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WES MOORE, Governor Ch. 155
Chapter 155
(House Bill 604)
AN ACT concerning
Arbitration Reform for State Employees Act of 2026
FOR the purpose of altering the collective bargaining process for certain State employees,
including by requiring the selection of a neutral arbitrator to oversee all certain
aspects of collective bargaining, establishing a process of arbitration in the event of
impasse in negotiations between certain parties, and providing that certain decisions
of a neutral arbitrator are advisory; altering the matters that are required to be
included in collective bargaining; requiring that each budget bill submitted by the
Governor contain the appropriations necessary to implement all terms and
conditions of employment in certain memoranda of understanding for the next
ensuing fiscal year; and generally relating to collective bargaining for State
employees.
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 7–108
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – State Personnel and Pensions
Section 3–103, 3–501, 3–502, and 3–603
Annotated Code of Maryland
(2024 Replacement Volume and 2025 Supplement)
BY adding to
Article – State Personnel and Pensions
Section 3–503
Annotated Code of Maryland
(2024 Replacement Volume and 2025 Supplement)
BY proposing an amendment to the Maryland Constitution
Article III – Legislative Department
Section 52
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – State Finance and Procurement
7–108.
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Ch. 155 2026 LAWS OF MARYLAND
(a) In accordance with the Maryland Constitution and other law, the Governor
shall include in each budget bill:
(1) an appropriation to pay the principal of and interest on the State debt;
(2) without revision, the appropriations requested for public schools, as
certified by the State Superintendent of Schools;
(3) without revision, the appropriations requested for the Legislative
Branch of the State government, as certified by the presiding officers of the General
Assembly;
(4) without revision, the appropriations requested for the Judicial Branch
of the State government, as certified by the Chief Justice of the Supreme Court of Maryland;
(5) the appropriations requested by the Governor for the Executive Branch
of the State government;
(6) the appropriations required by law to be included with the
appropriations for the Executive Branch;
(7) appropriations for the salaries required by law to be paid by the State;
(8) without revision, appropriations for the Accountability and
Implementation Board, as jointly certified by the presiding officers of the General Assembly
and the Governor; and
(9) any other appropriations required by the Maryland Constitution or
other law to be included in the budget bill.
(b) The Governor shall use the current salary plan of the Secretary of Budget and
Management as the basis for the appropriations to pay those salaries to which the plan
applies.
(C) IN ADDITION TO THE APPROPRIATIONS REQUIRED UNDER SUBSECTION
(A) OF THIS SECTION, THE GOVERNOR SHALL INCLUDE IN EACH ANNUAL BUDGET
BILL THE APPROPRIATIONS NECESSARY TO IMPLEMENT AND FUND ALL TERMS
WITHIN EACH MEMORANDUM OF UNDERSTANDING BETWEEN:
(1) THE STATE AND EACH EXCLUSIVE REPRESENTATIVE OF ITS
EMPLOYEES;
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WES MOORE, Governor Ch. 155
(2) STATE INSTITUTIONS OF HIGHER EDUCATION, INCLUDING THE
UNIVERSITY SYSTEM OF MARYLAND, AND EACH EXCLUSIVE REPRESENTATIVE OF
THEIR EMPLOYEES; AND
(3) THE MARYLAND ENVIRONMENTAL SERVICE AND EACH
EXCLUSIVE REPRESENTATIVE OF ITS EMPLOYEES.
Article – State Personnel and Pensions
3–103.
This title and any agreement under this title do not limit or otherwise interfere with
the powers of the Governor or the Maryland General Assembly [under] EXCEPT TO
OPERATE IN ACCORDANCE WITH AND HAVE THE EFFECT REQUIRED BY Article III, §
52 of the Maryland Constitution.
3–501.
(a) (1) The following individuals or entities shall designate one or more
representatives to participate as a party in collective bargaining on behalf of the State or
the following institutions:
(i) on behalf of the State, the Governor;
(ii) on behalf of the Maryland Environmental Service, the Board of
Directors of the Service;
(iii) on behalf of the University System of Maryland, the Chancellor;
and
(iv) on behalf of Morgan State University, St. Mary’s College of
Maryland, or Baltimore City Community College, the governing board of the institution.
(2) The exclusive representative shall designate one or more
representatives to participate as a party in collective bargaining on behalf of the exclusive
representative.
(b) (1) [The] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE
parties shall meet at reasonable times [and] BETWEEN JULY 1 AND SEPTEMBER 30 TO
engage in collective bargaining in good faith[, including facilitating the meaningful use of
a fact finder under subsection (c)(3) of this section,] and to conclude a written memorandum
of understanding or other written understanding as defined under § 3–101(d)(1)(i)2 of this
title.
(2) (I) THIS PARAGRAPH DOES NOT APPLY TO:
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Ch. 155 2026 LAWS OF MARYLAND
1. A BARGAINING UNIT IN A STATE INSTITUTION OF
HIGHER EDUCATION, INCLUDING THE UNIVERSITY SYSTEM OF MARYLAND; OR
2. A BARGAINING UNIT FOR THE UNIFORMED FIRE
EMPLOYEES OF THE BWI AIRPORT FIRE AND RESCUE DEPARTMENT.
(II) 1. FOR EACH BARGAINING UNIT, WHENEVER A
MEMORANDUM OF UNDERSTANDING IS TO BE NEGOTIATED, REOPENED, OR
AMENDED, EITHER PARTY MAY REQUEST A NEUTRAL ARBITRATOR FOR THE
NEGOTIATIONS ON OR AFTER JULY 1.
