BILL ANALYSIS Ó AB 616 Page 1 ASSEMBLY THIRD READING AB 616 (Bocanegra) As Amended April 25, 2013 Majority vote PUBLIC EMPLOYEES 5-2 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Bonta, Jones-Sawyer, |Ayes:|Gatto, Bocanegra, | | |Mullin, Rendon, | |Bradford, | | |Wieckowski | |Ian Calderon, Campos, | | | | |Eggman, Gomez, Hall, | | | | |Ammiano, Pan, Quirk, | | | | |Weber | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Allen, Harkey |Nays:|Harkey, Bigelow, | | | | |Donnelly, Linder, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Makes changes to the Meyers-Milas-Brown Act (MMBA) with respect to impasse procedures and factfinding. 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 the Public Employment Relations Board (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 AB 616 Page 2 rules and regulations as they deem necessary consistent with the policies contained in the MMBA. 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 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)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 : According to the Assembly Appropriations Committee, based on the staffing that PERB estimated was necessary to administer the bill, the fiscal impact of administering the provisions of this bill is approximately $250,000. AB 616 Page 3 Though the bill is not keyed a local mandate, there could be state mandated reimbursement of local costs for the impasse decisions. The amount would depend on the number of requests for impasse. Reimbursable costs could be in the millions of dollars. The Commission on State Mandates has approved a test claim for any local government subject to the jurisdiction of PERB that incurs increased costs as a result of a mandate, meaning their costs are eligible for reimbursement. There are several thousand local governments, many with dozens of bargaining units that would be subject to the bill. COMMENTS : According to the author, "?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, including California State Association of Counties, argue extending the time from 30 to 60 days for the submission of differences to a fact-finding panel will do nothing more than lengthen the negotiating period to the benefit of the party interested in maintaining the status quo. They also believe local rules adequately define impasse and the procedures that follow. 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 616 Page 4 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 (Núñez), 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 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. Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957 AB 616 Page 5 FN: 0000770