2013 Maryland Code
§ 10A-401 - General consideration [Effective July 1, 2013].

MD State Fin & Pro Code § 10A-401 (2013) What's This?

(a) Contents. -- Whenever applicable, a public-private partnership agreement shall include the following provisions:

(1) the method and terms for approval of any assignment, reassignment, or other transfer of interest related to the public-private partnership agreement;

(2) the methods and terms for setting and adjusting tolls, fares, fees, and other charges related to the public infrastructure asset;

(3) the method and terms for revenue-sharing or other sharing in fees or charges, in which the public participates in the financial upside of asset performance of the public infrastructure asset;

(4) minimum quality standards, performance criteria, incentives, and disincentives;

(5) operations and maintenance standards;

(6) the rights for inspection by the State;

(7) the terms and conditions under which the reporting agency may provide services for a fee sufficient to cover both direct and indirect costs;

(8) provisions for oversight and remedies and penalties for default;

(9) the terms and conditions under which the reporting agency originating the public-private partnership shall be responsible for ongoing oversight;

(10) the terms and conditions for audits by the State, including the Office of Legislative Audits, related to the agreement's financial records and performance;

(11) the terms and conditions under which the public infrastructure assets shall be returned to the State at the expiration or termination of the agreement; and

(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 requirements for the payment security for construction contracts shall be in accordance with Title 17, Subtitle 1 of this article, 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.

(b) Provisions regarding compensation for competing infrastructure developments. --

(1) A public-private partnership agreement may include a provision that, except as provided in paragraph (2) of this subsection, compensation may be provided for competing infrastructure developments that directly result in a documented revenue loss for the private entity in a public-private partnership.

(2) Compensation may not be provided as a result of State infrastructure developments already in the State's Capital Improvement Program or Consolidated Transportation Program planning documents at the time the public-private partnership agreement is executed, safety initiatives, infrastructure improvements with minimal capacity increases, or infrastructure for other transportation modes that are not the subject of the public-private partnership.

(c) Noncompetition clause prohibited. -- A public-private partnership agreement may not include a noncompete clause for public-private partnership projects involving road, highway, or bridge assets.

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