BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2126
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          Date of Hearing:   April 2, 2014

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY
                                  Rob Bonta, Chair
                    AB 2126 (Bonta) - As Amended:  March 26, 2014
           
          SUBJECT  :   Meyers-Milias-Brown Act: mediation.

           SUMMARY  :   Authorizes, under the Meyers-Milias-Brown Act (MMBA),  
          either party to be able to request mediation if they fail to  
          reach agreement during the collective bargaining process, as  
          specified, and clarifies that the factfinding process can be  
          invoked over impasse on any issue within the scope of  
          representation.  Specifically,  this bill  :  

          1)Allows either the public agency or the recognized employee  
            organization to request mediation if they fail to reach  
            agreement instead of requiring that both parties agree to  
            proceed to mediations.

          2)Requires that the parties agree upon the appointment of a  
            mediator within five days of the request.

          3)Specifies that if the parties fail to agree on the appointment  
            of a mediator, either party may request the Public Employment  
            Relations Board (PERB) appoint a mediator and requires PERB to  
            appoint the mediator within five days of receiving the  
            request.

          4)Clarifies that  included in the differences that may be  
            submitted to a factfinding panel are differences that arise  
            from any dispute over any matter within the scope of  
            representation as to which an obligation to meet and confer  
            exists and are not limited to negotiations after impasse after  
            collective bargaining for a new or successor memorandum of  
            understanding.

          5)Clarifies that the factfinding panel, when arriving at their  
            findings and recommendations, is to be guided by those  
            specified criteria that the factfinders deem relevant to the  
            dispute.

          6)Clarifies that the procedural right of an employee  
            organization to request a factfinding panel may be voluntarily  








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            waived in writing by the organization.

           EXISTING LAW  :

          1)Establishes the 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)Under MMBA, authorizes local public agencies to adopt  
            reasonable rules and regulations after consultation in good  
            faith with representatives of an employee organization or  
            organizations.

          3)Requires a public agency to meet and confer in good faith with  
            the representatives of a recognized employee organization  
            regarding wages, hours, and other terms and conditions of  
            employment.

          4)Delegates jurisdiction over the employer-employee relationship  
            to PERB and charges PERB with resolving disputes and enforcing  
            the statutory duties and rights of local public agency  
            employers and employee organizations.

          5)Provides that if, after a reasonable amount of time,  
            representatives of the public agency and the employee  
            organization fail to reach agreement, the two parties may  
            agree together on the appointment of a mutually agreeable  
            mediator and share equally in the cost of the mediator.

          6)Authorizes an employee organization to request that the  
            parties' differences be submitted to a factfinding panel not  
            sooner than 30 days, but not more than 45 days, following the  
            appointment of a mediator or entering into a mediation  
            process.  If the dispute was not submitted to mediation, an  
            employee organization may request that the parties'  
            differences be submitted to a factfinding panel not later than  
            30 days following the date either party provided the other  
            with written notice of a declaration of impasse.

          7)Authorizes the fact-finding panel to make inquiries and  
            investigations, hold hearings, and take any other steps it  
            deems appropriate, and to issue subpoenas requiring the  
            attendance and testimony of witnesses and the production of  








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            witnesses.

          8)Requires state and local public agencies, if requested by the  
            panel, to furnish the panel with all records, papers and  
            information in their possession relating to any matter under  
            investigation by the panel.

          9)Specifies the criteria the fact-finding panel should be guided  
            by in arriving at their findings and recommendations.

          10)Specifies that the procedural right of an employee  
            organization to request a factfinding panel cannot be  
            expressly or voluntarily waived.

          11)Requires the fact-finding panel to make findings of fact and  
            recommend terms of a settlement if the dispute is not settled  
            within 30 days.  This information must first be provided to  
            the parties before being made available to the public.

          12)Requires the costs of the chairperson of the fact-finding  
            panel to be paid for by both parties whether or not PERB  
            selected the chairperson.  Any other costs incurred will be  
            borne equally by the parties, as specified.

          13)Allows an employer to implement their last, best and final  
            offer once any applicable mediation and fact-finding  
            procedures have been exhausted and despite the implementation  
            of the best and final offer, allows a recognized employee  
            organization the right each year to meet and confer.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   According to the sponsor, the California  
          Professional Firefighters, "This bill conforms the mediation  
          provisions of the MMBA to those provisions of the Educational  
          Employment Relations Act (EERA), the Dills Act and the Higher  
          Education Employer-Employee Relations Act (HEERA), thereby  
          requiring mediation when requested by either party.

