EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0458*
HOUSE BILL 458
P4 CONSTITUTIONAL AMENDMENT 2lr1282
CF 2lr1298
By: Delegate Korman
Introduced and read first time: January 20, 2022
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
State Personnel – Collective Bargaining – Revisions and Budget Bill 2
Appropriations 3
FOR the purpose of altering the collective bargaining process for State employees, including 4
by requiring the selection of a neutral arbitrator to oversee all aspects of collective 5
bargaining, establishing a process of arbitration in the event of impasse, and 6
providing that certain decisions of a neutral arbitrator are binding; altering the 7
matters that are required to be included in collective bargaining; requiring that each 8
budget bill contain the appropriations necessary to implement all terms and 9
conditions of employment in certain memoranda of understanding for the next 10
ensuing fiscal year; and generally relating to collective bargaining for State 11
employees. 12
BY repealing and reenacting, with amendments, 13
Article – State Finance and Procurement 14
Section 7–108 15
Annotated Code of Maryland 16
(2021 Replacement Volume) 17
BY repealing and reenacting, with amendments, 18
Article – State Personnel and Pensions 19
Section 3–103, 3–502, and 3–603 20
Annotated Code of Maryland 21
(2015 Replacement Volume and 2021 Supplement) 22
BY repealing and reenacting, with amendments, 23
Article – State Personnel and Pensions 24
Section 3–501 25
Annotated Code of Maryland 26
(2015 Replacement Volume and 2021 Supplement) 27 2 HOUSE BILL 458
(As enacted by Chapter 1 of the Acts of the General Assembly of the 2021 Special 1
Session) 2
BY adding to 3
Article – State Personnel and Pensions 4
Section 3–503 5
Annotated Code of Maryland 6
(2015 Replacement Volume and 2021 Supplement) 7
BY proposing an amendment to the Maryland Constitution 8
Article III – Legislative Department 9
Section 52 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – State Finance and Procurement 13
7–108. 14
(a) In accordance with the Maryland Constitution and other law, the Governor 15
shall include in each budget bill: 16
(1) an appropriation to pay the principal of and interest on the State debt; 17
(2) without revision, the appropriations requested for public schools, as 18
certified by the State Superintendent of Schools; 19
(3) without revision, the appropriations requested for the Legislative 20
Branch of the State government, as certified by the presiding officers of the General 21
Assembly; 22
(4) without revision, the appropriations requested for the Judicial Branch 23
of the State government, as certified by the Chief Judge of the Court of Appeals; 24
(5) the appropriations requested by the Governor for the Executive Branch 25
of the State government; 26
(6) the appropriations required by law to be included with the 27
appropriations for the Executive Branch; 28
(7) appropriations for the salaries required by law to be paid by the State; 29
and 30
(8) any other appropriations required by the Maryland Constitution or 31
other law to be included in the budget bill. 32
HOUSE BILL 458 3
(b) The Governor shall use the current salary plan of the Secretary of Budget and 1
Management as the basis for the appropriations to pay those salaries to which the plan 2
applies. 3
(C) IN ADDITION TO THE AP PROPRIATIONS REQUIRE D IN SUBSECTION (A) 4
OF THIS SECTION, THE GOVERNOR SHALL INCLUD E IN EACH ANNUAL BUDGET BILL 5
THE APPROPRIATIONS N ECESSARY TO IMPLEMEN T AND FUND ALL TERMS WITHIN 6
EACH MEMORANDUM OF U NDERSTANDING BETWEEN : 7
(1) THE STATE AND THE EXCLUSI VE REPRESENTATIVES O F STATE 8
EMPLOYEES; 9
(2) STATE INSTITUTIONS OF HIGHER EDUCATION AND EACH 10
EXCLUSIVE REPRESENTA TIVE OF THEIR EMPLOY EES; AND 11
(3) THE MARYLAND ENVIRONMENTAL SERVICE AND THE EXCLUSIVE 12
REPRESENTATIVE OF IT S EMPLOYEES. 13
Article – State Personnel and Pensions 14
3–103. 15
This title and any agreement under this title do not limit or otherwise interfere with 16
the powers of the Governor or the Maryland General Assembly [under], EXCEPT TO 17
OPERATE IN ACCORDANCE WITH , AND HAVE THE EFFECT REQUIRED BY, Article III, § 18
52 of the Maryland Constitution. 19
3–501. 20
(a) (1) The following individuals or entities shall designate one or more 21
representatives to participate as a party in collective bargaining on behalf of the State or 22
the following institutions: 23
(i) on behalf of the State, the Governor; 24
(ii) on behalf of the Maryland Environmental Service, the Board of 25
Directors of the Service; 26
(iii) on behalf of the University System of Maryland, the Chancellor; 27
and 28
