BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1606| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1606 Author: Perea (D), et al. Amended: 5/17/12 in Senate Vote: 21 SENATE PUBLIC EMPLOYMENT & RETIRE. COMM. : 3-2, 5/7/12 AYES: Negrete McLeod, Padilla, Vargas NOES: Walters, Gaines SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 46-24, 4/23/12 - See last page for vote SUBJECT : Local public employee organizations: impasse procedures SOURCE : American Federation of State, County and Municipal Employees California Professional Firefighters Peace Officers Research Association of California Service Employees International Union DIGEST : This bill authorizes the employee organization to request that the parties' differences be submitted to a factfinding panel not sooner than 30 days or more than 45 days following the appointment or selection of a mediator pursuant to the parties' agreement to mediate or a mediation process required by a public agency's local rules. This bill also authorizes an employee organization, CONTINUED AB 1606 Page 2 if the dispute was not submitted to mediation, to request that the parties' differences be submitted to a factfinding panel not later than 30 days following the date that either party provided the other with a written notice of a declaration of impasse. Lastly, it specifies that its provisions are intended to be technical and clarifying of existing law. ANALYSIS : According to the author, ambiguity in the drafting of AB 646 (Atkins), Chapter 680, Statutes of 2011, has called into question whether an employer can forgo all impasse procedures, including mediation and fact-finding. Several local governments argue that AB 646 does not require fact-finding if the parties do not engage in mediation. The author notes that the Public Employment Relations Board (PERB) adopted emergency regulations to implement AB 646 and the regulations provide if the parties opt to mediate, a fact-finding request can be filed not sooner than 30 days, but not more than 45 days, following the appointment or selection of a mediator. The regulations also provide in cases where a dispute is not submitted to a mediator, the request for fact-finding must occur within 30 days. However, the author argues that whether AB 646 requires that mediation is a necessary precondition to request fact-finding remains unresolved. The author states that AB 1606 clarifies that fact-finding is available to employee organizations in all situations, regardless of whether the employer and employee have engaged in mediation. Background In December 2011, PERB adopted emergency regulations allowing fact-finding to be requested in all circumstances, because the board found it to be the most efficient way to implement the entirety of AB 646 and accurately reflect the intent of the Legislature. The Office of Administrative Law approved the emergency regulatory action, effective on January 1, 2012. During the PERB rulemaking process, it became apparent that AB 646 was drafted in a manner that called into question whether mediation was a precondition to an employee CONTINUED AB 1606 Page 3 organization's ability to request fact-finding. The emergency regulations allow employee organizations to request fact-finding, regardless if mediation has occurred. PERB adopted this interpretation for the regulations to eliminate any uncertainty for employees and employers about when fact-finding could be requested. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 5/21/12) American Federation of State, County and Municipal Employees (co-source) California Professional Firefighters (co-source) Peace Officers Research Association of California (co-source) Service Employees International Union (co-source) California Labor Federation California Teachers Association Laborers' Local 777 & 792 OPPOSITION : (Verified 5/21/12) Orange County Board of Supervisors ARGUMENTS IN SUPPORT : Supporters state that during the PERB rulemaking process, it became apparent that AB 646 was drafted in a manner that called into question whether mediation was a precondition to an employee organization's ability to request fact-finding. Supporters conclude that numerous employers and employee organizations provided public comments on the issue and the majority of interested parties, both employer and labor representatives, urged a reading of AB 646 that provides for a fact-finding request whether mediation occurs or not. ARGUMENTS IN OPPOSITION : Orange County states, "While it is indicated that this bill is intended to be technical and clarifying of existing law, the language states that the panel shall consider different items when reaching their decision. It is believed these factors take more and more discretion away from the Board (i.e., the financial ability of the public agency, consumer price index, etc.) and puts CONTINUED AB 1606 Page 4 it into the hands of the fact finding panel. While it is not mentioned in the bill's text, the decision of the fact finding panel will be made public so it could also have political implications." ASSEMBLY FLOOR : 46-24, 4/23/12 AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block, Blumenfield, Bonilla, Bradford, Buchanan, Butler, Campos, Carter, Chesbro, Dickinson, Eng, Feuer, Fong, Fuentes, Galgiani, Gatto, Gordon, Hall, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, Mendoza, Mitchell, Monning, Pan, Perea, V. Manuel Pérez, Portantino, Skinner, Solorio, Swanson, Torres, Wieckowski, Williams, John A. Pérez NOES: Achadjian, Bill Berryhill, Conway, Donnelly, Beth Gaines, Garrick, Gorell, Grove, Hagman, Halderman, Harkey, Jeffries, Jones, Knight, Logue, Mansoor, Miller, Morrell, Nielsen, Norby, Olsen, Silva, Valadao, Wagner NO VOTE RECORDED: Brownley, Charles Calderon, Cedillo, Cook, Davis, Fletcher, Furutani, Nestande, Smyth, Yamada DLW:m:n 11/13/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED