BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 2126
          Author:   Bonta (D), et al.
          Amended:  5/23/14 in Assembly
          Vote:     21

           
           SENATE PUBLIC EMPLOYMENT & RETIREMENT COMM.  :  3-2, 6/23/14
          AYES:  Torres, De Le�n, Steinberg
          NOES:  Walters, Gaines

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 8/14/14
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters, Gaines

           ASSEMBLY FLOOR  :  54-22, 5/29/14 - See last page for vote


           SUBJECT  :    Meyers-Milias-Brown Act:  mediation

           SOURCE  :     AFSCME
                      California Professional Firefighters 
                      SEIU


           DIGEST  :    This bill amends the Meyers-Milias-Brown Act (MMBA)  
          relating to bargaining impasse and mediation procedures between  
          local agencies and their respective employee representation  
          organizations.

           ANALYSIS  :    

          Existing law:

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           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. 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  
             mutually agree on the appointment of a mediator and equally  
             share the cost.

           4. Creates a statutory framework and process for factfinding,  
             defining the duties and rights of the parties.

           5. Allows an employer to implement its last, best, and final  
             offer after any applicable mediation and factfinding  
             procedures have been exhausted.  A recognized employee  
             organization retains the right to meet and confer each year  
             with the employer despite the implementation of the last,  
             best and final offer.


           6. Requires factfinders, in arriving at their findings and  
             recommendations, to consider weigh, and be guided by all of  
             the following criteria:


             A.   State and federal laws that are applicable to the  
               employer;


             B.   Local rules, regulations, or ordinances;


             C.   Stipulations of the parties;


             D.   The interests and welfare of the public and the  

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               financial ability of the public agency;


             E.   Comparison of the wages, hours, and conditions of  
               employment of the employees involved in the factfinding  
               proceeding with the wages, hours, and conditions of  
               employment of other employees performing similar services  
               in comparable public agencies; and

             F.   The consumer price index for goods and services,  
               commonly known as the cost of living.

           1. The overall compensation presently received by the  
             employees, including direct wage compensation, vacations,  
             holidays, and other excused time, insurance and pensions,  
             medical and hospitalization benefits, the continuity and  
             stability of employment, and all other benefits received.

           2. Any other facts not confined to those specified in  
             paragraphs (1) to (7), inclusive, which are normally or  
             traditionally taken into consideration in making the findings  
             and recommendations.

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

          This bill:

            1. Mediation  .  Changes the mediation process in the MMBA from  
             one requiring mutual consent to enter mediation to one where  
             either party can require the parties enter mediation by  
             providing the other party with a written declaration of  
             impasse and requesting mediation.  Thereafter, the parties  
             have five 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 five days of receiving the request.

            2. Exception for public agencies with binding arbitration  .   
             Exempts from the requirement for mediation those public  
             agencies that have a procedure that applies if an impasse has  
             been reached between the public agency and a bargaining unit  
             and the procedure includes, at a minimum, a process for  
             binding arbitration.

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            3. Factfinding not limited to issues from bargaining impasse  .   
             Clarifies that differences between the parties that are  
             subject to a request by the employee organization for  
             submission to a factfinding panel may include 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  
             MOU.

            4. Flexibility for factfinder deliberations  .  Gives factfinder  
             panel members greater flexibility in arriving at their  
             findings and recommendations by providing that they need only  
             consider, weigh, and be guided by the criteria, as specified,  
             that the factfinders deem to be relevant to the dispute.

            5. Waiver of procedural right to request factfinding  .  Provides  
             that an employee organization may voluntarily waive in  
             writing the right to request a factfinding panel.  This bill  
             reverses existing law's prohibition against the waiver.

            6. Factfinding provisions are declaration of existing law  .   
             Finds and declares that the amendments made by the MMBA to  
             provisions applicable to factfinding procedures are  
             clarifying and declaratory of existing law.

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


          According to the Senate Appropriations Committee:


           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 two Attorney PYs, three  
          Conciliator PYs, travel, equipment and overhead costs.


