82R9682 ATP-F

By: Parker H.B. No. 2986

A BILL TO BE ENTITLED

AN ACT

relating to political expenditures made by labor organizations; providing civil and criminal penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 101, Labor Code, is amended by adding Subchapter H to read as follows:

SUBCHAPTER H. POLITICAL EXPENDITURES BY LABOR ORGANIZATIONS

Sec. 101.351. DEFINITIONS. In this subchapter:

(1) "Ballot proposition" means a question or proposal submitted in an election for an expression of the voters' will.

(2) "Expenditure for a political purpose" includes money spent directly or indirectly for:

(A) issue advocacy;

(B) lobbying for legislation or administrative action;

(C) participating in events that are both social and political in nature;

(D) soliciting contributions for political activities or candidates or contributions to a candidate, political committee, political party, or political fund;

(E) supporting or opposing a ballot proposition;

(F) making a political communication; and

(G) all other activities that involve a political purpose.

(3) "Labor organization":

(A) means a lawful organization of any kind that is composed wholly or partly of employees and that exists wholly or partly for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or other terms and conditions of employment; and

(B) includes each employee association and union for public employees.

(4) "Political fund" means a fund established by a labor organization for political purposes as provided by Section 101.352.

(5) "Political purpose" means the intention to influence, directly or indirectly, any person to refrain from voting or to vote for or against:

(A) a candidate for public office at an election, including a primary election, a caucus, or a political convention; or

(B) a ballot proposition.

(6) "Public employee" means a person employed by a public employer.

(7) "Public employer" means an employer that is:

(A) this state or an agency of this state;

(B) a state institution of higher education; or

(C) a municipal corporation, county, municipality, school district, or special district, or another political subdivision of this state.

(8) "Union dues" means dues, fees, advance fees, initiation fees, assessments, or other money required as a condition of membership or participation in a labor organization.

Sec. 101.352. ESTABLISHMENT AND ADMINISTRATION OF POLITICAL FUND. (a) A labor organization seeking to make expenditures for political purposes shall establish a political fund.

(b) A labor organization that establishes a political fund shall:

(1) maintain the political fund as a separate, segregated account apart from any account containing money received by the labor organization as union dues;

(2) ensure that each contribution to the political fund is voluntary;

(3) if applicable, ensure that each contribution by members of the labor organization to the political fund is executed in accordance with Section 101.356; and

(4) if the political fund will engage in activities regulated by Title 15, Election Code:

(A) establish the political fund as a general-purpose committee, as defined by Section 251.001, Election Code; and

(B) file a campaign treasurer appointment as required by Chapter 254, Election Code.

(c) Except as otherwise provided by this subchapter, a labor organization may make expenditures for political purposes only from a political fund established in accordance with law.

Sec. 101.353. DUTY TO MAINTAIN RECORDS. (a) A labor organization that makes an expenditure for a political purpose shall maintain a recordkeeping system evidencing the separation of the fund derived from union dues from the labor organization's political fund.

(b) The labor organization shall make available a detailed annual report of each account to each member of the labor organization. The report must include detailed information describing the manner in which the labor organization used the union dues.

(c) A labor organization subject to this section shall maintain each authorization executed under Section 101.356 by a member of the labor organization at least until the 10th anniversary of the date the authorization is executed.

Sec. 101.354. PROHIBITED PRACTICES. (a) A labor organization may not:

(1) spend any portion of union dues for a political purpose;

(2) transfer union dues to a political fund;

(3) require any person to make an expenditure for a political purpose as a condition of employment, a condition of contract, or a condition of membership in the labor organization;

(4) reward or offer a benefit to a member who makes an expenditure for a political purpose;

(5) penalize or otherwise harm a member who chooses not to make an expenditure for a political purpose;

(6) use union dues for administration of a political fund; or

(7) use union dues to solicit contributions from any person for a political purpose.

(b) Nothing in this subchapter prohibits a labor organization from:

(1) making expenditures of union dues to communicate directly with its own members or with the families of its members about political candidates or political issues; and

(2) making reasonable expenditures of union dues for use in the establishment of a labor organization's political fund.

(c) This subchapter is not intended to preempt any requirement of federal law.

Sec. 101.355. PROHIBITED PRACTICES FOR PUBLIC EMPLOYER. (a) A public employer may not deduct from the wages of its employees any amounts to be paid to:

(1) a candidate, as defined by Section 251.001, Election Code;

(2) a political committee, as defined by Section 251.001, Election Code;

(3) a political party;

(4) a political fund; or

(5) an entity established by a labor organization to solicit, collect, or distribute money primarily for political purposes.

