Maryland legislation · 2026 Regular Session
Maryland HB954: State Finance and Procurement - Retention Proceeds
Status: In committee, March 23, 2026
Requiring that undisputed retention proceeds retained by a unit or a certain contractor under a State procurement contract be paid within 90 days after the date of substantial completion.
What the bill says
An act concerning State Finance and Procurement - Retention Proceeds FOR the purpose of requiring that certain retention proceeds retained by a unit or a certain contractor under a State procurement contract be paid within a certain period of time after the date of substantial completion; and generally relating to the payment of retention proceeds under a State procurement contract. BY repealing and reenacting, with amendments, Article - State Finance and Procurement Section 13-225 Annotated Code of Maryland (2021 Replacement Volume and 2025 Supplement).
From the engrossed text, March 17, 2026:
AN ACT concerning State Finance and Procurement - Retention Proceeds FOR the purpose of requiring that certain retention proceeds retained by a unit or a certain contractor under a State procurement contract be paid within a certain period of time after the date of substantial completion; and generally relating to the payment of retention proceeds under a State procurement contract. BY repealing and reenacting, with amendments, Article - State Finance and Procurement Section 13-225 Annotated Code of Maryland (2021 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 - State Finance and Procurement 13-225. (a) (1) In this section the following words have the meanings indicated. (2) "Payment security" has the meaning stated in § 17-101 of this article. (3) "Performance security" has the meaning stated in § 17-101 of this EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb0954* HOUSE BILL article. (b) (1) If a contractor has furnished 100% payment security and 100% performance security in accordance with Title 17, Subtitle 1 of this article under a State procurement contract for construction, the …