2. IF NEGOTIATIONS HAVE NOT CONCLUDED BY
SEPTEMBER 1, THE PARTIES SHALL SELECT A NEUTRAL ARBITRATOR ON OR BEFORE
SEPTEMBER 15.
(III) THE ARBITRATOR SHALL BE SELECTED FROM A LIST OF 15
ARBITRATORS PROVIDED BY THE AMERICAN ARBITRATION ASSOCIATION’S LABOR
ARBITRATION PANEL.
(IV) THE LIST SHALL CONSIST OF QUALIFIED, NATIONWIDE
ARBITRATORS WHO ARE MEMBERS OF THE NATIONAL ACADEMY OF ARBITRATION.
(V) THE PARTIES SHALL SELECT THE ARBITRATOR BY
ALTERNATELY STRIKING NAMES FROM THE LIST UNTIL ONE NAME REMAINS.
(VI) THE SELECTED ARBITRATOR MUST BE ABLE AND
AVAILABLE TO PERFORM THE DUTIES AND TO HOLD HEARINGS, BOTH IN PERSON
AND THROUGH REMOTE COMMUNICATION, CONSISTENT WITH THIS TITLE.
(VII) THE ARBITRATOR SHALL HAVE THE POWERS AND
RESPONSIBILITIES UNDER § 3–503 OF THIS SUBTITLE.
(VIII) THE SELECTED ARBITRATOR SHALL ACCEPT THE
APPOINTMENT BY THE EARLIER OF SEPTEMBER 30 OR 15 DAYS AFTER THE DAY A
PARTY REQUESTS AN ARBITRATOR BE SELECTED, OR THE PARTIES MAY AGREE TO
MAKE AN ALTERNATIVE APPOINTMENT FROM:
1. THE LIST ORIGINALLY PROVIDED BY THE AMERICAN
ARBITRATION ASSOCIATION; OR
2. A LIST OF NATIONWIDE ARBITRATORS PROVIDED BY
THE FEDERAL MEDIATION AND CONCILIATION SERVICE.
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WES MOORE, Governor Ch. 155
(3) THE PARTIES SHALL MAKE A REASONABLE EFFORT TO BEGIN
NEGOTIATIONS ON OR NEAR JULY 1, INCLUDING THE EXCHANGE OF INFORMATION
NECESSARY TO RESPONSIBLY CONDUCT AND CONCLUDE NEGOTIATIONS BY
SEPTEMBER 30.
(c) [(1) THIS SUBSECTION APPLIES ONLY WITH RESPECT TO A STATE
INSTITUTION OF HIGHER EDUCATION, INCLUDING THE UNIVERSITY SYSTEM OF
MARYLAND.
(2) The parties shall make every reasonable effort to conclude negotiations
in a timely manner for inclusion by the principal unit in its budget request to the Governor.
(2) (3) (i) The parties shall conclude negotiations before January 1
for any item requiring an appropriation of funds for the fiscal year that begins on the
following July 1.
(ii) In the budget bill submitted to the General Assembly, the
Governor shall include any amounts in the budgets of the principal units required to
accommodate any additional cost resulting from the negotiations, including the actuarial
impact of any legislative changes to any of the State pension or retirement systems that
are required, as a result of the negotiations, for the fiscal year beginning the following July
1 if the legislative changes have been negotiated to become effective in that fiscal year.
(3) (i) This paragraph does not apply to negotiations between the State
and the exclusive representative of the uniformed fire employees of the BWI Airport Fire
and Rescue Department.
(ii) (4) If the parties do not conclude negotiations for the next
fiscal year before October 25, either party may request that a fact finder be employed to
resolve the issues.
(iii) (5) The fact finder shall be employed no later than November
1.
(iv) (6) A fact finder shall be a neutral party appointed by
alternate striking from a list by the parties provided:
1. (I) by the Federal Mediation and Conciliation Service; or
2. (II) under the Labor Arbitration Rules of the American
Arbitration Association.
(v) (7)The fact finder:
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Ch. 155 2026 LAWS OF MARYLAND
1. (I) may give notice and hold hearings in accordance with the
Administrative Procedure Act;
2. (II) may administer oaths and take testimony and other
evidence;
3. (III) may issue subpoenas; and
4. (IV) before November 20, shall make written
recommendations regarding wages, hours, and working conditions, and any other terms or
conditions of employment that may be in dispute.
(vi) (8) The written recommendations of the fact finder shall be
delivered to the Governor, the exclusive representative, the President of the Senate, and
the Speaker of the House of Delegates by the Secretary on or before December 1.]
[(4) (i)](D) (1) This [paragraph] SUBSECTION applies only to
negotiations between the State and the exclusive representative of the uniformed fire
employees of the BWI Airport Fire and Rescue Department.
[(ii)] (2) The parties shall reach an agreement by September 30 of
the year in which a collective bargaining agreement will expire.
[(iii)] (3) An impasse is reached during the negotiations if the
parties do not reach an agreement:
[1.] (I) by stating that they mutually agree they are at an
impasse; or
[2.] (II) on or before October 1 of the year in which a
collective bargaining agreement will expire.
[(iv)] (4) If an impasse is reached under [subparagraph (iii) of this
paragraph] PARAGRAPH (3) OF THIS SUBSECTION, each party shall submit its last, best,
and final offer to the other party within 48 hours after the impasse is reached.
