BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 501
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          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 








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          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. 









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           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081