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  
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          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)




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          Glenn A. Miles
          Date:  June 24, 2013                                    Page  
          5