EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0114*
HOUSE BILL 114
P4 CONSTITUTIONAL AMENDMENT 4lr0509
HB 380/23 – APP (PRE–FILED) CF SB 188
By: Delegates J. Lewis, Harris, and Solomon
Requested: August 14, 2023
Introduced and read first time: January 10, 2024
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Arbitration Reform for State Employees Act of 2024 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 2023 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – State Personnel and Pensions 18
Section 3–103, 3–502, and 3–603 19
Annotated Code of Maryland 20
(2015 Replacement Volume and 2023 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – State Personnel and Pensions 23
Section 3–501 24
Annotated Code of Maryland 25
(2015 Replacement Volume and 2023 Supplement) 26
(As enacted by Chapter 72 of the Acts of the General Assembly of 2021) 27 2 HOUSE BILL 114
BY adding to 1
Article – State Personnel and Pensions 2
Section 3–503 3
Annotated Code of Maryland 4
(2015 Replacement Volume and 2023 Supplement) 5
BY proposing an amendment to the Maryland Constitution 6
Article III – Legislative Department 7
Section 52 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – State Finance and Procurement 11
7–108. 12
(a) In accordance with the Maryland Constitution and other law, the Governor 13
shall include in each budget bill: 14
(1) an appropriation to pay the principal of and interest on the State debt; 15
(2) without revision, the appropriations requested for public schools, as 16
certified by the State Superintendent of Schools; 17
(3) without revision, the appropriations requested for the Legislative 18
Branch of the State government, as certified by the presiding officers of the General 19
Assembly; 20
(4) without revision, the appropriations requested for the Judicial Branch 21
of the State government, as certified by the Chief Justice of the Supreme Court of Maryland; 22
(5) the appropriations requested by the Governor for the Executive Branch 23
of the State government; 24
(6) the appropriations required by law to be included with the 25
appropriations for the Executive Branch; 26
(7) appropriations for the salaries required by law to be paid by the State; 27
and 28
(8) any other appropriations required by the Maryland Constitution or 29
other law to be included in the budget bill. 30
(b) The Governor shall use the current salary plan of the Secretary of Budget and 31
Management as the basis for the appropriations to pay those salaries to which the plan 32 HOUSE BILL 114 3
applies. 1
(C) IN ADDITION TO THE AP PROPRIATIONS REQUIRE D IN SUBSECTION (A) 2
OF THIS SECTION, THE GOVERNOR SHALL INCLUD E IN EACH ANNUAL BUD GET BILL 3
THE APPROPRIATIONS N ECESSARY TO IMPLEMEN T AND FUND ALL TERMS WITHIN 4
EACH MEMORANDUM OF U NDERSTANDING BETWEEN : 5
(1) THE STATE AND EACH EXCLUS IVE REPRESENTATIVE O F ITS 6
EMPLOYEES; 7
(2) STATE INSTITUTIONS OF HIGHER EDUCATION , INCLUDING THE 8
UNIVERSITY SYSTEM OF MARYLAND, AND EACH EXCLUSIVE R EPRESENTATIVE OF 9
THEIR EMPLOYEES ; AND 10
(3) THE MARYLAND ENVIRONMENTAL SERVICE AND EACH 11
EXCLUSIVE REPRESENTA TIVE OF ITS EMPLOYEE S. 12
Article – State Personnel and Pensions 13
3–103. 14
This title and any agreement under this title do not limit or otherwise interfere with 15
the powers of the Governor or the Maryland General Assembly [under], EXCEPT TO 16
OPERATE IN ACCORDANC E WITH AND HAVE THE EFFECT REQUIRED BY Article III, § 17
52 of the Maryland Constitution. 18
3–501. 19
(a) (1) The following individuals or entities shall designate one or more 20
representatives to participate as a party in collective bargaining on behalf of the State or 21
the following institutions: 22
(i) on behalf of the State, the Governor; 23
(ii) on behalf of the Maryland Environmental Service, the Board of 24
Directors of the Service; 25
(iii) on behalf of the University System of Maryland, the Chancellor; 26
and 27
(iv) on behalf of Morgan State University, St. Mary’s College of 28
Maryland, or Baltimore City Community College, the governing board of the institution. 29
(2) The exclusive representative shall designate one or more 30
representatives to participate as a party in collective bargaining on behalf of the exclusive 31
representative. 32 4 HOUSE BILL 114
