BILL ANALYSIS                                                                                                                                                                                                    �






          SENATE PUBLIC EMPLOYMENT & RETIREMENT    BILL NO:  AB 501
          Gloria Negrete McLeod, Chair Hearing date:  June 27, 2011
          AB 501 (Campos)    as amended  4/06/11       FISCAL:  YES

           EDUCATIONAL EMPLOYMENT RELATIONS ACT:  EMPLOYEES COVERED 
          THEREUNDER
          
           HISTORY  :

              Sponsor:  California Federation of Teachers (CFT), 
          AFL-CIO
                   California School Employees Association (CSEA), 
                   AFL-CIO, Co-sponsor

              Prior legislation:  None


           ASSEMBLY VOTES  :

              PER & SS             4-2       3/30/11
              Appropriations       12-5      5/27/11
              Assembly Floor       51-27     5/31/11
           

          SUMMARY :

          For purposes of the Educational Employment Relations Act 
          (EERA), this bill would expand the definition of "exclusive 
          representative", and "public school employer" or "employer", 
          as specified.


           BACKGROUND AND ANALYSIS  :
          
           1)Existing law  :

             a)   establishes the EERA which provides a process by 
               which employees of the public schools and the community 
               colleges may select an exclusive representative to 
               represent them as part of a bargaining unit within their 
               district;

             b)   establishes the Public Employment Relations Board 
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          Date:  6/10/11                                         Page 1 










               (PERB) as the State agency that has broad authority to 
               enforce the EERA with regard to labor relations 
               activities between a public school and any person 
               (except management and confidential employees) employed 
               by a public school employer, including community 
               colleges;

             c)   defines "exclusive representative" for purpose of the 
               EERA as the employee organization recognized or 
               certified as the exclusive negotiating representative of 
               certificated or classified employees in an appropriate 
               unit of a public school employer;

             d)   defines "public school employer" for the purpose of 
               negotiations on collective bargaining agreements 
               covering public school employees, as the governing board 
               of a school district, a school district, a county board 
               of education, a county superintendent of schools, or 
               certain charter schools;

             e)   provides that, if authorized by their legislative or 
               other governing bodies, two or more public agencies 
               meeting specified conditions can enter into a joint 
               agreement thereby becoming a Joint Powers Agency (JPA), 
               which allows them to exercise powers common to the 
               contracting parties;

             f)   specifies that "public agency" includes, but is not 
               limited to, the federal government or any federal 
               department or agency, the state, another state or any 
               other state department or agency, a county, county board 
               of education, county superintendent of schools, city, 
               public corporation, public district, or regional 
               transportation commission of this or another state;

             g)   allows the governing board of a community college 
               district to establish auxiliary organizations for the 
               purpose of providing supportive services and specialized 
               programs for the general benefit of its college or 
               colleges, and

             h)   defines community college "auxiliary organization" to 
               include, but is not limited to entities created to 
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          Date:  6/10/11                                         Page 2 










               support, benefit, or promote a community college or 
               district, and which are under the governance of the 
               district or a district representative.
                
          2)This bill  :

             a)   clarifies that all public school employees have the 
               right to union representation by amending:

                i)  the definition of "exclusive representative" to 
                 mean the employee organization recognized or certified 
                 as the exclusive negotiating representative for all 
                 public school employees rather than certificated or 
                 classified employees, and

               ii)  the definition of "public school employer" or 
                 "employer" to include specified auxiliary 
                 organizations established by the California Community 
                 Colleges, and joint powers agencies that are comprised 
                 solely of school agencies, as specified.

           
          FISCAL  :

          According to the Assembly Appropriations Committee:

             1)   Annual state mandate reimbursement costs of $500,000 
               to $1 million, depending on how many JPAs engage in 
               collective bargaining under the bill.  State payments 
               count against the Proposition 98 guarantee.

             2)   Potential increased costs to school districts for 
               wages and benefit increases resulting from collective 
               bargaining agreements between JPAs and their employees.  
               These costs would not be reimbursable.