[(v) 1.] (5) (I) Unless the impasse has been resolved, the
parties shall meet within 5 business days after the impasse is reached under
[subparagraph (iii) of this paragraph] PARAGRAPH (3) OF THIS SUBSECTION to select an
arbitrator from a list of 15 arbitrators provided by the American Arbitration Association’s
labor arbitration panel.
[2.] (II) The parties shall select the arbitrator by alternately
striking a name from the list until one name remains.
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WES MOORE, Governor Ch. 155
[3.] (III) If the selected arbitrator is unable to fulfill the
responsibilities of the arbitration, the selection process shall be repeated using a new list
of arbitrators until an arbitrator is selected.
[4.] (IV) The parties shall submit the dispute and the last,
best, and final offers to the arbitrator within 5 business days after the arbitrator is selected.
[(vi) 1.] (6) (I) The arbitrator shall hold formal hearings as
necessary in order to resolve the impasse.
[2.] (II) During the first 21 days immediately following the
appointment of the arbitrator and before holding any formal hearings, the arbitrator may,
if determined appropriate by the arbitrator, attempt to resolve the impasse by acting as a
neutral mediator between the parties.
[(vii)] (7) The arbitrator shall select one party’s last, best, and final
offer on or before December 15.
[(viii) 1.] (8) (I) Subject to [subsubparagraph 2 of this
subparagraph] SUBPARAGRAPH (II) OF THIS PARAGRAPH, the decision of the arbitrator
is binding on the parties.
[2.] (II) A decision of an arbitrator under this paragraph
related to wages is subject to the limitations of the State budget.
[(ix)] (9) The parties shall equally share the costs of the services of
the arbitrator.
(d) (E) (1) A memorandum of understanding [that incorporates all matters
of agreement reached by the parties] REACHED BY MUTUAL AGREEMENT shall be
executed by the exclusive representative and:
(i) for a memorandum of understanding relating to the State, the
Governor or the Governor’s designee;
(ii) for a memorandum of understanding relating to the Maryland
Environmental Service, the Board of Directors of the Service;
(iii) for a memorandum of understanding relating to a system
institution, the Chancellor or the Chancellor’s designee; and
(iv) for a memorandum of understanding relating to Morgan State
University, St. Mary’s College of Maryland, or Baltimore City Community College, the
governing board of the institution or the governing board’s designee.
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Ch. 155 2026 LAWS OF MARYLAND
(2) (I) THIS PARAGRAPH DOES NOT APPLY TO MATTERS
INVOLVING A STATE INSTITUTION OF HIGHER EDUCATION, INCLUDING THE
UNIVERSITY SYSTEM OF MARYLAND.
(II) To the extent [these] matters INCORPORATED IN A
MEMORANDUM OF UNDERSTANDING require legislative approval or the appropriation of
funds, the matters shall be [recommended] REFERRED to the General Assembly for
LEGISLATIVE approval or for the appropriation of funds AS REQUIRED UNDER ARTICLE
III, § 52 OF THE MARYLAND CONSTITUTION.
(3) To the extent matters involving a State institution of higher education
require legislative approval OR THE APPROPRIATION OF FUNDS, the legislation
MATTERS shall be [recommended] REFERRED to the Governor [for submission to] AND
the General Assembly FOR LEGISLATIVE APPROVAL OR THE APPROPRIATION OF
FUNDS.
(e) (F) (1) Except as provided in paragraph (2) of this subsection,
negotiations for a memorandum of understanding shall be considered closed sessions under
§ 3–305 of the General Provisions Article.
(2) An exclusive representative may not be considered a public body under
§ 3–101 of the General Provisions Article.
(f) (G) (1) The terms of a memorandum of understanding executed by the
Governor or the Governor’s designee and an exclusive representative of a bargaining unit
for skilled service or professional service employees in the State Personnel Management
System are not applicable to employees of a State institution of higher education.
(2) The terms of a memorandum of understanding executed by the
Chancellor or the governing board of Morgan State University, St. Mary’s College of
Maryland, or Baltimore City Community College, or their respective designees, and the
exclusive representative of a bargaining unit for employees of a State institution of higher
education are not applicable to skilled service or professional service employees in the State
Personnel Management System.
3–502.
(a) Collective bargaining shall include all matters relating to:
(1) wages, hours, FRINGE BENEFITS OTHER THAN PENSION BENEFITS,
HEALTH BENEFITS, and other terms and conditions of employment; and
(2) the time and manner of access to a new employee program in
accordance with § 22–207 of the State Government Article.
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WES MOORE, Governor Ch. 155
(b) Notwithstanding subsection (a) of this section, the representatives of the
State, the Maryland Environmental Service, a system institution, Morgan State
University, St. Mary’s College of Maryland, and Baltimore City Community College:
(1) may not be required to negotiate over any matter that is inconsistent
with applicable law; and
(2) may negotiate and reach agreement with regard to any such matter
THAT IS INCONSISTENT WITH APPLICABLE LAW only if it is understood that, WITH
RESPECT TO THE MATTER, the agreement [with respect to such matter] OR
MEMORANDUM OF UNDERSTANDING cannot become effective unless the applicable law
is amended by the General Assembly.
3–503.
(A) THIS SECTION DOES NOT APPLY WITH RESPECT TO A STATE
INSTITUTION OF HIGHER EDUCATION, INCLUDING THE UNIVERSITY SYSTEM OF
MARYLAND.
