EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0159*
HOUSE BILL 159
P4 CONSTITUTIONAL AMENDMENT 5lr0791
HB 114/24 – APP (PRE–FILED) CF SB 288
By: Delegate J. Lewis
Requested: September 10, 2024
Introduced and read first time: January 8, 2025
Assigned to: Appropriations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 27, 2025
CHAPTER ______
AN ACT concerning 1
Arbitration Reform for State Employees Act of 2025 2
FOR the purpose of altering the collective bargaining process for certain State employees, 3
including by requiring the selection of a neutral arbitrator to oversee all aspects of 4
collective bargaining, establishing a process of arbitration in the event of impasse, 5
and 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 2024 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
(2024 Replacement Volume and 2024 Supplement) 21
2 HOUSE BILL 159
BY adding to 1
Article – State Personnel and Pensions 2
Section 3–503 3
Annotated Code of Maryland 4
(2024 Replacement Volume and 2024 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
applies. 33 HOUSE BILL 159 3
(C) IN ADDITION TO THE AP PROPRIATIONS REQUIRE D UNDER SUBSECTION 1
(A) OF THIS SECTION , THE GOVERNOR SHALL INCLUDE I N EACH ANNUAL BUDGET 2
BILL THE APPROPRIATI ONS NECESSARY TO IMP LEMENT AND FUND ALL TERMS 3
WITHIN EACH MEMORAND UM OF UNDERSTANDING BETWEEN: 4
(1) THE STATE AND EACH EXCLUS IVE REPRESENTATIVE O F ITS 5
EMPLOYEES; AND 6
(2) STATE INSTITUTIONS OF HIGHER EDUCATION , INCLUDING THE 7
UNIVERSITY SYSTEM OF MARYLAND, AND EACH EXCLUSIVE R EPRESENTATIVE OF 8
THEIR EMPLOYEES ; AND 9
(3) THE MARYLAND ENVIRONMENTAL SERVICE AND EACH 10
EXCLUSIVE REPRESENTA TIVE OF ITS EMPLOYEE S. 11
Article – State Personnel and Pensions 12
3–103. 13
This title and any agreement under this title do not limit or otherwise interfere with 14
the powers of the Governor or the Maryland General Assembly [under] EXCEPT TO 15
OPERATE IN ACCORDANC E WITH AND HAVE THE EFFECT REQUIRED BY Article III, § 16
52 of the Maryland Constitution. 17
3–501. 18
(a) (1) The following individuals or entities shall designate one or more 19
representatives to participate as a party in collective bargaining on behalf of the State or 20
the following institutions: 21
(i) on behalf of the State, the Governor; 22
(ii) on behalf of the Maryland Environmental Service, the Board of 23
Directors of the Service; 24
(iii) on behalf of the University System of Maryland, the Chancellor; 25
and 26
(iv) on behalf of Morgan State University, St. Mary’s College of 27
Maryland, or Baltimore City Community College, the governing board of the institution. 28
(2) The exclusive representative shall designate one or more 29
representatives to participate as a party in collective bargaining on behalf of the exclusive 30
representative. 31
4 HOUSE BILL 159
(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) THIS PARAGRAPH DOES N OT APPLY TO A BARGAINING UNIT 7
IN A STATE INSTITUTION OF HIGHER EDUCATION , INCLUDING THE UNIVERSITY 8
SYSTEM OF MARYLAND. 9
(II) 1. FOR EACH BARGAINING U NIT, WHENEVER A 10
MEMORANDUM OF UNDERS TANDING IS TO BE NEG OTIATED, REOPENED, OR 11
AMENDED, EITHER PARTY MAY REQ UEST A NE UTRAL ARBITRATOR FOR THE 12
NEGOTIATIONS ON OR A FTER JULY 1. 13
2. IF NEGOTIATIONS HAVE NOT CONCLUDED BY 14
SEPTEMBER 1, THE PARTIES SHALL SE LECT A NEUTRAL ARBIT RATOR ON OR BEFORE 15
SEPTEMBER 15. 16
(II) (III) THE ARBITRATOR SHALL BE SELECTED FROM A L IST 17
OF 15 ARBITRATORS PROVIDED BY THE AMERICAN ARBITRATION ASSOCIATION’S 18
LABOR ARBITRATION PA NEL. 19
(III) (IV) THE LIST SHALL CONSIS T OF QUALIFIED , 20
NATIONWIDE ARBITRATO RS WHO ARE MEMBERS O F THE NATIONAL ACADEMY OF 21
ARBITRATION. 22
(IV) (V) THE PARTIES SHALL SEL ECT THE ARBITRATOR BY 23
ALTERNATELY STRIKING NAMES FROM THE LIST UNTIL ONE NAME REMAI NS. 24
(V) (VI) THE SELECTED ARBITRAT OR MUST BE ABLE AND 25
AVAILABLE TO PERFORM THE DUTIES AND TO HO LD HEARINGS, BOTH IN PERSON 26
AND THROUGH REMOTE C OMMUNICATION , CONSISTENT WITH THIS TITLE. 27
(VI) (VII) THE ARBITRATOR SHALL HAVE THE POWERS AND 28
RESPONSIBILITIES UND ER § 3–503 OF THIS SUBTITLE. 29
(VII) (VIII) THE SELECTED ARBITRAT OR SHALL ACCEPT THE 30
APPOINTMENT BY THE E ARLIER OF SEPTEMBER 30 OR 15 DAYS AFTER THE DAY A 31
PARTY REQU ESTS AN ARBITRATOR B E SELECTED, OR THE PARTIES MAY A GREE TO 32
MAKE AN ALTERNATIVE APPOINTMENT FROM : 33
HOUSE BILL 159 5
1. THE LIST ORIGINALLY PROVIDED BY THE AMERICAN 1
