BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 537 (Bonta) - Local Government Impasse Procedures
          
          Amended: August 12, 2013        Policy Vote: PE&R 3-2
          Urgency: No                     Mandate: Yes
          Hearing Date: August 30, 2013                           
          Consultant: Maureen Ortiz       
          
          SUSPENSE FILE. As proposed to be amended.
          
          
          Bill Summary:  AB 537 makes several changes to the  
          Meyers-Milias-Brown Act (MMBA) governing impasse procedures for  
          local agencies and their respective employee representation  
          organizations with respect to ground rules, ratifications of  
          MOUs, mediation, and arbitration procedures.
          .
          Fiscal Impact: 
          
              Approximately $200,000 in annual costs to the Public  
              Employees' Relations Board  (General Fund)

          Background:  Existing law establishes the Meyers-Milias-Brown  
          Act, which provides a statutory framework for local government  
          employer-employee relations by providing a reasonable method of  
          resolving disputes regarding wages, hours, and other terms and  
          conditions of employment between local public employers and  
          public employee organizations.

          Under MMBA, local public agencies are authorized to adopt  
          reasonable rules and regulations after consultation in good  
          faith with representatives of an employee organization or  
          organizations.  A public agency is required to meet and confer  
          in good faith with the representatives of a recognized employee  
          organization regarding wages, hours, and other terms and  
          conditions of employment.  The Public Employment Relations Board  
          (PERB) is charged with resolving disputes and enforcing the  
          statutory duties and rights of local public agency employers and  
          employee organizations.

          Current law further provides that an agreement between the  
          parties shall not be final and binding upon the parties to the  
          negotiations until it is presented to the public agency's  








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          governing body or statutory representative for determination.   
          If, after a reasonable amount of time, representatives of the  
          public agency and the employee organization fail to reach an  
          agreement,  either  party may request mediation.  Within 5 days of  
          the mediation request, existing law requires  both  parties to  
          agree on the appointment of a mediator and equally share the  
          cost.  However, there is no provision for when the parties  
          cannot agree on a mediator.

          Current law authorizes an employee organization to request that  
          the parties' differences be submitted to a factfinding panel  
          following the appointment of a mediator or entering into a  
          mediation process, or following a written notice of a  
          declaration of impasse.

          A public agency is allowed to implement its last, best and final  
          offer once any applicable mediation and factfinding procedures  
          have been exhausted.  Current law provides that even with  
          implementation of the best and final offer, a recognized  
          employee organization has the right each year to meet and confer  
          with the public agency.

          Proposed Law:  AB 537 contains the following provisions:

            a)  Prohibits a public agency from proposing, as a condition  
              for meeting and conferring, ground rules that limit the  
              right of an employee or employee organization to communicate  
              with officials of the public agency.

            b)  Requires that if a tentative agreement is reached by the  
              authorized representatives of the public agency and a  
              recognized employee organization or recognized employee  
              organizations, that agreement shall be presented to the  
              governing body for determination and provides that the  
              governing body has thirty (30) days to reject the tentative  
              agreement or it shall be deemed adopted.

            c)  Clarifies that a decision by the governing body not to  
              adopt the tentative agreement shall not bar the filing of an  
              unfair practice charge for failure to have met and bargained  
              in good faith through authorized representatives.

            d)  Requires, if the governing body adopts the tentative  








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              agreement, that the parties shall jointly prepare a written  
              memorandum of understanding.

            e)  Provides that an arbitration agreement contained in a MOU  
              is enforceable, as specified. 

            f)  Extends the period of time whereby the parties must  
              mutually agree upon the appointment of a mediator from 5  
              days to 14 days of a request by one of the parties.

          Related Legislation:  AB 616 (Bocanegra), pending on this  
          committee's Suspense File also makes several changes to local  
          government impasse procedures.

          Staff Comments:  AB 537 makes changes to the MMBA that will  
          require additional workload to the PERB similar to its workload  
          under provisions of the Educational Employment Relations Act  
          (EERA), also under the jurisdiction of the Public Employment  
          Relations Board.