(iv) on behalf of Morgan State University, St. Mary’s College of 29
Maryland, or Baltimore City Community College, the governing board of the institution. 30
4 HOUSE BILL 458
(2) The exclusive representative shall designate one or more 1
representatives to participate as a party in collective bargaining on behalf of the exclusive 2
representative. 3
(b) (1) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 4
parties shall meet at reasonable times [and] BETWEEN JULY 1 AND SEPTEMBER 30 TO 5
engage in collective bargaining in good faith[, including facilitating the meaningful use of 6
a fact finder under subsection (c)(3) of this section, and] to conclude a written memorandum 7
of understanding or other written understanding as defined under § 3–101(d)(1)(ii) of this 8
title. 9
(2) (I) FOR EACH BARGAINING U NIT, WHENEVER A MEMORANDU M 10
OF UNDERSTANDING IS TO BE NEGOTIATED , REOPENED, OR AMENDED , THE PARTIES 11
SHALL FIRST SELECT A NEUTRAL ARBITRATOR T O SERVE AS A PROCTOR FOR THE 12
NEGOTIATIONS ON OR BEFORE JULY 15. 13
(II) THE ARBITRATOR SHALL BE SELECTED FROM A L IST OF 15 14
ARBITRATORS PROVIDED BY THE AMERICAN ARBITRATION ASSOCIATION’S LABOR 15
ARBITRATION PANEL. 16
(III) THE LIST SHALL CONSIS T OF QUALIFIED, NATIONWIDE 17
ARBITRATORS WHO ARE MEMBERS OF THE NATIONAL ACADEMY OF ARBITRATION. 18
(IV) THE PARTIES SHALL SEL ECT THE ARBITRATOR B Y 19
ALTERNATELY STRIKING NAMES FROM THE LIST UNTIL ONE NAME REMAI NS. 20
(V) THE SELECTED ARBITRATOR MUST BE A BLE AND 21
AVAILABLE TO PERFORM THE DUTIES AND TO HO LD HEARINGS, BOTH IN PERSON 22
AND THROUGH REMOTE C OMMUNICATION , CONSISTENT WITH THIS TITLE. 23
(VI) THE ARBITRATOR SHALL HAVE THE POWERS AND 24
RESPONSIBILITIES UND ER § 3–503 OF THIS SUBTITLE. 25
(VII) THE SELECTED ARBITRAT OR SHALL ACCEPT THE 26
APPOINTMENT BEFORE JULY 15, OR THE PARTIES MAY A GREE TO MAKE AN 27
ALTERNATIVE APPOINTM ENT FROM: 28
1. THE LIST ORIGINALLY PROVIDED BY THE AMERICAN 29
ARBITRATION ASSOCIATION; OR 30
2. A LIST OF NATIONWIDE A RBITRATORS PROVIDED BY 31
THE FEDERAL MEDIATION AND CONCILIATION SERVICE. 32
HOUSE BILL 458 5
(3) THE PARTIES SHALL MAK E A REASONABLE EFFOR T TO BEGIN 1
NEGOTIATIONS ON OR N EAR JULY 1, INCLUDING THE EXCHAN GE OF INFORMATION 2
NECESSARY TO RESPONS IBLY CONDUCT AND CONCLUDE NEGOTIATION S BY 3
SEPTEMBER 30. 4
(c) [(1) The parties shall make every reasonable effort to conclude negotiations 5
in a timely manner for inclusion by the principal unit in its budget request to the Governor. 6
(2) (i) The parties shall conclude negotiations before January 1 for any 7
item requiring an appropriation of funds for the fiscal year that begins on the following 8
July 1. 9
(ii) In the budget bill submitted to the General Assembly, the 10
Governor shall include any amounts in the budgets of the principal units required to 11
accommodate any additional cost resulting from the negotiations, including the actuarial 12
impact of any legislative changes to any of the State pension or retirement systems that 13
are required, as a result of the negotiations, for the fiscal year beginning the following July 14
1 if the legislative changes have been negotiated to become effective in that fiscal year. 15
(3) (i) If the parties do not conclude negotiations for the next fiscal year 16
before October 25, either party may request that a fact finder be employed to resolve the 17
issues. 18
(ii) The fact finder shall be employed no later than November 1. 19
(iii) A fact finder shall be a neutral party appointed by alternate 20
striking from a list by the parties provided: 21
1. by the Federal Mediation and Conciliation Service; or 22
2. under the Labor Arbitration Rules of the American 23
Arbitration Association. 24
(iv) The fact finder: 25
1. may give notice and hold hearings in accordance with the 26
Administrative Procedure Act; 27
2. may administer oaths and take testimony and other 28
evidence; 29
3. may issue subpoenas; and 30
4. before November 20, shall make written recommendations 31
regarding wages, hours, and working conditions, and any other terms or conditions of 32
employment that may be in dispute. 33
6 HOUSE BILL 458
(v) The written recommendations of the fact finder shall be delivered 1
to the Governor, the exclusive representative, the President of the Senate, and the Speaker 2
of the House of Delegates by the Secretary on or before December 1. 3
(d)] (1) A memorandum of understanding [that incorporates all matters of 4
agreement reached by the parties] REACHED BY MUTUAL AG REEMENT shall be executed 5
by the exclusive representative and: 6
(i) for a memorandum of understanding relating to the State, the 7
Governor or the Governor’s designee; 8
(ii) for a memorandum of understanding relating to the Maryland 9
