Arbitration Reform for State Employees Act of 2026

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING 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.
*sb0028*

SENATE BILL 28
P4 CONSTITUTIONAL AMENDMENT 6lr0953
SB 288/25 – B&T & FIN (PRE–FILED) CF HB 604
By: Senator McCray Senators McCray, Augustine, Guzzone, Hettleman, King,
Lewis Young, Rosapepe, and Zucker
Requested: September 24, 2025
Introduced and read first time: January 14, 2026
Assigned to: Budget and Taxation and Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 2, 2026

CHAPTER ______

AN ACT concerning 1

Arbitration Reform for State Employees Act of 2026 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 certain 4
aspects of collective bargaining, establishing a process of arbitration in the event of 5
impasse in negotiations between certain parties, and providing that certain decisions 6
of a neutral arbitrator are advisory; altering the matters that are required to b e 7
included in collective bargaining; requiring that each budget bill submitted by the 8
Governor contain the appropriations necessary to implement all terms and 9
conditions of employment in certain memoranda of understanding for the next 10
ensuing fiscal year; and generally relating to collective bargaining for State 11
employees. 12

BY repealing and reenacting, with amendments, 13
Article – State Finance and Procurement 14
Section 7–108 15
Annotated Code of Maryland 16
(2021 Replacement Volume and 2025 Supplement) 17

BY repealing and reenacting, with amendments, 18
Article – State Personnel and Pensions 19
Section 3–103, 3–501, 3–502, and 3–603 20
Annotated Code of Maryland 21
2 SENATE BILL 28

(2024 Replacement Volume and 2025 Supplement) 1

BY adding to 2
Article – State Personnel and Pensions 3
Section 3–503 4
Annotated Code of Maryland 5
(2024 Replacement Volume and 2025 Supplement) 6

BY proposing an amendment to the Maryland Constitution 7
Article III – Legislative Department 8
Section 52 9

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11

Article – State Finance and Procurement 12

7–108. 13

(a) In accordance with the Maryland Constitution and other law, the Governor 14
shall include in each budget bill: 15

(1) an appropriation to pay the principal of and interest on the State debt; 16

(2) without revision, the appropriations requested for public schools, as 17
certified by the State Superintendent of Schools; 18

(3) without revision, the appropriations requested for the Legislative 19
Branch of the State government, as certified by the presiding officers of the General 20
Assembly; 21

(4) without revision, the appropriations requested for the Judicial Branch 22
of the State government, as certified by the Chief Justice of the Supreme Court of Maryland; 23

(5) the appropriations requested by the Governor for the Executive Branch 24
of the State government; 25

(6) the appropriations required by law to be included with the 26
appropriations for the Executive Branch; 27

(7) appropriations for the salaries required by law to be paid by the State; 28

(8) without revision, appropriations for the Accountability and 29
Implementation Board, as jointly certified by the presiding officers of the General Assembly 30
and the Governor; and 31

SENATE BILL 28 3

(9) any other appropriations required by the Mary land Constitution or 1
other law to be included in the budget bill. 2

(b) The Governor shall use the current salary plan of the Secretary of Budget and 3
Management as the basis for the appropriations to pay those salaries to which the plan 4
applies. 5

(C) IN ADDITION TO THE APPROPRIATIONS REQUIRED UNDER SUBSECTION 6
(A) OF THIS SECTION , THE GOVERNOR SHALL INCLUDE IN EACH ANNUAL BUD GET 7
BILL THE APPROPRIATI ONS NECESSARY TO IMP LEMENT AND FUND ALL TERMS 8
WITHIN EACH MEMORANDUM OF UNDERSTANDING BETWEEN: 9

(1) THE STATE AND EACH EXCLUSIVE REPRESENTATIVE OF IT S 10
EMPLOYEES; 11

(2) STATE INSTITUTIONS OF HIGHER EDUCATION , INCLUDING THE 12
UNIVERSITY SYSTEM OF MARYLAND, AND EACH EXCLUSIVE R EPRESENTATIVE OF 13
THEIR EMPLOYEES; AND 14

(3) THE MARYLAND ENVIRONMENTAL SERVICE AND EACH 15
EXCLUSIVE REPRESENTATIVE OF ITS EMPLOYEES. 16

Article – State Personnel and Pensions 17

3–103. 18

This title and any agreement under this title do not limit or otherwise interfere with 19
the powers of the Governor or the Maryland General Assembly [under] EXCEPT TO 20
OPERATE IN ACCORDANCE WITH AND HAVE THE EFFECT REQUIRED BY Article III, § 21
52 of the Maryland Constitution. 22

3–501. 23

(a) (1) The following individuals or entities shall designate one or more 24
representatives to participate as a party in collectiv e bargaining on behalf of the State or 25
the following institutions: 26

(i) on behalf of the State, the Governor; 27

(ii) on behalf of the Maryland Environmental Service, the Board of 28
Directors of the Service; 29

(iii) on behalf of the University System of Maryland, the Chancellor; 30
and 31

4 SENATE BILL 28

(iv) on behalf of Morgan State University, St. Mary’s College of 1
Maryland, or Baltimore City Community College, the governing board of the institution. 2

(2) The exclusive representative shall designate one or more 3
representatives to participate as a party in collective bargaining on behalf of the exclusive 4
representative. 5

(b) (1) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 6
parties shall meet at reasonable times [and] BETWEEN JULY 1 AND SEPTEMBER 30 TO 7
engage in collective bargaining in good faith [, including facilitating the meaningful use of 8
a fact finder under subsection (c)(3) of this section,] and to conclude a written memorandum 9
of understanding or other written understanding as defined under § 3–101(d)(1)(i)2 of this 10
title. 11

