EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0288*
SENATE BILL 288
P4 CONSTITUTIONAL AMENDMENT 5lr1795
SB 188/24 – B&T & FIN CF HB 159
By: Senator McCray
Introduced and read first time: January 10, 2025
Assigned to: Budget and Taxation and Finance
A BILL ENTITLED
AN ACT concerning 1
Arbitration Reform for State Employees Act of 2025 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 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
BY adding to 22
Article – State Personnel and Pensions 23
Section 3–503 24
Annotated Code of Maryland 25
(2024 Replacement Volume and 2024 Supplement) 26
BY proposing an amendment to the Maryland Constitution 27 2 SENATE BILL 288
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 Justice of the Supreme Court of Maryland; 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 UNDER SUBSECTION 28
(A) OF THIS SECTION , THE GOVERNOR SHALL INCLUD E IN EACH ANNUAL BUD GET 29
BILL THE APPROPRIATI ONS NECESSARY TO IMP LEMENT AND FUND ALL TERMS 30
WITHIN EACH MEMORA NDUM OF UNDERSTANDIN G BETWEEN: 31
SENATE BILL 288 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)(i)2 of this 32
title. 33 4 SENATE BILL 288
(2) (I) 1. FOR EACH BARGAINING U NIT, WHENEVER A 1
MEMORANDUM OF UNDERS TANDING IS TO BE NEG OTIATED, REOPENED, OR 2
AMENDED, EITHER PARTY MAY REQ UEST A NEUTRAL ARBIT RATOR FOR THE 3
NEGOTIATIONS ON OR AFTER JULY 1. 4
2. IF NEGOTIATIONS HAVE NOT CONCLUDED BY 5
SEPTEMBER 1, THE PARTIES SHALL SE LECT A NEUTRAL ARBIT RATOR ON OR BEFORE 6
SEPTEMBER 15. 7
(II) THE ARBITRATOR SHALL BE SELECTED FROM A L IST OF 15 8
ARBITRATORS PROVIDED BY THE AMERICAN ARBITRATION ASSOCIATION’S LABOR 9
ARBITRATION PANEL . 10
(III) THE LIST SHALL CONSIS T OF QUALIFIED , NATIONWIDE 11
ARBITRATORS WHO ARE MEMBERS OF THE NATIONAL ACADEMY OF ARBITRATION. 12
(IV) THE PARTIES SHALL SEL ECT THE ARBITRATOR B Y 13
ALTERNATELY STRIKING NAMES FROM THE LIST UNTIL ONE NAME REMAI NS. 14
(V) THE SELECTED ARBITRAT OR MUST BE ABLE AND 15
AVAILABLE TO PERFORM THE DUTIES AND TO HO LD HEARINGS, BOTH IN PERSON 16
AND THROUGH REMOTE C OMMUNICATION , CONSISTENT WITH THIS TITLE. 17
(VI) THE ARBITRATOR SHALL HAVE THE POWERS AND 18
RESPONSIBILITIES UNDE R § 3–503 OF THIS SUBTITLE. 19
(VII) THE SELECTED ARBITRAT OR SHALL ACCEPT THE 20
APPOINTMENT BY THE E ARLIER OF SEPTEMBER 30 OR 15 DAYS AFTER THE DAY A 21
PARTY REQUESTS AN AR BITRATOR BE SELECTED , OR THE PARTIES MAY A GREE TO 22
MAKE AN ALTERNATI VE APPOINTMENT FROM : 23
1. THE LIST ORIGINALLY PROVIDED BY THE AMERICAN 24
ARBITRATION ASSOCIATION; OR 25
2. A LIST OF NATIONWIDE ARBITRATORS PROVIDED BY 26
THE FEDERAL MEDIATION AND CONCILIATION SERVICE. 27
(3) THE PARTIES SHALL MAK E A REASONABLE EFFOR T TO BEGIN 28
NEGOTIATIONS ON OR N EAR JULY 1, INCLUDING THE EXCHAN GE OF INFORMATION 29
NECESSARY TO RESPONS IBLY CONDUCT AND CON CLUDE NEGOTIATIONS B Y 30
SEPTEMBER 30. 31
SENATE BILL 288 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
(d)] (1) A memorandum of understanding [that incorporates all matters of 33 6 SENATE BILL 288
agreement reached by the parties] REACHED BY MUTUAL AG REEMENT shall be executed 1
by the exclusive representative and: 2
(i) for a memorandum of understanding relating to the State, the 3
Governor or the Governor’s designee; 4
(ii) for a memorandum of understanding relating to the Maryland 5
Environmental Service, the Board of Directors of the Service; 6
(iii) for a memorandum of understanding relating to a system 7
institution, the Chancellor or the Chancellor’s designee; and 8
(iv) for a memorandum of understanding relating to Morgan State 9
University, St. Mary’s College of Maryland, or Baltimore City Community College, the 10
governing board of the institution or the governing board’s designee. 11
