EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0218*
SENATE BILL 218
P4 CONSTITUTIONAL AMENDMENT 3lr0948
CF 3lr0570
By: Senators McCray, Jackson, Benson, and Hettleman
Introduced and read first time: January 23, 2023
Assigned to: Budget and Taxation and Finance
A BILL ENTITLED
AN ACT concerning 1
Arbitration Reform for State Employees Act of 2023 2
FOR the purpose of altering the collective bargaining process for State employees, including 3
by requiring the selection of a neutral arbitrator to oversee all aspects of collective 4
bargaining, establishing a process of arbitration in the event of impasse, and 5
providing that certain decisions of a neutral arbitrator are advisory; altering the 6
matters that are required to be included in collective bargaining; requiring that each 7
budget bill contain the appropriations necessary to implement all terms and 8
conditions of employment in certain memoranda of understanding for the next 9
ensuing fiscal year; and generally relating to collective bargaining for State 10
employees. 11
BY repealing and reenacting, with amendments, 12
Article – State Finance and Procurement 13
Section 7–108 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2022 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – State Personnel and Pensions 18
Section 3–103, 3–501, 3–502, and 3–603 19
Annotated Code of Maryland 20
(2015 Replacement Volume and 2022 Supplement) 21
BY adding to 22
Article – State Personnel and Pensions 23
Section 3–503 24
Annotated Code of Maryland 25
(2015 Replacement Volume and 2022 Supplement) 26
BY proposing an amendment to the Maryland Constitution 27 2 SENATE BILL 218
Article III – Legislative Department 1
Section 52 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That the Laws of Maryland read as follows: 4
Article – State Finance and Procurement 5
7–108. 6
(a) In accordance with the Maryland Constitution and other law, the Governor 7
shall include in each budget bill: 8
(1) an appropriation to pay the principal of and interest on the State debt; 9
(2) without revision, the appropriations requested for public schools, as 10
certified by the State Superintendent of Schools; 11
(3) without revision, the appropriations requested for the Legislative 12
Branch of the State government, as certified by the presiding officers of the General 13
Assembly; 14
(4) without revision, the appropriations requested for the Judicial Branch 15
of the State government, as certified by the Chief Judge of the Court of Appeals; 16
(5) the appropriations requested by the Governor for the Executive Branch 17
of the State government; 18
(6) the appropriations required by law to be included with the 19
appropriations for the Executive Branch; 20
(7) appropriations for the salaries required by law to be paid by the State; 21
and 22
(8) any other appropriations required by the Maryland Constitution or 23
other law to be included in the budget bill. 24
(b) The Governor shall use the current salary plan of the Secretary of Budget and 25
Management as the basis for the appropriations to pay those salaries to which the plan 26
applies. 27
(C) IN ADDITION TO THE AP PROPRIATIONS REQUIRE D IN SUBSECTION (A) 28
OF THIS SECTION, THE GOVERNOR SHALL INCLUD E IN EACH ANNUAL BUD GET BILL 29
THE APPROPRIATIONS N ECESSARY TO IMPLEMEN T AND FUND ALL TERMS WITHIN 30
EACH MEMORAND UM OF UNDERSTANDING BETWEEN: 31
SENATE BILL 218 3
(1) THE STATE AND EACH EXCLUS IVE REPRESENTATIVE O F ITS 1
EMPLOYEES; 2
(2) STATE INSTITUTIONS OF HIGHER EDUCATION , INCLUDING THE 3
UNIVERSITY SYSTEM OF MARYLAND, AND EACH EXCLUSIVE R EPRESENTATIVE OF 4
THEIR EMPLOYEES ; AND 5
(3) THE MARYLAND ENVIRONMENTAL SERVICE AND EACH 6
EXCLUSIVE REPRESENTA TIVE OF ITS EMPLOYEE S. 7
Article – State Personnel and Pensions 8
3–103. 9
This title and any agreement under this title do not limit or otherwise interfere with 10
the powers of the Governor or the Maryland General Assembly [under], EXCEPT TO 11
OPERATE IN ACCORDANC E WITH AND HAVE THE EFFECT REQUIRED BY Article III, § 12
52 of the Maryland Constitution. 13
3–501. 14
(a) (1) The following individuals or entities shall designate one or more 15
representatives to participate as a party in collective bargaining on behalf of the State or 16
the following institutions: 17
(i) on behalf of the State, the Governor; 18
(ii) on behalf of the Maryland Environmental Service, the Board of 19
Directors of the Service; 20
(iii) on behalf of the University System of Maryland, the Chancellor; 21
and 22
(iv) on behalf of Morgan State University, St. Mary’s College of 23
Maryland, or Baltimore City Community College, the governing board of the institution. 24
(2) The exclusive representative shall designate one or more 25
representatives to participate as a party in collective bargaining on behalf of the exclusive 26
representative. 27
(b) (1) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 28
parties shall meet at reasonable times [and] BETWEEN JULY 1 AND SEPTEMBER 30 TO 29
engage in collective bargaining in good faith[, including facilitating the meaningful use of 30
a fact finder under subsection (c)(3) of this section,] and to conclude a written memorandum 31
of understanding or other written understanding as defined under § 3–101(d)(1)(ii) of this 32
title. 33 4 SENATE BILL 218
(2) (I) FOR EACH BARGAINING U NIT, WHENEVER A MEMORANDU M 1
OF UNDERSTANDING IS TO BE NEGOTIATED , REOPENED, OR AMENDED , THE PARTIES 2
SHALL FIRST SELECT A NEUTRAL ARBITRATOR F OR THE NEGOTIATIONS ON OR 3
BEFORE JULY 15. 4
(II) THE ARBITRATOR SHALL BE SELECTED FROM A L IST OF 15 5
ARBITRATORS PROVIDED BY THE AMERICAN ARBITRATION ASSOCIATION’S LABOR 6
ARBITRATION PANEL . 7
(III) THE LIST SHALL CONSIS T OF QUALIFIED , NATIONWIDE 8
ARBITRATORS WHO ARE MEMBERS OF TH E NATIONAL ACADEMY OF ARBITRATION. 9
(IV) THE PARTIES SHALL SEL ECT THE ARBITRATOR B Y 10
ALTERNATELY STRIKING NAMES FROM THE LIST UNTIL ONE NAME REMAI NS. 11
(V) THE SELECTED ARBITRAT OR MUST BE ABLE AND 12
AVAILABLE TO PERFORM THE DUTIES AND TO HO LD HEARINGS, BOTH IN PERSON 13
AND THROUGH REMOTE C OMMUNICATION , CONSISTENT WITH THIS TITLE. 14
(VI) THE ARBITRATOR SHALL HAVE THE POWERS AND 15
RESPONSIBILITIES UND ER § 3–503 OF THIS SUBTITLE. 16
(VII) THE SELECTED ARBITRAT OR SHALL ACCEPT THE 17
APPOINTMENT BEFORE JULY 15, OR THE PARTIES MAY AGRE E TO MAKE AN 18
ALTERNATIVE APPOINTM ENT FROM: 19
1. THE LIST ORIGINALLY PROVIDED BY THE AMERICAN 20
ARBITRATION ASSOCIATION; OR 21
2. A LIST OF NATIONWIDE ARBITRATORS PROVIDED BY 22
THE FEDERAL MEDIATION AND CONCILIATION SERVICE. 23
(3) THE PARTIES SHALL MAKE A REASONABLE EFFORT TO BEGIN 24
NEGOTIATIONS ON OR N EAR JULY 1, INCLUDING THE EXCHAN GE OF INFORMATION 25
NECESSARY TO RESPONS IBLY CONDUCT AND CON CLUDE NEGOTIATIONS B Y 26
SEPTEMBER 30. 27
(c) [(1) The parties shall make every reasonable effort to conclude negotiations 28
in a timely manner for inclusion by the principal unit in its budget request to the Governor. 29
(2) (i) The parties shall conclude negotiations before January 1 for any 30
item requiring an appropriation of funds for the fiscal year that begins on the following 31
July 1. 32 SENATE BILL 218 5
(ii) In the budget bill submitted to the General Assembly, the 1
Governor shall include any amounts in the budgets of the principal units required to 2
accommodate any additional cost resulting from the negotiations, including the actuarial 3
impact of any legislative changes to any of the State pension or retirement systems that 4
are required, as a result of the negotiations, for the fiscal year beginning the following July 5
1 if the legislative changes have been negotiated to become effective in that fiscal year. 6
(3) (i) If the parties do not conclude negotiations for the next fiscal year 7
before October 25, either party may request that a fact finder be employed to resolve the 8
issues. 9
(ii) The fact finder shall be employed no later than November 1. 10
(iii) A fact finder shall be a neutral party appointed by alternate 11
striking from a list by the parties provided: 12
1. by the Federal Mediation and Conciliation Service; or 13
2. under the Labor Arbitration Rules of the American 14
Arbitration Association. 15
(iv) The fact finder: 16
1. may give notice and hold hearings in accordance with the 17
Administrative Procedure Act; 18
2. may administer oaths and take testimony and other 19
evidence; 20
3. may issue subpoenas; and 21
4. before November 20, shall make written recommendations 22
regarding wages, hours, and working conditions, and any other terms or conditions of 23
employment that may be in dispute. 24
(v) The written recommendations of the fact finder shall be delivered 25
to the Governor, the exclusive representative, the President of the Senate, and the Speaker 26
of the House of Delegates by the Secretary on or before December 1. 27
(d)] (1) A memorandum of understanding [that incorporates all matters of 28
agreement reached by the parties] REACHED BY MUTUAL AG REEMENT shall be executed 29
by the exclusive representative and: 30
(i) for a memorandum of understanding relating to the State, the 31
Governor or the Governor’s designee; 32
6 SENATE BILL 218
(ii) for a memorandum of understanding relating to the Maryland 1
Environmental Service, the Board of Directors of the Service; 2
(iii) for a memorandum of understanding relating to a system 3
institution, the Chancellor or the Chancellor’s designee; and 4
(iv) for a memorandum of understanding relating to Morgan State 5
University, St. Mary’s College of Maryland, or Baltimore City Community College, the 6
governing board of the institution or the governing board’s designee. 7
(2) To the extent [these] matters INCORPORATED IN A ME MORANDUM 8
OF UNDERST ANDING require legislative approval or the appropriation of funds, the 9
matters shall be [recommended] REFERRED to the General Assembly for approval or for 10
the appropriation of funds AS REQUIRED UNDER ARTICLE III, § 52 OF THE MARYLAND 11
CONSTITUTION . 12
(3) To the extent matters involving a State institution of higher education 13
require legislative approval, the legislation shall be [recommended] REFERRED to the 14
Governor [for submission to] AND the General Assembly. 15
[(e)] (D) Negotiations for a memorandum of understanding shall be considered 16
closed sessions under § 3–305 of the General Provisions Article. 17
[(f)] (E) (1) The terms of a memorandum of understanding executed by the 18
Governor or the Governor’s designee and an exclusive representative of a bargaining unit 19
for skilled service or professional service employees in the State Personnel Management 20
System are not applicable to employees of a State institution of higher education. 21
(2) The terms of a memorandum of understanding executed by the 22
Chancellor or the governing board of Morgan State University, St. Mary’s College of 23
Maryland, or Baltimore City Community College, or their respective designees, and the 24
exclusive representative of a bargaining unit for employees of a State institution of higher 25
education are not applicable to skilled service or professional service employees in the State 26
Personnel Management System. 27
3–502. 28
(a) Collective bargaining shall include all matters relating to: 29
(1) wages, hours, FRINGE BENEFITS , HEALTH BENEFITS , PENSION 30
BENEFITS, and other terms and conditions of employment; and 31
(2) the time and manner of access to a new employee program as required 32
under § 3–307 of this title. 33
(b) [(1) Collective bargaining may include negotiations relating to the right of 34 SENATE BILL 218 7
an employee organization to receive service fees from nonmembers. 1
(2) An employee whose religious beliefs are opposed to joining or financially 2
supporting any collective bargaining organization is: 3
(i) not required to pay a service fee; and 4
(ii) required to pay an amount of money as determined in collective 5
bargaining negotiations, not to exceed any service fee negotiated under paragraph (1) of 6
this subsection, to any charitable organization exempt from taxation under § 501(c)(3) of 7
the Internal Revenue Code and to furnish written proof of the payment to: 8
1. A. the Department; 9
B. in the case of an employee of the Maryland Environmental 10
Service, the Board of Directors of the Service; or 11
C. in the case of an employee of an institution of higher 12
education specified in § 3–102(a)(1)(v) of this title, the President of the institution or the 13
President’s designee; and 14
2. the exclusive representative. 15
(c)] Notwithstanding subsection (a) of this section, the representatives of the 16
State, the Maryland Environmental Service, a system institution, Morgan State 17
University, St. Mary’s College of Maryland, and Baltimore City Community College: 18
(1) [shall] MAY not be required to negotiate over any matter that is 19
inconsistent with applicable law; and 20
(2) may negotiate and reach agreement with regard to any such matter 21
THAT IS INCONSISTENT WITH APPLICABLE LAW only if it is understood that, WITH 22
RESPECT TO THE MATTE R, the agreement [with respect to such matter] OR 23
MEMORANDUM OF UNDERS TANDING cannot become effective unless the applicable law 24
is amended by the General Assembly. 25
3–503. 26
(A) (1) A NEUTRAL ARBITRATOR S ELECTED UNDER § 3–501(B) OF THIS 27
SUBTITLE: 28
(I) MAY MEDIATE OR AID I N THE RESOLUTION OF ANY DISPUTE 29
BETWEEN THE PARTIES REGARDING THE CONDUCT OF NE GOTIATIONS, INCLUDING 30
WHETHER THE CONDUCT OF A PARTY IS IN GOO D FAITH; 31
(II) MAY RECEIVE FROM THE PARTIES COPIES OF IN FORMATION 32 8 SENATE BILL 218
REQUESTS PRESENTED A ND RESPONSES RECEIVE D, TO MEDIATE OR AID IN THE 1
RESOLUTION OF DISPUT ES OVER THE TIMEL INESS AND SUFFICIENC Y OF 2
INFORMATION DEMANDS AND PRODUCTION ; 3
(III) MAY ISSUE OPINIONS I N ORDER TO HELP TO R ESOLVE 4
DISPUTES OVER REQUES TS FOR INFORMATION O R PROMOTE BARGAINING IN GOOD 5
FAITH CONSISTENT WIT H THIS TITLE; AND 6
(IV) MAY DIRECT PRODUCTIO N OF ESTIMATES OF REVE NUES 7
AND EXPENDITURES COM PILED BY THE STATE BOARD OF REVENUE ESTIMATES, 8
THE BUREAU OF REVENUE ESTIMATES, OR THE CONSENSUS REVENUE 9
MONITORING AND FORECASTING GROUP. 10
(2) (I) THE OPINIONS AND GUID ANCE ISSUED BY THE N EUTRAL 11
ARBITRATOR UN DER THIS SUBSECTION SHALL BE ADVISORY ON THE PARTIES AND 12
THE GOVERNOR. 13
(II) THE PROCESS SET OUT I N THIS SUBSECTION DO ES NOT 14
DIMINISH OR LIMIT TH E RIGHTS OF ANY PART Y TO FILE AND PURSUE A COMPLAINT 15
OF UNFAIR LABOR PRAC TICES BEFORE THE BOARD. 16
(B) (1) IF AN IMPASSE IS DECL ARED ON OR AFTER OCTOBER 1, 17
ARBITRATION SHALL PR OCEED AS DESCRIBED I N THIS SUBSECTION . 18
(2) (I) ON THE FIFTH BUSINESS DAY AFTER THE IMPASS E IS 19
DECLARED, EACH PARTY SHALL SUB MIT TO THE NEUTRAL A RBITRATOR, IN WRITING 20
AND WITH A COPY TO THE OTHER PARTY , A LAST, BEST, AND FINAL OFFER , 21
INCLUDING: 22
1. ALL PROVISIONS IN TH E EXISTING MEMORANDU M OF 23
UNDERSTANDING NOT TO BE MODIFIED; 24
2. ALL NEW, AMENDED, OR MODIFIED MEMORAND UM OF 25
UNDERSTANDING PROVIS IONS AGREED TO BY TH E PARTIES BEFORE T HE IMPASSE 26
WAS DECLARED THAT AR E TO BE INCLUDED THR OUGH WRITTEN MUTUAL 27
AGREEMENT ; AND 28
3. SUBJECT TO SUBPARAGR APH (II) OF THIS 29
PARAGRAPH , DETAILED FURTHER PRO VISIONS THAT A PARTY IS PROPOSING FOR 30
INCLUSION IN A MEMOR ANDUM OF UNDERSTANDI NG. 31
(II) FURTHER PROVISIONS ARE LIMITED TO SPECIFIC 32
PROPOSALS THAT WERE SUBMITTED IN WRITING TO THE OTHER PARTY A ND WERE 33 SENATE BILL 218 9
THE SUBJECT OF COLLE CTIVE BARGAINING BET WEEN THE PARTIES UP TO THE TIME 1
OF IMPASSE, INCLUDING PROPOSALS THAT THE PARTIES HAV E DECIDED TO 2
INCLUDE IN THE MEMORANDUM OF UN DERSTANDING THROUGH WRITTEN MUTUAL 3
AGREEMENT . 4
(3) THE NEUTRAL ARBITRATO R ACTING AS A MEDIAT OR SHALL 5
ATTEMPT TO RESOLVE T HE IMPASSE BEFORE A FORMAL HEARING ON TH E IMPASSE. 6
(4) (I) WITHIN 30 CALENDAR DAYS AFTER A DECLARED IMPASSE , 7
THE NEUTRAL ARBITRAT OR SHALL HOLD A FORM AL HEARING AT WHICH THE 8
PARTIES MAY SUBMIT , IN WRITING OR ORAL T ESTIMONY, ALL INFORMATION OR 9
DATA SUPPORTING THE FINAL POSITIONS. 10
(II) ABSENT MUTUAL AGREEME NT BETWEEN THE PARTI ES, OR 11
AS OTHERWISE ORDERED BY THE NEUTRAL ARBITRATOR , THE FORMAL HEARING 12
SHALL CONCLUDE WITHI N 45 CALENDAR DAYS AFTER THE IMPASSE DATE . 13
(5) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 14
PARAGRAPH , THE ARBITRATION SHAL L CONCLUDE WITH A WR ITTEN AWARD THAT 15
SUSTAINS IN ITS ENTI RETY THE LAST, BEST, AND FINAL OFFER OF O NE OF THE 16
PARTIES. 17
(II) BEFORE A WRITTEN AWAR D IS ISSUED , BY WRITTEN 18
AGREEMENT SIGNED BY THE REPRESENTATIVES OF THE PARTIES PARTI CIPATING IN 19
THE ARBITRATION , THE PARTIES MAY DIRE CT THE NEUTRAL ARBIT RATOR TO RULE 20
ON SPECIFICALLY IDENTIFIED TOPICS OF BARGAINING . 21
(6) (I) THE NEUTRAL ARBITRATO R SHALL ISSUE A PREL IMINARY 22
WRITTEN AWARD ON OR BEFORE DECEMBER 5. 23
(II) THE PRELIMINARY WRITT EN AWARD SHALL ADDRE SS ALL 24
PROVISIONS THAT EACH PARTY PROPOSED IN IT S RESPECTIVE FINAL POSITION FOR 25
INCLUSION IN A MEMOR ANDUM OF UNDERSTANDI NG. 26
(III) WITHIN 5 BUSINESS DAYS AFTER RECEIPT OF THE 27
PRELIMINARY WRITTEN AWARD, THE PARTIES SHALL RE VIEW THE AWARD AND M AY 28
SEVERALLY OR MUTUALL Y REQUEST CHANGES OR ADJUSTMENTS IN THE A WARD. 29
(IV) ON OR BEFORE DECEMBER 15, THE NEUTRAL ARBITRAT OR 30
SHALL ISSUE A FINAL WRITTEN AWARD IN WHI CH THE ARBITRATOR : 31
1. SHALL ORDER IMPLEMEN TATION OF THE LAST , BEST, 32
AND FINAL OFFER OF E ITHER PARTY IN ITS E NTIRETY, INCORPORATING ANY 33 10 SENATE BILL 218
VOLUNTARILY –AGREED–TO TERMS BETWEEN THE PARTIES; AND 1
2. SHALL INCLUDE : 2
A. ANY VOLUNTARILY –AGREED–TO TERMS BETWEEN 3
THE PARTIES; AND 4
B. ANY PRIOR TERM THAT BY AGREEMENT IS NOT TO BE 5
CHANGED FOR THE NEXT FISCAL YEAR. 6
(V) AFTER DECEMBER 15, IF REQUESTED BY EITHER PARTY , 7
THE NEUTRAL ARBITRAT OR SHALL ISSUE BY JANUARY 20 OF THE IMMEDIATELY 8
FOLLOWING YEAR , A STATEMENT OF REASO NS FOR THE FINAL WRI TTEN AWARD. 9
(7) THE NEUTRAL ARBITRATO R SHALL CONSIDER THE FOLLOWING 10
WHEN DEVELOPING A WR ITTEN AWARD: 11
(I) THE LAWFUL AUTHORITY OF TH E EMPLOYER , INCLUDING 12
THE OBLIGATION OF TH E EMPLOYER TO USE SP ECIAL FUNDS ONLY FOR 13
AUTHORIZED PURPOSES UNDER LIMITATIONS IM POSED BY FEDERAL OR STATE LAW; 14
(II) STIPULATIONS OF THE PARTIES; 15
(III) THE INTERESTS AND WE LFARE OF THE P UBLIC; 16
(IV) THE FINANCIAL ABILIT Y OF THE EMPLOYER TO MEET 17
COSTS, WITHOUT THE PREMISE THAT THE EMPLOYER MA Y NEED TO INCREASE O R 18
IMPOSE NEW TAXES , FEES, OR CHARGES , OR DEVELOP OTHER SOU RCES OF 19
