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
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            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  








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          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 


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