(2) To the extent [these] matters INCORPORATED IN A ME MORANDUM 12
OF UNDERSTANDING require legislative approval or the appropriation of funds, the 13
matters shall be [recommended] REFERRED to the General Assembly for approval or for 14
the appropriation of funds AS REQUIRED UNDER ARTICLE III, § 52 OF THE MARYLAND 15
CONSTITUTION . 16
(3) To the extent matters involving a State institution of higher education 17
require legislative approval, the legislation shall be [recommended] REFERRED to the 18
Governor [for submission to] AND the General Assembly. 19
[(e)] (D) (1) Except as provided in paragraph (2) of this subsection, 20
negotiations for a memorandum of understanding shall be considered closed sessions under 21
§ 3–305 of the General Provisions Article. 22
(2) An exclusive representative may not be considered a public body under 23
§ 3–101 of the General Provisions Article. 24
[(f)] (E) (1) The terms of a memorandum of understanding executed by the 25
Governor or the Governor’s designee and an exclusive representative of a bargaining unit 26
for skilled service or professional service employees in the State Personnel Management 27
System are not applicable to employees of a State institution of higher education. 28
(2) The terms of a memorandum of understanding executed by the 29
Chancellor or the governing board of Morgan State University, St. Mary’s College of 30
Maryland, or Baltimore City Community College, or their respective designees, and the 31
exclusive representative of a bargaining unit for employees of a State institution of higher 32
education are not applicable to skilled service or professional service employees in the State 33
Personnel Management System. 34
3–502. 35 SENATE BILL 288 7
(a) Collective bargaining shall include all matters relating to: 1
(1) wages, hours, FRINGE BENEFITS , HEALTH BENEFITS , and other 2
terms and conditions of employment; and 3
(2) the time and manner of access to a new employee program in 4
accordance with § 22–207 of the State Government Article. 5
(b) Notwithstanding subsection (a) of this section, the representatives of the 6
State, the Maryland Environmental Service, a system institution, Morgan State 7
University, St. Mary’s College of Maryland, and Baltimore City Community College: 8
(1) may not be required to negotiate over any matter that is inconsistent 9
with applicable law; and 10
(2) may negotiate and reach agreement with regard to any such matter 11
THAT IS INCONSISTENT WITH APPLICABLE LAW only if it is understood that, WITH 12
RESPECT TO THE MATTE R, the agreement [with respect to such matter] OR 13
MEMORANDUM OF UNDERS TANDING cannot become effective unless the applicable law 14
is amended by the General Assembly. 15
3–503. 16
(A) (1) A NEUTRAL ARBITRATOR S ELECTED UNDER § 3–501(B) OF THIS 17
SUBTITLE: 18
(I) MAY MEDIATE OR AID I N THE RESOLUTION OF ANY DISPUTE 19
BETWEEN THE PARTIES REGARDING THE CONDUC T OF NEGOTIATIONS ; 20
(II) MAY RECEIVE FROM THE PARTIES COPIES OF IN FORMATION 21
REQUESTS PRESENTED A ND RESPONSES RECE IVED, TO MEDIATE OR AID IN THE 22
RESOLUTION OF DISPUT ES THAT ARISE BETWEE N THE PARTIES CONSIS TENT WITH 23
THIS TITLE; AND 24
(III) MAY DIRECT PRODUCTIO N OF ESTIMATES OF RE VENUES 25
AND EXPENDITURES COM PILED BY THE STATE BOARD OF REVENUE ESTIMATES, 26
THE BUREAU OF REVENUE ESTIMATES, OR THE CONSENSUS REVENUE 27
MONITORING AND FORECASTING GROUP. 28
(2) (I) THE OPINIONS AND GUID ANCE ISSUED BY THE N EUTRAL 29
ARBITRATOR UNDER THI S SUBSECTION SHALL B E ADVISORY ON THE PA RTIES AND 30
THE GOVERNOR; AND 31
(II) THE USE OF A NEUTRAL ARBITRATOR DOES NOT DI MINISH 32 8 SENATE BILL 288
OR LIMIT THE RIGHTS OF ANY PARTY TO FILE AND PURSUE A COMPLAI NT OF UNFAIR 1
LABOR PRACTICES BEFO RE THE BOARD. 2