(2) (I) THIS PARAGRAPH DOES NOT APPLY TO: 12

1. A BARGAINING UNIT IN A STATE INSTITUTION OF 13
HIGHER EDUCATION, INCLUDING THE UNIVERSITY SYSTEM OF MARYLAND; OR 14

2. A BARGAINING UNIT FO R THE UNIFORMED FIRE 15
EMPLOYEES OF THE BWI AIRPORT FIRE AND RESCUE DEPARTMENT. 16

(II) 1. FOR EACH BARGAINING U NIT, WHENEVER A 17
MEMORANDUM OF UNDERS TANDING IS TO BE NEG OTIATED, REOPENED, OR 18
AMENDED, EITHER PARTY MAY REQ UEST A NEUTRAL AR BITRATOR FOR THE 19
NEGOTIATIONS ON OR AFTER JULY 1. 20

2. IF NEGOTIATIONS HAVE NOT CONCLUDED BY 21
SEPTEMBER 1, THE PARTIES SHALL SELECT A NEUTRAL ARBITRATOR ON OR BEFORE 22
SEPTEMBER 15. 23

(III) THE ARBITRATOR SHALL BE SELECTED FROM A LIST OF 15 24
ARBITRATORS PROVIDED BY THE AMERICAN ARBITRATION ASSOCIATION’S LABOR 25
ARBITRATION PANEL. 26

(IV) THE LIST SHALL CONSIS T OF QUALIFIED , NATIONWIDE 27
ARBITRATORS WHO ARE MEMBERS OF THE NATIONAL ACADEMY OF ARBITRATION. 28

(V) THE PARTIES SHALL SEL ECT THE ARBITRATOR B Y 29
ALTERNATELY STRIKING NAMES FROM THE LIST UNTIL ONE NAME REMAINS. 30

(VI) THE SELECTED ARBITRAT OR MUST BE ABLE AND 31
AVAILABLE TO PERFORM THE DUTIES AND TO HO LD HEARINGS, BOTH IN PERSON 32
AND THROUGH REMOTE COMMUNICATION, CONSISTENT WITH THIS TITLE. 33

SENATE BILL 28 5

(VII) THE ARBITRATOR SHALL HAVE THE POWERS AND 1
RESPONSIBILITIES UNDER § 3–503 OF THIS SUBTITLE. 2

(VIII) THE SELECTED ARBITRAT OR SHALL ACCEPT THE 3
APPOINTMENT BY THE E ARLIER OF SEPTEMBER 30 OR 15 DAYS AFTER THE DAY A 4
PARTY REQUESTS AN AR BITRATOR BE SELECTED, OR THE PARTIES MAY AGRE E TO 5
MAKE AN ALTERNATIVE APPOINTMENT FROM: 6

1. THE LIST ORIGINALLY PROVIDED BY THE AMERICAN 7
ARBITRATION ASSOCIATION; OR 8

2. A LIST OF NATIONWIDE ARBITRATORS PROVIDED BY 9
THE FEDERAL MEDIATION AND CONCILIATION SERVICE. 10

(3) THE PARTIES SHALL MAKE A REASONABLE EFFORT TO BEGIN 11
NEGOTIATIONS ON OR NEAR JULY 1, INCLUDING THE EXCHANGE OF INFORMATION 12
NECESSARY TO RESPONS IBLY CONDUCT AND CON CLUDE NEGOTIATIONS B Y 13
SEPTEMBER 30. 14

(c) [(1) THIS SUBSECTION APPLI ES ONLY WITH RESPECT TO A STATE 15
INSTITUTION OF HIGHE R EDUCATION , INCLUDING THE UNIVERSITY SYSTEM OF 16
MARYLAND. 17

(2) The parties shall make every reasonable effort to conclude negotiations 18
in a timely manner for inclusion by the principal unit in its budget request to the Governor. 19

(2) (3) (i) The parties shall conclude negotiations before January 1 20
for any item requiring an appropriation of funds for the fiscal year that begins on the 21
following July 1. 22

(ii) In the budget bill submitted to the General Assembly, the 23
Governor shall include any amounts in the budgets of the principal units required to 24
accommodate any additional cost resulting from the negotiations, including the actuarial 25
impact of any legislative changes to any of the State pension or retirement systems that 26
are required, as a result of the negotiations, for the fiscal year beginning the following July 27
1 if the legislative changes have been negotiated to become effective in that fiscal year. 28

(3) (i) This paragraph does not apply to negotiations between the State 29
and the exclusive representative of the uniformed fire employees of the BWI Airport Fire 30
and Rescue Department. 31

(ii) (4) If the parties do not conclude negotiations for the next 32
fiscal year before October 25, either party may request that a fact finder be employed to 33
resolve the issues. 34

6 SENATE BILL 28

(iii) (5) The fact finder shall be employed no later than November 1
1. 2

(iv) (6) A fact finder shall be a neutral party appointed by 3
alternate striking from a list by the parties provided: 4

1. (I) by the Federal Mediation and Conciliation Service; or 5

2. (II) under the Labor Arbitration Rules of the American 6
Arbitration Association. 7

(v) (7) The fact finder: 8

1. (I) may give notice and hold hearings in accordance with the 9
Administrative Procedure Act; 10

2. (II) may administer oaths and take testimony and other 11
evidence; 12

3. (III) may issue subpoenas; and 13

4. (IV) before November 20, shall make written 14
recommendations regarding wages, hours, and working conditions, and any other terms or 15
conditions of employment that may be in dispute. 16

(vi) (8) The written recommendations of the fact finder shall be 17
delivered to the Governor, the exclusive representative, the President of the Senate, and 18
the Speaker of the House of Delegates by the Secretary on or before December 1.] 19

[(4) (i)] (D) (1) This [paragraph] SUBSECTION applies only to 20
negotiations between the State and the exclusive representative of the uniformed fire 21
employees of the BWI Airport Fire and Rescue Department. 22

[(ii)] (2) The parties shall reach an agreement by September 30 of 23
the year in which a collective bargaining agreement will expire. 24

