Maryland bill strengthens HVAC licensing to enhance consumer protection and compliance

Maryland's new legislation aimed at enhancing HVAC licensing requirements is set to significantly improve consumer safety and compliance within the industry. The bill, which has undergone several amendments based on stakeholder feedback, mandates that HVACR equipment distributors can only sell to individuals who are legally authorized to install the equipment. This move addresses the ongoing issue of consumer complaints regarding unlicensed contractors, despite existing laws prohibiting their services.

The legislation strengthens compliance by classifying violations as misdemeanors, aligning penalties with those for other licensing infractions. Notably, amendments were made to alleviate concerns from the business community by removing annual reporting requirements that could burden small businesses. The bill retains exceptions for building owners installing equipment on their properties, as well as utility and government employees.

Additionally, the legislation exempts small plug-in appliances and construction material suppliers that do not verify licensing information. A required disclosure will ensure that building owners and contractors purchasing equipment are informed of the licensing requirements.

Key outcomes of this legislation include improved safety for homeowners, better insurance compliance—since unlicensed contractors often lack necessary business insurance—lower energy costs, and reduced emissions. Furthermore, enhanced licensing compliance is expected to support adherence to local permit requirements and business taxes, fostering a more responsible HVAC industry in Maryland.