The Meyers-Milias-Brown Act (Gov. Code, §§ 3500-3511; hereafter the MMBA) governs collective bargaining and employer-employee relations for most California local public entities, including cities, counties, and special districts. Before July 1, 2001, an employee association claiming a violation of the MMBA could bring an action in superior court. (See
Santa Clara County Counsel Attys. Assn. v. Woodside
(1994)
The main issue here is whether the limitations period for making an MMBA unfair practice charge to the PERB is three years, which the PERB insists was the generally accepted limitations
This case presents two additional issues. One issue, which we address first, is whether this action is barred by the doctrine requiring exhaustion of administrative remedies. On this issue, we conclude that the failure to exhaust administrative remedies is
Because the Court of Appeal’s judgment is consistent with these conclusions, we affirm.
I. Facts and Procedural Background
On July 6, 2001, the California School Employees Association (CSEA) filed an MMBA unfair practice charge with the PERB against the Coachella Valley Mosquito and Vector Control District (District), a special district (see Health & Saf. Code, § 2000 et seq. [formerly § 2200 et seq.]) subject to the MMBA. The CSEA amended the charge on August 29, 2001. In the amended charge, the CSEA, as the
On November 13, 2001, the District filed an answer to the complaint and a motion to dismiss it. In the motion, the District argued that the PERB lacked jurisdiction over alleged MMBA violations occurring before July 1, 2001, and that six months was the limitations period for an MMBA unfair practice charge. On December 5, 2001, the PERB’s board agent denied the motion to dismiss.
The District objected to the board agent’s ruling and requested a ruling by the PERB itself. Under a PERB regulation, however, the PERB does not review a board agent’s interim ruling unless the agent joins in the party’s request for review. (Cal. Code Regs., tit. 8, § 32200.) On January 3, 2002, the board agent refused to join in the District’s request.
On January 9, 2002, the District petitioned the superior court for writs of mandate and prohibition, naming the CSEA and certain District employees as real parties in interest and arguing that the PERB lacked jurisdiction to issue the complaint. 2 After the PERB filed preliminary opposition, the superior court issued an order to show cause. Both the CSEA and the PERB then filed formal opposition in which they argued, among other things, that the District’s action was barred because the administrative proceedings had not concluded and therefore the District had not exhausted its administrative remedies. The superior court held a brief hearing, after which it denied the petition, concluding that the District was not required to exhaust its administrative remedies before challenging the PERB’s jurisdiction, that the PERB had jurisdiction over alleged MMBA violations occurring before July 1, 2001, that the limitations period for alleging these violations was three years, and that the PERB therefore had jurisdiction over each unfair practice alleged in the complaint.
The District appealed from the superior court’s judgment denying the petition. In May 2002, while the appeal was pending, the District and the CSEA executed a settlement agreement covering the merits of the unfair practices charge, the CSEA withdrew the charge, and the PERB complaint was dismissed. Although the settlement had rendered it moot, the appeal nonetheless proceeded, and all parties joined in urging the Court of Appeal to issue a decision on the merits. The court granted requests for judicial notice of various legislative history documents. On December 9, 2003, the court issued its decision.
The Court of Appeal held: (1) Because the appeal presented issues of broad public interest that were likely to recur, the court could properly resolve those issues even
This court granted the PERB’s petition for review.
II. Exhaustion of Administrative Remedies
In general, a party must exhaust administrative remedies before resorting to the courts.
(Abelleira v. District Court of Appeal
(1941)
“The exhaustion doctrine is principally grounded on concerns favoring administrative autonomy (i.e., courts should not interfere with an agency determination until the agency has reached a final decision) and judicial efficiency (i.e., overworked courts should decline to intervene in an administrative dispute unless absolutely necessary).”
(Farmers Ins. Exchange v. Superior Court
(1992)
The doctrine requiring exhaustion of administrative remedies is subject to exceptions.
(Public Employment Relations Bd. v. Superior Court
(1993)
Here, the Court of Appeal concluded that the futility exception excused the District’s failure to exhaust its administrative remedies because the PERB had held, in other cases, that all MMBA unfair practice charges filed with the PERB on and after July 1, 2001, are subject to the three-year limitations period in Code of Civil Procedure section 338. Therefore, the PERB had declared what its ruling would be on the limitations issue, even though it had not reviewed the board agent’s ruling in this particular matter.
That analysis is flawed. For the futility exception to apply, it is not sufficient that a party can show what the agency’s ruling would be on a particular
issue or defense.
Rather, the party must show what the agency’s ruling would be “ ‘on a particular
easel
”
(Jonathan Neil & Assoc., Inc.
v.
Jones, supra,
Here, it is not sufficient that we know what the PERB’s final ruling would have been on the District’s limitations defense. For the futility exception to apply, the District must show how the PERB would have ruled on the CSEA’s unfair practices charge. Had the administrative proceeding run its course, the District might have prevailed on some procedural ground other than expiration of the limitations period, or it might have prevailed on the merits. Thus, the District did not show that further administrative proceedings would have been futile because the outcome of those proceedings was known in advance.
Here, the limitations issue implicates the PERB’s administrative authority or jurisdiction because the District contends that the applicable limitations period for MMBA unfair practice charges is found in Government Code section 3541.5, subdivision (a), which states that- the PERB “shall not . . . [f] . . . [i]ssue a complaint in respect of any charge based upon an alleged unfair practice occurring more than six months prior to the filing of the charge.” Under this provision, expiration of the six-month limitation period deprives the PERB of authority to issue a complaint.
In deciding whether to entertain a claim that an agency lacks jurisdiction before the agency proceedings have run their course, a court considers three factors: the injury or burden that exhaustion will impose, the strength of the legal argument that the agency lacks jurisdiction, and the extent to which administrative expertise may aid in resolving the jurisdictional issue.
(Public Employment Relations Bd.
v.
Superior Court, supra,
Here, in regard to the first factor, the District did not show that it would suffer any unusual or irreparable injury if it were required to litigate the CSEA’s unfair practices charge to completion before obtaining a judicial resolution of the jurisdictional limitations issues. (See
Omaha Indemnity Co.
v.
Superior Court
(1989)
In regard to the second factor, as explained more fully in the next part of this opinion, the District makes a strong and ultimately persuasive argument
that the proper limitations period is six months and not, as the PERB has ruled, three years. Thus, the second factor also weighs in favor of excusing exhaustion. Finally, in regard to the third factor, judicial intervention at this stage will not deny us the benefit of the PERB’s administrative expertise; the issues are purely legal and of a kind within the expertise of courts, and
III. Statute of Limitations
To determine the limitations period for an unfair practice charge to the PERB alleging an MMBA violation, we begin by reviewing the history of the MMBA and of the PERB.
A. The MMBA
In 1961, the Legislature enacted the George Brown Act (Stats. 1961, ch. 1964, pp. 4141-4143), which for the first time recognized the rights of state and local public employees to organize and to have their representatives meet and confer with their public agency employers over wages and working conditions. In 1968, the Legislature went a step further by enacting the MMBA (Stats. 1968, ch. 1390, pp. 2725-2729), which “authorized labor and management representatives not only to confer but to enter into written agreements for presentation to the governing body of a municipal government or other local agency.”
(Glendale City Employees’ Assn., Inc.
v.
City of Glendale
(1975)
The MMBA imposes on local public entities a duty to meet and confer in good faith with representatives of recognized employee organizations, in order to reach binding agreements governing wages, hours, and working conditions of the agencies’ employees. (Gov. Code, § 3505.) “The duty to bargain requires the public agency to refrain from making unilateral changes in employees’ wages and working conditions until the employer and employee association have bargained to impasse . . . .”
(Santa Clara County Counsel Attys. Assn. v. Woodside, supra,
This court has observed that the MMBA was “[a] product of political compromise,” that its provisions “are confusing, and, at times, contradictory,” and that it “furnishes only a ‘sketchy and frequently vague framework of employer-employee relations for California’s local governmental agencies.’ ”
(International Brotherhood of Electrical Workers v. City of Gridley
(1983)
Although no published appellate decision ever expressly determined what statute of limitations applied to a mandate action to enforce MMBA-created rights and duties, a Court of Appeal held that the three-year statute of limitations in subdivision (a) of Code of Civil Procedure section 338 (hereafter section 338(a)) applied to an action to enforce a “state labor law.”
(Giffin v. United Transportation Union, supra,
B. The PERB
The history of the PERB begins in 1975, when the Legislature adopted the Educational Employment Relations Act (Gov. Code, §§ 3540-3549.3; hereafter the EERA), which governs employer-employee relations for public schools (kindergarten through high school) and community colleges. (Stats. 1975, ch. 961, § 2, pp. 2247-2263.) As part of this new statutory scheme, the Legislature created the Educational Employment Relations Board (EERB),
“an expert, quasi-judicial administrative agency modeled after the National Labor Relations Board, to enforce the act.”