[(iii)] (3) An impasse is reached during the negotiations if the 25
parties do not reach an agreement: 26

[1.] (I) by stating that they mutually agree they are at an 27
impasse; or 28

[2.] (II) on or before October 1 of the year in which a 29
collective bargaining agreement will expire. 30

SENATE BILL 28 7

[(iv)] (4) If an impasse is reached under [subparagraph (iii) of this 1
paragraph] PARAGRAPH (3) OF THIS SUBSECTION, each party shall submit its last, best, 2
and final offer to the other party within 48 hours after the impasse is reached. 3

[(v) 1.] (5) (I) Unless the impasse has been resolved, the 4
parties shall meet within 5 business days after th e impasse is reached under 5
[subparagraph (iii) of this paragraph] PARAGRAPH (3) OF THIS SUBSECTION to select an 6
arbitrator from a list of 15 arbitrators provided by the American Arbitration Association’s 7
labor arbitration panel. 8

[2.] (II) The parties shall select the arbitrator by alternately 9
striking a name from the list until one name remains. 10

[3.] (III) If the selected arbitrator is unable to fulfill the 11
responsibilities of the arbitration, the selection process shall be repeated using a new list 12
of arbitrators until an arbitrator is selected. 13

[4.] (IV) The parties shall submit the dispute and the last, 14
best, and final offers to the arbitrator within 5 business days after the arbitrator is selected. 15

[(vi) 1.] (6) (I) The arbitrator shall hold formal hearings as 16
necessary in order to resolve the impasse. 17

[2.] (II) During the first 21 days immediately following the 18
appointment of the arbitrator and before holding any formal hearings, the arbitrator may, 19
if determined appropriate by the arbitrator, attempt to resolve the impasse by acting as a 20
neutral mediator between the parties. 21

[(vii)] (7) The arbitrator shall select one party’s last, best, and final 22
offer on or before December 15. 23

[(viii) 1.] (8) (I) Subject to [subsubparagraph 2 of this 24
subparagraph] SUBPARAGRAPH (II) OF THIS PARAGRAPH, the decision of the arbitrator 25
is binding on the parties. 26

[2.] (II) A decision of an arbitrator under this paragraph 27
related to wages is subject to the limitations of the State budget. 28

[(ix)] (9) The parties shall equally share the costs of the services of 29
the arbitrator. 30

(d) (E) (1) A memorandum of understanding [that incorporates all matters 31
of agreement reached by the parties ] REACHED BY MUTUAL AG REEMENT shall be 32
executed by the exclusive representative and: 33

8 SENATE BILL 28

(i) for a memorandum of understanding relating to the State, the 1
Governor or the Governor’s designee; 2

(ii) for a memorandum of understanding relating to the Maryland 3
Environmental Service, the Board of Directors of the Service; 4

(iii) for a memorandum of understanding relating to a system 5
institution, the Chancellor or the Chancellor’s designee; and 6

(iv) for a memorandum of understanding relating to Morgan State 7
University, St. Mary’s Co llege of Maryland, or Baltimore City Community College, the 8
governing board of the institution or the governing board’s designee. 9

(2) (I) THIS PARAGRAPH DOES N OT APPLY TO MATTERS 10
INVOLVING A STATE INSTITUTION OF HIGHER EDUCATION , INCLUDING THE 11
UNIVERSITY SYSTEM OF MARYLAND. 12

(II) To the extent [these] matters INCORPORATED IN A 13
MEMORANDUM OF UNDERSTANDING require legislative approval or the appropriation of 14
funds, the matters shall be [recommended] REFERRED to the General Assembly for 15
LEGISLATIVE approval or for the appropriation of funds AS REQUIRED UNDER ARTICLE 16
III, § 52 OF THE MARYLAND CONSTITUTION. 17

(3) To the extent matters involving a State institution of higher education 18
require legislative approval OR THE APPROPRIATION OF FUNDS , the legislation 19
MATTERS shall be [recommended] REFERRED to the Governor [for submission to ] AND 20
the General Assembly FOR LEGISLATIVE APPR OVAL OR THE APPROPRI ATION OF 21
FUNDS. 22

(e) (F) (1) Except as provided in paragraph (2) of this subsection, 23
negotiations for a memorandum of understanding shall be considered closed sessions under 24
§ 3–305 of the General Provisions Article. 25

(2) An exclusive representative may not be considered a public body under 26
§ 3–101 of the General Provisions Article. 27

(f) (G) (1) The terms of a memorandum of understanding executed by the 28
Governor or the Governor’s designee and an exclusive representative of a bargaining unit 29
for skilled service or professional service employees in the State Personnel Management 30
System are not applicable to employees of a State institution of higher education. 31

(2) The terms of a memorandum of understanding executed by the 32
Chancellor or the governing board of Morgan State University, St. Mary’s College of 33
Maryland, or Baltimore City Community College, or t heir respective designees, and the 34
exclusive representative of a bargaining unit for employees of a State institution of higher 35
SENATE BILL 28 9

education are not applicable to skilled service or professional service employees in the State 1
Personnel Management System. 2

3–502. 3

(a) Collective bargaining shall include all matters relating to: 4

(1) wages, hours, FRINGE BENEFITS OTHER THAN PENSION BENEFITS, 5
HEALTH BENEFITS, and other terms and conditions of employment; and 6

(2) the time and manner of access to a new employee program in 7
accordance with § 22–207 of the State Government Article. 8

(b) Notwithstanding subsection (a) of this section, the representatives of the 9
State, the Maryland Environmental Service, a system institution, Morgan State 10
University, St. Mary’s College of Maryland, and Baltimore City Community College: 11

(1) may not be required to negotiate over any matter that is inconsistent 12
with applicable law; and 13