ARBITRATION ASSOCIATION; OR 2
2. A LIST OF NATIONWIDE ARBITRATORS PROVIDED BY 3
THE FEDERAL MEDIATION AND CONCILIATION SERVICE. 4
(3) THE PARTIES SHALL MAK E A REASONABLE EFFOR T TO BEGIN 5
NEGOTIATIONS ON OR N EAR JULY 1, INCLUDING THE EXCHAN GE OF INFORMATION 6
NECESSARY TO RESPONS IBLY CONDUCT AND CON CLUDE NEGOTIATIONS B Y 7
SEPTEMBER 30. 8
(c) [(1) The parties shall make every reasonable effort to conclude negotiations 9
in a timely manner for inclusion by the principal unit in its budget request to the Governor. 10
(2) (i) The parties shall conclude negotiations before January 1 for any 11
item requiring an appropriation of funds for the fiscal year that begins on the following 12
July 1. 13
(ii) In the budget bill submitted to the General Assembly, the 14
Governor shall include any amounts in the budgets of the principal units required to 15
accommodate any additional cost resulting from the negotiations, including the actuarial 16
impact of any legislative changes to any of the State pension or retirement systems that 17
are required, as a result of the negotiations, for the fiscal year beginning the following July 18
1 if the legislative changes have been negotiated to become effective in that fiscal year. 19
THIS SUBSECTION APPLI ES ONLY WITH RESPECT TO A STATE INSTITUTION OF 20
HIGHER EDUCATION , INCLUDING THE UNIVERSITY SYSTEM OF MARYLAND. 21
(3) (2) (i) If the parties do not conclude negotiations for the next 22
fiscal year before October 25, either party may request that a fact finder be employed to 23
resolve the issues. 24
(ii) (3) The fact finder shall be employed no later than November 1. 25
(iii) (4) A fact finder shall be a neutral party appointed by alternate 26
striking from a list by the parties provided: 27
1. (I) by the Federal Mediation and Conciliation Service; or 28
2. (II) under the Labor Arbitration Rules of the American Arbitration 29
Association. 30
(iv) (5) The fact finder: 31
1. (I) may give notice and hold hearings in accordance with the 32
Administrative Procedure Act; 33 6 HOUSE BILL 159
2. (II) may administer oaths and take testimony and other evidence; 1
3. (III) may issue subpoenas; and 2
4. (IV) before November 20, shall make written recommendations 3
regarding wages, hours, and working conditions, and any other terms or conditions of 4
employment that may be in dispute. 5
(v) (6) The written recommendations of the fact finder shall be delivered 6
to the Governor, the exclusive representative, the President of the Senate, and the Speaker 7
of the House of Delegates by the Secretary on or before December 1. 8
(d)] (1) A memorandum of understanding [that incorporates all matters of 9
agreement reached by the parties] REACHED BY MUTUAL AG REEMENT shall be executed 10
by the exclusive representative and: 11
(i) for a memorandum of understanding relating to the State, the 12
Governor or the Governor’s designee; 13
(ii) for a memorandum of understanding relating to the Maryland 14
Environmental Service, the Board of Directors of the Service; 15
(iii) for a memorandum of understanding relating to a system 16
institution, the Chancellor or the Chancellor’s designee; and 17
(iv) for a memorandum of understanding relating to Morgan State 18
University, St. Mary’s College of Maryland, or Baltimore City Community College, the 19
governing board of the institution or the governing board’s designee. 20
(2) (I) THIS PARAGRAPH DOES N OT APPLY TO MATTERS 21
INVOLVING A STATE INSTITUTION OF HIGHER EDUCATION . 22
(II) To the extent [these] matters INCORPORATED IN A 23
MEMORANDUM OF UNDERS TANDING require legislative approval or the appropriation of 24
funds, the matters shall be [recommended] REFERRED to the General Assembly for 25
approval or for the appropriation of funds AS REQUIRED UNDER ARTICLE III, § 52 OF 26
THE MARYLAND CONSTITUTION . 27
(3) To the extent matters involving a State institution of higher education 28
require legislative approval, the legislation shall be [recommended] REFERRED to the 29
Governor [for submission to] AND the General Assembly. 30
[(e)] (D) (1) Except as provided in paragraph (2) of this subsection, 31
negotiations for a memorandum of understanding shall be considered closed sessions under 32
§ 3–305 of the General Provisions Article. 33 HOUSE BILL 159 7
(2) An exclusive representative may not be considered a public body under 1
§ 3–101 of the General Provisions Article. 2
