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WES MOORE, Governor Ch. 749
Chapter 749
(House Bill 1216)
AN ACT concerning
Insurance – Certificates of Guarantee for County Bond Requirements – All
Counties
FOR the purpose of authorizing all counties, rather than only specified counties, to honor
certificates of guarantee that are issued by certain associations or on behalf of certain
contractors in order to satisfy certain county bond requirements; providing that a
county is not required under certain provisions of law to honor certain certificates of
guarantee; and generally relating to certificates of guarantee.
BY repealing and reenacting, with amendments,
Article – Insurance
Section 1–203
Annotated Code of Maryland
(2017 Replacement Volume and 2025 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Insurance
1–203.
(a) (1) In this section the following words have the meanings indicated.
(2) “Certificate of guarantee” means an instrument that is issued:
(i) by a nonprofit association of contractors, or its wholly owned
subsidiary that is approved to operate by [Baltimore County, Baltimore City, Calvert
County, Charles County, Howard County, Prince George’s County, Montgomery County,
St. Mary’s County, or Washington County, as appropriate] A COUNTY; and
(ii) on behalf of a contractor for the purpose of satisfying:
1. county bond requirements for public improvements; or
2. other county bond requirements.
(3) “Contractor” means a person that, for a fixed price, commission, fee, or
percentage, undertakes to bid on or accepts or offers to accept orders or contracts to perform
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Ch. 749 2026 LAWS OF MARYLAND
or supervise the construction, improvement, or maintenance of a building, structure, or
road.
(b) This article does not apply to a certificate of guarantee.
(c) [Baltimore County, Baltimore City, Calvert County, Charles County, Howard
County, Montgomery County, Prince George’s County, St. Mary’s County, and Washington
County] A COUNTY:
(1) may honor certificates of guarantee; but
(2) [are] IS not required under this article to honor certificates of
guarantee.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2026.
Approved by the Governor, May 26, 2026.
–2–Every fact on this page links to its source, starting with the official bill record.