(Pacific Legal Foundation v. Brown
(1981)
The Legislature structured the EERA with the intention that it would eventually be expanded to incorporate other public employees. Thus, the EERA contains a declaration of purpose that includes this paragraph: “It is the further intention of the Legislature that any legislation enacted by the Legislature governing employer-employee relations of other public employees shall be incorporated into this chapter to the extent possible. The Legislature also finds and declares that it is an advantageous and desirable state policy to expand the jurisdiction of the board created pursuant to this chapter to cover other public employers and their employees, in the event that this legislation is enacted, and if this policy is carried out, the name of the Educational Employment Relations Board shall be changed to the ‘Public Employment Relations Board.’ ” (Gov. Code, § 3540.) 5
Two years later, in 1977, the Legislature enacted the State Employer-Employee Relations Act (Gov. Code, §§ 3512-3524) to govern relations between the state government and certain of its employees. (Stats. 1977, ch. 1159, § 4, pp. 3751-3760.) It was later renamed, and its official name is now the Ralph C. Dills Act (hereafter the Dills
Since 1977, the PERB’s jurisdiction has continued to expand as the Legislature has enacted new employment relations laws covering additional categories of public agencies and their employees. In 1978, the Legislature enacted the Higher Education Employer-Employee Relations Act (Gov. Code, §§ 3560-3599; hereafter the HEERA) to govern labor relations within the University of California, the California State University, and Hastings College of the Law. (Stats. 1978, ch. 744, § 3, pp. 2312-2333.) In 2000, the Legislature not only brought the MMBA within the PERB’s jurisdiction (Stats. 2000, ch. 901, § 8), it also enacted the Trial Court Employment Protection and Governance Act (Gov. Code, §§ 71600-71675; hereafter the TCEPGA) to govern labor relations and other employment matters within the state’s trial courts. (Stats. 2000, ch. 1010, § 14.) In 2002, the Legislature enacted the Trial Court Interpreter Employment and Labor Relations Act (Gov. Code, §§ 71800-71829; hereafter the TCIERA) to govern labor relations and employment matters for trial court interpreters. (Stats. 2002, ch. 1047, § 2.) In 2003, the Legislature enacted the Los Angeles County Metropolitan Transit Authority Transit Employer-Employee Relations Act (Pub. Util. Code, §§ 99560-99570.4; hereafter the TERA) to govern labor relations for a public transit district. (Stats. 2003, ch. 833, § 1.)
In enacting the HEERA, the TCEPGA, the TCIERA, and the TERA, the Legislature followed the pattern set by the Dills Act. It did not incorporate the new laws’ substantive provisions into the EERA; instead, it enacted the HEERA, the TCEPGA, and the TCIERA as separate chapters within the Government Code and the TERA as a chapter within the Public Utilities Code. But the Legislature expanded the PERB’s jurisdiction to cover unfair labor practices alleged under each of these labor relations laws. (Gov. Code, §§ 3563, 71639.1, 71825; Pub. Util. Code, § 99561.)
In each of these six public employment relations laws—the Dills Act, the EERA, the HEERA, the TCEPGA, the TCIERA, and the TERA—the Legislature has expressly and separately specified a six-month limitations period for filing unfair practice charges with the PERB.
6
(Gov. Code, §§ 3514.5, subd. (a), 3541.5, subd. (a), 3563.2, subd. (a), 71639.1, subd. (c), 71825, subd. (c); Pub. Util. Code, §99561.2, subd. (a).) Thus, the EERA provides: “Any employee, employee organization, or employer shall have the right to file an unfair practice charge, except that the board shall not ...[!]... [ijssue a complaint in respect of any charge based upon an alleged unfair practice occurring more than six months prior to the filing of the charge.” (Gov. Code, § 3541.5, subd. (a).)
7
The other provisions
C. Analysis
As the parties recognize, determining what limitations period applies to an MMBA unfair practice charge requires construction of the relevant statutes. When engaged in statutory construction, our goal is “to ascertain the intent of the enacting legislative body so that we may adopt the construction that best effectuates the purpose of the law.”
(Hasson
v.
