EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb1432* HOUSE BILL 1432 P4 2lr3223 By: Delegate Kittleman Introduced and read first time: February 22, 2022 Assigned to: Rules and Executive Nominations A BILL ENTITLED AN ACT concerning 1 Public–Sector Collective Bargaining – Service, Representation, and 2 Maintenance Fees – Repeal 3 FOR the purpose of repealing provisions of law authorizing or requiring the charging of 4 service, representation, or maintenance fees by public–sector exclusive 5 representatives to nonmembers; and generally relating to the public–sector collective 6 bargaining. 7 BY repealing and reenacting, without amendments, 8 Article – Courts and Judicial Proceedings 9 Section 2–322(a) and (e)(1) and (2) 10 Annotated Code of Maryland 11 (2020 Replacement Volume and 2021 Supplement) 12 BY repealing and reenacting, with amendments, 13 Article – Courts and Judicial Proceedings 14 Section 2–322(e)(3)(v) 15 Annotated Code of Maryland 16 (2020 Replacement Volume and 2021 Supplement) 17 BY repealing and reenacting, with amendments, 18 Article – Education 19 Section 6–407, 6–504, 9.5–704, and 16–414.1(e)(3) and (f) 20 Annotated Code of Maryland 21 (2018 Replacement Volume and 2021 Supplement) 22 BY repealing and reenacting, with amendments, 23 Article – Health – General 24 Section 15–904(e) 25 Annotated Code of Maryland 26 (2019 Replacement Volume and 2021 Supplement) 27 2 HOUSE BILL 1432 BY repealing and reenacting, with amendments, 1 Article – Land Use 2 Section 16–309 3 Annotated Code of Maryland 4 (2012 Volume and 2021 Supplement) 5 BY repealing 6 Article – Land Use 7 Section 16–316 8 Annotated Code of Maryland 9 (2012 Volume and 2021 Supplement) 10 BY repealing and reenacting, with amendments, 11 Article – State Personnel and Pensions 12 Section 3–502 13 Annotated Code of Maryland 14 (2015 Replacement Volume and 2021 Supplement) 15 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16 That the Laws of Maryland read as follows: 17 Article – Courts and Judicial Proceedings 18 2–322. 19 (a) This section applies only in Charles County. 20 (e) (1) This subsection applies to all full–time, merit system sworn law 21 enforcement officers and correctional officers in the Sheriff’s Office at a rank of sergeant or 22 below. 23 (2) This subsection does not apply to the following employees in the 24 Sheriff’s Office: 25 (i) Sworn law enforcement officers or correctional officers in the 26 Sheriff’s Office at a rank of lieutenant or above; 27 (ii) Employees in appointed positions; 28 (iii) Civilian merit system employees; 29 (iv) Full–time reduced hours employees; 30 (v) Part–time employees; 31 (vi) Contractual employees; 32 HOUSE BILL 1432 3 (vii) Temporary employees; 1 (viii) Emergency employees; or 2 (ix) Employees whose employment is administered under the county 3 policies and procedures manual. 4 (3) (v) [1. A sworn law enforcement officer or correctional officer who 5 is not a member of a bargaining unit with an exclusive representative may be required to 6 pay a proportional service fee for costs associated with the administration and enforcement 7 of any agreement that benefits the affected employees. 8 2.] An exclusive representative shall be selected in 9 accordance with the procedures set forth in paragraph (5) of this subsection. 10 Article – Education 11 6–407. 12 (a) An employee organization designated as an exclusive representative shall be 13 the negotiating agent of all public school employees in the unit in the county. 14 (b) (1) An employee organization designated as an exclusive representative 15 shall represent all employees in the unit fairly and without discrimination, whether or not 16 the employees are members of the employee organization. 17 (2) In addition, in Montgomery County the exclusive representative shall 18 represent fairly and without discrimination all persons actually employed as substitute 19 teachers without regard to whether they are included in § 6–401(e) of this subtitle as public 20 school employees. 21 [(c) (1) Subject to subsection (d) of this section, the public school employer shall 22 negotiate with the employee organization designated as the exclusive representative for 23 the public school employees in a unit, a requirement of a reasonable service or 24 representation fee, to be charged nonmembers for representing them in negotiations, 25 contract administration, including grievances, and other activities as are required under 26 subsection (b) of this section. 27 (2) The service or representation fee may not exceed the annual dues of the 28 members of the organization. 29 (3) An employee who is a substitute teacher and who works on a 30 short–term day–to–day basis is not required to pay a service or representation fee. 31 (4) An employee whose religious beliefs are opposed to joining or financially 32 supporting any collective bargaining organization is: 33 4 HOUSE BILL 1432 (i) Not required to pay a service or representation fee; and 1 (ii) Required to pay an amount of money as determined in paragraph 2 (2) of this subsection to a nonreligious, nonunion charity or to such other charitable 3 organization as may be mutually agreed upon by the employee and the exclusive 4 representative, and who furnishes to the public school employer and the exclusive 5 representative written proof of such payment. 