SB 746
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 746 (Senator Guzzone, et al.)
Finance Appropriations
Education - Community Colleges - Collective Bargaining
This bill establishes a collective bargaining process for local community college employees
including full-time faculty, part-time faculty, and specified staff but excluding officers,
supervisory or confidential employees, and student assistants. Implementation is delayed,
as specified, until September 1, 2022 or 2023, with bargaining over wages delayed until
July 1, 2023 or 2024. Full-time and part-time faculty at Baltimore City Community
College (BCCC) may also collectively bargain under this process with implementation
delayed until October 1, 2024. Beginning in fiscal 2026, the Governor must include
funding to accommodate costs for BCCC in the annual budget bill as specified. Except as
specified, the bill does not apply to collective bargaining units, contracts, or agreements in
existence prior to September 1, 2022. The bill takes effect September 1, 2022.
Fiscal Summary
State Effect: Reimbursable revenues and expenditures increase by an estimated total of
$37,500 for each new collective bargaining unit to have one election beginning as early as
FY 2023. BCCC expenditures increase by an estimated $3 per eligible employee
($900 total estimate) to reimburse State Higher Education Labor Relations Board
(SHELRB) for collective bargaining expenses, as early as FY 2025. Beginning in FY 2026,
as explained below, general fund expenditures increase to the extent BCCC negotiations
result in additional costs; under one set of assumptions, general fund expenditures increase
for this purpose by an estimated $121,000 in FY 2026 and beyond. Although the bill may
affect State expenditures for retirement beginning in FY 2027, any impact is not material.
This bill establishes a mandated appropriation beginning as early as FY 2026.
Local Effect: Local community college expenditures increase by an estimated
$3 per eligible employee to reimburse SHELRB for collective bargaining expenditures for
an estimated total of $36,600 (with the first elections as early as FY 2023). Local
community college administrative and personnel expenditures, including retirement, may
increase. Revenues are not affected. This bill may impose a mandate on a unit of local
government.
Small Business Effect: None.
Analysis
Bill Summary: Specified employees may bargain collectively over wages, hours, other
terms and conditions of employment, and the procedures for dues to be charged by the
exclusive representative. Aspects of access to new employees are also subject to
negotiation. Disputes on these issues may be settled through mediation and fact finding
and, if necessary, are subject to a final and binding decision by SHELRB.
Beginning on September 1, 2022, the employees at the following eight large community
colleges may collectively bargain under the process established by the bill: Anne Arundel
Community College; Community College of Baltimore County; Frederick Community
College; Harford Community College; Howard Community College; Montgomery
College; Prince George’s Community College; and College of Southern Maryland.
Negotiations on wages are delayed until July 1, 2023 (fiscal 2024).
Beginning on September 1, 2023, the employees at the following seven small community
colleges may collectively bargain under the process established by the bill: Allegany
College of Maryland; Carroll Community College; Cecil College; Chesapeake College;
Garrett College; Hagerstown Community College; and Wor-Wic Community College.
Negotiations on wages are delayed until July 1, 2024 (fiscal 2025).
Beginning on October 1, 2024, the full-time and part-time faculty at BCCC may
collectively bargain under the process established by the bill. The Governor must include
general funds to cover these costs in the annual State budget; thus, general fund
expenditures for BCCC increase as early as fiscal 2026.
Bargaining Units
Up to four bargaining units at each community college may be established: (1) one for
full-time faculty; (2) one for part-time faculty; and (3) two for eligible nonexempt
employees.
“Faculty” are employees whose assignments involve academic responsibilities, including
teachers and department heads.
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“Part-time faculty” are employees whose assignments involve academic responsibilities,
including teachers, counselors, and department heads, who are designated with part-time
faculty status by the president of the community college.
“Public employees” for whom collective bargaining is authorized do not include officers,
supervisory or confidential employees, or student assistants at any college. At BCCC, the
term only includes faculty; under current law, specified nonfaculty employees of BCCC
have collective bargaining rights.
The bill repeals the current authorization for collective bargaining rights for the
Community College of Baltimore County, Montgomery College, and Prince George’s
Community College and encompasses these institutions within the new authorization.
Intent of the General Assembly
It is the intent of the General Assembly that the State promote harmonious and cooperative
relationships with the public employees of the community college system by encouraging
collective bargaining practices, protecting the rights of public employees to associate,
organize, and vote for their own exclusive representatives, and recognizing the dignity of
labor for all employees of the community college system.
