BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Tom Torlakson, Chairman

                                           1463 (Eng)
          
          Hearing Date:  08/30/07         Amended: As Introduced
          Consultant:  Dan Troy           Policy Vote: Labor 3-2
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   AB 1463 would expand the definition of "public  
          school employer" and "employer" to include joint powers agencies  
          (JPAs) for purposes of collective bargaining protection under  
          the Education Employment Relations Act.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2007-08      2008-09       2009-10     Fund
                                                                  
          JPA bargaining                   $375             $750   $750   
          General*

          * Counts toward meeting the Proposition 98 minimum funding  
          guarantee     
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.
          
          Current law allows two or more public entities that meet  
          specified criteria to enter into a joint agreement to exercise  
          powers common to the contracting entities.  Current law also  
          requires most local education agencies, including school  
          districts, county offices of education, and certain charter  
          schools, to engage in collective bargaining with employee  
          organizations over matters of employer-employee relations,  
          subject to the conditions provided under the Education  
          Employment Relations Act (EERA).  The Commission on State  
          Mandates has found this activity to be a state-reimbursable  
          mandate.

          Collective bargaining coverage extended to JPAs until 1990, when  
          a Public Employee's Relations Board (PERB) decision found that  
          since JPAs were not specifically included in the definition of  
          "public school employer" or "employer" for the purposes of EERA,  
          that JPAs were not required to engage in collective bargaining.   










          JPAs, thus, are subject only to "meet and confer in good faith"  
          provisions, which are not subject to PERB oversight.

          By extending collective bargaining requirements to JPAs under  
          EERA, this bill would increase state costs through the mandate  
          reimbursement process.  In the 2005-06 fiscal year, the state  
          accrued almost $25 million in mandated cost obligations for  
          local education agency collective bargaining claims.  This  
          indicates typical LEA costs of approximately $20,000 to $25,000.  
            According to the Department of Education, there are 70  
          education-related JPAs in the state, primarily for purposes of  
          transportation and vocational education services.  Assuming all  
          of these JPAs engaged in collective bargaining, costs of this  
          bill could reach approximately $1.5 million.  Staff understands,  
          however, that many JPA employee groups are likely to forego EERA  
          provisions given the nature of the agreements reached with  
          employers.  Assuming half of all JPAs utilized EERA, statewide  
          costs would be approximately $750,000.    

                                         -1-
          Page 2
          AB 1463 (Eng)

          Similar legislation, AB 91 (Hertzberg, 1999), was vetoed by then  
          Governor Davis due to the potential increased costs of mandate  
          reimbursement.  Governor Wilson also vetoed similar legislation  
          in 1997 (AB 134, Baca).