Existing law establishes the Public Employment Relations Board (PERB) in state government as a means of resolving disputes and enforcing the statutory duties and rights of specified public employers and employees under various acts regulating collective bargaining, including the Meyers-Milias-Brown Act. Existing law includes within PERBs jurisdiction the resolution of disputes alleging violation of rules and regulations adopted by a public agency, as defined, concerning unit determinations, representations, recognition, and elections, as specified. Existing law does not apply the above provisions to employees of specified transit agencies, including the Orange County Transportation Authority and the San Joaquin Regional Transit District, among others.

Existing law establishes the Orange County Transportation Authority and the San Joaquin Regional Transit District within the Counties of Orange and San Joaquin. Existing law authorizes employees of these transit agencies to enter into labor organizations, as specified, and requires the California State Mediation and Conciliation Service to participate in labor organization disputes, as provided. Under existing law, these transit agencies may sue, and be sued, in all courts and tribunals of competent jurisdiction.

This bill, on and after January 1, 2020, would require employers and employees of the Orange County Transportation Authority and the San Joaquin Regional Transit District to adjudicate complaints of specified labor violations before PERB as an unfair practice and would authorize specified parties aggrieved by PERBs decision or order to petition for relief from that decision or order, as provided. By requiring the transit agencies to adjudicate claims before PERB, this bill would impose a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Orange County Transportation Authority and the San Joaquin Regional Transit District.

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 establishes the Public Employment Relations Board (PERB) in state government as a means of resolving disputes and enforcing the statutory duties and rights of specified public employers and employees under various acts regulating collective bargaining, including the Meyers-Milias-Brown Act. Existing law includes within PERBs jurisdiction the resolution of disputes alleging violation of rules and regulations adopted by a public agency, as defined, concerning unit determinations, representations, recognition, and elections, as specified. Existing law does not apply the above provisions to employees of specified transit agencies, including the Orange County Transit District, Transportation Authority and the San Joaquin Regional Transit District, among others.

Existing law, the Orange County Transit District Act of 1965, establishes a transit district law establishes the Orange County Transportation Authority and the San Joaquin Regional Transit District within the County Counties of Orange to create, among other things, a permanent rapid transit system. and San Joaquin. Existing law authorizes employees of the district these transit agencies to enter into labor organizations, as specified, and requires the California State Mediation and Conciliation Service to participate in labor organization disputes, as provided. Under existing law, the district these transit agencies may sue, and be sued, in all courts and tribunals of competent jurisdiction.

This bill, on and after January 1, 2020, would require employers and employees of the Orange County Transit District Transportation Authority and the San Joaquin Regional Transit District to adjudicate complaints of specified labor violations before PERB as an unfair practice and would authorize specified parties aggrieved by PERBs decision or order to petition for relief from that decision or order, as provided. By requiring the district transit agencies to adjudicate claims before PERB, this bill would impose a state-mandated local program.

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.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, as defined.

This bill would make nonsubstantive revisions to the definition of a public utility in the Public Utilities Act.

GOVERNOR'S VETO

GV Bill Id:AB 2886

Author:(Daly)

As Enrolled Ver:August 27, 2018

2/3 vote

Original Committee Reference: P.E.,R., & S.S.

SUMMARY: Transfers jurisdiction over the adjudication of unfair labor practices for the Orange County Transportation Authority (OCTA) and San Joaquin Regional Transit District (SJRTD) from the judicial system to the Public Employment Relations Board (PERB), effective January 1, 2020.

EXISTING LAW:

1. Governs collective bargaining in the private sector under the federal National Relations Labor Relations Act (NLRA) but leaves it to the states to regulate collective bargaining in their respective public sectors.

While the NLRA and the decisions of its National Labor Relations Board often provide persuasive precedent in interpreting state collective bargaining law, public employees have no collective bargaining rights absent specific statutory authority establishing those rights.

1. Provides several statutory frameworks under California law to provide public employees collective bargaining rights, govern public employer-employee relations, and limit labor strife and economic disruption in the public sector through a reasonable method of resolving disputes regarding wages, hours and other terms and conditions of employment between public employers and recognized public employee organizations or their exclusive representatives. These include the Meyers-Milias-Brown Act (MMBA) which provides for public employer-employee relations between local government employers and their employees, including some, but not all public transit districts.
2. Establishes the PERB, a quasi-judicial administrative agency charged with administering certain statutory frameworks governing employer-employee relations, resolving disputes, and enforcing the statutory duties and rights of public agency employers and employee organizations, but provides the City and County of Los Angeles a local alternative to PERB oversight.
3. Does not cover California's public transit districts by a common collective bargaining statute. Instead, while some transit agencies are subject to the MMBA, the majority of transit agencies are subject to labor relations provisions that are found in each district's specific Public Utilities Code (P.U.C.) enabling statute, in joint powers agreements, or in articles of incorporation and bylaws.

These provisions provide employees with basic rights to organization and representation, but do not define or prohibit unfair labor practices. Unlike other California public agencies and employees, these transit agencies and their employees have no recourse to the PERB. Instead, they must rely upon the courts to remedy any alleged violations. Additionally, they may be subject to provisions of the federal Labor Management Relations Act of 1947 and the 1964 Urban Mass Transit Act (now known as the Federal Transit Act).

1. Establishes, pursuant to Section 40000 et seq. of the P.U.C., the Orange County Transportation District of 1965: a transit district within the County of Orange to create a permanent rapid transit district, among other things. The transit district, formerly the Orange County Transit District, is now commonly known as the OCTA.

Sections 40120 through 40129 of the P.U.C. provide labor provisions for the OCTA. While these provisions provide for representation by a labor organization, unit determination, collective bargaining, personnel, and provisions relating to retirement and other benefits, they are not as expansive as those afforded other public transit districts covered by the MMBA; and, therefore, under the jurisdiction of the PERB.

1. Establishes, pursuant to Section 50000 et seq. of the P.U.C., the San Joaquin Regional Transit District Act: a transit district established in the Stockton metropolitan area which includes the City of Stockton and adjacent territory situated in San Joaquin County to meet the transit problem of the area.

Sections 50120 through 50126 of the P.U.C. provide labor provisions for the SJRTD. While these provisions provide for representation by a labor organization, unit determination, collective bargaining, personnel, and provisions relating to retirement and other benefits, they are not as expansive as those afforded other public transit districts covered by the MMBA; and, therefore, under the jurisdiction of the PERB.

FISCAL EFFECT: According to the Senate Appropriations Committee, the PERB indicates that this bill could result in increased workload to the extent that it is required to resolve additional disputes filed by employee organizations of OCTA and/or SJRTD. Specifically, PERB estimates increased annual General Fund costs of up to $95,000 and one-half of a permanent position to implement the provisions of the bill.

In addition, by requiring OCTA and SJRTD to represent themselves before the PERB, this bill creates a state-mandated local program. To the extent the Commission on State Mandates determines that the provisions of this bill create a new program or impose a higher level of service on local agencies, local agencies could claim reimbursement of those costs (General Fund). The annual magnitude of these claims is unknown, but potentially significant.

COMMENTS: According to the author, "[g]oing to court to resolve unfair labor practices is more expensive for both labor representatives (unions) and employers than submitting such issues to PERB. The courts are confronted with significant caseloads and, consequently, are frequently slow to resolve disputes. Moreover, PERB's expertise on labor law provides an expeditious and cost-effective alternative to processing labor disputes that could otherwise get bogged down in court. This bill will save time and money for both labor and management by authorizing PERB to handle employment disputes for the OCTA."

1. Public Transit Districts: Jurisdictional Variation for Handling Alleged Workplace Violations

The courts have held that the MMBA does not apply to public transit districts that have a statutorily prescribed method of administering employer-employee relations that was in existence at the time the MMBA was enacted.

However, existing law, pursuant to Chapter 833, Statutes of 2003 (AB 199, Oropeza), establishes the TEERA which governs employer-employee relations for supervisory employees of the Los Angeles Metropolitan Transportation Authority (LAMTA).

As stated under "Existing Law", supra, with the exception of the TEERA and MMBA, existing law does not cover all public transit districts by common collective statute. For these transit districts, PERB is not the venue for recourse relating to alleged workplace violations. Instead, these transit districts must rely upon the courts for a remedy.

This jurisdictional variation for handling workplace violations may be viewed as inequity in public employer-employee relations, as well as result in inconsistent decisions issued by the courts and those of the PERB related to workplace violations, notwithstanding jurisdictional boundaries.

1. This Measure Does Not Establish a New and Separate Collective Bargaining Statute

This measure does not establish a new statutory collective bargaining framework similar to the MMBA or TEERA for the OCTA and SJRTD. Instead, it places these employees who are currently statutorily governed by the P.U.C., and are currently required to seek resolution in a court of competent jurisdiction related to remedy alleged workplace violations (i.e., unfair practice charge), under the jurisdiction of the PERB for these purposes.

GOVERNOR'S VETO MESSAGE:

Over the years, the Legislature has expanded the Board's jurisdiction, but the necessary funding for the increased workload has not kept pace. This has resulted in significant backlogs at the Board – both labor and employers have complained about this problem. This Administration has recently increased the Board's funding to help correct this problem. The Board's jurisdiction should not be expanded again until the Board's ability to handle its previously expanded caseload is established.

Analysis Prepared by: Michael Bolden / P.E.,R., & S.S. / (916) 319-3957 FN: 0005298

 THIRD READING  

Bill No: AB 2886

Author:

:

Vote:

SENATE PUBLIC EMP. & RET. COMMITTEE: 3-2, 6/11/18

AYES: Pan, Leyva, Portantino

NOES: Morrell, Moorlach

SENATE JUDICIARY COMMITTEE: 5-2, 6/26/18

AYES: Jackson, Hertzberg, Monning, Stern, Wieckowski

NOES: Moorlach, Anderson

SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/16/18

AYES: Portantino, Beall, Bradford, Hill, Wiener

NOES: Bates, Nielsen

ASSEMBLY FLOOR: 73-0, 5/10/18 (Consent) - See last page for vote

SUBJECT:

SOURCE: California Conference Board of the Amalgamated Transit Union

California Teamsters Public Affairs Council

DIGEST:

This bill transfers jurisdiction over unfair labor practices for the Orange County Transportation Authority (OCTA) and the San Joaquin Regional Transit District (SJRTD) to the Public Employees Relations Board (PERB), effective January 1, 2020.

ANALYSIS:

Existing law:

1. Governs collective bargaining in the private sector under the federal National Relations Labor Relations Act (NLRA) but leaves to the states to regulate collective bargaining in their respective public sectors.
2. Provides that while the NLRA and the decisions of its National Labor Relations Board (NLRB) often provide persuasive precedent in interpreting state collective bargaining law, public employees generally have no collective bargaining rights absent specific statutory authority establishing those rights.
3. Provides several statutory frameworks under California law to provide public employees collective bargaining rights, govern public employer-employee relations, and limit labor strife and economic disruption in the public sector through a reasonable method of resolving disputes regarding wages, hours and other terms and conditions of employment between public employers and recognized public employee organizations or their exclusive representatives. These include the Meyers-Milias-Brown Act (MMBA) which provides for public employer-employee relations between local government employers and their employees, including some, but not all public transit districts.
4. Establishes PERB, a quasi-judicial administrative agency charged with administering certain statutory frameworks governing employer-employee relations, resolving disputes, and enforcing the statutory duties and rights of public agency employers and employee organizations, but provides the City and County of Los Angeles, respectively, local alternatives to PERB oversight.
5. Does not cover California’s public transit districts by a common collective bargaining statute. Instead, while some transit agencies are subject to the MMBA, the majority of transit agencies are subject to labor relations provisions that are found in each district’s specific Public Utilities Code (P.U.C.) enabling statute, in joint powers agreements, or in articles of incorporation and bylaws.
6. Provides that these provisions provide employees with basic rights to organization and representation, but do not define or prohibit unfair labor practices. Unlike other California public agencies and employees, these transit agencies and their employees have no recourse to PERB. Instead, they must rely upon the courts to remedy any alleged violations. Additionally, they may be subject to provisions of the federal Labor Management Relations Act of 1947 and the 1964 Urban Mass Transit Act (now known as the Federal Transit Act).
7. Establishes, pursuant to Section 40000 et seq. of the P.U.C., the Orange County Transportation District of 1965: a transit district within the County of Orange to create a permanent rapid transit district, among other things. The transit district, formerly the Orange County Transit District, is now commonly known as the OCTA.
   1. Sections 40120 through 40129 of the P.U.C. provide labor provisions for the OCTA. While these provisions provide for representation by a labor organization, unit determination, collective bargaining, personnel, and provisions relating to retirement and other benefits, they are not as expansive as those afforded other public transit districts covered by the MMBA; and, therefore, under the jurisdiction of the PERB.
8. Establishes, pursuant to Section 50000 et seq. of the P.U.C., the San Joaquin Regional Transit District Act: a transit district established in the Stockton metropolitan area which includes the City of Stockton and adjacent territory situated in San Joaquin County to meet the transit problem of the area.
   1. Sections 50120 through 50126 of the P.U.C. provide labor provisions for the SJRTD. While these provisions provide for representation by a labor organization, unit determination, collective bargaining, personnel, and provisions relating to retirement and other benefits, they are not as expansive as those afforded other public transit districts covered by the MMBA; and, therefore, under the jurisdiction of the PERB.

