Title 10A. Public-Private Partnerships — Subtitle 4. Public–private Partnership Agreements
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Fin. & Proc. § 10A-401 (2026)
Title 10A. Public-Private Partnerships
Subtitle 4. Public–private Partnership Agreements
§ 10A–401LinkCopy Citation
(a)
Whenever applicable, a public–private partnership agreement shall include the following provisions:
(1)
the method and terms for approval of any assignment, reassignment, or other transfer of interest related to the public–private partnership agreement;
(2)
the methods and terms for setting and adjusting tolls, fares, fees, and other charges related to the public infrastructure asset;
(3)
the method and terms for revenue–sharing or other sharing in fees or charges, in which the public participates in the financial upside of asset performance of the public infrastructure asset;
(4)
minimum quality standards, performance criteria, incentives, and disincentives;
(5)
operations and maintenance standards;
(6)
the rights for inspection by the State;
(7)
the terms and conditions under which the reporting agency may provide services for a fee sufficient to cover both direct and indirect costs;
(8)
provisions for oversight and remedies and penalties for default;
(9)
the terms and conditions under which the reporting agency originating the public–private partnership shall be responsible for ongoing oversight;
(10)
the terms and conditions for audits by the State, including the Office of Legislative Audits, related to the agreement’s financial records and performance;
(11)
the terms and conditions under which the public infrastructure assets shall be returned to the State at the expiration or termination of the agreement; and
(12)
requirements for the private entity to provide performance security and payment security in a form and in an amount determined by the responsible public entity, except that:
(i)
requirements for the payment security for construction contracts shall be in accordance with Title 17, Subtitle 1 of this article; and
(ii)
requirements for the amount of the payment security and any performance security in the form of a performance bond for a construction contract shall be based on the value of the respective construction elements of the public–private partnership agreement and not on the total value of the public–private partnership agreement.
(b)
(1)
A public–private partnership agreement may include a provision that, except as provided in paragraph (2) of this subsection, compensation may be provided for competing infrastructure developments that directly result in a documented revenue loss for the private entity in a public–private partnership.
(2)
Compensation may not be provided as a result of State infrastructure developments already in the State’s Capital Improvement Program or Consolidated Transportation Program planning documents at the time the public–private partnership agreement is executed, safety initiatives, transit projects, infrastructure improvements with minimal capacity increases, or infrastructure or transit service improvements for other transportation modes that are not the subject of the public–private partnership.
(c)
A public–private partnership agreement for a project involving road, highway, or bridge assets may not include a noncompete clause that would inhibit the planning, construction, or implementation of State–funded transit projects.
Md. Code Ann., State Fin. & Proc. § 10A-402 (2026)
Title 10A. Public-Private Partnerships
Subtitle 4. Public–private Partnership Agreements
§ 10A–402LinkCopy Citation
(a)
Except as provided in subsection (b) of this section, a public–private partnership agreement may not exceed 50 years, including all renewals and extensions.
(b)
The Board of Public Works may:
(1)
waive the prohibition set forth in subsection (a) of this section if the Board determines that the reporting agency has demonstrated sufficient reason for the agreement to have a longer term; and
(2)
waive the prohibition set forth in subsection (a) of this section at any point during the presolicitation, proposal review, or agreement negotiations process.
Md. Code Ann., State Fin. & Proc. § 10A-403 (2026)
Title 10A. Public-Private Partnerships
Subtitle 4. Public–private Partnership Agreements
§ 10A–403LinkCopy Citation
(a)
In this section, “Advisory Group” means the State Center Advisory Group.
(b)
This section applies to the project development of the 28–acre State–owned property in Baltimore City bordered by Dolphin Street, North Howard Street, Martin Luther King Boulevard, and Madison Avenue, commonly known as State Center.
(c)
(1)
The State or its reporting agency shall convene a State Center Advisory Group.
(2)
The purpose of the Advisory Group is to:
(i)
provide community input on the development of State Center;
(ii)
inform the identification of potential community benefits associated with the project in the immediate surrounding neighborhoods that border State Center; and
(iii)
facilitate transparency and information–sharing between the developer, the State or its reporting agency, and the community surrounding State Center.
