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H.B. 159 Enrolled

                 

VOLUNTARY CONTRIBUTION ACT

                 
AMENDMENTS

                 
2003 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Chad E. Bennion

                  This act modifies Labor Code and Election Code provisions relating to political activities
                  by labor organizations. This act prohibits labor organizations from: requiring
                  contributions to certain political groups as a condition of membership; expending union
                  dues for political purposes; and transferring union dues to a political fund. This act
                  requires labor organizations that wish to make political contributions to: establish a
                  political fund that is separate from any account containing monies received as union
                  dues; ensure that the costs of administering the political fund are made from the fund
                  and not from union dues; ensure that each contribution to the fund is voluntary; and
                  register the fund as a political action committee or political issues committee. This act
                  repeals certain provisions. This act authorizes the attorney general to bring an action
                  against a labor organization to enforce compliance. This act modifies requirements
                  relating to payments to labor organizations. This act authorizes employee-approved
                  payments from employee paychecks for union dues. This act prohibits public employers
                  from deducting monies from a public employee's paycheck for certain purposes. This act
                  authorizes the attorney general to bring an action against the public employer to enforce
                  compliance. This act provides a severability clause and addresses the act's effect on
                  present and future contracts.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      20A-11-1402, as enacted by Chapter 285, Laws of Utah 2001
                      34-32-1, as repealed and reenacted by Chapter 285, Laws of Utah 2001
                      53A-3-411, as enacted by Chapter 2, Laws of Utah 1988
                  ENACTS:
                      10-3-1109, Utah Code Annotated 1953


                      17-33-11.5, Utah Code Annotated 1953
                      17A-1-604, Utah Code Annotated 1953
                      20A-11-1406, Utah Code Annotated 1953
                      34-32-1.1, Utah Code Annotated 1953
                  REPEALS AND REENACTS:
                      20A-11-1403, as enacted by Chapter 285, Laws of Utah 2001
                      20A-11-1404, as enacted by Chapter 285, Laws of Utah 2001
                  REPEALS:
                      20A-11-1405, as enacted by Chapter 285, Laws of Utah 2001
                  This act enacts uncodified material.
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 10-3-1109 is enacted to read:
                      10-3-1109. Compliance with Labor Code requirements.
                      Each municipality shall comply with the requirements of Section 34-32-1.1 .
                      Section 2. Section 17-33-11.5 is enacted to read:
                      17-33-11.5. Compliance with Labor Code requirements.
                      Each county shall comply with the requirements of Section 34-32-1.1 .
                      Section 3. Section 17A-1-604 is enacted to read:
                      17A-1-604. Compliance with Labor Code requirements.
                      Each special district shall comply with the requirements of Section 34-32-1.1 .
                      Section 4. Section 20A-11-1402 is amended to read:
                       20A-11-1402. Definitions.
                      (1) As used in this part:
                      (a) "Ballot proposition" includes constitutional amendments, initiatives, referenda,
                  [proposed constitutional amendments, and any other items] judicial retention questions, opinion
                  questions, or other questions submitted to the voters for their approval or rejection.
                      [(b) "Filing entity" means a candidate, officeholder, political action committee, political
                  issues committee, political party, and each other entity required to report contributions under

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                  Title 20A, Chapter 11, Campaign and Financial Reporting Requirements.]
                      [(c) "Fund" means the separate segregated fund established by a labor organization for
                  political purposes according to the procedures and requirements of this part.]
                      [(d)] (b) (i) "Labor organization" means [any association or] a lawful organization of any
                  kind that is composed, in whole or in part, of employees[,] and [any agency, employee
                  representation committee, or plan in which employees participate] that exists for the purpose, in
                  whole or in part, [to advocate on behalf of employees about] of dealing with employers
                  concerning grievances, labor disputes, wages, rates of pay, hours of employment, or other terms
                  and conditions of employment.
                      (ii) Except as provided in Subsection (1)[(d)] (b)(iii), "labor organization" includes each
                  employee association and union for employees of public and private sector employers.
                      (iii) "Labor organization" does not include organizations governed by the National Labor
                  Relations Act, 29 U.S.C. Sec. 151 et seq. or the Railroad Labor Act, 45 U.S.C. Sec. 151 et seq.
                      [(e) "Political activities" means electoral activities, independent expenditures, or
                  expenditures made to any candidate, political party, political action committee, political issues
                  committee, voter registration campaign, or any other political or legislative cause, including
                  ballot propositions.]
                      (c) "Political fund" means a separate segregated fund established by a labor organization
                  for political purposes that meets the requirements of this part.
                      (d) "Political purposes" means an act done with the intent or in a way to influence or tend
                  to influence, directly or indirectly, any person to refrain from voting or to vote for or against:
                      (i) any candidate for public office at any caucus, political convention, primary, or
                  election; or
                      (ii) any ballot proposition.
                      [(f)] (e) "Union dues" means dues, fees, monies, or other [monies] assessments required
                  as a condition of membership or participation in a labor organization [or as a condition of
                  employment].
                      (2) Other terms defined in Section 20A-11-101 apply to this part.

