BILL ANALYSIS �
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: SB 1288
Norma Torres, Chair HEARING DATE: April 21, 2014
SB 1288 (Huff) as introduced 2/21/14 FISCAL: NO
LEGISLATIVE MEMORANDUM OF UNDERSTANDING APPROVAL PROCESS
HISTORY :
Sponsor: Author
Other legislation: AB 1377 (Asm. PER&SS Committee),
Chapter 36, Statutes of 2013
AB 478 (Gomez),
Chapter 391, Statutes of 2013
SUMMARY :
This bill would prohibit a bill presented to the Legislature
for the approval of a memorandum of understanding (MOU)
between the Governor and a recognized employee organization
from providing for approval of more than one MOU.
BACKGROUND AND ANALYSIS :
1)Existing law :
a) requires, under the State Employee-Employer Relations
Act (the Ralph C. Dills Act), that the state,
represented by the Department of Human Resources
(CalHR), collectively bargain with exclusive employee
representatives over all aspects related to wages and
working conditions, and that agreements be formalized in
MOUs that are subsequently approved by the Legislature.
b) requires the Office of the Legislative Analyst to
analyze state MOUs and to report on its findings to the
Legislature within 10 days of receiving the MOU from
CalHR.
c) provides that an MOU can only become effective upon
approval by the Legislature and signature by the
Governor.
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Date: April 7, 2014 Page
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d) provides that either party to the MOU may reopen
negotiations on all or part of the agreement if the
Legislature does not approve or fully fund any of its
provisions.
e) provides that nothing shall prevent the parties from
agreeing and effecting those provisions which the
Legislature has approved or which do not require
legislative action.
1)This bill :
a) prohibits a bill presented to the Legislature for the
approval of a memorandum of understanding (MOU) between
the Governor and a recognized employee organization from
providing for approval of more than one MOU.
COMMENTS :
1)Background Information
It has been common practice in the Legislature to combine
multiple MOU agreements into a single bill for the purpose of
obtaining legislative approval. Most notably, Service
Employees International Union (SEIU) represents 11 bargaining
units with applicable MOUs. In most bargaining cycles,
SEIU's agreements contain substantially similar provisions.
SEIU almost always includes all agreements in a single
legislative vehicle for approval. However, SEIU is not an
exception, and the Legislature has commonly included two or
more MOUs in a single piece of legislation. In 2013 the
Legislature passed AB 478 (Gomez), which provided approval of
MOUs for 7 state bargaining units. The agreements all were
concluded within a close timeframe and contained modest
salary increases consistent with what was provided to SEIU
bargaining units in their contracts in 2013 (AB 1377, Asm.
PER&SS Committee).
Often, the main provisions of the MOUs are substantially
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Date: April 7, 2014 Page
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similar with regard to salary adjustments and other
pay-related provisions such as for health care or leave time.
In addition, it is common for many bargaining units to reach
agreements within a close timeframe-usually at or around the
beginning of the fiscal year and late in the legislative
calendar.
The ability to combine multiple MOUs with substantially
similar provisions into fewer bills has provided flexibility
to the Legislature with regard to fulfilling its duty to
approve MOUs within the legislative process.
2)Argument in Support :
According to the sponsor's office, "it is common practice to
load multiple MOUs into one bill, ensuring that objectionable
provisions cannot be voted against. This practice does not
allow legislators to keep the best interest of the taxpayers
they serve at the forefront of their voting decisions."
3)Arguments in Opposition :
According to the California Association of Professional
Scientists, separate bargaining units often come to an
agreement with the administration within days of each other
at or near the end of a legislative session "and need to be
ratified by the Legislature before they become effective and
prior to the session ending."
The Professional Engineers in California Government state
that "the Legislature will include one or more MOUs that
require ratification into one bill to save time and not bog
the legislative process down with an abundance of MOU bills
that could otherwise be dispensed with in one piece of
legislation."
According to Service Employees International Union (SEIU)
Local 1000, which represents nine separate bargaining units
with the state, "including more than one bargaining unit or
MOU in a one legislative bill does not cost the state any
more money and makes the legislative process more efficient."
4)SUPPORT :
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Howard Jarvis Taxpayers Association
5)OPPOSITION :
California Association of Professional Scientists (CAPS)
Professional Engineers in California Government (PECG)
Retired Public Employees Association (RPEA)
Service Employees International Union, Local 1000 (SEIU)
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Date: April 7, 2014 Page
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