(b) (1) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 1
parties shall meet at reasonable times [and] BETWEEN JULY 1 AND SEPTEMBER 30 TO 2
engage in collective bargaining in good faith[, including facilitating the meaningful use of 3
a fact finder under subsection (c)(3) of this section,] and to conclude a written memorandum 4
of understanding or other written understanding as defined under § 3–101(d)(1)(i)2 of this 5
title. 6
(2) (I) FOR EACH BARGAINING U NIT, WHENEVER A MEMORANDU M 7
OF UNDERSTANDING IS TO BE NEGOTIATED , REOPENED, OR AMENDED , THE PARTIES 8
SHALL FIRST SELECT A NEUTRAL A RBITRATOR FOR THE NE GOTIATIONS ON OR 9
BEFORE JULY 15. 10
(II) THE ARBITRATOR SHALL BE SELECTED FROM A L IST OF 15 11
ARBITRATORS PROVIDED BY THE AMERICAN ARBITRATION ASSOCIATION’S LABOR 12
ARBITRATION PANEL . 13
(III) THE LIST SHALL CONSIS T OF QUALIFIED , NATIONWIDE 14
ARBITRATORS WHO ARE MEMBERS OF THE NATIONAL ACADEMY OF ARBITRATION. 15
(IV) THE PARTIES SHALL SEL ECT THE ARBITRATOR B Y 16
ALTERNATELY STRIKING NAMES FROM THE LIST UNTIL ONE NAME REMAI NS. 17
(V) THE SELECTED ARBITRAT OR MUST BE ABLE AND 18
AVAILABLE TO PERFOR M THE DUTIES AND TO HOLD HEARINGS , BOTH IN PERSON 19
AND THROUGH REMOTE C OMMUNICATION , CONSISTENT WITH THIS TITLE. 20
(VI) THE ARBITRATOR SHALL HAVE THE POWERS AND 21
RESPONSIBILITIES UND ER § 3–503 OF THIS SUBTITLE. 22
(VII) THE SELECTED ARBITRAT OR SHALL ACCEP T THE 23
APPOINTMENT BEFORE JULY 15, OR THE PARTIES MAY A GREE TO MAKE AN 24
ALTERNATIVE APPOINTM ENT FROM: 25
1. THE LIST ORIGINALLY PROVIDED BY THE AMERICAN 26
ARBITRATION ASSOCIATION; OR 27
2. A LIST OF NATIONWIDE ARBITRATORS PROVIDED BY 28
THE FEDERAL MEDIATION AND CONCILIATION SERVICE. 29
(3) THE PARTIES SHALL MAK E A REASONABLE EFFOR T TO BEGIN 30
NEGOTIATIONS ON OR N EAR JULY 1, INCLUDING THE EXCHAN GE OF INFORMATION 31
NECESSARY TO RESPONS IBLY CONDUCT AND CON CLUDE NEGOTIATIONS B Y 32
SEPTEMBER 30. 33 HOUSE BILL 114 5
(c) [(1) The parties shall make every reasonable effort to conclude negotiations 1
in a timely manner for inclusion by the principal unit in its budget request to the Governor. 2
(2) (i) The parties shall conclude negotiations before January 1 for any 3
item requiring an appropriation of funds for the fiscal year that begins on the following 4
July 1. 5
(ii) In the budget bill submitted to the General Assembly, the 6
Governor shall include any amounts in the budgets of the principal units required to 7
accommodate any additional cost resulting from the negotiations, including the actuarial 8
impact of any legislative changes to any of the State pension or retirement systems that 9
are required, as a result of the negotiations, for the fiscal year beginning the following July 10
1 if the legislative changes have been negotiated to become effective in that fiscal year. 11
(3) (i) If the parties do not conclude negotiations for the next fiscal year 12
before October 25, either party may request that a fact finder be employed to resolve the 13
issues. 14
(ii) The fact finder shall be employed no later than November 1. 15
(iii) A fact finder shall be a neutral party appointed by alternate 16
striking from a list by the parties provided: 17
1. by the Federal Mediation and Conciliation Service; or 18
2. under the Labor Arbitration Rules of the American 19
Arbitration Association. 20
(iv) The fact finder: 21
1. may give notice and hold hearings in accordance with the 22
Administrative Procedure Act; 23
2. may administer oaths and take testimony and other 24
evidence; 25
3. may issue subpoenas; and 26
4. before November 20, shall make written recommendations 27
regarding wages, hours, and working conditions, and any other terms or conditions of 28
employment that may be in dispute. 29
(v) The written recommendations of the fact finder shall be delivered 30
to the Governor, the exclusive representative, the President of the Senate, and the Speaker 31
of the House of Delegates by the Secretary on or before December 1. 32
6 HOUSE BILL 114
(d)] (1) A memorandum of understanding [that incorporates all matters of 1
agreement reached by the parties] REACHED BY MUTUAL AG REEMENT shall be executed 2
by the exclusive representative and: 3
(i) for a memorandum of understanding relating to the State, the 4
Governor or the Governor’s designee; 5
