BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 561


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          Date of Hearing:  April 29, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          561 (Campos) - As Amended April 14, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:  


          This bill makes changes to the Agricultural Labor Relations Act.  
          Specifically, this bill:  










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          1)Provides that within one year of an order of the Agricultural  
            Labor Relations Board (ALRB) finding liability for a makewhole  
            award, backpay calculation, or other monetary award to  
            employees, the ALRB and general counsel shall process any  
            compliance decision concerning the award to final ALRB order.


          2)Requires an employer who petitions for a writ of review or  
            otherwise appeals or seeks to overturn or stay any order of  
            the ALRB to post a bond, in the amount of the entire economic  
            value of the order as determined by the ALRB, to ensure that  
            employees receive the benefits of the order if the employer  
            does not prevail.  The ALRB shall reasonably determine the  
            entire economic value of the order based on submissions from  
            the parties. 


          FISCAL EFFECT:  


          1)General Fund administrative costs of approximately $1.3  
            million for a compliance unit in each of the five field  
            offices to process compliance decisions within one year of an  
            order for a makewhole award, backpay calculation or other  
            monetary award.


          2)General Fund administrative costs of approximately $500,000  
            for the ALRB to process compliance decisions.


            The Governor's January budget proposes $1.627 million (General  
            Fund) and 13 positions to support and expand the Agricultural  
            Labor Relations Board services to farmworkers, improve the  
            timeliness of hearings, and increase efficiency and  
            accountability. It is not clear to what extent these new  
            resources may be able to absorb some of the workload required  
            pursuant to this bill.  









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          COMMENTS:  


          1)Background. Existing law establishes the Agricultural Labor  
            Relations Act (ALRA), which delineates the rights of  
            California farm workers. The ALRA states it is the policy of  
            the state to protect the right of farm workers to act together  
            to help themselves; to engage in union organizational  
            activity; and to select their own representatives for the  
            purpose of bargaining with their employer for a contract  
            covering their wages, hours, and working conditions.  The ALRA  
            is enforced by ALRB.  


            Two cases associated with the organization of farmworkers at  
            specific companies have moved through the regulatory and civil  
            court process since 1989.  Specifically, farmworkers employed  
            by the Ace Tomato Company and the San Joaquin Tomato Growers  
            Inc. went out on strike to protest pay and working conditions.  
             They also demanded union representation.  What followed is an  
            extremely complex adjudication process involving both the ALRB  
            and the civil courts, a process that is not yet completely  
            resolved.


            On September 11, 2013, after over two decades of adjudication,  
            the ALRB General Counsel released a press release announcing a  
            $1.05 million dollar global settlement in the Ace Tomato case.  
             Of the settlement, $300,000 was proposed to be dedicated to  
            several non-profit organizations to be used for programs that  
            benefit the children of farm workers. The proposed agreement,  
            however, was subject to the approval of the ALRB. The ALRB had  
            concerns with the $300,000 because it did not directly benefit  
            the agricultural employees actually affected by the alleged  
            failure to give notice and bargain. 


            The ALRB granted conditional approval, however, the settlement  








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            agreement was never finalized by the parties, resulting in  
            additional litigation.  Subsequently, disputes have occurred  
            between the ALRB and the General Counsel regarding who had the  
            authority and responsibility to litigate the case further.  In  
            a series of decisions, the ALRB indicated that the Regional  
            Director of the ALRB, not the General Counsel, had such  
            responsibility.


            Recently, the case was back before an Administrative Law Judge  
            for several days of hearing to determine the amount of the  
            makewhole award.  It may take several months for the  
            Administrative Law Judge to render a decision.


          2)Purpose. The United Farm Workers (UFW) is sponsoring this bill  
            to create an expedited process to help recover back pay and  
            benefits owed to farm workers and their families.   
            Specifically, this bill:


             a)   Provides that within one year of an order of the ALRB  
               finding liability for a makewhole award, backpay  
               calculation, or other monetary award to employees, the ALRB  
               and General Counsel shall process any compliance decision  
               concerning the award to final board order.


             b)   Requires an employer who petitions for a writ of review  
               or otherwise appeals or seeks to overturn or stay any order  
               of the ALRB to post a bond, in the amount of the entire  
               economic value of the order as determined by the ALRB, to  
               ensure that employees receive the benefits of the order if  
               the employer does not prevail.  The ALRB shall reasonably  
               determine the entire economic value of the order based on  
               submissions from the parties.


          3)Opposition. A large coalition of agricultural employers  








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            opposes this measure, stating concerns with the requirement  
            that an employer seeking a writ of review of any Board  
            decision to first post a bond in the amount of the entire  
            economic value of the order as determined by the Board.  Such  
            a requirement, they argue, could deter many employers from  
            seeking their right to appeal.  Further, they contend that, in  
            many cases, the entire economic value of the order cannot be  
            known, or is in dispute, which would limit the possibility of  
            obtaining a bond.  


          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081