the operational realities faced by subcontractors.