[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6364030,"mediaKeyId","2165436-f07c597778f385870c8a73d904996f83","parentId",2165436,"title","Lawmakers weigh prompt-payment bill for construction subcontractors amid disputes over enforcement and penalties","audioSeconds",3937,"startMs",1784000,"endMs",5721000,"viewUrl","/Search/View?dp=1&key=2165436-f07c597778f385870c8a73d904996f83&start=1784&end=5721","thumbnailUrl","https://assets.pipeline.soar.com/2165436-f07c597778f385870c8a73d904996f83/thumbnail_1784000.jpg","articleUrl","/articles/6364030/Maryland/Lawmakers-weigh-prompt-payment-bill-for-construction-subcontractors-amid-disputes-over-enforcement-and-penalties","mediaUrl","https://secure.pipeline.soar.com/6364030-2de259a305a720a0d3c60a3ad873ca20/orig.mp4?Expires=1771174664&Signature=JUJ9uNCml7LgbSW7dtj3I6EVEmaldU2EBmkkUYS4TIz~v1dueTURmenhrfqNl5YRx2QavZZdkMqBdaiYr9FI2GBEhLT4xNkvBZeIOZNE7DKuVM1rIAP~xscaVT-amLOw0xWmhvTyvvPc-2xCoq0D3W6uYDpfSNUQ9f3UDxnWTT-JGzLSjthayFit4O02NKDjnCOekZKliO7tSnu-5cu9wPMdh~DARfu4wjQj7e4~WfwwPueKG-Vph3jtEbqlD19LJnqczci5~OjGZMqhZEq3YIuGHjOYuZyMNb1oNRR9MKQcrmc4K3LE4gDnAg6Dw0UmG8UE~o7y5u7wB3PKlRAuBw__&Key-Pair-Id=KUT5TJCACFTXG","author","Maryland General Assembly - Economic Matters","date","2025-01-29T00:00:00Z","article","Delegate Mary Lehman told the House Economic Matters Committee that House Bill 451 would require owners to pay prime contractors and prime contractors to pay subcontractors within a set time after an invoice — and create a financial penalty for late payments.

\"What this bill does is ensure that everyone involved on state and private construction contracts gets paid on time, primes and subcontractors,\" Delegate Mary Lehman said when she introduced the measure. Lehman told the committee she would offer sponsor amendments: shortening the payment window from 60 days to 45 days and making contrary contract provisions unenforceable.

The bill would create a remedy for unpaid invoices starting after the prompt-payment deadline; the sponsor described a 9% per‑year penalty on unpaid balances beginning on the 60th day after receipt of an invoice (she later proposed 45 days in amendment language). Lehman cited Virginia and North Carolina as nearby states with prompt‑payment laws; witnesses noted both states use roughly 1% per month as a penalty.

Supporters — mostly small subcontractors and trade groups — told the committee late payment is a persistent industry problem that can put small businesses at risk. \"When subcontractors on construction projects are not paid in a timely way ... it causes financial strain that could cause a business to miss payroll or employee benefit contributions,\" said Tom Clark of IBEW Local 26. Kevin O'Keefe of Independent Electrical Contractors Chesapeake and Stephanie Sweet, owner of Beck Electric, described instances where subcontractors waited months for payment and said a statutory remedy would protect payroll and supplier relationships.

Opponents and industry representatives warned that imposing a penalty without a mechanism tying owner payment to contractor payment could force general contractors — including small primes — to bear owners’ late-payment risk. \"There’s 2 victims here,\" said Sean Malone representing Associated Builders and Contractors and the Maryland Minority Contract Association. \"When an owner doesn't pay the general, the general is not in a position to pay up.\" General contractor Robert Harrington described municipal payment timing: Baltimore City often pays within 45–60 days and some municipal contracts are explicitly \"paid when paid,\" he said.

Committee members focused on several contested details: whether the statute should include a \"paid-when-paid\" or \"paid-when-received\" trigger; whether retainage and other contract terms would be affected; the proper penalty rate and whether interest should accrue monthly; and how a subcontractor would enforce remedies (private right of action and attorney's fees were discussed as possible additions). The sponsor said she opposed a strict \"paid-when-paid\" provision because proving the prime had been paid could impose an enforcement burden on subcontractors.

Key clarifications from testimony and documents introduced in the hearing:
- Sponsor-proposed changes: shorten prompt-payment deadline from 60 to 45 days; make contract provisions that conflict with the statute unenforceable.
- Penalty discussed: sponsor proposed 9% per year on unpaid balance beginning at the statutory deadline; witnesses cited alternate models of 1% per month used in North Carolina and Virginia.
- Retainage: sponsor told a legislator the bill does not prohibit retainage provisions; language in the bill says retainage provisions in a contract are not affected.
- Enforcement: witnesses and lawmakers noted enforcement would likely require private legal action; proponents seek amendments to provide a private right of action and recovery of attorneys’ fees in some versions of the bill.