Environmental Service, the Board of Directors of the Service; 10
(iii) for a memorandum of understanding relating to a system 11
institution, the Chancellor or the Chancellor’s designee; and 12
(iv) for a memorandum of understanding relating to Morgan State 13
University, St. Mary’s College of Maryland, or Baltimore City Community College, the 14
governing board of the institution or the governing board’s designee. 15
(2) To the extent [these] matters INCORPORATED IN A ME MORANDUM 16
OF UNDERSTANDING require legislative approval or the appropriation of funds, the 17
matters shall be [recommended] REFERRED to the General Assembly for approval or for 18
the appropriation of funds AS REQUIRED UNDER ARTICLE III, § 52 OF THE MARYLAND 19
CONSTITUTION . 20
(3) To the extent matters involving a State institution of higher education 21
require legislative approval, the legislation shall be [recommended] REFERRED to the 22
Governor [for submission to] AND the General Assembly. 23
[(e)] (D) Negotiations for a memorandum of understanding shall be considered 24
closed sessions under § 3–305 of the General Provisions Article. 25
[(f)] (E) (1) The terms of a memorandum of understanding executed by the 26
Governor or the Governor’s designee and an exclusive representative of a bargaining unit 27
for skilled service or professional service employees in the State Personnel Management 28
System are not applicable to employees of a State institution of higher education. 29
(2) The terms of a memorandum of understanding executed by the 30
Chancellor or the governing board of Morgan State University, St. Mary’s College of 31
Maryland, or Baltimore City Community College, or their respective designees, and the 32
exclusive representative of a bargaining unit for employees of a State institution of higher 33
education are not applicable to skilled service or professional service employees in the State 34
Personnel Management System. 35
HOUSE BILL 458 7
3–502. 1
(a) Collective bargaining shall include all matters relating to: 2
(1) wages, hours, FRINGE BENEFITS , HEALTH BENEFITS , PENSION 3
BENEFITS, and other terms and conditions of employment; and 4
(2) the time and manner of access to a new employee program as required 5
under § 3–307 of this title. 6
(b) [(1) Collective bargaining may include negotiations relating to the right of 7
an employee organization to receive service fees from nonmembers. 8
(2) An employee whose religious beliefs are opposed to joining or financially 9
supporting any collective bargaining organization is: 10
(i) not required to pay a service fee; and 11
(ii) required to pay an amount of money as determined in collective 12
bargaining negotiations, not to exceed any service fee negotiated under paragraph (1) of 13
this subsection, to any charitable organization exempt from taxation under § 501(c)(3) of 14
the Internal Revenue Code and to furnish written proof of the payment to: 15
1. A. the Department; 16
B. in the case of an employee of the Maryland Environmental 17
Service, the Board of Directors of the Service; or 18
C. in the case of an employee of an institution of higher 19
education specified in § 3–102(a)(1)(v) of this title, the President of the institution or the 20
President’s designee; and 21
2. the exclusive representative. 22
(c)] Notwithstanding subsection (a) of this section, the representatives of the 23
State, the Maryland Environmental Service, a system institution, Morgan State 24
University, St. Mary’s College of Maryland, and Baltimore City Community College: 25
(1) [shall] MAY not be required to negotiate over any matter that is 26
inconsistent with applicable law; and 27
(2) may negotiate and reach agreement with regard to any such matter 28
THAT IS INCONSISTENT WITH APPLICABLE LAW only if it is understood that, WITH 29
RESPECT TO THE MATTER, the agreement [with respect to such matter] OR 30
MEMORANDUM OF UNDERS TANDING cannot become effective unless the applicable law 31
is amended by the General Assembly. 32 8 HOUSE BILL 458
3–503. 1
(A) (1) A NEUTRAL ARBITRATOR S ELECTED UNDER § 3–501(B) OF THIS 2
SUBTITLE: 3
(I) SHALL HEAR AND RESOLVE ANY DISPUTE BETWEEN THE 4
PARTIES REGARDING TH E CONDUCT OF NEGOTIA TIONS, INCLUDING WHETHER THE 5
CONDUCT OF A PARTY I S IN GOOD FAITH; 6
(II) MAY RECEIVE FROM THE PARTIES COPIES OF IN FORMATION 7
REQUESTS PRESENTED A ND RESPONSES RECEIVED , TO RESOLVE DISPUTES OVER 8
THE TIMELINESS AND S UFFICIENCY OF INFORM ATION DEMANDS AND PR ODUCTION; 9
(III) MAY ISSUE REMEDIAL O RDERS TO RESOLVE DISPUTES OVER 10
REQUESTS FOR INFORMA TION OR PROMOTE BARG AINING IN GOOD FAITH 11
CONSISTENT WITH THIS TITLE; 12
(IV) UNDER CONDITIONS DETERMINED TO BE APPROPRIATE BY 13