(2) may negotiate and reach agreement with regard to any such matter 14
THAT IS INCONSISTEN T WITH APPLICABLE LA W only if it is understood that , WITH 15
RESPECT TO THE MATTE R, the agreement [with respect to such matter ] OR 16
MEMORANDUM OF UNDERSTANDING cannot become effective unless the applicable law 17
is amended by the General Assembly. 18

3–503. 19

(A) THIS SECTION DOES NOT APPLY WITH RESPECT T O A STATE 20
INSTITUTION OF HIGHE R EDUCATION , INCLUDING THE UNIVERSITY SYSTEM OF 21
MARYLAND. 22

(A) (B) (1) A NEUTRAL ARBITRATOR SELECTED UNDER § 3–501(B) OF 23
THIS SUBTITLE: 24

(I) MAY MEDIATE OR AID IN THE RESOLUTION OF ANY DISPUTE 25
BETWEEN THE PARTIES REGARDING THE CONDUCT OF NEGOTIATIONS; 26

(II) MAY RECEIVE FROM THE PARTIES COPIES OF INFORMATION 27
REQUESTS PRESENTED A ND RESPONSES RECEIVE D TO MEDIATE OR AID IN THE 28
RESOLUTION OF DISPUTES THAT ARISE BETWEE N THE PARTIES CON SISTENT WITH 29
THIS TITLE; AND 30

(III) MAY DIRECT PRODUCTIO N OF ESTIMATES OF RE VENUES 31
AND EXPENDITURES COM PILED BY THE STATE BOARD OF REVENUE ESTIMATES, 32
10 SENATE BILL 28

THE BUREAU OF REVENUE ESTIMATES, OR THE CONSENSUS REVENUE 1
MONITORING AND FORECASTING GROUP. 2

(2) (I) THE OPINIONS AND GUID ANCE ISSUED BY THE N EUTRAL 3
ARBITRATOR UNDER THIS SUBSECTION SHALL BE ADVISORY ON THE PA RTIES AND 4
THE GOVERNOR. 5

(II) THE USE OF A NEUTRAL ARBITRATOR DOES NOT DIMINISH 6
OR LIMIT THE RIGHTS OF ANY PARTY TO FILE AND PURSUE A COMPLAINT OF UNFAIR 7
LABOR PRACTICES BEFORE THE BOARD. 8

(B) (C) (1) IF EITHER PARTY DECLA RES AN IMPASSE ON OR AFTER 9
OCTOBER 1, ARBITRATION SHALL PROCEED AS DESCRIBED IN THIS SUBSECTION. 10

(2) (I) ON THE FIFTH BUSINESS DAY AFTER THE IMPASS E IS 11
DECLARED, EACH PARTY SHALL SUBMIT TO THE NEUTRAL ARBITRATOR, IN WRITING 12
AND WITH A COPY TO T HE OTHER PARTY , A LAST , BEST, AND FINAL OFFER , 13
INCLUDING: 14

1. ALL PROVISIONS IN THE EXISTING MEMORANDUM OF 15
UNDERSTANDING NOT TO BE MODIFIED; 16

2. ALL NEW, AMENDED, OR MODIFIED MEMORANDUM OF 17
UNDERSTANDING PROVISIONS AGREED TO BY TH E PARTIES BEFORE THE IMPASSE 18
WAS DECLARED THAT AR E TO BE INCLUDED THR OUGH WRITTEN MUTUAL 19
AGREEMENT; AND 20

3. SUBJECT TO SUBPARAGR APH (II) OF THIS 21
PARAGRAPH, DETAILED FURTHER PRO VISIONS THAT A PARTY IS PROPOSING FOR 22
INCLUSION IN A MEMORANDUM OF UNDERSTANDING. 23

(II) FURTHER PROVISIONS AR E LIMITED TO SPECIFI C 24
PROPOSALS THAT WERE SUBMITTED IN WRITING TO THE OTHER PARTY A ND WERE 25
THE SUBJECT OF COLLECTIVE BARGAINING BETWEEN THE PARTIES UP TO THE TIME 26
OF IMP ASSE, INCLUDING PROPOSALS THAT THE PARTIES HAV E DECIDED TO 27
INCLUDE IN THE MEMORANDUM OF UNDERSTANDING THROUGH WRITTEN MUTUAL 28
AGREEMENT. 29

(3) THE NEUTRAL ARBITRATO R ACTING AS A MEDIAT OR SHALL 30
ATTEMPT TO RESOLVE THE IMPASSE BEFORE A FORMAL HEARING ON THE IMPASSE. 31

(4) (I) WITHIN 30 CALENDAR DAYS AFTER A DECLARED IMPASSE, 32
THE NEUTRAL ARBITRAT OR SHALL HOLD A FORM AL HEARING AT WHICH THE 33
SENATE BILL 28 11

PARTIES MAY SUBMIT , IN WRITING OR ORAL T ESTIMONY, ALL INFORMATION OR 1
DATA SUPPORTING THE FINAL POSITIONS. 2

(II) ABSENT MUTUAL AGREEMENT BETWEEN THE PARTIES, OR 3
AS OTHERWISE ORDERED BY THE NEUTRAL ARBIT RATOR, THE FORMAL HEARING 4
SHALL CONCLUDE WITHIN 45 CALENDAR DAYS AFTER THE IMPASSE DATE. 5

(5) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 6
PARAGRAPH, THE ARBITRATION SHALL CONCLUDE WITH A WRITTEN AWARD THAT 7
SUSTAINS IN ITS ENTI RETY THE LAST , BEST, AND FINAL OFFER OF O NE OF THE 8
PARTIES. 9

(II) BEFORE A WRITTEN AWAR D IS ISSUED , BY WRITTEN 10
AGREEMENT SIGNED BY THE REPRESENTATIVES OF THE PARTIES PARTICIPATING IN 11
THE ARBITRATION, THE PARTIES MAY DIRECT THE NEUTRAL ARBITRATOR TO RULE 12
ON SPECIFICALLY IDENTIFIED TOPICS OF BARGAINING. 13