Why it matters: Supporters said immediate cash-flow remedies will protect small, minority- and women-owned subcontractors that operate on thin margins. Opponents said the measure as drafted could unintentionally transfer owner nonpayment risk onto primes (and subcontractors that are also primes on other jobs), particularly where public owners pay slowly.

Next steps: Committee discussion continued for more information and possible amendments; the transcript records extensive questioning but no recorded committee vote.","mediaType","Video","parentTitle","ECM Committee Session, 1/29/2025 #1","oneSentenceSummary","Delegate Mary Lehman told the House Economic Matters Committee that House Bill 451 would require owners and prime contractors to pay contractors and subcontractors within a set time after invoicing and create a penalty for late payment.","taxTitle","Economic Matters Committee, HOUSE OF REPRESENTATIVES, Committees, Legislative, Maryland","taxId",15059,"location","Maryland","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6364035,"ATCC urges end to statutory MOU requirement with comptroller; comptroller opposes removal",1407,330000,1737000,"/Search/View?dp=1&key=2165436-f07c597778f385870c8a73d904996f83&start=330&end=1737","https://assets.pipeline.soar.com/2165436-f07c597778f385870c8a73d904996f83/thumbnail_330000.jpg","/articles/6364035/Maryland/ATCC-urges-end-to-statutory-MOU-requirement-with-comptroller-comptroller-opposes-removal","https://secure.pipeline.soar.com/6364035-fa14fa3d331b051d744129555a5efa07/orig.mp4?Expires=1771174664&Signature=YZzLmLc3SeROgEJBweEQ3rsznss~tf2dh5T-4fTEdcEGhiBdOhm9DquDd7e~IKAb4SFnzwZd6hMeK8ElvRF3CCDRrA1RsLvPZVzWmzEnVrMevzuJsSrKcnCNsuADugzDXR1c-tdwi~On7Bvj34duWuBR3Es9yj5pap4MS5tFdhaRusdf-mnMLeB7suE2p5i34dvTaIsolUnmBxjII06Pv-zDlPf1af0CFxTLZCXPfv88x3XemjEn8WtmS1A5xKpl~2Jb7efWPiOJk7Eu-3Ne5MfiY4SbhmwftUGh8gjKdzmUxQF7D-dyXv37DORmoRgYdtgInRcLo65fH0~K9Ta3mw__&Key-Pair-Id=KUT5TJCACFTXG","The Alcohol, Tobacco and Cannabis Commission asked the House Economic Matters Committee for a favorable report on House Bill 112, which would remove a legislative requirement that the commission enter a memorandum of understanding with the Comptroller of Maryland.

The bill’s change, the ATCC said, would eliminate a statutory “shall” that requires an annual MOU between the two agencies. \"House Bill 112 does a very simple thing. It removes the legislative mandate for an MOU between the comptroller of Maryland and the ATCC,\" said Jeff Kelly, executive director of the Alcohol, Tobacco and Cannabis Commission. Kelly told the committee the ATCC no longer relies on the comptroller for core administrative services and has built out human resources, budgeting, procurement and an independent licensing system.

The comptroller’s deputies urged the committee to retain the statutory mandate. Rachel Sessa, deputy comptroller for law and oversight, said the 2021 legislative requirement that the agencies enter an MOU was intended to ensure details about recordkeeping, bonds and related functions are memorialized. \"Shall is a great way to future proof,\" Sessa said, adding that the MOU specifies how records are maintained, how bonds are processed and how claims are handled.

Why it matters: The agencies split responsibilities when the ATCC was created. Supporters of HB 112 say the ATCC has matured into an independent agency able to operate without a mandatory MOU; opponents say codifying the requirement prevents disputes and preserves institutional memory if leadership or priorities change.

What the ATCC told the committee: Kelly and Thomas Akris, director of the ATCC’s legal and legislative division, described three narrow functions currently referenced in the MOU: access to a parking lot in Jessup used for seized contraband vehicles, assistance with tax \"breakage\" claims when wholesalers claim excise tax credits for damaged product, and handling surety bonds used to secure tax obligations. \"The MOU that's in place now covers 3 things,\" Akris said, and he told lawmakers that breakage inquiries occur about \"1 to 2 times a year.\" Akris also said that some information — for example state and federal taxpayer information — cannot be shared under existing legal restrictions even if an MOU exists.

What the Comptroller told the committee: Deputy Comptroller Sessa and Van Howarth, director of the Comptroller’s Field Enforcement Bureau, said the annual, statutory MOU provides clarity about who is responsible for which tasks and how sensitive tax-related records are handled. Howarth told members that the relationship is ‘‘unique’’ because the ATCC was previously part of the comptroller’s office and that codifying an MOU helps ensure consistent procedures if leadership or priorities change.