(A) (B) (1) A NEUTRAL ARBITRATOR SELECTED UNDER § 3–501(B) OF
THIS SUBTITLE:
(I) MAY MEDIATE OR AID IN THE RESOLUTION OF ANY DISPUTE
BETWEEN THE PARTIES REGARDING THE CONDUCT OF NEGOTIATIONS;
(II) MAY RECEIVE FROM THE PARTIES COPIES OF INFORMATION
REQUESTS PRESENTED AND RESPONSES RECEIVED TO MEDIATE OR AID IN THE
RESOLUTION OF DISPUTES THAT ARISE BETWEEN THE PARTIES CONSISTENT WITH
THIS TITLE; AND
(III) MAY DIRECT PRODUCTION OF ESTIMATES OF REVENUES
AND EXPENDITURES COMPILED BY THE STATE BOARD OF REVENUE ESTIMATES,
THE BUREAU OF REVENUE ESTIMATES, OR THE CONSENSUS REVENUE
MONITORING AND FORECASTING GROUP.
(2) (I) THE OPINIONS AND GUIDANCE ISSUED BY THE NEUTRAL
ARBITRATOR UNDER THIS SUBSECTION SHALL BE ADVISORY ON THE PARTIES AND
THE GOVERNOR.
(II) THE USE OF A NEUTRAL ARBITRATOR DOES NOT DIMINISH
OR LIMIT THE RIGHTS OF ANY PARTY TO FILE AND PURSUE A COMPLAINT OF UNFAIR
LABOR PRACTICES BEFORE THE BOARD.
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Ch. 155 2026 LAWS OF MARYLAND
(B) (C) (1) IF EITHER PARTY DECLARES AN IMPASSE ON OR AFTER
OCTOBER 1, ARBITRATION SHALL PROCEED AS DESCRIBED IN THIS SUBSECTION.
(2) (I) ON THE FIFTH BUSINESS DAY AFTER THE IMPASSE IS
DECLARED, EACH PARTY SHALL SUBMIT TO THE NEUTRAL ARBITRATOR, IN WRITING
AND WITH A COPY TO THE OTHER PARTY, A LAST, BEST, AND FINAL OFFER,
INCLUDING:
1. ALL PROVISIONS IN THE EXISTING MEMORANDUM OF
UNDERSTANDING NOT TO BE MODIFIED;
2. ALL NEW, AMENDED, OR MODIFIED MEMORANDUM OF
UNDERSTANDING PROVISIONS AGREED TO BY THE PARTIES BEFORE THE IMPASSE
WAS DECLARED THAT ARE TO BE INCLUDED THROUGH WRITTEN MUTUAL
AGREEMENT; AND
3. SUBJECT TO SUBPARAGRAPH (II) OF THIS
PARAGRAPH, DETAILED FURTHER PROVISIONS THAT A PARTY IS PROPOSING FOR
INCLUSION IN A MEMORANDUM OF UNDERSTANDING.
(II) FURTHER PROVISIONS ARE LIMITED TO SPECIFIC
PROPOSALS THAT WERE SUBMITTED IN WRITING TO THE OTHER PARTY AND WERE
THE SUBJECT OF COLLECTIVE BARGAINING BETWEEN THE PARTIES UP TO THE TIME
OF IMPASSE, INCLUDING PROPOSALS THAT THE PARTIES HAVE DECIDED TO
INCLUDE IN THE MEMORANDUM OF UNDERSTANDING THROUGH WRITTEN MUTUAL
AGREEMENT.
(3) THE NEUTRAL ARBITRATOR ACTING AS A MEDIATOR SHALL
ATTEMPT TO RESOLVE THE IMPASSE BEFORE A FORMAL HEARING ON THE IMPASSE.
(4) (I) WITHIN 30 CALENDAR DAYS AFTER A DECLARED IMPASSE,
THE NEUTRAL ARBITRATOR SHALL HOLD A FORMAL HEARING AT WHICH THE
PARTIES MAY SUBMIT, IN WRITING OR ORAL TESTIMONY, ALL INFORMATION OR
DATA SUPPORTING THE FINAL POSITIONS.
(II) ABSENT MUTUAL AGREEMENT BETWEEN THE PARTIES, OR
AS OTHERWISE ORDERED BY THE NEUTRAL ARBITRATOR, THE FORMAL HEARING
SHALL CONCLUDE WITHIN 45 CALENDAR DAYS AFTER THE IMPASSE DATE.
(5) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH, THE ARBITRATION SHALL CONCLUDE WITH A WRITTEN AWARD THAT
SUSTAINS IN ITS ENTIRETY THE LAST, BEST, AND FINAL OFFER OF ONE OF THE
PARTIES.
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WES MOORE, Governor Ch. 155
(II) BEFORE A WRITTEN AWARD IS ISSUED, BY WRITTEN
AGREEMENT SIGNED BY THE REPRESENTATIVES OF THE PARTIES PARTICIPATING IN
THE ARBITRATION, THE PARTIES MAY DIRECT THE NEUTRAL ARBITRATOR TO RULE
ON SPECIFICALLY IDENTIFIED TOPICS OF BARGAINING.
(6) (I) THE NEUTRAL ARBITRATOR SHALL ISSUE A PRELIMINARY
WRITTEN AWARD ON OR BEFORE DECEMBER 5.
(II) THE PRELIMINARY WRITTEN AWARD SHALL ADDRESS ALL
PROVISIONS THAT EACH PARTY PROPOSED IN ITS RESPECTIVE FINAL POSITION FOR
INCLUSION IN A MEMORANDUM OF UNDERSTANDING.