This bill:

1. Provides that PERB, and the powers and duties of PERB, as specified, shall apply, as appropriate, to the P.U.C. enabling statutes governing labor relations for the Orange County Transit District and the San Joaquin Regional Transit District respectively.
2. Requires a complaint alleging any violation of the respective enabling statues or of any rules and regulations adopted by the respective transit districts to be processed as an unfair practice charge by PERB; invests PERB with exclusive jurisdiction for the initial determination as to whether the charge of unfair practice is justified and for determining the appropriate remedy; but prohibits PERB, in an action to recover damages due to an unlawful strike, from exercising any authority to award strike-preparation expenses as damages or to award damages for costs, expenses, or revenue losses incurred during, or as a consequence of a strike.
3. Requires PERB to apply and interpret unfair labor practices consistent with existing judicial interpretations of the respective enabling statutes of the two transit districts.
4. Prohibits PERB from finding it an unfair practice for an employee organization to violate a rule or regulation adopted by the transit districts if that rule or regulation is itself in violation of each district’s respective enabling statutes.
5. Makes the provisions of this bill operative on January 1, 2020.
6. Authorizes specified parties aggrieved by the PERB decision to petition for a writ of extraordinary relief from the district court of appeal within 30 days of the decision.
7. Authorizes PERB to seek enforcement of any final decision or order in a district court of appeal or superior court having jurisdiction over the county where the events giving rise to the decision or order occurred, as specified.
8. Requires PERB to respond within 10 days to any inquiry from a party to the action as to why PERB has not sought court enforcement of the final decision or order and requires PERB to seek enforcement of the final decision or order upon the request of the party, as specified.
9. Requires the court to enforce the order by writ of mandamus or other proper process, as specified, and prohibits the court from reviewing the merits of the order.
10. Makes legislative findings and declarations that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique need of the Orange County Transportation Authority and the San Joaquin Regional Transit District to efficiently and cost-effectively adjudicate unfair labor practice complaints.
11. Provides that 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 as specified.

Comments

According to the sponsor, labor relation issues regarding most public employers (including many transit agencies operated by cities, counties, or special districts) and their employees are already under PERB’s jurisdiction. The exception consists of a handful of public transit districts which were created in the 1960's and 1970's before other public employees obtained collective bargaining rights, during the period when private transit operators were abandoning service and were being taken over by public agencies. Since PERB had yet to come into existence, each of the transit district enabling statutes contained labor relations provisions patterned after the NLRA and enforceable by the courts.

According to the author, in most cases, the Orange County Transportation Authority (formerly the Orange County Transit District) and the San Joaquin Regional Transit District use arbitration for resolving labor practice disputes under their collective bargaining agreements. Under the current system, these transit agencies must rely upon the courts to adjudicate unfair labor practice disputes that go unresolved through arbitration. Going to court to resolve unfair labor practice disputes is more expensive for both labor representatives and employers than seeking resolution through PERB. California courts continue to face significant caseloads, resulting in frequent and costly delays. Moreover, PERB’s expertise on labor law provides a cost-effective alternative to adjudicating unfair labor practice disputes

Related/Prior Legislation

AB 3034 (Low, 2018), currently on the Senate Floor, amends the P.U.C. by placing supervisory, professional, and technical employee units of the San Francisco Bay Area Rapid Transit District (BART) under the MMBA; thereby granting them certain statutory rights related to the employer-employee relationship, and bringing them under the jurisdiction of PERB.

AB 2305 (Rodriguez, 2018), currently on the Senate Floor, expands the jurisdiction of PERB, as specified, related to peace office employee organization.

AB 530 (Cooper, 2017) would have expanded the jurisdiction of PERB to include specified peace officers. The bill was vetoed by the Governor with the following message:

This bill authorizes peace officers to bring unfair practice charges to the Public Employment Relations Board while preserving their existing right to directly petition a superior court for injunctive relief.

No other group has both of these rights and I'm unconvinced that providing such a unique procedure is warranted.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, PERB indicates that this bill could result in increased workload to the extent that it is required to resolve additional disputes filed by employee organizations of OCTA and/or SJRTD. Specifically, PERB estimates increased annual General Fund costs of up to $95,000 and one-half of a permanent position to implement the provisions of the bill.

In addition, by requiring OCTA and SJRTD to represent themselves before PERB, this bill creates a state-mandated local program. To the extent the Commission on State Mandates determines that the provisions of this bill create a new program or impose a higher level of service on local agencies, local agencies could claim reimbursement of those costs (General Fund). The annual magnitude of these claims is unknown, but potentially significant.

SUPPORT: (Verified 8/17/18)

California Conference Board of the Amalgamated Transit Union (co-source)

California Teamsters Public Affairs Council (co-source)

California Labor Federation, AFL-CIO

OPPOSITION: (Verified 8/17/18)

Department of Finance

San Joaquin Regional Transit District

ARGUMENTS IN SUPPORT: According to the California Conference Board of the Amalgamated Transit Union, “it is enormously costly to go to court every time one of the parties wants to file an unfair labor practice charge. It is also extremely slow because the courts are already overcrowded with other pressing matters. Judges lack expertise in labor relations matters, which further complicates these issues. In contrast, the PERB is an expert administrative agency, specifically established to adjudicate public sector labor relations issues.”

According to the California Teamsters Public Affairs Counsel, when these two transit districts were created, “there was no such thing as PERB. Now there is, and it makes sense, from both a practical and fiscal perspective, to transfer jurisdiction.”

ARGUMENTS IN OPPOSITION: According to San Joaquin Regional Transit District:

AB 2886 would unnecessarily take jurisdiction from the long-established state and federal laws currently governing transit employer-employee relationships and place it under the PERB process for addressing labor disputes. PERB’s labor dispute settlement process is both inefficient and more expensive than our current process…

The PERB process requires: a charge and response; a hearing and a decision from an ALJ; appeal to the PERB board; and, an appeal to state appellate court…

In contrast, under our arbitration process: there’s a hearing before an arbitrator; the arbitrator’s decision is final and binding; and, appellate review only occurs under the most extreme circumstances…

Finally, it’s unclear to us exactly what process or procedure this legislation will explicitly move to PERB’s jurisdiction. Currently, PERB exercises jurisdiction over compliance with a variety of underlying statutory frameworks, such as the Meyers-Milias-Brown Act. In this situation, there is no underlying statutory framework to enforce…

If this issue isn’t clarified, it’s possible we would, under the bill, still have the current arbitration process for certain grievances, but also this new process, as well; we could end up with two separate processes.

ASSEMBLY FLOOR: 73-0, 5/10/18

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Travis Allen, Cooley, Friedman, Cristina Garcia, Obernolte

Prepared by:

8/18/18 13:41:57

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2017 - 2018 Regular Session

AB 2886 (Daly) - Public Employee Relations Board: Orange County Transportation Authority: San Joaquin Regional Transit District

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 2886 would (1) transfer adjudication of unfair labor practice charges for the Orange County Transportation Authority (OCTA) and the San Joaquin Regional Transit District (SJRTD) from the judicial system to the Public Employee Relations Board (PERB), and (2) authorize specified parties to a labor dispute to, in effect, appeal a PERB decision or order to the courts through a petition for a writ of extraordinary relief filed within 30 days of the PERB decision.

