BILL ANALYSIS AB 1463 Page 1 ASSEMBLY THIRD READING AB 1463 (Eng) As Introduced February 23, 2007 Majority vote PUBLIC EMPLOYEES 4-2 APPROPRIATIONS (vote not available) ----------------------------------------------------------------- |Ayes:|Hernandez, Mullin, | | | | |Swanson, Torrico | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Jeffries, Anderson | | | | | | | | ----------------------------------------------------------------- SUMMARY : Expands the definition of public school employer or employer to include certain joint powers agencies (JPAs) for the purposes of collective bargaining. Specifically, this bill : 1)Includes within the definition of public school employer or employer a JPA, provided that the JPA meet all of the following criteria: a) It is separate from the contracting parties to the joint powers agreement; b) It has its own employees; and, c) Any of the following are true: i) It provides services primarily performed by a school district, county board of education, or county superintendent of schools; ii) A school district, county board of education, or county superintendent of schools is designated as the party to the JPA whose power is subject to the restrictions upon the manner of exercising the power of one of the contracting parties; or, iii) It is comprised solely of school agencies. 2)Excludes from the definition, those JPAs that provide AB 1463 Page 2 insurance services. EXISTING LAW : 1)Provides, relative to JPAs, that if authorized by their legislative or other governing bodies, two or more public agencies by agreement may jointly exercise any power common to the contracting parties. 2)States that "public agency" includes, but is not limited to, the federal government or any federal department or agency, this state, another state or any other state department or agency, a county, county board of education, county superintendent of schools, city, public corporation, public district, or regional transportation commission of this or another state. 3)Provides, relative to employer-employee relations, the Education Employment Relations Act (EERA) requires school districts and county officers of education to engage in collective bargaining with employees. 4)Requires JPAs to comply with the "meet and confer" requirements of the Meyers-Milias-Brown Act (MMBA) FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Annual state mandate reimbursement costs of $500,000 to $1 million, depending on how many JPAs engage in collective bargaining under the bill. State payments count against the Proposition 98 guarantee. 2)Potential increased costs to school districts for wages and benefit increases resulting from collective bargaining agreements between JPAs and their employees. These costs would not be reimbursable. COMMENTS : According to supporters, "In 1990, the Public Employment Relations Board issues a decision stating that JPAs were not specifically authorized under the EERA to engage in collective bargaining. As a result, JPAs must comply with the MMBA which calls for a "meet and confer" process but does not provide all of the procedural elements of the EERA which could result in egregious labor abuses. For example, it is possible AB 1463 Page 3 for a JPA to lay off workers and hire them back with reduction in salary, hours, working conditions, and classification changes without regard to negotiated criteria under MMBA." Supporters conclude, "Current JPAs in the education field employ individuals to do substantially similar tasks as those in regular public schools. There is no reason why JPA employees should be treated any differently than regular public school employees. This bill will expand the definition of 'public school employer' under the EERA to include JPAs for the purposes of collective bargaining." This bill is similar to AB 91 (Hertzberg) of 1999 that was vetoed by the Governor. In his veto message, the Governor stated, "The costs incurred by public school employers for collective bargaining are currently reimbursable by the State. The need to extend collective bargaining in school-related joint powers agencies has not been demonstrated. However, for school districts and county offices of education choosing to form joint powers agencies, this bill may result in situations where the State is required to backfill Public Employees' Retirement System contributions for employees whose employment is transferred to joint powers agencies. Based on this, I am unable to support this measure." Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957 FN: 0001061