WES MOORE, Governor Ch. 92 – 1 – Chapter 92 (House Bill 764) AN ACT concerning Montgomery County Housing Opportunities Commission – Collective Bargaining Agreement Implementation – Impasse Arbitration MC 10–23 FOR the purpose of altering the terms and conditions of a certain final offer that the Executive Director of the Housing Opportunities Commission of Montgomery County is required to submit to the Montgomery Commission; authorizing the parties to a collective bargaining agreement for employees of the Housing Opportunities Commission of Montgomery County Montgomery Commission to request the services of a mediator–arbitrator during a term of a collective bargaining agreement under certain circumstances; establishing the process for mediation–arbitration; requiring the parties to share equally the costs of the mediator–arbitrator’s services; and generally relating to collective bargaining for employees of the Housing Opportunities Commission of Montgomery County. BY repealing and reenacting, with amendments, Article – Housing and Community Development Section 16–310 Annotated Code of Maryland (2019 Replacement Volume and 2022 Supplement) BY adding to Article – Housing and Community Development Section 16–310.1 Annotated Code of Maryland (2019 Replacement Volume and 2022 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Housing and Community Development 16–310. (a) (1) If the parties have not reached an agreement on or before December 1 on a collective bargaining agreement that would become effective the following July 1, the parties shall jointly appoint a mediator–arbitrator panel. (2) If the parties are unable to agree on a jointly appointed mediator–arbitrator as required under § 16–311 of this subtitle, the labor relations Ch. 92 2023 LAWS OF MARYLAND – 2 – administrator shall name the jointly appointed mediator–arbitrator on or before December 7. (3) Notwithstanding appointment of the mediator–arbitrator panel, this subsection does not require beginning mediation–arbitration before the date set forth in subsection (b)(2) of this section. (b) (1) During the collective bargaining: (i) either party may declare an impasse and request the services of the mediator–arbitrator panel; or (ii) the parties may jointly request the services of a mediator–arbitrator panel before an impasse is declared. (2) If the mediator–arbitrator panel finds in the discretion of the panel that the parties are at a bona fide impasse, or on February 1, if they still have not agreed on a contract, whichever happens first, the mediator–arbitrator panel shall require the parties to submit: (i) a joint memorandum listing all items to which the parties have previously agreed; and (ii) a separate memorandum of the party’s last final offer presented in negotiations on all items to which the parties have not previously agreed. (c) (1) On or before February 10, if the parties have not agreed on a contract, the mediator–arbitrator panel shall hold a nonpublic hearing on the parties’ proposals at a time, date, and place chosen by the mediator–arbitrator panel. (2) Each party shall submit evidence or make oral and written argument in support of the party’s last final offer. (3) The mediator–arbitrator panel may not open the hearing to a person who is not a party to the mediation–arbitration. (d) (1) On or before February 15, the mediator–arbitrator panel shall issue a report choosing the final offer that the