BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2126
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2126 (Bonta)
          As Amended May 23, 2014
          Majority vote 

           PUBLIC EMPLOYEES    5-1         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bonta, Jones-Sawyer,      |Ayes:|Gatto, Bocanegra,         |
          |     |Rendon, Ridley-Thomas,    |     |Bradford,                 |
          |     |Wieckowski                |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Allen                     |Nays:|Bigelow, Donnelly, Jones, |
          |     |                          |     |Linder, Wagner            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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 fact-finding 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 and have provided the other party with a declaration  
            of impasse, instead of requiring that both parties agree to  
            proceed to mediation.

          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)Specifies that a public agency is not required to proceed to  
            mediation if the impasse procedures it has established with  








                                                                 AB 2126
                                                                  Page  2


            the bargaining unit includes, at a minimum, a process for  
            binding arbitration.

          5)Clarifies that  included in the differences that may be  
            submitted to a fact-finding 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.

          6)Clarifies that the fact-finding panel, when arriving at their  
            findings and recommendations, is to be guided by those  
            specified criteria that the fact finders deem relevant to the  
            dispute.

          7)Clarifies that the procedural right of an employee  
            organization to request a fact-finding panel may be  
            voluntarily 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  








                                                                  AB 2126
                                                                  Page  3


            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 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.

          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  
            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 fact-finding 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  








                                                                  AB 2126
                                                                  Page  4


            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  :  According to the Assembly Appropriations  
          Committee:

          1)Based on PERB estimates of staffing necessary to administer  
            the provisions of this bill, the fiscal impact of  
            administration is approximately $800,000 (General Fund).

          2)Though the bill is not keyed a local mandate, there could be  
            substantial state mandated reimbursement of local costs.  The  
            amount would depend on the number of requests for mediation.   
            Reimbursable costs could be in the millions of dollars.  PERB  
            staff raised the possibility of exceeding 100 additional  
            mediation cases annually.  The Commission on State Mandates  
            has approved a test claim for any local government subject to  
            the jurisdiction of PERB that incurs increased costs as a  
            result of a mandate, meaning their costs are eligible for  
            reimbursement.

           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  
          the manner proposed by this bill 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."









                                                                  AB 2126
                                                                  Page  5


          Regarding the fact-finding provisions of the bill, in 2011, the  
          legislature passed AB 646 (Atkins), Chapter 680, Statues of  
          2011, which instituted a fact-finding 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 (Perea), Chapter 314,  
          Statutes of 2012, in part to codify those regulations.

          According to supporters, "Some doubt has arisen as to whether  
          the statutory fact-finding 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 fact-finding  
          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 fact-finding 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 fact-finding applies  
          to all bargainable disputes."

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








                                                                  AB 2126
                                                                  Page  6


          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 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 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.  


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


                                                                FN: 0003691