AB 1937: Public employment: payroll deductions.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-05-10
(1)Existing law prescribes various duties of the Controller in connection with deductions requested by employee organizations and other bona fide organizations regarding requests for deductions from the salaries and wages of their members. Existing law defines employee organization in this context as one which represents employees of the state or the California State University and which is registered or recognized, as specified, and defines bona fide organization as an organization of employees or former employees of an agency of the state and the California State University, which does not have as one of its purposes representing employees in their employment relations. Existing law prescribes the duties of the governing boards of school districts in regard to requests by certificated employees for deductions from the salaries and wages, and prescribes similar duties for the governing boards of community college districts. Existing law authorizes a trial court employee or interpreter to permit a dues deduction from his or her salary in the same manner provided to public agency employees pursuant to specified law applicable to the state and the Controller, as described above.
This bill would revise and recast these provisions. The bill would expand certain authorizations and requirements currently applicable to the Controller and employees of the state and California State University to apply also to the Regents of the University of California, the Judicial Council, counties, cities, and public authorities, including transit districts, among others, and would correspondingly broaden the definition of an employee organization. In this context, the bill would authorize employee organizations and bona fide associations to request payroll deductions and would require public employers to honor these requests. The bill would require public employers to make rules and regulations for the administration of specified payroll deductions, subject to meeting and conferring with the applicable employee organizations. The bill would delete the requirement that requests be made on forms approved by the Controller.
The bill would prohibit requiring an employee organization that certifies that it has and will maintain individual employee authorizations to provide a copy of an individual authorization to the public employer or the Controller unless a dispute arises about the existence or terms of the authorization. The bill would authorize charging an employee organization reasonable one-time startup costs, if any, for making deductions. The bill would delete authority granted to the Controller to decline to provide salary services if the Controller determines that it is not administratively feasible or practical, or if the Controller determines that the individual, organization, or entity requesting or receiving the salary service has failed to comply with applicable rules and regulations. The bill would specify when deductions are to commence following notification from an employee organization. The bill would permit a deduction for an employee organization to be revoked only pursuant to the terms of the employees written authorization. The bill would require a public employer or the Controller, prior to processing a revocation request, to provide a copy of the request to the employee organization, or confirm that the employee has sent it a copy, and to provide the organization five days in which to advise the public employer or Controller whether the request is in conformity with the authorization. The bill would require the public employer or Controller to rely on the employee organizations statement that information provided by the employee organization regarding whether the request is not in conformity with the authorization. The bill would require the employee organization to indemnify the public employer or Controller for any claims made by employees for deductions made in reliance on specified employee organization assertions. information provided by the employee organization.
The bill would revise authorizations granted to employees and retired employees to make deductions for dues in, and for services provided by, a bona fide organization, as specified, instead to apply to employee organizations for dues in, or for any other service, program, or committee provided or sponsored by, an employee organization and would eliminate the requirement of public agency approval for these deductions. The bill would require employers to honor these authorizations and would require that the revocability of an authorization be determined by the terms of the authorization. The bill would repeal certain requirements dealing with payroll deduction for state employees of public agencies, other than those under the uniform payroll system. The bill would apply the changes described above to trial court employees and court interpreters, as specified.
With regard to school district and community college district employers and employees, the bill would expand the authorization granted to certificated and academic employees to request salary deductions to apply also to dues in, or for any other service, program, or committee provided or sponsored by, an applicable employee organization, as specified. The bill would require reasonable, one-time startup costs of making deductions to be charged. The bill would require employee authorizations to be revoked according to their written terms. The bill would require these employers to honor the terms of employee written authorizations and, prior to processing a revocation request, to provide a copy of the request to the employee organization for confirmation, as described above. authorizations. The bill would require the employers to rely on the employee organizations statement that information provided by the employee organization regarding whether the request is not in conformity with the authorization, as described above. The bill would also prescribe when deductions are to commence, following notification from employee organizations, and would prohibit requiring the employee organizations to provide a copy of an authorization unless a dispute arises, as specified. The bill would require employee organizations to indemnify the public school employers or community college districts for any claims made by employees for deductions made in reliance on specified assertions.
By increasing the duties of local agencies, this bill would impose a state-mandated local program.
(2)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing
(1)Existing law prescribes various duties of the Controller in connection with deductions requested by employee organizations and other bona fide organizations regarding requests for deductions from the salaries and wages of their members. Existing law defines employee organization in this context as one which represents employees of the state or the California State University and which is registered or recognized, as specified, and defines bona fide organization as an organization of employees or former employees of an agency of the state and the California State University, which does not have as one of its purposes representing employees in their employment relations. Existing law prescribes the duties of the governing boards of school districts in regard to requests by certificated employees for deductions from the salaries and wages, and prescribes similar duties for the governing boards of community college districts. Existing law authorizes a trial court employee or interpreter to permit a dues deduction from his or her salary in the same manner provided to public agency employees pursuant to specified law applicable to the state and the Controller, as described above.
This bill would revise and recast these provisions. The bill would expand certain authorizations and requirements currently applicable to the Controller and employees of the state and California State University to apply also to the Regents of the University of California, the Judicial Council, counties, cities, and public authorities, including transit districts, among others, and would correspondingly broaden the definition of an employee organization. In this context, the bill would authorize employee organizations and bona fide associations to request payroll deductions and would require public employers to honor these requests. The bill would authorize require public employers to make rules and regulations for the administration of specified payroll deductions, subject to meeting and conferring with the applicable employee organizations. The bill would delete the requirement that requests be made on forms approved by the Controller.
The bill would prohibit requiring an employee organization that certifies that it has and will maintain individual employee authorizations to provide a copy of an individual authorization to the public employer or the Controller unless a dispute arises about the existence or terms of the authorization. The bill would authorize charging an employee organization reasonable one-time startup costs, if any, for making deductions. The bill would delete authority granted to the Controller to decline to provide salary services if the Controller determines that it is not administratively feasible or practical, or if the Controller determines that the individual, organization, or entity requesting or receiving the salary service has failed to comply with applicable rules and regulations. The bill would specify when deductions are to commence following notification from an employee organization. The bill would permit a deduction for an employee organization to be revoked only pursuant to the terms of the employees written authorization. The bill would require a public employer or the Controller, prior to processing a revocation request, to provide a copy of the request to the employee organization, or confirm that the employee has sent it a copy, and to provide the organization five days in which to advise the public employer or Controller whether the request is in conformity with the authorization. The bill would authorize require the public employer or Controller to rely on the employee organizations statement that the request is not in conformity with the authorization. The bill would require the employee organization to indemnify the public employer or Controller for any claims made by employees for deductions made in reliance on specified employee organization assertions.
The bill would revise authorizations granted to employees and retired employees to make deductions for dues in, and for services provided by, a bona fide organization, as specified, instead to apply to employee organizations for dues in, or for any other service, program, or committee provided or sponsored by, an employee organization and would eliminate the requirement of public agency approval for these deductions. The bill would require employers to honor these authorizations and would require that the revocability of an authorization be determined by the terms of the authorization. The bill would repeal certain requirements dealing with payroll deduction for state employees of public agencies, other than those under the uniform payroll system. The bill would apply the changes described above to trial court employees and court interpreters, as specified.
With regard to school district and community college district employers and employees, the bill would expand the authorization granted to certificated and academic employees to request salary deductions to apply also to dues in, or for any other service, program, or committee provided or sponsored by, an applicable employee organization, as specified. The bill would require reasonable, one-time startup costs of making deductions to be charged. The bill would require employee authorizations to be revoked according to their written terms. The bill would require these employers to honor the terms of employee written authorizations and, prior to processing a revocation request, to provide a copy of the request to the employee organization for confirmation, as described above. The bill would authorize require the employers to rely on the employee organizations statement that the request is not in conformity with the authorization, as described above. The bill would also prescribe when deductions are to commence, following notification from employee organizations, and would prohibit requiring the employee organizations to provide a copy of an authorization unless a dispute arises, as specified. The bill would require employee organizations to indemnify the public school employers or community college districts for any claims made by employees for deductions made in reliance on specified assertions.
By increasing the duties of local agencies, this bill would impose a state-mandated local program.
(2)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prescribes various duties of the Controller in connection with deductions requested by employee organizations and other bona fide organizations regarding requests for deductions from the salaries and wages of their members. Existing law defines employee organization in this context as one which represents employees of the state or the California State University and which is registered or recognized, as specified, and defines bona fide organization as an organization of employees or former employees of an agency of the state and the California State University, which does not have as one of its purposes representing employees in their employment relations. Existing law prescribes the duties of the governing boards of school districts in regard to requests by certificated employees for deductions from the salaries and wages, and prescribes similar duties for the governing boards of community college districts. Existing law authorizes a trial court employee or interpreter to permit a dues deduction from his or her salary in the same manner provided to public agency employees pursuant to specified law applicable to the state and the Controller, as described above.
This bill would revise and recast these provisions. The bill would expand certain authorizations and requirements currently applicable to the Controller and employees of the state and California State University to apply also to the Regents of the University of California, the Judicial Council, counties, cities, and public authorities, including transit districts, among others, and would correspondingly broaden the definition of an employee organization. In this context, the bill would authorize employee organizations and bona fide associations to request payroll deductions and would require public employers to honor these requests. The bill would authorize public employers to make rules and regulations for the administration of specified payroll deductions, subject to meeting and conferring with the applicable employee organizations. The bill would delete the requirement that requests be made on forms approved by the Controller.
The bill would prohibit requiring an employee organization that certifies that it has and will maintain individual employee authorizations to provide a copy of an individual authorization to the public employer or the Controller unless a dispute arises about the existence or terms of the authorization. The bill would authorize charging an employee organization reasonable one-time startup costs, if any, for making deductions. The bill would delete authority granted to the Controller to decline to provide salary services if the Controller determines that it is not administratively feasible or practical, or if the Controller determines that the individual, organization, or entity requesting or receiving the salary service has failed to comply with applicable rules and regulations. The bill would specify when deductions are to commence following notification from an employee organization. The bill would permit a deduction for an employee organization to be revoked only pursuant to the terms of the employees written authorization. The bill would require a public employer or the Controller, prior to processing a revocation request, to provide a copy of the request to the employee organization, or confirm that the employee has sent it a copy, and to provide the organization five days in which to advise the public employer or Controller whether the request is in conformity with the authorization. The bill would authorize the public employer or Controller to rely on the employee organizations statement that the request is not in conformity with the authorization. The bill would require the employee organization to indemnify the public employer or Controller for any claims made by employees for deductions made in reliance on specified employee organization assertions.
The bill would revise authorizations granted to employees and retired employees to make deductions for dues in, and for services provided by, a bona fide organization, as specified, instead to apply to employee organizations for dues in, or for any other service, program, or committee provided or sponsored by, an employee organization and would eliminate the requirement of public agency approval for these deductions. The bill would require employers to honor these authorizations and would require that the revocability of an authorization be determined by the terms of the authorization. The bill would repeal certain requirements dealing with payroll deduction for state employees of public agencies, other than those under the uniform payroll system. The bill would apply the changes described above to trial court employees and court interpreters, as specified.