(b) The attorney general may bring an action to require the public employer to comply with the requirements of this section.

Sec. 101.356. VOLUNTARY WRITTEN AUTHORIZATION TO MAKE PAYROLL DEDUCTIONS FOR POLITICAL PURPOSES. (a) Except as provided by Section 101.355, a member of a labor organization may authorize the member's employer to deduct a specified sum from the member's wages to be used for an expenditure for a political purpose or purposes. The authorization must be voluntary, written, and executed before the date the expenditure is made.

(b) Except as provided by Section 101.355, an employer may not, without a voluntary written authorization made under this section, deduct from the wages of its employees any amounts to be paid to:

(1) a candidate, as defined by Section 251.001, Election Code;

(2) a political committee, as defined by Section 251.001, Election Code;

(3) a political party;

(4) a political fund; or

(5) an entity established by a labor organization to solicit, collect, or distribute money primarily for political purposes.

(c) The authorization must be signed by the member of the labor organization and state:

(1) the member's name;

(2) the name of the labor organization;

(3) the total amount or percentage of the member's wages that may be deducted for the labor organization's political fund;

(4) the nature of the political purpose for which the expenditure is to be made;

(5) the period for which the authorization is valid; and

(6) the statement required by Subsection (d).

(d) The authorization must contain the following statement immediately above the signature line for the authorization:

"I understand that Texas is a right to work state, and that I am not required to join a labor union or contribute dues to a labor union as a condition of my employment. If I choose to be a member of or participate in a labor organization, I understand that a labor organization:

"(1) may not expend any portion of union dues for a political purpose;

"(2) may not transfer union dues to a political fund;

"(3) may not require any person to make an expenditure for a political purpose as a condition of employment, a condition of contract, or a condition of membership in the labor organization;

"(4) may not reward or offer a benefit to a member who makes an expenditure for a political purpose;

"(5) may not penalize or otherwise harm a member who chooses not to make an expenditure for a political purpose;

"(6) may not use union dues for administration of an established political fund; and

"(7) may not use union dues to solicit contributions from any person for a political purpose.

"In signing this authorization, I, ____________ (insert your name), voluntarily permit my employer to deduct __________ (insert dollar amount or percentage) of my wages every ______ (insert time period) for the political purpose or purposes stated in this authorization. I understand that I may revoke this authorization at any time."

(e) Only the member may write in the amount or percentage to be deducted from the member's wages.

(f) The period for which an authorization executed under this section is valid may not exceed one year. The authorization may be revoked at any time in writing by the labor organization member who executed the authorization.

(g) An employer shall immediately cease making payroll deductions authorized under this section on receiving a written communication from the employee directing that the employer cease the deductions.

Sec. 101.357. POSTED NOTICE. An employer, other than a public employer, whose employees are represented by a labor organization shall post a notice in conspicuous places in the employer's place of business informing employees that union dues cannot be used for a union's political fund, and that any deduction from an employee's wages for the political fund requires prior, voluntary, written authorization executed in accordance with Section 101.356.

Sec. 101.358. LIABILITY. (a) A labor organization that violates this subchapter is liable to a member of the organization affected by the violation for:

(1) actual damages in the amount of the dues or fees accepted or spent in violation of this subchapter;

(2) interest on the damages described under Subdivision (1);

(3) attorney's fees and court costs; and

(4) other appropriate equitable relief.

(b) An action under this section may not be commenced after the second anniversary of the date the member knew or should have known that dues or fees were accepted or spent in violation of this subchapter.

(c) Venue for a suit under this section is in:

(1) the county in which the violation is alleged to have occurred; or

(2) the county in which a defendant resides.

Sec. 101.359. CIVIL PENALTY. (a) A labor organization that violates this subchapter is liable for a civil penalty not to exceed $5,000 for each violation.

(b) A suit to recover the civil penalty may be brought by the attorney general or by a county, district, or criminal district attorney.

(c) A civil penalty recovered under this section shall be deposited:

(1) in the state treasury if the attorney general brings the suit; or

(2) in the general fund of the county in which the violation occurred if a district attorney, criminal district attorney, or county attorney brings the suit.

Sec. 101.360. CRIMINAL OFFENSE. (a) An officer of a labor organization commits an offense if the officer violates this subchapter.

(b) An offense under this section is a Class B misdemeanor.

(c) If conduct that constitutes an offense under this section also constitutes an offense under any other law, the actor may be prosecuted under this section, the other law, or both.

SECTION 2. This Act takes effect January 1, 2012.