Mercy American River Hospital
(2003)
The Court of Appeal here concluded that the six-month limitations period in Government Code section 3541.5, a provision of the EERA, applies also to unfair practice charges filed with the PERB under the MMBA. The PERB argues, instead, that because the Legislature did not specify a limitations period when it vested the PERB with jurisdiction over MMBA unfair practice charges, it must have intended to continue the existing three-year statute of limitations that had applied to actions filed in superior court. The PERB invokes the rule of statutory construction that when the Legislature amends a statute without altering parts of the statute that have previously been judicially construed, the Legislature is deemed to have been aware of and to have acquiesced in the previous judicial construction. (See
Sharon S. v. Superior Court
(2003)
But “[t]he presumption of legislative acquiescence in prior judicial decisions is not conclusive in determining legislative intent”
(Harris
v.
Capital Growth Investors XIV
(1991)
First, as noted above, no published decision had ever expressly held
Moreover, other MMBA actions filed in superior court were subject to other statutes of limitation. In
Anderson
v.
Los Angeles County Employee Relations Com.
(1991)
Second, the statutes of limitations set forth in the Code of Civil Procedure, including the three-year period in section 338(a), do not apply to administrative proceedings.
(City of Oakland
v.
Public Employees’ Retirement System
(2002)
We view this suggested inference as implausible and unsupported. As we have remarked, “[i]n the area of statutory construction, an examination of what the Legislature has done (as opposed to what it has left undone) is generally the more fruitful inquiry.”
(Harris
v.
Capital Growth Investors XIV, supra,
Finally, and perhaps most importantly, we do not construe statutes in isolation; rather, we construe every statute with reference to the whole system of law of which it is a part, so that all may be harmonized and anomalies avoided.
(In re Marriage of Harris
(2004)
The PERB relies also on the rule of statutory construction that when the Legislature uses a critical word or phrase in one statute, the omission of that word or phrase in another statute dealing with the same general subject generally shows a different legislative intent. (See
In re Young
(2004)
The PERB argues that nothing in the language of the MMBA supports an inference that the Legislature intended a six-month limitations period for an MMBA unfair practice charge. But Government Code section 3509, which vests the PERB with jurisdiction over MMBA matters, states in subdivision (b) that “[a] complaint alleging any violation of this chapter or of any rules and regulations adopted by a public agency pursuant to Section 3507 or 3507.5
shall be processed as an unfair practice charge by the board.”
(Italics added.) This language is appropriately read as referring to and incorporating an existing body of law concerning the manner in which the PERB processes unfair
The PERB argues that Government Code section 3509, subdivision (b), which requires the PERB to “apply and interpret unfair labor practices consistent with existing judicial interpretations of this chapter,” should be construed as requiring the PERB to continue applying the three-year statute of limitations previously applied to judicial proceedings to enforce the MMBA. (See also Gov. Code, § 3510, subd. (a) [“The provisions of this chapter shall be interpreted and applied by the board in a manner consistent with and in accordance with judicial interpretations of this chapter.”].) This provision is most reasonably construed as incorporating existing judicial interpretations of substantive provisions of the MMBA, including what constitutes an unfair labor practice, but not as incorporating judicial decisions prescribing the procedures that were deemed suitable to judicial enforcement proceedings. In any event, there was no existing judicial precedent on the appropriate limitations period for an MMBA unfair practice charge to the PERB.
We have reviewed the documents judicially noticed by the Court of Appeal relating to Senate Bill No. 739 (1999-2000 Reg. Sess.), the legislation that vested the PERB with jurisdiction over MMBA unfair practice charges. (See
Dowhal
v.
SmithKline Beecham Consumer Healthcare
(2004)
IV. Retroactivity
The PERB and the CSEA argue that if, as we have concluded, transfer of initial jurisdiction over MMBA unfair practice charges from the superior courts to the PERB shortened the limitations period from three years to six months, this shortened period may not be applied retrospectively to unfair practices occurring before July 1, 2001, the legislation’s effective date or, indeed, to any unfair practice occurring before the Court of Appeal’s decision.
Legislation that shortens a limitations period is considered procedural and is applied retroactively to preexisting causes of action, so long as
parties are given a reasonable time in which to sue.
(Brown
v.
Bleiberg
(1982)
Applying these legal principles, the Court of Appeal in this case concluded that the legislation vesting PERB with jurisdiction over MMBA unfair practice charges, effective July 1, 2001, shortened the applicable limitations period from three years to six months. This shortened limitations period applies retroactively to MMBA unfair practice charges based on conduct that occurred before July 1, 2001, provided that parties are given a reasonable time in which to file such charges with the PERB. Concluding that six months was a reasonable time in this context, the Court of Appeal held that for MMBA unfair practices occurring before July 1, 2001, a charge filed with the PERB was timely if brought within three years of the occurrence of the unfair practice, or within six months of July 1, 2001 (in other words, before January 1, 2002), whichever was sooner. We agree that this is a correct application of the controlling legal principles.