mediator–arbitrator panel determines to be more reasonable when viewed as a whole. (2) Subject to paragraph (3) of this subsection, in determining the more reasonable offer, the mediator–arbitrator panel may consider only: (i) past collective bargaining contracts between the parties, including the bargaining history that led to the agreement or the precollective bargaining history of employee wages, hours, benefits, and other working conditions; WES MOORE, Governor Ch. 92 – 3 – (ii) a comparison of wages, hours, benefits, and conditions of employment of similar employees of other public employers in the Washington Metropolitan Area and in the State; (iii) a comparison of wages, hours, benefits, and conditions of employment of similar employees of private employers in Montgomery County; (iv) the public interest and welfare; (v) the ability of the employer to finance any economic adjustments required under the proposed agreement; (vi) the effects of any economic adjustments on the standard of public services normally provided by the employer; and (vii) the annual increase or decrease in consumer prices for all items as shown in the most recent Consumer Price Index – Wage Earners and Clerical Workers (“CPI–W”) for the Washington Metropolitan Area. (3) In considering the terms and conditions of the final offer regarding wages, the mediator–arbitrator panel shall first consider and give the highest priority to the ability of the Montgomery Commission to pay for additional short–term and long–term expenses by considering: (i) the limits on the ability of the Montgomery Commission to raise revenue; (ii) the added burden raising revenue would have on customers of the Montgomery Commission; and (iii) the ability of the Montgomery Commission to continue providing the current level of service to its customers. (4) In determining the more reasonable offer, the mediator–arbitrator panel shall consider that all items on which the parties agreed before the mediation–arbitration are integrated with each offer. (5) The mediator–arbitrator panel may not receive or consider the history of collective bargaining relating to the immediate dispute, including any offers of settlement not contained in the offer submitted to the mediator–arbitrator panel. (e) The mediator–arbitrator panel may not compromise or alter the final offer that the mediator–arbitrator panel chooses. Ch. 92 2023 LAWS OF MARYLAND – 4 – (f) (1) Subject to paragraphs (2) and (5) of this subsection and without ratification by the parties, the offer that the mediator–arbitrator panel chooses as integrated with the items on which the parties previously agreed is the final agreement between the Montgomery Commission and the exclusive representative. (2) The economic provisions of the final agreement are subject to funding by the Montgomery Commission. (3) Except as provided in paragraph (5) of this subsection, the Montgomery Commission shall appropriate money in the Montgomery Commission’s final budget for all economic provisions of the final agreement. (4) The parties shall execute an agreement that incorporates the final agreement, including arbitration awards and all issues agreed to under this section. (5) (i) On or before April 1 or a later date determined by mutual agreement of the parties due to extenuating circumstances, the Executive Director of the Montgomery Commission shall submit to the Montgomery Commission any term or condition of the final offer [regarding wages] that requires: 1. an appropriation of funds OR THAT MAY RESULT I N A PRESENT OR FUTURE FI SCAL IMPACT ON THE MONTGOMERY COMMISSION OR ITS CUSTOMERS ; or [2. the adoption of a regulation that may result in a present or future fiscal impact on the Montgomery Commission or its customers.] 