(ii) for a memorandum of understanding relating to the Maryland 6
Environmental Service, the Board of Directors of the Service; 7
(iii) for a memorandum of understanding relating to a system 8
institution, the Chancellor or the Chancellor’s designee; and 9
(iv) for a memorandum of understanding relating to Morgan State 10
University, St. Mary’s College of Maryland, or Baltimore City Community College, the 11
governing board of the institution or the governing board’s designee. 12
(2) To the extent [these] matters INCORPORATED IN A ME MORANDUM 13
OF UNDERSTANDING require legislative approval or the appropriation of funds, the 14
matters shall be [recommended] REFERRED to the General Assembly for approval or for 15
the appropriation of funds AS REQUIRED UNDER ARTICLE III, § 52 OF THE MARYLAND 16
CONSTITUTION . 17
(3) To the extent matters involving a State institution of higher education 18
require legislative approval, the legislation shall be [recommended] REFERRED to the 19
Governor [for submission to] AND the General Assembly. 20
[(e)] (D) (1) Except as provided in paragraph (2) of this subsection, 21
negotiations for a memorandum of understanding shall be considered closed sessions under 22
§ 3–305 of the General Provisions Article. 23
(2) An exclusive representative may not be considered a public body under 24
§ 3–101 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 114 7
3–502. 1
(a) Collective bargaining shall include all matters relating to: 2
(1) wages, hours, FRINGE BENEFITS , HEALTH BENEFITS , and other 3
terms and conditions of employment; and 4
(2) the time and manner of access to a new employee program in 5
accordance with § 22–207 of the State Government Article. 6
(b) Notwithstanding subsection (a) of this section, the representatives of the 7
State, the Maryland Environmental S ervice, a system institution, Morgan State 8
University, St. Mary’s College of Maryland, and Baltimore City Community College: 9
(1) may not be required to negotiate over any matter that is inconsistent 10
with applicable law; and 11
(2) may negotiate and reach agreement with regard to any such matter 12
THAT IS INCONSISTENT WITH APPLICABLE LAW only if it is understood that, WITH 13
RESPECT TO THE MATTE R, the agreement [with respect to such matter] OR 14
MEMORANDUM OF UNDERS TANDING cannot become effective unless the applicable law 15
is amended by the General Assembly. 16
3–503. 17
(A) (1) A NEUTRAL ARBITRATOR S ELECTED UNDER § 3–501(B) OF THIS 18
SUBTITLE: 19
(I) MAY MEDIATE OR AID I N THE RESOLUTION OF ANY DISPUTE 20
BETWEEN THE PARTIES REGARDING THE CONDUCT OF N EGOTIATIONS, INCLUDING 21
WHETHER THE CONDUCT OF A PARTY IS IN GOO D FAITH; 22
(II) MAY RECEIVE FROM THE PARTIES COPIES OF IN FORMATION 23
REQUESTS PRESENTED A ND RESPONSES RECEIVE D, TO MEDIATE OR AID IN THE 24
RESOLUTION OF DISPUT ES OVER THE TIME LINESS AND SUFFICIEN CY OF 25
INFORMATION DEMANDS AND PRODUCTION ; 26
(III) MAY ISSUE OPINIONS I N ORDER TO HELP TO R ESOLVE 27
DISPUTES OVER REQUES TS FOR INFORMATION O R PROMOTE BARGAINING IN GOOD 28
FAITH CONSISTENT WIT H THIS TITLE; AND 29
(IV) MAY DIRECT PRODUCTIO N OF ESTIMATES OF REVE NUES 30
AND EXPENDITURES COM PILED BY THE STATE BOARD OF REVENUE ESTIMATES, 31
THE BUREAU OF REVENUE ESTIMATES, OR THE CONSENSUS REVENUE 32
MONITORING AND FORECASTING GROUP. 33 8 HOUSE BILL 114
(2) (I) THE OPINIONS AND GUID ANCE ISSUED BY THE N EUTRAL 1
ARBITRATOR U NDER THIS SUBSECTION SHALL BE ADVISORY ON THE PARTIES AND 2
THE GOVERNOR. 3
(II) THE PROCESS SET OUT I N THIS SUBSECTION DO ES NOT 4
DIMINISH OR LIMIT TH E RIGHTS OF ANY PART Y TO FILE AND PURSUE A COMPLAINT 5
OF UNFAIR LABOR PRAC TICES BEFORE THE BOARD. 6
(B) (1) IF AN IMPASSE IS DECL ARED ON OR AFTER OCTOBER 1, 7
ARBITRATION SHALL PR OCEED AS DESCRIBED I N THIS SUBSECTION . 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 PARTY , 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 MEMORAND UM OF 15
UNDERSTANDING PROVIS IONS AGREED TO BY TH E PARTIES BEFORE THE IMPASSE 16
WAS DECLARED THAT AR E TO BE INCLUDED THR OUGH WRITTEN MUTUAL 17
AGREEMENT ; AND 18
3. SUBJECT TO SUBPARAGR APH (II) OF THIS 19
PARAGRAPH , DETAILED FURTHER PRO VISIONS THAT A PARTY IS PROPOSING FOR 20
INCLUSION IN A MEMOR ANDUM OF UNDERSTANDI NG. 21
