# State Personnel and Pensions (GSP)

## Title 13. Contractual Employment and Service Contracts in Executive Branch

### Subtitle 3. Transfers of Contractual Employees to Budgeted Positions

#### Section 13-301

This subtitle applies to all units in the Executive Branch of State government, except a unit with an independent personnel system.

#### Section 13-302

If a contractual position is replaced by a budgeted position, a contractual employee in the contractual position may transfer to the budgeted position, if:

(1) the employee meets the minimum qualifications for the budgeted position and has at least 6 continuous months of satisfactory service as of the date on which the replacement occurs;

(2) there is a continuing need for the function to be performed;

(3) the agency can document a competitive hiring process; and

(4) the budgeted position replacing the contractual position was not available at the time the contractual employee was hired.

#### Section 13-303

To enable a contractual employee to participate in any required examination for a budgeted position under this subtitle, the Secretary may certify the continuation of the employee's contract for a maximum period of 1 year after the date on which the budgeted position is created.

#### Section 13-304

(a) A contractual employee who transfers to a budgeted position under this subtitle or who is selected to fill a budgeted position in the State Personnel Management System, without a break in service, in the same principal unit that employs the contractual employee, shall be given credit for service in the contractual position for the purpose of establishing:

  (1) steps in the pay grade applicable to the budgeted position;

  (2) annual leave; and

  (3) seniority rights.

(b) A contractual employee who transfers to a budgeted position under this subtitle or who is selected to fill a budgeted position shall become a member of the Employees' Pension System of the State of Maryland.

#### Section 13-305

This subtitle does not preclude the General Assembly from prohibiting the creation of a budgeted position or the replacement of a contractual position with a budgeted position in the State budget.

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Md. Code Ann., State Pers. & Pens. (as displayed at mgaleg.maryland.gov, October 16, 2026)