State Contracts - Prohibited Provisions

SB 453 clarifies and strengthens prohibitions on specific contract terms in Maryland state contracts, directly affecting state agencies and contractors entering into agreements with the government. The bill bans provisions that would limit the state’s liability for damage to its property (like buildings or equipment), require binding arbitration, name specific courts for disputes, or automatically renew contracts without future funding. If a contract includes any prohibited term, that term is void and the contract is enforced as if the term never existed. The law applies to all state contracts except those related to racing facilities and takes effect October 1, 2025.