FISCAL NOTE
Date Requested: March 12, 2021
Time Requested: 11:29 AM |
| Agency: |
Personnel, WV Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1301 |
Introduced |
HB3124 |
|
|---|
| CBD Subject: |
State Personnel |
|---|
|
FUND(S):
General Fund, Special Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense, Increases Existing Expenses, Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The Division of Personnel (DOP) is unable to measure the cost associated with this bill as it applies to local government and state employees not covered by the DOP merit system. Though unable to provide specific cost projections, the DOP offers the following list of potential costs associated with the bill:
1. Wages and real estate costs for staff of the newly created Public Employee Relations Board. Though administrative staff is mentioned in the proposed statutory language, the Board would also need investigative and legal staff.
2. Wages, training and real estate costs for staff, including labor attorneys, that will need to be hired by the agencies to coordinate labor relations.
3. Wages, training and real estate costs for the new State agency/office that will likely need to be created to coordinate collective bargaining among the Executive Branch agencies. The agency would likely be responsible for overseeing:
a. Development of new law and policy as well as revision of existing law and policy to implement collective bargaining.
b. Development and provision of training for employees engaged in collective bargaining on behalf of the State.
c. Ensuring that bargaining is conducted in such a manner to provide fair and equal treatment for State employees (particularly classified employees in order to ensure adherence with merit system principles) while protecting the interests of taxpayers.
d. Providing oversight of the election process.
e. Participating in unfair labor practice (ULP) investigations and possibly litigation on behalf of the State.
4. Wages, opportunity costs and diminished services to the public Costs associated with elections, strategy sessions, negotiation sessions, mediation, arbitration, appeals and other litigation.
5. Inflated wages for all impacted employees since the legislation requires an arbitrator to consider the “wages, hours, and terms and conditions of employment of the employees involved in the arbitration proceedings with the wages, hours, and terms and conditions of employment of other persons performing similar services in the public and private sectors” when reaching decisions.
6. Expenses related to bargaining representative meetings with employees during the workday to discuss and investigate grievances and other workplace issues.
7. Expenses related to 30-minute mandatory meetings between the bargaining representative and all new employees.
8. Potential loss of federal funding resulting from work stoppages.
9. Possible damages and/or fines resulting from ULP claims.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2021
Increase/Decrease
(use"-") |
2022
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
The DOP is unable to measure the cost associated with this bill as it applies to local government and state employees not covered by the DOP merit system.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
The DOP has identified the following areas of vagueness and technical defects:
1. The definition of “Board” cites §21-1F-5 and DOP believes it should be §21-1F-10.
2. The term “Strike” is defined but not otherwise used in the legislation.
3. §21-1F-6(d) states “The scope of collective bargaining between a state agency and an exclusive representative of state employees shall include wages, hours, and other terms and conditions of employment and shall specifically include matters within the administrative discretion of the Director of the Division of Personnel or appointing authorities; however, benefits provided by any public employee retirement program administered by the Consolidated Public Retirement Board. The chief executive officer of the agency shall select and designate the state agency's representative in collective bargaining.” The "however, benefits provided by any public employee retirement program administered by the Consolidated Public Retirement Board" portion appears to be missing language at the end.
4. §21-1F-12(d) states “Each state-controlled enterprise, independent political subdivision, authority, or agency employing public employees not covered by in the classified service…” DOP believes “covered by” should be replaced with “included”.
5. Multiple references are made to the DOP’s authority as it pertains to all state agencies. However, not all state agencies are covered by the DOP merit system and the legislation adds a new article to the Division of Labor’s statute rather than the DOP’s statute.
Person submitting Fiscal Note: Joe Thomas
Email Address: joe.f.thomas@wv.gov