6 (5) The exclusive representative shall establish and maintain a procedure 7 that provides nonmembers with: 8 (i) An adequate explanation of the basis for the service or 9 representation fee; and 10 (ii) An opportunity to challenge the amount of the fee. 11 (6) An employee who is a home or hospital teacher and who works on a 12 short–term day–to–day basis is not required to pay a service or representation fee. 13 (7) The public school employer shall: 14 (i) Deduct the service or representation fee from the earnings of the 15 nonmember employees in accordance with a schedule provided by the exclusive 16 representative; and 17 (ii) Promptly transmit the amount deducted to the exclusive 18 representative. 19 (d) When negotiating the implementation of a service or representation fee under 20 this section, the public school employer and the exclusive bargaining representative shall 21 negotiate whether the fee is applicable to current employees. 22 (e) (1) This subsection applies to a county in which a service or representation 23 fee was not negotiated before July 1, 2013. 24 (2) The following employees in a unit are eligible to vote on ratification of 25 the implementing agreement that provides for a service or representation fee: 26 (i) Members of the employee organization; and 27 (ii) Nonmembers affected by the service or representation fee. 28 (3) The implementing agreement that provides for a service or 29 representation fee shall be ratified by a majority of votes cast by the employees eligible to 30 vote under paragraph (2) of this subsection. 31 HOUSE BILL 1432 5 (f) In a county in which a service or representation fee has been negotiated before 1 July 1, 2013, the fee shall be implemented under the provisions of the agreement negotiated 2 before July 1, 2013, and consistent with the requirements of this section without the need 3 for further negotiations.] 4 6–504. 5 [(a)] A public school employee may refuse to join or participate in the activities of 6 employee organizations. 7 [(b) (1) Subject to subsection (e) of this section, the public school employer, with 8 respect to noncertificated employees, shall negotiate a structure of required reasonable 9 service or representation fees to be charged nonmembers for representation in negotiations 10 and grievance matters by employee organizations. 11 (2) An employee whose religious beliefs are opposed to joining or financially 12 supporting any collective bargaining organization is: 13 (i) Not required to pay a service or representation fee; and 14 (ii) Required to pay an amount of money that is equal to the service 15 or representation fee to a nonreligious, nonunion charity or to such other charitable 16 organization as may be mutually agreed upon by the employe e and the employee 17 organization, and who furnishes to the public school employer and the employee 18 organization written proof of the payment. 19 (c) The employee organization shall establish and maintain a procedure that 20 provides nonmembers with: 21 (1) An adequate explanation of the basis for the service or representation 22 fee; and 23 (2) An opportunity to challenge the amount of the fee. 24 (d) The public school employer shall: 25 (1) Deduct the service or representation fee from the earnings of the 26 nonmember employees in accordance with a schedule provided by the employee 27 organization; and 28 (2) Promptly transmit the amount deducted to the employee organization. 29 (e) When negotiating the implementation of a service or representation fee under 30 this section, the public school employer and the exclusive bargaining representative shall 31 first negotiate whether the fee is applicable to current employees. 32 (f) (1) This subsection applies to a county in which a service or representation 33 6 HOUSE BILL 1432 fee was not negotiated before July 1, 2013. 1 (2) The following employees in a unit are eligible to vote on ratification of 2 the implementing agreement that provides for a service or representation fee: 3 (i) Members of the employee organization; and 4 (ii) Nonmembers affected by the service or representation fee. 5 (3) The implementing agreement that provides for a service or 6 representation fee shall be ratified by a majority of votes cast by the employees eligible to 7 vote under paragraph (2) of this subsection. 8 (g) In a county in which a service or representation fee has been negotiated before 9 July 1, 2013, the fee shall be implemented under the provisions of the agreement negotiated 10 before July 1, 2013, and consistent with the requirements of this section without the need 11 for further negotiations.] 12 9.5–704. 13 (a) The Department shall designate appropriate representatives to participate in 14 collective bargaining with the provider organization certified as the exclusive 15 representative of family child care providers. 