Key Finding #9: Maryland does not have adequate legislation to pursue public-private partnerships for highway projects.

While Maryland is one of 21 states with PPP legislation, its statutory framework is not specific enough for both the private and public sector to enter into PPP agreements for highway projects. Maryland has delegated its Transportation Authority (MDTA) the power to facilitate a PPP program. In 1997, Maryland established regulations (TP3 Guidelines) that allow MDTA to administer a PPP program on behalf of the Department of Transportation. However, the TP3 Guidelines specifically state that MDTA's PPP program "is not designed to consider or evaluate highway facilities." To date, MDTA has entered into numerous PPP agreements for non-highway transportation projects. A 1996 state's attorney general opinion said MDTA has sufficient authority to enter into a PPP agreement for highways, but no such agreements have yet to take place.

According to one of the nation's leading legal experts in PPP legislation, the Maryland attorney general's opinion is extremely limited and does not have sufficient explanation. Under the current regulations, the General Assembly has little input on determining the scope of PPP projects outside the 45 days that current law allows them to review and comment. Thus, it does not give comfort to potential private investors and government officials who seek certainty when entering into such enormous financial deals involving high levels of risk. Rather, in this expert's opinion, comprehensive legislation would provide detailed guidelines and document specific procedures that would have to take place in constructing a PPP agreement. Even one of Fluor's leading managers stated that the private sector is unlikely to venture into any PPP agreement with Maryland unless there is certainty provided by robust legislation. States such as Virginia, Texas, Indiana, and California all have comprehensive statutory frameworks for PPP agreements. In turn, these states have all experienced success with highway PPPs. Further corroborating these statements, in December 2006 the Maryland Department of Legislative Services issued a report on public-private partnerships that emphasized how Maryland's General Assembly has extremely limited oversight for PPP projects because of its weak statutory framework.