(II) FURTHER PROVISIONS ARE LIMITED TO SPECIFIC 22
PROPOSALS THAT WERE SUBMITTED IN WRITING TO THE OTHER PARTY A ND 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 MEMORANDUM OF UNDERSTANDING THROUG H WRITTEN MUTUAL 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 TH E IMPASSE. 29
(4) (I) WITHIN 30 CALENDAR DAYS AFTER A DECLARED IMPASSE , 30
THE NEUTRAL ARBITRAT OR SHALL HOLD A FORM AL HEARING AT WHICH THE 31
PARTIES MAY SUBMIT , IN WRITING OR ORAL T ESTIMONY, ALL INFORMATION OR 32
DATA SUPPORTING THE FINAL POSITIONS. 33 HOUSE BILL 114 9
(II) ABSENT MUTUAL AGREEME NT BETWEEN THE PARTI ES, OR 1
AS OTHERWISE ORDERED BY THE NEUTRAL ARBITRATOR , THE FORMAL HEARING 2
SHALL CONCLUDE WITHI N 45 CALENDAR DAYS AFTER THE IMPASSE DATE . 3
(5) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 4
PARAGRAPH , THE ARBITRATION SHAL L CONCLUDE WITH A WR ITTEN AWARD THAT 5
SUSTAINS IN ITS ENTI RETY THE LAST, BEST, AND FINAL OFFER OF O NE OF THE 6
PARTIES. 7
(II) BEFORE A WRITTEN AWAR D IS ISSUED , BY WRITTEN 8
AGREEMENT SIGNED BY THE REPRESENTATIVES OF THE PARTIES PARTI CIPATING IN 9
THE ARBITRATION , THE PARTIES MAY DIRE CT THE NEUTRAL ARBIT RATOR TO RULE 10
ON SPECIFICALLY IDENTIFIED TOPICS OF BARGAINING . 11
(6) (I) THE NEUTRAL ARBITRATO R SHALL ISSUE A PREL IMINARY 12
WRITTEN AWARD ON OR BEFORE DECEMBER 5. 13
(II) THE PRELIMINARY WRITT EN AWARD SHALL ADDRE SS ALL 14
PROVISIONS THAT EACH PARTY PROPOSED IN IT S RESPECTIVE FINAL POSITION FOR 15
INCLUSION IN A MEMOR ANDUM OF UNDERSTANDI NG. 16
(III) WITHIN 5 BUSINESS DAYS AFTER RECEIPT OF THE 17
PRELIMINARY WRITTEN AWARD, THE PARTIES SHALL RE VIEW THE AWARD AND M AY 18
SEVERALLY OR MUTUALL Y REQUEST CHANGES OR ADJUSTMENTS IN THE A WARD. 19
(IV) ON OR BEFORE DECEMBER 15, THE NEUTRAL ARBITRAT OR 20
SHALL ISSUE A FINAL WRITTEN AWARD IN WHI CH THE ARBITRATOR : 21
1. SHALL ORDER IMPLEMEN TATION OF THE LAST , BEST, 22
AND FINAL OFFER OF E ITHER PARTY IN ITS E NTIRETY, INCORPORATING ANY 23
VOLUNTARILY –AGREED–TO TERMS BETWEEN THE PARTIES; AND 24
2. SHALL INCLUDE : 25
A. ANY VOLUNTARILY –AGREED–TO TERMS BETWEEN 26
THE PARTIES; AND 27
B. ANY PRIOR TERM THAT BY AGREEMENT IS NOT TO BE 28
CHANGED FOR THE NEXT FISCAL YEAR. 29
(V) AFTER DECEMBER 15, IF REQUESTED BY EITH ER PARTY, 30
THE NEUTRAL ARBITRAT OR SHALL ISSUE BY JANUARY 20 OF THE IMMEDIATELY 31 10 HOUSE BILL 114
FOLLOWING YEAR A STA TEMENT OF REASONS FO R THE FINAL WRITTEN AWARD. 1
(7) THE NEUTRAL ARBITRATO R SHALL CONSIDER THE FOLLOWING 2
WHEN DEVELOPING A WR ITTEN AWARD: 3
(I) THE LAWFUL AUTHORITY OF THE EMP LOYER, INCLUDING 4
THE OBLIGATION OF TH E EMPLOYER TO USE SP ECIAL FUNDS ONLY FOR 5
AUTHORIZED PURPOSES UNDER LIMITATIONS IM POSED BY FEDERAL OR STATE LAW; 6
(II) STIPULATIONS OF THE PARTIES; 7
(III) THE INTERESTS AND WE LFARE OF THE PUBLIC ; 8
(IV) THE FINANCIAL ABILIT Y OF THE EMPLOYER TO MEET 9
COSTS, WITHOUT THE PREMISE THAT THE EMPLOYER MA Y NEED TO INCREASE O R 10
IMPOSE NEW TAXES , FEES, OR CHARGES , OR DEVELOP OTHER SOU RCES OF 11
REVENUE; 12
(V) THE PRESENT AND FUTU RE GENERAL ECONOMIC 13
CONDITION OF THE STATE OR STATE INSTITUTIONS OF HIGHER EDUCATION ; 14
(VI) COMPARISONS OF WAGES , HOURS, AND CONDITIONS OF 15
EMPLOYMENT OF THE EM PLOYEES INVOLVED WIT H ARBITRATION WITH T HE WAGES, 16
HOURS, AND CONDITIONS OF EM PLOYMENT OF OTHER EM PLOYEES PERFORMING 17
SIMILAR SERVICES IN PUBLIC E MPLOYMENT IN ADJACEN T STATES; 18
(VII) COMPARISONS OF COLLE CTIVE BARGAINING PAT TERNS IN 19
OTHER STATES AND AMO NG COUNTY EMPLOYEES IN THE STATE; 20
(VIII) CONSUMER PRICES FOR GOODS AND SERVICES A S DEFINED 21
BY PUBLIC AND PRIVAT E SOURCES; 22
(IX) THE OVERALL COMPENSA TION PRESENTLY RECEI VED BY 23
THE EMPLOYEES , INCLUDING DIRECT WAG E COMPENSATION , VACATION, HOLIDAYS, 24
EXCUSED TIME OFF , INSURANCE AND PENSIO NS COSTS, MEDICAL AND 25
HOSPITALIZATION BENE FITS, THE CONTINUITY AND S TABILITY OF EMPLOYME NT, 26
AND ALL OTHER RECEIV ED BENEFITS; 27
(X) CHANGES IN ANY OF TH E FOREGOING CIRCUMST ANCES 28
DURING THE PENDENCY OF THE ARBITRATION ; AND 29
(XI) OTHER FACTORS THAT A RE NORMALLY OR TRADI TIONALLY 30
TAKEN INTO CONSIDERA TION IN THE DETERMIN ATION OF WAGES , HOURS, AND 31 HOUSE BILL 114 11
CONDITIONS OF EMPLOY MENT THROUGH VOLUNTA RY COLLECTIVE BARGAI NING, 1
MEDIATION, ARBITRATION, OR OTHERWISE BETWEEN THE PARTIES IN PUBLI C 2
