BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 616 (Bocanegra) - Local Public Employees Amended: June 17, 2013 Policy Vote: PE&R 3-2 Urgency: No Mandate: No Hearing Date: August 30, 2013 Consultant: Maureen Ortiz SUSPENSE FILE. Bill Summary: AB 616 amends the Meyers-Milias-Brown Act relating to bargaining impasse and fact finding procedures between local agencies and their respective employee representation organizations. Fiscal Impact: Approximately $50,000 in one-time costs for rulemaking, and $200,000 annual ongoing costs to review and process impasse determinations (General) The Public Employment Relations Board (PERB) will incur costs for making impasse determinations and will need to promulgate new regulations for those procedures. PERB will also need to amend existing regulations with respect to extending the timeframe for either party to declare an impasse. The $200,000 estimate results from the need for 2.25 PYs consisting of one Attorney, one administrative assistant, and a partial (.25) Attorney III to process, investigate, and dispose of 150 to 200 impasse determinations per year, and to handle any associated litigation. Background: Existing law requires the governing body of a local public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment. The Meyers-Milias-Brown Act provides a statutory framework for local government employer-employee relations by providing a reasonable method of resolving disputes. 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. AB 616 (Bocanegra) Page 1 Existing law also 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 is 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. If a factfinding panel is convened, each party selects one member and the PERB selects a chairperson. The factfinding panel is required to meet with the parties, either jointly or separately, within10 days and may make inquiries, investigations, and hold hearings in order to arrive at its findings and recommendations. Employers may implement a last, best, and final offer once any applicable mediation and factfinding procedures have been exhausted. Employees retain the right to meet and confer each year with the employer despite the implementation of the best and final offer. Additionally, existing law delegates jurisdiction over the public 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. However, the City and County of Los Angeles is provided a local alternative to PERB oversight through the City of Los Angeles Employee Relations Board and the County of Los Angeles Employee Relations Commission. Proposed Law: AB 616 contains the following provisions: a) Requires that when an employee organization requests that a public agency submit the parties' differences to a factfinding panel, that request must be made in writing. b) Provides that if either party disputes that a genuine impasse has been reached, the issue as to whether an impasse exists may be submitted to PERB for resolution, and requires PERB to notify the parties within five working days if it determines that an impasse existed as of the date of written notice of the declaration of the impasse. AB 616 (Bocanegra) Page 2 c) Maintains the existing rights of the County of Los Angeles and the City of Los Angeles to amend its employee relations commissions' rules and regulations providing for impasse resolution procedures. d) Defines "impasse" to mean that the parties to a dispute over a matter within the scope of representation have reached a point in meeting and negotiating at which their differences in position is so substantial or prolonged that future meetings would be futile. Related Legislation: AB 537 (Bonta), pending in this committee, makes numerous other changes to the Meyers-Milias-Brown Act relating to impasse procedures. Staff Comments: Under the provisions of AB 616, PERB will be required to make impasse determinations before a matter can be referred to a fact finding panel similar to that which PERB currently makes under the Educational Employment Relations Act (EERA). PERB must make a determination and notify the parties within 5 days after receipt of the request. Although the number of requests that will be received annually is not known, last year PERB received approximately 200 requests to make impasse determinations under the EERA.