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          *Although this bill 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.

           SUPPORT  :   (Verified  8/27/14)

          AFSCME (co-source)
          California Professional Firefighters (co-source)
          SEIU (co-source)
          Association for Los Angeles Deputy Sheriffs
          California Teamsters Public Affairs Council
          California Association of Professional Employees
          California Federation of Teachers
          California School Employees Association
          Glendale City Employees Association
          Los Angeles County Probation Officers Union
          Los Angeles Police Protective League
          Organization of SMUD Employees
          Riverside Sheriffs' Association
          San Bernardino Public Employees Association
          San Luis Obispo County Employees Association
          Santa Rosa City Employees Association

           OPPOSITION  :    (Verified  8/15/14)

          Association of California Cities - Orange County
          Association of California Healthcare Districts
          California Association of Sanitation Agencies
          California State Association of Counties
          California Special Districts Association
          Cities of:  Cerritos, Fountain Valley, Glendora, Hanford,  
          Palmdale, Palo Alto, 
               Rancho Cordova, Rancho Cucamonga, Redding, Roseville,  
          Salinas, 
               San Francisco, Santa Barbara, Turlock, Visalia
          Counties of:  Contra Costa Fresno, Kern, Madera, Marin, Placer,  
          Sacramento,
               San Bernardino, San Francisco
          Kern County Cemetery District #1
          League of California Cities
          Redwood City
          Rural County Representatives of California

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          San Joaquin County
          Solano County
          Tuolumne County Chamber of Commerce
          Urban Counties Caucus

           ARGUMENTS IN SUPPORT  :    According to the author's office, there  
          is a need to conform the MMBA to the other employee relations  
          Acts in a manner that enables both employers and employee  
          organizations to be extended access to the assistance and  
          expertise of a mediator when either party recognizes that their  
          dispute could benefit from such assistance and expertise.

          According to the California Professional Firefighters, "without  
          conforming the mediation provisions of MMBA to the mediation  
          provisions of EERA, the Dills Act and HEERA, obstructionist  
          parties governed by 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  
          their differences.  Further, conforming the law in 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."

          According to AFSCME, "By allowing either negotiating party to  
          request mediation, this bill will reduce the likelihood of a  
          deadlock and allow local government employees to continue  
          working under a fairly negotiated agreement."

           ARGUMENTS IN OPPOSITION  :    According to the League of  
          California Cities, under this bill, factfinders will only have  
          to be guided by criteria that the factfinders deem relevant to  
          the dispute.  In other words, with a 2-1 vote, the factfinders  
          could focus only on comparing wages, hours, and conditions with  
          other agencies, and not -for instance - deem relevant the local  
          agency's financial condition.

          The net effect of this bill is to erode incentives for employee  
          organizations to work with public employers to reach agreement  
          in good-faith collective bargaining.  PERB nominated mediators  
          and factfinders will be inclined to be sympathetic with employee  
          perspectives and have no responsibility for the financial health  
          and stewardship of the affected local agency.  
           

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           ASSEMBLY FLOOR  :  54-22, 5/29/14
          AYES:  Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta,  
            Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Cooley,  
            Dababneh, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Garcia,  
            Gatto, Gomez, Gonzalez, Gordon, Gray, Hall, Roger Hern�ndez,  
            Holden, Jones-Sawyer, Levine, Lowenthal, Medina, Mullin,  
            Muratsuchi, Nazarian, Pan, Perea, John A. P�rez, V. Manuel  
            P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez,  
            Salas, Skinner, Stone, Ting, Weber, Wieckowski, Williams,  
            Yamada, Atkins
          NOES:  Achadjian, Allen, Bigelow, Ch�vez, Conway, Dahle,  
            Donnelly, Beth Gaines, Gorell, Grove, Hagman, Jones, Linder,  
            Logue, Maienschein, Mansoor, Melendez, Nestande, Olsen,  
            Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Chesbro, Harkey, Patterson, Vacancy


          JL:d  8/27/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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