(B) (1) IF EITHER PARTY DECLA RES AN IMPASSE ON OR AFTER OCTOBER 3
1, ARBITRATION SHALL PR OCEED AS DESCRIBED I N THIS SUBSECTION. 4
(2) (I) ON THE FIFTH BUSINESS DAY AFTER THE IMPASS E IS 5
DECLARED, EACH PARTY SHALL SUB MIT TO THE NEUTRAL A RBITRATOR, IN WRITING 6
AND WITH A COPY TO T HE OTHER PARTY , A LAST, BEST, AND FINAL OFFER , 7
INCLUDING: 8
1. ALL PROVISIONS IN TH E EXISTING ME MORANDUM OF 9
UNDERSTANDING NOT TO BE MODIFIED; 10
2. ALL NEW, AMENDED, OR MODIFIED MEMORAND UM OF 11
UNDERSTANDING PROVIS IONS AGREED TO BY TH E PARTIES BEFORE THE IMPASSE 12
WAS DECLARED THAT AR E TO BE INCLUDED THR OUGH WRITTEN MUTUAL 13
AGREEMENT ; AND 14
3. SUBJECT TO SUBPARAGR APH (II) OF THIS 15
PARAGRAPH , DETAILED FURTHER PRO VISIONS THAT A PARTY IS PROPOSING FOR 16
INCLUSION IN A MEMOR ANDUM OF UNDERSTANDI NG. 17
(II) FURTHER PROVISIONS AR E LIMITED TO SPECIFI C 18
PROPOSALS THAT WERE SUBMITTED IN WRITING TO THE OTHER PARTY AND WERE 19
THE SUBJECT OF COLLE CTIVE BARGAINING BET WEEN THE PARTIES UP TO THE TIME 20
OF IMPASSE, INCLUDING PROPOSALS THAT THE PARTIES HAV E DECIDED TO 21
INCLUDE IN THE MEMOR ANDUM OF UNDERSTANDI NG THROUGH WRITTEN M UTUAL 22
AGREEMENT . 23
(3) THE NEUTRAL ARBITRAT OR ACTING AS A MEDIA TOR SHALL 24
ATTEMPT TO RESOLVE T HE IMPASSE BEFORE A FORMAL HEARING ON TH E IMPASSE. 25
(4) (I) WITHIN 30 CALENDAR DAYS AFTER A DECLARED IMPASSE , 26
THE NEUTRAL ARBITRAT OR SHALL HOLD A FORM AL HEARING AT WHICH THE 27
PARTIES MAY SUBMIT , IN WRITING OR ORAL TESTIMONY , ALL INFORMATION OR 28
DATA SUPPORTING THE FINAL POSITIONS. 29
(II) ABSENT MUTUAL AGREEME NT BETWEEN THE PARTI ES, OR 30
AS OTHERWISE ORDERED BY THE NEUTRAL ARBIT RATOR, THE FORMAL HEARING 31
SHALL CONCLUDE WITHI N 45 CALENDAR DAYS AFTER THE IMPASSE DATE. 32
(5) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 33 SENATE BILL 288 9
PARAGRAPH , THE ARBITRATION SHAL L CONCLUDE WITH A WR ITTEN AWARD THAT 1
SUSTAINS IN ITS ENTI RETY THE LAST , BEST, AND FINAL OFFER OF O NE OF THE 2
PARTIES. 3
(II) BEFORE A WRITTEN AWAR D IS ISSUED , BY WRITTEN 4
AGREEMENT SIGNED BY THE REPRESENTATIVES OF THE PARTIES PARTI CIPATING IN 5
THE ARBITRATION , THE PARTIES MAY DIRE CT THE NEUTRAL ARBIT RATOR TO RULE 6
ON SPECIFICALLY IDEN TIFIED TOPICS OF BAR GAINING. 7
(6) (I) THE NEUTRAL ARBITRATO R SHALL ISSUE A PREL IMINARY 8
WRITTEN AWARD ON OR BEFORE DECEMBER 5. 9
(II) THE PRELIMINARY WRITT EN AWARD SHALL ADDRE SS ALL 10
PROVISIONS THAT EACH PARTY PROPOSED IN IT S RESPECTIVE FINAL P OSITION FOR 11
INCLUSION IN A MEMOR ANDUM OF UNDERSTANDI NG. 12
(III) WITHIN 5 BUSINESS DAYS AF TER RECEIPT OF THE 13
PRELIMINARY WRITTEN AWARD, THE PARTIES SHALL RE VIEW THE AWARD AND M AY 14
SEVERALLY OR MUTUALL Y REQUEST CHANGES OR ADJUSTMENTS IN THE A WARD. 15
(IV) ON OR BEFORE DECEMBER 15, THE NEUTRAL ARBITRAT OR 16
SHALL ISSUE A FINAL WRITTEN AWARD IN WHI CH THE ARBITRATOR : 17
1. SHALL ORDER IMPLEMEN TATION OF THE LAST , BEST, 18
AND FINAL OFFER OF E ITHER PARTY IN ITS E NTIRETY, INCORPORATING ANY 19
VOLUNTARILY AGREED –TO TERMS BETWEEN THE PARTIES; AND 20
2. SHALL INCLUDE : 21
A. ANY VOLUNTARILY AGRE ED–TO TERMS BETWEEN THE 22
PARTIES; AND 23
B. ANY PRIOR TERM THAT BY AGREEMENT IS NOT TO BE 24
CHANGED FOR THE NEXT FISCAL YEAR. 25
(V) AFTER DECEMBER 15, IF REQUESTED BY EITH ER PARTY, 26
THE NEUTRAL ARBITRAT OR SHALL ISSUE BY JANUARY 20 OF THE IMMEDIATELY 27
FOLLOWING YEAR A STATEMENT OF REASONS FOR THE FINAL WRITTE N AWARD. 28
(7) THE NEUTRAL ARBITRATO R SHALL CONSIDER THE FOLLOWING 29
WHEN DEVELOPING A WR ITTEN AWARD: 30
(I) THE LAWFUL AUTHORITY OF THE EMPLOYER , INCLUDING 31 10 SENATE BILL 288
THE OBLIGATION OF TH E EMPLOYER TO USE SP ECIAL FUNDS ONLY F OR 1
AUTHORIZED PURPOSES UNDER LIMITATIONS IM POSED BY FEDERAL OR STATE LAW; 2
