BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 616
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          Date of Hearing:   April 24, 2013

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY
                                  Rob Bonta, Chair
                   AB 616 (Bocanegra) - As Amended:  March 19, 2013
           
          SUBJECT  :   Local public employee organizations: dispute:  
          factfinding panel.

           SUMMARY  :   Makes changes to the Meyers-Milas-Brown Act (MMBA)  
          with respect to impasse procedures and factfinding and the  
          process for determining the appropriateness of a bargaining  
          unit, placing that authority with the Public Employment  
          Relations Board (PERB).  Specifically,  this bill  :  

          1)Extends the period of time that an employee organization has  
            to request fact finding in disputes not submitted to mediation  
            from 30 days to 60 days following the date either party  
            provided the other with written notice of a declaration of  
            impasse.

          2)Provides that if either party disputes that a genuine impasse  
            has been reached, it may submit that dispute to PERB for  
            resolution.  If PERB determines that a genuine impasse exists,  
            the parties' differences are subject to the remainder of the  
            fact finding procedures of the MMBA.

          3)Defines "impasse" for purposes of these provisions to mean  
            that the parties to a dispute over a matter within the scope  
            of collective bargaining have reached a point that future  
            meetings to resolve the issue would be futile.

          4)Allows the employee relations commissions for the County and  
            City of Los Angeles to maintain and amend existing impasse  
            rules and regulations as they deem necessary consistent with  
            the policies contained in the MMBA.

          5)Grants PERB the authority to make unit determinations in  
            accordance with the rules and regulations it has adopted in  
            accordance with the MMBA.

          6)Specifies the criteria PERB is required to take into  
            consideration when determining an appropriate unit.









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          7)Specifies that an appropriate group of skilled crafts  
            employees has the right to be in a separate bargaining unit  
            based on occupation.

          8)Specifies that "skilled crafts employees" includes, but is not  
            limited to, carpenters, plumbers, electricians, painters, and  
            operating engineers.

          9)Establishes a rebuttable presumption that professional and  
            nonprofessional employees should not be included in the same  
            bargaining unit.

          10)Authorizes PERB, rather than the public agency, to adopt  
            rules and regulations providing for the designation of  
            management and confidential employees of the public agency and  
            restricting those employees from representing any employee  
            organization that represents other employees of the public  
            agency on collective bargaining matters. 

           EXISTING LAW  , as established by the MMBA:

          1)Contains various provisions intended to promote full  
            communication between public employers and their employees by  
            providing a reasonable method of resolving disputes regarding  
            wages, hours, and other terms and conditions of employment  
            between public employers and public employee organizations.

          2)Provides that if, after a reasonable amount of time,  
            representatives of the public agency and the employee  
            organization fail to reach agreement, the two parties may  
            mutually agree on the appointment of a mediator and equally  
            share the cost.

          3)Authorizes an employee organization to request that the  
            parties' differences be submitted to a factfinding panel not  
            sooner than 30 days, but not more than 45 days, following the  
            appointment of a mediator or entering into a mediation  
            process.  If the dispute was not submitted to mediation, an  
            employee organization may request that the parties'  
            differences be submitted to a factfinding panel not later than  
            30 days following the date either party provided the other  
            with written notice of a declaration of impasse.

          4)Allows an employer to implement their last, best and final  
            offer once any applicable mediation and fact-finding  








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            procedures have been exhausted and, despite the implementation  
            of the best and final offer, allows a recognized employee  
            organization the right each year to meet and confer.

          5)Authorizes a local public agency to adopt reasonable rules and  
            regulations after consultation in good faith with  
            representatives of an employee organization or organizations  
            for the administration of employer-employee relations under  
            the MMBA.  This includes provisions for verifying that an  
            organization does in fact represent employees of the  
            organization, recognition of employee organizations, and  
            exclusive recognition of employee organizations.

          6)Authorizes a public agency to adopt reasonable rules and  
            regulations providing for the designation of management and  
            confidential employees of the public agency and restricting  
            those employees from representing any employee organization  
            that represents other employees of the public agency on  
            matters within the scope of representation.

          7)Delegates jurisdiction over the employer-employee relationship  
            to PERB and charges PERB with resolving disputes and enforcing  
            the statutory duties and rights of local public agency  
            employers and employee organizations.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   According to the author, "Typically, local public  
          agencies, such as cities and counties, delegate the  
          responsibility for making such unit determinations to their  
          chief executive officer or general manager. Although appropriate  
          unit determinations are of critical importance in affording  
          public employees the fullest freedom to exercise their right to  
          join and be represented by employee organizations of their own  
          choosing, current law allows a clearly interested party, the  
          public employer, to decide which job classifications will be  
          included in the unit and which will not."

          "In contrast, the other major California labor-law statutes,  
          such as the Educational Employment Relations Act (EERA), the  
          State Employer-Employee Relations Act (Ralph M. Dills Act) and  
          the Higher Education Employment Relations Act (HEERA), as well  
          as the National Labor Relations Act (a source of guidance to  
          interpreting the California statutes), unit determinations are  
          made by an expert and impartial administrative agency, such as  








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          the Public Employment Relations Board (PERB) and the National  
          Labor Relations Board (NLRB), respectively."