2. ACTION BY THE MONTGOMERY COMMISSION TO IMPLEMENT THE COLLEC TIVE BARGAINING AGRE EMENT. (ii) The Montgomery Commission may accept or reject all or part of any term or condition that the Executive Director is required to submit under subparagraph (i) of this paragraph. (g) The Montgomery Commission and the employee organization shall share the costs of the mediator–arbitrator panel’s services equally. 16–310.1. (A) DURING THE TERM OF A COLLECTIVE BARGAINING AG REEMENT: (1) EITHER PARTY MAY DEC LARE AN IMPASSE AND REQUEST THE SERVICES OF A MEDIAT OR–ARBITRATOR; AND WES MOORE, Governor Ch. 92 – 5 – (2) THE PARTIES JOINTLY MAY REQUEST THE SERV ICES OF A MEDIATOR–ARBITRATOR AT ANY TI ME WITHOUT DECLARING AN IMPASSE. (B) (1) IF THE SERVICES OF A MEDIATOR–ARBITRATOR ARE REQUE STED, THE PARTIES JOINTLY SHALL APPOINT A MEDI ATOR–ARBITRATOR. (2) IF THE PARTIES ARE UN ABLE TO AGREE ON A J OINTLY APPOINTED MEDIATOR–ARBITRATOR AS REQUIR ED UNDER § 16–311 OF THIS SUBTITLE , THE LABOR REL ATIONS ADMINISTRATOR SHALL NAME THE JOINT LY APPOINTED MEDIATOR–ARBITRATOR WITHIN 7 DAYS AFTER THE SERVI CES OF A MEDIATOR–ARBITRATOR WERE REQU ESTED. (C) IF THE MEDIATOR –ARBITRATOR FINDS IN THE DISCRETION OF TH E MEDIATOR–ARBITRATOR THAT THE PARTIES ARE IN A BON A FIDE IMPASSE , THE MEDIATOR–ARBITRATOR SHALL REQ UIRE EACH PARTY TO S UBMIT A SEPARATE MEMORANDUM OF THE PA RTY’S LAST FINAL OFFER P RESENTED IN NEGOTI ATIONS ON ITEMS WITH REGARD TO WHICH THE PARTIES ARE IN DISPUTE. (D) (1) WITHIN 10 DAYS AFTER THE SUBMI SSION OF THE MEMORAN DUM REQUIRED UNDER SUBSE CTION (C) OF THIS SECTION, THE MEDIATOR –ARBITRATOR SHALL HOLD A NONPUBL IC HEARING ON THE PA RTIES’ OFFERS AT A TIME, DATE, AND PLACE CHOSEN BY THE MEDIATOR –ARBITRATOR. (2) EACH PARTY SHALL SUBM IT EVIDENCE OR MAKE ORAL AND WRITTEN ARGUMENT IN SUPPORT OF THE PARTY ’S LAST FINAL OFFER . (3) THE MEDIATOR –ARBITRATOR MAY NOT O PEN THE HEARING TO A PERSON WHO IS NOT A PARTY TO THE MEDIA TION–ARBITRATION. (E) (1) WITHIN 5 DAYS AFTER THE HEARI NG REQUIRED UNDER SUBSECTION (D)(1) OF THIS SECTION, THE MEDIATOR –ARBITRATOR SHALL ISS UE A REPORT CHOOSING THE FINAL OFFER THAT THE MEDIATOR–ARBITRATOR DETERMINES TO BE MOR E REASONABLE WHEN VIEWED A S A WHOLE. (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , IN DETERMINING THE MORE REASONABLE OFFER , THE MEDIATOR –ARBITRATOR MAY CONSIDER ONLY : (I) PAST COLLECTIVE BARG AINING CONTRACTS BET WEEN THE PARTIES, INCLUDING THE BARGAI NING HISTORY THAT LED TO THE AGREEMENT OR THE PRECOLLECTIVE BA RGAINING HISTORY OF EMPLOYEE WAGES , HOURS, BENEFITS, AND OTHER WORKING CO NDITIONS; Ch. 92 2023 LAWS OF MARYLAND – 6 – (II) A COMPARISON OF WAGE S, HOURS, BENEFITS, AND CONDITIONS OF EMPLOY MENT OF SIMILAR EMPL OYEES OF OTHER PUBLI C EMPLOYERS IN THE WASHINGTON METROPOLITAN AREA AND IN THE STATE; (III) A COMPARISON OF WAGE S, HOURS, BENEFITS, AND CONDITIONS OF EMPLOY MENT OF SIMILAR EMPL OYEES OF PRIVATE EMP LOYERS IN MONTGOMERY COUNTY; (IV) THE PUBLIC INTEREST AND WELFARE ; (V) THE ABILITY OF THE E MPLOYER TO FINANCE A NY ECONOMIC ADJUSTMENTS REQUIRED UNDER THE P ROPOSED AGREEMENT ; (VI) THE EFFECTS OF ANY