MD SB646

Prohibits public school system contracts from requiring indemnification, defense, or hold harmless obligations without appropriated funds for that purpose

Bans binding arbitration clauses and requirements that disputes be resolved outside Maryland courts

Prohibits liability caps for direct losses from bodily injury, death, or property damage caused by contractor negligence or misconduct

Bars contract terms that are unknown at signing, can be unilaterally changed, automatic renewal clauses that obligate future funding, or terms accepted by employees without authority

Prohibited provisions are void ab initio while the remainder of the contract remains enforceable; applies only to contracts executed on or after July 1, 2026