# Local Government (GLG)

## Title 1. Definitions; General Provisions

### Subtitle 7. Limits on Competition; Franchises

#### Section 1-703

(a) It is the policy of the State to authorize each county and municipality to displace or limit competition in the area of public transportation to:

  (1) provide adequate, economical, and efficient transportation services;

  (2) protect against excessive and inconsistent prices for transportation services;

  (3) conserve energy and reduce accidents, air pollution, congestion, and traffic hazards through public transportation;

  (4) encourage its use by contributing capital and operating funds so that transportation may be provided at the lowest cost; and

  (5) promote the general welfare by providing a comprehensive transportation system.

(b) Notwithstanding any anticompetitive effect, a county or municipality may:

  (1)

    (i) grant one or more franchises for transportation services on an exclusive or nonexclusive basis;

    (ii) impose franchise fees;

    (iii) establish rates applicable to the franchise; and

    (iv) adopt rules, regulations, and licensing requirements for the operation of the franchise; or

  (2) operate a public transportation system on an exclusive basis, including:

    (i) establishing rates for the public transportation system; and

    (ii) adopting rules and regulations for the operation of the public transportation system.

---

Md. Code Ann., Local Gov't (as displayed at mgaleg.maryland.gov, October 16, 2026)