SERVICE OR PRIVATE E MPLOYMENT . 3
(C) THE DECISION OF THE N EUTRAL ARBITRATOR SH ALL BE FINAL AND 4
BINDING ON THE PARTI ES. 5
(D) THE STATE, A STATE INSTITUTION OF HIGHER EDUCATION , AND THE 6
MARYLAND ENVIRONMENTAL SERVICE AND THE GOVERNOR SHALL TAKE A LL 7
ACTIONS NECESSARY TO CARRY OUT AND EFFECT UATE THE FINAL WRITT EN AWARD 8
AND PLACE INTO EFFEC T THE MEMORANDUM OF UNDERSTANDING . 9
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE PARTIES 10
AT ANY TIME MAY AMEN D OR MODIFY THE FINA L WRITTEN AWARD AND , BY CONSENT, 11
THE AMENDMENTS OR MO DIFICATIONS SHALL BE APPROVED BY THE PART IES AND 12
PLACED IN A SUPPLEME NTAL WRITTEN AWARD B Y THE NEUTRA L ARBITRATOR THAT 13
SHALL BE FINAL AND B INDING. 14
(2) A SUPPLEMENTAL WRITTEN AWARD UNDER PARAGRAP H (1) OF 15
THIS SUBSECTION SHAL L TAKE EFFECT ON THE DATE OF THE ORDER OF THE 16
NEUTRAL ARBITRATOR A ND MAY NOT REQUIRE R ATIFICATION UNDER § 3–601 OF 17
THIS TITLE. 18
(F) A DEADLINE IN THIS SEC TION MAY BE MODIFIED , BASED ON GOOD 19
CAUSE, BY MUTUAL AGREEMENT OF THE PARTIES OR BY ORDER OF THE NEUTRAL 20
ARBITRATOR. 21
(G) (1) THE COSTS OF THE SERV ICES OF THE NEUTRAL ARBITRATOR 22
SHALL BE SHARED EQUA LLY BY THE PARTIES . 23
(2) ALL OTHER COSTS INCURRED B Y EITHER PARTY TO CO MPLY WITH 24
THIS SECTION SHALL B E THE RESPONSIBILITY OF THE PARTY INCURRI NG THE 25
COSTS. 26
3–603. 27
(a) A memorandum of understanding [agreed to and ratified under § 3–601 of this 28
subtitle] may not expire until it is succeeded by a memorandum of understanding that is 29
agreed to and ratified OR ADOPTED BY ARBITR ATION under this title. 30
(b) Notwithstanding § 3–601(b) of this subtitle, all terms of a memorandum of 31
understanding shall continue in force and effect without change until a successor 32
memorandum of understanding is agreed to and ratified. 33
12 HOUSE BILL 114
(c) (1) Based on a verified complaint by an exclusive representative, the 1
exclusive representative may file an action in a circuit court against the State, the 2
Maryland Environmental Service, a system institution, Morgan State University, St. 3
Mary’s College of Maryland, or Baltimore City Community College to enforce the terms of 4
this section. 5
(2) On receipt of an action submitted by the exclusive representative, the 6
court shall issue a status quo order without a finding of irreparable harm to maintain a 7
memorandum of understanding and the terms in effect pending a final order in the action. 8
SECTION 2. AND BE IT FURTHER ENACTED, (Three –fifths of all the members 9
elected to each of the two Houses concurring), That it be proposed that the Maryland 10
Constitution read as follows: 11
Article III – Legislative Department 12
52. 13
(1) The General Assembly shall not appropriate any money out of the Treasury 14
except in accordance with the provisions of this section. 15
(2) Every appropriation bill shall be either a Budget Bill, or a Supplementary 16
Appropriation Bill, as hereinafter provided. 17
(3) On the third Wednesday in January in each year, (except in the case of a newly 18
elected Governor, and then not later than ten days after the convening of the General 19
Assembly), unless such time shall be extended by the General Assembly, the Governor shall 20
submit to the General Assembly a Budget for the next ensuing fiscal year. Each Budget 21
shall contain a complete plan of proposed expenditures and estimated revenues for said 22
fiscal year and shall show the estimated surplus or deficit of revenues at the end of the 23
preceding fiscal year. EACH BUDGET SHALL ALSO CON TAIN THE APPROP RIATIONS 24
NECESSARY TO IMPLEME NT ALL TERMS AND CON DITIONS OF EMPLOYMEN T IN EACH 25
MEMORANDUM OF UNDERS TANDING CONCLUDED WI TH THE STATE, WHETHER 26
REACHED THROUGH MUTU AL AGREEMENT OR ARBI TRATION THAT IS BIND ING ON 27
THE PARTIES, THE GOVERNOR, STATE INSTITUTIONS OF HIGHER EDUCATION , AND 28
THE MARYLAND ENVIRONMENTAL SERVICE, FOR THE NEXT ENSUING FISCAL YEAR 29
FOR STATE EMPLOYEES IN TH E VARIOUS BRANCHES A ND DEPARTMENTS OF STATE 30
GOVERNMENT , INCLUDING HIGHER EDU CATION. Accompanying each Budget shall be a 31
statement showing: (a) the revenues and expenditures for the preceding fiscal year; (b) the 32
current assets, liabilities, reserves and surplus or deficit of the State; (c) the debts and 33
