BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 230
                                                                  Page  1

          Date of Hearing:   May 2, 2001

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY
                                 Sally Havice, Chair
                   AB 230 (Goldberg) - As Amended:  April 25, 2001
           
          SUBJECT  :   Classified employees.

           SUMMARY  :  Specifically,  this bill  enables school boards and  
          their classified employee representatives in non-merit school  
          districts to agree to binding arbitration on discipline and  
          termination matters and clarifies that merit school districts  
          are not precluded from negotiating a provision that makes the  
          findings and decisions of a hearing officer or other authorized  
          representative binding.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   This bill is similar to AB 378 (Steinberg) of 1999  
          which was vetoed by Governor Davis.  In his veto message, the  
          Governor stated, in part, that he saw "?no reason to alter the  
          current system of discipline in school and community college  
          districts with regard to classified employees.  School districts  
          and community college districts should retain the authority  
          granted under current law."  

          Similar legislation also includes AB 2018 (Margolin) of 1985, AB  
          2997 (Margolin) of 1986, and SB 383 (Johnston) of 1991 which  
          were all vetoed by Governor Wilson.

          A 1984 Public Employment Relations Board decision provided that  
          collective bargaining contracts could be negotiated that  
          included binding arbitration for discipline.

          The court of appeal later ruled that the Education Code  
          prohibits a school district governing board from delegating its  
          exclusive authority to discipline classified employees to  
          binding arbitration.

          This bill makes it permissive for school boards to delegate the  
          decision on discipline of non-merit school district classified  
          employees to binding arbitration.  The decision to use binding  
          arbitration would occur as a result of collective bargaining  
          negotiations.








                                                                  AB 230
                                                                  Page  2


          Supporters state that, "Third party arbitration systems have  
          been found to be effective.  Disciplinary cases can be very  
          sensitive and many school boards or local community college  
          districts may not have the expertise to hold hearings in cases  
          that entail complicated hearings, evidentiary rulings and  
          detailed testimony and on cases that may have political  
          overtones.  Moreover, school districts that utilize an  
          arbitration system (e.g., school districts with merit systems)  
          have been able to reduce the cost of personnel time."

          Supporters conclude that, "This measure does not mandate  
          arbitration, nor does it include arbitration for salaries,  
          contracts or any other matter than discipline.  Employees in  
          non-merit districts already have access to arbitration to  
          resolve grievances, this bill would only make it permissive for  
          bargaining units of classified employees to request binding  
          arbitration for disciplinary cases as well."

          Opponents state, "Currently, school district governing boards  
          are given the responsibility to determine discipline for their  
          classified employees.  Slowly but surely, school districts have  
          seen the erosion of their responsibilities pertaining to  
          employees."  Opponents conclude that they would remove their  
          opposition to this bill if it was amended to make a disciplinary  
          decision by an arbiter permissible.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County & Municipal Employees  
          (Sponsor)
          California School Employees Association (Co-sponsor)
          California Labor Federation
          California Teachers Association
          Orange County Central Labor Council

           Opposition 
           
          Association of California School Administrators
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. /  
          (916)319-3957