BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 537| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 537 Author: Bonta (D) Amended: 9/6/13 in Senate Vote: 21 SENATE PUBLIC EMPLOYMENT & RETIRE.COMMITTEE : 3-2, 6/24/13 AYES: Beall, Block, Yee NOES: Walters, Gaines SENATE APPROPRIATIONS COMMITTEE : 5-2, 8/30/13 AYES: De León, Hill, Lara, Padilla, Steinberg NOES: Walters, Gaines ASSEMBLY FLOOR : 54-24, 5/30/13 - See last page for vote SUBJECT : Meyers-Milias-Brown Act: impasse procedures SOURCE : AFSCME California Professional Firefighters SEIU DIGEST : This bill makes changes to the Meyers-Milias-Brown Act (MMBA) governing collective bargaining between local public agencies and their employees with respect to ground rules, ratifications of memorandum of understanding (MOU), mediation, and arbitration procedures. Senate Floor Amendments of 9/6/13 clarify the conditions governing arbitrations between employee organizations and local public employers and specify that the time for a governing board CONTINUED AB 537 Page 2 to reject or accept a MOU runs 30 days from the date of the noticed public meeting rather than from the date of presentation. ANALYSIS : Existing law: 1. Establishes the MMBA, 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. 2. Under MMBA, authorizes local public agencies to adopt reasonable rules and regulations after consultation in good faith with representatives of an employee organization or organizations. 3. Requires a public agency 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. 4. Delegates jurisdiction over the employer-employee relationship to the Public Employment Relations Board (PERB) and charges PERB with resolving disputes and enforcing the statutory duties and rights of local public agency employers and employee organizations. 5. 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 governing body or statutory representative for determination. This bill: 1. Requires that if a tentative agreement is reached by the authorized representatives of a public agency and a recognized employee organization(s), that agreement is required to be presented to the governing body for determination and provides that the governing body has 30 days from the date it is first considered at a duly noticed public meeting to reject the tentative agreement or it shall CONTINUED AB 537 Page 3 be deemed adopted. 2. Clarifies that a decision by the governing body to reject 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. 3. Requires, if the governing body adopts the tentative agreement, the parties to jointly prepare a written MOU. 4. Specifies that an arbitration agreement contained in an MOU is enforceable, as specified, with the following stipulations: A. Prohibits assertions of failing to satisfy procedural requirements from being a basis for refusing to submit the dispute to arbitration. B. Requires that all procedural defenses shall be presented to the arbitrator for resolution. C. Prohibits a court from refusing to order arbitration because the issue could also constitute an unfair labor practice under the jurisdiction of PERB. D. Clarifies that if a party to an MOU files an unfair practice charge based on such conduct, PERB is required to place the charge in abeyance if the dispute is subject to final and binding arbitration pursuant to the MOU and dismiss the charge, as specified. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee, approximately $200,000 in annual costs to the PERB (General Fund). SUPPORT : (Verified 9/9/13) AFSCME (co-source) California Professional Firefighters (co-source) SEIU (co-source) Association for Los Angeles Deputy Sheriffs California Association of Professional Employees CONTINUED AB 537 Page 4 California Labor Federation Glendale City Employees Association Laborers International Union of North America, Locals 777 and 792 Los Angeles Probation Officers' Union, AFSCME, Local 685 Organization of SMUD Employees Riverside Sheriffs' Association San Bernardino Public Employees Association San Luis Obispo County Employees Association Santa Rosa City Employees Association OPPOSITION : (Verified 9/9/13) Association of California Water Agencies Butter County Board of Supervisors California Association of Sanitation Agencies California State Association of Counties Cities of Brawley, Ceres, Del Mar, El Centro, Livingston, Lodi, San Jose, San Luis Obispo, San Mateo, Santa Barbara, Santa Maria, and Vista Contra Costa County Counties of Sutter and Tehama El Dorado Irrigation District League of California Cities Los Angeles County Board of Supervisors Marin County Board of Supervisors Napa County Board of Supervisors Orange County Board of Supervisors Placer County Board of Supervisors Rural County Representatives of California Sacramento County Board of Supervisors Urban Counties Caucus ARGUMENTS IN SUPPORT : According to this bill's sponsor, the California Professional Firefighters, "AB 537 proposes to enact changes that will advance the parties' mission of protecting the health and welfare of the public, providing impasse remedies necessary to afford public employers the opportunity to safely alleviate the effects of labor strife that would otherwise lead to the disruption of the efficient delivery of public services to the people of California." SEIU notes that by addressing five concerns, including arbitration agreements, mediation, ground rules, contract CONTINUED AB 537 Page 5 ratification, and employee relations ordinances, this bill is intended "to ensure meaningful dialogue between employers and employees, as well as provide a reasonable method for resolving disputes." The Association for Los Angeles Deputy Sheriffs states this bill "clarifies that a public agency must meet and confer in good faith with recognized employee organizations before adopting reasonable rules and regulations governing the administration of employer-employee relations." ARGUMENTS IN OPPOSITION : The California State Association of Counties (CSAC) argues that "AB 537 ignores decades of local rulemaking on collective bargaining procedures and undermines counties' constitutional right to provide for the compensation of employees." CSAC also believes that this bill will result in increased costs to counties and PERB due to the expansion of access to mediation. CSAC questions whether this bill "can be implemented as a practical matter" because with 58 counties, 482 cities, and over 2,000 special districts, many with dozens of bargaining units, it is unlikely that there are enough mediators to meet the new demand for mediation that is created by this bill and thus, the collective bargaining process will become long and drawn out. ASSEMBLY FLOOR : 54-24, 5/30/13 AYES: Alejo, Ammiano, Atkins, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chesbro, Cooley, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Hall, Roger Hernández, Jones-Sawyer, Levine, Lowenthal, Medina, Mitchell, Mullin, Muratsuchi, Nazarian, Pan, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Waldron, Weber, Wieckowski, Williams, Yamada, John A. Pérez NOES: Achadjian, Allen, Bigelow, Chávez, Conway, Dahle, Donnelly, Beth Gaines, Gorell, Grove, Hagman, Harkey, Jones, Linder, Logue, Maienschein, Mansoor, Melendez, Morrell, Nestande, Olsen, Patterson, Wagner, Wilk NO VOTE RECORDED: Holden, Vacancy CONTINUED AB 537 Page 6 JL:k 9/9/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED