BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1550
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          ASSEMBLY THIRD READING
          AB 1550 (Rendon)
          As Amended May 23, 2014
          Majority vote 

           PUBLIC EMPLOYEES    5-1         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bonta, Jones-Sawyer,      |Ayes:|Gatto, Bocanegra,         |
          |     |Rendon, Ridley-Thomas,    |     |Bradford,                 |
          |     |Wieckowski                |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Allen                     |Nays:|Bigelow, Donnelly, Jones, |
          |     |                          |     |Linder, Wagner            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Makes changes to the Educational Employment Relations  
          Act (EERA) related to the appointment of a mediator, the minimum  
          time required to implement a last, best, and final offer, and  
          changing language from a collective bargaining agreement or  
          implementation of terms in a collective bargaining agreement.   
          Specifically,  this bill  :

          1)Extends the length of time the Public Employment Relations  
            Board (PERB) has to appoint a mediator once they have  
            determined an impasse exists from five to 10 working days  
            after receiving the request for mediation.

          2)Requires the public school employer, at least 30 days prior to  
            implementation of the last, best, and final offer, to provide  
            the exclusive representative with written notice of the date  
            for implementation of the terms of the offer.

          3)Prohibits a school employer from unilaterally adding or  
            removing language from a collective bargaining agreement or  
            implementing terms and conditions of employment inconsistent  
            with that agreement and requires that if language in a  
            collective bargaining agreement is illegal, the employer and  
            employee organization must meet and negotiate to remedy the  
            illegal language.  








                                                                  AB 1550
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           EXISTING LAW  :

          1)Establishes 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.

          2)Establishes 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.

          3)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.

          4)Defines the scope of representation as limited to matters  
            relating to wages, hours, and other terms and conditions of  
            employment.

          5)Establishes impasse procedures which provide that either the  
            employer or the employee organization may declare that an  
            impasse exists; if PERB determines that is the case, it must  
            appoint a mediator, who must meet with the parties in an  
            effort to resolve the differences. Should the mediator not  
            effect a settlement within 15 days of his appointment, PERB  
            must appoint a fact-finding panel on request of either party;  
            the fact-finding panel must conduct its operations according  
            to statutory guidelines. 

          6)Specifies that the recommendations of the fact-finding panel  
            are advisory, but the public school employer must make public  
            the findings and recommendations within 10 days of receipt.  
            The employer must also negotiate if there is anything to  
            negotiate. If no agreement is reached, the employer has the  
            right to make the final decision on all matters within the  
            scope of representation. Therefore, the employer can  
            unilaterally implement its "last, best, and final (LBF) offer"  
            at the conclusion of impasse proceedings. 









                                                                  AB 1550
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          7)Specifies that it is unlawful for a public school employer or  
            an employee organization, respectively, to refuse to  
            participate in good faith in the statutory impasse procedure.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:

          1)This bill is keyed a local mandate and there could be  
            significant state mandated reimbursement of local costs.  The  
            bill extends the period of time required to implement the  
            terms of a last, best, and final offer to 30 days from the  
            date of notice.  The additional time could result in  
            significant costs to school employers incurred while disputes  
            are being resolved or prior to implementation of the last,  
            best, and final offer.

          2)It is unknown what effect the bill would have on the  
            prevalence of school employee strikes, but any increase would  
            likely result in substantial state costs (in excess of  
            $150,000 to the General Fund).  The additional time could help  
            resolve disputes that would have otherwise led to strikes,  
            resulting in a net cost savings.  Conversely, the additional  
            time may allow school employees to organize a strike more  
            effectively, resulting in greater costs.

          3)In addition, to the extent any other employee representatives  
            choose to seek similar changes with respect to the timing and  
            implementation of last, best, and final offers, the costs  
            described above would be incurred within other local or state  
            agencies.

           COMMENTS  :  According to the author, "Current impasse law  
          contains a loophole that allows districts to impose their last,  
          best, and final offer language into bargaining unit contracts  
          and the loophole is exploited by districts, that use such  
          tactics designed to result in impasse." 

          "Even though, the bargaining unit can file an 'Unfair Labor  
          Practice' with PERB, often time, employee groups are forced to  
          accept the new terms and working conditions to avoid lengthy or  
          costly filing and review process with PERB."

          "These tactics of surface bargaining and impasse declarations  
          give an unfair advantage to the employers. Even though the law  








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          allows the bargaining unit to reject the LBF offer and go on  
          strike, going on strike is an extreme hardship for most  
          situations that the employees often opt to accept the changes  
          instead."

          "AB 1550 will give an added protection to school district and  
          community college classified employees by eliminating the  
          ability of the employer to add or remove new language in their  
          last, best, and final offer that has not been fairly resolved in  
          negotiations."

          Opponents state, "We believe that existing statutes and  
          authorities related to dispute resolution, including, but not  
          limited to, mediation, impasse and grievance, offer sufficient  
          statutory, regulatory and legal recourse with respect to  
          contract negotiations for both employers and employees."


           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957 


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