          With respect to the impasse procedures, the author states,  
          "?when a public employer and a public employee organization  
          reach an impasse in collective bargaining and the dispute has  
          not been submitted to voluntary mediation, the employee  
          organization may 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.  PERB has  
          interpreted this provision, in its regulations and its  
          administrative rulings, to require the employee organization to  
          make this request within 30 days of a declaration of impasse,  
          without regard to whether the employer and union have in fact  
          reached a genuine impasse in the negotiations.  This loophole  
          could allow a public employer to evade its duty to bargain in  
          good faith by declaring impasse prematurely or in bad faith."

          Opponents state, "On the issue of recognition of employee  
          representative and unit determination and modification, we  
          believe that counties and their employees know best how these  
          matter should be decided.  Local rules specify how a unit will  
          be formed or modified and when and how a union will be  
          recognized.  We fail to see how PERB, a centralized body, is  
          better positioned to make determinations about which employees  
          belong together in a bargaining unit in counties as different as  
          Alpine and San Diego.  Further, we do not see how PERB could  
          handle this increased workload without significant staff  
          increases which seem unlikely to be provided in the current  
          budget climate.  Delays in making these decisions will lead to  
          uncertainty and increased labor friction."

          On the issue of extending the time from 30 to 60 days for the  
          submission of differences to a factfinding panel, opponents  
          believe this will do nothing more than lengthen the negotiating  
          period to the benefit of the party interested in maintaining the  
          status quo.

          Opponents conclude, "Finally, the shift in AB 616 that allows  
          PERB to designate management and confidential employees strips  
          counties of their fundamental right to make personnel decisions.  
           Management and confidential employees engage in work which  
          makes them privy to the decision-making process of a county and  
          the information management and confidential employees have  








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          access to can affect labor relations.  For this reason it is  
          crucial and inherent in the powers and duties of a county to  
          retain the prerogative to designate which employees are  
          management and confidential based on the work they perform  
          locally."

          The Committee is informed that the author will be offering  
          amendments in Committee that retain Section 1 of the bill  
          dealing with impasse procedures and delete all other provisions  
          of the bill.
          
           PRIOR LEGISLATION  :

          AB 1606 (Perea), Chapter 314, Statutes of 2012, authorized an  
          employee organization to request that the parties' differences  
          be submitted to a fact-finding panel not sooner than 30 days,  
          but not more than 45 days, following the appointment of a  
          mediator or entering into a mediation process.  If the dispute  
          was not submitted to mediation, an employee organization may  
          request that the parties' differences be submitted to a  
          factfinding panel not later than 30 days following the date  
          either party provided the other with written notice of a  
          declaration of impasse.

          AB 646 (Atkins), Chapter 680, Statutes of 2011, allowed local  
          public employee organizations to request factfinding if a  
          mediator is unable to reach a settlement within 30 days of  
          appointment, defines certain responsibilities of the factfinding  
          panel and interested parties, and made specified exemptions from  
          these provisions.

          AB 195 (Hernández), Chapter 271, Statutes of 2011, specified  
          that a public agency is prohibited from, among other things,  
          imposing reprisals on or discriminating against employees  
          because of their exercise of rights guaranteed by the act, and  
          specified that knowingly providing a recognized employee  
          organization with inaccurate information regarding the financial  
          resources of the public employer constituted a refusal or  
          failure to meet and negotiate in good faith. The bill also  
          declared that the provisions were intended to be technical and  
          clarify of existing law.

          AB 1156 (Nunez), Chapter 215, Statutes of 2003, clarified the  
          role of PERB, relative to its jurisdiction in resolving disputes  
          and enforcing the statutory duties and rights of local public  








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          agency employers and employees under the MMBA, to include the  
          power to order elections, conduct any election it orders and  
          adopt rules to apply in areas where a public agency has no rule.  
          The bill also empowered employees of a local public agency and  
          employee organization to challenge a rule or regulation of a  
          public agency in violation of MMBA.

          AB 1281 (Cedillo), Chapter 790, Statutes of 2001, required local  
          agencies to recognize an employee organization as the exclusive  
          representative of the employees in an appropriate unit based  
          upon a signed petition, authorization cards, or union membership  
          cards showing that a majority of the employees desire such  
          recognition.

          SB 739 (Solis), Chapter 901, Statutes of 2000, revised MMBA to  
          transfer jurisdiction for the resolution of unfair labor  
          practice charges and representation disputes to PERB.

          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           Coalition of California Utility Employees
          International Brotherhood of Electrical Workers

           Opposition 
           California Association of Sanitation Agencies
          California State Association of Counties
          County of Lassen
          County of Sonoma Board of Supervisors
          Butte County boards of Supervisors
          League of California Cities
          Rural County Representatives of California
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957