Public School System Contracts - Prohibited Provisions

HB 1604 prohibits Maryland public school systems from including 10 specific provisions in contracts, such as requiring schools to pay for others' legal costs without funding, mandating binding arbitration, or limiting liability for negligence. If a contract contains any prohibited term, that term is void and the contract is treated as if it never existed. The law applies only to new contracts signed after July 1, 2026, and does not affect existing contracts or their renewals. This ensures school systems cannot be bound by unfair or legally problematic contract terms.