[(f)] (E) (1) The terms of a memorandum of understanding executed by the 3
Governor or the Governor’s designee and an exclusive representative of a bargaining unit 4
for skilled service or professional service employees in the State Personnel Management 5
System are not applicable to employees of a State institution of higher education. 6
(2) The terms of a memorandum of understanding executed by the 7
Chancellor or the governing board of Morgan State University, St. Mary’s College of 8
Maryland, or Baltimore City Community College, or their respective designees, and the 9
exclusive representative of a bargaining unit for employees of a State institution of higher 10
education are not applicable to skilled service or professional service employees in the State 11
Personnel Management System. 12
3–502. 13
(a) Collective bargaining shall include all matters relating to: 14
(1) wages, hours, FRINGE BENEFITS , HEALTH BENEFITS , and other 15
terms and conditions of employment; and 16
(2) the time and manner of access to a new employee program in 17
accordance with § 22–207 of the State Government Article. 18
(b) Notwithstanding subsection (a) of this section, the representatives of the 19
State, the Maryland Environmental Service, a system institution, Morgan State 20
University, St. Mary’s College of Maryland, and Baltimore City Community College: 21
(1) may not be required to negotiate over any matter that is inconsistent 22
with applicable law; and 23
(2) may negotiate and reach agreement with regard to any such matter 24
THAT IS INCONSISTENT WITH APPLICABLE LAW only if it is understood that, WITH 25
RESPECT TO THE MATTE R, the agreement [with respect to such matter] OR 26
MEMORANDUM OF UNDERS TANDING cannot become effective unless the applicable law 27
is amended by the General Assembly. 28
3–503. 29
(A) THIS SECTION DOES NOT APPLY WITH RESPECT T O A STATE 30
INSTITUTION OF HIGHE R EDUCATION , INCLUDING THE UNIVERSITY SYSTEM OF 31
MARYLAND. 32
8 HOUSE BILL 159
(A) (B) (1) A NEUTRAL ARBITRATOR S ELECTED UNDER § 3–501(B) OF 1
THIS SUBTITLE: 2
(I) MAY MEDIATE OR AID I N THE RESOLUTION OF ANY DISPUTE 3
BETWEEN THE PARTIES REGARDING THE CONDUC T OF NEGOTIATIONS ; 4
(II) MAY RECEIVE FROM THE PARTIES COPIES OF IN FORMATION 5
REQUESTS PRESENTED A ND RESPONSES RECEIVE D, TO MEDIATE OR AID IN THE 6
RESOLUTION OF DISPUT ES THAT ARISE BETWEE N THE PARTIES CONSIS TENT WITH 7
THIS TITLE; AND 8
(III) MAY DIRECT PRODUCTIO N OF ESTIMATES OF RE VENUES 9
AND EXPENDITURES COM PILED BY THE STATE BOARD OF REVENUE ESTIMATES, 10
THE BUREAU OF REVENUE ESTIMATES, OR THE CONSENSUS REVENUE 11
MONITORING AND FORECASTING GROUP. 12
(2) (I) THE OPINIONS AND GUID ANCE ISSUED BY THE N EUTRAL 13
ARBITRATOR UNDER THI S SUBSECTION SHALL B E ADVISORY ON THE PA RTIES AND 14
THE GOVERNOR. 15
(II) THE USE OF A NEUTRAL ARBITRATOR DOES NOT DIMINISH 16
OR LIMIT THE RIGHTS OF ANY PARTY TO FILE AND PURSUE A COMPLAI NT OF UNFAIR 17
LABOR PRACTICES BEFO RE THE BOARD. 18
(B) (C) (1) IF EITHER PARTY DECLA RES AN IMPASSE ON OR AFTER 19
OCTOBER 1, ARBITRATION SHALL PR OCEED AS DESCRIBED I N THIS SUBSECTION . 20
(2) (I) ON THE FIFTH BUSINESS DAY AFTER THE IMPASS E IS 21
DECLARED, EACH PARTY SHALL SUB MIT TO THE NEUTRAL A RBITRATOR, IN WRITING 22
AND WITH A COPY TO T HE OTHER PARTY , A LAST, BEST, AND FINAL OFFER , 23
INCLUDING: 24
1. ALL PROVISIONS IN TH E EXISTING MEMORANDU M OF 25
UNDERSTANDING NOT TO BE MODIFIED; 26
2. ALL NEW, AMENDED, OR MODIFIED MEMORAND UM OF 27
UNDERSTANDING PROVIS IONS AGREED TO BY TH E PARTIES BEFORE THE IMPASSE 28
WAS DECLARED THAT AR E TO BE INCLUDED THR OUGH WRITTEN MUTUAL 29
AGREEMENT ; AND 30
3. SUBJECT TO SUBPARAG RAPH (II) OF THIS 31
PARAGRAPH , DETAILED FURTHER PRO VISIONS THAT A PARTY IS PROPOSING FOR 32
INCLUSION IN A MEMOR ANDUM OF UNDERSTANDI NG. 33
HOUSE BILL 159 9
(II) FURTHER PROVISIONS AR E LIMITED TO SPECIFI C 1
PROPOSALS THAT WERE SUBMITTED IN WRITING TO THE OTHER PARTY A ND WERE 2
THE SUBJECT OF COLLECTIV E BARGAINING BETWEEN THE PARTIES UP TO TH E TIME 3
OF IMPASSE, INCLUDING PROPOSALS THAT THE PARTIES HAV E DECIDED TO 4
INCLUDE IN THE MEMOR ANDUM OF UNDERSTANDI NG THROUGH WRITTEN M UTUAL 5
AGREEMENT . 6
(3) THE NEUTRAL ARBITRATO R ACTING AS A MEDIATOR SHALL 7
ATTEMPT TO RESOLVE T HE IMPASSE BEFORE A FORMAL HEARING ON TH E IMPASSE. 8
(4) (I) WITHIN 30 CALENDAR DAYS AFTER A DECLARED IMPASSE , 9
THE NEUTRAL ARBITRAT OR SHALL HOLD A FORM AL HEARING AT WHICH THE 10
