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First Substitute S.B. 58
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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; AND MAKING TECHNICAL
16 CORRECTIONS.
17 This act affects sections of Utah Code Annotated 1953 as follows:
18 ENACTS:
19 20A-10-1201, Utah Code Annotated 1953
20 20A-10-1202, Utah Code Annotated 1953
21 20A-10-1203, Utah Code Annotated 1953
22 20A-10-1204, Utah Code Annotated 1953
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 20A-10-1201 is enacted to read:
25 20A-10-1201. Definitions.
26 As used in this part:
27 (1) "Ballot proposition" includes initiatives, referenda, proposed constitutional
28 amendments, and any other ballot propositions submitted to the voters.
1 (2) (a) "Contribution" means any of the following when done for political purposes:
2 (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of value
3 given to a filing entity;
4 (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
5 subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or anything
6 of value to a filing entity;
7 (iii) any transfer of funds from a labor organization to a filing entity;
8 (iv) compensation paid by any labor organization for personal services provided without
9 charge to a filing entity;
10 (v) remuneration from any labor organization to compensate a legislator for a loss of salary
11 or income while the Legislature is in session;
12 (vi) goods or services provided by a labor organization to or for the benefit of a filing
13 entity at less than fair market value.
14 (b) "Contribution" does not include services provided without compensation by
15 individuals volunteering their time on behalf of the filing entity.
16 (3) "Filing entity" means a candidate, officeholder, political action committee, political
17 issues committee, political party, and each other entity required to report contributions under Title
18 20A, Chapter 11, Campaign and Financial Reporting Requirements.
19 (4) "Fund" means the separate segregated fund established by a labor organization for
20 political purposes according to the procedures and requirements of this part.
21 (5) (a) "Labor organization" means any association or organization of employees, and any
22 agency, employee representation committee, or plan in which employees participate that exists,
23 in whole or in part, to advocate on behalf of employees about grievances, labor disputes, wages,
24 rates of pay, hours of employment, or conditions of work.
25 (b) "Labor organization" includes each organization that represents state, county, public
26 or higher education, or municipal employees.
27 (c) "Labor organization" does not include any certified representative of employees under
28 the provisions of the National Labor Relations Act, 29 U.S.C. Sec. 151 et. seq. or the Railroad
29 Labor Act, 45 U.S.C. Sec. 151 et. seq..
30 (6) "Political purposes" means an act done with the intent or in a way to influence or tend
31 to influence, directly or indirectly, any person to refrain from voting or to vote for or against any:
1 (a) candidate for public office at any caucus, political convention, primary, or election; or
2 (b) ballot proposition.
3 Section 2. Section 20A-10-1202 is enacted to read:
4 20A-10-1202. Limits on labor organization contributions.
5 (1) Except as provided in Subsection (2), a labor organization may not make a contribution
6 to any candidate.
7 (2) (a) A labor organization may make contributions to candidates if the labor organization
8 establishes a separate segregated fund to be used for political purposes.
9 (b) The labor organization shall ensure that:
10 (i) contributions to the fund are solicited independently from any other solicitations by the
11 labor organization;
12 (ii) dues or other fees for membership in the labor organization are not used for political
13 purposes, transferred to the segregated fund, or intermingled in any way with fund monies,
14 whether directly or through an intermediary;
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; and
17 (iv) each contribution is voluntary.
18 (3) The labor organization has the burden of proof to establish that the requirements of
19 Subsection (2)(b) are met.
20 Section 3. Section 20A-10-1203 is enacted to read:
21 20A-10-1203. Criminal acts -- Penalties.
22 (1) (a) It is unlawful for a labor organization to make a contribution by using money or
23 anything of value:
24 (i) secured by physical force, job discrimination, membership discrimination, or financial
25 reprisals, or threat of force, job discrimination, membership discrimination, or financial reprisals;
26 (ii) from dues, fees, or other moneys required as a condition of membership in a labor
27 organization or as a condition of employment; or
28 (iii) obtained in any commercial transaction.
29 (b) At the time the labor organization is soliciting money for the fund from an employee,
30 it is unlawful for a labor organization to fail to:
31 (i) inform an employee of the fund's political purpose; and
1 (ii) inform an employee of the employee's right to refuse to contribute without fear of
2 reprisal.
3 (c) It is unlawful for a labor organization to solicit monies for the fund from any person
4 other than its members and their families.
5 (d) It is unlawful for a labor organization to pay a member for contributing to the fund by
6 providing a bonus, expense account, rebate of dues or other membership fees, or by any other form
7 of direct or indirect compensation.
8 (2) Any person or entity violating this section is guilty of a class A misdemeanor.
9 Section 4. Section 20A-10-1204 is enacted to read:
10 20A-10-1204. Registration -- Disclosure.
11 Each fund established by a labor organization under this part shall:
12 (1) register as a political action committee as required by this chapter; and
13 (2) file the financial reports for political action committees required by this chapter.
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