THE NEUTRAL ARBITRAT OR, MAY COMPEL PRODUCTIO N OF ESTIMATES OF 14
REVENUES AND EXPENDI TURES COMPILED BY THE STATE BOARD OF REVENUE 15
ESTIMATES, THE BUREAU OF REVENUE ESTIMATES, OR THE CONSENSUS REVENUE 16
MONITORING AND FORECASTING GROUP; AND 17
(V) MAY: 18
1. CALL AND CONDUCT MEE TINGS AND HEARINGS ; 19
2. DETERMINE WHETHER IT IS APPROPRIATE TO 20
CONDUCT MEETINGS OR HEARINGS IN PERSON , OR VIRTUALLY BY ELEC TRONIC 21
MEANS OF REMOTE COMM UNICATION; 22
3. ISSUE SUBPOENAS TO COMPEL: 23
A. THE PRODUCTION OF DO CUMENTS AND OTHER 24
EVIDENCE; AND 25
B. ATTENDANCE AND TESTI MONY BY WITNESSES ; 26
4. RECEIVE EVIDENCE DIR ECTLY OR BY SWORN 27
DEPOSITION; 28
5. MAKE FINDINGS OF FAC T; 29 HOUSE BILL 458 9
6. REACH AND ISSUE CONCLUSIONS OF LAW O VER ANY 1
DISPUTED NEGOTIATION ISSUE THAT MAY ARISE BETWEEN THE PARTIES ; AND 2
7. ISSUE FINAL, SELF–EXECUTING ORDERS . 3
(2) THE FINAL WRITTEN ORD ER ISSUED BY THE NEU TRAL 4
ARBITRATOR SHALL BE FINAL AND BINDING AN D SELF–EXECUTING ON THE PARTIES 5
AND THE GOVERNOR. 6
(B) (1) IF AN IMPASSE IS DECLAR ED ON OR AFTER OCTOBER 1, 7
ARBITRATION SHALL PR OCEED AS DESCRIBED IN THIS SU BSECTION. 8
(2) (I) ON THE FIFTH BUSINESS DAY AFTER THE IMPASS E IS 9
DECLARED, EACH PARTY SHALL SUB MIT TO THE NEUTRAL A RBITRATOR, IN WRITING 10
AND WITH A COPY TO THE OTHER PA RTY, A LAST, BEST, AND FINAL OFFER , 11
INCLUDING: 12
1. ALL PROVISIONS IN TH E EXISTING MEMORANDU M OF 13
UNDERSTANDING NOT TO BE MODIFIED; 14
2. ALL NEW, AMENDED, OR MODIFIED MEMORANDU M OF 15
UNDERSTANDING PROVIS IONS AGREED TO BY TH E PARTIES BEFORE THE IMPASSE 16
WAS DECLARED THAT ARE TO BE INCLU DED THROUGH WRITTEN MUTUAL 17
AGREEMENT ; AND 18
3. SUBJECT TO SUBPARAGR APH (II) OF THIS 19
PARAGRAPH , DETAILED FURTHER PRO VISIONS THAT A PARTY IS PROP OSING FOR 20
INCLUSION IN A MEMOR ANDUM OF UNDERSTANDI NG. 21
(II) FURTHER PROVISIONS AR E LIMITED TO SPECIFI C 22
PROPOSALS THAT WERE SUBMITTED IN WRITING TO THE OT HER PARTY AND WERE 23
THE SUBJECT OF COLLE CTIVE BARGAINING BET WEEN THE PARTIES UP TO THE TIME 24
OF IMPASSE, INCLUDING PROPOSALS THAT THE PARTIES HAV E DECIDED TO 25
INCLUDE IN THE MEMOR ANDUM OF UNDERSTANDI NG THROUGH WRITTEN M UTUAL 26
AGREEMENT . 27
(3) THE NEUTRAL ARBITRATO R ACTING AS A MEDIAT OR SHALL 28
ATTEMPT TO RESOLVE T HE IMPASSE BEFORE A FORMAL HEARING ON THE IMPAS SE. 29
(4) (I) WITHIN 30 CALENDAR DAYS AFTER A DECLARED IMPASSE , 30
THE NEUTRAL ARBITRAT OR SHALL HOLD A FORMAL HEARING AT WHICH THE 31 10 HOUSE BILL 458
PARTIES MAY SUBMIT , IN WRITING OR ORAL T ESTIMONY, ALL INFORMATION OR 1
DATA SUPPORTING THE FINAL POSITIONS. 2
(II) ABSENT MUTUAL AGREEME NT BETWEEN THE PARTI ES, OR 3
AS OTHERWISE ORDERED BY THE NEUTRAL ARBIT RATOR, THE FORMAL HEARING 4
SHALL CONCLUDE WITHI N 45 CALENDAR DAYS AFTER THE IMPASSE DATE . 5
(5) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 6
PARAGRAPH , THE ARBITRATION SHALL CONCLUDE WITH A WRIT TEN AWARD THAT 7
SUSTAINS IN ITS ENTI RETY THE LAST , BEST, AND FINAL OFFER OF O NE OF THE 8
PARTIES. 9
(II) BEFORE A WRITTEN AWAR D IS ISSUED , BY WRITTEN 10
AGREEMENT SIGNED BY THE REPRESENTATIVES OF THE PARTIES PARTICIPATING IN 11
THE ARBITRATION , THE PARTIES MAY DIRE CT THE NEUTRAL ARBIT RATOR TO RULE 12
ON SPECIFICALLY IDEN TIFIED TOPICS OF BAR GAINING. 13
(6) (I) THE NEUTRAL ARBITRATO R SHALL ISSUE A PREL IMINARY 14
WRITTEN AWARD ON OR BEFORE DECEMBER 5. 15
(II) THE PRELIMINARY WRITTEN AWARD SHALL ADDRESS ALL 16
PROVISIONS THAT EACH PARTY PROPOSED IN IT S RESPECTIVE FINAL P OSITION FOR 17
INCLUSION IN A MEMOR ANDUM OF UNDERSTANDI NG. 18
(III) WITHIN 5 BUSINESS DAYS AFTER RECEIPT OF THE 19
PRELIMINARY WRITTEN AWARD , THE PARTIES SH ALL REVIEW THE AWARD AND MAY 20
SEVERALLY OR MUTUALL Y REQUEST CHANGES OR ADJUSTMENTS IN THE A WARD. 21
(IV) ON OR BEFORE DECEMBER 15, THE NEUTRAL ARBITRAT OR 22
SHALL ISSUE A FINAL WRITTEN AWARD IN WHICH THE ARBITRATOR : 23
1. SHALL ORDER IMPLEMEN TATION OF THE LAST , BEST, 24
AND FINAL OFFER OF E ITHER PARTY IN ITS E NTIRETY, INCORPORATING ANY 25
VOLUNTARILY AGREED T ERMS BETWEEN THE PARTIES ; AND 26
2. INCLUDE: 27
A. ANY VOLUNTARILY AGRE ED TERMS BETWEEN THE 28
PARTIES; AND 29
B. ANY PRIOR TERM, WHICH BY AGREEMENT , IS NOT TO 30
BE CHANGED FOR THE N EXT FISCAL YEAR. 31
HOUSE BILL 458 11
(V) AFTER DECEMBER 15, IF REQUESTED BY EITH ER PARTY, 1
THE NEUTRAL ARBITRAT OR SHALL ISSUE BY JANUARY 20 OF THE IMMEDIATELY 2
FOLLOWING YEAR , A STATEMENT OF REASO NS FOR THE FINAL WRITTEN AWARD . 3
(7) THE NEUTRAL ARBITRATO R SHALL CONSIDER THE FOLLOWING 4
WHEN DEVELOPING A WR ITTEN AWARD: 5
(I) THE LAWFUL AUTHORITY OF THE EMPLOYER , INCLUDING 6
THE OBLIGATION OF TH E EMPLOYER TO USE SP ECIAL FUNDS ONLY FOR 7