          The Assembly Appropriations Committee further notes that, "By 
          extending collective bargaining requirements to JPAs under 
          EERA, this bill would increase state costs through the 
          mandate reimbursement process.  According to the Department 
          of Education, there are 70 education-related JPAs in the 
          state, primarily for purposes of transportation and 
          vocational education services.  Assuming all of these JPAs 
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          Date:  6/10/11                                         Page 3 










          engaged in collective bargaining, costs of this bill could 
          reach approximately $1.5 million.  Many JPA employee groups, 
          however, are likely to forego EERA provisions given the 
          nature of the agreements reached with employers.  Assuming 
          half of all JPAs utilized EERA, statewide costs would be 
          approximately $750,000."
           

          COMMENTS  :

           1)Arguments in Support  

          According to the author:

               "This bill stems from two erroneous Public Employment 
               Relations Board (PERB) decisions that prevented the 
               organization of certain types of school employees, and 
               prevented the organization of employees of a JPA 
               comprised of public school entities.  In Castaic Union 
               School District v. CSEA (2010), the PERB drastically 
               narrowed the scope of public school employees covered by 
               the EERA and all of the rights afforded to them under 
               that statute.  PERB ruled that noon-time duty aides were 
               ineligible to receive representation rights because they 
               are neither certified nor classified public school 
               employees.  �Also in PERB's ruling], PERB ruled that, 
               prospectively, bargaining units including any such 
               employees must be denied, but that existing bargaining 
               units included these "excluded" employees are not 
               required to be modified.  The Castaic ruling will not 
               only adversely impact noon-duty aides, but is certain to 
               harm other public school and community college 
               employees."

            The author also points out that in San Jose/Evergreen 
            Community College District (2007), the PERB ruled that 
            employees of a JPA consisting of public schools were not 
            eligible for organization.  Here, school employees were 
            considered "public school employees" for purposes of the 
            EERA until the JPA was created, although they continued to 
            perform the same work.  This decision allowed districts to 
            circumvent the EERA and deny their employees union 
            representation.
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          Date:  6/10/11                                         Page 4 











            Finally, the author notes that "�This bill] would clarify 
            �existing law] to reflect the intention of the Legislature 
            that public school employees have a right to join �a] 
            representative organization of their own choice, and that 
            any person employed by a JPA that is composed of one or 
            more public school employers is a public school employee."

            Other proponents contend that the PERB's decision "were 
            wrongfully decided and present a dangerous precedent for 
            all employee organizations."

           2)Arguments in Opposition  

            According to opponents, by extending collective bargaining 
            requirements to JPAs, this bill would potentially increase 
            unreimbursable state costs to school districts for wage and 
            benefit increases resulting from collective bargaining 
            agreements between JPAs and their employees.  This bill 
            would also reduce student services, including cuts to 
            classroom programs that directly serve students, while 
            placing the welfare of the adults in the system over the 
            welfare of the students that they are charged with serving.

          3)   SUPPORT  :

            California Federation of Teachers (CFT), AFL-CIO, Sponsor
            California School Employees Association (CSEA), AFL-CIO, 
            Co-sponsor
            American Federation of State, County and Municipal 
            Employees (AFSCME), AFL-CIO
            California Labor Federation (CLF)
            California State Pipe Trades Council
            California Teachers Association (CTA)
            Coalition of California Utility Employees (CCUE)
            International Brotherhood of Electrical Workers (IBEW)
            International Union of Elevator Constructors (IUEC)
            Laborers' International Union of North America, Local 777
            Service Employees International Union (SEIU)
            Utility Workers Union of America (UWUA)
            Western States Council of Sheet Metal Workers

          4)   OPPOSITION  :
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          Date:  6/10/11                                         Page 5 











            California Association of School Business Officials (CASBO)
            California School Boards Association (CSBA)
            Riverside County School Superintendents' Association 
            (RCSSA)




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          Michael Bolden
          Date:  6/10/11                                         Page 6