BILL ANALYSIS Ó AB 2753 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT, AND SOCIAL SECURITY Rob Bonta, Chair AB 2753 (Grove) - As Introduced February 19, 2016 SUBJECT: Public employment: employee bargaining representatives: financial information SUMMARY: Requires, by January 1, 2017, a public employee labor organization to post an itemized version of its budget on its Internet Web site, to provide each member of the organization easy access to it, and to respond to members' questions regarding organizational financial issues within a reasonable time. Specifically, this bill: 1)Requires a public employee organization that provides representation to public employees in labor negotiations with a public employer to place an itemized version of its budget on its Internet Web site by January 1, 2017, and to provide each member of the organization with easy access to it. 2)Requires the budget to be updated on an ongoing basis. 3)Requires a public employee organization to provide its members with a means of asking questions about financial issues related to the organization and specifies that members will AB 2753 Page 2 have the right to receive a response to their questions, in writing if requested, within a reasonable time. 4)Defines "public employer" as any public employer subject to the Meyers-Milias-Brown Act (MMBA), the State Employer-Employee Relations Act, known as the Ralph C. Dills Act (Dills Act), the Excluded Employees Bill of Rights, the Educational Employment Relations Act (EERA), the Higher Education Employer-Employee Relations Act (HEERA), the Trial Court Employment Protection and Governance Act (Trial Court Act), the Trial Court Interpreter Employment and Labor Relations Act (Court Interpreter Act), and the Los Angeles County Metropolitan Transportation Authority Transit Employer-Employee Relations Act (TEERA). FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS: According to the author, "Public employee union members should have the right to access and review how their union dues are being spent by union representatives." According to supporters, "Numerous times over the years, fiscally prudent members of SEIU Local 1000 and other unions have made a simple request: they want to know how the union spends tens of millions of dollars of member dues annually. As it is their money, they deserve to know how it is spent. An itemized budget posed online or in an accessible place seems like a basic level of transparency that most corporations would provide its shareholder. The same should be true of unions. It is frustrating that even after members filed a lawsuit against their union that this information still was not forthcoming." AB 2753 Page 3 Opponents state, "This bill is focused neither on transparency nor empowerment, and rather is a misguided attempt to impose unnecessary, overly burdensome, and duplicative requirements on labor unions, while simultaneously vilifying both public sector employees and the unions that represent them. Public sector unions are subject to a level of scrutiny un-paralleled by any other non-public entity; yet this bill fails to impose similar requirements on corporate entities, many of which are in desperate need of this type of transparency (from which corporate shareholders would surely benefit.) It should be noted that out-of-state pro-corporate interest groups have promoted similar measures around the country in an attempt to 'de-fund the unions.'" Opponents conclude, "Even more troubling, AB 2753 seeks to impose the legislative process and waste taxpayer dollars in order to force a specific outcome in lieu of the democratic process available to all union members to resolve differences. Any effort by the Legislature to force specific outcomes in any dispute resolution represents a dangerous precedent." REGISTERED SUPPORT / OPPOSITION: Support AB 2753 Page 4 Howard Jarvis Taxpayers Association Opposition American Federation of State, County and Municipal Employees Association for Deputy District Attorneys Association for Los Angeles Deputy Sheriffs California Association of Highway Patrolmen California Association of Professional Employees California Association of Professional Scientists California Conference Board of the Amalgamated Transit Union California Conference of Machinists California Correctional Peace Officers Association California Federation of Teachers California Labor Federation AB 2753 Page 5 California Professional Firefighters California School Employees Association California Teachers Association California Teamsters Public Affairs Council Engineers and Scientists of CA, IFPTE Local 20, AFL-CIO LIUNA Locals 777 & 792 Los Angeles County Deputy Probation Officers' Union, AFSCME, Local 685 Los Angeles County Professional Peace Officers Association Los Angeles Police Protective League Orange County Employees Association Organization of SMUD Employees Peace Officers Research Association of California AB 2753 Page 6 Professional and Technical Engineers, IFPTE Local 21, AFL-CIO Professional Engineers in California Government Riverside Sheriffs Association San Diego County Court Employee Association San Luis Obispo County Employees Association Service Employees International Union UDW/AFSCME Local 3930 Analysis Prepared by:Karon Green / P.E.,R., & S.S. / (916) 319-3957