funds of the State; (d) an estimate of the State’s financial condition as of the beginning and 34
end of the preceding fiscal year; (e) CHANGES IN WAGES , HOURS, FRINGE BENEFITS , 35
HEALTH BENEFITS , AND OTHER TERMS AND CONDITIONS OF EMPLOY MENT FOR 36
STATE EMPLOYEES INCLU DED IN EACH MEMORAND UM OF UNDERSTANDING 37
COVERING STATE EMPLOYEES FOR T HE NEXT ENSUIN G FISCAL YEAR; AND (F) any 38
explanation the Governor may desire to make as to the important features of the Budget 39 HOUSE BILL 114 13
and any suggestions as to methods for reduction or increase of the State’s revenue. 1
(4) Each Budget shall embrace an estimate of all appropriations in such form and 2
detail as the Governor shall determine or as may be prescribed by law, as follows: (a) for 3
the General Assembly as certified to the Governor in the manner hereinafter provided; (b) 4
for the Executive Department; (c) for the Judiciary Department, as provided by law, as 5
certified to the Governor; (d) to pay and discharge the principal and interest of the debt of 6
the State in conformity with Section 34 of Article III of the Constitution, and all laws 7
enacted in pursuance thereof; (e) for the salaries AND FRINGE BENEFITS payable by the 8
State and under the Constitution and laws of the State, INCLUDING THOSE SALA RIES 9
AND BENEFITS COMMITT ED UNDER EACH MEMORA NDUM OF UNDERSTANDIN G 10
COVERING STATE EMPLOYEES ; (f) for the establishment and maintenance throughout 11
the State of a thorough and efficient system of public schools in conformity with Article 8 12
of the Constitution and with the laws of the State; and (g) for such other purposes as are 13
set forth in the Constitution or laws of the State. 14
(5) The Governor shall deliver to the presiding officer of each House the Budget 15
and a bill for all the proposed appropriations of the Budget classified and in such form and 16
detail as the Governor shall determine or as may be prescribed by law; and the presiding 17
officer of each House shall promptly cause said bill to be introduced therein, and such bill 18
shall be known as the “Budget Bill.” The Governor may, with the consent of the General 19
Assembly, before final action thereon by the General Assembly, amend or supplement said 20
Budget to correct an oversight, provide funds contingent on passage of pending legislation 21
or, in case of an emergency, by delivering such an amendment or supplement to the 22
presiding officers of both Houses; and such amendment or supplement shall thereby become 23
a part of said Budget Bill as an addition to the items of said bill or as a modification of or a 24
substitute for any item of said bill such amendment or supplement may affect. 25
(5a) The Budget and the Budget Bill as submitted by the Governor to the General 26
Assembly shall have a figure for the total of all proposed appropriations and a figure for 27
the total of all estimated revenues available to pay the appropriations, and the figure for 28
total proposed appropriations shall not exceed the figure for total estimated revenues. 29
Neither the Governor in submitting an amendment or supplement to the Budget Bill nor 30
the General Assembly in amending the Budget Bill shall thereby cause the figure for total 31
proposed appropriations to exceed the figure for total estimated revenues, including any 32
revisions, and in the Budget Bill as enacted the figure for total estimated revenues always 33
shall be equal to or exceed the figure for total appropriations. 34
(6) The General Assembly shall not amend the Budget Bill so as to affect either 35
the obligations of the State under Section 34 of Article III of the Constitution, or the 36
provisions made by the laws of the State for the establishment and maintenance of a system 37
of public schools or the payment of any salaries required to be paid by the State of Maryland 38
by the Constitution. 39
(6a) In enacting a balanced Budget Bill each fiscal year as required under this 40
Section, the General Assembly may amend the bill by increasing or diminishing the items 41
therein relating to the General Assembly, and by increasing or diminishing the items 42 14 HOUSE BILL 114
therein relating to the judiciary, but except as hereinbefore specified, may not alter the bill 1