AUTHORIZED PURPOSES UNDER LIMITATIONS IM POSED BY FEDERAL OR STATE LAW; 8
(II) STIPULATIONS OF THE PARTIES; 9
(III) THE INTERESTS AND WE LFARE OF THE PUBLIC ; 10
(IV) THE FINANCIAL ABILIT Y OF THE EMPLOYER TO MEET 11
COSTS, WITHOUT THE PREMISE THAT THE EMPLOYER MAY NEE D TO INCREASE OR 12
IMPOSE NEW TAXES , FEES, OR CHARGES , OR DEVELOP OTHER SOU RCES OF 13
REVENUE; 14
(V) THE PRESENT AND FUTU RE GENERAL ECONOMIC 15
CONDITION OF THE STATE OR STATE INSTITUTIONS OF HIGHER EDUCATION ; 16
(VI) COMPARISONS OF WAGES , HOURS, AND CONDITIONS OF 17
EMPLOYMENT OF THE EM PLOYEES INVOLVED WIT H ARBITRATION WITH T HE WAGES, 18
HOURS, AND CONDITIONS OF EM PLOYMENT OF OTHER EM PLOYEES PERFORMING 19
SIMILAR SERVICES IN PUBLIC EMPLOYMENT IN ADJACENT STATES ; 20
(VII) COMPARISONS OF COLLE CTIVE BARGAINING PATTERNS I N 21
OTHER STATES AND AMO NG COUNTY EMPLOYEES IN THE STATE; 22
(VIII) CONSUMER PRICES FOR GOODS AND SERVICES A S DEFINED 23
BY PUBLIC AND PRIVATE S OURCES; 24
(IX) THE OVERALL COMPENSA TION PRESENTLY RECEI VED BY 25
THE EMPLOYEES , INCLUDING DIRECT WAGE COMPENSATION , VACATION, HOLIDAYS, 26
EXCUSED TIME OFF , INSURANCE AND PENSIO NS COSTS, MEDICAL AND 27
HOSPITALIZATION BENE FITS, THE CONTINUITY AND S TABILITY OF EMPLOYME NT, 28
AND ALL OTHER RECEIV ED BENEFITS; 29
(X) CHANGES IN ANY OF TH E FOREGOING CIRCUMST ANCES 30
DURING THE PEND ENCY OF THE ARBITRAT ION; AND 31
12 HOUSE BILL 458
(XI) OTHER FACTORS THAT ARE NORMALLY OR TRAD ITIONALLY 1
TAKEN INTO CONSIDERA TION IN THE DETERMIN ATION OF WAGES , HOURS, AND 2
CONDITIONS OF EMPLOY MENT THROUGH VOLUNTA RY COLLECTIVE BARGAI NING, 3
MEDIATION, ARBITRATIO N, OR OTHERWISE BETWEEN TH E PARTIES IN PUBLIC 4
SERVICE OR PRIVATE E MPLOYMENT . 5
(C) THE DECISION OF THE N EUTRAL ARBITRATOR SH ALL BE FINAL AND 6
BINDING ON THE PARTI ES. 7
(D) THE STATE, A STATE INSTITUTION OF HIGHER EDUCATION , AND THE 8
MARYLAND ENVIRONMENTAL SERVICE AND THE GOVERNOR SHALL TAKE A LL 9
ACTIONS NECESSARY TO CARRY OUT AND EFFECT UATE THE FINAL WRITT EN AWARD 10
AND PLACE INTO EFFEC T THE MEMORANDUM OF UNDERSTANDING . 11
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE PARTIES 12
AT ANY TIME MAY AMEND OR MODIFY THE FINAL WRITTEN AW ARD, AND BY CONSENT , 13
THE AMENDMENTS OR MODIFI CATIONS SHALL BE APP ROVED BY THE PARTIES AND 14
PLACED IN A SUPPLEME NTAL WRITTEN AWARD B Y THE NEUTRAL ARBITR ATOR THAT 15
SHALL BE FINAL AND B INDING. 16
(2) A SUPPLEMENTAL WRITT EN AWARD UNDER PARAG RAPH (1) OF 17
THIS SUBSECTION SHAL L TAKE EFFECT ON THE DATE OF THE ORDER OF THE 18
NEUTRAL ARBITRATOR A ND MAY NOT REQUIRE RATI FICATION UNDER § 3–601 OF 19
THIS TITLE. 20
(F) A DEADLINE IN THIS SEC TION MAY BE MODIFIED , BASED ON GOOD 21
CAUSE, BY MUTUAL AGREEMENT OF THE PARTIES OR BY ORDER OF THE NEUTRAL 22
ARBITRATOR. 23
(G) (1) THE COSTS OF THE SERVICES OF T HE NEUTRAL ARBITRATO R 24
SHALL BE SHARED EQUA LLY BY THE PARTIES . 25
(2) ALL OTHER COSTS INCURRED BY EITHER P ARTY TO COMPLY WITH 26
THIS SECTION SHALL BE THE RESPONS IBILITY OF THE PARTY INCURRING THE 27
COSTS. 28
3–603. 29
(a) A memorandum of understanding [agreed to and ratified under § 3–601 of this 30
subtitle] may not expire until it is succeeded by a memorandum of understanding that is 31
agreed to and ratified OR ADOPTED BY ARBITR ATION under this title. 32
HOUSE BILL 458 13
(b) Notwithstanding § 3–601(b) of this subtitle, all terms of a memorandum of 1
understanding shall continue in force and effect without change until a successor 2
memorandum of understanding is agreed to and ratified. 3
(c) (1) Based on a verified complaint by an exclusive representative, the 4
exclusive representative may file an action in a circuit court against the State, the 5
Maryland Environmental Service, a system institution, Morgan State University, St. 6
Mary’s College of Maryland, or Baltimore City Community College to enforce the terms of 7
this section. 8
(2) On receipt of an action submitted by the exclusive representative, the 9
court shall issue a status quo order without a finding of irreparable harm to maintain a 10
memorandum of understanding and the terms in effect pending a final order in the action. 11
SECTION 2. AND BE IT FURTHER ENACTED, (Three–fifths of all the members 12
elected to each of the two Houses concurring), That it be proposed that the Maryland 13
Constitution read as follows: 14
Article III – Legislative Department 15
52. 16
(1) The General Assembly shall not appropriate any money out of the Treasury 17
except in accordance with the provisions of this section. 18
(2) Every appropriation bill shall be either a Budget Bill, or a Supplementary 19
Appropriation Bill, as hereinafter provided. 20
(3) On the third Wednesday in January in each year, (except in the case of a newly 21
