WILLIAM DONALD SCHAEFER, Governor                     Ch. 42

Approved April 12, 1988.

CHAPTER 42

(Senate Bill 511)

AN ACT concerning

Home Improvement Commission - Small Claims

FOR the purpose of empowering the Commission to issue a proposed
order resolving a claim filed with the Commission if the
claim does not exceed a certain amount; requiring the
Commission to issue a revised proposed order within a
certain time period; providing that the claimant has the
burden of proof at a hearing; providing for the proposed
order to become a final order if no exceptions are filed
within a certain time period; and generally relating to
claims filed with the Maryland Home Improvement Commission.

BY repealing and reenacting, with amendments,

Article 56 - Licenses

Section 257D(c)

Annotated Code of Maryland

(1983 Replacement Volume and 1987 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 56 - Licenses

257D.

(c) (1) Upon receipt of a claim, the Commission shall
forward a copy of the claim to the licensed contractor alleged to
be responsible for the monetary loss of the claimant and shall
require a written response to the allegations set forth in the
claim within 10 days. After review of both the claim and any
response received and any investigation, the Commission may
either schedule the matter for hearing or dismiss the claim if it
is frivolous, made in bad faith, or legally insufficient. Notice
to appear at a hearing shall be given to any subcontractor or
salesman, if necessary, to fairly adjudicate a claim.

(2) IF A CLAIMANT'S TOTAL CLAIM ARISING FROM THE
CONDUCT OF ONE LICENSED CONTRACTOR DOES NOT EXCEED $2,500, THE
COMMISSION MAY ISSUE A PROPOSED ORDER TO EITHER PAY THE CLAIM IN
WHOLE OR IN PART OR TO DENY THE CLAIM. THE COMMISSION SHALL SEND

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