PARTIES MAY SUBMIT , IN WRITING OR ORAL T ESTIMONY, ALL INFORMATION OR 11
DATA SUPPORTING THE FINAL POSITIONS. 12
(II) ABSENT MUTUAL AGREEME NT BETWEEN THE PARTI ES, OR 13
AS OTHERWISE ORDERED BY THE NEUTRAL ARBIT RATOR, THE FORMAL HEARING 14
SHALL CONCLUDE WITHI N 45 CALENDAR DAYS AFTER THE IMPASSE DATE . 15
(5) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 16
PARAGRAPH , THE ARBITRATION SHAL L CONCLUDE WITH A WR ITTEN AWARD THAT 17
SUSTAINS IN ITS ENTI RETY THE LAST , BEST, AND FINAL OFFER OF O NE OF THE 18
PARTIES. 19
(II) BEFORE A WRITTEN AWAR D IS ISSUED , BY WRITTEN 20
AGREEMENT SIGNED BY THE REPRESENTATIVES OF THE PARTIES PARTI CIPATING IN 21
THE ARBITRATION , THE PARTIES MAY DIRE CT THE NEUTRAL ARBIT RATOR TO RULE 22
ON SPECIFICALLY IDEN TIFIED TOPICS OF BAR GAINING. 23
(6) (I) THE NEUTRAL ARBITRATO R SHALL ISSUE A PREL IMINARY 24
WRITTEN AWARD ON OR BEFO RE DECEMBER 5. 25
(II) THE PRELIMINARY WRITT EN AWARD SHALL ADDRE SS ALL 26
PROVISIONS THAT EACH PARTY PROPOSED IN IT S RESPECTIVE FINAL P OSITION FOR 27
INCLUSION IN A MEMOR ANDUM OF UNDERSTANDI NG. 28
(III) WITHIN 5 BUSINESS DAYS AFTER RECEIPT OF THE 29
PRELIMINARY WRITTEN AWARD, THE PARTIES SHALL RE VIEW THE AWARD AND M AY 30
SEVERALLY OR MUTUALL Y REQUEST CHANGES OR ADJUSTMENTS IN THE A WARD. 31
(IV) ON OR BEFORE DECEMBER 15, THE NEUTRAL ARBITRAT OR 32
SHALL ISSUE A FINAL WRITTEN AWARD IN WHI CH THE ARBITRA TOR: 33
10 HOUSE BILL 159
1. SHALL ORDER IMPLEMEN TATION OF THE LAST , BEST, 1
AND FINAL OFFER OF E ITHER PARTY IN ITS E NTIRETY, INCORPORATING ANY 2
VOLUNTARILY AGREED –TO TERMS BETWEEN THE PARTIES; AND 3
2. SHALL INCLUDE : 4
A. ANY VOLUNTARILY AGRE ED–TO TERMS BETWEEN THE 5
PARTIES; AND 6
B. ANY PRIOR TERM THAT BY AGREEMENT IS NOT TO BE 7
CHANGED FOR THE NEXT FISCAL YEAR. 8
(V) AFTER DECEMBER 15, IF REQUESTED BY EITH ER PARTY, 9
THE NEUTRAL ARBITRAT OR SHALL ISSUE BY JANUARY 20 OF THE IMMEDIATELY 10
FOLLOWING YEAR A STA TEMENT OF REASONS FOR THE FINA L WRITTEN AWARD . 11
(7) THE NEUTRAL ARBITRATO R SHALL CONSIDER THE FOLLOWING 12
WHEN DEVELOPING A WR ITTEN AWARD: 13
(I) THE LAWFUL AUTHORITY OF THE EMPLOYER , INCLUDING 14
THE OBLIGATION OF TH E EMPLOYER TO USE SP ECIAL FUNDS ONLY FOR 15
AUTHORIZED PURPOSES UNDER LIMIT ATIONS IMPOSED BY FE DERAL OR STATE LAW; 16
(II) STIPULATIONS OF THE PARTIES; 17
(III) THE INTERESTS AND WE LFARE OF THE PUBLIC ; 18
(IV) THE FINANCIAL ABILIT Y OF THE EMPLOYER TO MEET 19
COSTS, WITHOUT THE PREMISE THAT THE EMPLOYER MA Y NEED TO INCREASE OR 20
IMPOSE NEW TAXES , FEES, OR CHARGES, OR DEVELOP OTHER SOU RCES OF REVENUE 21
OR TRANSFER FUNDS FR OM THE REVENUE STABILIZATION ACCOUNT ESTABLISHED 22
UNDER § 7–311 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 23
(V) THE PRESENT AND FUTU RE GENERAL ECONOMIC 24
CONDITION OF THE STATE OR STATE INSTITUTIONS OF HIGHER EDUCATION ; 25
(VI) COMPARISONS OF WAGES , HOURS, AND CONDITIONS OF 26
EMPLOYMENT OF THE EM PLOYEES INVOLVED WIT H ARBITRATION WITH T HE WAGES, 27
HOURS, AND CONDITIONS OF EMPLOYMENT OF OTHER EMPLOYEES PERFORMING 28
SIMILAR SERVICES IN PUBLIC EMPLOYMENT IN ADJACENT STATES ; 29
(VII) COMPARISONS OF COLLE CTIVE BARGAINING PAT TERNS IN 30
OTHER STATES AND AMO NG COUNTY EMPLOYEES IN THE STATE; 31
HOUSE BILL 159 11
(VIII) CONSUMER PRICES FOR GOODS AND SE RVICES AS DEFINED 1
BY PUBLIC AND PRIVAT E SOURCES; 2
(IX) THE OVERALL COMPENSA TION PRESENTLY RECEI VED BY 3
THE EMPLOYEES , INCLUDING DIRECT WAG E COMPENSATION , VACATION, HOLIDAYS, 4
EXCUSED TIME OFF , INSURANCE AND PENSIO NS COSTS, MEDICAL AND 5
HOSPITALIZATION BENE FITS, THE CONTINUITY AND S TABILITY OF EMPLOYME NT, 6
AND ALL OTHER RECEIV ED BENEFITS; 7
(X) CHANGES IN ANY OF TH E FOREGOING CIRCUMST ANCES 8
DURING THE PENDENCY OF THE ARBITRATION ; AND 9
(XI) OTHER FACTORS THAT A RE NORMALLY OR TRADI TIONALLY 10
TAKEN INTO CONSID ERATION IN THE DETER MINATION OF WAGES , HOURS, AND 11
CONDITIONS OF EMPLOY MENT THROUGH VOLUNTA RY COLLECTIVE BARGAI NING, 12
MEDIATION, ARBITRATION, OR OTHERWISE BETWEEN THE PARTIES IN PUBLI C 13
SERVICE OR PRIVATE E MPLOYMENT . 14
(C) (D) (1) THE SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 15
THE DECISION OF THE NEUT RAL ARBITRATOR SHALL BE FINAL AND BINDING ON THE 16
PARTIES. 17
(2) A DECISION AS TO A MAT TER REQUIRING AN APP ROPRIATION OF 18
FUNDS IS CONTINGENT ON THE APPROVAL OF T HE APPROPRIATION BY THE 19
GENERAL ASSEMBLY IN ACCORDANCE WITH ARTICLE III, § 52 OF THE MARYLAND 20
CONSTITUTION. 21
