BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 729
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          Date of Hearing:   April 30, 2013

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                AB 729 (Hernandez) - As Introduced:  February 21, 2013

                             As Proposed to Be Amended 
           
          SUBJECT  :  Evidentiary Privileges: Union Agent-Represented Worker

           KEY ISSUE  :  Should confidential communications between a union  
          agent and a represented employee be subject to an evidentiary  
          privilege similar to the attorney-client, clergy-penitent, and  
          other evidentiary privileges?

           FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal. 

                                      SYNOPSIS

          This bill would create a new evidentiary privilege for  
          communications between union agents and represented employees,  
          similar to those currently in place for communications between  
          spouses, attorney and client, doctor and patient, and clergy and  
          penitent.  More recently the privilege was extended to cover  
          relations between a psychotherapist and a patient, a domestic  
          violence counselor and a victim of domestic violence, and a  
          sexual assault counselor and a victim of sexual assault.  The  
          privilege is an exclusionary rule of evidence that permits the  
          holder of the privilege, or the professional who may assert on  
          behalf of the holder, to refuse to disclose the content of a  
          confidential communication between two persons in a privileged  
          relation.  The sponsor, the California Labor Federation,  
          contends that the relation between a union agent and a  
          represented employee is similar to other privileged relations  
          insofar as employees often share sensitive information with  
          union representatives and expect that the union agent will not  
          disclose communications made in confidence.  At least two other  
          states - Illinois and Maryland - have enacted statutes granting  
          privileged status to communications between union agents and  
          employees.  This bill would make both the union agent and the  
          employee (or former employee) the holder of the privilege;  
          however, as proposed to be amended, the union agent would only  
          be able to assert the privilege to refuse to disclose  
          confidential communications, whereas the represented employee  








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          could assert the privilege to refuse to disclose, and to prevent  
          another person (including the union agent) from disclosing.  The  
          bill is supported by several labor organizations.   It is  
          opposed by the Chamber of Commerce, the Civil Justice  
          Association of California, and several business and trade  
          associations.  In response to concerns raised by opponents that  
          the bill as introduced created a privilege that was too broad,  
          the author will take amendments in this Committee to narrow the  
          privilege.  While these amendments appear to address many of the  
          opposition concerns, they do not appear to have removed the  
          opposition. The summary and analysis reflect the bill as  
          proposed to be amended. 

           SUMMARY  :  Creates a new evidentiary privilege relating to union  
          agents and represented employees.  Specifically,  this bill  :  

          1)Provides that a union agent and a represented employee or  
            former employee have a privilege to refuse to disclose, in any  
            court or to any administrative board or agency, or in any  
            arbitration or other proceeding, whether civil or criminal,  
            any confidential communication between the employee or former  
            employee and the union agent while the union agent was acting  
            in his or her representative capacity. 

          2)Permits a union agent to use or reveal a confidential  
            communication made during the course of fulfilling his or her  
            professional representative duties in any of the following  
            circumstances:

             a)   If it appears necessary to prevent the commission of a  
               crime that is likely to result in a clear, imminent risk of  
               serious injury or death of another person. 
             b)   In actions, civil or criminal, against the union agent  
               in his or her personal or official representative capacity,  
               or against the local union or subordinate body thereof or  
               international union of affiliated or subordinate body  
               thereof or any agent thereof in their personal or official  
               representative capacities. 
             c)   When required by court order.
             d)   When, after full disclosure has been provided, the  
               written or oral consent of the bargaining unit member has  
               been obtained, or, if the bargaining unit member is  
               deceased or has been adjudged incompetent by a court of  
               competent jurisdiction, the written or oral consent of the  
               bargaining unit member's estate or guardian or conservator.  








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          3)Defines "union agent" for purposes of this bill to mean any  
            person employed by, or elected by, or appointed by a labor  
            organization and whose duties include the representation of  
            employees in a bargaining unit in a grievance procedure or in  
            negotiations for a labor agreement and the labor organization.  
             Specifies that an appointed employee steward is not a union  
            agent except to the extent a represented employee or former  
            employee communicates in confidence to the steward regarding a  
            grievance or potential grievance. 

