Environment
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
StateMarylandTo Governor
SB 814: Residential Property - Service Agreement - Defunct Service Providers
Antonio Hayes
SB 814 status: To Governor — Approved by the Governor - Chapter 738 (updated May 26, 2026).
Source
OpenStates
Confidence
Low
Analysis basis
OpenStates summary
01
What this bill does
Official summary alongside an AI-generated read on where it stands and why.
Overall Score
75OUT OF 100
Score:75/100 civic fit
Risk:Low Risk
Impact:Moderate Impact 40/100
Constitutionality90%
Bipartisan70%
Public opinion85%
Bill summary
What changes
The bill allows homeowners to terminate service agreements when a service provider goes out of business.
Who is affected
Maryland homeowners and residential service providers, such as home security and lawn care companies.
Requirements and enforcement
Providers and consumers must adhere to new standards regarding the termination of agreements following a provider's dissolution.
Costs and funding
Not stated in the available source.
When it takes effect
The bill has been approved by the Governor as of May 26, 2026.
Potential benefits
Ensures homeowners are not contractually obligated to defunct entities and provides a legal exit for service agreements.
Risks and tradeoffs
Potential for ambiguity regarding the definition of 'defunct' and the process for consumers to legally terminate contracts.
What is still unknown
The specific evidence or legal process required to trigger a termination under this new law is not defined in the provided summary.
02
Impact analysis
✦ AI analysisModeled effects across six domains, estimated from bill text and comparable legislation.
Economy
Positive outlook
75%
Benefits
- Protects homeowners from financial loss to defunct companies
- Improves clarity in consumer service market obligations
- Prevents unfair billing for services that cannot be rendered
Risks
- May increase administrative burdens for business acquisitions
- Potential for contractual disputes during corporate dissolution
- Regulatory compliance shifts for home service firms
Society
Positive outlook
75%
Benefits
- Empowers homeowners to exit dead-end service agreements
- Provides clear legal recourse for service delivery failure
- Fosters community stability by resolving stagnant property liens
Risks
- Potential confusion regarding the legal status of contracts
- Reliance on administrative proof of provider dissolution
- Burden of evidence regarding defunct status may fall on consumers
Technology Industry
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Civic Accountability
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Public Health & Safety
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
03
How trustworthy & consequential it is
Sourcing already shown above, this is what the analysis found worth flagging.
Source
OpenStates
Official bill text or data from OpenStates.
Confidence
Low
Information is limited or incomplete.
Analysis basis
OpenStates summary
Source used for this bill's analysis.
Source note
The process for proving a provider is 'defunct' may require specific documentation not clarified in the abstract.
Analysis scope
Source provided is a summary abstract; full legislative text not analyzed.
04
Where it stands
Official record- IntroducedComplete
- CommitteeComplete
- Chamber votesComplete
- Final agreementComplete
- GovernorCurrent
- EnactedUpcoming
05
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06
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