PRIA Logo™
MarylandSB 00772026 Regular SessionSenate

State Contracts - Prohibited Provisions - Exemptions

Sponsored By: Sponsor information unavailable

Signed by Governor

State ProcurementCommerce and Business -see also- ElectrComm; ForeignTr; etc.Commerce, Department ofContracts -see also- ProcurementInternational AffairsProcurement

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Banned clauses in Maryland state contracts

Beginning July 1, 2026, Maryland bans certain clauses in all State contracts, unless another law requires them. The State cannot indemnify or defend others without a specific appropriation. Contracts cannot require binding arbitration, pick non‑Maryland courts, or cap the State’s recovery for injury, death, or damage. The State cannot be bound by unknown, one‑sided, or unauthorized click‑through terms, and only the Attorney General may serve as State counsel (with limited statutory exceptions). Contracts must also follow Titles 3 and 4 and § 7–237, cannot auto‑renew to obligate future funds, and cannot block recovery when a costlier replacement contractor is used.

Banned terms are void and ignored

Beginning July 1, 2026, any banned contract term is void from the start. The rest of the contract still stands as if the term was never there. Maryland law governs these contracts even if the document says something else.

Which state contracts are covered or exempt

Beginning July 1, 2026, “State contract” means any agreement the State signs. Contracts about buying, fixing, or running racing or training facilities are exempt. Contracts by the Office of International Trade for authorized international business are also exempt. All other State contracts must follow the new bans and rules.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 181 • No: 0

House vote • 4/13/2026

Third Reading Passed

Yes: 136 • No: 0 • Other: 4

Senate vote • 2/24/2026

Third Reading Passed

Yes: 45 • No: 0

Actions Timeline

  1. Approved by the Governor - Chapter 373

    5/12/2026

  2. Returned Passed

    4/13/2026Senate

  3. Third Reading Passed (136-0)

    4/13/2026House

  4. Favorable Adopted Second Reading Passed

    4/11/2026House

  5. Favorable Report by Government, Labor, and Elections

    4/11/2026House

  6. Hearing 3/31 at 1:00 p.m.

    3/26/2026House

  7. Referred Government, Labor, and Elections

    2/25/2026House

  8. Third Reading Passed (45-0)

    2/24/2026Senate

  9. Second Reading Passed

    2/20/2026Senate

  10. Favorable Adopted

    2/20/2026Senate

  11. Favorable Report by Budget and Taxation

    2/19/2026Senate

  12. Hearing 1/21 at 10:00 a.m.

    1/15/2026Senate

  13. First Reading Budget and Taxation

    1/14/2026Senate

  14. Pre-filed

    9/30/2025Senate

Bill Text

  • Enacted

    5/12/2026

    PDF

  • Third Reading

    2/20/2026

    PDF

  • First Reading

    1/14/2026

    PDF

Related Bills

Back to State Legislation