Fiscal Impact:

PERB indicates that this bill could result in increased workload to the extent that it is required to resolve additional disputes filed by employee organizations of OCTA and/or SJRTD. Specifically, PERB estimates increased annual General Fund costs of up to $95,000 and one-half of a permanent position to implement the provisions of the bill.

In addition, by requiring OCTA and SJRTD to represent themselves before PERB, this bill creates a state-mandated local program. To the extent the Commission on State Mandates determines that the provisions of this bill create a new program or impose a higher level of service on local agencies, local agencies could claim reimbursement of those costs (General Fund). The annual magnitude of these claims is unknown, but potentially significant.

Background:

PERB is a quasi-judicial agency that oversees public sector collective bargaining in the State. Its major functions involve the evaluation and adjudication of unfair practice charges filed, and the administration of the collective bargaining process through which employees select organizations to represent them in their labor relations with their employer.

Covered employees may file an unfair practice charge with PERB within six months of the alleged unfair practice. Once the charge has been properly filed, a Board agent reviews it to determine if a complaint should be issued, or dismisses it if there is insufficient factual evidence. A dismissal may be appealed. If a complaint is filed, the case proceeds to an informal settlement conference, or may proceed to a formal hearing conducted by an administrative law judge if no settlement can be reached.

Public transit districts in many cases have historical antecedents as private sector companies that were taken over by public agencies following World War II. Federal legislation linked transportation project funding to the preservation of transit district employees’ collective bargaining rights at a time when public sector employees had not yet attained collective bargaining. Consequently, transit district employees often enjoyed collective bargaining protections earlier than other state and local public employees. When the State authorized collective bargaining for state and local public employees through various labor relations statutes, many transit districts already were governed by collective bargaining arrangements and were not included in the new labor relations statutes. Those districts retain the traditional method of resolving labor disputes through litigation in the court system. In contrast, the statutory frameworks for most public sector labor relations regimes now provide for disputes to be resolved by PERB.

Proposed Law:

This bill would do, among other things, the following:

• Provide that PERB, and the powers and duties of PERB, as specified, shall apply, as appropriate, to the PUC enabling statutes governing labor relations for OCTD and SJRTD respectively.
• Require a complaint alleging any violation of the respective enabling statues or of any rules and regulations adopted by the respective transit districts to be processed as an unfair practice charge by PERB.
• Invest PERB with exclusive jurisdiction for the initial determination as to whether the charge of unfair practice is justified and for determining the appropriate remedy, but prohibit it, in an action to recover damages due to an unlawful strike, from any authority to award strike-preparation expenses as damages or to award damages for costs, expenses, or revenue losses incurred during, or as a consequence of a strike.
• Require PERB to apply and interpret unfair labor practices consistent with existing judicial interpretations of the respective enabling statutes of the two transit districts.
• Prohibit PERB from finding it an unfair practice for an employee organization to violate a rule or regulation adopted by the transit districts if that rule or regulation is itself in violation of each districts respective enabling statutes.
• Provide that the provisions of this bill would be operative on January 1, 2020.

Related Legislation:

• AB 2886 (Daly) would transfer jurisdiction over the adjudication of unfair labor practices for the Orange County Transportation Authority and San Joaquin Regional Transit District from the judicial system to PERB with respect to unfair labor practice charges. The bill is currently pending in this Committee.
• AB 2305 (Rodriguez) would expand the jurisdiction of PERB, as specified, related to peace office employee organizations. The bill is currently pending before this Committee.
• AB 530 (Cooper, 2017), would have expanded the jurisdiction of PERB to include specified peace officers. The bill was vetoed by the Governor.

Staff Comments:

As noted above, PERB estimates that, under the bill, it would incur annual costs of up to $95,000 as a result of increased workload, such as investigating and adjudicating unfair labor practices and representation cases, conducting mediations, and litigation requests for injunctive relief and appeal of Board decisions. PERB notes that OCTA and SJRTD represent about 2,000 employees, and anticipates that up to 10 additional unfair labor charges could be filed as a result of the bill.

-- END --

SENATE JUDICIARY COMMITTEE

Senator Hannah-Beth Jackson, Chair

2017-2018 Regular Session

Bill No: AB 2886 (Author:Daly)

Version: April 10, 2018

Hearing Date: June 26, 2018

Fiscal: Yes

Urgency: No

Consultant: TSG

SUBJECT

Public Employee Relations Board: Orange County Transportation Authority: San Joaquin Regional Transit District

DESCRIPTION

This bill would transfer adjudication of unfair labor practice charges for the Orange County Transportation Authority (OCTA) and the San Joaquin Regional Transit District (SJRTD) from the judicial system to the Public Employee Relations Board (PERB). Consistent with law applicable to other entities under PERB jurisdiction, the bill would also authorize parties to a labor dispute to, in effect, appeal a PERB decision or order to the courts through a petition for a writ of extraordinary relief filed within 30 days of the PERB decision.

BACKGROUND

The Public Employee Relations Board (PERB) is an administrative law body that oversees most public sector collective bargaining in California – but not all. Either because they were established before the PERB came into being or because they were exempted from PERB’s purview, there are a number of public entities that handle labor disputes outside of the PERB process, under their own separate statutes. The Orange County Transportation Authority (OCTA) and the San Joaquin Regional Transit District (SJRTD) are two such entities.

Currently, when OCTA and SJRTD are unable to resolve their unfair labor practice disputes through negotiation or arbitration, the matter winds up in the courts. The sponsors of this bill assert that such proceedings are unnecessarily costly and time-consuming. With that in mind, they propose placing jurisdiction for these disputes under the PERB instead. That is what this bill would accomplish if enacted.

This bill passed out of the Senate Committee on Public Employment and Retirement by a vote of 3-2.

CHANGES TO EXISTING LAW

Existing law establishes the Ralph C. Dills Act (Dills Act) and the Meyers-Milias-Brown Act (MMBA) which provide the statutory frameworks governing labor relations and the collective bargaining process between public employers and their state and local employees, respectively. (Gov. Code Secs. 3500-3511 and 3512-3524.)

Existing law authorizes public employers to adopt reasonable rules and regulations after consultation in good faith with representatives of an employee organization or organizations. (Gov. Code 3504.5 and 3516.5.)

Existing law requires public employers to meet and confer in good faith with the respective representatives of a recognized employee organization regarding wages, hours, and other terms and conditions of employment. (Gov. Code Secs. 3504-3505 and 3515-3517.)

Existing law establishes PERB which is a quasi-judicial administrative agency charged with administering the eight collective bargaining statutes covering employees of California’s public schools, colleges, and universities, employees of the State of California, employees of California local public agencies (cities, counties, and special districts), trial court employees, trial court interpreters, employees covered by the In-Home Supportive Services Employer-Employee Relations Act, and supervisory employees of the Los Angeles County Metropolitan Transportation Authority. (Gov. Code Sec. 3541.)