except to strike out or reduce items therein, provided, however, that the salary or 2
compensation of any public officer may not be decreased during the public officer’s term of 3
office. When passed by both Houses, the Budget Bill shall be presented to the Governor for 4
approval or disapproval according to Section 17 of Article II of this Constitution. 5
(6b) In enacting a balanced Budget Bill as required under this Section for fiscal 6
year 2024 and each fiscal year thereafter, the General Assembly may amend the bill by 7
increasing, diminishing, or adding items therein relating to the General Assembly, by 8
increasing, diminishing, or adding items therein relating to the judiciary, and by 9
increasing, diminishing, or adding items therein relating to the Executive Department, 10
provided that the total of the appropriation for the Executive Department approved by the 11
General Assembly does not exceed the total proposed appropriation for the Executive 12
Department submitted by the Governor. The salary or compensation of any public officer 13
may not be decreased during the public officer’s term of office. When passed by both Houses, 14
the Budget Bill shall be a law immediately without further action by the Governor. 15
(7) The Governor and such representatives of the executive departments, boards, 16
officers and commissions of the State expending or applying for State’s moneys, as have 17
been designated by the Governor for this purpose, shall have the right, and when requested 18
by either House of the General Assembly, it shall be their duty to appear and be heard with 19
respect to any Budget Bill during the consideration thereof, and to answer inquiries relative 20
thereto. 21
(8) Supplementary Appropriation Bill. Either House may consider other 22
appropriations but both Houses shall not finally act upon such appropriations until after 23
the Budget Bill has been finally acted upon by both Houses, and no such other 24
appropriation shall be valid except in accordance with the provisions following: (a) Every 25
such appropriation shall be embodied in a separate bill limited to some single work, object 26
or purpose therein stated and called herein a Supplementary Appropriation Bill; (b) Each 27
Supplementary Appropriation Bill shall provide the revenue necessary to pay the 28
appropriation thereby made by a tax, direct or indirect, to be levied and collected as shall 29
be directed in said bill; (c) No Supplementary Appropriation Bill shall become a law unless 30
it be passed in each House by a vote of a majority of the whole number of the members 31
elected, and the yeas and nays recorded on its final passage; (d) Each Supplementary 32
Appropriation Bill shall be presented to the Governor of the State as provided in Section 33
17 of Article 2 of the Constitution and thereafter all the provisions of said section shall 34
apply. 35
(9) Nothing in this section shall be construed as preventing the General Assembly 36
from passing at any time, in accordance with the provisions of Section 28 of Article 3 of the 37
Constitution and subject to the Governor’s power of approval as provided in Section 17 of 38
Article 2 of the Constitution, an appropriation bill to provide for the payment of any 39
obligation of the State within the protection of Section 10 of Article 1 of the Constitution of 40
the United States. 41
(10) If the Budget Bill shall not have been finally acted upon by the Legislature 42 HOUSE BILL 114 15
seven days before the expiration of the regular session, the Governor shall issue a 1
proclamation extending the session for some further period as may, in the Governor’s 2
judgment, be necessary for the passage of such bill; but no matter other than such bill shall 3
be considered during such extended session except a provision for the cost thereof. 4
(11) For the purpose of making up the Budget, the Governor shall require from the 5
proper State officials (including all executive departments, all executive and administrative 6
offices, bureaus, boards, commissions and agencies that expend or supervise the 7
expenditure of, and all institutions applying, for State moneys and appropriations) such 8
itemized estimates and other information, in such form and at such times as directed by 9
