BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1881
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          ASSEMBLY THIRD READING
          AB 1881 (Jones-Sawyer)
          As Amended March 28, 2014
          Majority vote 

           PUBLIC EMPLOYEES    5-1         APPROPRIATIONS      10-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bonta, Jones-Sawyer,      |Ayes:|Gatto, Bocanegra, Ian     |
          |     |Rendon, Ridley-Thomas,    |     |Calderon, Campos, Eggman, |
          |     |Wieckowski                |     |Gomez, Holden, Pan,       |
          |     |                          |     |Quirk, Ridley-Thomas      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Allen                     |Nays:|Bigelow, Donnelly, Jones, |
          |     |                          |     |Linder, Wagner            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Establishes requirements for appointments to the  
          County of Los Angeles (County) and the City of Los Angeles  
          (City) employee relations commissions and prohibits specified  
          actions when contracting for services with a commission member  
          or hearing officer.   Specifically,  this bill  : 

          1)Requires that appointments to an employee relations commission  
            in the City or County comply with the following:

             a)   Be made from a list of nominees jointly submitted by the  
               chief executive officer of the County or by the chief  
               administrative officer of the City, as applicable, and a  
               committee composed of recognized employee organizations;

             b)   The list of nominees must be submitted to the appointing  
               authority within 30 days before the expiration of a  
               member's term or before 30 days have elapsed after the  
               creation of a vacancy;

             c)   The appointing authority must make the appointment  
               within 30 days of the list of nominees being submitted.

             d)   The appointee is prohibited, while serving on an  
               employee relations commission, from consulting or providing  
               representation or advice on employee relations to any  
               public or private employer or employee organization.  The  








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               appointee may act as a professional neutral party in other  
               capacities.

          2)Prohibits the City or County, when contracting for services  
            with a commission member or hearing officer, as specified,  
            from doing either of the following:

             a)   Requiring that the commission member or hearing officer  
               agree to indemnify or hold harmless the County or City or  
               maintain specified liability or malpractice insurance; and,

             b)   Withholding or reducing payment for the services of a  
               commission member or hearing officer after services are  
               rendered.

          3)Specifies that these provisions may be enforced by an action  
            for a writ of mandate.

           EXISTING LAW  :

          1)Establishes the Meyers-Milias-Brown Act (MMBA), which provides  
            a statutory framework for local government employer-employee  
            relations by providing a reasonable method of resolving  
            disputes regarding wages, hours, and other terms and  
            conditions of employment between local public employers and  
            public employee organizations.

          2)Establishes the Public Employment Relations Board (PERB) as a  
            quasi-judicial administrative agency charged with  
            administering the collective bargaining statutes covering  
            employees of California's public schools, colleges, and  
            universities, employees of the State of California, employees  
            of California local public agencies (cities, counties and  
            special districts), trial court employees and supervisory  
            employees of the Los Angeles County Metropolitan  
            Transportation Authority.

          3)Establishes PERB as the state agency that has the power and  
            duty to investigate an unfair practice charge and to determine  
            whether the charge is justified and, if so, the appropriate  
            remedy.

          4)Specifies that for the County and the City the employee  
            relations commission, not PERB, has the power and  








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            responsibility to take action on recognition, unit  
            determinations, elections, and all unfair practices, and to  
            issue determinations and orders as it deems necessary,  
            consistent with the MMBA.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, minor costs to the City and County for compliance  
          with appointment procedures, likely reimbursable as state  
          mandates.

           COMMENTS :  The Los Angeles City Employee Relations Board (ERB)  
          was created in January 1971, when the Los Angeles City Council  
          adopted the Employee Relations Ordinance (Chapter 8, Division 4,  
          Sections 4.801 through 4.890 of the Los Angeles Administrative  
          Code.)  That ordinance establishes policies and procedures for  
          the administration of employer-employee relations in City  
          government.  It provides for the formal recognition of employee  
          organizations that represent City employees and establishes  
          procedures for the resolution of disputes regarding wages,  
          hours, and other terms and conditions of employment. The  
          Employee Relations Ordinance was adopted pursuant the MMBA.   
          That law mandates meeting and conferring between local  
          government agencies and organizations of the employees of such  
          agencies.

          The ERB has five part-time members, "who shall have broad  
          experience in the field of employee relations and shall possess  
          the impartiality necessary to protect the public interest  
          including the interests of the City and its employees."  They  
          are appointed by the Mayor and confirmed by the City Council and  
          serve terms of five years.
           
          The stated mission of the ERB is to administer the City's  
          Employee Relations Ordinance (ERO).  "Its functions in so doing  
          include determining employee representation units, arranging for  
          elections in such units, determining the validity of claims of  
          unfair practices filed against management and employee  
          organizations, acting on requests for mediation, fact finding  
          and arbitration to resolve bargaining impasses and grievances  
          and assisting employees to obtain access to their personnel file  
          pursuant to California Labor Code Section 1198.5."

          The Los Angeles County Employee Relations Commission (ERCOM) is  
          the administrative body that governs labor relations for the  








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          County.  ERCOM determines appropriate bargaining units, who will  
          represent them, and what classifications will be represented in  
          each unit.  ERCOM also decides whether or not anyone has  
          violated the ERO, and if so, how it should be remedied.

          Prior to September 2013, the three members of ERCOM were  
          appointed by the Board of Supervisors from a list of nominees  
          jointly developed by County management and employee unions.  In  
          September 2013, the Board of Supervisors unilaterally revised  
          the ERO establishing new procedures for appointing the three  
          members of ERCOM and compensating commissioners for work  
          performed on behalf of ERCOM. 

          According to supporters, "Historically, the Commissioners of the  
          City of Los Angeles' Employee Relations' Board (ERB) and the Los  
          Angeles County Employer Relation's Board (ERCOM) were selected  
          by a joint mutual selection process designed to ensure fairness  
          and impartiality.  The mutual selection process ensured  
          confidence and trust from both labor and management.

          "Recent unilateral actions taken by the Mayor of Los Angeles  
          with respect to ERB, and the Los Angeles County Board of  
          Supervisors with respect to ERCOM, changed the practice of  
          selecting mutually agreed neutral and impartial Commissioners.   
          Moreover, the County also imposed a new condition requiring that  
          hearing officers hold harmless and indemnify the County for any  
          decision rendered which may adversely affect the County.  On  
          September 9, 2013, the entire ERCOM Commission resigned in the  
          wake of the County's unilateral and draconian actions."

          Supporters conclude, "Fair hearings are essential to successful  
          labor relations.  AB 1881 restores the historical joint mutual  
          selection process for Commissioners for both the City and County  
          of Los Angeles, and prohibits the unfair labor practice of  
          requiring hearing officers to hold harmless and indemnify the  
          governing body."

          Opponents state that the bill is overly restrictive and could  
          eliminate qualified candidates from consideration.   
          Additionally, opponents state that this legislation  
          unnecessarily overrides locally adopted ordinances without  
          cause.










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


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