(3) A DECISION OF AN ARBIT RATOR UNDER THIS SUB SECTION 22
RELATED TO WAGES IS SUBJECT TO THE LIMIT ATIONS OF THE STATE BUDGET . 23
(D) (E) THE STATE, A STATE INSTITUTION OF HIGHER EDUCATION , AND 24
THE MARYLAND ENVIRONMENTAL SERVICE AND THE GOVERNOR SHALL TAKE A LL 25
ACTIONS NECESSARY TO CARRY OUT AND EFFECT UATE THE FINAL WRITT EN AWARD 26
AND PLACE INTO EFFEC T THE MEMORANDUM OF UNDERSTANDING . 27
(E) (F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 28
PARTIES AT ANY TIME MA Y AMEND OR MODIFY TH E FINAL WRITTEN AWAR D AND, BY 29
CONSENT, THE AMENDMENTS OR MO DIFICATIONS SHALL BE APPROVED BY THE 30
PARTIES AND PLACED I N A SUPPLEMENTAL WRI TTEN AWARD BY THE NE UTRAL 31
ARBITRATOR THAT SHAL L BE FINAL AND BINDI NG. 32
(2) A SUPPLEMENTAL WRITTEN AWARD UNDER PARAGRAP H (1) OF 33
THIS SUBSECTION SHAL L TAKE EFFECT ON THE DATE OF THE ORDER OF THE 34 12 HOUSE BILL 159
NEUTRAL ARBITRATOR A ND MAY NOT REQUIRE R ATIFICATION UNDER § 3–601 OF 1
THIS TITLE. 2
(F) (G) A DEADLINE IN THIS SEC TION MAY BE MODIFIED , BASED ON GOOD 3
CAUSE, BY MUTUAL AGREEMENT OF THE PARTIES OR BY ORDER OF THE NEUTRAL 4
ARBITRATOR. 5
(G) (H) (1) THE COSTS OF THE SERV ICES OF THE NEUTRAL 6
ARBITRATOR SHALL BE SHARED EQUALLY BY TH E PARTIES. 7
(2) ALL OTHER COSTS INCUR RED BY EITHER PARTY TO COMPLY WITH 8
THIS SECTION SHALL B E THE RESPONSIBILITY OF THE PARTY INCURRI NG THE 9
COSTS. 10
3–603. 11
(a) A memorandum of understanding [agreed to and ratified under § 3–601 of this 12
subtitle] may not expire until it is succeeded by a memorandum of understanding that is 13
agreed to and ratified OR ADOPTED BY ARBITR ATION under this title. 14
(b) Notwithstanding § 3–601(b) of this subtitle, all terms of a memorandum of 15
understanding shall continue in force and effect without change until a successor 16
memorandum of understanding is agreed to and ratified. 17
(c) (1) Based on a verified complaint by an exclusive representative, the 18
exclusive representative may file an action in a circuit court against the State, the 19
Maryland Environmental Service, a system institution, Morgan State University, St. 20
Mary’s College of Maryland, or Baltimore City Community College to enforce the terms of 21
this section. 22
(2) On receipt of an action submitted by the exclusive representative, the 23
court shall issue a status quo order without a finding of irreparable harm to maintain a 24
memorandum of understanding and the terms in effect pending a final order in the action. 25
SECTION 2. AND BE IT FURTHER ENACTED, (Three –fifths of all the members 26
elected to each of the two Houses concurring), That it be proposed that the Maryland 27
Constitution read as follows: 28
Article III – Legislative Department 29
52. 30
(1) The General Assembly shall not appropriate any money out of the Treasury 31
except in accordance with the provisions of this section. 32
HOUSE BILL 159 13
(2) Every appropriation bill shall be either a Budget Bill, or a Supplementary 1
Appropriation Bill, as hereinafter provided. 2
(3) On the third Wednesday in January in each year, (except in the case of a newly 3
elected Governor, and then not later than ten days after the convening of the General 4
Assembly), unless such time shall be extended by the General Assembly, the Governor shall 5
submit to the General Assembly a Budget for the next ensuing fiscal year. Each Budget 6
shall contain a complete plan of proposed expenditures and estimated revenues for said 7
fiscal year and shall show the estimated surplus or deficit of revenues at the end of the 8
preceding fiscal year. EACH BUDGET SHALL ALSO CON TAIN THE APPROPRIATI ONS 9
NECESSARY TO IMPLEME NT ALL TERMS AND CON DITIONS OF EMPLOYMEN T IN EACH 10
MEMORANDUM OF UNDERS TANDING CONCLUDED WI TH THE STATE, WHETHER 11
REACHED THROUGH MUTU AL AGREEMENT OR ARBI TRATION THAT IS BIND ING ON 12
THE PARTIES, THE GOVERNOR, STATE INSTITUTIONS OF HIGHER EDUCATION , AND 13
THE MARYLAND ENVIRONMENTAL SERVICE, FOR THE NEXT E NSUING FISCAL YEAR 14
FOR STATE EMPLOYEES IN TH E VARIOUS BRANCHES A ND DEPARTMENTS OF STATE 15
GOVERNMENT , INCLUDING HIGHER EDU CATION. Accompanying each Budget shall be a 16
statement showing: (a) the revenues and expenditures for the preceding fiscal year; (b) the 17
current assets, liabilities, reserves and surplus or deficit of the State; (c) the debts and 18
funds of the State; (d) an estimate of the State’s financial condition as of the beginning and 19