REVENUE; 20
(V) THE PRESENT AND FUTU RE GENERAL ECONOMIC 21
CONDITION OF THE STATE OR STATE INSTITUTIONS OF HIGHER EDUCATION ; 22
(VI) COMPARISONS OF WAGES , HOURS, AND CONDITIONS OF 23
EMPLOYMENT OF THE EM PLOYEES INVOLVED WIT H ARBITRATION WITH T HE WAGES, 24
HOURS, AND CONDITIONS OF EM PLOYMENT OF OTHER EM PLOYEES PERFORMIN G 25
SIMILAR SERVICES IN PUBLIC EMPLOYMENT IN ADJACENT STATES ; 26
(VII) COMPARISONS OF COLLE CTIVE BARGAINING PAT TERNS IN 27
OTHER STATES AND AMO NG COUNTY EMPLOYEES IN THE STATE; 28
(VIII) CONSUMER PRICES FOR GOODS AND SERVICES A S DEFINED 29
BY PUBLIC AND PRIVAT E SOURCES; 30 SENATE BILL 218 11
(IX) THE OVERALL COMPENSA TION PRESENTLY RECEI VED BY 1
THE EMPLOYEES , INCLUDING DIRECT WAG E COMPENSATION , VACATION, HOLIDAYS, 2
EXCUSED TIME OFF , INSURANCE AND PENSIO NS COSTS, MEDICAL AND 3
HOSPITALIZATION BENE FITS, THE CONTINUITY AND S TABILITY OF EM PLOYMENT, 4
AND ALL OTHER RECEIV ED BENEFITS; 5
(X) CHANGES IN ANY OF TH E FOREGOING CIRCUMST ANCES 6
DURING THE PENDENCY OF THE ARBITRATION ; AND 7
(XI) OTHER FACTORS THAT A RE NORMALLY OR TRADI TIONALLY 8
TAKEN INTO CONSIDERA TION IN THE DETERMIN ATION OF WAGES , HOURS, AND 9
CONDITIONS OF EMPLOY MENT THROUGH VOLUNTA RY COLLECTIVE BARGAI NING, 10
MEDIATION, ARBITRATION, OR OTHERWISE BETWEEN THE PARTIES IN PUBLI C 11
SERVICE OR PRIVATE E MPLOYMENT . 12
(C) THE DECISION OF THE N EUTRAL ARBITRATOR SH ALL BE FINAL AND 13
BINDING ON THE PAR TIES. 14
(D) THE STATE, A STATE INSTITUTION OF HIGHER EDUCATION , AND THE 15
MARYLAND ENVIRONMENTAL SERVICE AND THE GOVERNOR SHALL TAKE A LL 16
ACTIONS NECESSARY TO CARRY OUT AND EFFECT UATE THE FINAL WRITT EN AWARD 17
AND PLACE INTO EFFEC T THE MEMORANDUM OF UNDERSTANDI NG. 18
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE PARTIES 19
AT ANY TIME MAY AMEN D OR MODIFY THE FINA L WRITTEN AWARD AND , BY CONSENT, 20
THE AMENDMENTS OR MO DIFICATIONS SHALL BE APPROVED BY THE PART IES AND 21
PLACED IN A SUPPLEME NTAL WRITTEN AWARD B Y THE NEUTRAL ARBITRATO R THAT 22
SHALL BE FINAL AND B INDING. 23
(2) A SUPPLEMENTAL WRITTEN AWARD UNDER PARAGRAP H (1) OF 24
THIS SUBSECTION SHAL L TAKE EFFECT ON THE DATE OF THE ORDER OF THE 25
NEUTRAL ARBITRATOR A ND MAY NOT REQUIRE R ATIFICATION UNDER § 3–601 OF 26
THIS TITLE. 27
(F) A DEADLINE IN THIS SEC TION MAY BE MODIFIED , BASED ON GOOD 28
CAUSE, BY MUTUAL AGREEMENT OF THE PARTIES OR BY ORDER OF THE NEUTRAL 29
ARBITRATOR. 30
(G) (1) THE COSTS OF THE SERV ICES OF THE NEUTRAL ARBITRATOR 31
SHALL BE SHARED EQUA LLY BY THE PARTIES . 32
(2) ALL OTHER COSTS INCUR RED BY EITHER PARTY TO COMPLY WITH 33 12 SENATE BILL 218
THIS SECTION SHALL B E THE RESPONSIBILITY OF THE PARTY INCURRI NG THE 1
COSTS. 2
3–603. 3
(a) A memorandum of understanding [agreed to and ratified under § 3–601 of this 4
subtitle] may not expire until it is succeeded by a memorandum of understanding that is 5
agreed to and ratified OR ADOPTED BY ARBITR ATION under this title. 6
(b) Notwithstanding § 3–601(b) of this subtitle, all terms of a memorandum of 7
understanding shall continue in force and effect without change until a successor 8
memorandum of understanding is agreed to and ratified. 9
(c) (1) Based on a verified complaint by an exclusive representative, the 10
exclusive representative may file an action in a circuit court against the State, the 11
Maryland Environmental Service, a system institution, Morgan State University, St. 12
Mary’s College of Maryland, or Baltimore City Community College to enforce the terms of 13
this section. 14
(2) On receipt of an action submitted by the exclusive representative, the 15
court shall issue a status quo order without a finding of irreparable harm to maintain a 16
memorandum of understanding and the terms in effect pending a final order in the action. 17
SECTION 2. AND BE IT FURTHER ENACTED, (Three –fifths of all the members 18
elected to each of the two Houses concurring), That it be proposed that the Maryland 19
Constitution read as follows: 20
Article III – Legislative Department 21
52. 22
(1) The General Assembly shall not appropriate any money out of the Treasury 23
except in accordance with the provisions of this section. 24
(2) Every appropriation bill shall be either a Budget Bill, or a Supplementary 25
Appropriation Bill, as hereinafter provided. 26
(3) On the third Wednesday in January in each year, (except in the case of a newly 27
elected Governor, and then not later than ten days after the convening of the General 28
Assembly), unless such time shall be extended by the General Assembly, the Governor shall 29
