BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 931|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
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                                 THIRD READING


          Bill No:  SB 931
          Author:   Vargas (D)
          Amended:  4/25/11
          Vote:     21

           
           SEN. PUBLIC EMPLOY. & RETIRE. COMMITTEE  :  3-2, 5/9/11
          AYES:  Negrete McLeod, Padilla, Vargas
          NOES:  Walters, Gaines


           SUBJECT  :    Public employee organizations

           SOURCE  :     American Federation of State, County and 
          Municipal
                           Employees, AFL-CIO
                      American Federation of State, County and 
          Municipal 
                           Employees, Local 3299


           DIGEST  :    This bill prohibits 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.

           ANALYSIS  :    

           Existing Law

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

          2.Establishes the Ralph C. Dills Act (Dills Act) which 
            provides a statutory framework for state 
            employer-employee relations.

          3.Establishes the Educational Employer-Employee Relations 
            Act (EERA) which provides a statutory framework for 
            public school employer-employee relations.

          4.Establishes the Higher Education Employer-Employee 
            Relations Act (HEERA) which provides a statutory 
            framework for employer-employee relations at the 
            University of California, California State University, 
            and Hastings College of Law.

          5.Defines "recognized employee organization" as an employee 
            organization that has been formally acknowledged by a 
            public agency as an employee organization that represents 
            employees of the public agency.

          6.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.

          7.Provide 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.  

           This bill:
           
           1.Prohibits 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.

          2.Exempts payments for representation of a public sector 
            employer before a court, administrative agency, or 
            tribunal for arbitration, or for engaging in collective 







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            bargaining on behalf of the employer with respect to 
            wages, hours, or other terms and conditions of 
            employment.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  5/10/11)

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

           OPPOSITION  :    (Verified  5/10/11)

          Association of California Healthcare Districts
          Association of California School Administrators
          Association of California Water Agencies
          California Association of Sanitation Agencies
          California Association of Joint Powers Authorities
          California Hospital Association
          California Special Districts Association
          California State Association of Counties
          League of California cities
          Regional Council of Rural Counties
          Riverside County School Superintendents' Association

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          "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 







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          public employees and should not be subjected to employer 
          relations matters influenced by outside advisors 
          specializing in 'union avoidance'."

          According to the sponsor, the American Federation of State, 
          County and Municipal Employees, "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."

           ARGUMENTS IN OPPOSITION  :    According to the Association of 
          California Water Agencies, "Most public agency employers 
          who consult for sevices 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 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."  
           

          CPM:cm  5/10/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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