Existing law gives PERB jurisdiction over the public employer-employee relationship and charges PERB with resolving disputes and enforcing the statutory duties and rights of public employers and employee organizations, except for certain authorized local public employer-employee relations boards. (Gov. Code Secs. 3509 and 3512.)

Existing law permits the losing party to seek review of a final PERB decision through presentation of a petition for extraordinary writ with the appellate division having jurisdiction over the charge. (Gov. Code 3542.)

Existing law establishes, pursuant to Section 40000 et seq. of the P.U.C., the Orange County Transportation District of 1965, a transit district within the County of Orange, to create a permanent rapid transit district, among other things. (Pub. Util. Code Sec. 40000 et seq.)

Existing law sets forth the labor provisions for the Orange County Transit Authority, including representation by a labor organization, unit determination, collective bargaining, personnel, and provisions relating to retirement and other benefits, but not including submission to the jurisdiction of the PERB. (Pub. Util. Code Secs. 40120 through 40129.)

Existing law establishes the San Joaquin Regional Transit District Act, a transit district established in the Stockton metropolitan area which includes the City of Stockton and adjacent territory situated in San Joaquin County, to meet the transit needs of the area. (Pub. Util. Code Sec. 50000 et seq.)

Existing law sets forth provisions for the San Joaquin Regional Transit District including representation by a labor organization, unit determination, collective bargaining, personnel, and provisions relating to retirement and other benefits, but not including the availability of labor dispute adjudication through the PERB. (Pub. Util. Code Secs. 50120 to 50126.)

This bill would transfer jurisdiction over the adjudication of unfair labor practices for the Orange County Transportation Authority (OCTA) and San Joaquin Regional Transit District (SJRTD) from the judicial system to the Public Employment Relations Board (PERB), effective January 1, 2020.

This bill would, consistent with existing law for other public entities under PERB jurisdiction, authorize parties aggrieved by PERB’s final decisions or order in an unfair practice case, except a decision of that board not to issue a complaint, to petition for relief from that decision or order through a writ for extraordinary relief in the district court of appeal with jurisdiction.

COMMENT

1. Stated need for the bill

According to the author:

Going to court to resolve unfair labor practices is more expensive for both labor representatives (unions) and employers than submitting such issues to PERB. The courts are confronted with significant caseloads and, consequently, are frequently slow to resolve disputes. Moreover, PERB’s expertise on labor law provides an expeditious and cost-effective alternative to processing labor disputes that could otherwise get bogged down in court. This bill will save time and money for both labor and management by authorizing PERB to handle employment disputes for the specified transit agencies.

As co-sponsor of the bill, the Amalgamated Transit Union writes:

The remaining transit districts still not under PERB’s jurisdiction were created in the 1960s and 1970s before other public employees obtained collective bargaining rights…Since PERB had not yet come into existence, each of those transit district statutes contained separate (but largely identical) labor relations provisions patterned after the National Labor Relations Act, enforceable by the courts.

At this point, as far as the unions representing employees at OCTA and RTD are concerned, going to court to adjudicate unfair labor practices no longer makes sense for a variety of reasons. It is enormously costly to go to court every time one of the parties wants to file an unfair labor practice charge. It is also extremely slow because the courts are already overcrowded with other pressing matters. Judges lack expertise in labor relations matters, which further complicates these issues. If one of the parties is dissatisfied, the parties must move through an even slower appellate process. In contrast, PERB is an expert administrative agency, specifically established to adjudicate public sector labor relations issues. It is cheaper and faster than court litigation. While parties can appeal to superior court, appeal rights are limited as great deference is paid by the courts to the decisions of administrative agencies.

When OCTA and RTD was [sic] created, there was no such thing as PERB. Now there is, and it makes sense, from both a practical and fiscal perspective, to transfer jurisdiction.

2. Concerns expressed about the bill

In opposition to the bill, the San Joaquin Regional Transit District writes:

[T]he chances of a matter going into the courts is far greater under PERB than under our current process. The PERB’s process requires: a charge and response; a hearing and a decision from an ALJ; appeal to the PERB board; and an appeal to state appellate court.

In contrast, under our arbitration process: there’s a hearing before an arbitrator; the arbitrator’s decision is final and binding; and, appellate review only occurs under the most extreme circumstances.

The bill will also not speed up the current process; rather, publicly available information shows that PERB is backed up twelve or more months in its current caseload.

The author responds that:

It is cheaper to go to PERB than pursuing court litigation. Also this bill will not impact arbitration.

The California Department of Finance has also indicated opposition to the bill due to cost concerns. As those concerns are properly the province of the Committee on Appropriations, they are not addressed here.

3. Procedures and timelines for seeking an extraordinary writ to “appeal” a PERB decision or order

The bill text contains several subdivisions laying out the procedures by which aggrieved parties could seek review of final PERB decisions or orders through a petition for a writ of extraordinary relief to the district court of appeal with jurisdiction over the matter. These provisions would not be unique to OCTA or the SJRTD. Rather, they are lifted verbatim from Government Code 3509.3, which governs how parties currently under PERB’s jurisdiction can seek review in the event they are dissatisfied with the outcome they got from PERB itself. In other words, these provisions have the effect of applying to OCTA and the SJRTD the same rules for seeking judicial review of PERB decisions that apply to other public entities under PERB’s jurisdiction.

4. What legal framework would govern?

In its letter opposing this bill and the transfer to PERB jurisdiction that it proposes, the SJRTD questions what law the PERB would use to adjudicate disputes involving the SJRTD:

Currently, PERB exercises jurisdiction over compliance with a variety of public labor statutes, such as the Meyers-Milias-Brown Act. In this situation, there is no underlying statutory framework for PERB to enforce; so, we question: Would some explicit framework need to be added to the bill as well (i.e. a framework not currently part of RTD’s enabling statutes or otherwise in the PUC)?

The bill appears to address this question. It states, in both the section transferring OCTA jurisdiction and the section transferring SJRTD jurisdiction, that: “[a] complaint alleging any violation of this chapter or of any rules and regulations adopted by the district shall be processed as an unfair practice charge by the Public Employment Relations Board.” This language strongly suggests that PERB would “process” the complaint as it would any other unfair practice charge, while applying the relevant Public Utility Code Chapter and any rules and regulations adopted by the district to the substance of the dispute.

Support: California Labor Federation

Opposition: California Department of Finance; San Joaquin Regional Transit District

HISTORY

Source: California Conference Board of the Amalgamated Transit Union; California Teamsters Public Affairs Council

Related Pending Legislation:

AB 3034 (Low, 2018) would place supervisory, professional, and technical employee units of the San Francisco Bay Area Rapid Transit District (BART) under the Meyers-Milias-Brown Act, thereby granting them certain statutory rights related to the employer-employee relationship, and bringing them under the jurisdiction of the PERB. AB 3034 is currently pending consideration before the Senate Public Employment and Retirement Committee.