(III) WITHIN 5 BUSINESS DAYS AFTER RECEIPT OF THE
PRELIMINARY WRITTEN AWARD, THE PARTIES SHALL REVIEW THE AWARD AND MAY
SEVERALLY OR MUTUALLY REQUEST CHANGES OR ADJUSTMENTS IN THE AWARD.
(IV) ON OR BEFORE DECEMBER 15, THE NEUTRAL ARBITRATOR
SHALL ISSUE A FINAL WRITTEN AWARD IN WHICH THE ARBITRATOR:
1. SHALL ORDER IMPLEMENTATION OF THE LAST, BEST,
AND FINAL OFFER OF EITHER PARTY IN ITS ENTIRETY, INCORPORATING ANY
VOLUNTARILY AGREED–TO TERMS BETWEEN THE PARTIES; AND
2. SHALL INCLUDE:
A. ANY VOLUNTARILY AGREED–TO TERMS BETWEEN THE
PARTIES; AND
B. ANY PRIOR TERM THAT BY AGREEMENT IS NOT TO BE
CHANGED FOR THE NEXT FISCAL YEAR.
(V) AFTER DECEMBER 15, IF REQUESTED BY EITHER PARTY,
THE NEUTRAL ARBITRATOR SHALL ISSUE BY JANUARY 20 OF THE IMMEDIATELY
FOLLOWING YEAR A STATEMENT OF REASONS FOR THE FINAL WRITTEN AWARD.
(7) THE NEUTRAL ARBITRATOR SHALL CONSIDER THE FOLLOWING
WHEN DEVELOPING A WRITTEN AWARD:
(I) THE LAWFUL AUTHORITY OF THE EMPLOYER, INCLUDING
THE OBLIGATION OF THE EMPLOYER TO USE SPECIAL FUNDS ONLY FOR
AUTHORIZED PURPOSES UNDER LIMITATIONS IMPOSED BY FEDERAL OR STATE LAW;
(II) STIPULATIONS OF THE PARTIES;
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Ch. 155 2026 LAWS OF MARYLAND
(III) THE INTERESTS AND WELFARE OF THE PUBLIC;
(IV) THE FINANCIAL ABILITY OF THE EMPLOYER TO MEET
COSTS, WITHOUT THE PREMISE THAT THE EMPLOYER MAY NEED TO INCREASE OR
IMPOSE NEW TAXES, FEES, OR CHARGES, OR DEVELOP OTHER SOURCES OF REVENUE
OR TRANSFER FUNDS FROM THE REVENUE STABILIZATION ACCOUNT ESTABLISHED
UNDER § 7–311 OF THE STATE FINANCE AND PROCUREMENT ARTICLE;
(V) THE PRESENT AND FUTURE GENERAL ECONOMIC
CONDITION OF THE STATE OR STATE INSTITUTIONS OF HIGHER EDUCATION;
(VI) COMPARISONS OF WAGES, HOURS, AND CONDITIONS OF
EMPLOYMENT OF THE EMPLOYEES INVOLVED WITH ARBITRATION WITH THE WAGES,
HOURS, AND CONDITIONS OF EMPLOYMENT OF OTHER EMPLOYEES PERFORMING
SIMILAR SERVICES IN PUBLIC EMPLOYMENT IN ADJACENT STATES;
(VII) COMPARISONS OF COLLECTIVE BARGAINING PATTERNS IN
OTHER STATES AND AMONG COUNTY EMPLOYEES IN THE STATE;
(VIII) CONSUMER PRICES FOR GOODS AND SERVICES AS DEFINED
BY PUBLIC AND PRIVATE SOURCES;
(IX) THE OVERALL COMPENSATION PRESENTLY RECEIVED BY
THE EMPLOYEES, INCLUDING DIRECT WAGE COMPENSATION, VACATION, HOLIDAYS,
EXCUSED TIME OFF, INSURANCE AND PENSIONS COSTS, MEDICAL AND
HOSPITALIZATION BENEFITS, THE CONTINUITY AND STABILITY OF EMPLOYMENT,
AND ALL OTHER RECEIVED BENEFITS;
(X) CHANGES IN ANY OF THE FOREGOING CIRCUMSTANCES
DURING THE PENDENCY OF THE ARBITRATION; AND
(XI) OTHER FACTORS THAT ARE NORMALLY OR TRADITIONALLY
TAKEN INTO CONSIDERATION IN THE DETERMINATION OF WAGES, HOURS, AND
CONDITIONS OF EMPLOYMENT THROUGH VOLUNTARY COLLECTIVE BARGAINING,
MEDIATION, ARBITRATION, OR OTHERWISE BETWEEN THE PARTIES IN PUBLIC
SERVICE OR PRIVATE EMPLOYMENT.
(8) A WRITTEN AWARD REQUIRED UNDER THIS SUBSECTION SHALL
INCLUDE A STATEMENT, PREPARED IN CONSULTATION WITH BOTH PARTIES,
DETAILING THE MULTIYEAR FISCAL IMPACT TO THE GENERAL FUND OF THE STATE
FROM PARAGRAPH (7)(IV) AND (V) OF THIS SUBSECTION.
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WES MOORE, Governor Ch. 155
(C) (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE
DECISION OF THE NEUTRAL ARBITRATOR SHALL BE FINAL AND BINDING ON THE
PARTIES.
