By Hilderbran H.B. No. 407 76R384 JMM-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain restrictions on the use of labor union dues; 1-3 providing penalties. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 101, Labor Code, is amended by adding 1-6 Subchapter H to read as follows: 1-7 SUBCHAPTER H. RESTRICTION ON USE OF LABOR UNION DUES 1-8 Sec. 101.401. DEFINITIONS. In this subchapter: 1-9 (1) "Expenditure for a political purpose" includes 1-10 money spent for issue advocacy, lobbying for legislation, 1-11 participating in social and political events, soliciting 1-12 contributions for political activities or candidates, political 1-13 communications to members, voter registration, voter education, 1-14 get-out-the-vote campaigns, and other political activities that do 1-15 not bear on the ratification or implementation of a collective 1-16 bargaining agreement. 1-17 (2) "Labor union" has the meaning assigned by Section 1-18 101.101. 1-19 Sec. 101.402. USE OF DUES FOR POLITICAL PURPOSES. (a) A 1-20 labor union may not: 1-21 (1) require a member to make an expenditure for a 1-22 political purpose as a condition of employment, a condition of 1-23 contract, or a condition of membership in the labor union; 1-24 (2) reward or offer a benefit to a member who makes an 2-1 expenditure for a political purpose; or 2-2 (3) penalize or otherwise harm a member who chooses 2-3 not to make an expenditure for a political purpose. 2-4 (b) A labor union may not use any portion of dues or other 2-5 fees paid by a member of the labor union to make an expenditure for 2-6 a political purpose unless the labor union has obtained the written 2-7 authorization of the member as provided by Section 101.403. 2-8 (c) A labor union that uses any portion of dues or other 2-9 fees paid by a member of the labor union to make an expenditure for 2-10 a political purpose shall maintain records for the expenditures 2-11 that comply with the requirements of Section 101.404. 2-12 Sec. 101.403. WRITTEN AUTHORIZATION. (a) A member of a 2-13 labor union may execute a written authorization that permits the 2-14 labor union to use a portion of dues or fees paid by the member to 2-15 make an expenditure for a political purpose. The authorization 2-16 must be voluntary, written, and executed before the date the 2-17 expenditure is made. 2-18 (b) An authorization made under this section must clearly 2-19 state that the member is not required to execute the authorization 2-20 and that the member agrees to allow dues or fees paid by the member 2-21 to be used for a political purpose. 2-22 (c) The authorization must be signed by the member and 2-23 state: 2-24 (1) the name of the member; 2-25 (2) the name of the labor union; 2-26 (3) the total amount of the member's dues or fees that 2-27 may be used for a political purpose; 3-1 (4) the nature of the political purpose for which the 3-2 expenditure is to be made; 3-3 (5) the period for which the authorization is valid; 3-4 and 3-5 (6) the statement required by Subsection (d). 3-6 (d) The authorization must contain the following statement 3-7 immediately above the signature line for the authorization: 3-8 "Signing this authorization permits the labor union 3-9 designated above to use dues or other fees paid by me for the 3-10 political purpose or purposes specified in this authorization. 3-11 Political purposes include money spent for issue advocacy, lobbying 3-12 for legislation, participating in social and political events, 3-13 soliciting contributions for political activities or candidates, 3-14 political communications to members, voter registration, voter 3-15 education, get-out-the-vote campaigns, and other political 3-16 activities that do not bear on the ratification or implementation 3-17 of a collective bargaining agreement. My signature on this 3-18 authorization is voluntary." 3-19 (e) The period for which an authorization executed under 3-20 this section is valid may not exceed one year. The authorization 3-21 may be revoked in writing by the member who executed the 3-22 authorization at any time. 3-23 Sec. 101.404. DUTY TO MAINTAIN RECORDS. (a) A labor union 3-24 that makes an expenditure for a political purpose shall maintain a 3-25 recordkeeping system that separates accounts for money spent for 3-26 collective bargaining activities from accounts for money spent for 3-27 a political purpose. 4-1 (b) The labor union shall make a detailed annual report of 4-2 each account available to each member of the labor union. The 4-3 annual report must include detailed information describing the 4-4 manner in which labor dues and other fees are included in money 4-5 spent for a political purpose. 4-6 (c) A labor union subject to this section shall maintain 4-7 each authorization executed under Section 101.403 by a member of 4-8 the labor union at least until the 10th anniversary of the date the 4-9 authorization is executed. 4-10 Sec. 101.405. POSTED NOTICE. An employer whose employees 4-11 are represented by a collective bargaining agreement shall post a 4-12 notice in conspicuous places in the employer's place of business 4-13 informing employees that a labor union that accepts payment of fees 4-14 or dues from an employee must secure from the employee prior, 4-15 voluntary, written authorization if any portion of the fees or dues 4-16 will be used for a political purpose. 4-17 Sec. 101.406. LIABILITY. (a) A labor union that violates 4-18 this subchapter is liable to an affected member for: 4-19 (1) actual damages in the amount of the dues or fees 4-20 accepted or spent in violation of this subchapter; 4-21 (2) interest on the damages described under 4-22 Subdivision (1); 4-23 (3) attorney's fees and court costs; and 4-24 (4) other appropriate equitable relief. 4-25 (b) An action under this section may not be commenced after 4-26 the second anniversary of the date the member knew or should have 4-27 known that dues or fees were accepted or spent in violation of this 5-1 subchapter. 5-2 (c) Venue for a suit under this section is in: 5-3 (1) the county in which the violation is alleged to 5-4 have occurred; or 5-5 (2) the county in which a defendant resides. 5-6 Sec. 101.407. CIVIL PENALTY. (a) A labor union that 5-7 violates this subchapter is liable for a civil penalty not to 5-8 exceed $1,000 for each violation. 5-9 (b) A suit to recover the civil penalty may be brought by 5-10 the attorney general or by a county, district, or criminal district 5-11 attorney. 5-12 (c) A civil penalty recovered under this section shall be 5-13 deposited: 5-14 (1) in the state treasury if the attorney general 5-15 brings the suit; or 5-16 (2) in the general fund of the county in which the 5-17 violation occurred if a district attorney, criminal district 5-18 attorney, or county attorney brings the suit. 5-19 Sec. 101.408. CRIMINAL OFFENSE. (a) An officer of a labor 5-20 union commits an offense if the officer violates this subchapter. 5-21 (b) An offense under this section is a Class B misdemeanor. 5-22 SECTION 2. This Act takes effect January 1, 2000. 5-23 SECTION 3. The importance of this legislation and the 5-24 crowded condition of the calendars in both houses create an 5-25 emergency and an imperative public necessity that the 5-26 constitutional rule requiring bills to be read on three several 5-27 days in each house be suspended, and this rule is hereby suspended.