elected Governor, and then not later than ten days after the convening of the General 22
Assembly), unless such time shall be extended by the General Assembly, the Governor shall 23
submit to the General Assembly a Budget for the next ensuing fiscal year. Each Budget 24
shall contain a complete plan of proposed expenditures and estimated revenues for said 25
fiscal year and shall show the estimated surplus or deficit of revenues at the end of the 26
preceding fiscal year. EACH BUDGET SHALL ALSO CON TAIN THE APPROPRIATI ONS 27
NECESSARY TO IMPLEME NT ALL TERMS AND CONDITIONS OF EM PLOYMENT IN EACH 28
MEMORAND UM OF UNDERSTANDING CONCLUDED WITH THE STATE, WHETHER 29
REACHED THROUGH MUTUAL AGREEMENT OR ARBITRATION THAT IS BINDING ON 30
THE PARTIES, THE GOVERNOR, STATE INSTITUT IONS OF HIGHER EDUCA TION, AND 31
THE MARYLAND ENVIRONMENTAL SERVICE, FOR THE NEXT ENSUING FISCAL YEAR 32
FOR STATE EMPLOYEES IN TH E VARIOUS BRANCHES AND DEPARTMENTS OF STATE 33
GOVERNMENT , INCLUDING HIGHER EDU CATION. Accompanying each Budget shall be 34
a statement showing: (a) the revenues and expenditures for the preceding fiscal year; (b) 35
the current assets, liabilities, reserves and surplus or deficit of the State; (c) the debts and 36
funds of the State; (d) an estimate of the State’s financial condition as of the beginning and 37
end of the preceding fiscal year; (e) CHANGES IN WAGES , HOURS, FRINGE BENEFITS, 38 14 HOUSE BILL 458
HEALTH BENEFITS , PENSION BENEFITS , AND OTHER TERMS AND CONDITIONS OF 1
EMPLOYMENT FOR STATE EMPLOYEES INCLU DED IN EACH MEMORAND UM OF 2
UNDERSTANDING COVERI NG STATE EMPLOYEES FOR T HE NEXT ENSUING FISCAL 3
YEAR; AND (F) any explanation the Governor may desire to make as to the important 4
features of the Budget and any suggestions as to methods for reduction or increase of the 5
State’s revenue. 6
(4) Each Budget shall embrace an estimate of all appropriations in such form and 7
detail as the Governor shall determine or as may be prescribed by law, as follows: (a) for 8
the General Assembly as certified to the Governor in the manner hereinafter provided; (b) 9
for the Executive Department; (c) for the Judiciary Department, as provided by law, as 10
certified to the Governor; (d) to pay and discharge the principal and interest of the debt of 11
the State in conformity with Section 34 of Article III of the Constitution, and all laws 12
enacted in pursuance thereof; (e) for the salaries AND FRINGE BENEFITS payable by the 13
State and under the Constitution and laws of the State, INCLUDING THOSE SALA RIES 14
AND BENEFITS COMMITT ED UNDER EACH MEMORA NDUM OF UNDERSTANDIN G 15
COVERING STATE EMPLOYEES ; (f) for the establishment and maintenance throughout 16
the State of a thorough and efficient system of public schools in conformity with Article 8 17
of the Constitution and with the laws of the State; and (g) for such other purposes as are 18
set forth in the Constitution or laws of the State. 19
(5) The Governor shall deliver to the presiding officer of each House the Budget 20
and a bill for all the proposed appropriations of the Budget classified and in such form and 21
detail as he shall determine or as may be prescribed by law; and the presiding officer of 22
each House shall promptly cause said bill to be introduced therein, and such bill shall be 23
known as the “Budget Bill.” The Governor may, with the consent of the General Assembly, 24
before final action thereon by the General Assembly, amend or supplement said Budget to 25
correct an oversight, provide funds contingent on passage of pending legislation or, in case 26
of an emergency, by delivering such an amendment or supplement to the presiding officers 27
of both Houses; and such amendment or supplement shall thereby become a part of said 28
Budget Bill as an addition to the items of said bill or as a modification of or a substitute for 29
any item of said bill such amendment or supplement may affect. 30
(5a) The Budget and the Budget Bill as submitted by the Governor to the General 31
Assembly shall have a figure for the total of all proposed appropriations and a figure for 32
the total of all estimated revenues available to pay the appropriations, and the figure for 33
total proposed appropriations shall not exceed the figure for total estimated revenues. 34
Neither the Governor in submitting an amendment or supplement to the Budget Bill nor 35
the General Assembly in amending the Budget Bill shall thereby cause the figure for total 36
proposed appropriations to exceed the figure for total estimated revenues, including any 37
revisions, and in the Budget Bill as enacted the figure for total estimated revenues always 38
