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