          4)Makes both the union agent and the represented employee or  
            former employee the holder of the privilege, as follows:

             a)   Subject to any waiver, a represented employee or former  
               employee has a privilege to refuse to disclose, and to  
               prevent another from disclosing, a confidential  
               communication made to the union agent. 
             b)   Subject to any waiver, a union agent has a privilege to  
               refuse to disclose a confidential communication made  
               between the union agent and the represented employee or  
               former employee. 

           EXISTING LAW  : 

          1)Governs the admissibility of evidence in court proceedings and  
            generally provides a privilege to refuse to testify or  
            otherwise disclose confidential communications made in the  
            course of certain relations, including the following:

             a)   The attorney-client relation (Evidence Code Section  
               954); 
             b)   The spousal relation (Evidence Code Section 980);
             c)   The physician-patient relation (Evidence Code Section  
               994);
             d)   The psychotherapist-patient relation (Evidence Code  
               Section 1014);
             e)   The clergy-penitent relation (Evidence Code Sections  
               1033 and 1034);
             f)   The sexual assault counselor-victim relation (Evidence  
               Code Section 1035.8);
             g)   The domestic violence counselor-victim relation  
               (Evidence Code Section 1037.5.)









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          1)Provides that a person's right to claim a privilege based on  
            one of the relations listed above is waived with respect to a  
            communication protected by the privilege if any holder of the  
            privilege, without coercion, has disclosed a significant part  
            of the communication or has consented to a disclosure made by  
            anyone.  (Evidence Code Section 912 (a).)

          2)Provides that if two or more persons are joint holders of a  
            privilege, a waiver of a right of a particular joint holder of  
            the privilege to claim the privilege does not affect the right  
            of another joint holder to claim the privilege.  In the case  
            of the spousal privilege, the right of one spouse to claim the  
            privilege does not affect the right of the other spouse to  
            claim the privilege.  (Evidence Code Section 912 (b).) 

          3)Provides that if a privilege is claimed on the ground that the  
            matter sought to be disclosed is a communication made in  
            confidence in the course of a recognized privileged relation,  
            the communication is presumed to have been made in confidence  
            and the opponent of the claim of privilege has the burden of  
            proof to establish that the communication was not  
            confidential.  A communication does not lose its privileged  
            character for the sole reason that it was communicated by  
            electronic means or because persons involved in the delivery,  
            facilitation, or storage of electronic communication may have  
            access to the content of the communication.  (Evidence Code  
            Section 917.) 

           COMMENTS  :  This bill seeks to create a new evidentiary privilege  
          for confidential communications between union agents and  
          represented employees, similar to those traditionally granted to  
          other relations characterized by, or assuming, confidentiality,  
          including those between spouses, attorney and client, doctor and  
          patient, and a clergy person and a penitent.  More recently the  
          privilege was extended to cover relations between a  
          psychotherapist and a patient, a domestic violence counselor and  
          a victim of domestic violence, and a sexual assault counselor  
          and a victim of sexual assault.  The privilege is an  
          exclusionary rule of evidence that permits the holder of the  
          privilege, or the professional who may assert it on behalf of  
          the holder, to refuse to disclose the content of a confidential  
          communication between certain classes of persons.

           The Holder of the Privilege  :  Aside from the spousal privilege,  
          most of the other evidentiary privileges recognized in existing  








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          law involve a relationship between a professional of some sort  
          and a "client" who divulges confidential information to that  
          professional: for example, attorney-client, doctor-patient,  
          psychotherapist-patient, trained domestic violence or sexual  
          assault counselor-victim, and clergy-penitent.   Usually it is  
          the "client" or the "patient" - that is, the non-professional in  
          the relationship - who is the holder of the privilege.  This  
          means that it is the patient or client who has the right to  
          invoke, or waive, the privilege.  Not only can the patient or  
          client invoke the privilege in order to refuse to testify or  
          otherwise disclose the contents of a confidential communication,  
          the patient or client can prevent others, including the trained  
          professional, from testifying about or disclosing the content of  
          the confidential communication.  In short, the privilege is  
          primarily intended to protect the person who discloses  
          confidential information to a trusted person.  This assumption  
          of a special trust is also, of course, at the core of the  
          spousal privilege.  

