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
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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.
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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
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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.
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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).