BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 920
                                                                  Page  1

          Date of Hearing:   April 13, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

               AB 920 (Portantino) - As Introduced:  February 18, 2011 

          Policy Committee:                              PERS Vote:4-2

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          Enacts the Public Employees' Bill of Rights Act (PEBRA) which 
          provides various rights and protections to non-excluded state 
          civil service employees and requires that any adverse action 
          taken against a state employee be initiated and the 
          investigation completed within one year of the cause for 
          discipline.   Specifically, this bill: 

          1)Requires that all adverse actions be completed within one year 
            from the act that is the cause of the discipline.  Currently, 
            such actions must be started within three years of the cause 
            of the discipline or, in the case of fraud, embezzlement, or 
            falsification of records, from the discovery. 

          2)Specifies that a state civil service employee will have 
            priority in filling permanent, overtime, and on-call positions 
            over excluded employees and contractors. 

          3)Prohibits an employee's work from being standardized in 
            relation to a given period of time and prohibits an employee 
            from being compelled to perform extra work - including work 
            caused by vacancies, furloughs, or layoffs - without fair 
            compensation. 

          4)Establishes specific rights for professionally licensed state 
            employees, including a prohibition against an unlicensed 
            supervisor infringing on the judgment of a licensed employee 
            with regard to his or her work product. 

          5)States that a grievance filed by an employee not responded to 
            within the timeframes established by the governing MOU is 
            resolved in favor of the employee. 








                                                                  AB 920
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           FISCAL EFFECT  

          1)Significant costs, in the range of $500,000 annually 
            statewide, for employers to deal with shortened timeframes for 
            adverse actions. 

          2)Unknown, potentially significant losses to the extent the bill 
            precludes the state from launching investigations of 
            embezzlement in cases where discovery occurs after the new 
            one-year limitation. 

          3)Several of the provisions, including those giving civil 
            service employees priority in filling overtime and on-call 
            positions, and those prohibiting employers from compelling 
            employees to perform extra work without fair compensation, 
            could be interpreted in ways that raise wage and overtime 
            costs significantly.  Actual costs are unknown, but if these 
            provisions were to raise overall compensation costs by one 
            percent, the state's annual wage costs would increase $100 
            million.

           COMMENTS 

           1)Rationale.   According to the findings and declarations 
            contained in the bill, the purpose of the legislation is to 
            "?inform public employees of their rights and terms of 
            employment, and to inspire dedicated service and promote 
            harmonious personnel relations between public employees and 
            their employer." 

           2)Background.   Existing law includes numerous provisions 
            defining the rights of employers and public employees in the 
            workplace.  It also establishes collective bargaining for most 
            non-managerial employees, where terms and conditions of 
            employment are subject to negotiations between the employer 
            and the employees' exclusive representative. 

            Current law authorizes an appointing power to take adverse 
            action against an employee for specified causes, and 
            establishes administrative procedures for review of an adverse 
            action by the State Personnel Board.  An adverse action is 
            required to commence within three years of the cause for 
            discipline, or in the case of fraud, embezzlement or 
            falsification, three years after the discovery of the 








                                                                  AB 920
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            activity.  Current law also provides for enhanced rights and 
            protections for public safety officers and firefighters, 
            reflecting circumstances particular to their jobs.  These 
            include tighter timeframes for employers to commence adverse 
            actions. 

           3)Issues  . This bill raises important issues, including: 

               a)     Places in law new employee rights and other 
                 provisions that are normally subject to collective 
                 bargaining.  
               b)     Repeats protections and rights found elsewhere in 
                 law.
               c)     Shortens the period for beginning an adverse action 
                 from three years to one year. 
               d)     Shortens the period for commencing an adverse action 
                 based on fraud, embezzlement, or the falsification of 
                 records, from three years dating from the  discovery  of 
                 the misconduct to one year dating from when the 
                 misconduct  occurred  .  For these offenses, the difference 
                 is crucial since serious misconduct relating to fraud or 
                 embezzlement is often not discovered immediately, but 
                 rather through audits and financial reviews.  The 
                 elimination of the current three-years from time of 
                 discovery for fraud or embezzlement cases would reduce 
                 the chances for the state to bring an adverse action on 
                 these serious cases.
               e)     Grants priority to state employees in filling 
                 permanent, overtime and on-call positions over excluded 
                 employees and contractors.  These provisions giving 
                 priority to civil service employees appear to conflict 
                 generally with the merit civil service system established 
                 by Article 7of the State Constitution. 

           4)Previous legislation  .  This bill is similar to AB 1744 
            (Portantino) of last year which was held on the Suspense File 
            of this committee. 


           Analysis Prepared by  :    Roger Dunstan / APPR. / (916) 319-2081