Bill Summary – FastDemocracy

SB 9
                       Department of Legislative Services
                              Maryland General Assembly
                                    2021 Session
                            FISCAL AND POLICY NOTE
                                 Enrolled - Revised
Senate Bill 9                    (Senator Kramer)
Finance                                                                      Appropriations
    State Employees - Collective Bargaining - Applicability, Bargaining Processes,
                       and Memorandums of Understanding
This bill requires the Chancellor of the University System of Maryland (USM) to act on
behalf of USM and its constituent institutions, rather than the institutions’ presidents under
current law, for the purposes of collective bargaining. An exclusive representative that
represents more than one bargaining unit of USM employees may request to bargain a
consolidated memorandum of understanding (MOU), as specified. However, specified
matters must be negotiated at an institutional level by the president or their designee. For
a matter that is not specified and is particular to an institution, the matter also must be
negotiated by the president or their designee. If the parties cannot agree, the matter must
be negotiated as part of the consolidated MOU. Finally, the bill changes the collective
bargaining process for State employees and employees of public four-year institutions and
Baltimore City Community College (BCCC) by specifying that good faith requirements
include facilitating the meaningful use of a fact finder. The bill takes effect June 1, 2021.
                                     Fiscal Summary
State Effect: The bill does not materially affect overall State finances but does affect
operations, as explained below.
Local Effect: None.
Small Business Effect: None.
                                          Analysis
Bill Summary:
University System of Maryland – Collective Bargaining
As under current law, each USM institution must continue to have its own bargaining units.
However, the bill repeals current law allowing constituent institution presidents to agree to
enter into and terminate cooperation agreements for the purpose of collective bargaining.
If an exclusive representative represents more than one bargaining unit of USM employees
and requests to bargain a consolidated MOU, the Chancellor and the exclusive
representative must negotiate the terms of one consolidated MOU to apply to all bargaining
units for employees of all USM institutions represented by that exclusive representative
that includes terms related to specified topics, including wages and salaries. Different
specified topics, including hours of work, must be negotiated between a USM president (or
their designee) and the exclusive representative in separate agreements. The consolidated
MOU may not include terms relating to the maters that must be included in the separate
agreements. For a matter particular to a USM institution that is not otherwise specified, the
matter must be negotiated, on mutual agreement and in writing, by the exclusive
representative and the president of that institution or the president’s designee. If the parties
cannot mutually agree, the matter must be negotiated as part of the consolidated MOU. On
conclusion of negotiations, all matters of agreement must be included in the consolidated
MOU.
Subject to the requirements of current law, the effective date of a consolidated MOU must
be July 1 to align with the fiscal year of USM and must continue in effect until a subsequent
June 30. Specifically under current law, the MOU may not expire until it is succeeded by
an MOU that is agreed to and ratified.
Further, the bill establishes that all terms of a presently existing MOU, as specified, may
not be impaired in any way by the bill and must remain in full force and effect until a
successor MOU is agreed to and ratified.
Current Law: The Board of Regents of USM must appoint a Chancellor of USM. The
Chancellor is the Chief Executive Officer of USM and the Chief of Staff for the Board of
Regents of USM. The Chancellor must (1) advise the Board of Regents of USM;
(2) conduct systemwide planning; (3) coordinate and arbitrate among the institutions and
centers of USM; (4) assist the institutions in achieving performance goals in accordance
with their adopted performance accountability plan; (5) provide technical assistance to
institutions and centers such as legal and financial services; (6) perform the duties the board
assigns; and (7) see that the policies of the board are carried out. The Chancellor serves at
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the pleasure of the board. The Chancellor is entitled to the compensation established by the
board. However, until June 30, 2021, the board must notify the Governor, the President of
the Senate, and the Speaker of the House at least 30 days before a contractual salary
increase, negotiated severance package, or any other financial bonus for the Chancellor
goes into effect.
The president of a USM institution must act on behalf of the institution for the purposes of
collective bargaining. Likewise, the presidents of the following centers or institutes bargain
on behalf of their center or institute:
      University of Maryland Center for Environmental Science;
      Cooperative Extension Service and the Agricultural Experiment Station;
      Statewide Medical Education and Training System;
      Maryland Fire and Rescue Institute;
      Center for Maryland Advanced Ventures;
      University of Maryland Center for Economic and Entrepreneurship Development;
       and
      any other center, component, or institute established and operated by USM in
       accordance with its mission.
The exclusive representative must designate one or more representatives to participate as
a party in collective bargaining on behalf of the exclusive representative.