submit to the General Assembly a Budget for the next ensuing fiscal year. Each Budget 30
shall contain a complete plan of proposed expenditures and estimated revenues for said 31
fiscal year and shall show the estimated surplus or deficit of revenues at the end of the 32
preceding fiscal year. EACH BUDGET SHALL ALSO CON TAIN THE APPROPRIATI ONS 33
NECESSARY TO IMPLEMENT ALL TERMS AND CONDITIONS OF EM PLOYMENT IN EACH 34
MEMORANDUM OF UNDERS TANDING CONCLUDED WI TH THE STATE, WHETHER 35 SENATE BILL 218 13
REACHED THROUGH MUTU AL AGREEMENT OR ARBI TRATION THAT IS BIND ING ON 1
THE PARTIES, THE GOVERNOR, STATE INSTITUTIONS OF HIGHER EDUCATION , AND 2
THE MARYLAND ENVIRONMENTAL SERVICE, FOR THE NEXT ENSUING FISCAL YEAR 3
FOR STATE EMPLOYEES IN TH E VARIOUS BRANCHES A ND DEPARTMENTS OF STATE 4
GOVERNMENT , INCLUDING HIGHER EDU CATION. Accompanying each Budget shall be a 5
statement showing: (a) the revenues and expenditures for the preceding fiscal year; (b) the 6
current assets, liabilities, reserves and surplus or deficit of the State; (c) the debts and 7
funds of the State; (d) an estimate of the State’s financial condition as of the beginning and 8
end of the preceding fiscal year; (e) CHANGES IN WAGES , HOURS, FRINGE BENEFITS , 9
HEALTH BENEFITS , PENSION BENEFITS , AND OTHER TERMS AND CONDITIONS OF 10
EMPLOYMENT FOR STATE EMPLOYEES INCLU DED IN EACH MEMORAND UM OF 11
UNDERSTANDING COVERI NG STATE EMPLOYEES FOR T HE NEXT ENSUING FI SCAL 12
YEAR; AND (F) any explanation the Governor may desire to make as to the important 13
features of the Budget and any suggestions as to methods for reduction or increase of the 14
State’s revenue. 15
(4) Each Budget shall embrace an estimate of all appropriations in such form and 16
detail as the Governor shall determine or as may be prescribed by law, as follows: (a) for 17
the General Assembly as certified to the Governor in the manner hereinafter provided; (b) 18
for the Executive Department; (c) for the Judiciary Department, as provided by law, as 19
certified to the Governor; (d) to pay and discharge the principal and interest of the debt of 20
the State in conformity with Section 34 of Article III of the Constitution, and all laws 21
enacted in pursuance thereof; (e) for the salaries AND FRINGE BENEFITS payable by the 22
State and under the Constitution and laws of the State, INCLUDING THOSE SALA RIES 23
AND BENEFITS COMMITT ED UNDER EACH MEMORA NDUM OF UNDERSTANDIN G 24
COVERING STATE EMPLOYEES ; (f) for the establishment and maintenance throughout 25
the State of a thorough and efficient system of public schools in conformity with Article 8 26
of the Constitution and with the laws of the State; and (g) for such other purposes as are 27
set forth in the Constitution or laws of the State. 28
(5) The Governor shall deliver to the presiding officer of each House the Budget 29
and a bill for all the proposed appropriations of the Budget classified and in such form and 30
detail as the Governor shall determine or as may be prescribed by law; and the presiding 31
officer of each House shall promptly cause said bill to be introduced therein, and such bill 32
shall be known as the “Budget Bill.” The Governor may, with the consent of the General 33
Assembly, before final action thereon by the General Assembly, amend or supplement said 34
Budget to correct an oversight, provide funds contingent on passage of pending legislation 35
or, in case of an emergency, by delivering such an amendment or supplement to the 36
presiding officers of both Houses; and such amendment or supplement shall thereby become 37
a part of said Budget Bill as an addition to the items of said bill or as a modification of or a 38
substitute for any item of said bill such amendment or supplement may affect. 39
(5a) The Budget and the Budget Bill as submitted by the Governor to the General 40
Assembly shall have a figure for the total of all proposed appropriations and a figure for 41
the total of all estimated revenues available to pay the appropriations, and the figure for 42
total proposed appropriations shall not exceed the figure for total estimated revenues. 43 14 SENATE BILL 218
Neither the Governor in submitting an amendment or supplement to the Budget Bill nor 1
the General Assembly in amending the Budget Bill shall thereby cause the figure for total 2
proposed appropriations to exceed the figure for total estimated revenues, including any 3
revisions, and in the Budget Bill as enacted the figure for total estimated revenues always 4
shall be equal to or exceed the figure for total appropriations. 5
(6) The General Assembly shall not amend the Budget Bill so as to affect either 6