Committee discussion: Members asked about timeliness of MOU signatures, staff impacts, and whether removing the statutory \"shall\" would materially change how the parties cooperate. ATCC witnesses said negotiations sometimes ran late; Akris told the committee that in at least one year a draft MOU that began negotiations in April was not signed until August or October, raising audit concerns. Comptroller witnesses said a statutory obligation creates a fallback if future administrations choose not to cooperate.

What the bill would not do, per testimony: Akris and Kelly said the ATCC currently has its own HR, finance and IT support (IT provided through DoIT) and an independent licensing system, and they stressed the agency will enter MOUs voluntarily when appropriate — but they argued the statute’s annual mandate is no longer necessary.

Next steps: The committee heard the testimony and took no recorded vote during the hearing. Several members asked clerks to follow up with additional information and representatives of both agencies said they had met informally before the hearing and would continue discussions.

Ending: The committee concluded the HB 112 hearing after questioning; no formal committee action was recorded in the transcript.","The Alcohol, Tobacco and Cannabis Commission told the House Economic Matters Committee that House Bill 112 would remove a statutory requirement to execute a memorandum of understanding with the Comptroller’s Office; the Comptroller’s Office urged the committee to keep the requirement, saying it ‘‘future-proofs’’ interagency duties.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6364025,"Bill would create emeritus CPA license for retired accountants in Maryland",0,5659000,"/Search/View?dp=1&key=2165436-f07c597778f385870c8a73d904996f83&start=5659&end=5659","https://assets.pipeline.soar.com/2165436-f07c597778f385870c8a73d904996f83/thumbnail_5659000.jpg","/articles/6364025/Maryland/Bill-would-create-emeritus-CPA-license-for-retired-accountants-in-Maryland","https://secure.pipeline.soar.com/6364025-cbfd7c96d784afa1040ff0545ca12c58/orig.mp4?Expires=1771174664&Signature=VaHrxnN-pCki7bAcdd1pFYapCF6wanP3D8Qkop4DxN0Gv1TC0R2z-2IRKxWYunVF1WZLn1IkT3xSrYAnPLLblLy-1L28bB1WWEn~~SNytYvfDUOXEyU4rpbPYGUCpr4KTx6JuofMmbm2fVa21vJOdgb2FB7y-wgRq1jEXiwByn8wFAsQTmsEaz28tcB7rAGbf~5x0nS~XrlQqHAElCNNGJVianK5b8pFbAjj0g1DpDOtcKyZprGeFYsxmOL3HXflwGDdcXo1XpplE2MdXy6QxJwtFCKchPWFxhXSMU4qq1f-QJrpJUonwDV7V63tNudVIN055K3bnUreGOQPZG8l0Q__&Key-Pair-Id=KUT5TJCACFTXG","A bill before the House Economic Matters Committee would establish an emeritus status for certified public accountants who are retired, over age 60 and meet long-practice requirements, allowing them to perform limited volunteer and advisory work without paying renewal fees or meeting continuing-education requirements.

The sponsor told the committee HB 427 would grant emeritus status to CPAs who are at least 60 years old, retired from active practice, and have practiced at least 40 years with at least 20 years in Maryland. The sponsor described the designation as a restricted license that exempts eligible persons from the usual renewal process and continuing-education requirements while preserving public protections.

Sponsor testimony noted that other professions in Maryland — including some physicians, architects and university faculty — already have emeritus or similar restricted licenses. The sponsor said emeritus CPAs commonly perform volunteer tax-preparation assistance for non‑clients, teach, serve on advisory boards and help nonprofit organizations, and that granting emeritus status reduces regulatory burden for retired professionals while making their expertise more available to communities.

The sponsor described the continuing-education burden the bill would address: \"They tend to do volunteer work... As long as the person is not a client, they can offer tax preparation assistance,\" and noted the current renewal cycle for active CPAs includes 80 continuing professional education hours every two years, including 4 hours of ethics training, plus a renewal fee (testimony referenced a $56 renewal fee).

Committee members asked a procedural question about leaving emeritus status and returning to active practice; the sponsor said an emeritus designee would need to meet the regular education and renewal requirements to return to active status.

Why it matters: Supporters said the change recognizes long-serving accountants and reduces the administrative cost of retirement while improving access to volunteer expertise for nonprofits and community organizations. There were no recorded opponents in the transcript and the committee concluded its consideration of the bill during the same meeting.","House Bill 427 would establish an emeritus certification for retired certified public accountants who meet age and service thresholds; sponsor said the designation would enable retired CPAs to volunteer expertise without renewing full license requirements.","actionData","errors"]

Article not found

Lawmakers weigh prompt-payment bill for construction subcontractors amid disputes over enforcement and penalties

ATCC urges end to statutory MOU requirement with comptroller; comptroller opposes removal

Bill would create emeritus CPA license for retired accountants in Maryland