          However, in one of the privileged relations, both parties - to  
          varying degrees - are deemed the holder of the privilege.  Under  
          the clergy-penitent privilege, both the clergy person and the  
          penitent are deemed to be holders of the privilege, even though  
          the privilege is greater for the penitent than it is for the  
          clergy person.  The penitent may assert the privilege to refuse  
          to disclose, or to prevent another from disclosing, the content  
          of the confidential communication.  (Evidence Code Section  
          1033.)  The clergy person can assert the privilege in order to  
          refuse to disclose the confidential communication, but he or she  
          does not have the right to assert the privilege to prevent  
          another from disclosing the information.  (Evidence Code Section  
          1034.)  This bill would create a similar distribution of the  
          privilege - the employee could invoke the privilege to refuse to  
          disclose, and to prevent another (including the union agent)  
          from disclosing, the confidential communication.  It is not  
          entirely clear why the clergy person is deemed a holder of the  
          privilege while a doctor or lawyer, for example, is not.   
          Perhaps it is because the clergy person has a religious, rather  
          than a merely legal, duty to maintain the confidence of  
          penitent. 

          At any rate, the rationale for making both the union agent and  
          the employee a holder of privilege under this bill does not  
          reflect any essential affinity between the union agent and a  
          clergy person; rather, according to the sponsor, it is based on  








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          the fact that the union agent does not only represent the  
          employee who made the confidential communication, but represents  
          all of the other employees of the bargaining unit.  Thus, a  
          union agent may have a duty not to disclose a confidential  
          communication, even if the employee waives the privilege, if to  
          do so would adversely affect another represented employee. 

           Limitations on Privilege  :  Like any other evidentiary privilege,  
          the union agent-represented employee privilege is subject to  
          many exceptions.  For example, like any other privilege  
          protecting confidential communications, it would only protect  
          communications that were made in confidence and only to the  
          other party.  If a third party were present, or if the  
          communication is voluntarily shared with any third party, the  
          privilege is waived.  Similarly, the bill makes standard  
          exemptions for instances in which disclosure is necessary to  
          prevent the commission of crime that would likely result in  
          serious injury or death, or pursuant to a court order. 

           The Cook Paint & Varnish Case  :  Both proponents and opponents of  
          this bill cite the same case in support of their respective  
          positions -- Cook  Paint & Varnish Co.  v. NLRB (1981) 648 F.2d  
          712  - yet neither side does so in an entirely convincing  
          fashion.  The question in that case was whether an employer had  
          violated Section 8(a)(1) of the National Labor Relations Act  
          (NLRA) by seeking to compel employees, at a pre-arbitration  
          interview, to respond to questions raised by company counsel  
          relating to a union grievance - where presumably the grievance  
          had been expressed at some point to a union representative.  The  
          National Labor Relations Board (NLRB) held that the company  
          violated Section 8(a)(1) of the Act by threatening two employees  
          with suspension or discharge if they refused to answer  
          questions.  The Board ordered the company to cease this  
          allegedly unlawful conduct.  (Cook Paint & Varnish Co. v. NLRB  
          (1979) 246 NLRB 464.)  On appeal, however, a federal court found  
          that, in reaching this conclusion, the Board had adopted an  
          overly broad per se rule that an employer may never use a threat  
          of discipline to obtain information from an employee concerning  
          a matter that has been set for arbitration. The Court refused to  
          enforce the Board's order and remanded the case back to the  
          Board. 

          Proponents of the bill cite the 1979 NLRB ruling for the  
          proposition that, in holding that the employer could not compel  
          an employee to reveal what was said between the employee and  








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          union representative, the Board created a presumption that their  
          communications were confidential.  However, proponents of the  
          bill fail to note that a federal court refused to enforce the  
          Board's order as overly broad.  