With regard to school district and community college district employers and employees, the bill would expand the authorization granted to certificated and academic employees to request salary deductions to apply also to dues in, or for any other service, program, or committee provided or sponsored by, an applicable employee organization, as specified. The bill would require reasonable, one-time startup costs of making deductions to be charged. The bill would require employee authorizations to be revoked according to their written terms. The bill would require these employers to honor the terms of employee written authorizations and, prior to processing a revocation request, to provide a copy of the request to the employee organization for confirmation, as described above. The bill would authorize the employers to rely on the employee organizations statement that the request is not in conformity with the authorization, as described above. The bill would also prescribe when deductions are to commence, following notification from employee organizations, and would prohibit requiring the employee organizations to provide a copy of an authorization unless a dispute arises, as specified. The bill would require employee organizations to indemnify the districts for any claims made by employees for deductions made in reliance on specified assertions.
By increasing the duties of local agencies, this bill would impose a state-mandated local program.
(2)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law, the Meyers-Milias-Brown Act, authorizes public employees, as defined, to form, join, and participate in the activities of employee organizations for the purpose of representation on matters of employer-employee relations. Existing law requires a public employer to deduct dues or service fees paid to a recognized employee organization as required by an agency shop arrangement between the recognized employee organization and the employer. Existing law requires that agency fee obligations continue in effect as long as the employee organization is the recognized bargaining representative, as specified.This bill would make a nonsubstantive change to the requirement that agency fee obligations continue in effect as long as the employee organization is the recognized bargaining representative, as described above.Existing law, the Meyers-Milias-Brown Act, authorizes public employees, as defined, to form, join, and participate in the activities of employee organizations for the purpose of representation on matters of employer-employee relations. Existing law requires a public employer to deduct dues or service fees paid to a recognized employee organization as required by an agency shop arrangement between the recognized employee organization and the employer. Existing law requires that agency fee obligations continue in effect as long as the employee organization is the recognized bargaining representative, as specified.
This bill would make a nonsubstantive change to the requirement that agency fee obligations continue in effect as long as the employee organization is the recognized bargaining representative, as described above.
(a)Except as provided in Section 45061, the governing board of each school district, when drawing an order for the salary payment due to a certificated employee of the district, shall reduce the order by the amount which it has been requested in a revocable written authorization by the employee to deduct for the purpose of paying the dues of the employee for membership in any local professional organization or in any statewide professional organization, or in any other professional organization affiliated or otherwise connected with a statewide professional organization which authorizes the statewide organization to receive membership dues on its behalf, or to deduct for the purpose of paying dues in, or for any other service, program, or committee provided or sponsored by, any certified or recognized employee organization, of which the employee is a bargaining unit member, whose membership consists, in whole or in part, of employees of the public school employer, and which has as one of its objectives improvements in the terms or conditions of employment for the advancement of the welfare of the employees. Any revocation of a written authorization shall be in writing and shall be effective commencing with the next pay period provided the revocation complies with the terms of the written authorization.
(b)Unless otherwise provided in an agreement negotiated pursuant to Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code, the governing board shall, no later than the 10th day of each pay period for certificated employees, draw its order upon the funds of the employer in favor of the organization designated by the employee for an amount equal to the total of the dues or other deductions made with respect to that organization for the previous pay period and shall transmit the total amount to that organization no later than the 15th day of each pay period for certificated employees. When timely transmittal of dues or other payments by a county is necessary for a public school employer to comply with the provisions of this section, the county shall act in a timely manner. The governing board shall deduct from the amount transmitted to the organization on whose account the dues or other payments were deducted reasonable, one-time startup costs of making deductions. These deductions shall not exceed the actual cost to the employer to start making the deductions.
(c)The revocable written authorization shall remain in effect until expressly revoked in writing by the employee, pursuant to the terms of the written authorization. Whenever there is a change in the amount required for the payment to the organization, the employee organization shall provide the employee with adequate and necessary data on the change at a time sufficiently prior to the effective date of the change to allow the employee an opportunity to revoke the written authorization, if desired and if permitted by the terms of the written authorization. The employee organization shall provide the public school employer with notification of the change at a time sufficiently prior to the effective date of the change to allow the employer an opportunity to make the necessary adjustments and with a copy of the notification of the change which has been sent to all concerned employees.
(d)The governing board shall not require the completion of a new deduction authorization when a dues or other change has been effected or at any other time without the express approval of the concerned employee organization.
(e)The governing board shall honor the terms of the employees written authorization for payroll deductions. Prior to processing a revocation request, the governing board shall either provide a copy of the request to the applicable employee organization or confirm that the employee has sent it a copy, and shall provide the organization five days in which to advise the public school employer whether the request is in conformity with the authorization. Employee requests to cancel or change authorizations for payroll deductions for employee organizations shall be directed to the employee organization rather than to the governing board. The governing board shall rely on information provided by the employee organizations statement that the request is not in conformity with the authorization, organization regarding whether deductions for an employee organization were properly canceled or changed, and the employee organization shall indemnify the public school employer for any claims made by the employee for deductions made in reliance on that statement. information.
(f)After receiving notification from a certified or recognized employee organization that it possesses a written authorization for deduction, the governing board shall commence the first deduction in the next pay period following the closing date for receipt of changes in pay warrants. A certified or recognized employee organization that certifies that it has and will maintain individual employee authorizations shall not be required to submit to the governing board of a public school employer a copy of the employees written authorization in order for the payroll deductions described in this section to be effective, unless a dispute arises about the existence or terms of the written authorization. The employee organization shall indemnify the public school employer for any claims made by the employee for deductions made in reliance on its notification.
SEC. 2.Section 87833 of the Education Code is amended to read:87833.(a)Except as provided in Section 87834, the governing board of each community college district, when drawing an order for the salary payment due to an academic employee of the district, shall reduce the order by the amount which the board has been requested in a revocable written authorization by the employee to deduct for the purpose of paying the dues of the employee for membership in any local professional organization, or in any statewide professional organization, or in any other professional organization affiliated or otherwise connected with a statewide professional organization which authorizes the statewide organization to receive membership dues on its behalf, or to deduct for the purpose of paying dues in, or for any other service, program, or committee provided or sponsored by, any certified or recognized employee organization, of which the employee is a bargaining unit member, whose membership consists, in whole or in part, of employees of the community college district, and which has as one of its objectives improvements in the terms and conditions of employment for the advancement of the welfare of the employees. Any revocation of a written authorization shall be in writing and shall be effective commencing with the next pay period, provided the revocation complies with the terms of the written authorization.
(b)Unless otherwise provided in an agreement negotiated pursuant to Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code, the governing board shall, no later than the 10th day of each pay period for academic employees, draw its order upon the funds of the district in favor of the organization designated by the employee for an amount equal to the total of the dues or other deductions made with respect to that organization for the previous pay period and shall transmit the total amount to that organization no later than the 15th day of each pay period for academic employees. When timely transmittal of dues or other payments by a county is necessary for a community college district to comply with the provisions of this section, the county shall act in a timely manner. The board shall deduct from the amount transmitted to the organization on whose account the dues or other payments were deducted reasonable, one-time startup costs of making deductions. These deductions shall not exceed the actual cost to the district to start making the deductions.
(c)The revocable written authorization shall remain in effect until expressly revoked in writing by the employee, pursuant to the terms of the written authorization. Whenever there is a change in the amount required for the payment to the organization, the employee organization shall provide the employee with adequate and necessary data on the change at a time sufficiently prior to the effective date of the change to allow the employee an opportunity to revoke the written authorization, if desired and if permitted by the terms of the written authorization. The employee organization shall provide the public school employer with notification of the change at a time sufficiently prior to the effective date of the change to allow the employer an opportunity to make the necessary adjustments and with a copy of the notification of the change which has been sent to all concerned employees.
(d)The governing board shall not require the completion of a new deduction authorization when a dues or other change has been effected or at any other time without the express approval of the concerned employee organization.
(e)The governing board shall honor the terms of the employees written authorization for payroll deductions. Prior to processing a revocation request, the governing board shall either provide a copy of the request to the applicable employee organization or confirm that the employee has sent it a copy, and shall provide the organization five days in which to advise the district whether the request is in conformity with the authorization. Employee requests to cancel or change authorizations for payroll deductions for employee organizations shall be directed to the employee organization rather than to the governing board. The governing board shall rely on information provided by the employee organizations statement that the request is not in conformity with the authorization, organization regarding whether deductions for an employee organization were properly canceled or changed, and the employee organization shall indemnify the district for any claims made by the employee for deductions made in reliance on that statement. information.
(f)After receiving notification from a certified or recognized employee organization that it possesses a written authorization for deduction, the governing board of the community college shall commence the first deduction in the next pay period following the closing date for receipt of changes in pay warrants. A certified or recognized employee organization that certifies that it has and will maintain individual employee authorizations shall not be required to submit to the governing board of a community college district a copy of the employees written authorization in order for the payroll deductions described in this section to be effective, unless a dispute arises about the existence or terms of the written authorization. The employee organization shall indemnify the district for any claims made by the employee for deductions made in reliance on its notification.
SEC. 3.Section 1150 of the Government Code is amended to read:1150.As used in this article:
(a)State employee means all persons who receive wages for services through the uniform payroll system established and administered by the Controller under Section 12470.
(b)Public agency includes counties, cities, municipal corporations, political subdivisions, public districts, and other public agencies of the state.
(c)Employee organization means an organization which represents employees of a public employer and that has been recognized or certified by the public employer or the Public Employment Relations Board as the exclusive representative of the employees.
(d)Bona fide association means an organization of employees and former employees of an agency of the state and the California State University, and which does not have as one of its purposes representing these employees in their employer-employee relations.
(e)Deduction does not include direct deposit by electronic fund transfer, as authorized by Sections 7506 and 12480.
(f)(1)Public employer means the state, the Regents of the University of California, the Trustees of the California State University and the California State University, the Judicial Council, a trial court, a county, city, district, public authority, including transit district, public agency, or any other political subdivision or public corporation of the state, except as provided in paragraph (2).
(2)A public school employer or community college district is not a public employer for purposes of transmittal of payroll deductions to professional organizations or employee organizations. These entities shall be governed by Sections 45060, 45168, 87833, and 88167 of the Education Code, as may be applicable.
SEC. 4.Section 1152 of the Government Code is amended to read:1152.Deductions may be requested by employee organizations and bona fide associations from the salaries and wages of their members, and public employers shall honor these requests, as follows:
(a) Employee organizations may request membership dues, initiation fees, and general assessments, as well as payment of any other membership benefit program sponsored by the organization.
(b)Bona fide associations may request membership dues and initiation fees.
The Controller shall not be required to make any benefit deductions for an employee member whose membership dues are not deducted.
