Painters and painting contractors in Maryland provide an important service to homeowners and businesses by applying paint, stain, and other coatings to improve and protect interior and exterior surfaces. However, unlike many other trades, painters are required to hold a state-issued license in order to operate legally. This ensures painters have the proper training and meet certain standards that help protect their customers.

Maryland Home Improvement Commission Licensing

All painting contractors who perform work on residential properties in Maryland must hold an active license issued by the Maryland Home Improvement Commission (MHIC). The MHIC is part of the Maryland Department of Labor and oversees the licensing and regulation of contractors who provide home improvement services in the state.

What is Considered “Home Improvement”?

According to the MHIC, home improvement work includes “alteration, conversion, improvement, modernization, remodeling, repair, or replacement of a building or part of a building used as a residence.” This applies to both interior and exterior painting services.

Specifically, the following painting and coating application services require a home improvement contractor license when working on residential properties:

  • Interior house painting – walls, ceilings, trim, etc.
  • Exterior house painting
  • Deck staining and sealing
  • Fence staining and sealing
  • Garage painting and staining
  • Shed painting and staining
  • Wall murals and other decorative finishes
  • Wallpaper hanging and removal
  • Surface preparation – sanding, scraping, pressure washing
  • Applying protective coatings – elastomeric, waterproofing, masonry sealers
  • Lead paint abatement

Home improvement work also covers structures adjacent to residences such as sheds, fences, decks, and driveways. However, a license is not needed for commercial painting jobs or work on the interior common areas of condo and apartment buildings with 4 or more units.

Eligibility Requirements

To qualify for an MHIC painting contractor license, applicants must meet certain eligibility criteria:

  • Experience: Have at least two years of experience in home improvement, construction, or related education. This can be demonstrated through past employment history, education transcripts, or sworn affidavits. Documented experience specifically in the painting trade is ideal to show for licensing purposes.
  • Financial solvency: Meet financial solvency requirements based on business size and assets/liabilities. Applicants may need to provide business and personal tax returns for the past two years, credit reports, bank account statements, and a net worth statement. Financial solvency shows the business has resources to take on home improvement projects.
  • Insurance: Carry a minimum of $50,000 in business liability insurance. Proof of current coverage with the painting business specifically listed must be submitted.
  • Criminal history: Disclose any past misdemeanor or felony convictions related to home improvement work. Background checks are performed.
  • Exams: Pass the MHIC licensing exams administered by PSI Exams. There is a business section and a trade section with painting-specific questions.
  • Fees: Pay required licensing fees. See below for current costs.

Applicants representing a corporation must also submit articles of incorporation and a certificate of good standing from Maryland’s Department of Assessments and Taxation. Those using a trade name need to register it with the state and provide proof to the MHIC.

License Application Process

Once painters have established their eligibility, the next step is to complete the MHIC license application process:

  1. Take exams: Schedule and pass the MHIC exams through PSI Exams. There is a business section and a trade section. Exam fees are $68 each. Study guides are available to help prepare for the tests.
  2. Submit application form: File the MHIC Contractor Original License Application along with all required documents. The non-refundable application fee is $300.
  3. MHIC review: Applications are reviewed within 10-15 days. Applicants will be contacted if any information is missing. Deficiencies must be corrected to move forward.
  4. License issued: Once approved, the MHIC will issue a 2-year painting contractor license. New licenses can be verified on the MHIC license search site. The $50 license fee is payable upon first renewal.

Maintaining the License

To keep their painting contractor license current in Maryland, holders must:

  • Renew license every 2 years before expiration and pay $270 renewal fee
  • Pay license fee of $50 upon first renewal
  • Pay Guaranty Fund assessment of $150 upon first renewal. This helps reimburse homeowners for losses.
  • Maintain insurance minimum of $50,000 liability coverage
  • Complete 6 hours continuing education per renewal period. Courses keep skills current.
  • Pay late fees up to $100 for renewals submitted 60+ days past expiration

The MHIC sends a renewal notice approximately 90 days prior to the license expiration date. Late renewals can be submitted up to 60 days past expiration with a $100 late fee. After 60 days, applicants must retake the licensing exams. Failing to renew on time is illegal and requires ceasing all contractor work.

License Reciprocity

Painting contractors holding an active license in certain other states may be eligible for reciprocity in Maryland. This allows them to obtain a Maryland license without taking the exams.

To qualify, applicants need an equivalent license from a state with a reciprocity agreement with Maryland. They must have passed comparable exams in that state. Reciprocity states include: Delaware, District of Columbia, Pennsylvania, Virginia, and West Virginia.

Applicants will still need to submit the same application materials, meet eligibility criteria, and pay required fees as regular license applicants in Maryland. The MHIC reviews reciprocity applications to confirm the candidate meets requirements.