          Opponents of the bill, on the other hand, cite the 1981 court  
          ruling for the proposition that a union's ability to refuse  
          disclosure of pertinent information would be an "unfair"  
          practice under NLRA because the employer would be forced to  
          disclosure management communications with employees regarding a  
          grievance while the union agent and the employee would not.   
          Yet, the opponents of the bill apparently make an inference that  
          the Court did not.  The Court rejected the Board's ruling, not  
          because it was an "unfair practice," but because the Board has  
          relied on an overly broad, per se rule that an employer could  
          never compel an employee to participate in a pre-arbitration  
          interview.  The Court noted that there might be situations in  
          which a pre-arbitration interview would be appropriate, while at  
          the same time acknowledging that the pre-arbitration interview  
          should not be conducted in a manner that would allow the  
          employer to "pry into union protected activities."  In short,  
          while the case may be suggestive, it does not appear to lend  
          much support to either the opponents or proponents of this bill.  


           ARGUMENTS IN SUPPORT  :  According to the sponsor, the California  
          Labor Federation (CLF), when "a union member confides in a union  
          representative, he or she has every expectation that the  
          conversation will remain private.  The ability to speak  
          confidentially is essential to a union representative's ability  
          to provide effective representation.  It is also important to  
          resolving workplace conflicts expeditiously, fairly, and without  
          litigation."  CLF notes that under existing law evidentiary  
          privileges are extended to other relations where confidences are  
          shared, such as the relation between a lawyer and client.  Even  
          though the relationship between a union agent and a represented  
          employee is similar in terms that both are of a representational  
          nature and both require establishing trust that confidences will  
          not be disclosed, the union agent-employee communications are  
          not similarly protected by an evidentiary privilege.  CLF  
          maintains that there are "many important reasons to extend this  
          privilege."  For example, an "employee may confide to a union  
          representative information that is sensitive, explaining that  
          they were late due to a medical condition or missed work to  
          obtain a domestic violence restraining order.  They may want to  








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          report employer harassment without fearing retaliation if they  
          come forward publicly."  This bill, CLF concludes, would simply  
          extend "a privilege to the confidential communications shared  
          with a union representative," while also "providing exemptions  
          for any information that is necessary to disclose or prevent the  
          commission of a crime or where required by court order." 

          Many other labor organizations support this bill for  
          substantially the same reasons as those articulated by the CLF.   
          The California Teachers Association adds, however, that at least  
          two other states - Illinois and Maryland - have enacted a  
          statutory privilege for communications between an employee and  
          union agent, and that the Alaska Supreme Court recently  
          established such a privilege for public employees.   

           ARGUMENTS IN OPPOSITION  :  The California Chamber of Commerce and  
          a coalition of business and trade associations oppose this bill  
          because, they contend, "it is a one-sided proposed evidentiary  
          privilege that can be misused by labor union representatives to  
          preclude employees who voluntarily want to testify, from  
          testifying regarding discussions with union representatives."  

          The Chamber-led coalition claims that the union's ability to  
          refuse disclosure of pertinent information has already been  
          deemed as "unfair" in Cook Paint and Varnish Co. v. NLRB (1981)  
          648 F.2d 712, "in the sense that the employer would be forced to  
          disclose management communications with employees regarding  
          information related to the processing of an employee grievance,  
          but under AB 729, the union representative and employee would  
          not.  Also, to the extent that this bill interferes with the  
          disclosure requirements of the NLRA with regard to collective  
          bargaining, it would be preempted by federal law." 

          The California Association of Joint Powers Authorities, other  
          organizations representing local government entities, and the  
          California District Attorneys Association generally oppose the  
          breadth of this bill, and also add that all of the other  
          privileged relations require special educational, licensing, and  
          training requirements. 

