BILL ANALYSIS SB 402 Page 1 Date of Hearing: June 30, 1999 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL SECURITY Lou Correa, Chair SB 402 (Burton & Villaraigosa) - As Amended: June 28, 1999 SENATE VOTE : 23-14 SUBJECT : Employer-employee relations: law enforcement officers and firefighters. SUMMARY : Provides final and binding arbitration of any matter in dispute (within the scope of bargaining under the various existing state and local acts) between any public employer in California (including the state) and employee organizations representing its firefighters or law enforcement employees. Specifically, this bill : 1)Establishes in the Code of Civil Procedure Title 9.5, "Arbitration of Firefighter and Law Enforcement Officer Labor Disputes". 2)Provides statutory legislative findings and declarations regarding the need for the arbitration procedures proposed by this bill stating, in part, that strikes taken by firefighters and law enforcement officers against public employers are a matter of statewide concern and are not in the public interest. Additionally, the legislative findings and declarations state that the dispute resolution procedures contained in this bill provide the appropriate method for resolving public sector labor disputes that would otherwise lead to strikes by firefighters or law enforcement officers. Finally, the bill states that it is not the intent of the Legislature to alter the scope of issues subject to collective bargaining in this bill. 3)Provides that if an impasse has been declared after the representatives of an employer and firefighters or law enforcement officers have exhausted their mutual efforts to reach agreement over wages, hours, and other terms and conditions of employment and if the parties are unable to agree to the appointment of a mediator, or the mediator appointed is unable to effect settlement, the employee organization may request, in writing to the employer, that SB 402 Page 2 their differences be submitted to an arbitration panel. 4)Provides for a 3-member arbitration panel, with one member chosen by each of the parties and the third (who serves as Chair) picked by the first two members. If the parties are unable to pick a third person, the mediator may serve as chairperson. If the mediator is unable or unwilling to serve as chairperson, the bill provides a process for choosing a person to service as Chair culminating in the submission of an odd-numbered list of names by either the American Arbitration Association or the California State Mediation and Conciliation Service. The list is then subjected to the striking of names by both parties until only one name remains and that person is appointed to serve as Chair. 5)Provides that if, during the dispute resolution process, any employee willfully engages in a strike against the employer that endangers public safety will be dismissed from employment and may not be rehired except as a new employee. 6)Requires the arbitration panel to meet within 10 days of its establishment, or any other period to which the parties agree, to begin their investigation or to take any other action that they deem appropriate. 7)Provides that the arbitration panel may administer oaths, and subpoena both witnesses and any information relating to the subject in dispute. 8)Requires that, five days prior to the beginning of the arbitration panel hearings, parties must submit the last best offer of settlement on those issues not previously agreed to by the parties prior to arbitration. 9)Provides that the arbitration panel, within 30 days after conclusion of the hearing, will decide the disputed issues by selecting the last best offer package the most nearly complies with certain factors specified in the bill. 10)Provides that the parties shall receive a copy of the decision and have 5 days before the decision is made public and binding to meet and attempt to resolve their differences and, by mutual agreement, amend or modify the arbitration panel's decision. SB 402 Page 3 11)Provides that the provisions of this bill shall not apply to city or county employer governed by a charter that was amended prior to January 1, 2000, to incorporate local arbitration provisions. (The Committee is advised that 19 charter cities, one county and one city and county have opted to provide local arbitration procedures.) 12)Provides that the costs of the arbitration proceeding and the expenses of the arbitration panel (except for those of the employer representative) will be borne by the employee organization unless otherwise agreed to by the parties. 13)Makes legislative findings and declarations that the duties of local agency employer representatives under this bill are substantially similar to the duties required under current law and, therefore, the costs incurred by a local agency in performing those duties are not reimbursable state-mandated costs. EXISTING LAW provides, under the Meyers-Milias-Brown Act, the statutory framework for labor relations between all local public employers and their employees and permits, but does not require, the mediation of disputes between these parties. Existing law also provides, under the Ralph C. Dills State Employer-Employee Relations Act, the statutory framework for labor relations between the State of California and its employees and permits, but does not require, the arbitration of disputes between these parties. FISCAL EFFECT : Unknown COMMENTS : According to the author, "More than two dozen states require arbitration as a means to resolve public employee collective bargaining disputes, and arbitration has been used in California cities since 1970. Currently, 21 local agencies impose arbitration to assure that fair negotiations take place; and these arbitration procedures have been 100% effective in preventing firefighter and law enforcement officer strikes in California. This bill provides a "final offer" arbitration procedure for employers and public safety employees; and it is initiated only after an impasse has been declared - where all efforts to reach a collective bargaining agreement have failed?Employer administered discipline and "community-oriented policing" policies are specifically exempted from this bill. SB 402 Page 4 The arbitration panel must limit its arbitration award to only those issues that (1) were made as a proposal or counter-proposal in bargaining; (2) have not been previously agreed to in bargaining; and (3) do not infringe upon employer managerial policy decision making. The arbitration panel must choose the "last best offer" submitted by the two parties