end of the preceding fiscal year; (e) CHANGES IN WAGES , HOURS, FRINGE BENEFITS, 20
HEALTH BENEFITS , AND OTHER TERMS AND CONDITIONS OF EMPLOY MENT FOR 21
STATE EMPLOYEES INCLU DED IN EACH MEMORAND UM OF UNDERSTANDING 22
COVERING STATE EMPLOYEES FOR T HE NEXT ENSUING FISC AL YEAR; AND (F) any 23
explanation the Governor may desire to make as to the important features of the Budget 24
and any suggestions as to methods for reduction or increase of the State’s revenue. 25
(4) Each Budget shall embrace an estimate of all appropriations in such form and 26
detail as the Governor shall determine or as may be prescribed by law, as follows: (a) for 27
the General Assembly as certified to the Governor in the manner hereinafter provided; (b) 28
for the Executive Department; (c) for the Judiciary Department, as provided by law, as 29
certified to the Governor; (d) to pay and discharge the principal and interest of the debt of 30
the State in conformity with Section 34 of Article III of the Constitution, and all laws 31
enacted in pursuance thereof; (e) for the salaries AND FRINGE BENEFITS payable by the 32
State and under the Constitution and laws of the State, INCLUDING THOSE SALA RIES 33
AND BENEFITS COMMITT ED UNDER EACH MEMORA NDUM OF UNDERSTANDIN G 34
COVERING STATE EMPLOYEES ; (f) for the establishment and maintenance throughout 35
the State of a thorough and efficient system of public schools in conformity with Article 8 36
of the Constitution and with the laws of the State; and (g) for such other purposes as are 37
set forth in the Constitution or laws of the State. 38
(5) The Governor shall deliver to the presiding officer of each House the Budget 39
and a bill for all the proposed appropriations of the Budget classified and in such form and 40
detail as the Governor shall determine or as may be prescribed by law; and the presiding 41
officer of each House shall promptly cause said bill to be introduced therein, and such bill 42
shall be known as the “Budget Bill.” The Governor may, with the consent of the General 43 14 HOUSE BILL 159
Assembly, before final action thereon by the General Assembly, amend or supplement said 1
Budget to correct an oversight, provide funds contingent on passage of pending legislation 2
or, in case of an emergency, by delivering such an amendment or supplement to the 3
presiding officers of both Houses; and such amendment or supplement shall thereby become 4
a part of said Budget Bill as an addition to the items of said bill or as a modification of or a 5
substitute for any item of said bill such amendment or supplement may affect. 6
(5a) The Budget and the Budget Bill as submitted by the Governor to the General 7
Assembly shall have a figure for the total of all proposed appropriations and a figure for 8
the total of all estimated revenues available to pay the appropriations, and the figure for 9
total proposed appropriations shall not exceed the figure for total estimated revenues. 10
Neither the Governor in submitting an amendment or supplement to the Budget Bill nor 11
the General Assembly in amending the Budget Bill shall thereby cause the figure for total 12
proposed appropriations to exceed the figure for total estimated revenues, including any 13
revisions, and in the Budget Bill as enacted the figure for total estimated revenues always 14
shall be equal to or exceed the figure for total appropriations. 15
(6) The General Assembly shall not amend the Budget Bill so as to affect either 16
the obligations of the State under Section 34 of Article III of the Constitution, or the 17
provisions made by the laws of the State for the establishment and maintenance of a system 18
of public schools or the payment of any salaries required to be paid by the State of Maryland 19
by the Constitution. 20
(6a) In enacting a balanced Budget Bill each fiscal year as required under this 21
Section, the General Assembly may amend the bill by increasing or diminishing the items 22
therein relating to the General Assembly, and by increasing or diminishing the items 23
therein relating to the judiciary, but except as hereinbefore specified, may not alter the bill 24
except to strike out or reduce items therein, provided, however, that the salary or 25
compensation of any public officer may not be decreased during the public officer’s term of 26
office. When passed by both Houses, the Budget Bill shall be presented to the Governor for 27
