BILL ANALYSIS                                                                                                                                                                                                    �




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


          AB 2126 (Bonta) - Local Public Employees
          
          Amended: May 23, 2014           Policy Vote: PE&R 3-2
          Urgency: No                     Mandate: No
          Hearing Date: August 14, 2014                           
          Consultant: Maureen Ortiz       
          
          SUSPENSE FILE.
          
          
          Bill Summary:  AB 2126 amends the Meyers-Milias-Brown Act (MMBA)  
          relating to bargaining impasse and mediation procedures between  
          local agencies and their respective employee representation  
          organizations.

          Fiscal Impact: 
          
              Unknown costs to local agencies for mediation (Local Fund)*  


              Annual costs of $796,000 to PERB (General Fund)

          Exact costs to PERB will be dependent on the number of new  
          mediation requests each year.  The above estimate is based on an  
          additional 110 requests for mediation, and for up to 480 new  
          mediation appointments necessitating 2 Attorney PYs, 3  
          Conciliator PYs, travel, equipment and overhead costs.

          *Although AB 2126 is not keyed as a state mandate, the costs of  
          mediation are divided equally between the public agency employer  
          and the recognized employee organization.  Any increased costs  
          to local agencies, therefore, may be reimbursable through the  
          General Fund.

          Background:   Existing law delegates jurisdiction over the  
          public 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. However, the City and County of Los Angeles are  
          provided a local alternative to PERB oversight through the City  
          of Los Angeles Employee Relations Board and the County of Los  
          Angeles Employee Relations Commission.








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          The governing body of a local public agency is required to meet  
          and confer in good faith regarding wages, hours, and other terms  
          and conditions of employment. The Meyers-Milias-Brown Act  
          provides a statutory framework for local government  
          employer-employee relations by providing a reasonable method of  
          resolving disputes. If, after a reasonable amount of time,  
          representatives of the public agency and the employee  
          organization fail to reach agreement, the two parties may  
          mutually agree on the appointment of a mediator and equally  
          share the cost.

          Existing law also authorizes an employee organization to request  
          that the parties' 
          differences be submitted to a factfinding panel not sooner than  
          30 days following the appointment of a mediator or entering into  
          a mediation process. If the dispute is 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. If a  
          factfinding panel is convened, each party selects one member and  
          the PERB selects a chairperson. The factfinding panel is  
          required to meet with the parties, either jointly or separately,  
          within10 days and may make inquiries, investigations, and hold  
          hearings in order to arrive at its findings and recommendations.

          Employers may implement a last, best, and final offer once any  
          applicable mediation
          and factfinding procedures have been exhausted. Employees retain  
          the right to meet 
          and confer each year with the employer despite the  
          implementation of the last, best and final 
          offer.

          Proposed Law:  AB 2126 makes the following changes to bargaining  
          impasse and mediation procedures:

          1)  Provides that if the public agency and the recognized  
          employee organization fail to reach agreement after a reasonable  
          time, either party may request mediation upon providing the  
          other with a written notice of a declaration of impasse.









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          2)  Within five days of a request by one of the parties, both of  
          the parties shall agree upon the appointment of a mediator  
          mutually agreeable to the parties. If the parties fail to agree  
          upon the selection of a mediator within five days, either party  
          may request that the board appoint a mediator. No later than  
          five days after the receipt of either party's request, the board  
          shall appoint a mediator in accordance with the rules prescribed  
          by the board.

          3)  Provides that the employee organization's request for  
          factfinding may include differences that arise from any dispute  
          over any matter within the scope of representation. 

          4)  Exempts the requirement for mediation to those public  
          agencies that have a binding arbitration process.

          5)  Specifically provides that an employee organization may  
          voluntarily waive in writing the right to request a factfinding  
          panel.

          Related Legislation:  This bill is similar to a provision of AB  
          537 (Bonta) which was amended out of the bill as it moved off of  
          the Suspense File last year.

          Staff Comments:  AB 2126 changes the mediation process in the  
          MMBA from one requiring mutual consent to enter mediation to one  
          where either party can require mediation by providing the other  
          party with a written declaration of impasse and requesting  
          mediation. Thereafter, the parties have 5 days to agree on a  
          mediator. If 
          they fail to agree, either party can request PERB to appoint a  
          mediator which PERB 
          must do within 5 days of receiving the request.

          Staff notes that AB 646, Chapter 680, Statutes of 2011, provided  
          that an employee organization may request the differences be  
          referred to a factfinding panel if the mediator is unable to  
          effect settlement of the controversy within 30 days.  The  
          enactment of that legislation has led to a wave of court  
          litigation against PERB.
          
          









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