# State Finance and Procurement (GSF)

## Title 10A. Public-Private Partnerships

### Subtitle 1. Definitions; General Provisions

#### Section 10A-101

(a) In this title the following words have the meanings indicated.

(b) "Budget committees" means the Senate Budget and Taxation Committee, the House Committee on Ways and Means, and the House Appropriations Committee.

(c) "Private entity" means an individual, a corporation, a general or limited partnership, a limited liability company, a joint venture, a statutory trust, a public benefit corporation, a nonprofit entity, or another business entity.

(d)

  (1) "Public infrastructure asset" means a capital facility or structure, including systems and equipment related to the facility or structure intended for public use.

  (2) "Public infrastructure asset" includes blue infrastructure and green infrastructure, as defined in Sec. 9-1601 of the Environment Article.

(e) "Public notice of solicitation" includes a request for qualifications, a request for expressions of interest, a request for proposals, or any combination thereof.

(f)

  (1) "Public-private partnership" means a method for delivering public infrastructure assets using a long-term, performance-based agreement between a reporting agency and a private entity where appropriate risks and benefits can be allocated in a cost-effective manner between the contractual partners in which:

    (i) a private entity performs functions normally undertaken by the government, but the reporting agency remains ultimately accountable for the public infrastructure asset and its public function; and

    (ii) the State may retain ownership in the public infrastructure asset and the private entity may be given additional decision-making rights in determining how the asset is financed, developed, constructed, operated, and maintained over its life cycle.

  (2) "Public-private partnership" does not include:

    (i) a short-term operating space lease entered into in the ordinary course of business by a unit of State government and a private entity and approved under Sec. 4-321 or Sec. 12-204 of this article;

    (ii) a procurement governed by Division II of this article;

    (iii) public-private partnership agreements entered into by the University System of Maryland, St. Mary's College of Maryland, Morgan State University, or Baltimore City Community College, where no State funds are used to fund or finance any portion of a capital project; or

    (iv) a revenue-producing transportation facility under 21.01.03.03B.(1)(d) of  the Code of Maryland Regulations that is not a public-private partnership as defined under paragraph (1) of this subsection.

(g) "Reporting agency" means:

  (1) the Department of General Services;

  (2) the Maryland Department of Transportation, for public infrastructure assets of any of its modal administrations;

  (3) the Maryland Transportation Authority;

  (4) the University System of Maryland;

  (5) Morgan State University;

  (6) St. Mary's College of Maryland; and

  (7) the Baltimore City Community College.

(h) "Responsibility determination" means the determination by a reporting agency that a private entity that responds to a solicitation for a public-private partnership:

  (1) has the capacity in all respects to perform fully the requirements of a public-private partnership agreement; and

  (2) possesses the integrity and reliability that will ensure good faith performance.

#### Section 10A-102

(a) It is the public policy of the State to utilize public-private partnerships, if appropriate, to:

  (1) develop and strengthen the State's public infrastructure assets;

  (2) apportion between the public and private sectors the risks involved with developing and strengthening public infrastructure assets;

  (3) foster the creation of new jobs; and

  (4) promote the socioeconomic development and competiveness of Maryland.

(b) It is the public policy of the State that a private entity that enters into a public-private partnership with a reporting agency comply with the Labor and Employment Article and the federal Fair Labor Standards Act.

#### Section 10A-103

(a)

  (1) A reporting agency may establish a public-private partnership and execute an agreement in connection with any public infrastructure asset for which the reporting agency is responsible in accordance with the provisions of the Annotated Code.

  (2) A public-private partnership agreement executed under paragraph (1) of this subsection may include provisions that are necessary to develop and strengthen a public infrastructure asset in conjunction with a public-private partnership.

(b)

  (1) A reporting agency shall adopt regulations and establish processes for the development, solicitation, evaluation, award, and delivery of public-private partnerships.

  (2) A reporting agency may not adopt regulations under paragraph (1) of this subsection until:

    (i) the Joint Committee on Administrative, Executive, and Legislative Review reviews the regulations in accordance with Sec. 10-110 of the State Government Article;

    (ii) the budget committees review and comment on the regulations; and

    (iii) at least 45 days after the first publication of the regulations in the Maryland Register.

(c) A reporting agency may create a specific function dedicated to public-private partnership processes within the existing reporting agency.

(d) Any combination of federal, State, or local funds, grants, loans, debt, or other public sources of funding or financing may be used and combined with any private sources of funding or financing for a public-private partnership project.

(e) Any proceeds or revenues received by a reporting agency from a public-private partnership that are not otherwise paid or allocated to the private sector shall accrue to the fund that would have normally received those funds.

#### Section 10A-104

(a)

  (1) By January 1 of each year, each reporting agency shall submit to the budget committees, in accordance with Sec. 2-1257 of the State Government Article:

    (i) a report concerning each public-private partnership under consideration that has not been reviewed or approved previously by the General Assembly; and

    (ii) a status report concerning each existing public-private partnership in which the reporting agency is involved.

  (2) The reports submitted by the Department of General Services under this subsection shall include information concerning all public-private partnerships involving units within the Executive Branch of State government, except for those units that are also reporting agencies.

(b) By January 1 of each year, a unit of State government that provides conduit financing for a public-private partnership shall submit to the budget committees, in accordance with Sec. 2-1257 of the State Government Article, a list that includes each public-private partnership for which the unit is providing conduit financing.

(c) The annual report of the Capital Debt Affordability Committee required under Sec. 8-112 of this article shall include an analysis of the aggregate impact of public-private partnership agreements on the total amount of new State debt that prudently may be authorized for the next fiscal year.

(d) All existing public-private partnerships and any public-private partnership that is expected to be solicited shall be listed annually as appropriate in the annual capital budget or the Consolidated Transportation Program.

#### Section 10A-105

(a) A project undertaken by a reporting agency through a public-private partnership shall comply with the following provisions, to the extent that the provisions are applicable to the project:

  (1) Sec. 3-602.1 of this article; and

  (2) the Environment Article.

(b) The private entity and any contractors or subcontractors constructing a public infrastructure asset shall be subject to Title 17, Subtitles 1 and 2 of this article regardless of whether the contract qualifies as a public works contract.

(c) State employees shall retain all of the protections in State law, regulations, and policies that are in effect at the time the public-private partnership agreement is approved by the Board of Public Works.

(d) The Board of Public Works may not approve a public-private partnership that results in the State exceeding its debt affordability guidelines.

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Md. Code Ann., State Fin. & Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)