(6) (I) THE NEUTRAL ARBITRATO R SHALL ISSUE A PREL IMINARY 14
WRITTEN AWARD ON OR BEFORE DECEMBER 5. 15

(II) THE PRELIMINARY WRITT EN AWARD SHALL ADDRESS ALL 16
PROVISIONS THAT EACH PARTY PROPOSED IN ITS RESPECTIVE FINAL POSITION FOR 17
INCLUSION IN A MEMORANDUM OF UNDERSTANDING. 18

(III) WITHIN 5 BUSINESS DAYS AFTER RECEIPT OF THE 19
PRELIMINARY WRITTEN AWARD, THE PARTIES SHALL REVIEW THE AWARD AND MAY 20
SEVERALLY OR MUTUALLY REQUEST CHANGES OR ADJUSTMENTS IN THE AWARD. 21

(IV) ON OR BEFORE DECEMBER 15, THE NEUTRAL ARBITRATOR 22
SHALL ISSUE A FINAL WRITTEN AWARD IN WHICH THE ARBITRATOR: 23

1. SHALL ORDER IMPLEMENTATION OF THE LAST, BEST, 24
AND FINAL OFFER OF EITHER PARTY IN ITS ENTIRETY, INCORPORATING ANY 25
VOLUNTARILY AGREED–TO TERMS BETWEEN THE PARTIES; AND 26

2. SHALL INCLUDE: 27

A. ANY VOLUNTARILY AGREED–TO TERMS BETWEEN THE 28
PARTIES; AND 29

B. ANY PRIOR TERM THAT BY AGREEMENT IS NOT TO BE 30
CHANGED FOR THE NEXT FISCAL YEAR. 31

12 SENATE BILL 28

(V) AFTER DECEMBER 15, IF REQUESTED BY EITH ER PARTY , 1
THE NEUTRAL ARBITRAT OR SHALL ISSUE BY JANUARY 20 OF THE IMMEDIATELY 2
FOLLOWING YEAR A STATEMENT OF REASONS FOR THE FINAL WRITTEN AWARD. 3

(7) THE NEUTRAL ARBITRATO R SHALL CONSID ER THE FOLLOWING 4
WHEN DEVELOPING A WRITTEN AWARD: 5

(I) THE LAWFUL AUTHORITY OF THE EMPLOYER , INCLUDING 6
THE OBLIGATION OF TH E EMPLOYER TO USE SP ECIAL FUNDS ONLY FOR 7
AUTHORIZED PURPOSES UNDER LIMITATIONS IMPOSED BY FEDERAL OR STATE LAW; 8

(II) STIPULATIONS OF THE PARTIES; 9

(III) THE INTERESTS AND WELFARE OF THE PUBLIC; 10

(IV) THE FINANCIAL ABILIT Y OF THE EMPLOYER TO MEET 11
COSTS, WITHOUT THE PREMISE THAT THE EMPLOYER MA Y NEED TO INCREASE O R 12
IMPOSE NEW TAXES, FEES, OR CHARGES, OR DEVELOP OTHER SOURCES OF REVENUE 13
OR TRANSFER FUNDS FROM THE REVENUE STABILIZATION ACCOUNT ESTABLISHED 14
UNDER § 7–311 OF THE STATE FINANCE AND PROCUREMENT ARTICLE; 15

(V) THE PRESENT AND FUTU RE GENERAL ECONOMIC 16
CONDITION OF THE STATE OR STATE INSTITUTIONS OF HIGHER EDUCATION; 17

(VI) COMPARISONS OF WAGES , HOURS, AND CONDITIONS OF 18
EMPLOYMENT OF THE EMPLOYEES INVOLVED WITH ARBITRATION WITH THE WAGES, 19
HOURS, AND CONDITIONS OF EM PLOYMENT OF OTHER EM PLOYEES PERFORMING 20
SIMILAR SERVICES IN PUBLIC EMPLOYMENT IN ADJACENT STATES; 21

(VII) COMPARISONS OF COLLE CTIVE BARGAINING PAT TERNS IN 22
OTHER STATES AND AMONG COUNTY EMPLOYEES IN THE STATE; 23

(VIII) CONSUMER PRICES FOR GOODS AND SERVICES AS DEFINED 24
BY PUBLIC AND PRIVATE SOURCES; 25

(IX) THE OVERALL COMPENSA TION PRESENTLY RECEI VED BY 26
THE EMPLOYEES, INCLUDING DIRECT WAGE COMPENSATION, VACATION, HOLIDAYS, 27
EXCUSED TIME OFF , INSURANCE AND PENSIO NS COSTS , MEDICAL AND 28
HOSPITALIZATION BENEFITS, THE CONTINUITY AND S TABILITY OF EMPLOYME NT, 29
AND ALL OTHER RECEIVED BENEFITS; 30

(X) CHANGES IN ANY OF THE FOREGOING CIRCUM STANCES 31
DURING THE PENDENCY OF THE ARBITRATION; AND 32

SENATE BILL 28 13

(XI) OTHER FACTORS THAT ARE NORMALLY OR TRADITIONALLY 1
TAKEN INTO CONSIDERA TION IN THE DETERMIN ATION OF WAGES , HOURS, AND 2
CONDITIONS OF EMPLOY MENT THROUGH VOLUNTA RY COLLECTIVE BARG AINING, 3
MEDIATION, ARBITRATION, OR OTHERWISE BETWEEN THE PARTIES IN PUBLI C 4
SERVICE OR PRIVATE EMPLOYMENT. 5

(8) A WRITTEN AWARD REQUIR ED UNDER THIS SUBSEC TION SHALL 6
INCLUDE A STATEMENT , PREPARED IN CONSULTA TION WITH BOTH PARTI ES, 7
DETAILING THE MULTI–YEAR FISCAL IMPACT TO THE GENERAL FUND OF THE STATE 8
FROM PARAGRAPH (7)(IV) AND (V) OF THIS SUBSECTION. 9

