BILL ANALYSIS Ó AB 501 Page 1 Date of Hearing: April 13, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 501 (Campos) - As Amended: April 6, 2011 Policy Committee: Public Employees, Retirement and Social Security Vote: 4-2 Urgency: No State Mandated Local Program: Yes Reimbursable: Yes SUMMARY This bill clarifies that all public school employees have the right to union representation. Specifically, this bill: 1) Amends the definition of "exclusive representative" to mean the employee organization recognized or certified as the exclusive negotiating representative for all public school employees rather than just certificated or classified employees. 2) Expands the definition of "public school employer" or "employer' to include a joint powers agency (JPA) that is comprised solely of school agencies, as specified. FISCAL EFFECT 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. By extending collective bargaining requirements to JPAs under EERA, this bill would increase state costs through the mandate reimbursement process. According to the Department of Education, there are 70 education-related JPAs in the state, primarily for purposes of transportation and vocational AB 501 Page 2 education services. Assuming all of these JPAs engaged in collective bargaining, costs of this bill could reach approximately $1.5 million. Many JPA employee groups, however, 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 COMMENTS 1) Rationale . According to the author, In Castaic Union School District v. CSEA (2010), the Public Employment Relations Board (PERB) drastically narrowed the scope of those public school employees covered by collective bargaining. Proponents contend current JPAs in the education field employ individuals to perform tasks substantially similar to those performed by employees in regular public schools. They assert that there is no reason why JPA employees should be treated differently than school district employees with regard to collective bargaining rights. 2) Background . Under current law, two or more entities meeting specified conditions can enter into a joint agreement which allows them to exercise powers common to the contracting parties. Currently there are about 70 of these JPAs operating in school districts across California, primarily providing services in areas of home-to-school transportation and vocational education to combinations of smaller districts. School districts are required to engage in collective bargaining with their employees under current law. JPAs exercised these collective bargaining rights until 1990 when a Public Employee's Relations Board held that JPAs are not specifically covered under the collective bargaining statutes. Thus, while JPA employees are covered by less rigorous "meet and confer" provisions of current law, they are not guaranteed the right to collective bargaining. 3) Previous legislation. AB 1463 (Eng) of 2007 would have expanded the definition of public school employer or employer to include certain joint powers agencies. This bill was held in the Senate Appropriations Committee. This bill is also similar to AB 91 (Hertzberg) of 1999 that was vetoed by the Governor. AB 501 Page 3 Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081