BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 561 (Campos) - Agricultural labor relations.
          
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          |Version: June 23, 2015          |Policy Vote: L. & I.R. 4 - 1    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 17, 2015   |Consultant: Robert Ingenito     |
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          This bill meets the criteria for referral to the Suspense File.




          


          Bill  
          Summary: AB 561 would (1) create an expedited process from the  
          enforcement of monetary penalties ordered by the Agricultural  
          Labor Relations Board (ALRB), and (2) require agricultural  
          employers to post a bond, as specified, if they wish to appeal a  
          final order.


          Fiscal  
          Impact: ALRB indicates that it would incur annual General Fund  
          costs of $2 million to implement the provisions of the bill (see  
          Staff Comments).


          Background:  Current law establishes the Agricultural Labor Relations Act  







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          (ALRA), which delineates the rights of California farm workers.  
          The ALRA states it is the policy of the State to (1) protect the  
          right of farm workers to act together to help themselves, (2)  
          engage in union organizational activity, and (3) 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. Current law requires  
          that if ALRB rules that any person has engaged in or is engaging  
          in any specified unfair labor practice, it must issue an order  
          requiring such person to cease and desist from such unfair labor  
          practice and to take affirmative action, which may include (1)  
          reinstatement of employees with or without backpay, and (2)  
          making employees whole, when the board deems such relief  
          appropriate, for the loss of pay resulting from the employer's  
          refusal to bargain.  


          Proposed Law:  
          This bill would do the following:
                 Provide that within one year of an order of the ALRB  
               finding liability for a makewhole award, back pay  
               calculation, or other monetary award to employees, the ALRB  
               and general counsel shall process any compliance decision  
               concerning the award to final board order.


                 Provide that, if the ALRB finds liability as discussed  
               above but requires a compliance proceeding to determine  
               monetary damages, then the ALRB order must be processed as  
               a final board order within one year of the date when a  
               board order concerning liability becomes final because no  
               appeal was sought or the date when a reviewing court  
               dismisses an employer's appeal or decides in favor of the  
               board concerning the employer's liability. 


                 Provide that, if the if an employer's liability and  
               compliance proceedings are consolidated, the ALRB must act  
               reasonably and without delay in reaching a final decision  
               concerning the liability and amounts owed to workers.


                 Require an employer who petitions for a writ of review  
               or otherwise appeals or seeks to overturn or stay any order  








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               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.


                 Require that the bond discussed above must be an appeal  
               bond issued by a licensed surety or a cash deposit with the  
               ALRB in the amount of the order, decision, or award. The  
               bond must be on the condition that, if any judgment is  
               entered against the employer, the employer shall pay the  
               amount owed pursuant to the judgment, and if the appeal is  
               withdrawn or dismissed without entry of judgment, the  
               employer shall pay the amount owed pursuant to the order,  
               decision, or award of the board unless the parties have  
               executed a settlement agreement for payment of some other  
               amount.


                 Require that, for an ALRB order regarding mandatory  
               mediation and conciliation procedures, the ALRB must fix  
               the bond amount by reasonably determining the entire  
               economic value of the terms, conditions, and benefits of  
               the ordered collective bargaining agreement based upon  
               submissions from the parties and a recommended finding from  
               the assigned mediator in the case.




          Related  
          Legislation: SB 126 (Steinberg), Chapter 697, Statutes of 2011,  
          empowers ALRB to require an employer to bargain with a labor  
          organization if that employer is guilty of significant  
          misconduct during a secret ballot election for union  
          representation.


          Staff  
          Comments: This bill would create an expedited process that will  
          help aggrieved farmworkers recover the back pay and benefits  
          that they are owed, and appears to be largely driven by one  








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          dispute dating back to the late 1980s. 
          ALRB administrative would incur annual costs of approximately $2  
          million to create the expedited process. A total of eleven  
          positions would be needed (three of which would reflect the  
          conversion of existing positions limited-term to full time).  
          Just over half would be legal staff, with the remainder would be  
          compliance officers, field examiners, and analytical staff. 


          Staff notes that the enacted 2015-16 state budget provides ALRB  
          with $3.5 million in additional funding (and nearly 20  
          positions) over the 2013-14 level. The extent to which these new  
          resources may be able to absorb some of the workload required of  
          this bill is unclear.







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