MD HB507

Clarifies that State contracts cannot include provisions limiting liability for damage to real property or tangible personal property of the State caused by negligence, intentional misconduct, fraud, recklessness, or other tortious conduct

Specifies that contracts cannot limit the State's ability to recover the cost difference when hiring a replacement contractor to perform services not completed by the original contractor, when combined payments exceed the original contract amount

Prohibited contract provisions are void ab initio (void from the beginning), and contracts containing them remain enforceable as if the void provisions were never included

Exempts contracts related to the purchase, redevelopment, or operation of racing or training facility sites from these restrictions

Effective October 1, 2025; approved by Governor Wes Moore on May 20, 2025