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                      Section 5. Section 20A-11-1403 is repealed and reenacted to read:
                      20A-11-1403. Prohibition of required contributions for political purposes.
                      A labor organization may not require any contribution to a candidate, personal campaign
                  committee, political action committee, political issues committee, registered political party,
                  ballot proposition, or political fund as a condition of membership or participation in the labor
                  organization.
                      Section 6. Section 20A-11-1404 is repealed and reenacted to read:
                      20A-11-1404. Establishment and administration of political fund.
                      (1) A labor organization wishing to make expenditures for political purposes shall
                  establish a political fund.
                      (2) Each labor organization that establishes a political fund shall:
                      (a) maintain the political fund as a separate, segregated account apart from any account
                  containing monies received by a labor organization as union dues;
                      (b) pay the costs of administering the political fund from contributions to the political
                  fund and not from union dues;
                      (c) ensure that each contribution to the political fund is voluntary; and
                      (d) register the political fund as a political action committee or political issues committee
                  as required by this chapter.
                      (3) (a) A labor organization may only make expenditures for political purposes from a
                  political fund established in accordance with this part.
                      (b) A labor organization may not expend union dues for political purposes or transfer
                  union dues to a political fund.
                      Section 7. Section 20A-11-1406 is enacted to read:
                      20A-11-1406. Enforcement of part -- Attorney general.
                      (1) Subject to the requirements of Subsections (2) and (3), the attorney general may bring
                  an action to require the labor organization to comply with the requirements of this part.
                      (2) Before bringing an action under Subsection (1), the attorney general shall:
                      (a) notify the labor organization in writing of the precise nature of the violation of this

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                  part; and
                      (b) give the labor organization ten days to cease and desist the violation of this part.
                      (3) The attorney general may not bring an action under Subsection (1) if the labor
                  organization:
                      (a) ceases and desists from violating this part within ten days; and
                      (b) provides the attorney general with written confirmation that the labor organization
                  has ceased from engaging in the conduct the attorney general determined to be a violation of this
                  part.
                      Section 8. Section 34-32-1 is amended to read:
                       34-32-1. Assignments to labor unions -- Effect.
                      (1) As used in this section:
                      (a) "Ballot proposition" means opinion questions specifically authorized by the
                  Legislature, constitutional amendments, initiatives, referenda, and judicial retention questions
                  that are submitted to the voters for their approval or rejection.
                      [(a)] (b) "Employee" means a person employed by any person, partnership, public,
                  private, or municipal corporation, school district, the state, or any political subdivision of the
                  state.
                      [(b)] (c) "Employer" means the person or entity employing an employee.
                      [(c)] (d) (i) "Labor organization" means [any association or] a lawful organization of any
                  kind that is composed, in whole or in part, of employees, and [any agency, employee
                  representation committee, or plan in which employees participate] that exists for the purpose, in
                  whole or in part, [to advocate on behalf of employees about] of dealing with employers
                  concerning grievances, labor disputes, wages, rates of pay, hours of employment, or other terms
                  and conditions of employment.
                      (ii) Except as provided in Subsection (1)[(c)](d)(iii), "labor organization" includes each
                  employee association and union for employees of public and private sector employers.
                      (iii) "Labor organization" does not include organizations governed by the National Labor
                  Relations Act, 29 U.S.C. Sec. 151 et seq. or the Railroad Labor Act, 45 U.S.C. Sec. 151 et seq.

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                      (e) "Political purposes" means an act done with the intent or in a way to influence or tend
                  to influence, directly or indirectly, any person to refrain from voting or to vote for or against:
                      (i) any candidate for public office at any caucus, political convention, primary, or
                  election; or
                      (ii) any ballot proposition.
                      [(d) "Public employee" means a person employed by the state, a municipal corporation, a
                  county, a municipality, a school district, a special district, or any other political subdivision of the
                  state.]
                      [(e)] (f) "Union dues" means dues, fees, monies, or other [monies] assessments required
                  as a condition of membership or participation in a labor organization [or as a condition of
                  employment].
                      (2) (a) [Except as prohibited by Subsection (6), an] An employee may [elect to] direct
                  [his], in writing, that an employer [to: (a)] deduct from the employee's wages a specified sum [of
                  up to] for union dues, not to exceed 3% per month [from his wages; and (b) pay the amount
                  deducted], to be paid to a labor organization [as assignee] designated by the employee.
                      (b) An employer shall cease making deductions for union dues from the wages of an
                  employee for the benefit of a labor organization when the employer receives a written
                  communication from the employee directing that the deductions cease.
                      [(3) If the employee elects to direct the employer to make the deduction authorized by
                  Subsection (2), the employee shall sign a statement that:]
                      [(a) directs the employer to make the deduction;]
                      [(b) identifies the amount of the deduction;]
                      [(c) identifies the person or entity to whom the deduction is to be paid; and]
                      [(d) directs the employer to pay the deduction to that person or entity.]
                      [(4) An employer who receives a signed statement shall:]
                      [(a) keep the statement on file;]
                      [(b) deduct the specified sum from the employee's salary; and]
                      [(c) pay the deducted amount to the labor organization designated by the employee.]