(C) (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 10
DECISION OF THE NEUT RAL ARBITRATOR SHALL BE FINAL AND BINDING ON THE 11
PARTIES. 12

(2) A DECISION AS TO A MATTER REQUIRING A CHANGE IN LAW OR AN 13
APPROPRIATION OF FUN DS IS CONTINGENT ON THE ENACTMENT OF LEGISLATION 14
MAKING THE CHANGE IN LAW OR APPROVAL OF THE APPR OPRIATION BY THE 15
GENERAL ASSEMBLY IN ACCORDANCE WITH ARTICLE III, § 52 OF THE MARYLAND 16
CONSTITUTION. 17

(3) A DECISION OF AN ARBIT RATOR UNDER THIS SUB SECTION 18
RELATED TO WAGES IS SUBJECT TO THE LIMITATIONS OF THE STATE BUDGET. 19

(D) (E) THE STATE, A STATE INSTITUTION OF HIGHER EDUCATION, AND 20
THE MARYLAND ENVIRONMENTAL SERVICE AND THE GOVERNOR SHALL TAKE ALL 21
ACTIONS NECESSARY TO CARRY OUT AND EFFECTUATE THE FINAL WRITTEN AWARD 22
AND PLACE INTO EFFECT THE MEMORANDUM OF UNDERSTANDING. 23

(E) (F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 24
PARTIES AT ANY TIME MAY AMEND OR MODIFY THE FINAL WRITTEN AWARD AND, BY 25
CONSENT, THE AMENDMENTS OR MO DIFICATIONS SHALL BE APPROVED BY THE 26
PARTIES AND PLACED I N A SUPPLEMENTAL WRI TTEN AWARD BY THE NE UTRAL 27
ARBITRATOR THAT SHALL BE FINAL AND BINDING. 28

(2) A SUPPLEMENTAL WRITTEN AWARD UNDER PARAGRAP H (1) OF 29
THIS SUBSECTION SHAL L TAKE EFFECT ON THE DATE OF THE ORDER OF THE 30
NEUTRAL ARBITRATOR A ND MAY NOT REQUIRE R ATIFICATION UNDER § 3–601 OF 31
THIS TITLE. 32

(F) (G) A DEADLINE IN THIS SECTION MAY BE MODIFIED, BASED ON GOOD 33
CAUSE, BY MUTUAL AGREEMENT OF THE PARTIES OR BY ORDER OF THE NEUTRAL 34
ARBITRATOR. 35

14 SENATE BILL 28

(G) (H) (1) THE COSTS OF THE SERV ICES OF THE NEUTRAL 1
ARBITRATOR SHALL BE SHARED EQUALLY BY THE PARTIES. 2

(2) ALL OTHER COSTS INCURRED BY EITHER PARTY TO COMPLY WITH 3
THIS SECTION SHALL B E THE RESPONSIBILITY OF THE PARTY INCURRI NG THE 4
COSTS. 5

3–603. 6

(a) A memorandum of understanding [agreed to and ratified under § 3–601 of this 7
subtitle] may not expire until it is succeeded by a memorandum of understanding that is 8
agreed to and ratified or adopted by arbitration under this title. 9

(b) Notwithstanding § 3 –601(b) of this subtitle, all terms of a memorandum of 10
understanding shall continue i n force and effect without change until a successor 11
memorandum of understanding is agreed to and ratified. 12

(c) (1) Based on a verified complaint by an exclusive representative, the 13
exclusive representative may file an action in a circuit court against th e State, the 14
Maryland Environmental Service, a system institution, Morgan State University, St. 15
Mary’s College of Maryland, or Baltimore City Community College to enforce the terms of 16
this section. 17

(2) On receipt of an action submitted by the exclusive representative, the 18
court shall issue a status quo order without a finding of irreparable harm to maintain a 19
memorandum of understanding and the terms in effect pending a final order in the action. 20

SECTION 2. AND BE IT FURTHER ENACTED, (Three –fifths of a ll the members 21
elected to each of the two Houses concurring), That it be proposed that the Maryland 22
Constitution read as follows: 23

Article III – Legislative Department 24

52. 25

(1) The General Assembly shall not appropriate any money out of the Treasury 26
except in accordance with the provisions of this section. 27

(2) Every appropriation bill shall be either a Budget Bill, or a Supplementary 28
Appropriation Bill, as hereinafter provided. 29

(3) On the third Wednesday in January in each year, (except in the case of a newly 30
elected Governor, and then not later than ten days after the convening of the General 31
Assembly), unless such time shall be extended by the General Assembly, the Governor shall 32
submit to the General Assembly a Budget for the next ensuing fiscal yea r. Each Budget 33
shall contain a complete plan of proposed expenditures and estimated revenues for said 34
SENATE BILL 28 15

fiscal year and shall show the estimated surplus or deficit of revenues at the end of the 1
preceding fiscal year. EACH BUDGET SUBMITTED BY THE GOVERNOR SHALL ALSO 2
CONTAIN THE PROPOSED APPROPRIATIONS NECESSARY TO IMPLEMENT ALL TERMS 3
AND CONDITIONS OF EM PLOYMENT IN EACH MEM ORANDUM OF UNDERSTAN DING 4
CONCLUDED WITH THE STATE AND ANY INSTITUTION OF HIGHER EDUCATION 5
INCLUDING THE UNIVERSITY SYSTEM OF MARYLAND, WHETHER REACHED 6
THROUGH MUTUAL AGREE MENT OR ARBITRATION THAT IS BINDING ON T HE 7
PARTIES, THE GOVERNOR, STATE INSTITUTIONS OF HIGHER EDUCATION, AND THE 8
MARYLAND ENVIRONMENTAL SERVICE, FOR THE NEXT ENSUING FISCAL YEAR FOR 9
STATE EMPLOYEES IN TH E VARIOUS BRANCHES A ND DEPARTMENTS OF STATE 10
GOVERNMENT, INCLUDING HIGHER EDUCATION. Accompanying each Budget shall be a 11
statement showing: (a) the revenues and expenditures for the preceding fiscal year; (b) the 12
current assets, liabilities, reserves and surplus or deficit of the State; (c) the debts and 13
funds of the State; (d) an estimate of the State’s financial condition as of the beginning and 14
end of the preceding fiscal year; (e) CHANGES IN WAGES , HOURS, FRINGE BENEFITS, 15
HEALTH BENEFITS , AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT FOR 16
STATE EMPLOYEES INCLU DED IN EACH MEMORAND UM OF UNDERSTANDING 17
COVERING STATE EMPLOYEES FOR T HE NEXT ENSUING FISC AL YEAR; AND (F) any 18
explanation the Governor may desire to make as to the important features of the Budget 19
and any suggestions as to methods for reduction or increase of the State’s revenue. 20