approval or disapproval according to Section 17 of Article II of this Constitution. 28
(6b) In enacting a balanced Budget Bill as required under this Section for fiscal 29
year 2024 and each fiscal year thereafter, the General Assembly may amend the bill by 30
increasing, diminishing, or adding items therein relating to the General Assembly, by 31
increasing, diminishing, or adding items therein relating to the judiciary, and by 32
increasing, diminishing, or adding items therein relating to the Executive Department, 33
provided that the total of the appropriation for the Executive Department approved by the 34
General Assembly does not exceed the total proposed appropriation for the Executive 35
Department submitted by the Governor. The salary or compensation of any public officer 36
may not be decreased during the public officer’s term of office. When passed by both Houses, 37
the Budget Bill shall be a law immediately without further action by the Governor. 38
(7) The Governor and such representatives of the executive departments, boards, 39
officers and commissions of the State expending or applying for State’s moneys, as have 40
been designated by the Governor for this purpose, shall have the right, and when requested 41
by either House of the General Assembly, it shall be their duty to appear and be heard with 42 HOUSE BILL 159 15
respect to any Budget Bill during the consideration thereof, and to answer inquiries relative 1
thereto. 2
(8) Supplementary Appropriation Bill. Either House may consider other 3
appropriations but both Houses shall not finally act upon such appropriations until after 4
the Budget Bill has been finally acted upon by both Houses, and no such other 5
appropriation shall be valid except in accordance with the provisions following: (a) Every 6
such appropriation shall be embodied in a separate bill limited to some single work, object 7
or purpose therein stated and called herein a Supplementary Appropriation Bill; (b) Each 8
Supplementary Appropriation Bill shall provide the revenue necessary to pay the 9
appropriation thereby made by a tax, direct or indirect, to be levied and collected as shall 10
be directed in said bill; (c) No Supplementary Appropriation Bill shall become a law unless 11
it be passed in each House by a vote of a majority of the whole number of the members 12
elected, and the yeas and nays recorded on its final passage; (d) Each Supplementary 13
Appropriation Bill shall be presented to the Governor of the State as provided in Section 14
17 of Article 2 of the Constitution and thereafter all the provisions of said section shall 15
apply. 16
(9) Nothing in this section shall be construed as preventing the General Assembly 17
from passing at any time, in accordance with the provisions of Section 28 of Article 3 of the 18
Constitution and subject to the Governor’s power of approval as provided in Section 17 of 19
Article 2 of the Constitution, an appropriation bill to provide for the payment of any 20
obligation of the State within the protection of Section 10 of Article 1 of the Constitution of 21
the United States. 22
(10) If the Budget Bill shall not have been finally acted upon by the Legislature 23
seven days before the expiration of the regular session, the Governor shall issue a 24
proclamation extending the session for some further period as may, in the Governor’s 25
judgment, be necessary for the passage of such bill; but no matter other than such bill shall 26
be considered during such extended session except a provision for the cost thereof. 27
(11) For the purpose of making up the Budget, the Governor shall require from the 28
proper State officials (including all executive departments, all executive and administrative 29
offices, bureaus, boards, commissions and agencies that expend or supervise the 30
expenditure of, and all institutions applying, for State moneys and appropriations) such 31
itemized estimates and other information, in such form and at such times as directed by 32
the Governor. An estimate for a program required to be funded by a law which will be in 33
effect during the fiscal year covered by the Budget and which was enacted before July 1 of 34
the fiscal year prior to that date shall provide a level of funding not less than that prescribed 35
in the law. The estimates for the Legislative Department, certified by the presiding officer 36