that most nearly complies with the standards of fairness, which assures that the award will not place a financial strain on the public purse. This bill encourages both sides to be more realistic and honest in their demands at the bargaining table. This bill is a fair and peaceful way to resolve bargaining disputes, while protecting the welfare of the public with tough strike sanctions." Cities in opposition argue that this bill mandates a system of compulsory and binding arbitration for the resolution of collective bargaining disputes/impasse for police and fire employees. They contend that this bill would severely damage local government's ability to fairly negotiate with public safety bargaining units. Cities continue that they have long opposed compulsory and binding arbitration as a means to settle collective bargaining disputes, and that there is no circumstance under which compulsory and binding arbitration is acceptable as an impasse remedy. They state it disenfranchises the voters from their elected officials by removing their budget authority over police and fire services and giving it to an outside arbitrator who is not accountable to the citizens. The American Civil Liberties Union opposes the bill unless it is amended to apply only to wages, benefits, hours and other economic issues. They believe that including "working conditions" in the bill "interferes with the public's ability to oversee, control, and set priorities for their police forces." REGISTERED SUPPORT / OPPOSITION : Support California Association of Highway Patrolmen (co-sponsor) California Department of Forestry Firefighters (co-sponsor) California Professional Firefighters (co-sponsor) Peace Officers Research Association of California (co-sponsor) Orange County Employees' Association (co-sponsor) California State Firefighters' Association (co-sponsor) Alhambra Firefighters Association SB 402 Page 5 Alpine Firefighters Association, Local 2638 Association for Los Angeles Deputy Sheriffs, Inc. Berkeley Firefighters Association, Local 1227 Beverly Hills Police Officers Association California Association of State Investigators - Alcoholic Beverage Control California Correctional Supervisors Organization California Independent Public Employees Legislative Council California Labor Federation, AFL-CIO California Organization of Police and Sheriffs California State Firefighters' Association, Inc. California Teamsters Public Affairs Council Cathedral City Firefighters, Local 3654 CDF Firefighters, Local 2881 City of Vallejo Congress of California Seniors Consumer Federation of California Councilmember, City of Fairfax Deputy Sheriff, San Bernardino County Deputy Sheriffs' Association of San Diego County Downey Firemen's Association, IAFF Local 3473 Eureka Fire Fighters Local No. 652 Federal Firefighters Association, IAFF Local F 85 Firefighters of San Joaquin County Glendale Fire Fighters' Association Hayward Firefighters Healdsburg Fire Department Hemet City Firefighters Association Hermosa Beach Firefighters Association Humboldt Firefighters IAFF Local 1770 IAFF Local F-57 International Association of Fire Fighters International Association of Fire Fighters Local 55 Johan Klehs, Chair, State Board of Equalization Kern County Fire Fighters Union, Inc., Local 1301 L.A. County Probation Officers Union Laguna Beach Firefighters Association IAFF 3684 LaHabra Firefighters IAFF Local 1968 Long Beach Firefighters, Local 372 Los Angeles County Professional Peace Officers Association Los Angeles Police Protective League Marin County Deputy Sheriff's Association Marin Professional Firefighters Marshals Association of California Mayor, Town of San Anselmo SB 402 Page 6 Menlo Park Firefighters Association Montclair Firefighter's Local 3608 Mountain View Professional Firefighters, IAFF Local 1965 Napa City Firefighters, Local 3124 Nevada County Professional Firefighters Newport Beach Firefighters Association, Local 3734 Orange City Fire Fighters, Local 384 Orange County Professional Firefighters Association, IAFF Local 3631 Oxnard Firefighters, IAFF Local 1684 Pasadena Fire Fighters, Local No. 809 Pasadena Firefighter Association Redlands Professional Firefighters Rohnert Park Peace Officers Association Sacramento Area Fire Fighters, Local 522 San Anselmo Town Council San Bernardino City Professional Firefighters, Local 891 San Bernardino County Safety Employees Association San Diego City Fire Fighters San Diego County Public Assistance Fraud Investigator's Association San Diego Police Officers Association San Francisco Fire Fighters, Local 798 San Francisco Police Officers' Association San Joaquin County Deputy Sheriffs Association San Jose Firefighters, Local 230 San Luis Obispo Firefighters Association San Mateo County Firefighters San Miguel Professional Firefighters, Local 1434 San Ramon Valley Firefighter, Local 3546 Santa Clara County Fire Firefighters Santa Clara County Firefighters, Local 1165 Santa Paula Police Officer's Association Santa Rosa Firefighters, Local 1401 Southern California Alliance of Law Enforcement Stockton Professional Firefighters, IAFF Local 456 The Paradise Police Officers' Association Torrance Firefighters Association, IAFF Local 1138 United Fire Fighters of Lodi United Professional Firefighters, IAFF Local 1230 Vacaville Fire Department Vallejo Fire Fighters, Local 1186 Vallejo Police Association Opposition SB 402 Page 7 Alameda County Sheriff's Department American Civil Liberties Union California Peace Officers' Association California Police Chiefs Association California State Association of Counties California State Sheriffs' Association California Taxpayers' Association City of Albany City of Anaheim City of Arcadia City of Bellflower City of Benicia City of Brea City of Carlsbad City of Cerritos City of Chula Vista City of Fairfield City of Foster City City of Fullerton City of Garden Grove City of Indio City of Laguna Beach City of Lakewood City of Los Angeles City of Moreno Valley City of Morro Bay City of Porterville City of Redding City of Roseville City of San Clemente City of Santa Ana City of Santa Barbara City of Santa Maria City of Stockton City of Sunnyvale City of Taft City of Thousand Oaks City of Turlock City of Ventura City of Vernon City of Victorville City of West Sacramento County of San Bernardino Fresno County Board of Supervisors SB 402 Page 8 League of California Cities Los Angeles County Board of Supervisors Los Angeles Police Department Orange County Board of Supervisors Santa Barbara County Sutter County Sheriff Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)319-3957