Bill > HB604

This bill, the Arbitration Reform for State Employees Act of 2026, aims to alter the collective bargaining process for certain state employees by requiring the use of a neutral arbitrator for all aspects of negotiations, establishing a formal arbitration process when an agreement cannot be reached (an impasse), and making some arbitrator decisions advisory. A key provision mandates that all budget bills must include the necessary funding to implement all agreed-upon terms and conditions of employment from any Memoranda of Understanding (MOUs), which are formal agreements between the state and employee representatives. This bill also proposes a constitutional amendment to ensure that the state budget explicitly includes appropriations for all terms and conditions of employment outlined in MOUs, whether reached through agreement or arbitration, for state employees, including those in higher education and the Maryland Environmental Service. The constitutional amendment will be put to a vote in the November 2026 general election, and if ratified, the provisions of this bill will take effect.

Government Affairs

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0604?ys=2026RS