BILL ANALYSIS Ó SB 609 Page 1 Date of Hearing: June 8, 2011 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL SECURITY Warren T. Furutani, Chair SB 609 (Negrete McLeod) - As Amended: March 24, 2011 SENATE VOTE : 22-15 SUBJECT : Public Employment Relations Board: final orders. SUMMARY : Makes the decision of an administrative law judge final regarding recognition of certification of an employee organization if the Public Employment Relations Board (PERB) does not issue a ruling that supersedes the decision on or before 180 days after an appeal is filed. EXISTING LAW : 1)Charges PERB with administering the collective bargaining statutes covering employees of California's public schools (Educational Employment Relations Act), colleges and universities (Higher Education Employer-Employee Relations Act), employees of the State of California (Ralph C. Dills Act), employees of local public agencies (cities, counties and special districts under the Meyers-Milias-Brown Act), trial court employees (Trial Court Employment Protection and Governance Act and the Trial Court Interpreter Employment and Labor Relations Act) and supervisory employees of the Los Angeles County Metropolitan Transportation Authority. 2)Establishes PERB as the State agency that has authority to determine in disputed cases, or otherwise approve, appropriate units and to decide contested matters involving recognition, certification, or decertification of employee organizations. 3)Allows employers to file with PERB, a dispute involving recognition or certification of employee organizations. 4)Defines "employee organization" as any organization, or any person of the organization authorized to act on its behalf, that includes employees of a public employer and which has, as one of its primary purposes, representing those employees in their relations with that public employer. SB 609 Page 2 5)Defines "recognized employee organization" as an employee organization that has been formally acknowledged by the public agency as an employee organization that represents employees of the public agency. FISCAL EFFECT : According to the Senate Appropriations Committee, "Although there may not be direct costs associated with this bill, it could have the effect of causing PERB to re-prioritize cases regarding the recognition or certification of an employee organization in order to complete a full determination of those cases within 180 days. While most cases are settled quickly, a few will occasionally require the scheduling of hearings which result in a longer period of time before a determination by the Board can be made. Of the 95 cases filed since January 1, 2009 involving Petitions for Recognition or Certification, only three have involved an appeal filed with the Board. One appeal was decided after 52 days, another in 279 days, and the third is still pending." COMMENTS : When an employee organization files a representation petition with PERB that reflects a majority of support in the unit sought to be represented, the employer must grant recognition unless the employer raises a dispute, such as the appropriateness of the proposed bargaining unit, in which case, the PERB agent (i.e., administrative law judge) must conduct a formal investigation or hearing and issue a written determination. The losing party may appeal the decision to PERB. This same process applies to other types of representation petitions as to which there is a dispute raised by the employer or employee organization. According to the author's office, "When some aspect of a PERB representation petition is disputed, it has the effect of delaying, sometimes by several years, effectuation of employee free choice as to representation. Moreover, an employer that raises a dispute to an initial representation petition can avoid recognition and bargaining by years, by which time employees have become disillusioned and the employer unilaterally has been able to make significant changes in wages, benefits and working conditions without having to negotiate with the employee's chosen representative." REGISTERED SUPPORT / OPPOSITION : Support SB 609 Page 3 California Teamsters Public Affairs Council (Sponsor) American Federation of State, County and Municipal Employees Association of California State Supervisors California Conference Board of the Amalgamated Transit Union California Conference of Machinists California Labor Federation California State Employees Association California State University Employees Union CSEA Retirees Professional and Technical Engineers, Local 21 Opposition None on file Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957