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