BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 707
                                                                  Page  1

          Date of Hearing:   April 17, 2001

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                Elaine Alquist, Chair
                 AB 707 (McLeod) - As Introduced:  February 22, 2001
           
          SUBJECT  :   Higher education labor relations:  mediation.

           SUMMARY  :  Defines an "employer" of a public institution of  
          higher education to include the governing boards and/or  
          administrations of all foundations, auxiliaries, and other  
          extension operations of the California State University (CSU).

          Specifically,  this bill  mandates that employees who now perform  
          work on behalf of CSU auxiliaries, extensions and foundations,  
          will, for the purposes of collective bargaining, be placed  in a  
          classification that makes them an employee of the CSU.  As a  
          result, these employees would fall under the protection of the  
          Higher Education Employer-Employee Relations Act (HEERA) and be  
          required to join a union representing their field/classification  
          or pay a fair share fee.

           EXISTING LAW  establishes HEERA serves as the framework for labor  
          relations within the CSU and the University of California.  The  
          Public Employees Relations Board has broad authority to enforce  
          HEERA.  As a part of a recent amendment to HEERA, employees of  
          CSU are required to either join the union of their respective  
          field or pay a fair share fee.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   Under current law, CSU has established many  
          foundations, auxiliaries and extension operations.  Examples of  
          these entities are as follows:

          1)Individual campus foundations which primarily handle  
            fundraising and management of campus endowments.

          2)Student body associations which represent students on various  
            campus boards and committees and participate in advocacy.

          3)Campus-based enterprises, such as campus bookstores,  
            cafeterias and radio stations.

          4)Specialized entities ranging from agricultural promotion to  








                                                                  AB 707
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            technological research.

          In most cases, persons who perform work for these entities are  
          not direct CSU employees, but are employees of the auxiliary  
          entity.  The governance structure of the auxiliaries may consist  
          of other outside interests, but by law CSU either controls the  
          entity directly or has a large presence in its governance.

          According to this bill's supporters, work being done by  
          employees of auxiliary organizations, notably CSU foundations,  
          is being performed under the auspices of CSU and is to the  
          benefit of CSU and its students.  In effect, the work is  
          distinguishable from the work of other CSU employees only by the  
          source of funding and the employee's inability to enjoy the  
          rights and protections of collective bargaining under HEERA.   
          Furthermore, supporters argue that the work is being performed  
          by employees who often report to CSU employees, and are integral  
          to the organizational structure and functioning of CSU. 

          Similar language passed out of the Committee on Higher Education  
          on April 25, 2000 as AB 1935 (Wildman).  This legislation was  
          amended repeatedly before becoming a study bill.  This bill was  
          vetoed, however CSU conducted a systemwide study, upon request  
          of Assemblymember Wildman, which followed the guidelines in AB  
          1935.

          This study found that "while auxiliaries include a core cadre of  
          permanent employees who occupy positions that may be  
          substantially similar to represented university employees; many  
          of the positions are funded externally through grants and  
          contracts for a specified period of time."

          Opponents of the legislation argue that employees of  
          auxiliaries, no matter the intent of their work, are not direct  
          employees of CSU and should not be treated as such. 

          The student body organizations are excluded from this  
          legislation, yet the California State  Student Association has  
          expressed concern over the fact that auxiliary organizations  
          currently funded by student fees are not excluded.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           








                                                                  AB 707
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          California State Employees Association (Sponsor)

           Opposition 
           
          Auxiliary Organizations Association
          California State Student Association
          California State University
           
          Analysis Prepared by  :    Paul Mitchell / HIGHER ED. / (916)  
          319-3960