16 (b) Except as otherwise provided in this subtitle, the parties shall adhere to the 17 bargaining process set forth in § 3–501 of the State Personnel and Pensions Article. 18 (c) The Department shall negotiate in consultation with the Department of 19 Budget and Management regarding all matters that require appropriation of State funds. 20 (d) Collective bargaining shall include all matters related to the terms and 21 conditions of participation by family child care providers in the Maryland Child Care 22 Subsidy Program, including: 23 (1) Reimbursement rates; 24 (2) Benefits; 25 (3) Payment procedures; 26 (4) Contract grievance procedures; 27 (5) Training; 28 (6) Member dues deductions; and 29 (7) Other terms and conditions of participation by family child care 30 HOUSE BILL 1432 7 providers in the Maryland Child Care Subsidy Program. 1 [(e) (1) (i) Subject to subparagraph (ii) of this paragraph, collective 2 bargaining may include negotiations relating to the right of a provider organization that is 3 the exclusive representative to receive service fees from nonmembers. 4 (ii) The representatives of the State may not reach an agreement 5 containing a service fee provision unless the representatives of the State conclude that the 6 agreement as a whole will not adversely impact nonmember providers. 7 (2) A family child care provider whose religious beliefs are opposed to 8 joining or financially supporting any collective bargaining organization is: 9 (i) Not required to pay a service fee; and 10 (ii) Required to pay an amount of money as determined in collective 11 bargaining negotiations, not to exceed any service fee negotiated under paragraph (1) of 12 this subsection, to any charitable organization exempt from taxation under § 501(c)(3) of 13 the Internal Revenue Code and to furnish to the Department and the exc lusive 14 representative written proof of the payment.] 15 [(f)] (E) (1) Collective bargaining shall include negotiations that result in the 16 establishment of a fund for the purpose of protecting family child care providers against 17 extreme hardship or loss of livelihood resulting from late State payments. 18 (2) The exclusive representative shall pay for a portion of the fund. 19 (3) The fund: 20 (i) May not be a State fund; but 21 (ii) Shall be established and administered in consultation with the 22 State. 23 (4) All revenues, money, and assets of the fund belong solely to the fund 24 and are held by the fund in trust for family child care providers. 25 (5) The State may not borrow, appropriate, or direct payments from the 26 revenues, money, or assets of the fund for any purpose. 27 (6) The fund shall include funds sufficient to meet the reasonably 28 foreseeable needs of the family child care providers. 29 [(g)] (F) Notwithstanding subsection (d) of this section, the representatives of 30 the State: 31 (1) May not be required to negotiate any matter that is inconsistent with 32 8 HOUSE BILL 1432 applicable law; and 1 (2) May negotiate and reach agreement with regard to any such matter 2 only if it is understood that the agreement with respect to such matter cannot become 3 effective unless the applicable law is amended by the General Assembly. 4 [(h)] (G) The parties shall reduce their agreement to a Memorandum of 5 Understanding that complies with the provisions of § 3–601 of the State Personnel and 6 Pensions Article. 7 16–414.1. 8 (e) (3) On behalf of the exclusive representative for payment to the exclusive 9 representative, the public employer shall automatically deduct from the paycheck of each 10 public employee in a bargaining unit represented by an employee organization certified as 11 an exclusive representative for that bargaining unit[: 12 (i) Any] ANY union dues authorized and owed by the employee to 13 the organization[; and 14 (ii) Any service fees authorized and owed by the employee to the 15 organization]. 16 (f) Collective bargaining shall include all matters relating to: 17 (1) Wages, hours, and other terms and conditions of employment; and 18 (2) The procedures for the employee organization to receive membership 19 dues [and service fees] through payroll deduction. 20 Article – Health – General 21 15–904. 22 (e) [(1) (i) Subject to subparagraphs (ii) and (iii) of this paragraph, 23 collective] COLLECTIVE bargaining may NOT include negotiations relating to the right of 24 a provider organization that is the exclusive representative to receive service fees from 25 nonmembers. 26 [(ii) The representatives of the State may not reach an agreement 27 containing a service fee provision unless the representatives of the State conclude that the 28 agreement as a whole will not adversely impact nonmember providers. 29 (iii) The representatives of the State may only agree to a service fee 30 provision if the service fee provision would require nonmembers to pay service fees on a 31 sliding scale in approximate proportion to the amount each nonmember receives in 32 HOUSE BILL 1432 9 reimbursement through: 1 1. The Medicaid Waiver for Older Adults that is jointly 2 administered by the Department and the Department of Aging as established under § 3 15–132 of this title, or any successor program; 4 2. The Medicaid Personal Care Program under the State 5 Medical Assistance Program, or any successor program; and 6 3. The In–Home Aide Service Program administered by the 7 Department of Human Services, or any successor program. 