(II) STIPULATIONS OF THE PARTIES; 3
(III) THE INTERESTS AND WE LFARE OF THE PUBLIC ; 4
(IV) THE FINANCIAL ABILIT Y OF THE EMPLOYER TO MEET 5
COSTS, WITHOUT THE PREMISE THAT THE EM PLOYER MAY NEED TO I NCREASE OR 6
IMPOSE NEW TAXES , FEES, OR CHARGES , OR DEVELOP OTHER SOU RCES OF 7
REVENUE; 8
(V) THE PRESENT AND FUTU RE GENERAL ECONOMIC 9
CONDITION OF THE STATE OR STATE INSTITUTIONS OF HIGHER EDUCATION ; 10
(VI) COMPARISONS OF WAGES , HOURS, AND CONDITIONS OF 11
EMPLOYMENT OF THE EM PLOYEES INVOLVED WIT H ARBITRATION WITH T HE WAGES, 12
HOURS, AND CONDITIONS OF EM PLOYMENT OF OTHER EM PLOYEES PERFORMING 13
SIMILAR SERVICES IN PUBLIC EMPLOYMENT IN ADJACENT STATES ; 14
(VII) COMPARISONS OF COLLE CTIVE BARGAINI NG PATTERNS IN 15
OTHER STATES AND AMO NG COUNTY EMPLOYEES IN THE STATE; 16
(VIII) CONSUMER PRICES FOR GOODS AND SERVICES A S DEFINED 17
BY PUBLIC AND PRIVAT E SOURCES; 18
(IX) THE OVERALL COMPENSA TION PRESENTLY RECEI VED BY 19
THE EMPLOYEES , INCLUDING DIRECT WAG E COMPENSATION , VACATION, HOLIDAYS, 20
EXCUSED TIME OFF , INSURANCE AND PENSIO NS COSTS, MEDICAL AND 21
HOSPITALIZATION BENE FITS, THE CONTINUITY AND S TABILITY OF EMPLOYME NT, 22
AND ALL OTHER RECEIV ED BENEFITS; 23
(X) CHANGES IN ANY OF TH E FOREGOING CIRCUMST ANCES 24
DURING THE PENDENCY OF THE ARBITRATION; AND 25
(XI) OTHER FACTORS THAT A RE NORMALLY OR TRADI TIONALLY 26
TAKEN INTO CONSIDERA TION IN THE DETERMIN ATION OF WAGES , HOURS, AND 27
CONDITIONS OF EMPLOY MENT THROUGH VOLUNTA RY COLLECTIVE BARGAI NING, 28
MEDIATION, ARBITRATION, OR OTHERWISE BETWEEN TH E PARTIES IN PUBLIC 29
SERVICE OR PRIVATE E MPLOYMENT . 30
(C) THE DECISION OF THE N EUTRAL ARBITRATOR SH ALL BE FINAL AND 31
BINDING ON THE PARTI ES. 32 SENATE BILL 288 11
(D) THE STATE, A STATE INSTITUTION OF HIGHER EDUCATION , AND THE 1
MARYLAND ENVIRONMENTAL SERVICE AND THE GOVERNOR SHALL TAKE A LL 2
ACTIONS NECESSARY TO CARRY OUT AND EFFECT UATE THE FINAL WRITT EN AWARD 3
AND PLACE INTO EFFEC T THE MEMORANDUM OF UNDERSTANDING . 4
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE PARTIES 5
AT ANY TIME MAY AMEN D OR MODIFY THE FINAL WRITTEN AW ARD AND, BY CONSENT, 6
THE AMENDMENTS OR MO DIFICATIONS SHALL BE APPROVED BY THE PART IES AND 7
PLACED IN A SUPPLEME NTAL WRITTEN AWARD B Y THE NEUTRAL ARBITR ATOR THAT 8
SHALL BE FINAL AND B INDING. 9
(2) A SUPPLEMENTAL WRITTEN AWARD UNDER PARAGR APH (1) OF 10
THIS SUBSECTION SHAL L TAKE EFFECT ON THE DATE OF THE ORDER OF THE 11
NEUTRAL ARBITRATOR A ND MAY NOT REQUIRE R ATIFICATION UNDER § 3–601 OF 12
THIS TITLE. 13
(F) A DEADLINE IN THIS SEC TION MAY BE MODIFIED , BASED ON GOOD 14
CAUSE, BY MUTUAL AGREEMENT OF THE PARTIES OR BY ORDER OF THE NEUTRAL 15
ARBITRATOR. 16
(G) (1) THE COSTS OF THE SERV ICES OF THE NEUTRAL ARBITRATOR 17
SHALL BE SHARED EQUA LLY BY THE PARTIES . 18
(2) ALL OTHER COSTS INCUR RED BY EITHER PARTY TO COMPLY WITH 19
THIS SECTION SHALL B E THE RESPONSIBILITY OF THE PARTY INCURRING THE 20
COSTS. 21
3–603. 22
(a) A memorandum of understanding [agreed to and ratified under § 3–601 of this 23
subtitle] may not expire until it is succeeded by a memorandum of understanding that is 24
agreed to and ratified OR ADOPTED BY ARBITR ATION under this title. 25
(b) Notwithstanding § 3–601(b) of this subtitle, all terms of a memorandum of 26
understanding shall continue in force and effect without change until a successor 27
memorandum of understanding is agreed to and ratified. 28
(c) (1) Based on a verified complaint by an exclusive representative, the 29
exclusive representative may file an action in a circuit court against the State, the 30
Maryland Environmental Service, a system institution, Morgan State University, St. 31
Mary’s College of Maryland, or Baltimore City Community College to enforce the terms of 32
