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

If a contractual position is replaced by a budgeted position, a contractual employee in the contractual position may transfer to the budgeted position, if: 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; there is a continuing need for the function to be performed; the agency can document a competitive hiring process; and the budgeted position replacing the contractual position was not available at the time the contractual employee was hired.

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.

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: steps in the pay grade applicable to the budgeted position; annual leave; and seniority rights. 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.

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.