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).