BILL ANALYSIS                                                                                                                                                                                                    Ó



                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                             2015-2016  Regular  Session


          AB 874 (Santiago)
          Version: June 13, 2016
          Hearing Date:  June 21, 2016
          Fiscal: Yes
          Urgency: No
          ME


                                        SUBJECT
                                           
                      Collective bargaining:  Judicial Council

                                      DESCRIPTION  

          This bill would amend the Ralph C. Dills Act to make it  
          applicable to Judicial Council employees, thereby providing  
          Judicial Council employees the right to join an employee  
          organization and collectively bargain.  This right would extend  
          to all Judicial Council employees except managerial employees,  
          confidential employees, supervisory employees, government  
          affairs employees, and human resources employees.

                                      BACKGROUND  

          The California Constitution (Constitution) designates most State  
          employees as members of the Civil Service.   However, the  
          Constitution specifies that some State employees are "at will"  
          employees and not members of the civil service.  As an example,  
          legislative employees and Judicial Council employees are  
          excluded under the Constitution from civil service and are "at  
          will" employees.  Due to the Constitutional constraint, the  
          Legislature cannot convert Judicial Council employees into  
          members of the civil service.  However, the Legislature can  
          statutorily grant any "at will" public employees the right to  
          join an employee organization and collectively bargain.  

          The Ralph C. Dills Act (Dills Act) allows state executive branch  
          employees to bargain collectively for their wages, hours, and  
          terms and conditions of employment.  Under the Dills Act,  
          managers and confidential employees are not granted collective  
          bargaining rights.  This bill would make the Dills Act  
          applicable to Judicial Council employees, thereby providing  
          Judicial Council employees the right to join an employee  
          organization and collectively bargain with their employer--the  







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          Judicial Council.  Under the bill, the collective bargaining  
          rights would extend to all Judicial Council employees except  
          managerial employees, confidential employees, supervisory  
          employees, government affairs employees, and human resources  
          employees.

          This bill was heard in Senate Public Employment and Retirement  
          Committee on June 13 2016, and passed out of the Committee on a  
          3-2 vote.

                                CHANGES TO EXISTING LAW
           
           Existing law  provides that the civil service includes every  
          employee of the State except as provided in the Constitution.   
          (Cal. Const. art. 7, Sec. 1.)

           Existing law  exempts some State employees from the civil  
          service, including legislative employees and officers and  
          employees appointed or employees by councils, commissions or  
          public corporations in the judicial branch or by a court of  
          record or officer thereof.  (Cal. Const. art. 7, Sec. 4.)

           Existing law  , the Ralph C. Dills Act, provides rights of  
          collective bargaining for state employees, as defined, the  
          mechanism for exercising those rights, and the obligations of  
          the state employees, Governor, and employee organizations.   
          (Gov. Code Secs. 3512-3524.)

           Existing law  defines "state employees" for the purpose of the  
          Ralph C. Dills Act as any civil service employee of the state,  
          and the teaching staff or schools under the jurisdiction of the  
          State Department of Education or the Superintendent of Public  
          Instruction.  (Gov. Code Sec. 3513(c)(1).)

           Existing law  excludes the following from the definition of  
          "state employees" for the purposes of the Ralph C. Dills Act:
                 managerial, confidential, and supervisory employees;
                 employees of the Department of Human Resources;
                 professional employees of the Department of Finance  
               engaged in technical or analytical state budget preparation  
               other than the auditing staff;
                 professional employees in the Personnel/Payroll Services  
               Division of the Controller's office engaged in technical or  
               analytical duties in support of the state's personnel and  








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               payroll systems other than the training staff;
                  employees of the Legislative Counsel Bureau;
                  employees of the Bureau of State Audits;
                  employees of the office of the Inspector General;
                  employees of the board, conciliators employed by the  
               California State Mediation and Conciliation Service;
                  employees of the Office of the State Chief Information  
               Officer except as specified; and 
                 intermittent athletic inspectors who are employees of  
               the State Athletic Commission.  (Gov. Code Sec.  
               3513(c)(1).)

           Existing law  provides that state employees, as defined by the  
          Ralph C. Dills Act, have the right to form, join, and  
          participate in the activities of employee organizations of their  
          own choosing for the purpose of representation on all matters of  
          employer-employee relations.  (Gov. Code Sec. 3515.)

           Existing law  provides that employee organizations shall have the  
          right to represent their members in their employment relations  
          with the state, as specified.  (Gov. Code Sec. 3515.5.)

           Existing law  provides that the scope of representation shall be  
          limited to wages, hours, and other terms and conditions of  
          employment, as specified.  (Gov. Code Sec. 3515.6.)

           Existing law  provides that the Governor or his representative as  
          may be properly designated by law shall meet and confer in good  
          faith regarding wages, hours, and other terms and conditions of  
          employment with representatives of recognized employee  
          organizations, and shall consider fully such presentations as  
          are made by the employee organization on behalf of its members  
          prior to arriving at a determination of policy or course of  
          action.  (Gov. Code Sec. 3517.)

           Existing law  provides that the Governor and the recognized  
          employee organization shall jointly prepare a written memorandum  
          of understanding (MOU) when they reach agreement and shall  
          present the MOU to the Legislature for determination.  (Gov.  
          Code Sec. 3517.5.)

           Existing law  provides that if the Governor and employee  
          organization fail to reach an agreement within a reasonable  
          period of time, the Governor and the organization may agree upon  








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          the appointment of a mediator, as specified. (Gov. Code Sec.  
          3518.)

