S.B. 58

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LABOR ORGANIZATION DEDUCTIONS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Howard A. Stephenson
5 Lane Beattie
6 Craig A. Peterson
7 Leonard M. Blackham
8 Lyle W. Hillyard
9 Robert F. Montgomery
10 Lorin V. Jones
L. Alma Mansell
Howard C. Nielson
Michael G. Waddoups
L. Steven Poulton
Craig L. Taylor
Nathan C. Tanner
Robert M. Muhlestein
LeRay McAllister
Alarik Myrin
John P. Holmgren

11 AN ACT RELATING TO LABOR AND ELECTION LAW; REQUIRING LABOR
12 ORGANIZATIONS TO ESTABLISH A SEPARATE FUND FOR POLITICAL PURPOSES;
13 ESTABLISHING REGISTRATION AND DISCLOSURE REQUIREMENTS FOR THE
14 FUND; ESTABLISHING CERTAIN CRIMINAL PROVISIONS GOVERNING A LABOR
15 ORGANIZATION'S POLITICAL ACTIVITIES; PROHIBITING EMPLOYEES FROM
16 AUTHORIZING AUTOMATIC PAYROLL DEDUCTIONS OF CONTRIBUTIONS TO A
17 LABOR ORGANIZATION'S POLITICAL COMMITTEE OR FUND; AND MAKING
18 TECHNICAL CORRECTIONS.
19 This act affects sections of Utah Code Annotated 1953 as follows:
20 AMENDS:
21 34-32-1, as enacted by Chapter 85, Laws of Utah 1969
22 ENACTS:
23 20A-10-1201, Utah Code Annotated 1953
24 20A-10-1202, Utah Code Annotated 1953
25 20A-10-1203, Utah Code Annotated 1953
26 20A-10-1204, Utah Code Annotated 1953
27 Be it enacted by the Legislature of the state of Utah:
28 Section 1. Section 20A-10-1201 is enacted to read:

1 20A-10-1201. Definitions.
2 As used in this part:
3 (1) "Ballot proposition" includes initiatives, referenda, proposed constitutional
4 amendments, and any other ballot propositions submitted to the voters.
5 (2) (a) "Contribution" means any of the following when done for political purposes:
6 (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of value
7 given to a filing entity;
8 (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
9 subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or anything
10 of value to a filing entity;
11 (iii) any transfer of funds from a labor organization to a filing entity;
12 (iv) compensation paid by any labor organization for personal services provided without
13 charge to a filing entity;
14 (v) remuneration from any labor organization to compensate a legislator for a loss of salary
15 or income while the Legislature is in session;
16 (vi) goods or services provided by a labor organization to or for the benefit of a filing
17 entity at less than fair market value.
18 (b) "Contribution" does not include services provided without compensation by
19 individuals volunteering their time on behalf of the filing entity.
20 (3) "Filing entity" means a candidate, officeholder, political action committee, political
21 issues committee, political party, and each other entity required to report contributions under Title
22 20A, Chapter 11, Campaign and Financial Reporting Requirements.
23 (4) "Fund" means the separate segregated fund established by a labor organization for
24 political purposes according to the procedures and requirements of this part.
25 (5) (a) "Labor organization" means any association or organization of employees, and any
26 agency, employee representation committee, or plan in which employees participate that exists,
27 in whole or in part, to advocate on behalf of employees about grievances, labor disputes, wages,
28 rates of pay, hours of employment, or conditions of work.
29 (b) "Labor organization" does not include organizations governed by the National Labor
30 Relations Act, 29 U.S.C. Sec. 151 et. seq..
31 (6) "Political purposes" means an act done with the intent or in a way to influence or tend