this section. 33
12 SENATE BILL 288
(2) On receipt of an action submitted by the exclusive representative, the 1
court shall issue a status quo order without a finding of irreparable harm to maintain a 2
memorandum of understanding and the terms in effect pending a final order in the action. 3
SECTION 2. AND BE IT FURTHER ENACTED, (Three –fifths of all the members 4
elected to each of the two Houses concurring), That it be proposed that the Maryland 5
Constitution read as follows: 6
Article III – Legislative Department 7
52. 8
(1) The General Assembly shall not appropriate any money out of the Treasury 9
except in accordance with the provisions of this section. 10
(2) Every appropriation bill shall be either a Budget Bill, or a Supplementary 11
Appropriation Bill, as hereinafter provided. 12
(3) On the third Wednesday in January in each year, (except in the case of a newly 13
elected Governor, and then not later than ten days after the convening of the General 14
Assembly), unless such time shall be extended by the General Assembly, the Governor shall 15
submit to the General Assembly a Budget for the next ensuing fiscal year. Each Budget 16
shall contain a complete plan of proposed expenditures and estimated revenues for said 17
fiscal year and shall show the estimated surplus or deficit of revenues at the end of the 18
preceding fiscal year. EACH BUDGET SHALL ALSO CON TAIN THE APPROPRIATI ONS 19
NECESSARY TO IMPLEME NT ALL TERMS AND CON DITIONS OF EMPLOYMEN T IN EACH 20
MEMORANDUM OF UNDERS TANDING CONCLUDED WI TH THE STATE, WHETHER 21
REACHED THROUGH MUTU AL AGREEMENT OR ARBI TRATION THAT IS BIND ING ON 22
THE PARTIES, THE GOVERNOR, STATE INSTITUTIONS OF HIGHER EDUCATION , AND 23
THE MARYLAND ENVIRONMENTAL SERVICE, FOR THE NEXT ENSUING FISCAL YEAR 24
FOR STATE EMPLOYEES IN TH E VARIOUS BRANCHES AND D EPARTMENTS OF STATE 25
GOVERNMENT , INCLUDING HIGHER EDU CATION. Accompanying each Budget shall be a 26
statement showing: (a) the revenues and expenditures for the preceding fiscal year; (b) the 27
current assets, liabilities, reserves and surplus or deficit of the State; (c) the debts and 28
funds of the State; (d) an estimate of the State’s financial condition as of the beginning and 29
end of the preceding fiscal year; (e) CHANGES IN WAGES , HOURS, FRINGE BENEFITS , 30
HEALTH BENEFITS , AND OTHER TERMS AND CONDITIONS OF EMPLOY MENT FOR 31
STATE EMPLOYEES INCLU DED IN EACH MEMORAND UM OF UNDERSTANDING 32
COVERING STATE EMPLOYEES FOR T HE NEXT ENSUING FISC AL YEAR; AND (F) any 33
explanation the Governor may desire to make as to the important features of the Budget 34
and any suggestions as to methods for reduction or increase of the State’s revenue. 35
(4) Each Budget shall embrace an estimate of all appropriations in such form and 36
detail as the Governor shall determine or as may be prescribed by law, as follows: (a) for 37
the General Assembly as certified to the Governor in the manner hereinafter provided; (b) 38
for the Executive Department; (c) for the Judiciary Department, as provided by law, as 39 SENATE BILL 288 13
certified to the Governor; (d) to pay and discharge the principal and interest of the debt of 1
the State in conformity with Section 34 of Article III of the Constitution, and all laws 2
enacted in pursuance thereof; (e) for the salaries AND FRINGE BENEFITS payable by the 3
State and under the Constitution and laws of the State, INCLUDING THOSE SALARIES 4
AND BENEFITS COMMITT ED UNDER EACH MEMORA NDUM OF UNDERSTANDIN G 5
COVERING STATE EMPLOYEES ; (f) for the establishment and maintenance throughout 6
the State of a thorough and efficient system of public schools in conformity with Article 8 7