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                      [(5) The employer shall continue to make and pay the deduction as directed by the
                  employee until the employee revokes or modifies the deduction in writing.]
                      [(6) A public employee may not direct an employer to deduct monies from his wages and
                  pay them to:]
                      [(a) a registered political action committee;]
                      [(b) a fund as defined by Section 20A-11-1402 ; or]
                      [(c) any intermediary that contributes to a fund as defined in Section 20A-11-1402 .]
                      [(7) Nothing in this section prohibits an individual from making personal contributions
                  to a registered political action committee or to a fund as defined by Section 20A-11-1402 .]
                      Section 9. Section 34-32-1.1 is enacted to read:
                      34-32-1.1. Prohibiting public employers from making payroll deductions for
                  political purposes.
                      (1) As used in this section:
                      (a) "Ballot proposition" means opinion questions specifically authorized by the
                  Legislature, constitutional amendments, initiatives, referenda, and judicial retention questions
                  that are submitted to the voters for their approval or rejection.
                      (b) (i) "Labor organization" means a lawful organization of any kind that is composed, in
                  whole or in part, of employees and that exists for the purpose, in whole or in part, of dealing with
                  employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or
                  other terms and conditions of employment.
                      (ii) Except as provided in Subsection (1)(b)(iii), "labor organization" includes each
                  employee association and union for public employees.
                      (iii) "Labor organization" does not include organizations governed by the National Labor
                  Relations Act, 29 U.S.C. Sec. 151 et seq. or the Railroad Labor Act, 45 U.S.C. Sec. 151 et seq.
                      (c) "Political purposes" means an act done with the intent or in a way to influence or tend
                  to influence, directly or indirectly, any person to refrain from voting or to vote for or against:
                      (i) any candidate for public office at any caucus, political convention, primary, or
                  election; or

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                      (ii) any ballot proposition.
                      (d) "Public employee" means a person employed by:
                      (i) the state of Utah or any administrative subunit of the state;
                      (ii) a state institution of higher education; or
                      (iii) a municipal corporation, a county, a municipality, a school district, a special district,
                  or any other political subdivision of the state.
                      (e) "Public employer" means an employer that is:
                      (i) the state of Utah or any administrative subunit of the state;
                      (ii) a state institution of higher education; or
                      (iii) a municipal corporation, a county, a municipality, a school district, a special district,
                  or any other political subdivision of the state.
                      (f) "Union dues" means dues, fees, assessments, or other monies required as a condition
                  of membership or participation in a labor organization.
                      (2) A public employer may not deduct from the wages of its employees any amounts to
                  be paid to:
                      (a) a candidate as defined in Section 20A-11-101 ;
                      (b) a personal campaign committee as defined in Section 20A-11-101 ;
                      (c) a political action committee as defined in Section 20A-11-101 ;
                      (d) a political issues committee as defined in Section 20A-11-101 ;
                      (e) a registered political party as defined in Section 20A-11-101 ;
                      (f) a political fund as defined in Section 20A-11-1402 ; or
                      (g) any entity established by a labor organization to solicit, collect, or distribute monies
                  primarily for political purposes.
                      (3) The attorney general may bring an action to require the public employer to comply
                  with the requirements of this section.
                      Section 10. Section 53A-3-411 is amended to read:
                       53A-3-411. Employment of school personnel -- Length of contract -- Termination
                  for cause -- Labor Code compliance.

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                      (1) A local school board may enter into a written employment contract for a term not to
                  exceed five years.
                      (2) Nothing in the terms of the contract shall restrict the power of a local school board to
                  terminate the contract for cause at any time.
                      (3) Each local school board shall:
                      (a) ensure that each employment contract complies with the requirements of Section
                  34-32-1.1 ; and
                      (b) comply with the requirements of Section 34-32-1.1 in employing any personnel,
                  whether by employment contract or otherwise.
                      Section 11. Effect on existing and future contracts.
                      (1) This act does not apply to any lawful contract in force on the effective date of this act.
                      (2) This act applies to all future contracts with a public employer, including any renewal
                  or extension of any existing contract with a public employer.
                      Section 12. Repealer.
                      This act repeals:
                      Section 20A-11-1405, Registration -- Disclosure.
                      Section 13. Severability clause.
                      If a court of competent jurisdiction holds that any portion of this act or the application of
                  any portion of this act to any person or circumstance is invalid:

                      (1) the invalid portion or application shall be severed; and
                      (2) the remainder of this act shall remain in effect without the invalid portion or
                  application.


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