Bill > SB646

This bill, concerning public school system contracts, aims to prevent certain unfavorable terms from being included in agreements made by public school systems, which are defined as any contract entered into by a public school system. Specifically, it prohibits contracts from requiring the school system to cover the costs of defending or protecting another party without dedicated funding, to agree to binding arbitration or other mandatory out-of-court dispute resolution, or to accept a jurisdiction or venue outside of Maryland for legal disputes. It also forbids clauses that limit the school system's recovery for losses caused by another party's negligence or misconduct, or that bind the school system to terms that are unknown at signing, can be unilaterally changed, or are electronically accepted by unauthorized employees. Furthermore, the bill prevents contracts from restricting the school system's choice of legal counsel, contradicting its obligations under state law, creating financial liabilities beyond appropriated funds, automatically renewing with future funding commitments, or limiting the school system's ability to recoup costs for replacement services. Any contract that includes these prohibited provisions will have those specific clauses considered void from the beginning, and the rest of the contract will remain enforceable as if the invalid clause was never there, with all such contracts being governed by Maryland law. This Act will apply only to contracts signed on or after its effective date of July 1, 2026, and will not affect existing contracts or their renewals.

Education

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0646?ys=2026RS