the obligations of the State under Section 34 of Article III of the Constitution, or the 7
provisions made by the laws of the State for the establishment and maintenance of a system 8
of public schools or the payment of any salaries required to be paid by the State of Maryland 9
by the Constitution. 10
(6a) In enacting a balanced Budget Bill each fiscal year as required under this 11
Section, the General Assembly may amend the bill by increasing or diminishing the items 12
therein relating to the General Assembly, and by increasing or diminishing the items 13
therein relating to the judiciary, but except as hereinbefore specified, may not alter the bill 14
except to strike out or reduce items therein, provided, however, that the salary or 15
compensation of any public officer may not be decreased during the public officer’s term of 16
office. When passed by both Houses, the Budget Bill shall be presented to the Governor for 17
approval or disapproval according to Section 17 of Article II of this Constitution. 18
(6b) In enacting a balanced Budget Bill as required under this Section for fiscal 19
year 2024 and each fiscal year thereafter, the General Assembly may amend the bill by 20
increasing, diminishing, or adding items therein relating to the General Assembly, by 21
increasing, diminishing, or adding items therein relating to the judiciary, and by 22
increasing, diminishing, or adding items relating to the Executive Department, provided 23
that the total of the appropriation for the Executive Department approved by the General 24
Assembly does not exceed the total proposed appropriation for the Executive Department 25
submitted by the Governor. The salary or compensation of any public officer may not be 26
decreased during the public officer’s term of office. When passed by both Houses, the Budget 27
Bill shall be a law immediately without further action by the Governor. 28
(7) The Governor and such representatives of the executive departments, boards, 29
officers and commissions of the State expending or applying for State’s moneys, as have 30
been designated by the Governor for this purpose, shall have the right, and when requested 31
by either House of the General Assembly, it shall be their duty to appear and be heard with 32
respect to any Budget Bill during the consideration thereof, and to answer inquiries relative 33
thereto. 34
(8) Supplementary Appropriation Bill. Either House may consider other 35
appropriations but both Houses shall not finally act upon such appropriations until after 36
the Budget Bill has been finally acted upon by both Houses, and n o such other 37
appropriation shall be valid except in accordance with the provisions following: (a) Every 38
such appropriation shall be embodied in a separate bill limited to some single work, object 39
or purpose therein stated and called herein a Supplementary Appropriation Bill; (b) Each 40
Supplementary Appropriation Bill shall provide the revenue necessary to pay the 41
appropriation thereby made by a tax, direct or indirect, to be levied and collected as shall 42 SENATE BILL 218 15
be directed in said bill; (c) No Supplementary Appropriation Bill shall become a law unless 1
it be passed in each House by a vote of a majority of the whole number of the members 2
elected, and the yeas and nays recorded on its final passage; (d) Each Supplementary 3
Appropriation Bill shall be presented to the Governor of the State as provided in Section 4
17 of Article 2 of the Constitution and thereafter all the provisions of said section shall 5
apply. 6
(9) Nothing in this section shall be construed as preventing the General Assembly 7
from passing at any time, in accordance with the provisions of Section 28 of Article 3 of the 8
Constitution and subject to the Governor’s power of approval as provided in Section 17 of 9
Article 2 of the Constitution, an appropriation bill to provide for the payment of any 10
obligation of the State within the protection of Section 10 of Article 1 of the Constitution of 11
the United States. 12
(10) If the Budget Bill shall not have been finally acted upon by the Legislature 13
seven days before the expiration of the regular session, the Governor shall issue a 14
proclamation extending the session for some further period as may, in the Governor’s 15
judgment, be necessary for the passage of such bill; but no matter other than such bill shall 16
be considered during such extended session except a provision for the cost thereof. 17
(11) For the purpose of making up the Budget, the Governor shall require from the 18