SEC. 5.Section 1153 of the Government Code is amended to read:1153.The public employer or the Controller shall provide for the administration of payroll deductions as set forth in Sections 1151, 1151.5, 1152, and 1157.3, salary reductions pursuant to Section 12420.2, and may establish, by rule or regulation, procedures for those purposes, after the public employer or the state meets and confers with the applicable employee organization.
In administering these programs the public employer or the Controller shall:
(a)Make, cancel, or change a deduction or reduction at the request of the person or organization authorized to receive the deduction or reduction. All requests to the Controller shall be made on forms approved by the Controller.
(b)Obtain a certification from any state agency, employee organization, or business entity requesting a deduction or reduction that they have and will maintain an authorization, signed by the individual from whose salary or wages the deduction or reduction is to be made. An employee organization that certifies that it has and will maintain individual employee authorizations shall not be required to provide a copy of an individual authorization to the public employer or the Controller unless a dispute arises about the existence or terms of the authorization.
(c)Provide for an agreement from individuals, organizations, and business entities receiving services to relieve the state, its officers and employees, of any liability that may result from making, canceling, or changing requested deductions or reductions. However, no financial institution receiving a payroll service pursuant to this section shall be required to reimburse the state for any error in the payroll service received by that financial institution after 90 days from the month in which the payroll service was deducted from an individuals paycheck.
(d)Determine the cost of performing the requested service and collect that cost from the organization, entity, or individual requesting or authorizing the service. If the requestor is an employee organization, the public employer or the Controller may charge the employee organization reasonable one-time startup costs, if any, for making the deductions. The public employer may continue to charge an employee organization for other costs of making the deductions if the employee organization is required to pay those costs pursuant to an agreement entered into before January 1, 2019. The Controller may charge employee organizations the costs of making deductions as required by the Controllers policies.
(e)Prior to making a deduction for an employee organization or a bona fide association, determine that the organization or association has been recognized, certified, or registered by the appropriate authority. The Controller shall decline to make deductions for any individual, organization, or entity if the Controller determines that it is not administratively feasible or practical to make the deduction, or if the Controller determines that the individual, organization, or entity requesting or receiving the deduction has failed to comply with any statute, rule, regulation, or procedure for the administration of deductions.
(f)After receiving notification from the employee organization that it possesses a written authorization for deduction, commence the first deduction in the next pay period following the closing date for receipt of changes in pay warrants. The employee organization shall indemnify the public employer or Controller for any claims made by the employee for deductions made in reliance on that notification.
(g)Make, cancel, or change a deduction or reduction not later than the month subsequent to the month in which the request is received, except that a deduction for an employee organization can be revoked only pursuant to the terms of the employees written authorization. Prior to processing a revocation request, the public employer or Controller shall either provide a copy of the request to the employee organization, or confirm that the employee has sent it a copy, and shall provide the organization five days in which to advise the public employer or Controller whether the request is in conformity with the authorization. Employee requests to cancel or change deductions for employee organizations shall be directed to the employee organization, rather than to the public employer or Controller. The public employer or Controller shall rely on information provided by the employee organizations statement that the request is not in conformity with the authorization, organization regarding whether deductions for an employee organization were properly canceled or changed, and the employee organization shall indemnify the public employer or Controller for any claims made by the employee for deductions made in reliance on that statement. information. Except as provided in subdivision (c), all cancellations or changes shall be effective when made by the public employer or the Controller.
(h)At the request of a state agency, transfer employee deduction authorization for a state-sponsored benefit program from one provider to another if the benefit and the employee contribution remain substantially the same. Notice of the transfer shall be given by the Controller to all affected employees.
SEC. 6.Section 1157.3 of the Government Code is amended to read:1157.3.(a)Employees, including retired employees, of a public employer in addition to any other purposes authorized in this article, may also authorize deductions to be made from their salaries, wages, or retirement allowances for the payment of dues in, or for any other service, program, or committee provided or sponsored by, any employee organization whose membership is comprised, in whole or in part, of employees of the public employer and employees of such organization and which has as one of its objectives improvements in the terms or conditions of employment for the advancement of the welfare of the employees.
(b)The public employer shall honor employee authorizations for the deductions described in subdivision (a). The revocability of an authorization shall be determined by the terms of the authorization.
SEC. 7.Section 1157.10 of the Government Code is repealed.SEC. 8.Section 71638 of the Government Code is amended to read:71638.A trial court employee shall have the right to authorize, and the trial court employer shall honor, a dues deduction from his or her salary or wages as provided in Section 1152, 1153, 1157.1, 1157.2, 1157.3, 1157.4, 1157.5, or 1157.7.
SEC. 9.Section 71824 of the Government Code is amended to read:71824.A court interpreter may authorize, and the trial court employer shall honor, a dues deduction from his or her salary or wages as provided in Section 1152, 1153, 1157.1, 1157.2, 1157.3, 1157.4, 1157.5, or 1157.7.
SEC. 10.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)Except as provided in Section 45061, the governing board of each school district, when drawing an order for the salary payment due to a certificated employee of the district, shall reduce the order by the amount which it has been requested in a revocable written authorization by the employee to deduct for the purpose of paying the dues of the employee for membership in any local professional organization or in any statewide professional organization, or in any other professional organization affiliated or otherwise connected with a statewide professional organization which authorizes the statewide organization to receive membership dues on its behalf, or to deduct for the purpose of paying dues in, or for any other service, program, or committee provided or sponsored by, any certified or recognized employee organization, of which the employee is a bargaining unit member, whose membership consists, in whole or in part, of employees of the school district, public school employer, and which has as one of its objectives improvements in the terms or conditions of employment for the advancement of the welfare of the employees. Any revocation of a written authorization shall be in writing and shall be effective commencing with the next pay period provided the revocation complies with the terms of the written authorization.
(b)Unless otherwise provided in an agreement negotiated pursuant to Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code, the governing board shall, no later than the 10th day of each pay period for certificated employees, draw its order upon the funds of the district employer in favor of the organization designated by the employee for an amount equal to the total of the dues or other deductions made with respect to that organization for the previous pay period and shall transmit the total amount to that organization no later than the 15th day of each pay period for certificated employees. When timely transmittal of dues or other payments by a county is necessary for a school district public school employer to comply with the provisions of this section, the county shall act in a timely manner. The governing board shall deduct from the amount transmitted to the organization on whose account the dues or other payments were deducted reasonable, one-time startup costs of making deductions. These deductions shall not exceed the actual cost to the district employer to start making the deductions.
(c)The revocable written authorization shall remain in effect until expressly revoked in writing by the employee, pursuant to the terms of the written authorization. Whenever there is a change in the amount required for the payment to the organization, the employee organization shall provide the employee with adequate and necessary data on the change at a time sufficiently prior to the effective date of the change to allow the employee an opportunity to revoke the written authorization, if desired and if permitted by the terms of the written authorization. The employee organization shall provide the public school employer with notification of the change at a time sufficiently prior to the effective date of the change to allow the employer an opportunity to make the necessary adjustments and with a copy of the notification of the change which has been sent to all concerned employees.
(d)The governing board shall not require the completion of a new deduction authorization when a dues or other change has been effected or at any other time without the express approval of the concerned employee organization.
(e)The governing board shall honor the terms of the employees written authorization for payroll deductions. Prior to processing a revocation request, the governing board shall either provide a copy of the request to the applicable employee organization or confirm that the employee has sent it a copy, and shall provide the organization five days in which to advise the district public school employer whether the request is in conformity with the authorization. The governing board may shall rely on the employee organizations statement that the request is not in conformity with the authorization, and the employee organization shall indemnify the district public school employer for any claims made by the employee for deductions made in reliance on that statement.
(f)After receiving notification from a certified or recognized employee organization that it possesses a written authorization for deduction, the governing board shall commence the first deduction in the next pay period following the closing date for receipt of changes in pay warrants. A certified or recognized employee organization that certifies that it has and will maintain individual employee authorizations shall not be required to submit to the governing board of a school district public school employer a copy of the employees written authorization in order for the payroll deductions described in this section to be effective, unless a dispute arises about the existence or terms of the written authorization. The employee organization shall indemnify the district public school employer for any claims made by the employee for deductions made in reliance on its notification.
SEC. 2.Section 87833 of the Education Code is amended to read:87833.(a)Except as provided in Section 87834, the governing board of each community college district, when drawing an order for the salary payment due to an academic employee of the district, shall reduce the order by the amount which the board has been requested in a revocable written authorization by the employee to deduct for the purpose of paying the dues of the employee for membership in any local professional organization, or in any statewide professional organization, or in any other professional organization affiliated or otherwise connected with a statewide professional organization which authorizes the statewide organization to receive membership dues on its behalf, or to deduct for the purpose of paying dues in, or for any other service, program, or committee provided or sponsored by, any certified or recognized employee organization, of which the employee is a bargaining unit member, whose membership consists, in whole or in part, of employees of the community college district, and which has as one of its objectives improvements in the terms and conditions of employment for the advancement of the welfare of the employees. Any revocation of a written authorization shall be in writing and shall be effective commencing with the next pay period, provided the revocation complies with the terms of the written authorization.
(b)Unless otherwise provided in an agreement negotiated pursuant to Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code, the governing board shall, no later than the 10th day of each pay period for academic employees, draw its order upon the funds of the district in favor of the organization designated by the employee for an amount equal to the total of the dues or other deductions made with respect to that organization for the previous pay period and shall transmit the total amount to that organization no later than the 15th day of each pay period for academic employees. When timely transmittal of dues or other payments by a county is necessary for a community college district to comply with the provisions of this section, the county shall act in a timely manner. The board shall deduct from the amount transmitted to the organization on whose account the dues or other payments were deducted reasonable, one-time startup costs of making deductions. These deductions shall not exceed the actual cost to the district to start making the deductions.
(c)The revocable written authorization shall remain in effect until expressly revoked in writing by the employee, pursuant to the terms of the written authorization. Whenever there is a change in the amount required for the payment to the organization, the employee organization shall provide the employee with adequate and necessary data on the change at a time sufficiently prior to the effective date of the change to allow the employee an opportunity to revoke the written authorization, if desired and if permitted by the terms of the written authorization. The employee organization shall provide the public school employer with notification of the change at a time sufficiently prior to the effective date of the change to allow the employer an opportunity to make the necessary adjustments and with a copy of the notification of the change which has been sent to all concerned employees.
(d)The governing board shall not require the completion of a new deduction authorization when a dues or other change has been effected or at any other time without the express approval of the concerned employee organization.
(e)The governing board shall honor the terms of the employees written authorization for payroll deductions. Prior to processing a revocation request, the governing board shall either provide a copy of the request to the applicable employee organization or confirm that the employee has sent it a copy, and shall provide the organization five days in which to advise the district whether the request is in conformity with the authorization. The governing board may shall rely on the employee organizations statement that the request is not in conformity with the authorization, and the employee organization shall indemnify the district for any claims made by the employee for deductions made in reliance on that statement.
