BILL ANALYSIS                                                                                                                                                                                                    �






          SENATE PUBLIC EMPLOYMENT & RETIREMENT   BILL NO:  AB 1550
          Norma Torres, Chair          HEARING DATE:  June 23, 2014
          AB 1550 (Rendon)    as amended   5/23/14     FISCAL:  YES

           PUBLI C SCHOOL EMPLOYERS:  IMPASSE PROCEDURES
           
           HISTORY  :

            Sponsor:  California School Employees Association (CSEA)

            Other legislation:AB 1852 (Longville),
                          Chapter 316, Statutes of 2000

           ASSEMBLY VOTES  :

            PER & SS                 5-1       4/02/14
            Appropriations           12-5      5/23/14
            Assembly Floor           53-24     5/28/14
           
          SUMMARY  :

          AB 1550 amends impasse procedures under the Educational  
          Employment Relations Act (EERA) to require the following:

                 additional time for the appointment of a mediator by  
               the Public Employment Relations Board (PERB).
                 a 30-day prior written notice requirement on the  
               school employer of the implementation date and term  
               details of its last, best, and final offer (LBFO).
                 a prohibition on the school employer from  
               unilaterally changing language or implementing terms and  
               conditions different from a negotiated collective  
               bargaining agreement.
                 a requirement to meet and negotiate over remedies for  
               any terms of the agreement found to be unlawful.

           BACKGROUND AND ANALYSIS  :
          
           1)Existing law  :

             a)   establishes the Educational Employment Relations Act  
               (EERA) which provides a process by which employees of  
               the public schools and the community colleges may select  
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          Date:  June 7, 2014                                     Page  
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               an exclusive representative to represent them as part of  
               a bargaining unit within their district.

             b)   establishes the Public Employment Relations Board  
               (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  
               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 the scope of representation as limited to  
               matters relating to wages, hours, and other terms and  
               conditions of employment.

             e)   establishes impasse procedures which provide that  
               either the employer or the employee organization may  
               declare that an impasse exists and request that PERB  
               appoint a mediator to assist the parties to resolve  
               their differences.  If PERB determines that the parties  
               are at impasse, it must appoint a mediator within 5 days  
               of receiving a request for mediation.  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.

             f)   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 offer  
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               (LBFO) at the conclusion of impasse proceedings.

             g)   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.

           1)This bill  :

             a)   provides 10 instead of 5 working days for PERB to  
               appoint a mediator after finding that the parties are at  
               impasse and following a request for mediation by one of  
               the parties.

             b)   requires a public school employer to provide the  
               employees' exclusive representative at least 30 days  
               prior written notice of the date certain for the  
               implementation of, and all the terms included in, the  
               LBFO.

             c)   prohibits a public school employer from unilaterally  
               adding language to or deleting language from, or  
               otherwise implementing terms and conditions of  
               employment inconsistent with a  negotiated  agreement with  
               an exclusive representative.

             d)   requires the public school employer and the exclusive  
               representative to meet and negotiate any change to the  
               negotiated agreement to remedy any language in the  
               agreement that is illegal.

             e)   provides that if the Commission on State Mandates  
               determines that this act contains costs mandated by the  
               state, reimbursement to local agencies and school  
               districts for those costs shall be made, as specified.
           FISCAL  :

          According to the Assembly Appropriations Committee regarding  
          the  prior amended  version of AB 1550,

           the bill is keyed a local mandate.  The additional  
            timeframe required by the bill for impasse and notice  
            procedures could result in significant state mandated  
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          Date:  June 7, 2014                                     Page  
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            reimbursement of local costs as well as costs to school  
            employers incurred under the longer timeframe prior to  
            implementation of the last, best, and final offer.

           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.

           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  :

           1)Concerns of the Committee

             According to the sponsor, section 3549.5 of the bill  
            attempts to address situations in which the employer  
            attempts to impose terms or conditions on employees that  
            have never been brought up in collective bargaining or  
            "sunshined." Opponents have stated that they believe the  
            section would prohibit an employer from imposing a LBFO  
            unless its terms had already  been agreed to  in labor  
            negotiations, essentially eliminating the employer's  
            ability to impose an LBFO.

            The committee recommends an amendment to section 3549.5 to  
            clarify that the employer may not impose terms and  
            conditions in an LBFO that have not first been subject to  
            collective bargaining. 

             Suggested Amendment: Section 3549.5
             
            3549.5. (a) Notwithstanding any other law, a public school  
            employer shall not unilaterally  add language to, delete  
            language from, or otherwise  implement terms and conditions  
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          Date:  June 7, 2014                                     Page  
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            of employment  inconsistent with, a negotiated agreement   
             unless the terms and conditions have first been subject to  
            negotiation  with an exclusive representative. 
                 (b) If language in a negotiated agreement with an  
            exclusive representative is illegal, the public school  
            employer and the exclusive representative shall meet and  
            negotiate any change to the negotiated agreement to remedy  
            the illegal language.
             


           2)Arguments in Support  :

          According to the author,

               Under current law, school districts and college  
               employers can request an impasse declaration to expedite  
               the negotiation process toward the LBFO.  This practice  
               allows a district to make the minimum effort in  
               bargaining so that they can impose their LBFO into  
               bargaining unit contracts.

               AB 1550 will sunshine the details of the LBFO and give  
               more time (30 days) so that school and college employers  
               and their staff can try to work out their differences in  
               contract negotiations.

          According to the sponsor, this bill is an effort "to prevent  
          districts from doing 'surface bargaining' toward negotiation  
          impasse to force concessions by employees through the threat  
          of the enactment of the LBFO."  Furthermore,

               Classified school employees strive to maintain a  
               cooperative working relationship with their employers  
               and deserve to have the same level of cooperation on the  
               other side of the bargaining table.  In certain cases,  
               however, some employers have maintained a disingenuous  
               and minimal level of bargaining to avoid unfair labor  
               charges, knowing that an impasse will allow the LBFO to  
               control working conditions.

               AB1550 provides five more days for PERB to determine if  
               an impasse exists and gives school employees a 30 day  
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          Date:  June 7, 2014                                     Page  
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               notice of the contents and the date of implementation of  
               the LBFO from the employers.  The bill will sunshine the  
               details of the LBFO and give more time (30 days) so that  
               school and college employers and their staff can try to  
               work out their differences in contract negotiations.

           3)Arguments in Opposition  :  
           
          According to the Riverside Superintendent of Schools,

               Our chief concern with AB 1550 is that it would prohibit  
               a public school employer from unilaterally adding,  
               deleting or revising collective bargaining agreement  
               language, which essentially would repeal a school  
               employer's right to invoke its last, best and final  
               offer pursuant to Government Code Section 3505.4.  This  
               would greatly impair school employers' abilities to meet  
               their management and fiduciary responsibilities as  
               stewards of public education funds, as well as  
               responsible agents of public educational programs.

           4)SUPPORT  :

            California School Employees Association (CSEA), Sponsor
            California Federation of Teachers (CFT)
            California Labor Federation (CLF)
             United Nurses Associations of California/Union of Health  
              Care Professionals (UNAC/UHCP)

           5)OPPOSITION  :

            Association of California Community College Administrators
            Association of California School Administrators (ACSA)
            California Association of School Business Officials (CASBO)
            California Association of Suburban Schools
            California School Boards Association (CSBA)
            Fresno Unified School District
            Los Angeles Unified School District (LAUSD)
            Office of Riverside County Superintendent of Schools
            Riverside County Superintendent of Schools
            San Diego Unified School District
            School Employers Association of California
            Small School Districts Association (SSDA)
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