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1 to influence, directly or indirectly, any person to refrain from voting or to vote for or against any:
2 (a) candidate for public office at any caucus, political convention, primary, or election; or
3 (b) ballot proposition.
4 Section 2. Section 20A-10-1202 is enacted to read:
5 20A-10-1202. Limits on labor organization contributions.
6 (1) Except as provided in Subsection (2), a labor organization may not make a contribution
7 to any candidate.
8 (2) (a) A labor organization may make contributions to candidates if the labor organization
9 establishes a separate segregated fund to be used for political purposes.
10 (b) The labor organization shall ensure that:
11 (i) contributions to the fund are solicited independently from any other solicitations by the
12 labor organization;
13 (ii) dues or other fees for membership in the labor organization are not used for political
14 purposes, transferred to the segregated fund, or intermingled in any way with fund monies;
15 (iii) the cost of administering the fund is paid from fund contributions and not from dues
16 or other fees for membership in the labor organization;
17 (iv) contributions are not made from money collected from payroll deductions; and
18 (v) each contribution is voluntary.
19 (3) The labor organization has the burden of proof to establish that the requirements of
20 Subsection (2)(b) are met.
21 Section 3. Section 20A-10-1203 is enacted to read:
22 20A-10-1203. Criminal acts -- Penalties.
23 (1) (a) It is unlawful for a labor organization to make a contribution by using money or
24 anything of value:
25 (i) secured by physical force, job discrimination, membership discrimination, or financial
26 reprisals, or threat of force, job discrimination, membership discrimination, or financial reprisals;
27 (ii) from dues, fees, or other moneys required as a condition of membership in a labor
28 organization or as a condition of employment; or
29 (iii) obtained in any commercial transaction.
30 (b) At the time the labor organization is soliciting money for the fund from an employee,
31 it is unlawful for a labor organization to fail to:

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1 (i) inform an employee of the fund's political purpose; and
2 (ii) inform an employee of the employee's right to refuse to contribute without fear of
3 reprisal.
4 (c) It is unlawful for a labor organization to solicit monies for the fund from any person
5 other than its members and their families.
6 (d) It is unlawful for a labor organization to pay a member for contributing to the fund by
7 providing a bonus, expense account, rebate of dues or other membership fees, or by any other form
8 of direct or indirect compensation.
9 (2) Any person or entity violating this section is guilty of a class A misdemeanor.
10 Section 4. Section 20A-10-1204 is enacted to read:
11 20A-10-1204. Registration -- Disclosure.
12 Each fund established by a labor organization under this part shall:
13 (1) register as a political action committee as required by this chapter; and
14 (2) file the financial reports for political action committees required by this chapter.
15 Section 5. Section 34-32-1 is amended to read:
16 34-32-1. Assignments to labor unions -- Effect.
17 [Whenever an] (1) Except as provided in Subsection (4), an employee of any person, firm,
18 school district, or private or municipal corporation within [the state of] Utah [executes] may sign
19 and [delivers] deliver to his employer [an instrument in writing whereby such] a written statement
20 directing the employer [is directed] to:
21 (a) deduct a specified sum [at the rate not exceeding] of up to 3% per month from his
22 wages; and [to]
23 (b) pay the [same] deduction to a labor organization or union or any other organization of
24 employees as assignee[, it shall be the duty of such].
25 (2) An employer [to make such deduction and to pay the same monthly or as designated
26 by employee to such assignee and to continue to do so] who receives a written statement shall:
27 (a) keep the statement on file;
28 (b) deduct the specified sum from the employee's salary; and
29 (c) pay the deducted amount to the organization or union designated by the employee.
30 (3) The employer shall continue to make and pay the deduction as directed by the
31 employee until [otherwise directed by] the employee [through an instrument] revokes or modifies

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1 the deduction in writing.
2 (4) Notwithstanding Subsection (1), an employee may not direct an employer to deduct
3 monies from his wages and pay them to:
4 (a) a registered political action committee;
5 (b) a fund as defined by Section 20A-10-1201; or
6 (c) any intermediary that contributes to a registered political action committee or fund as
7 defined in Section 20A-10-1201.
8 (5) Nothing in this section prohibits an individual from making personal contributions to
9 a registered political action committee or to a fund as defined by Section 20A-10-1201.




Legislative Review Note
as of 1-31-97 11:57 AM

This bill raises the following constitutional or statutory concerns:

This legislation could be challenged on First Amendment and Equal Protection grounds.
If challenged on either ground, parties on both sides of the issue can make reasonable,
persuasive arguments that their position should prevail. Consequently, it is impossible to
predict whether or not a court would find this statute to be constitutional.

Office of Legislative Research and General Counsel

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