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AB-1937 Public employment: payroll deductions.(2017-2018)

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Date Published: 05/10/2018 09:00 PM
AB1937:v96#DOCUMENT

Amended  IN  Assembly  May 10, 2018
Amended  IN  Assembly  April 09, 2018
Amended  IN  Assembly  March 20, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1937


Introduced by Assembly Member Santiago

January 25, 2018


An act to amend Sections 45060 and 87833 of the Education Code, and to amend Sections 1150, 1152, 1153, 1157.3, 71638, and 71824 of, and to repeal Section 1157.10 of, the Government Code, relating to public employment.


LEGISLATIVE COUNSEL'S DIGEST


AB 1937, as amended, Santiago. Public employment: payroll deductions.
(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 employee’s 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 organization’s 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 organization’s 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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 45060 of the Education Code is amended to read:

45060.
 (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 employee’s 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 organization’s 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 employee’s 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 employee’s 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 organization’s 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 employee’s 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 individual’s 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 Controller’s 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 employee’s 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 organization’s 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.