(a) It is the policy of the State to authorize each county and municipality to displace or limit competition in the area of public transportation to: (1) provide adequate, economical, and efficient transportation services; (2) protect against excessive and inconsistent prices for transportation services; (3) conserve energy and reduce accidents, air pollution, congestion, and traffic hazards through public transportation; (4) encourage its use by contributing capital and operating funds so that transportation may be provided at the lowest cost; and (5) promote the general welfare by providing a comprehensive transportation system. (b) Notwithstanding any anticompetitive effect, a county or municipality may: (1) (i) grant one or more franchises for transportation services on an exclusive or nonexclusive basis; (ii) impose franchise fees; (iii) establish rates applicable to the franchise; and (iv) adopt rules, regulations, and licensing requirements for the operation of the franchise; or (2) operate a public transportation system on an exclusive basis, including: (i) establishing rates for the public transportation system; and (ii) adopting rules and regulations for the operation of (2) operate a public transportation system on an exclusive basis, including: (i) establishing rates for the public transportation system; and (ii) adopting rules and regulations for the operation of the public transportation system.
Maryland Legal Code