Maryland bars public schools from accepting certain contract terms

Maryland law bars public school systems from agreeing to listed contract terms. The rules cover agreements entered into by a public school system. They bar terms involving unappropriated indemnity payments, binding out-of-court dispute processes, out-of-state venues, limits on certain liability or legal counsel choices, unknown or one-sided terms, unauthorized electronic acceptance, conflicts with specified state duties, spending without an appropriation, automatic renewals that require future funding, and limits on recovery The restrictions do not apply when state or federal law requires a term. The restrictions do not apply to the listed collective bargaining agreements. The law takes effect July 1, 2026, and applies only to contracts entered into on or after that date. It does not apply to earlier contracts or their renewals or extensions.

A prohibited contract term is void, and the rest of the contract remains enforceable as if that term were absent. This applies to a public school system contract containing a term barred by the law. A contract containing a prohibited term is governed by and interpreted under state law, despite any contrary contract term. This rule applies to contracts entered into on or after July 1, 2026, and does not apply to earlier contracts or their renewals or extensions.