of the Constitution and with the laws of the State; and (g) for such other purposes as are 8
set forth in the Constitution or laws of the State. 9
(5) The Governor shall deliver to the presiding officer of each House the Budget 10
and a bill for all the proposed appropriations of the Budget classified and in such form and 11
detail as the Governor shall determine or as may be prescribed by law; and the presiding 12
officer of each House shall promptly cause said bill to be introduced therein, and such bill 13
shall be known as the “Budget Bill.” The Governor may, with the consent of the General 14
Assembly, before final action thereon by the General Assembly, amend or supplement said 15
Budget to correct an oversight, provide funds contingent on passage of pending legislation 16
or, in case of an emergency, by delivering such an amendment or supplement to the 17
presiding officers of both Houses; and such amendment or supplement shall thereby become 18
a part of said Budget Bill as an addition to the items of said bill or as a modification of or a 19
substitute for any item of said bill such amendment or supplement may affect. 20
(5a) The Budget and the Budget Bill as submitted by the Governor to the General 21
Assembly shall have a figure for the total of all proposed appropriations and a figure for 22
the total of all estimated revenues available to pay the appropriations, and the figure for 23
total proposed appropriations shall not exceed the figure for total estimated revenues. 24
Neither the Governor in submitting an amendment or supplement to the Budget Bill nor 25
the General Assembly in amending the Budget Bill shall thereby cause the figure for total 26
proposed appropriations to exceed the figure for total estimated revenues, including any 27
revisions, and in the Budget Bill as enacted the figure for total estimated revenues always 28
shall be equal to or exceed the figure for total appropriations. 29
(6) The General Assembly shall not amend the Budget Bill so as to affect either 30
the obligations of the State under Section 34 of Article III of the Constitution, or the 31
provisions made by the laws of the State for the establishment and maintenance of a system 32
of public schools or the payment of any salaries required to be paid by the State of Maryland 33
by the Constitution. 34
(6a) In enacting a balanced Budget Bill each fiscal year as required under this 35
Section, the General Assembly may amend the bill by increasing or diminishing the items 36
therein relating to the General Assembly, and by increasing or diminishing the items 37
therein relating to the judiciary, but except as hereinbefore specified, may not alter the bill 38
except to strike out or reduce items therein, provided, however, that the salary or 39
compensation of any public officer may not be decreased during the public officer’s term of 40
office. When passed by both Houses, the Budget Bill shall be presented to the Governor for 41
approval or disapproval according to Section 17 of Article II of this Constitution. 42
14 SENATE BILL 288
(6b) In enacting a balanced Budget Bill as required under this Section for fiscal 1
year 2024 and each fiscal year thereafter, the General Assembly may amend the bill by 2
increasing, diminishing, or adding items therein relating to the General Assembly, by 3
increasing, diminishing, or adding items therein relating to the judiciary, and by 4
increasing, diminishing, or adding items therein relating to the Executive Department, 5
provided that the total of the appropriation for the Executive Department approved by the 6
General Assembly does not exceed the total proposed appropriation for the Executive 7
Department submitted by the Governor. The salary or compensation of any public officer 8
