BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1834
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          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  AB 1834 (Williams) - As Amended:  April 24, 2014 

          Policy Committee:                              Higher  
          EducationVote:8-4

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill expands the definition of employees under the Higher  
          Education Employer-Employee Relations Act (HEERA) to include  
          students whose employment is contingent on their status as  
          students, specifically to Graduate Student Researchers (GSRs).

           FISCAL EFFECT  

          Assuming that the approximately 12,000 GSRs at UC choose to  
          unionize , UC will incur the following costs, which assumes  
          that, since GSR work is similar to that of the 6,000  
          postdoctoral scholars already under a bargaining agreement with  
          UC, some efficiencies will be gained:

          1)Bargaining. One-time costs in the low hundreds of thousands of  
            dollars for bargaining sessions and travel.

          2)Contract Administration-including training staff regarding  
            contract terms, grievance management, handling unfair labor  
            practice charges, responding to union information requests,  
            and conducting labor management meetings-could be in the range  
            of $1 million annually systemwide.  UC estimates a cost of  
            about $1.7 million systemwide to administer its contract with  
            postdoctoral scholars, stating that this is a newer bargaining  
            unit than that for teaching assistants, and that newer units  
            generally require greater administration. 

          3)Compensation Increases. To the extent that collective  
            bargaining, in and of itself, results in overall compensation  
            increases for GSRs, systemwide costs would increase by about  
            $2 million annually for each 1% of across-the-board  








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            compensation increase.

          4)Union Dues. If collective bargaining were to result in UC  
            covering the cost of union dues, UC estimates an annual cost  
            of $2. 3 million based on current GSR systemwide payroll costs  
            and United Auto Workers (UAW) dues rate. (The UAW represents  
            UC postdoctoral scholars and teaching assistants.)

          Some of the above costs might be absorbable, and will likely  
          decline over time. Given years of tight budgets, however, it is  
          not likely that current UC administrative resources could simply  
          assume the entirety of this new responsibility.

          In terms of funding, much of the above costs could be covered  
          from the grants and contracts that fund much of UC's research,  
          which in addition to funding the direct costs of the research,  
          include an allowance for recovery of indirect costs like  
          contract administration and other related overhead expenses. UC  
          indicates, however, that indirect costs are typically higher  
          than research sponsors are willing to pay and that recovery of  
          such costs varies among research sponsors. UC reports that rates  
          negotiated with federal agencies are among the highest, but are  
          still estimated at 5% to 18% below the true indirect costs of  
          conducting the research. To the extent the above costs are not  
          covered within the amount provided in grants and contracts, they  
          would be covered by the General Fund and student fee revenue.

           COMMENTS  

           1)Background  . HEERA provides a statutory framework to regulate  
            labor relations at the University of California (UC), the  
            California State University (CSU), and Hastings College of  
            Law. HEERA is administered and enforced by the Public  
            Employment Relations Board (PERB). In a 1998 decision, PERB  
            determined that under the current statutory language, UC's  
            12,000 Teaching Assistants (TAs), Readers and Tutors had  
            collective bargaining rights because their employment is not  
            contingent upon their status as students, but that GSRs, also  
            known as Research Assistants did not have such rights. (UC's  
            6,000 Postdoctoral Scholars may also collectively bargain  
            under HEERA.)  The United Auto Workers (UAW) represents UC TAs  
            and Postdoctoral Scholars.  Student employees equivalent to  
            GSRs at CSU are covered under HEERA by a voluntary agreement  
            with CSU.









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           2)Difference between TAs, GSRs, and Postdoctoral Scholars  .

             a)   Teaching Assistants/Associates/Fellows are enrolled  
               students, whose primary duty is assistance in all aspects  
               of instruction (tutoring, grading, advising, sectional  
               teaching, sectional laboratory teaching, field work  
               teaching, limited lecturing). These duties are performed  
               under the supervision of faculty "instructors of record"  
               and are paid from state funds (instructional money).

             b)   GSRs are enrolled students selected for high achievement  
               and promise as creative scholars, and assist faculty  
               members with scholarly research. GSRs may not be assigned  
               teaching, administrative, or general assistance duties, and  
               are paid from contracts and grants generated by the  
               faculty.

             c)   Postdoctoral Scholars are not enrolled students; they  
               are individuals who have recently completed a doctoral  
               degree, who seek additional scholarship and continued  
               research training.  The Postdoctoral Scholar conducts  
               research under the general oversight of a faculty mentor in  
               preparation for a career position in academe, industry,  
               government, or the nonprofit sector.
           
          3)Purpose  . According to the author, "graduate students work at  
            UC for 5 to 10 years while pursuing degrees. They frequently  
            move in and out of the TA bargaining unit, since they are  
            often employed as both teaching and research assistants. The  
            movement between these jobs creates a lack of continuity. When  
            student employees work as RAs their contractual rights for  
            workload protections, job security, grievance and arbitration  
            procedures, family leave and other rights disappears. This  
            bill extends the right for the 14,000 student research  
            assistants at UC to choose to bargain collectively under  
            HEERA."
           
          4)UC Position  . UC Office of the President has not taken a  
            position on the bill at this time, indicating that President  
            Napolitano has committed to engage with the University of  
            Washington to understand its experience with graduate student  
            collective bargaining and its applicability to UC and  
            California. UC notes, however, that very few graduate students  
            move between positions as Academic Student Employees (ASEs)  
            and GSRs. In 2012 and 2013, only 95 (less than 1%) of ASEs  








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            also held a GSR position in the same year, and only 343 (less  
            than 4%) of GSRs also held an ASE position.

           5)Prior Legislation  . In 2012, SB 259 (Hancock), a virtually  
            identical bill, was vetoed by the Governor, who indicated that  
            he did not have "sufficient and persuasive evidence warranting  
            a change to the current framework within which graduate  
            student researchers and faculty undertake their joint  
            intellectual inquiries." The Governor was also reluctant to  
            place a new mandate on the university under the fiscal  
            environment at that time.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081