State Survey of P3 Authorizing Statutes: Maryland

Md. Code Ann., State Fin. & Proc. § 10A‐101 to 404

Summary

The law authorizes state agencies to enter into a P3 for public infrastructure projects. The law also creates P3 opportunities under the Minority Business Enterprise Program applicable to public-private partnerships.

The law provides that the comprehensive agreement must contain requirements for the private entity to provide performance and payment security in a form and in an amount determined by the responsible public entity. The requirements for the payment security for construction contracts shall be in accordance with Title 17, Subtitle 1 of the State Finance and Procurement Code, including the requirement that payment security shall be established on the value of the construction elements of the public‐private partnership agreement and not on the total value of the public‐private partnership agreement.

Excerpt:

“§ 10A‐401 (a) Whenever applicable, a public‐private partnership agreement shall include the following provisions:

(12) requirements for the private entity to provide performance 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 for 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.”

MD. Education Sec. 5-314

Summary

Authorizes a county board of education to contract with a county in a public-private partnership agreement.

Excerpt:

No excerpt relating to performance and payment bonds and no reference to MD’s LMA.

Md. Code Ann., State Fin. & Proc. §§ 4-126.1 and 5-101(f)(1)

Summary

The law requires the P3 agreement for Prince George’s County school construction projects to be reviewed by the Maryland Stadium Authority and approved by the Interagency Commission on School Construction. The new law also establishes a P3 Fund to fund the availability payments for the project.

No surety bond language.