A delay in implementation of this bill is to ensure that community colleges are granted
sufficient time to plan for potential negotiations and may not be used to plan for, or engage
in, activities that would discourage or otherwise coerce employees seeking to hold an
election.
Rights and Responsibilities
The bill establishes rights and responsibilities for specified community college employees,
community colleges, and SHELRB with regards to collective bargaining.
Terms of an Agreement
Exclusive employee representatives must represent fairly and without discrimination all
employees in a bargaining unit, whether or not they are members of the organization. They
may negotiate all matters related to wages, hours, and other terms and conditions of
employment except as specified in the bill (discussed below).
A collective bargaining agreement must include a provision for the deduction (from the
paycheck of each community college employee in a bargaining unit) of any union dues
authorized and owed by the employee. A collective bargaining agreement may include a
provision for the arbitration of grievances arising under an agreement, but it may not
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include matters relating to the employees’ or teachers’ retirement or pension systems
otherwise covered by statute. However, this does not prohibit a discussion of the terms of
the retirement or pension systems in the course of collectively bargaining. The terms of a
collective bargaining agreement supersede any conflicting regulations or administrative
policies of the public employer.
A request for funds necessary to implement a collective bargaining agreement must be
submitted by the public employer in a timely fashion for consideration in the budget
process of the county. Within 20 days after final budget action by the governing body of a
county, if a request for funds necessary to implement a collective bargaining agreement is
reduced, modified, or rejected by the governing body, either party to the agreement may
reopen the agreement.
Baltimore City Community College
For BCCC, in the annual budget bill submitted to the General Assembly, the Governor
must include any amounts in the budget of BCCC 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 immediately following July 1 if the
legislative changes have been negotiated to become effective in that fiscal year.
Certification of an Employee Organization
In order to be certified, an employee organization must submit a petition showing that at
least 30% of the eligible employees in a bargaining unit wish to be represented by the
petitioning organization. Other employee organizations may participate in the election if
they prove that 10% of the eligible employees in the bargaining unit wish to be represented
by them. There must also be a provision for “no representation” on the ballot. SHELRB
must conduct the election by secret ballot, which may be in person, by mail, or electronic.
Interest in union representation can be shown by a union authorization card or a union
membership card as specified.
An employee organization may request a preferred method of voting; if there is a dispute
between two or more employee organizations, SHELRB may designate the method of
voting. SHELRB must assist an eligible employee in using an alternative method of vote
casting if the employee notifies SHELRB of the inability to cast a ballot using the
designated method.
SHELRB must designate an employee organization as the exclusive representative only if
(1) one employee organization seeks certification as the exclusive representative; (2) there
is no incumbent exclusive representative; (3) the employee organization has not requested
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an election; and (4) SHELRB determines that more than 50% of the employees support the
employee organization as specified.
The election of an exclusive representative may not be conducted in any bargaining unit in
which (1) an exclusive representative has been certified within the immediately preceding
24 months or (2) a valid election has been held within the preceding 12 months in which
an exclusive representative was certified.
Except as specified below, the exclusive representative of a bargaining unit that operated
under a collective bargaining agreement or contract before October 1, 2021, maintains
certification after the agreement or contract expires. If a collective bargaining agreement
or contract is in effect, a valid petition for an election may be submitted only if the petition
is submitted at least 90 days, but not more than 120 days, before the expiration of the
collective bargaining agreement or contract.
Mediation and Fact Finding
If, in the course of collectively bargaining, an impasse is reached, a party may request the
services of SHELRB in mediation or engage another mutually agreeable mediator. If there
is not mutual agreement, either party may petition SHELRB to find that an impasse exists
and initiate fact finding. The parties must bear equally the costs of fact finding.
New Employee Processing
Within 10 days after a new employee’s date of hire, the community college must provide
the exclusive representative with specified contact information in a searchable and
analyzable electronic format as specified. An employee may opt out of further
communication from the exclusive representative as specified. An exclusive representative
must be provided access to new employee processing. The structure, time, and manner of
the access is subject to negotiation. Either party may request that SHELRB declare an
impasse. The mediator or SHELRB must consider specified factors. Disputes on these
issues may be settled through mediation and fact finding and, if necessary, are subject to a
final and binding decision by SHELRB.
A request to negotiate made between September 1, 2022, and the expiration date of an
existing collective bargaining agreement must only be reopened to negotiate access of the
public employer’s new employee processing. Either party may elect to negotiate a separate
agreement in lieu of reopening the existing agreement.
Further, on written request of an exclusive representative, and within 30 days of a new
employee’s date of hire, a community college must provide the exclusive representative
with similar specified contact information.