(4) Each Budget shall embrace an estimate of all appropriations in such form and 21
detail as the Governor shall determine or as may be prescribed by law, as follows: (a) for 22
the General Assembly as certified to the Governor in the manner hereinafter provided; (b ) 23
for the Executive Department; (c) for the Judiciary Department, as provided by law, as 24
certified to the Governor; (d) to pay and discharge the principal and interest of the debt of 25
the State in conformity with Section 34 of Article III of the Constitutio n, and all laws 26
enacted in pursuance thereof; (e) for the salaries AND FRINGE BENEFITS payable by the 27
State and under the Constitution and laws of the State , INCLUDING THOSE SALARIES 28
AND BENEFITS COMMITT ED UNDER EACH MEMORA NDUM OF UNDERSTANDIN G 29
COVERING STATE EMPLOYEES; (f) for the establishment and maintenance throughout 30
the State of a thorough and efficient system of public schools in conformity with Article 8 31
of the Constitution and with the laws of the State; and (g) for such other purposes as are 32
set forth in the Constitution or laws of the State. 33

(5) The Governor shall deliver to the presiding officer of each House the Budget 34
and a bill for all the proposed appropriations of the Budget classified and in such form and 35
detail as the Governor shall dete rmine or as may be prescribed by law; and the presiding 36
officer of each House shall promptly cause said bill to be introduced therein, and such bill 37
shall be known as the “Budget Bill.” The Governor may, with the consent of the General 38
Assembly, before final action thereon by the General Assembly, amend or supplement said 39
Budget to correct an oversight, provide funds contingent on passage of pending legislation 40
or, in case of an emergency, by delivering such an amendment or supplement to the 41
presiding officers of both Houses; and such amendment or supplement shall thereby become 42
16 SENATE BILL 28

a part of said Budget Bill as an addition to the items of said bill or as a modification of or a 1
substitute for any item of said bill such amendment or supplement may affect. 2

(5a) The Budget and the Budget Bill as submitted by the Governor to the General 3
Assembly shall have a figure for the total of all proposed appropriations and a figure for 4
the total of all estimated revenues available to pay the appropriations, and the figure fo r 5
total proposed appropriations shall not exceed the figure for total estimated revenues. 6
Neither the Governor in submitting an amendment or supplement to the Budget Bill nor 7
the General Assembly in amending the Budget Bill shall thereby cause the figure for total 8
proposed appropriations to exceed the figure for total estimated revenues, including any 9
revisions, and in the Budget Bill as enacted the figure for total estimated revenues always 10
shall be equal to or exceed the figure for total appropriations. 11

(6) The General Assembly shall not amend the Budget Bill so as to affect either 12
the obligations of the State under Section 34 of Article III of the Constitution, or the 13
provisions made by the laws of the State for the establishment and maintenance of a system 14
of public schools or the payment of any salaries required to be paid by the State of Maryland 15
by the Constitution. 16

(6a) In enacting a balanced Budget Bill each fiscal year as required under this 17
Section, the General Assembly may amend the bill by in creasing or diminishing the items 18
therein relating to the General Assembly, and by increasing or diminishing the items 19
therein relating to the judiciary, but except as hereinbefore specified, may not alter the bill 20
except to strike out or reduce items ther ein, provided, however, that the salary or 21
compensation of any public officer may not be decreased during the public officer’s term of 22
office. When passed by both Houses, the Budget Bill shall be presented to the Governor for 23
approval or disapproval according to Section 17 of Article II of this Constitution. 24

(6b) In enacting a balanced Budget Bill as required under this Section for fiscal 25
year 2024 and each fiscal year thereafter, the General Assembly may amend the bill by 26
increasing, diminishing, or addi ng items therein relating to the General Assembly, by 27
increasing, diminishing, or adding items therein relating to the judiciary, and by 28
increasing, diminishing, or adding items therein relating to the Executive Department, 29
provided that the total of the appropriation for the Executive Department approved by the 30
General Assembly does not exceed the total proposed appropriation for the Executive 31
Department submitted by the Governor. The salary or compensation of any public officer 32
may not be decreased during the public officer’s term of office. When passed by both Houses, 33
the Budget Bill shall be a law immediately without further action by the Governor. 34

(7) The Governor and such representatives of the executive departments, boards, 35
officers and commissions of the State expending or applying for State’s moneys, as have 36
been designated by the Governor for this purpose, shall have the right, and when requested 37
by either House of the General Assembly, it shall be their duty to appear and be heard with 38
respect to any Budget Bill during the consideration thereof, and to answer inquiries relative 39
thereto. 40

