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.