(f)After receiving notification from a certified or recognized employee organization that it possesses a written authorization for deduction, the governing board of the community college shall commence the first deduction in the next pay period following the closing date for receipt of changes in pay warrants. A certified or recognized employee organization that certifies that it has and will maintain individual employee authorizations shall not be required to submit to the governing board of a community college district a copy of the employees written authorization in order for the payroll deductions described in this section to be effective, unless a dispute arises about the existence or terms of the written authorization. The employee organization shall indemnify the district for any claims made by the employee for deductions made in reliance on its notification.
SEC. 3.Section 1150 of the Government Code is amended to read:1150.As used in this article:
(a)State employee means all persons who receive wages for services through the uniform payroll system established and administered by the Controller under Section 12470.
(b)Public agency includes counties, cities, municipal corporations, political subdivisions, public districts, and other public agencies of the state.
(c)Employee organization means an organization which represents employees of a public employer and that has been recognized or certified by the public employer or the Public Employment Relations Board as the exclusive representative of the employees.
(d)Bona fide association means an organization of employees and former employees of an agency of the state and the California State University, and which does not have as one of its purposes representing these employees in their employer-employee relations.
(e)Deduction does not include direct deposit by electronic fund transfer, as authorized by Sections 7506 and 12480.
(f)(1)Public employer means the state, the Regents of the University of California, the Trustees of the California State University and the California State University, the Judicial Council, a trial court, a county, city, district, public authority, including transit district, public agency, or any other political subdivision or public corporation of the state, except as provided in paragraph (2).
(2)A school district public school employer or community college district is not a public employer for purposes of transmittal of payroll deductions to professional organizations or employee organizations. These entities shall be governed by Sections 45060, 45168, 87833, and 88167 of the Education Code, as may be applicable.
SEC. 4.Section 1152 of the Government Code is amended to read:1152.Deductions may be requested by employee organizations and bona fide associations from the salaries and wages of their members, and public employers shall honor these requests, as follows:
(a) Employee organizations may request membership dues, initiation fees, and general assessments, as well as payment of any other membership benefit program sponsored by the organization.
(b)Bona fide associations may request membership dues and initiation fees.
The Controller shall not be required to make any benefit deductions for an employee member whose membership dues are not deducted.
SEC. 5.Section 1153 of the Government Code is amended to read:1153.The public employer or the Controller shall provide for the administration of payroll deductions as set forth in Sections 1151, 1151.5, 1152, and 1157.3, salary reductions pursuant to Section 12420.2, and may establish, by rule or regulation, procedures for those purposes, after the public employer or the state meets and confers with the applicable employee organization.
In administering these programs the public employer or the Controller shall:
(a)Make, cancel, or change a deduction or reduction at the request of the person or organization authorized to receive the deduction or reduction.
(b)Obtain a certification from any state agency, employee organization, or business entity requesting a deduction or reduction that they have and will maintain an authorization, signed by the individual from whose salary or wages the deduction or reduction is to be made. An employee organization that certifies that it has and will maintain individual employee authorizations shall not be required to provide a copy of an individual authorization to the public employer or the Controller unless a dispute arises about the existence or terms of the authorization.
(c)Provide for an agreement from individuals, organizations, and business entities receiving services to relieve the state, its officers and employees, of any liability that may result from making, canceling, or changing requested deductions or reductions. However, no financial institution receiving a payroll service pursuant to this section shall be required to reimburse the state for any error in the payroll service received by that financial institution after 90 days from the month in which the payroll service was deducted from an individuals paycheck.
(d)Determine the cost of performing the requested service and collect that cost from the organization, entity, or individual requesting or authorizing the service. If the requestor is an employee organization, the public employer or the Controller may charge the employee organization reasonable one-time startup costs, if any, for making the deductions.
(e)Prior to making a deduction for an employee organization or a bona fide association, determine that the organization or association has been recognized, certified, or registered by the appropriate authority.
(f)After receiving notification from the employee organization that it possesses a written authorization for deduction, commence the first deduction in the next pay period following the closing date for receipt of changes in pay warrants. The employee organization shall indemnify the public employer or Controller for any claims made by the employee for deductions made in reliance on that notification.
(g)Make, cancel, or change a deduction or reduction not later than the month subsequent to the month in which the request is received, except that a deduction for an employee organization can be revoked only pursuant to the terms of the employees written authorization. Prior to processing a revocation request, the public employer or Controller shall either provide a copy of the request to the employee organization, or confirm that the employee has sent it a copy, and shall provide the organization five days in which to advise the public employer or Controller whether the request is in conformity with the authorization. The public employer or Controller may shall rely on the employee organizations statement that the request is not in conformity with the authorization, and the employee organization shall indemnify the public employer or Controller for any claims made by the employee for deductions made in reliance on that statement. Except as provided in subdivision (c), all cancellations or changes shall be effective when made by the public employer or the Controller.
(h)At the request of a state agency, transfer employee deduction authorization for a state-sponsored benefit program from one provider to another if the benefit and the employee contribution remain substantially the same. Notice of the transfer shall be given by the Controller to all affected employees.
SEC. 6.Section 1157.3 of the Government Code is amended to read:1157.3.(a)Employees, including retired employees, of a public employer in addition to any other purposes authorized in this article, may also authorize deductions to be made from their salaries, wages, or retirement allowances for the payment of dues in, or for any other service, program, or committee provided or sponsored by, any employee organization whose membership is comprised, in whole or in part, of employees of the public employer and employees of such organization and which has as one of its objectives improvements in the terms or conditions of employment for the advancement of the welfare of the employees.
(b)The public employer shall honor employee authorizations for the deductions described in subdivision (a). The revocability of an authorization shall be determined by the terms of the authorization.
SEC. 7.Section 1157.10 of the Government Code is repealed.SEC. 8.Section 71638 of the Government Code is amended to read:71638.A trial court employee shall have the right to authorize, and the trial court employer shall honor, a dues deduction from his or her salary or wages as provided in Section 1152, 1153, 1157.1, 1157.2, 1157.3, 1157.4, 1157.5, or 1157.7.
SEC. 9.Section 71824 of the Government Code is amended to read:71824.A court interpreter may authorize, and the trial court employer shall honor, a dues deduction from his or her salary or wages as provided in Section 1152, 1153, 1157.1, 1157.2, 1157.3, 1157.4, 1157.5, or 1157.7.
SEC. 10.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)Except as provided in Section 45061, the governing board of each school district, when drawing an order for the salary payment due to a certificated employee of the district, shall with or without charge reduce the order by the amount which it has been requested in a revocable written authorization by the employee to deduct for the purpose of paying the dues of the employee for membership in any local professional organization or in any statewide professional organization, or in any other professional organization affiliated or otherwise connected with a statewide professional organization which authorizes the statewide organization to receive membership dues on its behalf and for the purpose of paying his or her pro rata share of the costs incurred by the district in making the deduction. No charge shall exceed the actual cost to the district of the dues deduction. behalf, or to deduct for the purpose of paying dues in, or for any other service, program, or committee provided or sponsored by, any certified or recognized employee organization, of which the employee is a bargaining unit member, whose membership consists, in whole or in part, of employees of the school district, and which has as one of its objectives improvements in the terms or conditions of employment for the advancement of the welfare of the employees. Any revocation of a written authorization shall be in writing and shall be effective commencing with the next pay period. period provided the revocation complies with the terms of the written authorization.
Unless(b)Unless otherwise provided in an agreement negotiated pursuant to Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code, the governing board shall, no later than the 10th day of each pay period for certificated employees, draw its order upon the funds of the district in favor of the organization designated by the employee for an amount equal to the total of the dues or other deductions made with respect to that organization for the previous pay period and shall transmit the total amount to that organization no later than the 15th day of each pay period for certificated employees. When timely transmittal of dues or other payments by a county is necessary for a school district to comply with the provisions of this section, the county shall act in a timely manner. If the employees of a district do not authorize the board to make a deduction to pay their pro rata share of the costs of making deductions for the payment of dues, the The governing board shall deduct from the amount transmitted to the organization on whose account the dues or other payments were deducted the actual reasonable, one-time startup costs of making the deduction. deductions. These deductions shall not exceed the actual cost to the district to start making the deductions.
The(c)The revocable written authorization shall remain in effect until expressly revoked in writing by the employee. employee, pursuant to the terms of the written authorization. Whenever there is a change in the amount required for the payment to the organization, the employee organization shall provide the employee with adequate and necessary data on the change at a time sufficiently prior to the effective date of the change to allow the employee an opportunity to revoke the written authorization, if desired. desired and if permitted by the terms of the written authorization. The employee organization shall provide the public school employer with notification of the change at a time sufficiently prior to the effective date of the change to allow the employer an opportunity to make the necessary adjustments and with a copy of the notification of the change which has been sent to all concerned employees.
The(d)The governing board shall not require the completion of a new deduction authorization when a dues or other change has been effected or at any other time without the express approval of the concerned employee organization.
(e)The governing board shall honor the terms of the employees written authorization for payroll deductions. Prior to processing a revocation request, the governing board shall either provide a copy of the request to the applicable employee organization or confirm that the employee has sent it a copy, and shall provide the organization five days in which to advise the district whether the request is in conformity with the authorization. The governing board may rely on the employee organizations statement that the request is not in conformity with the authorization, and the employee organization shall indemnify the district for any claims made by the employee for deductions made in reliance on that statement.
(f)After receiving notification from a certified or recognized employee organization that it possesses a written authorization for deduction, the governing board shall commence the first deduction in the next pay period following the closing date for receipt of changes in pay warrants. A certified or recognized employee organization that certifies that it has and will maintain individual employee authorizations shall not be required to submit to the governing board of a school district a copy of the employees written authorization in order for the payroll deductions described in this section to be effective, unless a dispute arises about the existence or terms of the written authorization. The employee organization shall indemnify the district for any claims made by the employee for deductions made in reliance on its notification.
SEC. 2.Section 87833 of the Education Code is amended to read:87833.(a)Except as provided in Section 87834, the governing board of each community college district, when drawing an order for the salary payment due to an academic employee of the district, shall with or without charge reduce the order by the amount which the board has been requested in a revocable written authorization by the employee to deduct for the purpose of paying the dues of the employee for membership in any local professional organization, or in any statewide professional organization, or in any other professional organization affiliated or otherwise connected with a statewide professional organization which authorizes the statewide organization to receive membership dues on its behalf and for the purpose of paying his or her pro rata share of the costs incurred by the district in making the deduction. No charge shall exceed the actual cost to the district of the dues deduction. behalf, or to deduct for the purpose of paying dues in, or for any other service, program, or committee provided or sponsored by, any certified or recognized employee organization, of which the employee is a bargaining unit member, whose membership consists, in whole or in part, of employees of the community college district, and which has as one of its objectives improvements in the terms and conditions of employment for the advancement of the welfare of the employees. Any revocation of a written authorization shall be in writing and shall be effective commencing with the next pay period. period, provided the revocation complies with the terms of the written authorization.