8 (2) An independent home care provider whose religious beliefs are opposed 9 to joining or financially supporting any collective bargaining organization: 10 (i) Is not required to pay a service fee; but 11 (ii) Shall pay an amount of money as determined in collective 12 bargaining negotiations, not to exceed any service fee negotiated under paragraph (1) of 13 this subsection, to any charitable organization exempt from taxation under § 501(c)(3) of 14 the Internal Revenue Code and to furnish to the State agencies engaged in collective 15 bargaining under this subtitle and the exclusive representative written proof of the 16 payment. 17 (3) (i) An independent home care provider who provides home care 18 services only to an immediate family member is not required to pay a service fee. 19 (ii) An independent home care provider who provides services to an 20 immediate family member and any other individual who is not an immediate family 21 member may be required to pay a service fee that is proportionate to the amount the 22 provider receives in reimbursement for the provider’s services to any individual who is not 23 an immediate family member. 24 (iii) An independent home care provider may be required to provide 25 written documentation of the provision of home care services to an immediate family 26 member.] 27 Article – Land Use 28 16–309. 29 (a) The Commission and the exclusive representative shall execute a collective 30 bargaining agreement incorporating all matters agreed. 31 (b) A collective bargaining agreement may include a provision for: 32 (1) dues [and maintenance or service fees] paid by payroll deduction; and 33 10 HOUSE BILL 1432 (2) the arbitration of grievances arising under the collective bargaining 1 agreement. 2 (c) The collective bargaining agreement supersedes any conflicting rule, 3 regulation, or administrative policy of the Commission. 4 [16–316. 5 (a) This subtitle does not preclude the Commission from entering into a collective 6 bargaining agreement with an exclusive representative that requires an employee, as a 7 condition of employment, to pay a maintenance or service fee as a contribution towards the 8 cost of the negotiation and administration of the collective bargaining agreement. 9 (b) A maintenance or service fee under subsection (a) of this section may not 10 exceed the annual dues paid to the exclusive representative. 11 (c) Before the Commission discharges an employee who fails to pa y a 12 maintenance or service fee, it shall give the employee: 13 (1) written notice of the delinquent payment; and 14 (2) adequate time to correct the delinquency. 15 (d) If the Commission and an employee are unable to resolve any issue relating 16 to the payment of a maintenance or service fee, the issue shall be submitted to an umpire 17 in accordance with § 16–317 of this subtitle.] 18 Article – State Personnel and Pensions 19 3–502. 20 (a) Collective bargaining shall include all matters relating to: 21 (1) wages, hours, and other terms and conditions of employment; and 22 (2) the time and manner of access to a new employee program as required 23 under § 3–307 of this title. 24 (b) [(1)] Collective bargaining may NOT include negotiations relating to the 25 right of an employee organization to receive service fees from nonmembers. 26 [(2) An employee whose religious beliefs are opposed to joining or financially 27 supporting any collective bargaining organization is: 28 (i) not required to pay a service fee; and 29 HOUSE BILL 1432 11 (ii) required to pay an amount of money as determined in collective 1 bargaining negotiations, not to exceed any service fee negotiated under paragraph (1) of 2 this subsection, to any charitable organization exempt from taxation under § 501(c)(3) of 3 the Internal Revenue Code and to furnish written proof of the payment to: 4 1. A. the Department; 5 B. in the case of an employee of the Maryland Environmental 6 Service, the Board of Directors of the Service; or 7 C. in the case of an employee of an institution of higher 8 education specified in § 3–102(a)(1)(v) of this title, the President of the institution or the 9 President’s designee; and 10 2. the exclusive representative.] 11 (c) Notwithstanding subsection (a) of this section, the representatives of the 12 State, the Maryland Environmental Service, a system institution, Morgan State 13 University, St. Mary’s College of Maryland, and Baltimore City Community College: 14 (1) shall not be required to negotiate over any matter that is inconsistent 15 with applicable law; and 16 (2) may negotiate and reach agreement with regard to any such matter 17 only if it is understood that the agreement with respect to such matter cannot become 18 effective unless the applicable law is amended by the General Assembly. 19 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20 1, 2022. 21