BILL ANALYSIS Ó AB 616 Page 1 Date of Hearing: May 8, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 616 (Bocanegra) - As Amended: April 25, 2013 Policy Committee: PERSSVote:5-2 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill makes changes to the Meyers-Milas-Brown Act (MMBA) with respect to impasse procedures and fact-finding. Specifically, this bill: 1)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. 2)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. FISCAL EFFECT 1)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. 2)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. AB 616 Page 2 COMMENTS 1)Purpose . 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 fact-finding panel not later than 30 days following the date that either party provided the other with a written notice of a declaration of impasse. This bill was introduced because 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. The author argues 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)Opposition . 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. 3)Related legislation. AB 537 (Bonta) makes various changes to the Meyers-Milias-Brown Act (MMBA) governing local public employer and employee relations related to arbitration agreements, mediation, ground rules, contract ratification, and employee relations ordinances. AB 537 is pending in this committee. 4)Previous legislation . a) 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 AB 616 Page 3 not later than 30 days following the date either party provided the other with written notice of a declaration of impasse. b) 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. Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081