           PROPOSED AUTHOR AMENDMENTS  :  In order to clarify that both the  
          union agent and the represented employee or former employee are  
          holders of the privilege, albeit to different degrees, and to  
          clarify that the privilege only extends to confidential  
          communications between the union agent and the represented  








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          employee or former employee, the author will take the following  
          amendments in this Committee:

             -    Delete SEC. 3, which runs from page 3, line 26, through  
               page 4, line 24, in its entirety and replace it with the  
               following: 


           SEC. 3. Article 9.5 (commencing with Section 1048) is added to  
          Chapter 4 of Division 8 of the Evidence Code, to read:


               Article 9.5. Union Agent-Represented Worker Privilege 

            1048. (a) Except as required by subdivision (b), a union agent  
          and a represented employee or former employee have a privilege  
          to refuse to disclose, in any court or to any administrative  
          board or agency, or in any arbitration or other proceeding,  
          whether civil or criminal, any confidential communication  
          between the employee or former employee and the union agent  
          while the union agent was acting in his or her representative  
          capacity.

          (b) A union agent may use or reveal a confidential communication  
          made during the course of fulfilling his or her professional  
          representative duties in any of the following circumstances:
          (1) To the extent it appears necessary to prevent the commission  
          of a crime that is likely to result in a clear, imminent risk of  
          serious injury or death of another person.
          (2) In actions, civil or criminal, against the union agent in  
          his or her personal or official representative capacity, or  
          against the local union or subordinate body thereof or  
          international union of affiliated or subordinate body thereof or  
          any agent thereof in their personal or official representative  
          capacities.
          (3) When required by court order.
          (4) When, after full disclosure has been provided, the written  
          or oral consent of the bargaining unit member has been obtained  
          or, if the bargaining unit member is deceased or has been  
          adjudged incompetent by a court of competent jurisdiction, the  
          written or oral consent of the bargaining unit member's estate  
          or guardian or conservator.

           









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           1048.1 For purposes of this article a union agent means any  
          person employed by, elected by, or appointed by a labor  
              organization and whose duties include the representation of  
          employees in a bargaining unit in a grievance procedure or in  
          negotiations for a labor agreement and the labor organization.   
          An appointed employee steward is not a union agent except to the  
          extent a represented employee or former employee communicates in  
          confidence to the steward regarding a grievance or potential  
          grievance.
           

           1048.2. Subject to Section 912, a represented employee or former  
          employee, has a privilege to refuse to disclose, and to prevent  
          another from disclosing, a confidential communication made to  
          the union agent.    

           
           1048.3. Subject to Section 912, a union agent has a privilege to  
          refuse to disclose any confidential communication made between  
          the union agent and the employee or former employee.  
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Labor Federation (sponsor)
          AFSCME
          Association for Los Angeles Deputy Sheriffs 
          California Association of Psychiatric Technicians 
          California Conference Board of the Amalgamated Transit Union 
          California Conference of Machinists 
          California Correctional Peace Officers Association 
          California Correctional Supervisors Organization 
          California Federation of Teachers 
          California Professional Firefighters 
          California School Employees Association 
          California Statewide Law Enforcement Association 
          California Teachers Association 
          California Teamsters Public Affairs Council 
          Engineers and Scientists of California
          Los Angeles County Probation Officers Union 
          Los Angeles Police Protective League 
          Orange County Employees Association 
          Riverside Sheriff's' Association 
          State Coalition of Probation Organizations 








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          UC Student Workers Union, UAW Local 2865
          UNITE HERE!
          United Food and Commercial Workers Union, Western States Council  


           Opposition 
           
          ALPHA Fund
          Associated Builders and Contractors of California 
          Association of Health Districts 
          California Association of Joint Powers Authorities
          California Chamber of Commerce 
          California District Attorneys Association 
          California Grocers Association 
          California Manufacturers and Technology Association 
          California Special Districts Association
          California State Sheriffs' Association  
          Civil Justice Association of California 
          National Federation of Independent Businesses 
          Rural County Representatives of California 
          Western Growers Association 
           
          Analysis Prepared by  :   Thomas Clark / JUD. / (916) 319-2334