proper State officials (including all executive departments, all executive and administrative 19
offices, bureaus, boards, commissions and agencies that expend or supervise the 20
expenditure of, and all institutions applying, for State moneys and appropriations) such 21
itemized estimates and other information, in such form and at such times as directed by 22
the Governor. An estimate for a program required to be funded by a law which will be in 23
effect during the fiscal year covered by the Budget and which was enacted before July 1 of 24
the fiscal year prior to that date shall provide a level of funding not less than that prescribed 25
in the law. The estimates for the Legislative Department, certified by the presiding officer 26
of each House, of the Judiciary, as provided by law, certified by the Chief Justice of the 27
Supreme Court of Maryland, and for the public schools, as provided by law, shall be 28
transmitted to the Governor, in such form and at such times as directed by the Governor, 29
and shall be included in the Budget without revision. 30
(12) The Governor may provide for public hearings on all estimates and may 31
require the attendance at such hearings of representatives of all agencies, and for all 32
institutions applying for State moneys. After such public hearings the Governor may, in 33
the Governor’s discretion, revise all estimates except those for the legislative and judiciary 34
departments, and for the public schools, as provided by law, and except that the Governor 35
may not reduce an estimate for a program below a level of funding prescribed by a law 36
which will be in effect during the fiscal year covered by the Budget, and which was enacted 37
before July 1 of the fiscal year prior thereto. 38
(13) The General Assembly may, from time to time, enact such laws not 39
inconsistent with this section, as may be necessary and proper to carry out its provisions. 40
(14) In the event of any inconsistency between any of the provisions of this Section 41 16 SENATE BILL 218
and any of the other provisions of the Constitution, the provisions of this Section shall 1
prevail. But nothing herein shall in any manner affect the provisions of Section 34 of Article 2
3 of the Constitution or of any laws heretofore or hereafter passed in pursuance thereof, or 3
be construed as preventing the Governor from calling extraordinary sessions of the General 4
Assembly, as provided by Section 16 of Article 2, or as preventing the General Assembly at 5
such extraordinary sessions from considering any emergency appropriation or 6
appropriations. 7
(15) If any item of any appropriation bill passed under the provisions of this 8
Section shall be held invalid upon any ground, such invalidity shall not affect the legality 9
of the bill or of any other item of such bill or bills. 10
SECTION 3. AND BE IT FURTHER ENACTED, That the General Assembly 11
determines that the amendment to the Maryland Constitution proposed by Section 2 of this 12
Act affects multiple jurisdictions and that the provisions of Article XIV, § 1 of the Maryland 13
Constitution concerning local approval of constitutional amendments do not apply. 14
SECTION 4. AND BE IT FURTHER ENACTED, That: 15
(a) The amendment to the Maryland Constitution proposed by Section 2 of this 16
Act shall be submitted to the qualified voters of the State at the next general election to be 17
held in November 2024 for adoption or rejection pursuant to Article XIV of the Maryland 18
Constitution. 19
(b) (1) At that general election, the vote on the proposed amendment to the 20
Constitution shall be by ballot, and on each ballot there shall be printed the words “For the 21
Constitutional Amendment” and “Against the Constitutional Amendment”, as now 22
provided by law. 23
(2) At that general election, a question substantially similar to the 24
following shall be submitted to the qualified voters of the State: 25
“Question ___ – Constitutional Amendment 26
Providing that each budget shall include expenditures necessary to implement wages, 27
hours, fringe benefits, pension benefits, health benefits, and other terms and conditions of 28
employment for State employees concluded in each memorandum of understanding 29
covering State employees.”. 30
(c) Immediately after the election, all returns shall be made to the Governor of 31
the vote for and against the proposed amendment, as directed by Article XIV of the 32
Maryland Constitution, and further proceedings had in accordance with Article XIV. 33
SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 34
4 of this Act, this Act shall take effect July 1, 2023. 35