may not be decreased during the public officer’s term of office. When passed by both Houses, 9
the Budget Bill shall be a law immediately without further action by the Governor. 10
(7) The Governor and such representatives of the executive departments, boards, 11
officers and commissions of the State expending or applying for State’s moneys, as have 12
been designated by the Governor for this purpose, shall have the right, and when requested 13
by either House of the General Assembly, it shall be their duty to appear and be heard with 14
respect to any Budget Bill during the consideration thereof, and to answer inquiries relative 15
thereto. 16
(8) Supplementary Appropriation Bill. Either House may consider other 17
appropriations but both Houses shall not finally act upon such appropriations until after 18
the Budget Bill has been finally acted upon by both Houses, and no such other 19
appropriation shall be valid except in accordance with the provisions following: (a) Every 20
such appropriation shall be embodied in a separate bill limited to some single work, object 21
or purpose therein stated and called herein a Supplementary Appropriation Bill; (b) Each 22
Supplementary Appropriation Bill shall provide the revenue necessary to pay the 23
appropriation thereby made by a tax, direct or indirect, to be levied and collected as shall 24
be directed in said bill; (c) No Supplementary Appropriation Bill shall become a law unless 25
it be passed in each House by a vote of a majority of the whole number of the members 26
elected, and the yeas and nays recorded on its final passage; (d) Each Supplementary 27
Appropriation Bill shall be presented to the Governor of the State as provided in Section 28
17 of Article 2 of the Constitution and thereafter all the provisions of said section shall 29
apply. 30
(9) Nothing in this section shall be construed as preventing the General Assembly 31
from passing at any time, in accordance with the provisions of Section 28 of Article 3 of the 32
Constitution and subject to the Governor’s power of approval as provided in Section 17 of 33
Article 2 of the Constitution, an appropriation bill to provide for the payment of any 34
obligation of the State within the protection of Section 10 of Article 1 of the Constitution of 35
the United States. 36
(10) If the Budget Bill shall not have been finally acted upon by the Legislature 37
seven days before the expiration of the regular session, the Governor shall issue a 38
proclamation extending the session for some further period as may, in the Governor’s 39
judgment, be necessary for the passage of such bill; but no matter other than such bill shall 40
be considered during such extended session except a provision for the cost thereof. 41
(11) For the purpose of making up the Budget, the Governor shall require from the 42 SENATE BILL 288 15
proper State officials (including all executive departments, all executive and administrative 1
offices, bureaus, boards, commissions and agencies that expend or supervise the 2
expenditure of, and all institutions applying, for State moneys and appropriations) such 3
itemized estimates and other information, in such form and at such times as directed by 4
the Governor. An estimate for a program required to be funded by a law which will be in 5
effect during the fiscal year covered by the Budget and which was enacted before July 1 of 6
the fiscal year prior to that date shall provide a level of funding not less than that prescribed 7
in the law. The estimates for the Legislative Department, certified by the presiding officer 8
of each House, of the Judiciary, as provided by law, certified by the Chief Justice of the 9
Supreme Court of Maryland, and for the public schools, as provided by law, shall be 10
