Toll road projects using a public-private partnership often have non-compete clauses that protect the private partner if nearby projects impact profits. Maryland wants to exempt transit from those clauses.
"The Maryland General Assembly passed a bill this week that will free state-funded transit projects from the threat of non-compete clauses in state contracts with private toll lane operators," reports Sean Emerson.
According to Emerson, the bill represents a win for public transit investments, because "Maryland can invest in transit improvements adjacent to potential toll lanes without having to pay off a private toll operator for the privilege."
And there are toll lane projects ongoing in Maryland, where "the Hogan administration has proposed an extensive P3 to construct express toll lanes on I-270 and the Capital Beltway which will in all likelihood include such a clause," according to Emerson. The plan does not include any transit, but the "state has long planned to upgrade MARC rail service, especially the Brunswick Line between Frederick and DC, and this bill guarantees that the state will not need to compensate a private toll lanes operator for lost revenue should the state implement those MARC service enhancements."
FULL STORY: Maryland passes a bill to protect transit from non-compete clauses
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