STATE OF NEVADALEGISLATIVE COUNSEL BUREAU

LEGISLATIVE BUILDING

401 S. CARSON STREETCARSON CITY, NEVADA 89701-4747

Fax No.: (775) 684-6600

RICK COMBS. Director(775) 684-6800

LEGISLATIVE COMMISSION (775) 684-6800MICHAEL ROBERSON. Senator, Chairman

Rick Combs. Director. Secretary

INTERIM FINANCE COMMITTEE (775) 684-6821PAUL ANDERSON, Assemblyman, Chairman

Cindy Jones. Fiscal AnalystMark Krmpotic, Fiscal Analyst

BRENDA J. ERDOES. Legislative Counsel (775) 684-6830PAUL V. TOWNSEND, Legislative Auditor (775) 684-6815VACANT. Research Director (775) 684-6825

June 11,2015

Assemblywoman Marilyn Kirkpatrick4747 Showdown DriveNorth Las Vegas, NV 89031-2133

Dear Assemblywoman Kirkpatrick:

You have asked our office to explain the provisions of Senate Bill No. 241 (2015)and indicate how those provisions work together. S.B. 241 was signed by the Governorand became effective on June 1, 2015.

Sections 1 to 1.7, inclusive, of S.B. 241 make various changes to chapter 288 ofNRS, which governs the labor relations of local government employers and their

employees. Section 1 provides that "[a] local government employer may agree to provideleave to any of its employees for time spent by the employee in performing duties orproviding services for an employee organization [i.e., a union] if the full cost of such

leave is paid or reimbursed by the employee organization or is offset by the value ofconcessions made by the ... organization" in negotiating a collective bargainingagreement (CBA) with the employer. NRS 288.150 makes "paid or nonpaid leaves ofabsence" a mandatory subject of bargaining, and section 1.2 of S.B. 241 amends NRS288.150 to provide that any such leave must be "consistent with the provisions of thischapter." Thus, while the parties are required to bargain in good faith over the subject of

leaves of absence, any provision for "association leave" in a CBA must be consistentwith the requirements of section 1 of S.B. 241.

Under existing law, the Local Government Employee-Management RelationsBoard (EMRB) is authorized to hear and decide a complaint involving an alleged"prohibited practice." (NRS 288.110, 288.270, 288.280) Existing law makes it aprohibited practice for a local government employer or an employee organization torefuse to bargain in good faith with respect to a mandatory subject of bargaining. (NRS288.270(l)(e), (2)(b)) If a complaint is filed, existing law generally requires the EMRB toconduct a hearing on the matter within 180 days after it decides to hear the complaint.

(NSPO Rev. 6-15)

Assemblywoman KirkpatrickJune 11,2015Page 2

(NRS 288.110) Section 1.1 of S.B. 241 shortens this period to 45 days where a refusal tobargain is alleged, unless the parties agree to waive this requirement.

Section 1.3 of S.B. 241 limits the authority of a local government employer to payan increase in compensation or monetary benefits following the expiration of a CBA.

Section 1.3 provides in part that:

[Notwithstanding any provision of the [CBA] to the contrary, upon theexpiration of a [CBA], if no successor agreement is effective and until a

successor agreement becomes effective, a local government employershall not pay to or on behalf of any employee in the affected bargainingunit any compensation or monetary benefits in any amount greater thanthe amount in effect as of the expiration of the [CBA].

Section 1.3 goes on to provide that the foregoing provisions:

[D]o not prohibit a local government employer from paying:(a) An increase in compensation or monetary benefits during thefirst quarter of the next ensuing fiscal year .. . after the expiration of a

[CBA]; or(b) An increase in the employer's portion of the matchingcontribution rate for employees and employers in accordance with anadjustment in the rate of contributions pursuant to NRS 286.450.

