BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1834
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          ASSEMBLY THIRD READING
          AB 1834 (Williams)
          As Amended  April 24, 2014
          Majority vote 

           HIGHER EDUCATION    8-4         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Williams, Bloom, Fong,    |Ayes:|Gatto, Bocanegra,         |
          |     |Fox,                      |     |Bradford,                 |
          |     |Jones-Sawyer, Medina,     |     |Ian Calderon, Campos,     |
          |     |Quirk-Silva, Weber        |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Chávez, Achadjian, Olsen, |Nays:|Bigelow, Donnelly, Jones, |
          |     |Wilk                      |     |Linder, Wagner            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Expands the definition of employees under the Higher  
          Education Employer-Employee Relations Act (HEERA) to include  
          students whose employment is contingent on their status as  
          students, specifically to Graduate Student Researchers (GSRs).

           EXISTING LAW  establishes HEERA to provide a statutory framework  
          to regulate labor relations at University of California (UC),  
          California State Univeristy (CSU), and Hastings College of Law  
          and their employees; provides the Public Employment Relations  
          Board (PERB) authority to enforce HEERA; defines "employees"  
          under the HEERA and authorizes PERB to find a student employee  
          whose employment is contingent on his or her status as a student  
          as an employee only if the services he or she provides is  
          unrelated to his or her educational objectives, or those  
          educational objectives are subordinate to the services he or she  
          performs and that coverage under the HEERA would further the  
          purposes of the HEERA.  (Government Code Sections 3560-3599)

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, assuming that the approximately 12,000 GSRs at UC  
          choose to unionize, UC will incur the following costs:

          1)Bargaining.  One-time costs in the low hundreds of thousands  
            of dollars for bargaining sessions and travel.








                                                                  AB 1834
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          2)Contract Administration - including training staff regarding  
            contract terms, grievance management, handling unfair labor  
            practice charges, responding to union information requests,  
            and conducting labor management meetings - could be in the  
            range of $1 million annually systemwide.  UC estimates a cost  
            of about $1.7 million systemwide to administer its contract  
            with postdoctoral scholars, stating that this is a newer  
            bargaining unit than that for teaching assistants, and that  
            newer units generally require greater administration. 

          3)Compensation Increases.  To the extent that collective  
            bargaining, in and of itself, results in overall compensation  
            increases for GSRs, systemwide costs would increase by about  
            $2 million annually for each 1% of across-the-board  
            compensation increase.

          4)Union Dues.  If collective bargaining were to result in UC  
            covering the cost of union dues, UC estimates an annual cost  
            of $2. 3 million based on current GSR systemwide payroll costs  
            and United Auto Workers (UAW) dues rate. (The UAW represents  
            UC postdoctoral scholars and teaching assistants.)

          Some of the above costs might be absorbable, and will likely  
          decline over time.  Given years of tight budgets, however, it is  
          not likely that current UC administrative resources could simply  
          assume the entirety of this new responsibility.

          In terms of funding, much of the above costs could be covered  
          from the grants and contracts that fund much of UC's research,  
          which in addition to funding the direct costs of the research,  
          include an allowance for recovery of indirect costs like  
          contract administration and other related overhead expenses.  UC  
          indicates, however, that indirect costs are typically higher  
          than research sponsors are willing to pay and that recovery of  
          such costs varies among research sponsors.  UC reports that  
          rates negotiated with federal agencies are among the highest,  
          but are still estimated at 5% to 18% below the true indirect  
          costs of conducting the research.  To the extent the above costs  
          are not covered within the amount provided in grants and  
          contracts, they would be covered by the General Fund and student  
          fee revenue.
           
           COMMENTS  :  PERB's decision in Regents of the UC & Association of  








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          Student Employees, UAW, et al (1998) (PERB Order No. 1301-H)  
          determined that under the current statutory language, UC's  
          12,000 Teaching Assistants (TAs), Readers and Tutors had  
          bargaining rights because their employment is not contingent  
          upon their status as students, but GSRs did not.  Student  
          employees equivalent to GSRs at CSU are covered under HEERA by a  
          voluntary agreement with CSU.  According to the author, GSRs  
          "work at UC for 5 to 10 years while pursuing degrees.  They  
          frequently move in and out of the TA bargaining unit, since they  
          are often employed as both teaching and research assistants.   
          The movement between these jobs creates a lack of continuity.   
          When student employees work as GSRs their contractual rights for  
          workload protections, job security, grievance and arbitration  
          procedures, family leave and other rights disappears.  This bill  
          extends the right for the 14,000 GSRs at UC to choose to bargain  
          collectively under HEERA.  SB 259 (Hancock) of 2012, was  
          substantially similar to this bill.  SB 259 was approved by the  
          Legislature but subsequently vetoed by the Governor.
           

          Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916)  
          319-3960 


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