On April 9, 2013, Governor Martin O’Malley signed a bill (HB560) that modifies the law concerning Public-Private Partnerships (P3s). Below are some key features of the legislation:
- Disputes that arise out of P3s will remain outside the jurisdiction of the Maryland State Board of Contract Appeals (“MSBCA”). In other words, protest-like actions and claims that arise out of P3 procurements will continue to go to court, not the MSBCA;
- Certain components of Maryland’s General Procurement Law will now apply to P3s. For example, the provisions dealing with Prevailing Wage (Title 17, Subtitle 2 of the State Finance and Procurement Article), Living Wage (Title 18), and Security for Construction Contracts (Title 17, Subtitle 1) will apply to P3s;
- A P3 agreement may not exceed 50 years unless the Board of Public Works (“BPW”) provides authorization;
- The BPW may not approve a P3 unless the procuring agency “establishes appropriate minority business enterprise participation goals and procedures” for the P3 project;
- The requirements of the legislation do not apply to the University System, St. Mary’s College of Maryland, Morgan State University, or Baltimore City Community College where no State Funds are used to fund or finance any portion of a capital project;
- The law, which takes effect on July 1, 2013, is intended to be prospective only and will apply only to P3s entered on or after July 1, 2013.