(NRS 286.450 provides for periodic adjustments in the rate of contributions to the PublicEmployees' Retirement System.) For the purposes of these provisions, section 1.3provides that a CBA "[e]xpires ... at the end of the term stated in the [CBA],notwithstanding any provision of the [CBA] that it remain in effect, in whole or in part,after the end of that term until a successor [CBA] becomes effective." Where the partiesare engaged in negotiations or are at impasse over the negotiation of a successor CBA,section 1.3 is intended to encourage the parties to conclude their negotiations or resolvethe impasse as soon as possible. While section 1.3 limits the payment of certainadditional amounts as compensation or monetary benefits until a successor CBA becomeseffective, it does not provide that the prior CBA expires for all purposes or is otherwiseof no force or effect.

The existing provisions ofNRS 288.170 exclude certain local governmentemployees from membership in any "bargaining unit," effectively denying them the rightto engage in collective bargaining. Section 1.4 of S.B. 241 amends NRS 288.170 toexclude from any bargaining unit "a school administrator whose annual salary, adjustedfor inflation ... is greater than $120,000." Section 1.4 further provides for the manner inwhich the inflation adjustment is to be done. Sections 2 and 3 of S.B. 241 makeconforming changes.

Assemblywoman KirkpatrickJune 11,2015Page 3

If an employee organization desires to negotiate with a local governmentemployer under the provisions of chapter 288, existing law requires that the organizationgive written notice of its desire to the employer. Generally, if the subject of negotiationwill require the budgeting of money by the employer, the required notice must be givenon or before February 1. (NRS 288.180) Section 1.5 of S.B. 241 amends these provisionsto provide that an employee organization representing teachers or educational supportpersonnel must give notice of its desire to negotiate on or before January 1.

NRS 288.217 governs negotiations between school districts and employeeorganizations representing teachers and educational support personnel. More specifically,it governs the process by which an impasse in bargaining is resolved by arbitration if theparties are unable to reach an agreement. Section 1.6 of S.B. 241 revises NRS 288.217 intwo primary respects. First, it increases, from four to eight, the number of bargaining

sessions in which the parties must participate before impasse may be declared. Second, tohelp ensure that any impasse is resolved expeditiously, section 1.6 sets forth a processwhereby the parties select an arbitrator and schedule an arbitration hearing well inadvance of the impending expiration of the parties' CBA. Section 1.6 provides that thehearing must be scheduled for "not less than 3 consecutive business days, to begin notlater than June 10 immediately preceding the end of the term stated in the [CBA] or 60days before the end of that term, whichever is earlier." In addition, as a condition of his

or her selection, the arbitrator must agree to render his or her decision (if an arbitrationhearing is actually held) within 10 days after the submission of final offers by the parties.If an arbitrator fails or refuses to abide by all these conditions, section 1.6 of S.B. 241requires the parties to proceed immediately to select another arbitrator and repeat the

scheduling process.

NRS 288.270 makes it a prohibited practice for a local government employer oremployee organization to fail to provide certain information requested by the other party

in anticipation of bargaining. Under the existing provisions ofNRS 288.280, a complaintalleging a prohibited practice on this basis must be heard and determined "as soon aspossible" after the complaint is filed with the EMRB. Section 1.7 of S.B. 241 amendsNRS 288.280 to require in any such case that the complaint be heard and decided within

"45 days after the [EMRB] decides to hear the complaint, unless the parties agree towaive this requirement."

Sections 1.9, 1.95 and 3.5 of S.B. 241 make various changes relating to theemployment of public school principals. In summary:

1. During the first 3 years of his or her employment in the position of principal, aprincipal is employed "at-will" in that position, meaning that he or she may be reassignedto another position for any reason that is not unlawful, subject only to a requirement thathe or she must be given a written statement of the reason for the reassignment. Aprincipal who was previously employed by the school district in another position is, if

Assemblywoman KirkpatrickJune 11,2015

Page 4

reassigned, entitled to be assigned to his or her former position at the rate of pay providedfor that position.