          This bill  extends the provisions of the Ralph C. Dills Act to  
          all Judicial Council employees, except managerial employees,  
          confidential employees, supervisory employees, employees in the  
          offices of human resources, and employees in the offices of  
          government affairs.

           This bill  clarifies that the provisions of the Ralph C. Dills  
          Act do not apply to judicial officers or employees of the  
          Supreme Court, the courts of appeal, or the Habeas Corpus  
          Resource Center.

           This bill  provides that the employer for purposes of bargaining  
          or meeting and conferring in good faith, for the Judicial  
          Council employees, means the Administrative Director of the  
          Courts, or his or her designated representatives, acting with  
          the authorization of the chairperson of the Judicial Council. 

           This bill  excludes the Judicial Council employee organization  
          and Administrative Director of the Courts or designated  
          representative from the requirement of preparing a written  
          memorandum of understanding (MOU) when they reach agreement and  
          from the requirement to present the MOU to the Legislature for  
          determination, and from other provisions related to the Ralph C.  
          Dills Act MOU requirement.  
           
          This bill  provides that the Judicial Council employees may not  
          be included in a bargaining unit that includes employees other  
          than those of the Judicial Council. 
                                        COMMENT
           
           1.Stated need for the bill
           
            According to the author:

             Since Judicial Council employees are expressly exempt from  
             state civil service rules by Article 7 Section 4(b) of the  
             California Constitution, the Dills Act does not confer  
             bargaining rights for Judicial Council employees.  As a  
             result, Judicial Council employees are not represented by  
             a union, but would like to be.  The Government Code cannot  
             be amended to make Judicial Council employees civil  








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             service employees due to the state's constitutional  
             prohibition.  However, the Dills Act can be amended to  
             confer bargaining rights to Judicial Council employees to  
             allow them union representation if they choose to.  Since  
             Judicial Council employees are state employees, the Dills  
             Act may be an appropriate framework for providing  
             collective bargaining rights.

           2.Judicial Council employees want the opportunity to organize  
            and collectively bargain 
           
          The Service Employees International Union (SEIU), Local 1000,  
          represents 95,000 public employees statewide and is the sponsor  
          of this bill.  According to the sponsor, "Judicial Council  
          employees approached [SEIU, Local 1000] asking the [union] to  
          represent them in bargaining."  SEIU, Local 1000 is sponsoring  
          this bill to allow the Judicial Council employees a path to  
          union representation if the "employees organize themselves and  
          choose to be represented."  According to the Judicial Council,  
          they have "adopted a neutral position on the policy of AB 874."  
          As currently drafted, this bill would exclude managerial  
          employees, confidential employees, and supervisory employees  
          from the Judicial Council employee bargaining unit.  Similarly,  
          under the Dills Act, managerial employees, confidential  
          employees, and supervisory employees are excluded from the state  
          employee bargaining units.   Staff notes that a typical agency  
          in the Executive branch would exempt managerial, confidential,  
          and supervisory employees from the bargaining unit.  Staff also  
          notes that California trial court employees are entitled to  
          collectively bargain under the Trial Court Employment Protection  
          and Governance Act.  (See Gov. Code Secs. 71600-71618.)

           3.The Bargaining Unit
           
          The author previously agreed to exclude employees in the  
          Judicial Council's offices of human resources and government  
          affairs from the bargaining unit.  However, the author reports  
          that after the most recent amendments SEIU Local 1000 and the  
          Judicial Council agreed to a bargaining unit that simply  
          excludes managerial, supervisorial, and confidential employees.   
          The agreement also allows the Judicial Council to designate the  
          confidential positions so long as the managerial, supervisory,  
          and confidential positions exempted do not exceed one-third of  
          the total permanent full-time Judicial Council employees.  The  








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          author proposes the following amendments to reflect the  
          agreement regarding the appropriate bargaining unit.

                Author's amendments:

                On page 4, in line 38, strike out "confidential  
                employee, or"

                On page 4, in line 39, after "supervisory employee"  
                insert:  "or a confidential employee as defined in (e)"

                On page 4, in line 40, strike out "include:" and insert  
                "include a"

                On page 5, in line 1, strike out "(A) A"

                On page 5, strike out lines 3, 4, and 5 entirely

                On page 5, after "Judicial Council." insert "(e) The  
                Judicial Council has the authority to designate state  
                employee positions and confidential positions.   
                Managerial, supervisory, and confidential positions  
                exempted under this provision shall not exceed one  
                third of the total permanent full-time Judicial Council  
                employees."


           Support  :  California Labor Federation 

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  American Federation of State, County and Municipal  
          Employees (AFSCME), AFL-CIO; Service Employees International  
          Union, Local 1000

           Related Pending Legislation  :  None Known

           Prior Legislation  :  AB 2381 (Hernández, 2012)  This bill would  
          have amended the Ralph C. Dills Act to make it applicable to  
          Judicial Council employees.  This bill was held in Senate Public  
          Employment and Retirement Committee. 









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           Prior Vote  :

          Senate Public Employment and Retirement Committee (Ayes 3, Noes  
          2)
          Assembly Floor (Ayes 52, Noes 25)
          Assembly Appropriations Committee (Ayes 12, Noes 5)
          Assembly Public Employees, Retirement/Soc Sec Committee (Ayes 6,  
          Noes 1)