BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 1834 (Williams) - Higher Education Employees
          
          Amended: April 24, 2014         Policy Vote: PE&R 3-2
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Maureen Ortiz       
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary:  AB 1834 expands the definition of employees under  
          the Higher Education Employer-Employee Relations Act to include  
          student employees whose employment is contingent upon their  
          status as students. 

          Fiscal Impact: 
          
              Approximately $639,000 to UC for collective bargaining  
              (General)
              Annual costs to UC of approximately $1.7 million for  
              administering the contracts (General)
              Potential salary increases as a result of negotiations  
              ranging from $2.3 million (based on 1.15% increase) to $14  
              million (based on range of 3-7% increase) (General/Federal -  
              approximately 85% funding comes from Federal grants and  
              private sources)

          The UC estimates initial costs associated with collective  
          bargaining to be $639,000.  This cost entails 116 days for the  
          following:  bargaining sessions, planning, researching, drafting  
          language, responding to union information requests, travel days  
          and travel expenses for a Negotiator and Assistant Negotiator.   
          The estimate also includes 58 days of expenses for Faculty  
          Representatives, Labor Relations Campus Representatives, and  
          Labor Relations Assistant.  The ongoing cost ranges are based on  
          whether the total cost to administer GSR contracts is similar to  
          the costs incurred to administer teaching assistance contracts  
          ($605,959) or similar to costs currently paid to administer  
          post-doctoral contracts ($1,689,784).  Administrative costs stem  
          from the need to provide additional staff support to negotiate a  
          contract, develop policy and educational materials, and  
          implement training programs for the campuses.  These costs would  








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          likely be paid from the General Fund.   

          In addition, UC estimates that if the GSRs receive a  
          compensation increase as a result of their new contract (for  
          instance, to cover the cost of union due contributions),  
          additional costs would be $2.3 million annually for a 1.15%  
          salary increase; $6 million for a 3% increase; $10 million for  
          an increase of 5%, and $14 million for a salary increase of 7%.   
          Though the graduate student research positions are mostly funded  
          from grants and federal monies, those grants are in limited  
          supply and any increases in costs could result in fewer GSR  
          positions being offered.


          Background:  The Higher Education Employer-Employee Relations  
          Act (HEERA) provides a statutory framework to regulate labor  
          relations between the University of California (UC), the  
          California State University (CSU), and Hastings College of Law  
          and their employees.  HEERA is administered and enforced by the  
          Public Employment Relations Board (PERB).

          PERB's decision in Regents of the UC & Association of Student  
          Employees, UAW, et al (1998) (PERB Order No. 1301-H) rendered a  
          determination that under the current statutory language, UC's  
          12,000 Teaching Assistants (TAs), Readers, and Tutors had  
          bargaining rights but, the Research Assistants (RAs) did not.   
          This inequity may create a continuity problem when student  
          employees change positions from TAs to RAs, and back again since  
          while employed as RAs, they are not covered by a contract and  
          consequently lose certain rights and benefits.

          Proposed Law:  AB 1834 will authorize graduate student Research  
          Assistants who are employed by the University of California to  
          collectively bargain for their benefits.  There are  
          approximately 14,000 GSRs employed by the University of  
          California, and about 85% of the funding comes from non-State  
          sources such as Federal funds and private grants, with the  
          remaining costs coming from the General Fund.  

          Related 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  








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          researchers and faculty undertake their joint intellectual  
          inquiries."  The Governor was also reluctant to place a new  
          mandate on the university system during the fiscal environment  
          at that time.

          SB 259 (Hancock), also identical to this measure, was held on  
          this committee's Suspense File in 2013. 

          Staff Comments:  According to the University of California,  
          there are significant benefits being provided to GSRs which are  
          very similar to the benefit packages provided to other graduate  
          students including health insurance, childcare, tuition/fee  
          remission, and paid holidays.

          Aside from providing eligibility for UC Research Assistants to  
          participate in a collective bargaining process, the provisions  
          of SB 259 may create a fundamental change in the faculty-student  
          relationship which is currently more of an academic  
          mentor-mentee relationship.  The University of California  
          indicates that this relationship would change to one of  
          employer-employee, and could have a severely negative impact on  
          the University's mission of teaching, research and service. 

          Student employees who work jobs equivalent to RAs at CSU are  
          covered under HEERA by voluntary agreement between the UAW and  
          CSU.