AB 2305 (Rodriguez, 2018) would expand the jurisdiction of the PERB to include specified peace officer employee organizations. The bill would exclude employers and employees under the jurisdiction of employee relations commissions for the County and City of Los Angeles. AB 2305 is currently pending consideration before the Senate Committee on Public Employment and Retirement.

Prior Legislation:

Assembly Bill 530 (Cooper, 2017) would have expanded the jurisdiction of the PERB to include specified peace officers. This bill was vetoed by the Governor because the bill also preserved the existing right of peace officers to directly petition a superior court for injunctive relief – a dual procedure not afforded to any other group.

SB 739 (Solis, Ch. 901, Stats. 2000) enacted the Meyers-Milias-Brown Act (MMBA) of 1968 which established collective bargaining for California’s municipal, county, and local special district employers and employees under PERB’s jurisdiction.

SB 839 (Dills, Ch. 1159, Stats. 1977), also known as “the Dills Act,” created the collected bargaining procedures for state employees. SB 839 also established the Public Employment Relations Board (PERB) to adjudicate disputes under the Act.

Prior Vote:

Senate Public Employment and Retirement Committee (Ayes 3, Noes 2)

Assembly Floor (Ayes 73, Noes 0)

Assembly Appropriations Committee (Ayes 17, Noes 0)

Assembly Public Employees, Retirement, and Social Security Committee (Ayes 6, Noes 0)

**************

SENATE COMMITTEE ON

PUBLIC EMPLOYMENT AND RETIREMENT

Dr. Richard Pan, Chair

2017 - 2018 Regular

Bill No: AB 2886 Hearing Date: 6/11/18

Subject: Public Employee Relations Board: Orange County Transportation Authority: San Joaquin Regional Transit District.

SOURCE: Author

ASSEMBLY VOTES:

DIGEST: This bill transfers, effective January 1, 2020, jurisdiction over the adjudication of unfair labor practices for the Orange County Transportation Authority (OCTA) and the San Joaquin Regional Transit District (SJRTD) from the judicial system to the Public Employees Relations Board (PERB), and authorizes specified parties aggrieved by PERB’s decision or order in an unfair practice case to petition for a writ of extraordinary relief from the district court of appeal having jurisdiction within 30 days of the decision.

ANALYSIS:

Existing law:

1. Governs collective bargaining in the private sector under the federal National Relations Labor Relations Act (NLRA) but leaves to the states to regulate collective bargaining in their respective public sectors.
2. While the NLRA and the decisions of its National Labor Relations Board (NLRB) often provide persuasive precedent in interpreting state collective bargaining law, public employees generally have no collective bargaining rights absent specific statutory authority establishing those rights.
3. Provides several statutory frameworks under California law to provide public employees collective bargaining rights, govern public employer-employee relations, and limit labor strife and economic disruption in the public sector through a reasonable method of resolving disputes regarding wages, hours and other terms and conditions of employment between public employers and recognized public employee organizations or their exclusive representatives. These include the Meyers-Milias-Brown Act (MMBA) which provides for public employer-employee relations between local government employers and their employees, including some, but not all public transit districts.
4. Establishes PERB, a quasi-judicial administrative agency charged with administering certain statutory frameworks governing employer-employee relations, resolving disputes, and enforcing the statutory duties and rights of public agency employers and employee organizations, but provides the City and County of Los Angeles, respectively, local alternatives to PERB oversight.
5. Does not cover California’s public transit districts by a common collective bargaining statute. Instead, while some transit agencies are subject to the MMBA, the majority of transit agencies are subject to labor relations provisions that are found in each district’s specific Public Utilities Code (P.U.C.) enabling statute, in joint powers agreements, or in articles of incorporation and bylaws.
6. These provisions provide employees with basic rights to organization and representation, but do not define or prohibit unfair labor practices. Unlike other California public agencies and employees, these transit agencies and their employees have no recourse to PERB. Instead, they must rely upon the courts to remedy any alleged violations. Additionally, they may be subject to provisions of the federal Labor Management Relations Act of 1947 and the 1964 Urban Mass Transit Act (now known as the Federal Transit Act).
7. Establishes, pursuant to Section 40000 et seq. of the P.U.C., the Orange County Transportation District of 1965: a transit district within the County of Orange to create a permanent rapid transit district, among other things. The transit district, formerly the Orange County Transit District, is now commonly known as the OCTA.
8. Sections 40120 through 40129 of the P.U.C. provide labor provisions for the OCTA. While these provisions provide for representation by a labor organization, unit determination, collective bargaining, personnel, and provisions relating to retirement and other benefits, they are not as expansive as those afforded other public transit districts covered by the MMBA; and, therefore, under the jurisdiction of the PERB.
9. Establishes, pursuant to Section 50000 et seq. of the P.U.C., the San Joaquin Regional Transit District Act: a transit district established in the Stockton metropolitan area which includes the City of Stockton and adjacent territory situated in San Joaquin County to meet the transit problem of the area.
10. Sections 50120 through 50126 of the P.U.C. provide labor provisions for the SJRTD. While these provisions provide for representation by a labor organization, unit determination, collective bargaining, personnel, and provisions relating to retirement and other benefits, they are not as expansive as those afforded other public transit districts covered by the MMBA; and, therefore, under the jurisdiction of the PERB.

This bill:

1. Provides that PERB, and the powers and duties of PERB, as specified, shall apply, as appropriate, to the PUC enabling statutes governing labor relations for the Orange County Transit District and the San Joaquin Regional Transit District respectively.
2. Requires a complaint alleging any violation of the respective enabling statues or of any rules and regulations adopted by the respective transit districts to be processed as an unfair practice charge by PERB; invests PERB with exclusive jurisdiction for the initial determination as to whether the charge of unfair practice is justified and for determining the appropriate remedy; but prohibits PERB, in an action to recover damages due to an unlawful strike, from any authority to award strike-preparation expenses as damages or to award damages for costs, expenses, or revenue losses incurred during, or as a consequence of a strike.
3. Requires PERB to apply and interpret unfair labor practices consistent with existing judicial interpretations of the respective enabling statutes of the two transit districts.
4. Prohibits PERB from finding it an unfair practice for an employee organization to violate a rule or regulation adopted by the transit districts if that rule or regulation is itself in violation of each districts respective enabling statutes.
5. Makes the provisions of this bill operative on January 1, 2020.
6. Makes legislative findings and declarations that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique need of the Orange County Transportation Authority and the San Joaquin Regional Transit District to efficiently and cost-effectively adjudicate unfair labor practice complaints.
7. Provides that 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 as specified.

Background

According to the sponsor, labor relation issues regarding most public employers (including many transit agencies operated by cities, counties, or special districts) and their employees are already under PERB’s jurisdiction. The exception consists of a handful of public transit districts which were created in the 1960's and 1970's before other public employees obtained collective bargaining rights, during the period when private transit operators were abandoning service and were being taken over by public agencies. Since PERB had yet to come into existence, each of the transit district enabling statutes contained labor relations provisions patterned after the NLRA and enforceable by the courts.