Unless(b)Unless otherwise provided in an agreement negotiated pursuant to Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code, the governing board shall, no later than the 10th day of each pay period for academic employees, draw its order upon the funds of the district in favor of the organization designated by the employee for an amount equal to the total of the dues or other deductions made with respect to that organization for the previous pay period and shall transmit the total amount to that organization no later than the 15th day of each pay period for academic employees. When timely transmittal of dues or other payments by a county is necessary for a community college district to comply with the provisions of this section, the county shall act in a timely manner. If the employees of a district do not authorize the board to make a deduction to pay their pro rata share of the costs of making deductions for the payment of dues, the The board shall deduct from the amount transmitted to the organization on whose account the dues or other payments were deducted the actual reasonable, one-time startup costs of making the deduction. deductions. These deductions shall not exceed the actual cost to the district to start making the deductions.
The(c)The revocable written authorization shall remain in effect until expressly revoked in writing by the employee. employee, pursuant to the terms of the written authorization. Whenever there is a change in the amount required for the payment to the organization, the employee organization shall provide the employee with adequate and necessary data on the change at a time sufficiently prior to the effective date of the change to allow the employee an opportunity to revoke the written authorization, if desired. desired and if permitted by the terms of the written authorization. The employee organization shall provide the public school employer with notification of the change at a time sufficiently prior to the effective date of the change to allow the employer an opportunity to make the necessary adjustments and with a copy of the notification of the change which has been sent to all concerned employees.
The(d)The governing board shall not require the completion of a new deduction authorization when a dues or other change has been effected or at any other time without the express approval of the concerned employee organization.
(e)The governing board shall honor the terms of the employees written authorization for payroll deductions. Prior to processing a revocation request, the governing board shall either provide a copy of the request to the applicable employee organization or confirm that the employee has sent it a copy, and shall provide the organization five days in which to advise the district whether the request is in conformity with the authorization. The governing board may rely on the employee organizations statement that the request is not in conformity with the authorization, and the employee organization shall indemnify the district for any claims made by the employee for deductions made in reliance on that statement.
(f)After receiving notification from a certified or recognized employee organization that it possesses a written authorization for deduction, the governing board of the community college shall commence the first deduction in the next pay period following the closing date for receipt of changes in pay warrants. A certified or recognized employee organization that certifies that it has and will maintain individual employee authorizations shall not be required to submit to the governing board of a community college district a copy of the employees written authorization in order for the payroll deductions described in this section to be effective, unless a dispute arises about the existence or terms of the written authorization. The employee organization shall indemnify the district for any claims made by the employee for deductions made in reliance on its notification.
SEC. 3.Section 1150 of the Government Code is amended to read:1150.As used in this article:
(a)State employee means all persons who receive wages for services through the uniform payroll system established and administered by the Controller under Section 12470.
(b)Public agency includes counties, cities, municipal corporations, political subdivisions, public districts, and other public agencies of the state.
(c)Employee organization means an organization which represents employees of the state or the California State University in their employer-employee relations, and which is registered with the Department of Human Resources or the Trustees of the California State University, or which of a public employer and that has been recognized or certified by the public employer or the Public Employment Relations Board. Board as the exclusive representative of the employees.
(d)Bona fide association means an organization of employees and former employees of an agency of the state and the California State University, and which does not have as one of its purposes representing these employees in their employer-employee relations.
(e)Deduction does not include direct deposit by electronic fund transfer, as authorized by Sections 7506 and 12480.
(f)(1)Public employer means the state, the Regents of the University of California, the Trustees of the California State University and the California State University, the Judicial Council, a trial court, a county, city, district, public authority, including transit district, public agency, or any other political subdivision or public corporation of the state, except as provided in paragraph (2).
(2)A school district or community college district is not a public employer for purposes of transmittal of payroll deductions to professional organizations or employee organizations. These entities shall be governed by Sections 45060, 45168, 87833, and 88167 Education Code, as may be applicable.
SEC. 4.Section 1152 of the Government Code is amended to read:1152.Deductions may be requested by employee organizations and bona fide associations from the salaries and wages of their members, and public employers shall honor these requests, as follows:
(a) Employee organizations may request membership dues, initiation fees, and general assessments, as well as payment of any other membership benefit program sponsored by the organization.
(b)Bona fide associations may request membership dues and initiation fees.
The Controller shall not be required to make any benefit deductions for an employee member whose membership dues are not deducted.
SEC. 5.Section 1153 of the Government Code is amended to read:1153.The public employer or the Controller shall provide for the administration of payroll deductions as set forth in Sections 1151, 1151.5, and 1152, 1152, and 1157.3, salary reductions pursuant to Section 12420.2, and may establish, by rule or regulation, procedures for that purpose. those purposes, after the public employer or the state meets and confers with the applicable employee organization.
In administering these programs the public employer or the Controller shall:
(a)Make, cancel, or change a deduction or reduction at the request of the person or organization authorized to have receive the deduction or reduction. All requests shall be made on forms approved by the Controller.
(b)Obtain a certification from any state agency, employee organization, or business entity requesting a deduction or reduction that they have and will maintain an authorization, signed by the individual from whose salary or wages the deduction or reduction is to be made. An employee organization that certifies that it has and will maintain individual employee authorizations shall not be required to provide a copy of an individual authorization to the public employer or the Controller unless a dispute arises about the existence or terms of the authorization.
(c)Provide for an agreement from individuals, organizations, and business entities receiving services to relieve the state, its officers and employees, of any liability that may result from making, canceling, or changing requested deductions or reductions. However, no financial institution receiving a payroll service pursuant to this section shall be required to reimburse the state for any error in the payroll service received by that financial institution after 90 days from the month in which the payroll service was deducted from an individuals paycheck.
(d)Determine the cost of performing the requested service and collect that cost from the organization, entity, or individual requesting or authorizing the service. Services requested which are incidental, but not necessary, to making the deduction may be performed at the Controllers discretion with any additional cost to be paid by the requester. At least 30 days prior to implementation of any adjustment of employee costs pursuant to Section 12420.2, the Controller shall notify in writing any affected employee organization. If the requestor is an employee organization, the public employer or the Controller may charge the employee organization reasonable one-time startup costs, if any, for making the deductions.
(e)Prior to making a deduction for an employee organization or a bona fide association, determine that the organization or association has been recognized, certified, or registered by the appropriate authority.
(f)Decline to make salary services for any individual, organization, or entity if the Controller determines that it is not administratively feasible or practical, or if the Controller determines that the individual, organization, or entity requesting or receiving the salary service has failed to comply with any statute, rule, regulation, or procedure for the administration of salary services.(f)After receiving notification from the employee organization that it possesses a written authorization for deduction, commence the first deduction in the next pay period following the closing date for receipt of changes in pay warrants. The employee organization shall indemnify the public employer or Controller for any claims made by the employee for deductions made in reliance on that notification.
(g)Make, cancel, or change a deduction or reduction not later than the month subsequent to the month in which the request is received. received, except that a deduction for an employee organization can be revoked only pursuant to the terms of the employees written authorization. Prior to processing a revocation request, the public employer or Controller shall either provide a copy of the request to the employee organization, or confirm that the employee has sent it a copy, and shall provide the organization five days in which to advise the public employer or Controller whether the request is in conformity with the authorization. The public employer or Controller may rely on the employee organizations statement that the request is not in conformity with the authorization, and the employee organization shall indemnify the public employer or Controller for any claims made by the employee for deductions made in reliance on that statement. Except as provided in subdivision (c), all cancellations or changes shall be effective when made by the public employer or the Controller.
(h)At the request of a state agency, transfer employee deduction authorization for a state-sponsored benefit program from one provider to another if the benefit and the employee contribution remain substantially the same. Notice of the transfer shall be given by the Controller to all affected employees.
SEC. 6.Section 1157.3 of the Government Code is amended to read:1157.3.(a)Employees, including retired employees, of a public agency employer in addition to any other purposes authorized in this article, on approval of the governing body of such public agency, article, may also authorize deductions to be made from their salaries, wages, or retirement allowances for the payment of dues in, or for any other service service, program, or committee provided or sponsored by, any bona fide employee organization whose membership is comprised, in whole or in part, of employees of such agency the public employer and employees of such organization and which has as one of its objectives improvements in the terms or conditions of employment for the advancement of the welfare of such employees, such deductions to be made in accordance with the provisions made by the governing body of the public agency. the employees.
(b)The public employer shall honor employee authorizations for the deductions described in subdivision (a). The revocability of an authorization shall be determined by the terms of the authorization.
SEC. 7.Section 1157.10 of the Government Code is repealed.1157.10.Payroll deductions for state employees of public agencies, other than those under the uniform payroll system, shall be administered by the appropriate officer of the public agency. In administering payroll deductions the officer shall do all of the following:(a)Make, cancel, or change a deduction at the request of the person or organization authorized to have the deduction. All requests shall be on forms approved by the public agency.(b)Obtain a certification from any state agency, employee organization, or business entity requesting a deduction that they have, and will maintain, an authorization to make the deduction, signed by the individual from whose salary or wages the deduction is to be made.(c)Provide for an agreement from organizations and business entities receiving deductions to relieve the public agency, its officers and employees, of any liability that may result from making, canceling, or changing requested deductions.(d)Determine the cost of performing the requested deduction service and collect that cost from the organization, entity, or individual requesting or authorizing the deduction. Services requested which are incidental, but not necessary, to making the deduction may be performed at the public agencys discretion, with any additional cost to be paid by the requester.(e)Prior to making a deduction for an employee organization or a bona fide association, determine that the organization or association has been recognized or registered by the appropriate authority.(f)Decline to make deductions for any individual, organization, or entity if the public agency determines that it is not administratively feasible or practical to make the deduction.(g)Make, cancel, or change a deduction not later than the month subsequent to the month in which the request is received. All deductions, cancellations, or changes shall be effective when made by the public agency.SEC. 8.Section 71638 of the Government Code is amended to read:71638.A trial court employee shall have the right to authorize authorize, and the trial court employer shall honor, a dues deduction from his or her salary or wages in the same manner provided to public agency employees pursuant to as provided in Section 1152, 1153, 1157.1, 1157.2, 1157.3, 1157.4, 1157.5, or 1157.7.
SEC. 9.Section 71824 of the Government Code is amended to read:71824.A court interpreter may authorize authorize, and the trial court employer shall honor, a dues deduction from his or her salary or wages in the same manner provided to public agency employees pursuant to as provided in Section 1152, 1153, 1157.1, 1157.2, 1157.3, 1157.4, 1157.5, or 1157.7.
SEC. 10.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.Section 3508.5 of the Government Code is amended to read:3508.5.(a)Nothing in this chapter shall affect the right of a public employee to authorize a dues or service fees deduction from his or her salary or wages pursuant to Section 1157.1, 1157.2, 1157.3, 1157.4, 1157.5, or 1157.7.(b)A public employer shall deduct the payment of dues or service fees to a recognized employee organization as required by an agency shop arrangement between the recognized employee organization and the public employer.(c)Agency fee obligations, including, but not limited to, dues or agency fee deductions on behalf of a recognized employee organization, shall continue in effect as long as the employee organization is the recognized bargaining representative, notwithstanding the expiration of an agreement between the public employer and the recognized employee organization.(a)Nothing in this chapter shall affect the right of a public employee to authorize a dues or service fees deduction from his or her salary or wages pursuant to Section 1157.1, 1157.2, 1157.3, 1157.4, 1157.5, or 1157.7.