The PERB and the CSEA argue in substance that the Court of Appeal’s holding retroactively extinguishes existing unfair practice claims because parties had no notice of the six-month limitations period until the Court of Appeal issued its decision. This assertion erroneously assumes that the Court of Appeal, rather than the Legislature, shortened the limitations period to six months and that this shortened limitations period took effect only when the Court of Appeal issued its decision. To the contrary, the Legislature established the six-month limitations period, effective July 1, 2001. After that date, there was no valid legal basis for any party, or for the PERB, to rely on the previous three-year limitations period, which had applied to judicial actions to enforce the MMBA. In determining the applicable limitations period, the Court of Appeal merely decided a legal question; it did not change any settled rule on which parties could reasonably have relied. (See
Brennan v. Tremco Inc.
(2001)
V. Disposition
The Court of Appeal’s judgment is affirmed.
George, C. J., Baxter, J., Werdegar, J., Chin, J., Brown, J., and Moreno, J., concurred.
Notes
Exempt from the PERB’s jurisdiction under the MMBA are peace officers, management employees, the City of Los Angeles, and the County of Los Angeles. (Gov. Code, §§ 3509, subds. (d)-(e), 3511.)
Final decisions of the PERB are now reviewable by a writ petition filed directly in the Court of Appeal, rather than in the superior court. (Gov. Code, § 3509.5, subd. (b), added by Stats. 2002, ch. 1137, § 3.)
We agree with the Court of Appeal that this case poses issues of broad public interest that are likely to recur, and we conclude that the Court of Appeal did not abuse its discretion in deciding to resolve those issues even though this case has become moot. (See
Cadence Design Systems, Inc. v. Avant! Corp.
(2002)
No party has challenged this holding.
The chapter referred to in the quoted portion of the statute is chapter 10.7 of division 4 of title 1 of the Government Code. It includes Government Code sections 3540 to 3549.3.
Six months is also the limitations period for an unfair practice charge to the Agricultural Labor Relations Board. (Lab. Code, § 1160.2.)
This language tracks the wording of the National Labor Relations Act. (See 29 U.S.C. § 160(b) [“no complaint shall issue based upon any unfair labor practice occurring more than six months prior to the filing of the charge with the Board and the service of a copy thereof upon the person against whom such charge is made”].)
Although the six public employment relations laws all contain the same six-month limitations period, they differ in regard to tolling provisions. The HEERA and the TERA do not contain express tolling provisions. (Gov. Code, § 3563.2, subd. (a); Pub. Util. Code, § 99561.2, subd. (a).) But the four other laws contain variously worded provisions for tolling the six-month limitations period while a party exhausts other remedies. Both the Dills Act and the EERA provide that “[t]he board shall, in determining whether the charge was timely filed, consider the six-month limitation set forth in this subdivision to have been tolled during the time it took the charging party to exhaust the grievance machinery.” (Gov. Code, § 3514.5, subd. (a); see § 3541.5, subd. (a).) The TCEPGA provides that “if the rules and regulations adopted by a trial court require exhaustion of a remedy prior to filing an unfair practice charge or the charging party chooses to exhaust a trial court’s remedy prior to filing an unfair practice charge, the six-month limitation set forth in this subsection shall be tolled during such reasonable amount of time it takes the charging party to exhaust the remedy, but nothing herein shall require a charging party to exhaust a remedy when that remedy would be futile.” (Gov. Code, § 71639.1, subd. (c).) The TCEERA similarly provides that “if the rules and regulations adopted by a regional court interpreter employment relations committee require exhaustion of a remedy prior to filing an unfair practice charge or the charging party chooses to exhaust a regional court interpreter employment relations committee’s remedy prior to filing an unfair practice charge, the six-month limitation set forth in this subsection shall be tolled during such reasonable amount of time it takes the charging party to exhaust the remedy, but nothing herein shall require a charging party to exhaust a remedy when that remedy would be futile.” (Gov. Code, § 71825, subd. (c).)
The PERB directs our attention to
Key v. Housing Authority of the City of Oakland
(N.D.Cal. Mar. 8, 1994, No. C 93-1880 BAG)
