PARTIES; DEFINITIONS; WHO IS AN EMPLOYER? – In General

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The Board determined that Silicon Valley Medical Development, LLC (SVMD), a single-member limited liability corporation wholly owned by El Camino Hospital (ECH), a “governmental subdivision” under MMBA section 3501(c), is an MMBA-covered employer. PERB interprets “governmental subdivisions” covered under MMBA section 3501(c) to correspond to “political subdivisions” excluded from the NLRA under 29 United States Code section 152(2). (National Labor Relations Bd. v. Natural Gas Utility Dist. of Hawkins County, Tenn. (1971) 402 U.S. 600 (Hawkins County); Central Contra Costa Transit Authority (2012) PERB Decision No. 2263-M, p. 25 (Transit Authority); El Camino Hospital District (2009) PERB Decision No. 2033-M, pp. 17-18.) Hawkins County held that a private or quasi-private entity qualifies as a political subdivision if it is either: “(1) created directly by the State, so as to constitute a department or administrative arm of the government, or (2) administered by individuals who are responsible to public officials or to the general electorate.” (Hawkins County, supra, 402 U.S. at pp. 604-605.) The Board found that SVMD qualifies as a political subdivision under the second Hawkins County category. To reach this conclusion, PERB analyzed facts relevant to this inquiry under three main headings: “Public Purpose,” “Public Funding,” and “Public Control.” (Workforce Investment Board (2014) PERB Order No. Ad-418-M, pp. 24-26 (WIB).) (pp. 25-27.) SVMD is subject to public control, an often-vital factor in deciding whether an entity is administered by individuals who are responsible to public officials or voters. If public officials have authority to decide who fills a majority of seats on an entity’s governing board, that means the entity is administered by individuals who are responsible to public officials or the general electorate. (Transit Authority, supra, PERB Decision No. 2263-M, p. 24; accord WIB, supra, PERB Order No. 418-M, pp. 8, 11, 13-14, 18, 25-28, & 30-31, and adopting administrative determination at pp. 2 & 4.) SVMD’s leaders are ultimately responsible to El Camino Hospital District officials, and in addition, its leaders are responsible to ECH, which is a public agency for MMBA purposes. (pp. 27-31.) Moreover, SVMD has received significant public funding, and its goals fall squarely within the District’s public purposes. For these reasons, the Board determined SVMD falls within the second Hawkins County category and is a “governmental subdivision” within the meaning of MMBA section 3501(c). (pp. 31-34.)