This bill does all of the following:

1. Under current law, with certain exceptions, the employes in the departments
of revenue (DOR) and regulation and licensing (DORL) serve in positions in the
classified service. In contrast to an unclassified position, a classified position must
be filled through an examination procedure that determines the applicant's merit
and fitness for appointment to the position. Also, a person in the classified service
who has successfully completed his or her probationary period may not be demoted,
suspended, removed or discharged from his or her position except for just cause, and
the person has certain reinstatement privileges if he or she is laid off or voluntarily
separates from the classified service; a person in an unclassified position does not
have the same protections or privileges.

In addition, under current law, a person in the classified service, other than a
limited term employe, sessional employe, project employe, supervisor, management

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employe or individual who is privy to confidential matters affecting the
employer-employe relationship, may exercise collective bargaining rights under the
state employment labor relations act (SELRA). Under SELRA, employes are
expressly guaranteed the right of self-organization and the right to engage in lawful,
concerted activities for the purpose of collective bargaining. Collective bargaining
is expressly authorized and required with certified representative organizations in
relation to specified subjects of bargaining. Mandatory subjects of bargaining are
salaries, fringe benefits, hours and conditions of employment, except that
supervisors may bargain collectively concerning wages and fringe benefits only.
Bargaining is not required on certain subjects reserved to the management and
direction of the state, except that procedures for the adjustment of grievances arising
out of disciplinary actions are a mandatory subject of bargaining. In addition,
bargaining is not permitted regarding the mission of a state agency. Bargaining
units are structured on a statewide basis, with employes performing different
functions assigned to different units. Employes in the units have the right to vote
in an election conducted by the employment relations commission as to whether
there shall be collective bargaining and, if so, with which representative.
Responsibilities of the state as an employer are handled by the department of
employment relations (DER). Unfair labor practices are established, applicable to
the state and to labor unions representing employes. The employment relations
commission adjudicates unfair labor practice complaints and may mediate disputes
and arbitrate grievances. Strikes are expressly prohibited. No compulsory means
of dispute settlement are provided. "Fair-share" (agency shop) and "maintenance
of membership" agreements are authorized whereby the cost of collective bargaining
and contract administration may be deducted from the wages of certain employes
under certain conditions. Under a fair-share agreement, the state must deduct the
amount of dues uniformly required of all members of a union for the cost of the
collective bargaining process and contract administration from the paychecks of all
employes in the bargaining unit represented by that union, regardless of whether the
employes are union members, and pay the total amount deducted to the union. A
fair-share agreement requires the approval of two-thirds of the employes voting in
a unit before it may take effect; it may also be discontinued in accordance with a
similar procedure. Under a maintenance of membership agreement, the state must
deduct the amount of dues uniformly required of all members of a union for the cost
of the collective bargaining process and contract administration from the paychecks
of all employes in the bargaining unit who are members of the union, and all
employes who are hired after the effective date of the agreement, and pay the total
amount deducted to the union. A maintenance of membership agreement requires
the approval of a majority of the employes voting in a unit before it may become
effective, and may also be discontinued in accordance with a similar procedure.

Finally, compensation of persons in the classified service is determined in
accordance with the state compensation plan, unless the persons are represented.
If persons are represented, their compensation is determined according to the
collective bargaining agreement.

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This bill, beginning on July 1, 1996, places all employes in DOR and DORL in
the unclassified service. These employes are no longer covered by SELRA, with the
result that they no longer have collective bargaining rights, and their compensation,
with certain exceptions, is determined in accordance with the state compensation
plan.

2. Current law also provides that a state employe (other than an employe of the
office of the governor, the courts, the legislature or a legislative service agency or an
employe who is, or whose immediate supervisor is, assigned to an executive salary
group) is protected from retaliation for disclosing information that the employe
reasonably believes demonstrates a violation of law, mismanagement, abuse of
authority, a substantial waste of public funds or a danger to public health and safety
(whistleblower law). This bill removes the employes in DOR and DORL from the
protections provided under the whistleblower law.

3. Under SELRA, state employes in the classified service and assistant district
attorneys, except management, supervisory, confidential and project employes, are
included within collective bargaining units established by law. The employes in each
unit may select a representative for purposes of collective bargaining. The state is
required to bargain collectively with the representative of each unit, if any,
concerning wages, hours, conditions of employment and fringe benefits, with certain
exceptions. Employes who are included within a collective bargaining unit may be
required to contribute to the cost of collective bargaining and contract
administration through a "fair-share" or "maintenance of membership" agreement
between the representative and the state. The state and the employes, individually
or collectively, are prohibited from engaging in certain unfair labor practices.
Employes are expressly prohibited from engaging in a strike. Under SELRA, a
"management" employe includes any individual who is engaged predominantly in
executive and managerial functions, and specifically includes division
administrators, bureau directors and institutional heads, as well as individuals
exercising similar functions, as determined by the employment relations
commission.

This bill excludes from coverage under SELRA, in addition, any individual who
serves as "chief legal counsel" or "deputy chief legal counsel" in a state agency within
the executive branch, or any individual who exercises functions and responsibilities
similar to such an individual, as determined by the commission. Because some of the
individuals who serve in these positions may already be excluded as management,
supervisory or confidential employes, the bill does not affect all such positions.

4. Under current law, the employment relations commission has the authority
to consider a petition for a statewide collective bargaining unit that consists of
professional supervisors or for a statewide bargaining unit that consists of
nonprofessional supervisors who are in the classified service. Representatives of
these bargaining units, however, may not be affiliated with any labor organization
that represents employes other than employes who are supervisors, management
employes or individuals who are privy to confidential matters affecting the
employer-employe relationship. Under current law, it is also specifically provided
that affiliation does not include membership in a national, state, county or municipal

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federation of national or international labor organizations. This bill eliminates that
provision regarding the meaning of "affiliation".

5. Under current law, with certain exceptions, DER is required to certify for
vacant classified civil service positions the top 5 names from the register of eligible
applicants if the register has fewer than 50 names or the top 10% of names if the
register has more than 50 names but an agency never has to interview more than 10
persons for a single position.

This bill requires DER to certify the top 10 names on the register of eligible
applicants regardless of the size of the register and allows DER to certify additional
names based on statistical methods and personnel management principles that are
designed to maximize the number of certified names that are appropriate for the
specific, classified civil service position vacancy.