HARRY HUGHES, Governor

1583

(A)  THERE IS A HOME IMPROVEMENT GUARANTY FUND TO COMPENSATE
OWNERS FOR ACTUAL LOSSES INCURRED BY THEM AS A RESULT OF CONDUCT
BY LICENSED CONTRACTORS THAT IS FOUND BY THE COMMISSION OR A
COURT OF COMPETENT JURISDICTION TO BE:

(1)  WORK PERFORMED UNDER A HOME IMPROVEMENT CONTRACT
IN A POOR OR UNWORKMANLIKE MANNER OR WHICH IS OTHERWISE
INADEQUATE OR INCOMPLETE; OR

(2)  A VIOLATION OF § 261 OF THIS SUBTITLE.

(B)  A CLAIMANT SHALL EXHAUST ANY REMEDIES AVAILABLE UNDER
THE BOND PROVIDED FOR IN SECTION 257(C) OF THIS SUBTITLE BEFORE
RECOVERING ON A CLAIM AGAINST THE FUND.

(B) (C) FOR PURPOSES OF RECOVERY AGAINST THE FUND, THE
CONDUCT OF A LICENSED CONTRACTOR SHALL BE DEEMED TO INCLUDE THAT
OF ITS EMPLOYEES, SALESMEN, OR SUBCONTRACTORS WHETHER OR NOT AN
EXPRESS AGENCY RELATIONSHIP EXISTS.

(C) (D) THE PROVISIONS OF ANY WRITTEN AGREEMENT TO SUBMIT
ANY DISPUTE TO ARBITRATION MUST BE COMPLIED WITH PRIOR TO ANY
RECOVERY FROM THE FUND.

257B.

(A)  THE COMMISSION SHALL:

(1)  ADMINISTER THE FUND IN ACCORDANCE WITH THIS
SUBTITLE;

(2)  MAINTAIN THE FUND AT A LEVEL OF AT LEAST
$250,000; AND

(3)  DEPOSIT ALL MONEYS COLLECTED TO THE CREDIT OF THE
FUND WITH THE STATE TREASURER FOR PLACEMENT IN A SPECIAL ACCOUNT.

(B)  THE STATE TREASURER SHALL INVEST OR REINVEST MONEYS IN
THE FUND IN THE SAME MANNER AS MONEYS IN THE STATE EMPLOYEES
RETIREMENT AND PENSION SYSTEM. INTEREST ACCRUING FROM INVESTMENT
OF MONEYS IN THE FUND SHALL BE CREDITED TO THE FUND.

257C.

(A)  EVERY CONTRACTOR WHO APPLIES FOR A LICENSE AFTER JUNE
1, 1985, OR WHO RENEWS A LICENSE AFTER THAT DATE SHALL PAY A FEE
OF $50 INTO THE FUND. A CONTRACTOR IS NOT REQUIRED TO PAY THIS
FEE MORE THAN ONCE UNLESS THE OMMISSION MAKES AN ASSESSMENT
UNDER SUBSECTION (B) OF THIS SECTION.

(B)  IF THE COMMISSION DETERMINES THAT, IN LIGHT OF PENDING
CLAIMS, THE AMOUNT OF THE FUND IS INSUFFICIENT TO MAINTAIN THE
FUND AT A LEVEL OF AT LEAST $250,000, THE COMMISSION SHALL ASSESS
EACH LICENSED CONTRACTOR AN APPROPRIATE FEE. HOWEVER, THE
COMMISSION MAY NOT ASSESS ANY LICENSED CONTRACTOR MORE THAN $50
IN ANY CALENDAR YEAR.