BILL ANALYSIS Ó SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 616 Jim Beall, Chair HEARING DATE: June 24, 2013 AB 616 (Bocanegra) as amended 6/17/13 FISCAL: YES LOCAL GOVERNMENT COLLECTIVE BARGAINING: FACTFINDING HISTORY : Sponsor: Author Other legislation:AB 537 (Bonta) 2013 Currently in Senate PE&R Committee AB 1181 (Gray) 2013 Currently in Senate PE&R Committee AB 1606 (Perea), Chapter 314, Statutes of 2012 AB 646 (Atkins), Chapter 680, Statutes of 2011 ASSEMBLY VOTES : PER & SS 5-2 4/24/13 Appropriations 12-5 5/24/13 Assembly Floor 53-25 5/28/13 SUMMARY : AB 616 clarifies that an employee organization may request, in writing, that a local public employer submit the parties difference to factfinding under the Meyers-Milas-Brown Act (MMBA) within 30 days of reaching an impasse in collective bargaining negotiations that have not been submitted to mediation. The bill also authorizes either party to refer a dispute as to whether the parties have reached impasse to the Public Employment Relations Board (PERB); defines impasse, as specified; and exempts the Los Angeles County and City Employee Relations Committees from these provisions. BACKGROUND AND ANALYSIS : Glenn A. Miles Date: June 24, 2013 Page 1 1) Existing law : a) establishes the Meyers-Milias-Brown Act (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. b) 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. c) 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. d) creates a statutory framework and process for factfinding defining the duties and rights of the parties. e) 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. f) allows an employer to implement its last, best, and final offer once any applicable mediation and factfinding procedures have been exhausted. A recognized employee organization retains the right to meet and confer each year with the employer despite the implementation of the best and final offer. g) delegates jurisdiction over the public Glenn A. Miles Date: June 24, 2013 Page 2 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 but provides the City and County of Los Angeles a local alternative to PERB oversight. h) grants the City of Los Angeles Employee Relations Board (ERB) and the County of Los Angeles Employee Relations Commission (ERCOM) authority to decide labor relation issues such as union recognition, unit determinations, elections, and unfair labor practices for their respective public employees. 2) This bill : makes changes to the Meyers-Milas-Brown Act (MMBA) with respect to impasse procedures and factfinding. Specifically, this bill: a) provides that, where the dispute has not been submitted to mediation, an employee organization may request, in writing , that the public agency submit the parties' differences 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. b) 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 factfinding procedures of the MMBA. c) 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. d) 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. Glenn A. Miles Date: June 24, 2013 Page 3 FISCAL : According to the Assembly Appropriations Committee, AB 616 would result in a fiscal impact of approximately $250,000 for increased staffing for PERB and an undetermined amount to reimburse state mandated local costs. "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 : 1)Argument in Support : According to the Coalition of California Utility Employees, "?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." 2)Argument in Opposition : The California State Association of Counties (CSAC) states that AB 616 "will delay the conclusion of contract negotiations, putting county budgets at risk". CSAC also argues that "creating a new process for determining whether impasse has been reached, rather than allowing local rules to Glenn A. Miles Date: June 24, 2013 Page 4 dictate, adds costs to both PERB and counties." 3)SUPPORT : Coalition of California Utility Employees International Brotherhood of Electrical Workers (IBEW) 4)OPPOSITION : Association of California Water Agencies (ACWA) Butte County Board of Supervisors California State Association of Counties (CSAC) Contra Costa County Board of Supervisors County of Sutter Humboldt County Board of Supervisors League of California Cities Orange County Board of Supervisors Placer County Board of Supervisors Rural County Representatives of California (RCRC) Urban Counties Caucus (UCC) #### Glenn A. Miles Date: June 24, 2013 Page 5