BILL ANALYSIS                                                                                                                                                                                                    �






          SENATE PUBLIC EMPLOYMENT & RETIREMENT    BILL NO:  SB 931
          Gloria Negrete McLeod, Chair   Hearing date:  May 9, 2011
          SB 931 (Vargas)    as amended  4/25/11        FISCAL:  NO

           PROHIBITS THE USE OF PUBLIC FUNDS BY PUBLIC AGENCIES TO DETER 
          THE EXERCISE OF GUARANTEED PUBLIC EMPLOYEE RIGHTS
           

           HISTORY  :            

              Sponsor:  American Federation of State, County and 
                    Municipal Employees (AFSCME),        Local 3299

              Prior legislation:  None

           
          SUMMARY  : 

          Would prohibit public agencies from using public funds to pay 
          external consultants or legal advisors to counsel the 
          employer on how to minimize or deter the exercise of 
          guaranteed public employee rights related to 
          employer-employee relations, and exempts certain payments, as 
          specified.


           BACKGROUND AND ANALYSIS  : 
          
           1)Existing law  :

             a)   establishes the Meyers-Milias-Brown Act (MMBA) which 
               provides a statutory framework for local government 
               employer-employee relations;

             b)   establishes the Ralph C. Dills Act (Dills Act) which 
               provides a statutory framework for state 
               employer-employee relations;

             c)   establishes the Educational Employer-Employee 
               Relations Act (EERA) which provides a statutory 
               framework for public school employer-employee relations;

             d)   establishes the Higher Education Employer-Employee 
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               Relations Act (HEERA) which provides a statutory 
               framework for employer-employee relations at the 
               University of California (UC), California State 
               University (CSU), and Hastings College of Law;

             e)   defines "recognized employee organization" as an 
               employee organization that has been formally 
               acknowledged by the public agency as an employee 
               organization that represents employees of the public 
               agency;

             f)   provides for negotiations between a state or local 
               public employer and representatives of recognized 
               employee organizations concerning wages, hours, and 
               other terms and conditions of employment, and

             g)   provides that public agencies and employee 
               organizations must not interfere with, intimidate, 
               restrain, coerce or discriminate against public 
               employees because of an exercise of their guaranteed 
               statutory rights related to employer-employee relations.


           2)This bill would  :

             a)   prohibit public agencies from using public funds to 
               pay external consultants or legal advisors to counsel 
               the employer on how to minimize or deter the exercise of 
               guaranteed employee rights under the MMBA, Dills Act, 
               EERA, and HEERA, and

             b)   exempt payments for representation of a public sector 
               employer before a court, administrative agency, or 
               tribunal for arbitration, or for engaging in collective 
               bargaining on behalf of the employer with respect to 
               wages, hours, or other terms and conditions of 
               employment.

           COMMENTS  :

          1)   Arguments in Support
           
            According to the author:
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               "In the United States, there exists a multi-billion 
               dollar union-busting industry, comprised of thousands of 
               attorneys and consultants specializing in training and 
               counseling clients on effective 'union avoidance.'  The 
               same 'union avoidance' specialists are often retained 
               for legal services and representation for employers in 
               the realm of labor and employment law.  Regardless of 
               how these firms receive payment and the exact category 
               of services contracted for, employees of state-funded 
               agencies are public employees and should not be 
               subjected to employer relations matters influenced by 
               outside advisors specializing in 'union avoidance.'"

            According to the sponsor,

               "Public agencies should not use scarce public funds to 
               circumvent public employees' guaranteed rights to a 
               voice on the job.  Public employees are harassed, 
               intimidated and threatened with unnecessarily antagonist 
               legal action for conducting themselves in a manner that 
               is protected by law.  Public agencies such as the 
               University of California hire outside legal counsel who 
               specialize in "union avoidance" to coach management on 
               ways to circumvent worker rights. It is vitally 
               important during this time of economic hardship that all 
               public funds are handled responsibly and invested with 
               the best interest of the state in mind."






          2)   Arguments in Opposition

             According to the Association of California Water Agencies:

               "Most public agency employers who consult for services 
               from an employment attorney are not seeking to curtail 
               employee rights or the right of its workers to unionize. 
                There are public agency employers who act in good faith 
               but do not have expertise on staff to deal with 
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               negotiating with unions and as such are required to seek 
               outside counsel.  In addition, many of the issues that a 
               union is able to negotiate on behalf of its members are 
               matters which may bind the public agency to a contract 
               worth millions of dollars.  We believe it is 
               inappropriate to expect the ratepayers of a water agency 
               to be held liable for contracts in which their best 
               interests were not taken into account."

          3)   SUPPORT  :

            American Federation of State, County and Municipal 
             Employees (AFSCME), Local 3299,    Sponsor
            American Federation of State, County and Municipal 
             Employees (AFSCME), AFL-CIO, Co-sponsor
            California Conference Board of the Amalgamated Transit 
            Union (ATU)
            California Conference of Machinists
            California Nurses Association (CNA)
            California Teamsters Public Affairs Council (Teamsters)
            Professional and Technical Engineers, Local 21

          4)   OPPOSITION  :

            Association of California Healthcare Districts (ACHD)
            Association of California School Administrators (ACSA)
            Association of California Water Agencies (ACWA)
            California Association of Sanitation Agencies (CASA)
            California Association of Joint Powers Authorities (CAJPA)
            California Hospital Association (CHA)
            California Special Districts Association (CSDA)
            California State Association of Counties (CSAC)
            League of California Cities (LCC)
            Regional Council of Rural Counties (RCRC)
            Riverside County School Superintendents' Association 
            (RCSSA)




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          Michael Bolden
          Date:  5/04/11                                         Page 5