This is a staff paper in response to requests from administrators and trustees in about 11 states where legislatures are considering bills that will enable faculties to unionize for purposes of collective bargaining. Perhaps the most important question posed by such legislation is "Who is the employer for the state university, a state college, or a community college?" When the higher education community permits this question to go unanswered, the uniformed legislature often permits a state of hiatus within the university by requiring faculty to bargain with someone such as a commissioner of administration. In addition, impasses and grievances may be settled outside the authority of the university. This paper offers suggestions for shaping legislation that would be beneficial to trustees and others interested in the integrity and ability of institutions to govern themselves. (Author/PG)