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State Higher Education Labor Relations Board
SHELRB may adopt regulations to implement the bill and delegate and assign its
responsibilities and obligations to the Executive Director of SHELRB. SHELRB may not
adopt any rule that (1) unnecessarily delays the resolution of disputes over elections, unfair
labor practices, or any other matter in the bill or (2) restricts or weakens the protection
provided to public employees and employee organizations under the bill or existing
regulations.
SHELRB must adopt regulations in accordance with Title 3, Subtitle 6 of the State
Personnel and Pensions Article that address ratification, duration, and enforcement of an
agreement under the bill.
Current Agreements
These provisions do not apply to BCCC.
SHELRB may not require the bargaining units at a community college to conform to the
requirements of the bill if the bargaining units were in existence before September 1, 2022.
On or after September 1, 2022, an election or a recognition of an exclusive representative
must be conducted by SHELRB for each bargaining unit after the requirements specified
in the bill have been met.
The bill further specifies that, if a community college entered into any agreements or
contracts with employees of the community college through exclusive representation in the
course of collectively bargaining before September 1, 2022, the community college must
continue to operate under the agreements and contracts, until the agreements and contracts
expire. If a bargaining unit in existence before September 1, 2022, dissolves, the
community college must follow the rules and regulations of collective bargaining
established by the bill. However, if a party to an agreement or contract in effect before
September 1, 2022, determines that an impasse exists, the parties must follow the bill’s
impasse procedures.
A large community college may not be required to bargain with the exclusive
representative over wages until July 1, 2023; however, this does not apply to an exclusive
bargaining unit established before September 1, 2022. A small community college may not
be required to bargain with the exclusive representative over wages of employees in a
bargaining unit until July 1, 2024.
Current Law: In Maryland, there are 15 local community colleges and BCCC. Local
community college boards of trustees oversee policy and operations with funding provided
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by State and local governments and generated through student tuition and fees. BCCC is
operated by the State.
Chapter 341 of 2001 extended collective bargaining rights to many categories of higher
education personnel at public four-year institutions of higher education and BCCC but
excluded all faculty and students from the benefit. The law also established SHELRB to
oversee collective bargaining between institutions and the higher education bargaining
units and to hear disputes between them. As of March 2015, approximately
7,200 employees at public institutions of higher education were eligible to collectively
bargain. In 2016, 12 new public-sector collective bargaining units were added.
Most local community college employees do not have collective bargaining rights.
However, some employees who work for BCCC, the Community College of Baltimore
County, Montgomery College, and Prince George’s Community College have collective
bargaining rights. At BCCC, specified nonfaculty employees, including nonexempt,
exempt, and sworn police officers, have collective bargaining rights. At the
Community College of Baltimore County, classified (nonfaculty) employees have
collective bargaining rights. At Montgomery College, all employees (including faculty)
except supervisory, confidential employees, and student assistants have collective
bargaining rights. At Prince George’s Community College, all eligible classified
(nonfaculty) employees of the college, including all skilled professional service and skilled
and nonskilled service employees, have collective bargaining rights.
SHELRB is responsible for enforcing collective bargaining laws with respect to employees
of the University System of Maryland, Morgan State University, St. Mary’s College of
Maryland, and BCCC.
SHELRB may investigate and take appropriate action in response to complaints of unfair
labor practices and lockouts. Among the nine unfair labor practices included in statute is
refusing to bargain in good faith. The State and its officers, employees, agents, or
representatives are prohibited from engaging in unfair labor practices.
For Prince George’s Community College employees, the Maryland Department of Labor
is required to define the bargaining units, conduct elections, serve as the mediator, if
necessary, and perform other functions.
State Fiscal Effect:
Baltimore City Community College – Required Funding Due to Negotiations
General fund expenditures for BCCC increase due to the bill’s requirement that the
Governor include certain funding in the annual budget bill. Specifically, the Governor must
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include any amounts in the budget of BCCC 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 negotiations.
The funding must be provided for the fiscal year beginning the immediately following
July 1, if the legislative changes have been negotiated to become effective in that
fiscal year.
As the bill allows BCCC to negotiate with full-time and part-time faculty beginning
October 1, 2024, general fund expenditures may increase as early as July 1, 2025 (which
is fiscal 2026), to accommodate these costs. Such costs cannot be reliably estimated and
likely depend on job classification and the collective bargaining unit. Nevertheless,
increases of 1% to 3% are probable. Under one set of assumptions, general fund
expenditures increase by an estimated