An MOU that incorporates all matters of agreement reached by the parties must be executed
by the exclusive representative and the president of the USM institution or the president’s
designee. To the extent these matters require legislative approval or the appropriation of
funds, the matters must be recommended to the General Assembly for approval or for the
appropriation of funds. To the extent matters involving a State institution of higher
education require legislative approval, the legislation must be recommended to the
Governor for submission to the General Assembly. For skilled service or professional
service employees who are employees of an institution, the terms of an MOU executed by
the president and the exclusive representative apply.
An MOU must contain all matters of agreement reached in the collective bargaining
process. The MOU must be in writing and signed by the exclusive representative involved
in the collective bargaining negotiations and the president of the system institution or the
president’s designee.
No MOU is valid if it extends for less than one year or for more than three years. In the
case of a State institution of higher education, an MOU is not effective until it is ratified
by the institution’s governing board and a majority of the votes cast by the employees in
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the bargaining unit. All terms of an MOU must continue in force and effect without change
until a successor MOU is agreed to and ratified.
The presidents of USM institutions may agree to cooperate for the purpose of collective
bargaining. A president may elect to terminate a cooperation agreement with another
USM institution.
Appropriate bargaining units must consist of (1) all eligible nonexempt employees, as
described in the federal Fair Labor Standards Act, except eligible sworn police officers;
(2) all eligible exempt employees, as described in the federal Fair Labor Standards Act;
and (3) all eligible sworn police officers.
State and Higher Education – Collective Bargaining
The Sectary of Budget and Management defines, through regulations, which State and
higher education employees are eligible for collective bargaining. In regards to collective
bargaining for specified State or higher education employees, the parties must meet at
reasonable times and engage in collective bargaining in good faith to conclude a written
MOU or other written understanding.
State Fiscal Effect: The bill does not materially affect total State expenditures, but it does
affect operations and potentially finances at the constituent institutions. As the bill
consolidates most collective bargaining duties from the USM constituent institution
presidents with the Chancellor, it increases the time spent on collective bargaining by the
Chancellor and the USM Office while likely decreasing the time spent on collective
bargaining by the constituent institutions, although specified matters including hours of
work must continue to be negotiated at the institutional level. In addition, USM institutions
report various operational and potential fiscal impacts of coalition bargaining (which must
be undertaken under specified circumstances), including issues specific to a particular
institution. Overall, however, to the extent collective bargaining agreements negotiated
under the bill are similar to those negotiated under current law, there is no material effect
on total expenditures for USM.
                                Additional Information
Prior Introductions: HB 641 of 2020, a similar bill, received a hearing in the House
Appropriations Committee, but no further action was taken. Its cross file, SB 660, received
a hearing in the Senate Finance Committee, but no further action was taken.
Designated Cross File: HB 486 (Delegate Solomon) - Appropriations.
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Information Source(s): State Labor Relations Board; State Higher Education Labor
Relations Board; University System of Maryland; Department of Legislative Services
Fiscal Note History:   First Reader - February 2, 2021
rh/rhh                 Third Reader - March 19, 2021
                       Enrolled - May 11, 2021
                              Revised - Amendment(s) - May 11, 2021
Analysis by: Caroline L. Boice                   Direct Inquiries to:
                                                 (410) 946-5510
                                                 (301) 970-5510
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Statutes affected: 
Text - First - State Employees - Collective Bargaining - Applicability, Bargaining Processes, and Memorandums of Understanding: 3-101 State Personnel and Pensions, 12-101 State Personnel and Pensions, 3-102 State Personnel and Pensions, 3-306 State Personnel and Pensions, 3-403 State Personnel and Pensions, 3-406 State Personnel and Pensions, 3-501 State Personnel and Pensions, 3-101 State Personnel and Pensions, 3-601 State Personnel and Pensions, 3-602 State Personnel and Pensions, 12-110 State Personnel and Pensions
Text - Third - State Employees - Collective Bargaining - Applicability, Bargaining Processes, and Memorandums of Understanding: 3-101 State Personnel and Pensions, 12-101 State Personnel and Pensions, 3-102 State Personnel and Pensions, 3-306 State Personnel and Pensions, 3-403 State Personnel and Pensions, 3-406 State Personnel and Pensions, 3-501 State Personnel and Pensions, 3-101 State Personnel and Pensions, 3-601 State Personnel and Pensions, 3-602 State Personnel and Pensions, 12-110 State Personnel and Pensions
Text - Enrolled - State Employees - Collective Bargaining - Applicability, Bargaining Processes, and Memorandums of Understanding: 3-101 State Personnel and Pensions, 12-101 State Personnel and Pensions, 3-102 State Personnel and Pensions, 3-306 State Personnel and Pensions, 3-403 State Personnel and Pensions, 3-406 State Personnel and Pensions, 3-501 State Personnel and Pensions, 3-101 State Personnel and Pensions, 3-601 State Personnel and Pensions, 3-602 State Personnel and Pensions, 12-110 Education