According to the author, in most cases, the Orange County Transportation Authority (formerly the Orange County Transit District) and the San Joaquin Regional Transit District use arbitration for resolving labor practice disputes under their collective bargaining agreements. Under the current system, these transit agencies must rely upon the courts to adjudicate unfair labor practice disputes that go unresolved through arbitration. Going to court to resolve unfair labor practice disputes is more expensive for both labor representatives and employers than seeking resolution through PERB. California courts continue to face significant caseloads, resulting in frequent and costly delays. Moreover, PERB’s expertise on labor law provides a cost-effective alternative to adjudicating unfair labor practice disputes

Related/Prior Legislation

AB 3034 (Low, 2018), currently in Senate Public Employment and Retirement Committee, would amend the P.U.C. by placing supervisory, professional, and technical employee units of the San Francisco Bay Area Rapid Transit District (BART) under the MMBA; thereby granting them certain statutory rights related to the employer-employee relationship, and bringing them under the jurisdiction of the PERB.

AB 2305 (Rodriguez, 2018), currently in Senate Public Employment and Retirement Committee, would expand the jurisdiction of the PERB, as specified, related to peace office employee organization, and excludes employers and employees under the jurisdiction of employee relations commissions for the County and City of Los Angeles, as specified.

AB 530 (Cooper, 2017) would have expanded the jurisdiction of the PERB to include specified peace officers. Vetoed by the Governor.

To the Members of the California State Assembly:

I am returning Assembly Bill 530 without my signature.

This bill authorizes peace officers to bring unfair practice charges to the Public Employment Relations Board while preserving their existing right to directly petition a superior court for injunctive relief.

No other group has both of these rights and I'm unconvinced that providing such a unique procedure is warranted.

Sincerely,

Edmund G. Brown Jr.

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

SUPPORT:

Amalgamated Transit Union

California Labor Federation, AFL-CIO

California Teamsters Public Affairs Counsel

OPPOSITION:

San Joaquin Regional Transit District

ARGUMENTS IN SUPPORT: According to the Amalgamated Transit Union, “it is enormously costly to go to court every time one of the parties wants to file an unfair labor practice charge. It is also extremely slow because the courts are already overcrowded with other pressing matters. Judges lack expertise in labor relations matters, which further complicates these issues. In contrast, the PERB is an expert administrative agency, specifically established to adjudicate public sector labor relations issues.”

According to the California Teamsters Public Affairs Counsel, when these two transit districts were created, “there was no such thing as PERB. Now there is, and it makes sense, from both a practical and fiscal perspective, to transfer jurisdiction.”

ARGUMENTS IN OPPOSITION: According to San Joaquin Regional Transit District,

AB 2886 would unnecessarily take jurisdiction from the long-established state and federal laws currently governing transit employer-employee relationships and place it under the PERB process for addressing labor disputes. PERB’s labor dispute settlement process is both inefficient and more expensive than our current process…

The PERB process requires: a charge and response; a hearing and a decision from an ALJ; appeal to the PERB board; and, an appeal to state appellate court…

In contrast, under our arbitration process: there’s a hearing before an arbitrator; the arbitrator’s decision is final and binding; and, appellate review only occurs under the most extreme circumstances…

Finally, it’s unclear to us exactly what process or procedure this legislation will explicitly move to PERB’s jurisdiction. Currently, PERB exercises jurisdiction over compliance with a variety of underlying statutory frameworks, such as the Meyers-Milias-Brown Act. In this situation, there is no underlying statutory framework to enforce…

If this issue isn’t clarified, it’s possible we would, under the bill, still have the current arbitration process for certain grievances, but also this new process, as well; we could end up with two separate processes.

Date of Hearing: May 2, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2886

Author:(Daly) – As Amended Ver:April 10, 2018

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill transfers, effective January 1, 2020, jurisdiction over the adjudication of unfair labor practices for the Orange County Transportation Authority (OCTA) and the San Joaquin Regional Transit District (SJRTD) from the judicial system to the Public Employees Relations Board (PERB), and authorizes specified parties aggrieved by PERB’s decision or order in an unfair practice case to petition for relief from that decision or order.

FISCAL EFFECT:

1. Modest annual General Fund costs to PERB in the range of $60,000 as a result of additional new disputes subject to the jurisdiction of PERB. The number of new disputes each year is expected to be minor.
2. Potentially reimbursable costs to local agencies to the extent the moving the adjudication of unfair labor practices to PERB creates new requirements for them. However, it is unlikely these costs will be significant.

COMMENTS:

1. Purpose. According to the author, AB 2886 will save time and money for labor and management by authorizing PERB to handle employment disputes for the affected agencies. The author notes that going to court to resolve unfair labor practices is more expensive and time-consuming for all parties, while PERB’s expertise on labor law provides a more cost-effective alternative to processing disputes that would otherwise get bogged down in courts.
2. PERB and case backlog. PERB oversees public sector collective bargaining in California. Its major functions involve the evaluation and adjudication of unfair practice charges and the administration of the collective bargaining process.

Over the years, PERB’s jurisdiction has expanded, resulting in a backlog of cases. In April 2017, PERB began a Case Processing Efficiency Initiative to improve and streamline internal processes. In February 2018, PERB released a report that listed possible efficiencies and administrative changes to prioritize and expedite cases.

1. Related legislation. AB 2886 is one of three bills pending in this committee that expand PERB’s jurisdiction. AB 3034 (Low) expands PERB’s jurisdiction to include supervisory, professional, and technical employee units of the San Francisco Bay Area Rapid Transit (BART) District. AB 2305 (Rodriguez) expands PERB’s jurisdiction to include to certain peace officer employee organizations.
2. Recent legislation. AB 530 (Cooper), of the 2017-18 Legislative Session, expands jurisdiction of PERB to include certain peace officers. AB 530 was vetoed by the governor because the existing rights of peace officers to directly petition a superior court for injunctive relief, a dual procedure not afforded to any other group.

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 2886 (

Author:Daly) – As Amended Ver:April 10, 2018

SUBJECT: Public Employee Relations Board: Orange County Transportation Authority: San Joaquin Regional Transit District

SUMMARY: Transfers jurisdiction over the adjudication of unfair labor practices for the Orange County Transportation Authority (OCTA) and San Joaquin Regional Transit District (SJRTD) from the judicial system to the Public Employment Relations Board (PERB); establishes January 1, 2020, as the operative date in which these provisions become effective; authorizes specified parties aggrieved by PERB’s decisions or order in an unfair practice case, except a decision of that board not to issue a complaint, to petition for relief from that decision or order, as provided; and, provides for reimbursement to local agencies and school districts, as specified.

EXISTING LAW:

1. Governs collective bargaining in the private sector under the federal National Relations Labor Relations Act (NLRA) but leaves it to the states to regulate collective bargaining in their respective public sectors.

While the NLRA and the decisions of its National Labor Relations Board often provide persuasive precedent in interpreting state collective bargaining law, public employees have no collective bargaining rights absent specific statutory authority establishing those rights.