shall be equal to or exceed the figure for total appropriations. 39
(6) The General Assembly shall not amend the Budget Bill so as to affect either 40
the obligations of the State under Section 34 of Article III of the Constitution, or the 41
provisions made by the laws of the State for the establishment and maintenance of a system 42 HOUSE BILL 458 15
of public schools or the payment of any salaries required to be paid by the State of Maryland 1
by the Constitution. 2
(6a) In enacting a balanced Budget Bill each fiscal year as required under this 3
Section, the General Assembly may amend the bill by increasing or diminishing the items 4
therein relating to the General Assembly, and by increasing or diminishing the items 5
therein relating to the judiciary, but except as hereinbefore specified, may not alter the bill 6
except to strike out or reduce items therein, provided, however, that the salary or 7
compensation of any public officer may not be decreased during the public officer’s term of 8
office. When passed by both Houses, the Budget Bill shall be presented to the Governor for 9
approval or disapproval according to Section 17 of Article II of this Constitution. 10
(6b) In enacting a balanced Budget Bill as required under this Section for fiscal 11
year 2024 and each fiscal year thereafter, the General Assembly may amend the bill by 12
increasing, diminishing, or adding items therein relating to the General Assembly, by 13
increasing, diminishing, or adding items therein relating to the judiciary, and by 14
increasing, diminishing, or adding items relating to the Executive Department, provided 15
that the total of the appropriation for the Executive Department approved by the General 16
Assembly does not exceed the total proposed appropriation for the Executive Department 17
submitted by the Governor. The salary or compensation of any public officer may not be 18
decreased during the public officer’s term of office. When passed by both Houses, the Budget 19
Bill shall be a law immediately without further action by the Governor. 20
(7) The Governor and such representatives of the executive departments, boards, 21
officers and commissions of the State expending or applying for State’s moneys, as have 22
been designated by the Governor for this purpose, shall have the right, and when requested 23
by either House of the General Assembly, it shall be their duty to appear and be heard with 24
respect to any Budget Bill during the consideration thereof, and to answer inquiries relative 25
thereto. 26
(8) Supplementary Appropriation Bill. Either House may consider other 27
appropriations but both Houses shall not finally act upon such appropriations until after 28
the Budget Bill has been finally acted upon by both Houses, and no such other 29
appropriation shall be valid except in accordance with the provisions following: (a) Every 30
such appropriation shall be embodied in a separate bill limited to some single work, object 31
or purpose therein stated and called herein a Supplementary Appropriation Bill; (b) Each 32
Supplementary Appropriation Bill shall provide the revenue necessary to pay the 33
appropriation thereby made by a tax, direct or indirect, to be levied and collected as shall 34
be directed in said bill; (c) No Supplementary Appropriation Bill shall become a law unless 35
it be passed in each House by a vote of a majority of the whole number of the members 36
elected, and the yeas and nays recorded on its final passage; (d) Each Supplementary 37
Appropriation Bill shall be presented to the Governor of the State as provided in Section 38
17 of Article 2 of the Constitution and thereafter all the provisions of said section shall 39
apply. 40
(9) Nothing in this section shall be construed as preventing the General Assembly 41
from passing at any time, in accordance with the provisions of Section 28 of Article 3 of the 42 16 HOUSE BILL 458
Constitution and subject to the Governor’s power of approval as provided in Section 17 of 1
Article 2 of the Constitution, an appropriation bill to provide for the payment of any 2
obligation of the State within the protection of Section 10 of Article 1 of the Constitution of 3
the United States. 4
(10) If the Budget Bill shall not have been finally acted upon by the Legislature 5
seven days before the expiration of the regular session, the Governor shall issue a 6
proclamation extending the session for some further period as may, in his judgment, be 7
necessary for the passage of such bill; but no matter other than such bill shall be considered 8
during such extended session except a provision for the cost thereof. 9
