§ 32995. Escrow of Agency Fees.

(a) If agency fee objectors are identified before fee collection begins for the agency fee year, there shall be an advance reduction in fees and/or advance rebate for those agency fee objectors.

(b) If agency fees are collected before agency fee objectors are identified, the exclusive representative shall place in escrow, in an independently controlled escrow account, in an independent financial institution, all agency fees collected until the exclusive representative provides appropriate rebates and/or fee reductions for agency fee objectors.

(c) If not otherwise escrowed, the exclusive representative shall place in escrow, in an independently controlled escrow account, in an independent financial institution, all agency fee amounts reasonably in dispute until all agency fee challengers are identified and, thereafter, continue to escrow the amounts in dispute for all agency fee challengers until the challenges are resolved by the impartial decision maker or mutual agreement between the agency fee challenger and the exclusive representative has been reached on the proper amount of the agency fee, whichever comes first.

(d) Interest at the prevailing rate shall be paid by the exclusive representative on all rebated fees.

HISTORY

1. New section filed 3-2-89; operative 4-1-89 (Register 89, No. 12).

2. Amendment of Note filed 1-3-2000 as an emergency; operative 1-3-2000 (Register 2000, No. 1). A Certificate of Compliance must be transmitted to OAL by 5-2-2000 or emergency language will be repealed by operation of law on the following day.

3. Reinstatement of section as it existed prior to 1-3-2000 emergency amendment by operation of Government Code section 11346.1(f) (Register 2000, No. 18).

4. Amendment of Note filed 5-5-2000 as an emergency; operative 5-5-2000 (Register 2000, No. 18). A Certificate of Compliance must be transmitted to OAL by 9-5-2000 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 5-5-2000 order transmitted to OAL 7-26-2000 and filed 9-7-2000 (Register 2000, No. 36).

6. Change without regulatory effect amending Note filed 2-15-2001 pursuant to section 100, title 1, California Code of Regulations (Register 2001, No. 7).

7. Amendment of Note filed 6-11-2001 as an emergency; operative 7-1-2001 (Register 2001, No. 24). A Certificate of Compliance must be transmitted to OAL by 10-29-2001 or emergency language will be repealed by operation of law on the following day.

8. Certificate of Compliance as to 6-11-2001 order transmitted to OAL 10-18-2001 and filed 12-4-2001 (Register 2001, No. 49).

9. Amendment of Note filed 2-2-2004 as an emergency; operative 2-2-2004 (Register 2004, No. 6). A Certificate of Compliance must be transmitted to OAL by 6-1-2004 or emergency language will be repealed by operation of law on the following day.

10. Certificate of Compliance as to 2-2-2004 order transmitted to OAL 5-4-2004 and filed 6-8-2004 (Register 2004, No. 24).

11. Amendment of Note filed 8-30-2004 as an emergency; operative 8-30-2004 (Register 2004, No. 36). A Certificate of Compliance must be transmitted to OAL by 12-28-2004 or emergency language will be repealed by operation of law on the following day.

12. Amendment of Note refiled 12-27-2004 as an emergency; operative 12-29-2004 (Register 2004, No. 53). A Certificate of Compliance must be transmitted to OAL by 4-28-2005 or emergency language will be repealed by operation of law on the following day.

13. Certificate of Compliance as to 12-27-2004 order transmitted to OAL 4-26-2005 and filed 5-31-2005 (Register 2005, No. 22).

14. Amendment of section heading, section and Note filed 7-23-2007; operative 8-22-2007 (Register 2007, No. 30).

15. Amendment of Note filed 12-6-2013 as an emergency; operative 12-6-2013 pursuant to Government Code section 110035.5 (Register 2013, No. 51). This regulatory action is deemed an emergency exempt from OAL review and was filed directly by the agency with the Secretary of State pursuant to Government Code section 110035.5. A Certificate of Compliance must be transmitted to OAL by 6-4-2014 or emergency language will be repealed by operation of law on the following day.

Note

Note: Authority cited: Sections 3509(a), 3513(h), 3541.3(g), 3563(f), 71639.1(b), 71825(b) and 110015, Government Code; and Section 99561(f), 99561(h) and 99561(m), Public Utilities Code. Reference: Sections 3502.5, 3515.7, 3540.1(i), 3543, 3546, 3583.5, 71632.5, 71814 and 110019, Government Code; Section 99566.1, Public Utilities Code; Chicago Teachers Union, Local No. 1 v. Hudson (1986) 475 U.S. 292; and Grunwald v. San Bernardino Unified School District (9th Cir. 1990) 994 F.2d 1370, cert. denied, 510 U.S. 964 (1993).