BILL ANALYSIS                                                                                                                                                                                                    






               Senate Committee on Labor and Industrial Relations
                             Richard Alarcon, Chair

          Date of Hearing: June 27, 2001       2001-2002 Regular  
          Session                              
          Consultant: Patrick W. Henning       Fiscal: No
                                               Urgency:No
          
                                Bill No: AB 230
                                Author: Goldberg
                             Amended: June 11, 2001
          

          Subject:  

          Classified Employees: Permissive arbitration.

          Purpose:
          
          To permit school districts and community colleges, that  
          have not adopted a civil service merit system for its  
          classified employees, to submit employee disciplinary cases  
          to third party arbitration, except for peace officers.

          Analysis:
          
           Existing law  provides that governing boards of school  
          districts or community colleges may adopt a merit system  
          (i.e., civil service system) for its classified employees,  
          establishing, among other things, a personnel commission  
          and a framework for testing the merit and fitness of  
          employees.  A personnel commission may delegate its  
          personnel management over disciplinary matters to a hearing  
          officer to conduct a hearing on the merits of the case and  
          issue a recommendation to the commission.

          Governing boards that have not adopted a merit system for  
          personnel management of classified employees are permitted  
          to delegate authority to a third party for the resolution  
          grievances of classified employee, but not in disciplinary  
          cases.   

           This Bill  would permit governing boards of non-merit school  
          districts and community colleges, pursuant to the terms of  
          a collective bargaining agreement with an employee  
          organization, to delegate the decision on discipline of  









          classified employees to binding or non-binding arbitration.  
           Disputes regarding school peace officer discipline would  
          be exempted.

          Comments:
          
          1.   Proponents  state that this measure simply makes it  
          permissive for school districts to delegate the decision on  
          discipline of classified employees to arbitration.  It does  
          not mandate arbitration.  It does leave such a decision to  
          the local school board.  Since discipline cases can be very  
          sensitive, many governing boards may prefer to use a  
          professional arbitrator, rather than acting as a  
          specialized judge in complicated personnel cases.  Also,  
          utilization of the arbitration process has been found to  
          reduce personnel costs.

          Supporters also note that every other public employer and  
          public employee in the state has that right.  Classified  
          employees are the only public employees who do not have a  
          right to bargain for third party appeals for discipline.

          2.   Opponents  argue that school district governing boards  
          are given the responsibility to determine discipline for  
          their classified employees and are held accountable for  
          their actions.  Districts need to retain a wide range of  
          authority in order to fully implement the state's  
          accountability objectives. Responsibilities should not be  
          delegated to an outside arbitrator that the local voting  
          populace can't hold accountable. 

          3.   Classified Service  :  School district employees in the  
          classified service are those not requiring specific  
          certificate qualification (i.e., teachers).  Such  
          occupations generally involve non-management positions in  
          transportation, food service, data processing, office and  
          clerical, instructional aid, athletic training, and  
          security.

          4.   Administrative and Court Decision  :  In 1984 the Public  
          Hearing Date:  June 27, 2001                             AB  
          230  
          Consultant: Patrick W. Henning                            
          Page 2

          Senate Committee on Labor and Industrial Relations 
          








          Employment Relations Board in  San Mateo City School  
          District v. PERB  [Decision #0383E] found that collective  
          bargaining contractual provisions could be negotiated that  
          included binding arbitration in discipline cases, and that  
          such action did not violate Education Code provisions  
          controlling classified employee service.  Later that same  
          year, the California Appeals Court in  United Steelworkers  
          v. Board of Education  [(1984) 162 Cal.App.3rd] ruled that  
          the Education Code prohibited a governing board from  
          delegating its exclusive authority to discipline classified  
          employees to binding arbitration.
           
          5.   Legislative History  :  This measure passed the Assembly  
            by a 53 to 20 vote.

          6.   Prior Legislation  :  This measure is similar to AB 378  
          (Steinberg) of 1999 which was vetoed by Governor Davis.  In  
          his veto message, the Governor stated, in part, that  
          "?(S)chool districts and community college districts should  
          retain the authority 
          granted under current law."  However, AB 378 also applied  
          to school districts with merit systems and did not exempt  
          school peace officers.
           
          Support:
          American Federation of State, County, and Municipal  
          Employees (Co-Sponsor)
          California School Employees Association (Co-Sponsor)
          California Labor Federation, AFL-CIO
          California Teachers Association
          California Teamsters Public Affairs Council

          Opposition:
          Association of California School Administrators
          California School Boards Association
          Community College League of California
          Five Individual letters.
          Hearing Date:  June 27, 2001                             AB  
          230  
          Consultant: Patrick W. Henning                            
          Page 3

          Senate Committee on Labor and Industrial Relations