(b)A public employer shall deduct the payment of dues or service fees to a recognized employee organization as required by an agency shop arrangement between the recognized employee organization and the public employer.
(c)Agency fee obligations, including, but not limited to, dues or agency fee deductions on behalf of a recognized employee organization, shall continue in effect as long as the employee organization is the recognized bargaining representative, notwithstanding the expiration of any an agreement between the public employer and the recognized employee organization.
|
Date
|
Status
|
|---|---|
| Aug 6, 2018 | In committee: Hearing postponed by committee. |
| Jun 26, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 2.) (June 25). Re-referred to Com. on APPR. |
| Jun 7, 2018 | Referred to Com. on P.E. & R. |
| May 31, 2018 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 30, 2018 | Read third time. Passed. Ordered to the Senate. |
| May 25, 2018 | From committee: Do pass. (Ayes 12. Noes 4.) (May 25). |
| May 16, 2018 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| May 14, 2018 | Re-referred to Com. on APPR. |
| May 10, 2018 | From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended. |
| Apr 18, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (April 18). Re-referred to Com. on APPR. |
| Apr 10, 2018 | Re-referred to Com. on P.E., R., & S.S. |
| Apr 9, 2018 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P.E., R., & S.S. Read second time and amended. |
| Mar 21, 2018 | Re-referred to Com. on P.E., R., & S.S. |
| Mar 20, 2018 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P.E., R., & S.S. Read second time and amended. |
| Mar 19, 2018 | Referred to Com. on P.E., R., & S.S. |
| Jan 26, 2018 | From printer. May be heard in committee February 25. |
| Jan 25, 2018 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jun 25, 2018 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Public Employment and Retirement |
Passed |
|
| May 30, 2018 | AB 1937 SANTIAGO Assembly Third Reading | Assembly Floor |
Passed |
|
| May 25, 2018 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 18, 2018 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Public Employees, Retirement, and Social Security |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Aaron-Reed and Associates | * Support | Apr 18, 2018 |
| American Federation of State | * Support | Apr 18, 2018 |
| California Association Of Psychiatric Technicians | * Support | Apr 18, 2018 |
| California Conference Board Of The Amalgamated Transit Union | ** Support | Jun 21, 2018 |
| California Conference Of Machinists | ** Support | Jun 21, 2018 |
| California Federation of Teachers, AFT, AFL-CIO | ** Support | Jun 21, 2018 |
| California Labor Federation | ** Support | Jun 21, 2018 |
| California Professional Firefighters | ** Support | Jun 21, 2018 |
| California School Employees Association, AFL-CIO | ** Support | Jun 21, 2018 |
| California Teachers Association | ** Support | Jun 21, 2018 |
| California Teamsters Public Affairs Council | ** Support | Jun 21, 2018 |
| California-Nevada Conference Of Operating Engineers | ** Support | Apr 17, 2018 |
| League of California State | * Neutral | Apr 18, 2018 |
| Los Angeles County Professional Peace Officers Association | ** Support | Jun 21, 2018 |
| Organization Of Smud Employees | ** Support | Jun 21, 2018 |
| Professional and Technical Engineers, IFPTE Local 21, AFL-CIO | ** Support | Jun 21, 2018 |
| Riverside Sheriffs' Association | ** Support | Jun 21, 2018 |
| San Diego County Court Employees Association | ** Support | Jun 21, 2018 |
| Service Employees International Union, California | ** Support | Jun 21, 2018 |
| Teamsters Amalgamated Transit Union and Machinists | * Support | Apr 18, 2018 |
| UDW Absteny Local 3930 | * Support | Apr 18, 2018 |
| United Public Employees | ** Support | Jun 21, 2018 |
SENATE COMMITTEE ON
PUBLIC EMPLOYMENT AND RETIREMENT
Dr. Richard Pan, Chair
2017 - 2018 Regular
Bill No: AB 1937 Hearing Date: 6/25/18
Author: | Santiago | ||
Version: | 5/10/18 As amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Korinne Sugasawara | ||
Subject: Public employment: payroll deductions.
SOURCE: Service Employees International Union, California (co-source)
Los Angeles County Professional Peace Officers Association
(co-source)
Organization of SMUD Employees (co-source)
San Diego County Court Employees Association (co-source)
United Public Employees (co-source)
ASSEMBLY VOTES:
Assembly Floor: | 53 - 25 |
Assembly Appropriations Committee: | 12 - 4 |
Assembly Public Employees, Retirement, and Social Security Committee: | 5 - 1 |
DIGEST: This bill makes various revisions to provisions related to school district and community college employee payroll deductions to an organization, as specified, among other provisions.
ANALYSIS:
Existing law:
- Requires school districts and community college districts to reduce the salary by the amount authorized by an employee, as specified and without charge, in a revocable written authorization for the purpose of paying the dues of the employee for membership in any local, state, or professional organization. The written authorization remains in effect until expressly revoked in writing by the employee, and is effective as of the next pay period.
- Requires an employee organization to provide the employee with adequate and necessary data on a change in the amount required for payment to the organization, at a time sufficiently prior to the effective date of the change to allow the employee an opportunity to revoke the written authorization, if desired.
- Requires an employee organization to provide the school district or community college district employer, respectively, with notice of the change at a time sufficiently prior to the effective date of a change in the amount, to allow the employer an opportunity to make the necessary adjustments, and with a copy of the notification which has been sent to all concerned employees.
- Specifies the time and manner in which a revocation of payroll deduction for the payment of dues by an employee is effective.
- Prohibits the school district or community college district, respectively, from requiring the completion of a new deduction authorization when a change in dues has been effected, or at any other time without express approval of the concerned employee organization.
- For purposes of salary and wage deduction, defines the following terms:
- “State employee” means all persons who receive wages for services through the uniform payroll system established and administered by the Controller, as specified.
- “Public agency” includes counties, cities, municipal corporations, political subdivisions, public districts, and other public agencies of the state.
- “Employee organization” means an organization which represents employees of the state or the California State University (CSU) in their employer-employee relations, and which is registered with the Department of Human Resources or the Trustees of the CSU, or which has been recognized or certified by the Public Employment Relations Board (PERB).
- “Bona fide association” means an organization of employees and former employees of an agency of the state and the CSU, and which does not have representing these employees in their employer-employee relations as one of its purposes.
- “Deduction” to not include direct deposit by electronic funds transfer, as authorized.
- Permits employee organizations and bona fide associations to request deductions from the salaries and wages of their members, as specified.
- Requires the Controller to provide for the administration of payroll and salary deductions, as specified, and permits the Controller to establish, by rule or regulation, procedures for that purpose.
- Permits an employee and retired employee of a public employer to have deducted from his or her salary, wage or retirement allowance for the payment of dues in, or for any other service provided by a bona fide organization which has as one of its objectives, improvements in the terms or conditions of employment for the advancement of the welfare of employees.
- Provides for administration, procedures, deductions, cancellations or other changes relating to payroll deduction by state employees of public agencies not under the uniform payroll system.
- Provides for dues deduction from the salary or wage of a trial court employee and court interpreter, as specified.
This bill:
- Requires school districts and community college districts to deduct dues from the wage or salary of a certificated employee or an academic employee, respectively, for payment to an organization, as specified, whose membership consists of employees of the public school employer, and which has as one of its objectives improving the terms and conditions of employment for the employees’ welfare.
- Requires the school district or community college district, respectively, to deduct from the amount transmitted to the organization reasonable one-time startup costs of making deductions.
- Specifies that such deductions must not exceed the actual cost to the employer or community college district to start making the deductions.
- Details the time and manner in which a revocation of payroll deduction for the payment of dues by an employee is effective.
- Provides that a revocable written authorization must remain in effect until expressly revoked in writing by the employee, pursuant to the terms of the written authorization.
- States that the public school employer shall not require the completion of a new deduction authorization when a dues or another change has been effected or at any other time without the express approval of the concerned employee organization.
- Requires the school district or community college district to honor the terms of the employee’s written authorization for payroll deductions. Employee requests to change or cancel authorization for payroll deductions for employee organizations shall be directed to the employee organization rather than the public school employer.
- Specifies that the public school employer shall rely on information provided by the employee organization regarding whether deductions for an employee organization were properly canceled or changed, and shall indemnify the public school employer for any claims made by the employee for deductions made in reliance on that information.
- Provides that the employee organization is not required to submit a copy of the employee’s written authorization to the public school employer or community college district for the payroll deductions to be effective, unless a dispute arises about the existence or terms of the written authorization, and that the employee organization must indemnify the public school employer or community college district for any claims made by the employee for deductions made in reliance on its notification.
- Modifies for the purpose of this bill the following definitions:
- “Employee organization” means an organization which represents employees of a public employer and that has been recognized or certified by the public employer or PERB as the exclusive representative of the employees.
- “Public employer” means the state, the Regents of the University of California, the Trustees of the California State University and the California State University, the Judicial Council, a trial court, a county, city, district, public authority, including a transit district, public agency, or any other political subdivision or public corporation of the state, as specified. Public school employers and community college districts are exempted from this definition for purposes of transmittal of payroll deductions to professional or employee organizations.
- Provides that public employers must honor requests from employee organizations and bona fide organizations for deductions from the salaries of their members. The Controller shall not be required to make any benefit deduction for an employee member whose membership dues are not deducted.
- Provides for administration of payroll deductions by the public employer or Controller, as specified, including establishing procedures by rule or regulation for those purposes, after the public employer or the state meets and confers with the applicable employee organization.
- Also makes the following specified changes regarding administration for purposes of implementation:
- Provides that the public employer or the Controller must make, cancel, or change a deduction or reduction at the request of the person or organization authorized to receive the deduction or reduction and that the public employer or Controller must rely on the employee organization’s statement regarding conformity of the authorization.
- Specifies that all requests to the Controller shall be made on forms approved by the Controller.
- Provides that an employee organization that certifies it has and will maintain individual employee authorizations are not required to provide a copy of an authorization to the public employer or Controller, unless a dispute arises about the existence or terms of the authorization.
- Permits the public employer or Controller to charge the employee organization a reasonable one-time startup cost, if any, for making the deduction. The public employer and Controller may continue to charge an employee organization for other costs of making the deductions under specified circumstances.
- Provides the pay period for which a payroll deduction commences; indemnification of the public employer or Controller by the employee organization for claims, as specified; and, the process for revocation of an authorized payroll deduction, as specified.
- Technical changes for purposes of conformity.
- Clarifies and modifies by authorizing deductions by employees and retired employees of a public employer for dues, services, programs, or committees provided or sponsored by any employee organization, as specified.
- Repeals provisions in existing law regarding payroll deductions for state employees of public agencies, other than those under the uniform payroll system.
