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Bill

SB 453

State Contracts - Prohibited Provisions

2025 Regular Session

Maryland prohibits state contracts from containing provisions deemed restrictive to government operations, protecting taxpayer interests and state negotiating power in vendor agreements.

Approved by the Governor - Chapter 723
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Bill Summary · SB 453

Legislative bill overview

SB 453 prohibits Maryland state contracts from containing certain provisions that the state considers unfavorable or restrictive. The bill restricts clauses that would limit the state's rights, impose excessive costs, or create problematic obligations when the state enters into agreements with vendors and service providers.

Why is this important

State procurement practices directly affect taxpayer costs and government efficiency. By limiting restrictive contract provisions, Maryland aims to protect public interests and ensure the state negotiates from a position that serves citizens' needs without unnecessary financial or legal burdens.

Potential points of contention

  • Business impact: Vendors may argue the restrictions reduce their ability to protect intellectual property, limit liability exposure, or manage their own operational risks
  • Scope clarity: Depending on implementation, "prohibited provisions" may be ambiguous and create disputes about which contract terms actually violate the law
  • Competitive effects: Stricter terms may discourage some businesses from bidding on state contracts, potentially reducing competition and innovation in procurement

Compiled from official sources — confirm details with the bill’s official record.

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