(2) A DECISION AS TO A MATTER REQUIRING A CHANGE IN LAW OR AN
APPROPRIATION OF FUNDS IS CONTINGENT ON THE ENACTMENT OF LEGISLATION
MAKING THE CHANGE IN LAW OR APPROVAL OF THE APPROPRIATION BY THE
GENERAL ASSEMBLY IN ACCORDANCE WITH ARTICLE III, § 52 OF THE MARYLAND
CONSTITUTION.
(3) A DECISION OF AN ARBITRATOR UNDER THIS SUBSECTION
RELATED TO WAGES IS SUBJECT TO THE LIMITATIONS OF THE STATE BUDGET.
(D) (E) THE STATE, A STATE INSTITUTION OF HIGHER EDUCATION, AND
THE MARYLAND ENVIRONMENTAL SERVICE AND THE GOVERNOR SHALL TAKE ALL
ACTIONS NECESSARY TO CARRY OUT AND EFFECTUATE THE FINAL WRITTEN AWARD
AND PLACE INTO EFFECT THE MEMORANDUM OF UNDERSTANDING.
(E) (F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE
PARTIES AT ANY TIME MAY AMEND OR MODIFY THE FINAL WRITTEN AWARD AND, BY
CONSENT, THE AMENDMENTS OR MODIFICATIONS SHALL BE APPROVED BY THE
PARTIES AND PLACED IN A SUPPLEMENTAL WRITTEN AWARD BY THE NEUTRAL
ARBITRATOR THAT SHALL BE FINAL AND BINDING.
(2) A SUPPLEMENTAL WRITTEN AWARD UNDER PARAGRAPH (1) OF
THIS SUBSECTION SHALL TAKE EFFECT ON THE DATE OF THE ORDER OF THE
NEUTRAL ARBITRATOR AND MAY NOT REQUIRE RATIFICATION UNDER § 3–601 OF
THIS TITLE.
(F) (G) A DEADLINE IN THIS SECTION MAY BE MODIFIED, BASED ON GOOD
CAUSE, BY MUTUAL AGREEMENT OF THE PARTIES OR BY ORDER OF THE NEUTRAL
ARBITRATOR.
(G) (H) (1) THE COSTS OF THE SERVICES OF THE NEUTRAL
ARBITRATOR SHALL BE SHARED EQUALLY BY THE PARTIES.
(2) ALL OTHER COSTS INCURRED BY EITHER PARTY TO COMPLY WITH
THIS SECTION SHALL BE THE RESPONSIBILITY OF THE PARTY INCURRING THE
COSTS.
3–603.
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Ch. 155 2026 LAWS OF MARYLAND
(a) A memorandum of understanding [agreed to and ratified under § 3–601 of this
subtitle] may not expire until it is succeeded by a memorandum of understanding that is
agreed to and ratified or adopted by arbitration under this title.
(b) Notwithstanding § 3–601(b) of this subtitle, all terms of a memorandum of
understanding shall continue in force and effect without change until a successor
memorandum of understanding is agreed to and ratified.
(c) (1) Based on a verified complaint by an exclusive representative, the
exclusive representative may file an action in a circuit court against the State, the
Maryland Environmental Service, a system institution, Morgan State University, St.
Mary’s College of Maryland, or Baltimore City Community College to enforce the terms of
this section.
(2) On receipt of an action submitted by the exclusive representative, the
court shall issue a status quo order without a finding of irreparable harm to maintain a
memorandum of understanding and the terms in effect pending a final order in the action.
SECTION 2. AND BE IT FURTHER ENACTED, (Three–fifths of all the members
elected to each of the two Houses concurring), That it be proposed that the Maryland
Constitution read as follows:
Article III – Legislative Department
52.
(1) The General Assembly shall not appropriate any money out of the Treasury
except in accordance with the provisions of this section.
(2) Every appropriation bill shall be either a Budget Bill, or a Supplementary
Appropriation Bill, as hereinafter provided.
(3) On the third Wednesday in January in each year, (except in the case of a newly
elected Governor, and then not later than ten days after the convening of the General
Assembly), unless such time shall be extended by the General Assembly, the Governor shall
submit to the General Assembly a Budget for the next ensuing fiscal year. Each Budget
shall contain a complete plan of proposed expenditures and estimated revenues for said
fiscal year and shall show the estimated surplus or deficit of revenues at the end of the
preceding fiscal year. EACH BUDGET SUBMITTED BY THE GOVERNOR SHALL ALSO
CONTAIN THE PROPOSED APPROPRIATIONS NECESSARY TO IMPLEMENT ALL TERMS
AND CONDITIONS OF EMPLOYMENT IN EACH MEMORANDUM OF UNDERSTANDING
CONCLUDED WITH THE STATE AND ANY INSTITUTION OF HIGHER EDUCATION
INCLUDING THE UNIVERSITY SYSTEM OF MARYLAND, WHETHER REACHED
THROUGH MUTUAL AGREEMENT OR ARBITRATION THAT IS BINDING ON THE
PARTIES, THE GOVERNOR, STATE INSTITUTIONS OF HIGHER EDUCATION, AND THE
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WES MOORE, Governor Ch. 155
MARYLAND ENVIRONMENTAL SERVICE, FOR THE NEXT ENSUING FISCAL YEAR FOR
STATE EMPLOYEES IN THE VARIOUS BRANCHES AND DEPARTMENTS OF STATE
GOVERNMENT, INCLUDING HIGHER EDUCATION. Accompanying each Budget shall be a
statement showing: (a) the revenues and expenditures for the preceding fiscal year; (b) the
current assets, liabilities, reserves and surplus or deficit of the State; (c) the debts and
funds of the State; (d) an estimate of the State’s financial condition as of the beginning and
end of the preceding fiscal year; (e) CHANGES IN WAGES, HOURS, FRINGE BENEFITS,
HEALTH BENEFITS, AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT FOR
STATE EMPLOYEES INCLUDED IN EACH MEMORANDUM OF UNDERSTANDING
COVERING STATE EMPLOYEES FOR THE NEXT ENSUING FISCAL YEAR; AND (F) any
explanation the Governor may desire to make as to the important features of the Budget
and any suggestions as to methods for reduction or increase of the State’s revenue.