- Makes conforming changes to provisions regarding payroll deductions for dues relating to trial court employees and court interpreters, respectively.
- Makes other technical and clarifying changes for purposes of implementation.
- Provides for reimbursement to local agencies and school districts for costs if the State Commission on Mandates determines that this measure contains costs mandated by the state.
Background
According to the author’s office,
“California has over 8 collective bargaining statutes covering public employers and their employees. These laws were all adopted at different times. While essentially providing the same rights, there are variations in the law which has led to inconsistencies on how the law is applied to employees, employers and employee organizations. One such variation in the laws surrounds the duty public employers have to engage in payroll deduction, the right of employees to request payroll deductions and their employee organizations to receive them.
AB 1937 standardizes and clarifies existing law impacting public sector employers and employee organizations with regard to their existing payroll deduction duties.”
Related/Prior Legislation
AB 2049 (Gonzalez Fletcher, 2018), currently in Senate Public Employment and Retirement Committee, requires a school district or community college to deduct from an employee’s compensation, without charge, an amount requested by a classified public school district employee for the payment of dues to an employee organization.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee, this bill would result in:
- Unknown costs to public employers, school and community college districts, and the State Controller’s Office (SCO) to update payroll systems. AB 1937 is unlikely to result in significant new payroll system costs as affected employers typically already deduct these payments…[and] the bill allows any costs associated with new payroll procedures to be reimbursed by the employee organizations.
- Potentially significant one-time costs across public employers, districts, and the SCO to develop or update procedures related to processing payroll deduction requests. Public employers may need to meet and confer with employee organizations to develop these processes. It is unlikely the costs associated with developing new processes will be significant for any single public employer or district. However…aggregate costs associated with this one-time workload are likely to be in the hundreds of thousands of dollars.
SUPPORT:
Service Employees International Union, California (co-source)
Los Angeles County Professional Peace Officers Association (co-source)
Organization of SMUD Employees (co-source)
San Diego County Court Employees Association (co-source)
United Public Employees (co-source)
California Conference Board of the Amalgamated Transit Union
California Conference of Machinists
California Federation of Teachers, AFT, AFL-CIO
California Labor Federation
California Professional Firefighters
California School Employees Association, AFL-CIO
California Teachers Association
California Teamsters Public Affairs Council
Professional and Technical Engineers, IFPTE Local 21, AFL-CIO
Riverside Sheriffs’ Association
United Domestic Workers of America, AFSCME Local 3930, AFL-CIO
OPPOSITION:
None received.
ARGUMENTS IN SUPPORT:
The California Federation of Teachers states,
“AB 1937 would reaffirm the duty of public employers to engage in payroll deductions when employees and their employee organizations requests them; would allow employers to adopt certain rules with regard to implementation subject to the meet and confer process; would establish a notification process for a public employer to provide the exclusive representative to verify whether a change to membership is in accordance with the signed membership application; would clarify the right of public employers to charge the employee organization a reasonable one-time startup cost for making the deductions; and would require employee organizations to indemnify employers against claims.
Nothing in AB 1937 is a departure from current law and practices and is consistent with the basic philosophy and structure of collective bargaining statutes and policies in California.”
The Riverside Sheriffs’ Association writes,
AB 1937 simply reaffirms and clarifies existing rights and duties of public employers and employees. Among the duties outlined in AB 1937 is the requirement of public employers to engage in payroll deductions when employees and their employee organizations request them.
AB 1937 also clarifies that employers are required to adopt certain rules with regard to implementation subject to the meet and confer process and notes that public employers have the right to charge the employee organization a reasonable one-time startup cost for making the deductions and requires employee organizations to indemnify employers against claims.
Pending legal rulings have created uncertainty for public employers and employees in regards to their various rights and duties. AB 1937 will go a long way in providing public employers and employees with clear legislative guidance, no matter the outcome of court challenges.
ASSEMBLY THIRD READING
ATR Bill Id:AB 1937
Author:(Santiago)
As Amended Ver:May 10, 2018
Majority vote
Committee | Votes | Ayes | Noes |
Public Employees | 5-1 | Rodriguez, Cervantes, Cooley, Cooper, O'Donnell | Brough |
Appropriations | 12-4 | Gonzalez Fletcher, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Friedman, Eduardo Garcia, Nazarian, Quirk, Reyes | Bigelow, Fong, Gallagher, Obernolte |
SUMMARY: Revises, recasts, and clarifies existing law related to payroll deduction for the payment of dues by an employee to an organization, among other provisions. Specifically, this bill:
- Clarifies existing law to make explicit that employee organizations and bona fide associations are authorized to request payroll deductions.
- Clarifies and makes explicit that all public employers must honor authorizations for dues deduction; that the revocability of an authorization be determined by the terms of the authorization; and, that a public employer or Controller rely on information provided by the employee organization regarding whether the request is in conformity with the authorization.
- Authorizes employers to charge an employee organization reasonable one-time startup costs, if any, of making the deductions; that the deductions shall not exceed the actual cost to the employer to start making the deductions; permits the public employer to continue to charge an employee organization for other costs of making the deductions, if the employee organization is required to pay those costs pursuant to an agreement entered into before January 1, 2019; and, authorizes the Controller to charge employee organizations the costs of making deductions, as required by the Controller's policies.
- Clarifies, by making explicit, the period in which payroll deductions commence, after the employer has received notification from a certified or recognized employee organization that it possesses a written authorization for deduction.
- Prohibits a certified or recognized employee organization that certifies it has and will maintain individual employee authorizations from being required to submit a copy of the written authorization to the public employer to commence payroll deductions, unless a dispute arises about the existence or terms of the authorization.
- Provides that the employee organization must indemnify the public employer or Controller for any claims made against them for deductions made in reliance on information from the employee organization.
- Clarifies the administration of payroll deductions and salary deductions by all public employers or the Controller for these purposes.
- Requires employee organizations to provide a public employer with notification of a change, or change in the amount, of the authorization within sufficient time for processing.
- Requires public employers or the Controller to determine that the organization or association has been recognized, certified, or registered by the appropriate authority, prior to making a deduction for an employee organization or bona fide association, and provides provisions regarding a decline by the Controller to make deductions.
- Requires public employers to make rules and regulations for the administration of payroll deductions, subject to meeting and conferring with employee organizations.
- Provides for reimbursement if the Commission on State Mandates determines that this bill contains costs mandated by the state.
- Clarifies the definition of the following terms:
- "Employee organization" to mean an organization which represents employees of a public employer and that has been recognized or certified by the public employer or the Public Employment Relations Board as the exclusive representative of the employees.
- "Public employer" to mean the state, the Regents of the University of California, the Trustees of the California State University and the California State University, the Judicial Council, a trial court, county, city, district, public authority, including transit district, public agency, or any other political subdivision or public corporation of the state. Public school employer or community college district as excepted from this definition for purposes of transmittal of payroll deductions to professional organizations or employees, as these entities are governed by certain other statutes, as may be applicable.
EXISTING LAW:
- Permits an employee and retired employee of a public employer to have deducted from his or her salary, wage or retirement allowance for the payment of dues in, or for any other service provided by a bona fide organization which has as one of its objectives, improvements in the terms or conditions of employment for the advancement of the welfare of employees. This includes a trial court employee and court interpreter.
- Requires an employee organization to provide the employee with adequate and necessary data on a change in the amount required for payment to the organization, at a time sufficiently prior to the effective date of the change to allow the employee an opportunity to revoke the written authorization, if desired.
- Requires an employee organization to provide the school district or community college district employer, respectively, with notice of the change at a time sufficiently prior to the effective date of a change in the amount, to allow the employer an opportunity to make the necessary adjustments, and with a copy of the notification which has been sent to all concerned employees.
- Specifies the time and manner in which a revocation of payroll deduction for the payment of dues by an employee is effective.
- Prohibits the school district or community college district, respectively, from requiring the completion of a new deduction authorization when a change in dues has been effected, or at any other time without express approval of the concerned employee organization.
- Requires the Controller to provide for the administration of payroll and salary deductions, and permits the Controller to establish, by rule or regulation, procedures for that purpose.
- Provides for administration, procedures, deductions, cancellations or other changes relating to payroll deduction by state employees of public agencies not under the uniform payroll system.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would result in "unknown costs to public employers, school and community college districts, and the State Controller's Office (SCO), to update payroll systems. [This bill] is unlikely to result in significant new payroll system costs as affected employers typically already deduct these payments for these employees, when applicable. Moreover, the bill allows any costs associated with new payroll procedures to be reimbursed by the employee organizations; and, potentially significant one-time costs across public employers, districts, and the SCO to develop or update procedures related to processing payroll deduction requests. Public employers may need to meet and confer with employee organizations to develop these processes. It is unlikely the costs associated with developing new processes will be significant for any single public employer or district. However, across affected state public employers and districts, aggregate costs associated with this one-time workload are likely to exceed $300,000."
COMMENTS: According to the author, "California has eight public sector collective bargaining laws that vary on employer responsibility to deduct the employee-authorized payment of union dues and fees from employees who benefit from union representation and transmit those dues and fees to the union. Assembly Bill 1937 removes any ambiguity in California law with regard to the obligation of a public employer to engage in payroll deduction of employee- authorized union dues and fees.
'[This bill] would revise and recast the statutes affecting public employers with regard to payroll deduction to standardize processes and requirements for both employers and employee organizations. Specifically, the bill would reaffirm the duty of public employers to engage in payroll deductions when employees and their employee organizations request them; would [require] employers to adopt certain rules with regard to implementation subject to the meet and confer process; would clarify the right of public employers to charge the employee organization a reasonable one-time startup cost for making the deductions; and would require employee organizations to indemnify employers against claims.
'Assembly Bill 1937 is a simple measure to contemporize, standardize and clarify existing law impacting public sector employers and employee organizations with regard to their existing payroll deduction duties."
Analysis Prepared by: Michael Bolden / P.E.,R., & S.S. / (916) 319-3957 FN: 0003287
Date of Hearing: May 16, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 1937
Author:(Santiago) – As Amended Ver:May 10, 2018
Policy Committee: | Public Employees, Retirement, and Social Security | Vote: | 5 - 1 |
|
| ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY:
This bill revises and recasts provisions related to payroll deduction for the payment of dues by an employee to an employee organization, as defined, among other provisions. Specifically, this bill:
- Specifies that school districts and community college districts (districts) must deduct from a certified or academic employee’s wage and salary the payments and dues to an employee organization, as defined, in the amount detailed in an employee’s revocable written authorization that is submitted to the employee organization. Districts must also deduct from the amount transmitted to the organization reasonable, one-time start costs of making deductions, and districts must honor the terms of the written authorization.
- Defines a “public employer” as the state, the Regents of the University of California, the Trustees of the California State University and the California State University, the Judicial Council, a trial court, a county, city, district, public authority, including transit district, public agency, or any other political subdivision or public corporation of the state.