(3)
The Advisory Group shall consist of the following members:
(i)
a designee of each anchor institution described under subsection (d) of this section; and
(ii)
a designee of each of the following entities:
(1)
Arena Players;
(2)
Baltimore Alumni Chapter Kappa Alpha Psi Fraternity Inc.;
(3)
Baltimore Symphony Orchestra;
(4)
Bolton Hill Community Association;
(5)
Druid Heights Community Development Corporation;
(6)
Grand Lodge Prince Hall Masons;
(7)
Heritage Crossing Residents Association;
(8)
McCulloh Homes Residents Association;
(9)
Madison Park Improvement Association;
(10)
Marble Hill Association;
(11)
Maryland Institute College of Art;
(12)
Midtown Development Corporation;
(13)
Mt. Vernon Belvedere Association;
(14)
Pennsylvania Ave Redevelopment Collaborative;
(15)
Seton Hill Association;
(16)
University of Baltimore;
(17)
University of Maryland Medical System Midtown Campus;
(18)
Upton Planning Committee;
(19)
Urban League Baltimore; and
(20)
a faith–based organization located in the area surrounding State Center.
(4)
(i)
If an individual who serves on the Advisory Board as a representative of a neighborhood association is employed by an anchor institution, the individual shall represent only the interests of the neighborhood association and may not represent the interests of the anchor institution.
(ii)
The Advisory Group shall:
(1)
adopt a policy on conflicts of interest for members as part of the governance procedures of the Advisory Group; and
(2)
develop a conflict–of–interest disclosure document.
(iii)
The Advisory Group may address any conflicts of interest as set forth in the governance procedures, including by requiring a neighborhood association to appoint a designee to the Advisory Group who is not employed by an anchor institution if deemed necessary to resolve the conflict.
(5)
(i)
The members of the Advisory Group shall elect one member to serve as Chair of the Advisory Group by majority vote of the members present at the meeting to elect a Chair.
(ii)
The Chair of the Advisory Group shall serve for a term designated by the Advisory Group.
(iii)
The Chair of the Advisory Group shall continue to serve beyond the term of office until a successor is elected.
(iv)
The Chair of the Advisory Group shall provide the members of the Advisory Group with all notices received by the Chair.
(d)
Any new or modified development contract or plan shall, to the extent possible, include:
(1)
anchor institutions that provide public or community services, which may include units of the State or Baltimore City, as the major tenants;
(2)
space for retail, housing, offices, restaurants, and other private businesses;
(3)
a high–quality, full–service grocery store;
(4)
elements designed to increase the connection of State Center to the surrounding communities; and
(5)
green space.
(e)
(1)
The State or its reporting agency and any developer who is party to a contract or plan for the development of State Center shall engage with the Advisory Group throughout the planning and development process, including by providing updates on any public approval proceeding.
(2)
Subject to applicable federal law and notwithstanding any other provision of this title, consistent with any requirements tied to public funding sources, the State or its reporting agency may not enter into a new or modified contract or plan for the development of State Center unless the new or modified contract or plan includes provisions that require:
(i)
a comprehensive local hiring plan for the project that includes goals:
(1)
for short–term construction jobs;
(2)
for long–term employment opportunities; and
(3)
for job training;
(ii)
an economic improvement plan for the project that includes goals for the use of minority– and women–owned and locally owned businesses; and
(iii)
a community benefit agreement between the developer and the Advisory Group.
(f)
The State or its reporting agency shall engage in community consultation during the development of State Center through communication with the Advisory Group.
(g)
A developer who is a party to a new contract or plan for the development of State Center shall use best practical efforts to begin construction within 24 months after execution of the new contract and any associated plans.
Md. Code Ann., State Fin. & Proc. § 10A-404 (2026)
Title 10A. Public-Private Partnerships
Subtitle 4. Public–private Partnership Agreements
§ 10A–404LinkCopy Citation
(a)
The findings and evidence relied on by the General Assembly for the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of this article are hereby incorporated.
(b)
To the extent practicable and permitted by the United States Constitution, the provisions of the Minority Business Enterprise Program under Title 14, Subtitle 3 of this article shall apply to public–private partnerships established under this title.
(c)
(1)
The Board of Public Works may not approve a public–private partnership agreement under § 10A–203 of this title until the reporting agency, in consultation with the Office of Small, Minority, and Women Business Affairs, the Office of the Attorney General, and the private entity, if permissible, establishes reasonable and appropriate minority business enterprise participation goals and procedures for the project.
(2)
To the extent practicable, goals and procedures established under paragraph (1) of this subsection shall be based on the requirements of Title 14, Subtitle 3 of this article, including the implementation of regulations adopted under §§ 14–302 and 14–303 of this article.
(d)
On and after July 1, 2031, the provisions of this section and any regulations adopted in accordance with this section shall be of no effect and may not be enforced.