Maryland General Assembly Fails to Pass P3 Reform Despite $250 Million P3 Fiasco
On the last day of the Maryland General Assembly, Senate Budget and Taxation Committee Chair Guy Guzzone (D-Howard) and Vice Chair Jim Rosapepe (D-Prince George’s) made one last effort to push a House bill (HB 485) through the Committee to reform the process for establishing future public-private partnerships (P3s).
That effort fell short in large part due to opposition from Sen. Nancy King (D-Montgomery) of Gaithersburg and a coalition of industry groups. The sponsor of the House bill, Del. Jared Solomon (D-Montgomery) expressed frustration that the experience with the Purple Line P3 had not moved the Senate to act on the reform proposal. The need to reform the P3 process has become more evident with the challenges related to the Purple Line. The withdrawal of the construction contractor, the $250 million in added costs and the lengthy delays make clear that the existing P3 process does not protect the State and its taxpayers from the substantial risks inherent in public-private partnerships.
After being severely weakened in the House, the MDOT Promises Act (HB 67) was also blocked in the Senate Budget and Taxation Committee. This bill was sponsored by Del. Marc Korman (D-Montgomery) and would have required the Maryland Department of Transportation to fulfill the promises it has made about the I-495/I-270 project. The promises included a pledge that the added lanes would have no cost to taxpayers and that no contracts would be signed with the developer before the environmental review is completed. In a letter to legislators, MDOT objected to the bill, including a provision that would have prohibited subsidies to the developer.
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