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Bill > SB453


MD SB453

State Contracts - Prohibited Provisions


summary

Introduced
01/22/2025
In Committee
03/28/2025
Crossed Over
03/12/2025
Passed
03/31/2025
Dead
Signed/Enacted/Adopted
05/20/2025

Introduced Session

2025 Regular Session

Bill Summary

Clarifying a prohibition on including in State contracts provisions pertaining to limitations of liability for damage to real or tangible personal property; and clarifying a prohibition on including in State contracts provisions limiting the recovery of costs related to the use of replacement contractors under certain circumstances.

AI Summary

This bill clarifies and expands prohibitions on certain provisions in State contracts to protect the state's interests. Specifically, it prevents state contracts from including provisions that: require the state to indemnify or defend another party without allocated funds; agree to binding arbitration; specify jurisdictions outside Maryland for disputes; limit the state's liability for property damage or bodily injury caused by negligence or misconduct; bind the state to unknown, unilaterally changeable, or electronically accepted terms; allow legal representation other than the Attorney General; conflict with existing state obligations; include automatic renewals requiring future funding commitments; or restrict the state's ability to recover costs when hiring a replacement contractor. If any of these prohibited provisions are included in a contract, they are automatically considered void, and the contract will be interpreted as if those provisions never existed. The bill applies to all state contracts except those related to racing or training facility sites, and it is set to take effect on October 1, 2025. The goal is to ensure that state contracts are fair, transparent, and protect the state's financial and legal interests.

Committee Categories

Budget and Finance, Health and Social Services

Sponsors (1)

Last Action

Approved by the Governor - Chapter 723 (on 05/20/2025)

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