BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 402
                                                                  Page  1

          SENATE THIRD READING
          SB 402 (Burton)
          As Amended June 29, 2000
          Majority vote

           SENATE VOTE  :23-14  
           
           PUBLIC EMPLOYEES    6-0         APPROPRIATIONS      14-7        
           
           ----------------------------------------------------------------- 
          |Ayes:|Correa, Dutra, Firebaugh, |Ayes:|Migden, Cedillo, Davis,   |
          |     |Honda, Knox, Pescetti     |     |Hertzberg, Kuehl, Papan,  |
          |     |                          |     |Romero, Keeley,           |
          |     |                          |     |Steinberg, Thomson,       |
          |     |                          |     |Wesson, Wiggins, Wright   |
          |     |                          |     |R., Aroner,               |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Brewer, Ackerman,         |
          |     |                          |     |Ashburn, Campbell,        |
          |     |                          |     |Maldonado, Runner, Zettel |
           ----------------------------------------------------------------- 
           
          SUMMARY  :   Provides final and binding arbitration of disputes  
          regarding wages, hours, and other terms and conditions of  
          employment within the scope of arbitration between any local  
          agency employer and employee organizations representing its  
          firefighter 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 that this title apply to any law enforcement  








                                                                  SB 402
                                                                  Page  2

            policy that pertains to how law enforcement officers interact  
            with members of the public or pertains to police community  
            relations.

          3)Defines "scope of arbitration" for purposes of the bill as  
            limited to only those issues that are within the scope of  
            representation as defined in Government Code section 3504  
            (which includes all matters relating to employment conditions  
            and employer-employee relations, including but not limited to,  
            wages, hours, and other conditions of employment).   
            Additionally, the definition excludes from the scope of  
            arbitration any issue that is protected by what is commonly  
            referred to as the "management rights" clause of section 3504  
            (which specifies that the scope of representation shall not  
            include consideration of the merits, necessity, or  
            organization of any service or activity provided by law or  
            executive order).

          4)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 within the scope or arbitration 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 their differences be submitted to an  
            arbitration panel.

          5)Provides for a three-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.

          6)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  








                                                                  SB 402
                                                                  Page  3

            and may not be rehired except as a new employee.

          7)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.

          8)Provides that the arbitration panel may administer oaths, and  
            subpoena both witnesses and any information relating to the  
            subject in dispute.

          9)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.

          10)Establishes a process whereby the chief law enforcement  
            officer of an employer, prior to the start of the arbitration  
            hearing may remove from consideration any issue included as  
            part of a last best offer based upon the fact that it would  
            bar hi or her ability to protect the public.

          11)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.

          12)Provides that the parties shall receive a copy of the  
            decision and have five 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.

          13)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.)

          14)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.









                                                                  SB 402
                                                                  Page  4

          15)Specifies that the provisions of this bill will "sunset" as  
            of January 1, 2005.

          16)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:

          1)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.

          2)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.   
          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  








                                                                  SB 402
                                                                  Page  5

          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.


           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957 
                                                               FN: 0005463