SENATE BILL 28 17

(8) Supplementary Appropriation Bill. Either House may consider other 1
appropriations but both Houses shall not finally act upon such appropriations until after 2
the Budget Bill has been finally acted upon by both Houses, and no such other 3
appropriation shall be valid except in accordance with the provisions following: (a) Every 4
such appropriation shall be embodied in a separate bill limited to some single work, object 5
or purpose therein stated and called herein a Supplementary Appropriation Bill; (b) Each 6
Supplementary Appropriation Bill shall provide the revenue necessary to pay the 7
appropriation thereby made by a tax, direct or indirect, to be levied and collected as shall 8
be directed in said bill; (c) No Supplementary Appropriation Bill shall become a law unless 9
it be passed in each House by a vote of a majority of the whole number of the members 10
elected, and the yeas and nays recorded on its final passage; (d) Ea ch Supplementary 11
Appropriation Bill shall be presented to the Governor of the State as provided in Section 12
17 of Article 2 of the Constitution and thereafter all the provisions of said section shall 13
apply. 14

(9) Nothing in this section shall be construed as preventing the General Assembly 15
from passing at any time, in accordance with the provisions of Section 28 of Article 3 of the 16
Constitution and subject to the Governor’s power of approval as provided in Section 17 of 17
Article 2 of the Constitution, an appr opriation bill to provide for the payment of any 18
obligation of the State within the protection of Section 10 of Article 1 of the Constitution of 19
the United States. 20

(10) If the Budget Bill shall not have been finally acted upon by the Legislature 21
seven da ys before the expiration of the regular session, the Governor shall issue a 22
proclamation extending the session for some further period as may, in the Governor’s 23
judgment, be necessary for the passage of such bill; but no matter other than such bill shall 24
be considered during such extended session except a provision for the cost thereof. 25

(11) For the purpose of making up the Budget, the Governor shall require from the 26
proper State officials (including all executive departments, all executive and administrative 27
offices, bureaus, boards, commissions and agencies that expend or supervise the 28
expenditure of, and all institutions applying, for State moneys and appropriations) such 29
itemized estimates and other information, in such form and at such times as direct ed by 30
the Governor. An estimate for a program required to be funded by a law which will be in 31
effect during the fiscal year covered by the Budget and which was enacted before July 1 of 32
the fiscal year prior to that date shall provide a level of funding not less than that prescribed 33
in the law. The estimates for the Legislative Department, certified by the presiding officer 34
of each House, of the Judiciary, as provided by law, certified by the Chief Justice of the 35
Supreme Court of Maryland, and for the public schools, as provided by law, shall be 36
transmitted to the Governor, in such form and at such times as directed by the Governor, 37
and shall be included in the Budget without revision. 38

(12) The Governor may provide for public hearings on all estimates and m ay 39
require the attendance at such hearings of representatives of all agencies, and for all 40
institutions applying for State moneys. After such public hearings the Governor may, in 41
the Governor’s discretion, revise all estimates except those for the legislative and judiciary 42
departments, and for the public schools, as provided by law, and except that the Governor 43
18 SENATE BILL 28

may not reduce an estimate for a program below a level of funding prescribed by a law 1
which will be in effect during the fiscal year covered by the Budget, and which was enacted 2
before July 1 of the fiscal year prior thereto. 3

(13) The General Assembly may, from time to time, enact such laws not 4
inconsistent with this section, as may be necessary and proper to carry out its provisions. 5

(14) In the event of any inconsistency between any of the provisions of this Section 6
and any of the other provisions of the Constitution, the provisions of this Section shall 7
prevail. But nothing herein shall in any manner affect the provisions of Section 34 of Article 8
3 of the Constitution or of any laws heretofore or hereafter passed in pursuance thereof, or 9
be construed as preventing the Governor from calling extraordinary sessions of the General 10
Assembly, as provided by Section 16 of Article 2, or as preventing the General Assembly at 11
such extraordinary sessions from considering any emergency appropriation or 12
appropriations. 13

(15) If any item of any appropriation bill passed under the provisions of this 14
Section shall be held invalid upon any ground, such invalidity shall not affect the legality 15
of the bill or of any other item of such bill or bills. 16

SECTION 3. AND BE IT FURTHER ENACTED, That the General Assembly 17
determines that the amendment to the Maryland Constitution proposed by Section 2 of this 18
Act affects multiple jurisdictions and that the provisions of Article XIV, § 1 of the Maryland 19
Constitution concerning local approval of constitutional amendments do not apply. 20

SECTION 4. AND BE IT FURTHER ENACTED, That: 21

(a) The amendment to the Maryland Constitutio n proposed by Section 2 of this 22
Act shall be submitted to the qualified voters of the State at the next general election to be 23
held in November 2026 for adoption or rejection in accordance with Article XIV of the 24
Maryland Constitution. 25

(b) (1) At that ge neral election, the vote on the proposed amendment to the 26
Constitution shall be by ballot, and on each ballot there shall be printed the words “For the 27
Constitutional Amendment” and “Against the Constitutional Amendment”, as now 28
provided by law. 29

(2) At that general election, a question substantially similar to the 30
following shall be submitted to the qualified voters of the State: 31

“Question ___ – Constitutional Amendment 32

Providing that each budget submitted by the Governor shall include expenditures 33
necessary to implement wages, hours, fringe benefits, health benefits, and other terms and 34
conditions of employment for State employees concluded in each memorandum of 35
understanding covering State employees.”. 36

SENATE BILL 28 19

(c) Immediately after the election, all returns shall be made to the Governor of 1
the vote for and against the proposed amendment, as directed by Article XIV of the 2
Maryland Constitution, and further proceedings held in accordance with Article XIV. 3

SECTION 5. AND BE IT FURTHER ENACTED, That Section 1 of this Act is 4
contingent on the passage of Section 2 of this Act, a constitutional amendment, and its 5
ratification by voters of the State. 6

SECTION 6. AND BE IT FURTHER ENACTED, That, subject to Section 5 of this 7
Act, Section 1 of this Act shall take eff ect on the proclamation of the Governor that the 8
constitutional amendment, having received a majority of the votes cast at the general 9
election, has been adopted by the people of Maryland. 10

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.