(11) For the purpose of making up the Budget, the Governor shall require from the 10
proper State officials (including all executive departments, all executive and administrative 11
offices, bureaus, boards, commissions and agencies that expend or supervise the 12
expenditure of, and all institutions applying, for State moneys and appropriations) such 13
itemized estimates and other information, in such form and at such times as directed by 14
the Governor. An estimate for a program required to be funded by a law which will be in 15
effect during the fiscal year covered by the Budget and which was enacted before July 1 of 16
the fiscal year prior to that date shall provide a level of funding not less than that prescribed 17
in the law. The estimates for the Legislative Department, certified by the presiding officer 18
of each House, of the Judiciary, as provided by law, certified by the Chief Judge of the Court 19
of Appeals, and for the public schools, as provided by law, shall be transmitted to the 20
Governor, in such form and at such times as directed by the Governor, and shall be included 21
in the Budget without revision. 22
(12) The Governor may provide for public hearings on all estimates and may 23
require the attendance at such hearings of representatives of all agencies, and for all 24
institutions applying for State moneys. After such public hearings he may, in his discretion, 25
revise all estimates except those for the legislative and judiciary departments, and for the 26
public schools, as provided by law, and except that he may not reduce an estimate for a 27
program below a level of funding prescribed by a law which will be in effect during the fiscal 28
year covered by the Budget, and which was enacted before July 1 of the fiscal year prior 29
thereto. 30
(13) The General Assembly may, from time to time, enact such laws not 31
inconsistent with this section, as may be necessary and proper to carry out its provisions. 32
(14) In the event of any inconsistency between any of the provisions of this Section 33
and any of the other provisions of the Constitution, the provisions of this Section shall 34
prevail. But nothing herein shall in any manner affect the provisions of Section 34 of Article 35
3 of the Constitution or of any laws heretofore or hereafter passed in pursuance thereof, or 36
be construed as preventing the Governor from calling extraordinary sessions of the General 37
Assembly, as provided by Section 16 of Article 2, or as preventing the General Assembly at 38
such ertraordinary [extraordinary] sessions from considering any emergency appropriation 39
or appropriations. 40
(15) If any item of any appropriation bill passed under the provisions of this 41 HOUSE BILL 458 17
Section shall be held invalid upon any ground, such invalidity shall not affect the legality 1
of the bill or of any other item of such bill or bills. 2
SECTION 3. AND BE IT FURTHER ENACTED, That the General Assembly 3
determines that the amendment to the Maryland Constitution proposed by Section 2 of this 4
Act affects multiple jurisdictions and that the provisions of Article XIV, § 1 of the Maryland 5
Constitution concerning local approval of constitutional amendments do not apply. 6
SECTION 4. AND BE IT FURTHER ENACTED, That : 7
(a) The amendment to the Maryland Constitution proposed by Section 2 of this 8
Act shall be submitted to the qualified voters of the State at the next general election to be 9
held in November 2022 for adoption or rejection pursuant to Article XIV of the Maryland 10
Constitution. 11
(b) (1) At that general election, the vote on the proposed amendment to the 12
Constitution shall be by ballot, and on each ballot there shall be printed the words “For the 13
Constitutional Amendment” and “Against the Constitutional Amendment”, as now 14
provided by law. 15
(2) At that general election, a question substantially similar to the 16
following shall be submitted to the qualified voters of the State: 17
“Question ___ – Constitutional Amendment 18
Providing that each budget shall include expenditures necessary to implement wages, 19
hours, fringe benefits, pension benefits, health benefits, and other terms and conditions of 20
employment for State employees concluded in each memorandum of understa nding 21
covering State employees.” 22
(c) Immediately after the election, all returns shall be made to the Governor of 23
the vote for and against the proposed amendment, as directed by Article XIV of the 24
Maryland Constitution, and further proceedings had in accordance with Article XIV. 25
SECTION 5. AND BE IT FURTHER ENACTED, That , except as provided in Section 26
4 of this Act, this Act shall take effect July 1, 2022. 27