2. A principal who successfully completes the probationary period in the positionof principal otherwise provided by statute reverts to at-will status if, in each of 2consecutive school years: (a) the rating of the school to which the principal is assigned, asdetermined by the Department of Education pursuant to the statewide system ofaccountability for public schools, is reduced by one or more levels; and (b) 50 percent ormore of the teachers assigned to the school request a transfer to another school. Such aprincipal is subject to immediate dismissal by the board of trustees of the school districton recommendation of the superintendent of the district.

3. Even after completing the prescribed probationary period, each administratoremployed by a school district (other than a principal or a highly-compensatedadministrator who is excluded from collective bargaining) must apply to thesuperintendent of the district every 5 years for reappointment to his or her position. Ifsuch an administrator is not reappointed but was previously employed by the district inanother position, the administrator is entitled to be assigned to his or her former positionat the rate of compensation provided for that position.

4. Existing law sets forth certain procedures governing the demotion, suspension,dismissal or nonreemployment of teachers and school administrators. (NRS 391.311-

391.3197) Pursuant to section 3.5 of S.B. 241, those procedures are made inapplicable to:(a) a principal during the first 3 years of his or her employment in the position ofprincipal; (b) a principal who reverts to at-will status as described in paragraph 2, above;

or (c) an administrator who is not reappointed to his or her position as described inparagraph 3, above.

Existing law allows the parties to a CBA, with the provisions of the CBA, tosupersede the provisions ofNRS 391.311 to 391.3197, inclusive, referred to above. (NRS391.3116) Section 4 of S.B. 241 provides an exception for the provisions of sections 1.9and 1.95 of S.B. 241, described above, meaning that sections 1.9 and 1.95 will apply tothe principals and other school administrators described in those sections without regardto the provisions of a CBA.

Various provisions of existing law govern the evaluation and employment ofschool administrators and teachers. (NRS 391.3127, 391.3129, 391.317, 391.3197)

Sections 4.2-4.8 of S.B. 241 provide that sections 1.9 and 1.95 of S.B. 241, describedabove, prevail over the existing provisions to the extent of any conflict between them.Thus, by way of example, a principal who reverts to at-will status pursuant to section 1.9of S.B. 241 is subject to immediate dismissal on recommendation of the superintendentof the district and is entitled to a written statement of the reasons for his or her dismissal.

Such a principal would not be entitled to a hearing before a hearing officer or arbitrator asotherwise required by NRS 391.317.

Assemblywoman KirkpatrickJune 11,2015Page 5

Section 5 of S.B. 241 is a transitory provision which provides:

Insofar as they conflict with the provisions of such an agreement, theamendatory provisions of [S.B. 241] do not apply during the current termof any contract of employment or collective bargaining agreement entered

into before the effective date of this act [June 1, 2015], but do apply to anyextension or renewal of such an agreement and to any agreement enteredinto on or after the effective date of this act [June 1, 2015]. For thepurposes of this section, the term of an agreement ends on the dateprovided in the agreement, notwithstanding any provision of the

agreement that it remains in effect, in whole or in part, after that date untila successor agreement becomes effective.

Section 5 of S.B. 241 operates to insulate from the effects of S.B. 241 any conflictingprovisions of a CBA or contract of employment entered into before June 1, 2015, but

only during the current term of such an agreement. Notwithstanding any conflict betweenthe provisions of S.B. 241 and the provisions of such an agreement, the bill applies to any

agreement entered into on or after June 1, 2015, and to any extension or renewal of anearlier agreement. While section 5 provides that the term of an agreement ends on thedate provided in the agreement, determining precisely when the term of an agreement hasended will require consideration of the specific language of the agreement and any othercircumstances that may be relevant to the interpretation of that language. Again, nothing

in section 5 of S.B. 241 purports to nullify an existing CBA or employment agreementupon the end of the term of the agreement, except to the extent that such an agreement

conflicts with the amendatory provisions of S.B. 241.

If you have any further questions regarding this matter, please do not hesitate tocontact this office.

Sincerely,

Brenda J. ErdoesLegislative Counsel

James W. PenroseSenior Principal Deputy Legislative Counsel

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