E CONOMIC ADJUSTMENTS ON THE STANDARD OF PUBLIC S ERVICES NORMALLY PRO VIDED BY THE EMPLOYE R; AND (VII) THE ANNUAL INCREA SE OR DECREASE IN CO NSUMER PRICES FOR ALL ITEMS AS SHOWN IN THE MOST RECENT CONSUMER PRICE INDEX – WAGE EARNERS AND CLERICAL WORKERS (“CPI–W”) FOR THE WASHINGTON METROPOLITAN AREA. (3) IN CONSIDERING THE TE RMS AND CONDITIONS O F THE FINAL OFFER, THE MED IATOR–ARBITRATOR SHALL FIR ST CONSIDER AND GIVE THE HIGHEST PRIORITY TO THE ABILITY OF THE MONTGOMERY COMMISSION TO PAY FOR ADDITIONAL SHORT –TERM AND LONG –TERM EXPENSES BY CON SIDERING: (I) THE LIMITS ON THE AB ILITY OF THE MONTGOMERY COMMISSION TO RAISE REVENUE; (II) THE ADDED BURDEN RAI SING REVENUE WOULD H AVE ON CUSTOMERS OF THE MONTGOMERY COMMISSION; AND (III) THE ABILITY OF THE MONTGOMERY COMMISSION TO CONTINUE PROVIDING T HE CURRENT LEVEL OF SERVICE TO ITS CUSTO MERS. (4) IN DETERMINING THE MORE REASONABLE OFFE R, THE MEDIATOR–ARBITRATOR SHALL CON SIDER THAT ALL ITEMS ON WHICH THE PARTIES AGREED BEFORE THE ME DIATION–ARBITRATION ARE INTE GRATED WITH EACH OFFER. (5) THE MEDIATOR –ARBITRATOR MAY NOT R ECEIVE OR CONSIDER THE HISTORY OF COLLE CTIVE BARGAINING RELATING T O THE IMMEDIATE DISP UTE, WES MOORE, Governor Ch. 92 – 7 – INCLUDING ANY OFFERS OF SETTLEMENT NOT CO NTAINED IN THE OFFER SUBMITTED TO THE MED IATOR–ARBITRATOR. (F) THE MEDIATOR –ARBITRATOR MAY NOT C OMPROMISE OR ALTER T HE FINAL OFFER THAT THE MEDIATOR–ARBITRATOR CHOOSES . (G) (1) SUBJECT TO PARAGRAPHS (2) AND (5) OF THIS SUBSECTION A ND WITHOUT RATIFICATION BY THE PARTIES , THE OFFER THAT THE MEDIATOR–ARBITRATOR CHOOSES A S INTEGRATED WITH TH E ITEMS ON WHICH THE PARTIES PREVIOUSLY A GREED IS THE FINAL A GREEMENT BETWEEN THE MONTGOMERY COMMISSION AND THE EX CLUSIVE REPRESENTATI VE. (2) THE ECONOMIC PROVISIO NS OF THE FINAL AGRE EMENT ARE SUBJECT TO FUNDING B Y THE MONTGOMERY COMMISSION. (3) EXCEPT AS PROVIDED IN PARAGRAPH (5) OF THIS SUBSECTION , THE MONTGOMERY COMMISSION SHAL L APPROPRIATE MONEY IN THE MONTGOMERY COMMISSION’S FINAL BUDGET FOR A LL ECONOMIC PROVISIO NS OF THE FINAL AGREEMENT . (4) THE PARTIES SHALL EXE CUTE AN AGREEMENT TH AT INCORPORATES THE FIN AL AGREEMENT , INCLUDING ARBITRATIO N AWARDS AND ALL ISSUES AGREED TO UNDER THIS SECTION . (5) (I) ON OR BEFORE APRIL 1 OR WITHIN 45 DAYS AFTER THE EXECUTION OF AN AGRE EMENT UNDER PARAGRAP H (4) OF THIS SUBSECTION O R ON A LATER DATE DETERMI NED BY MUTUAL AGREEM ENT OF THE PARTIES D UE TO EXTENUATING CIRCUMST ANCES, THE EXECUTIVE DIRECTOR OF THE MONTGOMERY COMMISSION SHALL SUBM IT TO THE MONTGOMERY COMMISSION ANY TERM O R CONDITION OF THE FIN AL OFFER REGARDING WAGES THAT REQUIRES : 1. AN APPROPRIATION OF FUNDS OR THAT MAY RESULT IN A PRESENT OR FUTU RE FISCAL IMPACT ON THE MONTGOMERY COMMISSION OR ITS CUSTOMERS ; OR 2. THE ADOPTION OF A RE GULATION THAT MAY RE SULT IN A PRESENT OR FUTU RE FISCAL IMPACT ON THE MONTGOMERY COMMISSION OR ITS CUSTOMERS ACTION BY THE MONTGOMERY COMMISSION TO IMPLEME NT THE COLLECTIVE BARGAININ G AGREEMENT . (II) THE MONTGOMERY COMMISSION MAY ACCEPT OR REJECT ALL OR PART OF ANY T ERM OR CONDITION THA T THE EXECUTIVE DIRECTOR IS REQUIRED TO SUBMIT U NDER SUBPARAGRAPH (I) OF THIS PARAGRAPH . Ch. 92 2023 LAWS OF MARYLAND – 8 – (H) THE MONTGOMERY COMMISSION AND THE EM PLOYEE ORGANIZATION SHALL SHARE EQUALLY THE COSTS OF THE MED IATOR–ARBITRATOR’S SERVICES. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2023. Approved by the Governor, April 11, 2023.