- Specifies that a public employer or the State Controller’s Office (SCO) must provide for the administration of payroll deductions, as specified, and may establish procedures after the public employer or state meets and confers with the applicable employee organization. Public employers may charge the employee organization for start-up costs for making deductions, and changes or requests to deductions must be directed to the employee organization, who will then provide the information to the public employer or SCO.
FISCAL EFFECT:
- Unknown costs to public employers, school and community college districts, and the State Controller’s Office (SCO), to update payroll systems. AB 1937 is unlikely to result in significant new payroll system costs as affected employers typically already deduct these payments for these employees, when applicable. Moreover, the bill allows any costs associated with new payroll procedures to be reimbursed by the employee organizations.
- Potentially significant one-time costs across public employers, districts, and the SCO to develop or update procedures related to processing payroll deduction requests. Public employers may need to meet and confer with employee organizations to develop these processes. It is unlikely the costs associated with developing new processes will be significant for any single public employer or district. However, across affected state public employers and districts, aggregate costs associated with this one-time workload are likely to be in the hundreds of thousands of dollars.
COMMENTS:
- Purpose. The author notes that California has eight public sector bargaining laws that vary on employer responsibility to deduct employee-authorized payment of union dues and fees from employees. According to the author, AB 1937 will remove any ambiguity in California law with regard to the obligation of a public employer to engage in payroll deduction of employee-authorized union dues and fees. Supporters state that given the number of collective bargaining statutes covering public employers and their respective employees, the rules for payroll deductions being standardized is sensible.
- Amendments. Recent amendments submitted by the author further clarify the payroll deduction process, thereby reducing the potential costs associated with this bill. These amendments clarify that employee organizations conduct the work of receiving and transmitting relevant information related to payroll deductions rather than the public employer or district, and these amendments also add technical changes related to the SCO’s role in processing these deductions.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: April 18, 2018
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT, AND SOCIAL SECURITY
Freddie Rodriguez, Chair
ABPCA Bill Id:AB 1937 (
Author:Santiago) – As Amended Ver:April 9, 2018
SUBJECT: Public employment: payroll deductions
SUMMARY: Revises and recasts provisions related to payroll deduction for the payment of dues by an employee to an organization, as specified, among other provisions. Specifically, this bill:
1) Clarifies and modifies existing law by requiring school districts and community college districts, respectively, to deduct dues from the wage or salary of a certificated employee or an academic employee, respectively, for payment to an organization, as specified, whose membership consists of improving the terms and conditions of employment for the advancement of the employees’ welfare as one of its objectives.
2) Modifies existing law by requiring the school district or community college district, respectively, to deduct from the amount transmitted to the organization, reasonable, one-time startup costs of making deductions, and specifies that such deductions must not exceed the actual cost to the employer or community college district to start making the deductions.
3) Specifies the time and manner in which a revocation of payroll deduction for the payment of dues by an employee is effective.
4) Provides that a revocable written authorization must remain in effect until expressly revoked in writing by the employee, pursuant to the terms of the written authorization.
5) Requires the school district or community college district to honor the terms of the employee’s written authorization for payroll deductions, and that prior to processing a revocation request, the school district or community college district must either provide a copy of the request to the applicable employee organization, or confirm that the employee has sent a copy.
Also provides that the organization has five days to advise the public school employer whether the revocation request is in conformity with the authorization; requires the school district or community college district to rely on the employee organization’s statement that the request is not in conformity with the authorization; and, the employee organization to indemnify the public school employer or community college district for any claims made by the employee for deductions made in reliance on that statement.
6) Provides that the employee organization is not required to submit a copy of the employee’s written authorization to the public school employer or community college district for the payroll deductions to be effective, unless a dispute arises about the existence or terms of the written authorization, and that the employee organization must indemnify the public school employer or community college district for any claims made by the employee for deductions made in reliance on its notification.
7) Modifies or adds, for these purposes, the following definitions:
a) “Employee organization” to mean an organization which represents employees of a public employer and that has been recognized or certified by the public employer or the Public Employment Relations Board (PERB) as the exclusive representative of the employees.
b) “Public employer” to mean the state, the Regents of the University of California, the Trustees of the California State University and the California State University, the Judicial Council, a trial court, a county, city, district, public authority, including a transit district, public agency, or any other political subdivision or public corporation of the state, as specified.
Public school employers and community college districts are excepted from this definition for purposes of transmittal of payroll deductions to professional or employee organizations.
8) Provides that public employers must honor requests from employee organizations and bona fide organizations for deductions from the salaries of their members.
9) Provides for administration of payroll deductions by the public employer or Controller, as specified, including establishing procedures by rule or regulation for those purposes, after the public employer or the state meets and confers with the applicable employee organization.
Also makes the following specified changes regarding administration for purposes of implementation:
a) Provides that the public employer or the Controller must make, cancel, or change a deduction or reduction at the request of the person or organization authorized to receive the deduction or reduction, and that the public employer or Controller must rely on the employee organization’s statement regarding conformity of the authorization.
b) Provides that an employee organization that certifies that it has and will maintain individual employee authorizations are not required to provide a copy of an authorization to the public employer or Controller, unless a dispute arises about the existence or terms of the authorization.
c) Permits the public employer or Controller to charge the employee organization a reasonable one-time startup cost, if any, for making the deduction.
d) Provides the pay period for which a payroll deduction commences; indemnification of the public employer or Controller by the employee organization for claims, as specified; and, the process for revocation of an authorized payroll deduction, as specified.
e) Technical changes for purposes of conformity.
10) Clarifies and modifies by authorizing deductions by employees and retired employees of a public employer for dues, services, programs, or committees provided or sponsored by any employee organization, as specified.
11) Repeals provisions in existing law regarding payroll deductions for state employees of public agencies, other than those under the uniform payroll system.
12) Makes conforming changes to provisions regarding payroll deductions for dues relating to trial court employees and court interpreters, respectively.
13) Makes other technical and clarifying changes for purposes of implementation.
14) Provides for reimbursement to local agencies and school districts for costs if the State Commission on Mandates determines that this measure contains costs mandated by the state.
EXISTING LAW:
1) Requires school districts and community college districts, respectively, to reduce the salary by the amount authorized by an employee, as specified, in a revocable written authorization without charge, for the purpose of paying the dues of the employee for membership in any local, state or professional organization. The written authorization remains in effect until expressly revoked in writing by the employee. Any revocation of a written authorization must be in writing and is effective as of the next pay period.
2) Requires an employee organization to provide the employee with adequate and necessary data on a change in the amount required for payment to the organization, at a time sufficiently prior to the effective date of the change to allow the employee an opportunity to revoke the written authorization, if desired.
3) Requires an employee organization to provide the school district or community college district employer, respectively, with notice of the change at a time sufficiently prior to the effective date of a change in the amount, to allow the employer an opportunity to make the necessary adjustments, and with a copy of the notification of the which has been sent to all concerned employees.
4) Specifies the time and manner in which a revocation of payroll deduction for the payment of dues by an employee is effective.
5) Prohibits the school district or community college district, respectively, from requiring the completion of a new deduction authorization when a change in dues has been effected, or at any other time without express approval of the concerned employee organization.
6) For purposes of salary and wage deduction, defines the following terms:
a) “State employee” to mean all persons who receive wages for services through the uniform payroll system established and administered by the Controller, as specified.
b) “Public agency” to include counties, cities, municipal corporations, political subdivisions, public districts, and other public agencies of the state.
c) “Employee organization” to mean an organization which represents employees of the state or the California State University (CSU) in their employer-employee relations, and which is registered with the Department of Human Resources or the Trustees of the CSU, or which has been recognized or certified by the PERB.
d) “Bona fide association” to mean an organization of employees and former employees of an agency of the state and the CSU, and which does not have representing these employees in their employer-employee relations as one of its purposes.
e) “Deduction” to not include direct deposit by electronic funds transfer, as authorized.
7) Permits employee organizations and bona fide associations to request deductions from the salaries and wages of their members, as specified.
8) Requires the Controller to provide for the administration of payroll and salary deductions, as specified, and permits the Controller to establish, by rule or regulation, procedures for that purpose.
9) Permits an employee and retired employee of a public employer to have deducted from his or her salary, wage or retirement allowance for the payment of dues in, or for any other service provided by a bona fide organization which has as one of its objectives, improvements in the terms or conditions of employment for the advancement of the welfare of employees.
10) Provides for administration, procedures, deductions, cancellations or other changes relating to payroll deduction by state employees of public agencies not under the uniform payroll system.
11) Provides for dues deduction from the salary or wage of a trial court employee and court interpreter, as specified.
FISCAL EFFECT: Unknown. This bill has been flagged fiscal by Legislative Counsel.
COMMENTS: According to the author, “California has eight public sector collective bargaining laws that vary on employer responsibility to deduct the employee-authorized payment of union dues and fees from employees who benefit from union representation and transmit those dues and fees to the union. Assembly Bill (AB) 1937 removes any ambiguity in California law with regard to the obligation of a public employer to engage in payroll deduction of employee- authorized union dues and fees.”
The author further states that, “Assembly Bill 1937 would revise and recast the statutes affecting public employers with regard to payroll deduction to standardize processes and requirements for both employers and employee organizations. Specifically, the bill would reaffirm the duty of public employers to engage in payroll deductions when employees and their employee organizations requests them; would [require] employers to adopt certain rules with regard to implementation subject to the meet and confer process; would clarify the right of public employers to charge the employee organization a reasonable one-time startup cost for making the deductions; and would require employee organizations to indemnify employers against claims.
‘Assembly Bill 1937 is a simple measure to contemporize, standardize and clarify existing law impacting public sector employers and employee organizations with regard to their existing payroll deduction duties.”
1) Comments by Supporters
Supporters generally state that with the number of collective bargaining statutes covering public employers and their respective employees, the rules for payroll deductions being standardized is sensible towards ensuring that all involved parties are aware of the same process, among other comments similar to those of the author.
REGISTERED SUPPORT / OPPOSITION:
Support
Service Employees International Union, California (Sponsor)
Los Angeles County Professional Peace Officers Association (Co-Sponsor)
Organization of SMUD Employees (Co-Sponsor)
San Diego County Court Employees Association (Co-Sponsor)
United Public Employees (Co-Sponsor)
California Conference Board of The Amalgamated Transit Union
California Conference of Machinists
California Federation of Teachers, AFT, AFL-CIO
California Labor Federation, AFL-CIO
California School Employees Association, AFL-CIO
California Teachers Association
California Teamsters Public Affairs Council
California-Nevada Conference of Operating Engineers
Professional And Technical Engineers, IFPTE Local 21, AFL-CIO
United Domestic Workers, AFSCME Local 3930, AFL-CIO
United Public Employees
Opposition
None on file.
Analysis Prepared by: Michael Bolden / P.E.,R., & S.S. / (916) 319-3957
Discussed in Hearing
3MIN
Assembly Floor
3MIN
Assembly Standing Committee on Public Employees, Retirement, and Social Security
Bill Author
Bill Co-Author(s):