MD HB1336

Extends construction contract payment laws to local government owners including counties, municipal corporations, boards of education, and public authorities

Requires state agencies to pay contractors within 30 days of receiving a proper invoice (15 days for small business reserve contracts), with subcontractors paid within 7 days of contractor receiving payment

Increases interest rate on late payments from 9% per year to 2% per month, accruing starting on the 61st day after invoice receipt; interest requirements cannot be waived or altered by contract

Requires written notification within 15 days when withholding payment, specifying the reason and identifying disputed work; withheld amounts cannot exceed twice the disputed amount

Allows contractors or subcontractors to stop work after 14 days' written notice if payment is not received, without being deemed in default or subject to replacement (does not apply to emergency contracts)