Probationary and Revoked Licenses

The MHIC can place licenses on probation if a contractor violates regulations or faces unresolved complaints and claims. Additional education may be required to have the probation lifted.

In severe cases of fraud, theft, or safety issues, the MHIC may fully revoke a painting contractor’s license. This effectively puts them out of business. A revoked license cannot be renewed or reinstated for at least one year. Contractors must go through the full application process again and show how they will operate lawfully moving forward. Homeowners should not hire painters with probationary or revoked licenses.

Surety Bonds

Contractors who don’t meet the MHIC’s financial solvency requirements can obtain a license by acquiring a surety bond. This provides an alternative way to demonstrate financial stability.

Surety bonds must be issued by an authorized company licensed in Maryland. The amount of the bond must be at least $5,000. Contractors must keep the surety bond current by paying annual premiums for as long as the license is active.

If a contractor is unable to complete a home improvement project or fulfill their contractual obligations, the customer can file a claim against the bond to recover losses. This provides an extra layer of protection for homeowners who hire painters in Maryland.

Insurance Requirements

Holding adequate business insurance coverage is a condition of maintaining an active MHIC painting contractor license. At minimum, contractors must carry:

Liability Insurance

All MHIC license holders must maintain $50,000 in liability insurance and keep a certificate of insurance on file. This covers property damage and bodily injury caused by the contractor. It compensates customers in the event of an accident while work is being performed.

Liability insurance policies for painters should specifically mention painting activities. Coverage for ladder injuries, lead paint exposure, and spraying equipment is also recommended.

Liability insurance must remain current at all times. Contractors must notify the MHIC at least 10 days before any lapse or cancellation.

Worker’s Compensation

Businesses with employees must also carry worker’s compensation insurance. This provides wage replacement and medical benefits to workers injured on the job. Maryland requires worker’s comp policies to have at least $100,000 in coverage.

Independent contractors and sole proprietors without employees are exempt. However, they may still elect coverage to protect themselves in case of injury.

Optional Insurance

Other recommended insurance policies for painting contractors include:

  • Professional liability – Covers financial loss from mistakes, negligence
  • Commercial auto – Protects against losses involving company vehicles
  • Commercial property – Insures tools, equipment, inventory against theft or damage
  • Employment practices liability – Defends against employee discrimination, harassment claims
  • Cyber liability – Safeguards against data breaches, hacking, cyber crimes

Enforcement and Disciplinary Action

To ensure public safety, the MHIC has broad authority to enforce Maryland’s home improvement licensing laws and regulations. Violations can result in fines, disciplinary proceedings, license suspension, or revocation.

Prohibited acts include:

  • Performing home improvement work without a valid MHIC license
  • Allowing insurance coverage to lapse
  • Failing to fulfill contractual obligations
  • Abandoning a project
  • Making false or misleading statements
  • Misrepresenting services or qualifications
  • Committing fraud or deception
  • Violating building codes
  • Failing to pay state taxes

Disciplinary actions against licensed contractors range from reprimand letters to license revocation. Serious or repeated violations can also lead to civil and criminal prosecution.

Fines for unlicensed contractors can reach up to $5,000 per offense. Jail time is also possible depending on the severity of the case. Homeowners should always verify painters have an active MHIC license.

Homeowners who are injured by unlicensed contractors or licensees engaged in prohibited acts can file a claim to recover damages through the MHIC’s Guaranty Fund. This pool of money comes from license fees paid by contractors across the state.

Finding Licensed Painters

There are a few ways for homeowners to find licensed painting contractors in Maryland:

  • MHIC license search – Verify painter’s license on state site
  • Referrals – Ask neighbors, friends, realtors for recommendations
  • Home builders associations – Members adhere to codes of ethics
  • Review sites – Check ratings and feedback from past customers
  • Get quotes – Have 3-5 licensed contractors bid on the project

When speaking with painters, ask to see their MHIC license card and certificate of insurance. Get complete contract details in writing before work begins.

Conclusion

Operating legally as a painting contractor in Maryland requires more than just obtaining supplies and finding customers. All painters working on residential properties must secure an active license issued by the state’s Home Improvement Commission.

While the licensing process involves exams, fees, and paperwork, it provides oversight that promotes higher industry standards. Mandatory liability insurance and surety bonds also help protect homeowners when hiring painters for improvement projects.

Staying informed on Maryland’s painting contractor requirements takes ongoing education and vigilance. But the investment of time and resources helps create a fair, ethical, and transparent environment for both contractors and their customers. Following the licensing rules allows painters to build a reputation of trust and gain access to the state’s large home improvement market.