          Without conforming the mediation provisions of MMBA to the  
          mediations provisions of EERA, the Dills Act and HEERA,  
          obstructionist parties governed by the MMBA will continue to  
          employ tactics to reject compromise or rush to impasse, thereby  
          blocking the other party's attempt to request mediation in an  
          effort to resolve differences.  Further, conforming the law in  








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          the manner proposed by AB 2126 will ensure that all parties  
          remain at the bargaining table while receiving valuable  
          mediation assistance up to the point where either an agreement  
          is reached or one of the parties declares an impasse."

          Regarding the factfinding provisions of the bill, in 2011, the  
          legislature passed AB 646 which instituted a factfinding process  
          that could be invoked by employee organizations under the MMBA  
          after a "written notice of a declaration of impasse" or after a  
          mediation process agreed upon by the parties or by local rule.   
          PERB subsequently promulgated regulations to implement the law,  
          and in 2012 the Legislature passed AB 1606, in part to codify  
          those regulations.

          According to supporters, "Some doubt has arisen as to whether  
          the statutory factfinding process can be invoked over impasse on  
          any issue within the scope of representation, or whether the  
          process is limited to disputes over the negotiation of a  
          memorandum of understanding. In two pending state court cases,  
          public agencies have asserted the latter position. See San Diego  
          Housing Commission v. PERB (San Diego County Superior Court Case  
          No. 37-2012-00087278) (filed as a writ of mandate on December  
          10, 2012); County of Riverside v. PERB (Riverside County  
          Superior Court Case No. RIC 1305661) (filed as writ of mandate  
          on May 10, 2013).  In the Riverside case, the superior court has  
          granted an injunction in favor of the County adopting its  
          interpretation and ordering PERB to dismiss pending factfinding  
          cases that arise from negotiations of 'single meet and confer  
          issues and not from negotiations after impasse after collective  
          bargaining for a new or successor MOU.'

          "Similarly, on January 31, 2014 the San Diego court held that,  
          'PERB's construction that the factfinding provisions of the MMBA  
          apply to an impasse arising out of negotiations other than for a  
          MOU, including an impasse in a dispute over the effects and  
          impacts of an employee layoff, is clearly erroneous.'  Both,  
          PERB and the union involved have filed notices of appeal of the  
          court's decision."

          Supporters conclude, "The preferred and most efficient manner is  
          to add a new subsection making clear that factfinding applies to  
          all bargainable disputes."

          The California Association of Sanitation Agencies (CASA) states  
          in their opposition letter to the bill, "CASA believe that the  








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          provision in AB 2126 would unfairly benefit employee  
          organizations by altering the current standard of mutual consent  
          for requesting mediation, which our agencies believe is fair and  
          adequate.  In particular, CASA is concerned that this bill will  
          give the employee organizations the ability to claim impasse  
          without input form the local agency thus diminishing the  
          negotiating power of local agencies.  CASA believes that current  
          impasse law is fair and adequate and that local agencies should  
          maintain control of their management rights."

          The provisions of this bill are similar to one of the provisions  
          included in AB 537 (Bonta), Chapter 785, Statutes of 213.  These  
          provisions, however, were deleted from the bill prior to  
          passage.

          AB 1606 (Perea), Chapter 314, Statutes of 2012, authorized an  
          employee organization to request that the parties' differences  
          be submitted to a fact-finding panel not sooner than 30 days,  
          but not more than 45 days, following the appointment of a  
          mediator or entering into a mediation process.  If the dispute  
          was not submitted to mediation, an employee organization may  
          request that the parties' differences be submitted to a  
          fact-finding panel not later than 30 days following the date  
          either party provided the other with written notice of a  
          declaration of impasse.

          AB 646 (Atkins), Chapter 680, Statutes of 2011, allowed local  
          public employee organizations to request fact-finding if a  
          mediator is unable to reach a settlement within 30 days of  
          appointment, defines certain responsibilities of the  
          fact-finding panel and interested parties, and made specified  
          exemptions from these provisions.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Professional Firefighters (Sponsor)
          American Federation of State, County and Municipal Employees  
          (Co-Sponsor)
          Glendale City Employees Association
          Organization of SMUD Employees
          San Bernardino Public Employees Association
          San Luis Obispo County Employees Association
          Santa Rosa City Employees Association








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           Opposition 
           
          California Association of Sanitation Agencies
          California Special Districts Association
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957