2) Provides several statutory frameworks under California law to provide public employees collective bargaining rights, govern public employer-employee relations, and limit labor strife and economic disruption in the public sector through a reasonable method of resolving disputes regarding wages, hours and other terms and conditions of employment between public employers and recognized public employee organizations or their exclusive representatives. These include the Meyers-Milias-Brown Act (MMBA) which provides for public employer-employee relations between local government employers and their employees, including some, but not all public transit districts.

3) Establishes the PERB, a quasi-judicial administrative agency charged with administering certain statutory frameworks governing employer-employee relations, resolving disputes, and enforcing the statutory duties and rights of public agency employers and employee organizations, but provides the City and County of Los Angeles a local alternative to PERB oversight.

4) Does not cover California’s public transit districts by a common collective bargaining statute. Instead, while some transit agencies are subject to the MMBA, the majority of transit agencies are subject to labor relations provisions that are found in each district’s specific Public Utilities Code (P.U.C.) enabling statute, in joint powers agreements, or in articles of incorporation and bylaws.

These provisions provide employees with basic rights to organization and representation, but do not define or prohibit unfair labor practices. Unlike other California public agencies and employees, these transit agencies and their employees have no recourse to the PERB. Instead, they must rely upon the courts to remedy any alleged violations. Additionally, they may be subject to provisions of the federal Labor Management Relations Act of 1947 and the 1964 Urban Mass Transit Act (now known as the Federal Transit Act).

5) Establishes, pursuant to Section 40000 et seq. of the P.U.C., the Orange County Transportation District of 1965: a transit district within the County of Orange to create a permanent rapid transit district, among other things. The transit district, formerly the Orange County Transit District, is now commonly known as the OCTA.

Sections 40120 through 40129 of the P.U.C. provide labor provisions for the OCTA. While these provisions provide for representation by a labor organization, unit determination, collective bargaining, personnel, and provisions relating to retirement and other benefits, they are not as expansive as those afforded other public transit districts covered by the MMBA; and, therefore, under the jurisdiction of the PERB.

6) Establishes, pursuant to Section 50000 et seq. of the P.U.C., the San Joaquin Regional Transit District Act: a transit district established in the Stockton metropolitan area which includes the City of Stockton and adjacent territory situated in San Joaquin County to meet the transit problem of the area.

Sections 50120 through 50126 of the P.U.C. provide labor provisions for the SJRTD. While these provisions provide for representation by a labor organization, unit determination, collective bargaining, personnel, and provisions relating to retirement and other benefits, they are not as expansive as those afforded other public transit districts covered by the MMBA; and, therefore, under the jurisdiction of the PERB.

FISCAL EFFECT: Unknown. This bill has been flagged as fiscal by Legislative Counsel.

COMMENTS: According to the author, “[g]oing to court to resolve unfair labor practices is more expensive for both labor representatives (unions) and employers than submitting such issues to PERB. The courts are confronted with significant caseloads and, consequently, are frequently slow to resolve disputes. Moreover, PERB’s expertise on labor law provides an expeditious and cost-effective alternative to processing labor disputes that could otherwise get bogged down in court. This bill will save time and money for both labor and management by authorizing PERB to handle employment disputes for the OCTA.

1) Public Transit Districts: Jurisdictional Variation for Handling Alleged Workplace Violations

The courts have held that the MMBA does not apply to public transit districts that have a statutorily prescribed method of administering employer-employee relations that was in existence at the time the MMBA was enacted.

However, existing law, pursuant to Chapter 833, Statutes of 2003 (AB 199, Oropeza), establishes the TEERA which governs employer-employee relations for supervisory employees of the Los Angeles Metropolitan Transportation Authority (LAMTA).

As stated under “Existing Law”, supra, with the exception of the TEERA and MMBA, existing law does not cover all public transit districts by common collective statute. For these transit districts, PERB is not the venue for recourse relating to alleged workplace violations. Instead, these transit districts must rely upon the courts for a remedy.

This jurisdictional variation for handling workplace violations may be viewed as inequity in public employer-employee relations, as well as result in inconsistent decisions issued by the courts and those of the PERB related to workplace violations, notwithstanding jurisdictional boundaries.

2) This Measure Does Not Establish a New and Separate Collective Bargaining Statute

This measure does not establish a new statutory collective bargaining framework similar to the MMBA or TEERA for the OCTA and SJRTD. Instead, it places these employees who are currently statutorily governed by the P.U.C., and are currently required to seek resolution in a court of competent jurisdiction related to remedy alleged workplace violations (i.e., unfair practice charge), under the jurisdiction of the PERB for these purposes.

3) Comments by Supporters

According to supporters, “[w]ith the exception of a handful of public transit districts, labor relations issues regarding virtually all public employers and their employees are under the jurisdiction of the PERB. In fact, many transit agencies which are operated by cities, counties, or special districts are already under the jurisdiction of PERB. The remaining transit districts still not under PERB’s jurisdiction were created in the 1960s and 1970s before other public employees obtained collective bargaining rights, during the period when private transit operators were abandoning service and it was being taken over by public agencies.

‘Since PERB had yet come to existence, each of those transit district statutes contained in separate (but largely identical) labor relations provisions patterned after the NLRA, enforceable by the courts.

‘At this point, as far as the unions representing employees at [OCTA] is concerned, going to court to adjudicate unfair labor practices is no longer sensible for a variety of reasons. It is enormously costly to go to court every time one of the parties wants to file an unfair labor practice charge. It is also extremely slow because the courts are already overcrowded with other pressing matters. Judges lack expertise in labor relations matters, which further complicates these issues. In contrast, the PERB is an expert administrative agency, specifically established to adjudicate public sector labor relations issues.” Therefore, “… it makes sense, from both a practical and fiscal perspective, to transfer jurisdiction.”

4) Related/Prior Legislation

Assembly Bill 3034 (Low) would amend the P.U.C. by placing supervisory, professional, and technical employee units of the San Francisco Bay Area Rapid Transit District (BART) under the MMBA; thereby granting them certain statutory rights related to the employer-employee relationship, and bringing them under the jurisdiction of the PERB. This bill is currently pending in the Assembly Committee on Public Employees, Retirement, and Social Security.

Assembly Bill 2305 (Rodriguez) would expand the jurisdiction of the PERB, as specified, related to peace office employee organization, and excludes employers and employees under the jurisdiction of employee relations commissions for the County and City of Los Angeles, as specified. This bill is currently pending in the Assembly Committee on Public Employees, Retirement, and Social Security.

Assembly Bill 530 (Cooper, 2017) would have expanded the jurisdiction of the PERB to include specified peace officers. This bill was vetoed by the Governor because the bill also preserved the existing right of peace officers to directly petition a superior court for injunctive relief – a dual procedure not afforded to any other group.

REGISTERED SUPPORT / OPPOSITION:

Support

Amalgamated Transit Union

California Teamsters Public Affairs Council

Opposition

None on file.

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