transmitted to the Governor, in such form and at such times as directed by the Governor, 11
and shall be included in the Budget without revision. 12
(12) The Governor may provide for public hearings on all estimates and may 13
require the attendance at such hearings of representatives of all agencies, and for all 14
institutions applying for State moneys. After such public hearings the Governor may, in 15
the Governor’s discretion, revise all estimates except those for the legislative and judiciary 16
departments, and for the public schools, as provided by law, and except that the Governor 17
may not reduce an estimate for a program below a level of funding prescribed by a law 18
which will be in effect during the fiscal year covered by the Budget, and which was enacted 19
before July 1 of the fiscal year prior thereto. 20
(13) The General Assembly may, from time to time, enact such laws not 21
inconsistent with this section, as may be necessary and proper to carry out its provisions. 22
(14) In the event of any inconsistency between any of the provisions of this Section 23
and any of the other provisions of the Constitution, the provisions of this Section shall 24
prevail. But nothing herein shall in any manner affect the provisions of Section 34 of Article 25
3 of the Constitution or of any laws heretofore or hereafter passed in pursuance thereof, or 26
be construed as preventing the Governor from calling extraordinary sessions of the General 27
Assembly, as provided by Section 16 of Article 2, or as preventing the General Assembly at 28
such extraordinary sessions from considering any emergency appropriation or 29
appropriations. 30
(15) If any item of any appropriation bill passed under the provisions of this 31
Section shall be held invalid upon any ground, such invalidity shall not affect the legality 32
of the bill or of any other item of such bill or bills. 33
SECTION 3. AND BE IT FURTHER ENACTED, That the General Assembly 34
determines that the amendment to the Maryland Constitution proposed by Section 2 of this 35
Act affects multiple jurisdictions and that the provisions of Article XIV, § 1 of the Maryland 36
Constitution concerning local approval of constitutional amendments do not apply. 37
SECTION 4. AND BE IT FURTHER ENACTED, That: 38
(a) The amendment to the Maryland Constitution proposed by Section 2 of this 39
Act shall be submitted to the qualified voters of the State at the next general election to be 40 16 SENATE BILL 288
held in November 2026 for adoption or rejection pursuant to Article XIV of the Maryland 1
Constitution. 2
(b) (1) At that general election, the vote on the proposed amendment to the 3
Constitution shall be by ballot, and on each ballot there shall be printed the words “For the 4
Constitutional Amendment” and “Against the Constitutional Amendment”, as now 5
provided by law. 6
(2) At that general election, a question substantially similar to the 7
following shall be submitted to the qualified voters of the State: 8
“Question ___ – Constitutional Amendment 9
Providing that each budget shall include expenditures necessary to implement wages, 10
hours, fringe benefits, health benefits, and other terms and conditions of employment for 11
State employees concluded in each memorandum of understanding covering State 12
employees.”. 13
(c) Immediately after the election, all returns shall be made to the Governor of 14
the vote for and against the proposed amendment, as directed by Article XIV of the 15
Maryland Constitution, and further proceedings had in accordance with Article XIV. 16
SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in Section 17
4 of this Act, this Act shall take effect July 1, 2025. 18