the Governor. An estimate for a program required to be funded by a law which will be in 10
effect during the fiscal year covered by the Budget and which was enacted before July 1 of 11
the fiscal year prior to that date shall provide a level of funding not less than that prescribed 12
in the law. The estimates for the Legislative Department, certified by the presiding officer 13
of each House, of the Judiciary, as provided by law, certified by the Chief Justice of the 14
Supreme Court of Maryland, and for the public schools, as provided by law, shall be 15
transmitted to the Governor, in such form and at such times as directed by the Governor, 16
and shall be included in the Budget without revision. 17
(12) The Governor may provide for public hearings on all estimates and may 18
require the attendance at such hearings of representatives of all agencies, and for all 19
institutions applying for State moneys. After such public hearings the Governor may, in 20
the Governor’s discretion, revise all estimates except those for the legislative and judiciary 21
departments, and for the public schools, as provided by law, and except that the Governor 22
may not reduce an estimate for a program below a level of funding prescribed by a law 23
which will be in effect during the fiscal year covered by the Budget, and which was enacted 24
before July 1 of the fiscal year prior thereto. 25
(13) The General Assembly may, from time to time, enact such laws not 26
inconsistent with this section, as may be necessary and proper to carry out its provisions. 27
(14) In the event of any inconsistency between any of the provisions of this Section 28
and any of the other provisions of the Constitution, the provisions of this Section shall 29
prevail. But nothing herein shall in any manner affect the provisions of Section 34 of Article 30
3 of the Constitution or of any laws heretofore or hereafter passed in pursuance thereof, or 31
be construed as preventing the Governor from calling extraordinary sessions of the General 32
Assembly, as provided by Section 16 of Article 2, or as preventing the General Assembly at 33
such extraordinary sessions from considering any emergency appropriation or 34
appropriations. 35
(15) If any item of any appropriation bill passed under the provisions of this 36
Section shall be held invalid upon any ground, such invalidity shall not affect the legality 37
of the bill or of any other item of such bill or bills. 38
SECTION 3. AND BE IT FURTHER ENACTED, That the General Assembly 39
determines that the amendment to the Maryland Constitution proposed by Section 2 of this 40
Act affects multiple jurisdictions and that the provisions of Article XIV, § 1 of the Maryland 41 16 HOUSE BILL 114
Constitution concerning local approval of constitutional amendments do not apply. 1
SECTION 4. AND BE IT FURTHER ENACTED, That: 2
(a) The amendment to the Maryland Constitution proposed by Section 2 of this 3
Act shall be submitted to the qualified voters of the State at the next general election to be 4
held in November 2024 for adoption or rejection pursuant to Article XIV of the Maryland 5
Constitution. 6
(b) (1) At that general election, the vote on the proposed amendment to the 7
Constitution shall be by ballot, and on each ballot there shall be printed the words “For the 8
Constitutional Amendment” and “Against the Constitutional Amendment”, as now 9
provided by law. 10
(2) At that general election, a question substantially similar to the 11
following shall be submitted to the qualified voters of the State: 12
“Question ___ – Constitutional Amendment 13
Providing that each budget shall include expenditures necessary to implement wages, 14
hours, fringe benefits, health benefits, and other terms and conditions of employment for 15
State employees concluded in each memorandum of understanding covering State 16
employees.”. 17
(c) Immediately after the election, all returns shall be made to the Governor of 18
the vote for and against the proposed amendment, as directed by Article XIV of the 19
Maryland Constitution, and further proceedings had in accordance with Article XIV. 20
SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 21
4 of this Act, this Act shall take effect July 1, 2024. 22