(4) Each Budget shall embrace an estimate of all appropriations in such form and
detail as the Governor shall determine or as may be prescribed by law, as follows: (a) for
the General Assembly as certified to the Governor in the manner hereinafter provided; (b)
for the Executive Department; (c) for the Judiciary Department, as provided by law, as
certified to the Governor; (d) to pay and discharge the principal and interest of the debt of
the State in conformity with Section 34 of Article III of the Constitution, and all laws
enacted in pursuance thereof; (e) for the salaries AND FRINGE BENEFITS payable by the
State and under the Constitution and laws of the State, INCLUDING THOSE SALARIES
AND BENEFITS COMMITTED UNDER EACH MEMORANDUM OF UNDERSTANDING
COVERING STATE EMPLOYEES; (f) for the establishment and maintenance throughout
the State of a thorough and efficient system of public schools in conformity with Article 8
of the Constitution and with the laws of the State; and (g) for such other purposes as are
set forth in the Constitution or laws of the State.
(5) The Governor shall deliver to the presiding officer of each House the Budget
and a bill for all the proposed appropriations of the Budget classified and in such form and
detail as the Governor shall determine or as may be prescribed by law; and the presiding
officer of each House shall promptly cause said bill to be introduced therein, and such bill
shall be known as the “Budget Bill.” The Governor may, with the consent of the General
Assembly, before final action thereon by the General Assembly, amend or supplement said
Budget to correct an oversight, provide funds contingent on passage of pending legislation
or, in case of an emergency, by delivering such an amendment or supplement to the
presiding officers of both Houses; and such amendment or supplement shall thereby become
a part of said Budget Bill as an addition to the items of said bill or as a modification of or a
substitute for any item of said bill such amendment or supplement may affect.
(5a) The Budget and the Budget Bill as submitted by the Governor to the General
Assembly shall have a figure for the total of all proposed appropriations and a figure for
the total of all estimated revenues available to pay the appropriations, and the figure for
total proposed appropriations shall not exceed the figure for total estimated revenues.
Neither the Governor in submitting an amendment or supplement to the Budget Bill nor
the General Assembly in amending the Budget Bill shall thereby cause the figure for total
proposed appropriations to exceed the figure for total estimated revenues, including any
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Ch. 155 2026 LAWS OF MARYLAND
revisions, and in the Budget Bill as enacted the figure for total estimated revenues always
shall be equal to or exceed the figure for total appropriations.
(6) The General Assembly shall not amend the Budget Bill so as to affect either
the obligations of the State under Section 34 of Article III of the Constitution, or the
provisions made by the laws of the State for the establishment and maintenance of a system
of public schools or the payment of any salaries required to be paid by the State of Maryland
by the Constitution.
(6a) In enacting a balanced Budget Bill each fiscal year as required under this
Section, the General Assembly may amend the bill by increasing or diminishing the items
therein relating to the General Assembly, and by increasing or diminishing the items
therein relating to the judiciary, but except as hereinbefore specified, may not alter the bill
except to strike out or reduce items therein, provided, however, that the salary or
compensation of any public officer may not be decreased during the public officer’s term of
office. When passed by both Houses, the Budget Bill shall be presented to the Governor for
approval or disapproval according to Section 17 of Article II of this Constitution.
(6b) In enacting a balanced Budget Bill as required under this Section for fiscal
year 2024 and each fiscal year thereafter, the General Assembly may amend the bill by
increasing, diminishing, or adding items therein relating to the General Assembly, by
increasing, diminishing, or adding items therein relating to the judiciary, and by
increasing, diminishing, or adding items therein relating to the Executive Department,
provided that the total of the appropriation for the Executive Department approved by the
General Assembly does not exceed the total proposed appropriation for the Executive
Department submitted by the Governor. The salary or compensation of any public officer
may not be decreased during the public officer’s term of office. When passed by both Houses,
the Budget Bill shall be a law immediately without further action by the Governor.
(7) The Governor and such representatives of the executive departments, boards,
officers and commissions of the State expending or applying for State’s moneys, as have
been designated by the Governor for this purpose, shall have the right, and when requested
by either House of the General Assembly, it shall be their duty to appear and be heard with
respect to any Budget Bill during the consideration thereof, and to answer inquiries relative
thereto.
(8) Supplementary Appropriation Bill. Either House may consider other
appropriations but both Houses shall not finally act upon such appropriations until after
the Budget Bill has been finally acted upon by both Houses, and no such other
appropriation shall be valid except in accordance with the provisions following: (a) Every
such appropriation shall be embodied in a separate bill limited to some single work, object
or purpose therein stated and called herein a Supplementary Appropriation Bill; (b) Each
Supplementary Appropriation Bill shall provide the revenue necessary to pay the
appropriation thereby made by a tax, direct or indirect, to be levied and collected as shall
be directed in said bill; (c) No Supplementary Appropriation Bill shall become a law unless
it be passed in each House by a vote of a majority of the whole number of the members
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WES MOORE, Governor Ch. 155
elected, and the yeas and nays recorded on its final passage; (d) Each Supplementary
Appropriation Bill shall be presented to the Governor of the State as provided in Section
17 of Article 2 of the Constitution and thereafter all the provisions of said section shall
apply.