of each House, of the Judiciary, as provided by law, certified by the Chief Justice of the 37
Supreme Court of Maryland, and for the public schools, as provided by law, shall be 38
transmitted to the Governor, in such form and at such times as directed by the Governor, 39
and shall be included in the Budget without revision. 40
(12) The Governor may provide for public hearings on all estimates and may 41
require the attendance at such hearings of representatives of all agencies, and for all 42 16 HOUSE BILL 159
institutions applying for State moneys. After such public hearings the Governor may, in 1
the Governor’s discretion, revise all estimates except those for the legislative and judiciary 2
departments, and for the public schools, as provided by law, and except that the Governor 3
may not reduce an estimate for a program below a level of funding prescribed by a law 4
which will be in effect during the fiscal year covered by the Budget, and which was enacted 5
before July 1 of the fiscal year prior thereto. 6
(13) The General Assembly may, from time to time, enact such laws not 7
inconsistent with this section, as may be necessary and proper to carry out its provisions. 8
(14) In the event of any inconsistency between any of the provisions of this Section 9
and any of the other provisions of the Constitution, the provisions of this Section shall 10
prevail. But nothing herein shall in any manner affect the provisions of Section 34 of Article 11
3 of the Constitution or of any laws heretofore or hereafter passed in pursuance thereof, or 12
be construed as preventing the Governor from calling extraordinary sessions of the General 13
Assembly, as provided by Section 16 of Article 2, or as preventing the General Assembly at 14
such extraordinary sessions from considering any emergency appropriation or 15
appropriations. 16
(15) If any item of any appropriation bill passed under the provisions of this 17
Section shall be held invalid upon any ground, such invalidity shall not affect the legality 18
of the bill or of any other item of such bill or bills. 19
SECTION 3. AND BE IT FUR THER ENACTED, That the General Assembly 20
determines that the amendment to the Maryland Constitution proposed by Section 2 of this 21
Act affects multiple jurisdictions and that the provisions of Article XIV, § 1 of the Maryland 22
Constitution concerning local approval of constitutional amendments do not apply. 23
SECTION 4. AND BE IT FURTHER ENACTED, That: 24
(a) The amendment to the Maryland Constitution proposed by Section 2 of this 25
Act shall be submitted to the qualified voters of the State at the next general election to be 26
held in November 2026 for adoption or rejection pursuant to Article XIV of the Maryland 27
Constitution. 28
(b) (1) At that general election, the vote on the proposed amendment to the 29
Constitution shall be by ballot, and on each ballot there shall be printed the words “For the 30
Constitutional Amendment” and “Against the Constitutional Amendment”, as now 31
provided by law. 32
(2) At that general election, a question substantially similar to the 33
following shall be submitted to the qualified voters of the State: 34
“Question ___ – Constitutional Amendment 35
Providing that each budget shall include expenditures necessary to implement wages, 36
hours, fringe benefits, health benefits, and other terms and conditions of employment for 37 HOUSE BILL 159 17
State employees concluded in each memorandum of understanding covering State 1
employees.”. 2
(c) Immediately after the election, all returns shall be made to the Governor of 3
the vote for and against the proposed amendment, as directed by Article XIV of the 4
Maryland Constitution, and further proceedings had in accordance with Article XIV. 5
SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 6
4 of this Act, this Act shall take effect July 1, 2025. 7
SECTION 5. AND BE IT FURTHER ENACTED, That Section 1 of this Act is 8
contingent on the passage of Section 2 of this Act, a constitutional amendment, and its 9
ratification by voters of the State. 10
SECTION 6. AND BE IT FURTHER ENACTED, That, subject to Section 5 of this 11
Act, Section 1 of this Act shall take effect on the proclamation of the Governor that the 12
constitutional amendment, having received a majority of the votes cast at the general 13
election, has been adopted by the people of Maryland. 14
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.