BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 501 (Campos) Hearing Date: 8/25/2011 Amended: 4/6/2011 Consultant: Maureen Ortiz Policy Vote: PE&R 3-2 _________________________________________________________________ ____ BILL SUMMARY: AB 501 expands the definition of "public school employer" or "employer" to include auxiliary organizations established by the California Community Colleges and joint powers agencies for the purposes of collective bargaining under the Education Employment Relations Act (EERA). _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund CCC bargaining expenses -----unknown, potentially significant--- General* JPA bargaining --------unknown, potentially $750-------- General PERB admin expenses -------------likely minor, absorbable---------- General *Counts toward meeting the Proposition 98 minimum funding guarantee. _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. The Commission on State Mandates has determined that costs for collective bargaining are reimbursable by the state. In the 2005-06 fiscal year, the state accrued almost $25 million in mandated cost obligations for local education agency collective bargaining claims. The typical cost is about $20,000 to $25,000 per agreement. There are about 70 education-related JPAs in the state, primarily for purposes of home-to-school transportation and vocational education services. Assuming half of these JPAs engage in collective bargaining utilizing the EERA, reimbursable costs would be approximately $750,000. Additionally, AB 501 AB 501 (Campos) Page 1 could result in an unknown increase in costs to school districts for wage and benefit increases resulting from the collective bargaining agreements. Collective bargaining coverage had been extended to JPAs until 1990 when a Public Employment 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, the JPAs were not required to engage in collective bargaining with employees. In Castaic Union School District v. CSEA (2010), the PERB ruled that noon-time duty aides were ineligible to receive representation rights because they are neither certificated nor classified public school employees. Further in SanJose/Evergreen Community College District (2007), PERB ruled that employees of a JPA consisting of public schools were not eligible for organization even though many of these same employees were considered "public school employees" for purposes of the EERA until the JPA was created, even though they continued to perform the same work. AB 501 also extends collective bargaining rights to auxiliary organizations established at community colleges. Such organizations are formed to assist community colleges in seeking grant funds or specialized student services. According to the Community College League, classified college staff that support auxiliary organizations are represented by an exclusive bargaining representative of classified employees. However, often colleges hire individuals on a short/limited-term basis specifically to develop the grant proposals. This bill is similar to AB 1463 (Eng) which was held on this committee's Suspense File in 2007, however, that bill only included JPAs.