(9) Nothing in this section shall be construed as preventing the General Assembly
from passing at any time, in accordance with the provisions of Section 28 of Article 3 of the
Constitution and subject to the Governor’s power of approval as provided in Section 17 of
Article 2 of the Constitution, an appropriation bill to provide for the payment of any
obligation of the State within the protection of Section 10 of Article 1 of the Constitution of
the United States.
(10) If the Budget Bill shall not have been finally acted upon by the Legislature
seven days before the expiration of the regular session, the Governor shall issue a
proclamation extending the session for some further period as may, in the Governor’s
judgment, be necessary for the passage of such bill; but no matter other than such bill shall
be considered during such extended session except a provision for the cost thereof.
(11) For the purpose of making up the Budget, the Governor shall require from the
proper State officials (including all executive departments, all executive and administrative
offices, bureaus, boards, commissions and agencies that expend or supervise the
expenditure of, and all institutions applying, for State moneys and appropriations) such
itemized estimates and other information, in such form and at such times as directed by
the Governor. An estimate for a program required to be funded by a law which will be in
effect during the fiscal year covered by the Budget and which was enacted before July 1 of
the fiscal year prior to that date shall provide a level of funding not less than that prescribed
in the law. The estimates for the Legislative Department, certified by the presiding officer
of each House, of the Judiciary, as provided by law, certified by the Chief Justice of the
Supreme Court of Maryland, and for the public schools, as provided by law, shall be
transmitted to the Governor, in such form and at such times as directed by the Governor,
and shall be included in the Budget without revision.
(12) The Governor may provide for public hearings on all estimates and may
require the attendance at such hearings of representatives of all agencies, and for all
institutions applying for State moneys. After such public hearings the Governor may, in
the Governor’s discretion, revise all estimates except those for the legislative and judiciary
departments, and for the public schools, as provided by law, and except that the Governor
may not reduce an estimate for a program below a level of funding prescribed by a law
which will be in effect during the fiscal year covered by the Budget, and which was enacted
before July 1 of the fiscal year prior thereto.
(13) The General Assembly may, from time to time, enact such laws not
inconsistent with this section, as may be necessary and proper to carry out its provisions.
(14) In the event of any inconsistency between any of the provisions of this Section
and any of the other provisions of the Constitution, the provisions of this Section shall
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Ch. 155 2026 LAWS OF MARYLAND
prevail. But nothing herein shall in any manner affect the provisions of Section 34 of Article
3 of the Constitution or of any laws heretofore or hereafter passed in pursuance thereof, or
be construed as preventing the Governor from calling extraordinary sessions of the General
Assembly, as provided by Section 16 of Article 2, or as preventing the General Assembly at
such extraordinary sessions from considering any emergency appropriation or
appropriations.
(15) If any item of any appropriation bill passed under the provisions of this
Section shall be held invalid upon any ground, such invalidity shall not affect the legality
of the bill or of any other item of such bill or bills.
SECTION 3. AND BE IT FURTHER ENACTED, That the General Assembly
determines that the amendment to the Maryland Constitution proposed by Section 2 of this
Act affects multiple jurisdictions and that the provisions of Article XIV, § 1 of the Maryland
Constitution concerning local approval of constitutional amendments do not apply.
SECTION 4. AND BE IT FURTHER ENACTED, That:
(a) The amendment to the Maryland Constitution proposed by Section 2 of this
Act shall be submitted to the qualified voters of the State at the next general election to be
held in November 2026 for adoption or rejection in accordance with Article XIV of the
Maryland Constitution.
(b) (1) At that general election, the vote on the proposed amendment to the
Constitution shall be by ballot, and on each ballot there shall be printed the words “For the
Constitutional Amendment” and “Against the Constitutional Amendment”, as now
provided by law.
(2) At that general election, a question substantially similar to the
following shall be submitted to the qualified voters of the State:
“Question ___ – Constitutional Amendment
Providing that each budget submitted by the Governor shall include expenditures
necessary to implement wages, hours, fringe benefits, health benefits, and other terms and
conditions of employment for State employees concluded in each memorandum of
understanding covering State employees.”.
(c) Immediately after the election, all returns shall be made to the Governor of
the vote for and against the proposed amendment, as directed by Article XIV of the
Maryland Constitution, and further proceedings held in accordance with Article XIV.
SECTION 5. AND BE IT FURTHER ENACTED, That Section 1 of this Act is
contingent on the passage of Section 2 of this Act, a constitutional amendment, and its
ratification by voters of the State.
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WES MOORE, Governor Ch. 155
SECTION 6. AND BE IT FURTHER ENACTED, That, subject to Section 5 of this
Act, Section 1 of this Act shall take effect on the proclamation of the Governor that the
constitutional amendment, having received a majority of the votes cast at the general
election, has been adopted by the people of Maryland.
Approved by the Governor, assigned a chapter number, enactment subject to
constitutional referendum, April 28, 2026.
– 19 –Every fact on this page links to its source, starting with the official bill record.