Bill Text: IA HF400 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act providing for fair share agreements relating to collective bargaining and including effective date provisions.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2017-02-22 - Introduced, referred to Labor. H.J. 432. [HF400 Detail]
Download: Iowa-2017-HF400-Introduced.html
House File 400 - Introduced HOUSE FILE BY HUNTER A BILL FOR 1 An Act providing for fair share agreements relating to 2 collective bargaining and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1954YH (1) 87 je/rj PAG LIN 1 1 Section 1. Section 20.3, Code 2017, is amended by adding the 1 2 following new subsection: 1 3 NEW SUBSECTION. 4A. "Fair share fee" means the amount 1 4 charged to an employee in a bargaining unit who is not a member 1 5 of the employee organization certified by the board as the 1 6 exclusive bargaining representative for the public employees 1 7 in that bargaining unit, to cover the costs incurred by the 1 8 employee organization on behalf of the employee for collective 1 9 bargaining, contract administration, the adjustment of 1 10 grievances, and the pursuit of other matters affecting wages, 1 11 hours, and other conditions of employment. 1 12 Sec. 2. Section 20.8, subsection 4, Code 2017, is amended 1 13 to read as follows: 1 14 4. Refuse to join or participate in the activities of 1 15 employee organizations, including the payment of any dues, fees 1 16 or assessments or service fees of any type, except as provided 1 17 in section 20.9A. 1 18 Sec. 3. Section 20.9, unnumbered paragraph 1, Code 2017, is 1 19 amended to read as follows: 1 20 The public employer and the employee organization shall meet 1 21 at reasonable times, including meetings reasonably in advance 1 22 of the public employer's budget=making process, to negotiate in 1 23 good faith with respect to wages, hours, vacations, insurance, 1 24 holidays, leaves of absence, shift differentials, overtime 1 25 compensation, supplemental pay, seniority, transfer procedures, 1 26 job classifications, health and safety matters, evaluation 1 27 procedures, procedures for staff reduction, in=service training 1 28 and other matters mutually agreed upon. Negotiations shall 1 29 also include whether a fair share fee shall be charged to 1 30 nonmembers of the employee organization, terms authorizing 1 31 dues checkoff for members of the employee organization, and 1 32 grievance procedures for resolving any questions arising under 1 33 the agreement, which shall be embodied in a written agreement 1 34 and signed by the parties. If an agreement provides for dues 1 35 checkoff, a member's dues may be checked off only upon the 2 1 member's written request and the member may terminate the dues 2 2 checkoff at any time by giving thirty days' written notice. 2 3 Such obligation to negotiate in good faith does not compel 2 4 either party to agree to a proposal or make a concession. 2 5 Sec. 4. NEW SECTION. 20.9A Fair share fee procedures. 2 6 1. When a collective bargaining agreement between a public 2 7 employer and a certified employee organization, which provides 2 8 that a fair share fee shall be charged to nonmembers of the 2 9 employee organization, is reached by ratification of the 2 10 agreement or by issuance of an arbitration award under section 2 11 20.22, the public employer shall, within ten days of the date 2 12 the agreement is reached, provide the employee organization 2 13 with a list of the names and addresses of all employees in the 2 14 bargaining unit represented by the employee organization. If a 2 15 collective bargaining agreement providing for fair share fees 2 16 has a term of more than one year, the list shall be provided by 2 17 the public employer annually, not later than thirty days prior 2 18 to the commencement of the next full year of the agreement's 2 19 term. 2 20 2. a. Following receipt by the employee organization of 2 21 a list of employees pursuant to subsection 1, the employee 2 22 organization shall provide the public employer with the name 2 23 of each nonmember of the employee organization and the amount 2 24 of the fair share fee. In addition, the employee organization 2 25 shall provide the labor commissioner with the amount of the 2 26 fair share fee and any supporting documentation utilized in 2 27 determining the amount of the fair share fee. Commencing on 2 28 the effective date of the collective bargaining agreement which 2 29 provides for a fair share fee or the public employer's receipt 2 30 of the names and amounts from the employee organization, 2 31 whichever occurs later, the public employer shall deduct once 2 32 each month from the wages or salaries of each nonmember the 2 33 amount of the fair share fee specified for that nonmember by 2 34 the employee organization and transmit the amounts deducted 2 35 to the employee organization within fourteen days of the 3 1 deduction. If a collective bargaining agreement includes a 3 2 retroactive effective date, the public employer shall make 3 3 deductions for fair share fees prospectively only. 3 4 b. For purposes of determining the fair share fee, the 3 5 amount of the fair share fee shall not exceed the regular 3 6 membership dues paid by members of the employee organization 3 7 and shall not include any share of the costs incurred by the 3 8 employee organization for fraternal, ideological, political, or 3 9 other activities not germane to collective bargaining, contract 3 10 administration, the adjustment of grievances, or the pursuit 3 11 of other matters affecting wages, hours, and other conditions 3 12 of employment. Costs that shall be excluded from the fair 3 13 share fee include but are not limited to costs for social 3 14 events; lobbying on issues or for purposes other than the 3 15 negotiation, ratification, or implementation of a collective 3 16 bargaining agreement; voter registration training; efforts to 3 17 increase voting; political campaign techniques; supporting or 3 18 contributing to charitable organizations; and supporting or 3 19 contributing to religious or other ideological causes. 3 20 3. As a precondition to the collection of a fair share fee, 3 21 the employee organization shall establish and maintain a full 3 22 and fair procedure that conforms with the requirements of the 3 23 Constitution of the United States and the Constitution of the 3 24 State of Iowa and does all of the following: 3 25 a. Provides nonmembers of the employee organization with 3 26 an annual notice which informs them of the amount of the 3 27 fair share fee to be charged, provides them with sufficient 3 28 information to gauge the propriety of that amount, and informs 3 29 them of the procedure by which a nonmember may challenge that 3 30 amount. 3 31 b. Permits challenges by nonmembers to the amount of the 3 32 fair share fee. 3 33 c. Provides for the consolidation of all timely challenges 3 34 and for an impartial hearing, before an arbitrator appointed by 3 35 the American arbitration association pursuant to its rules for 4 1 impartial determination of union fees, conducted in accordance 4 2 with those rules and paid for by the employee organization. 4 3 d. Provides that the burden of proof relating to the 4 4 propriety of the amount of the fair share fee is on the 4 5 employee organization. 4 6 e. Provides that all fair share fees reasonably in dispute 4 7 while a challenge is pending shall be held by the employee 4 8 organization in an interest=bearing escrow account until a 4 9 final decision is issued by the arbitrator, at which time such 4 10 funds shall be disbursed in accordance with the arbitrator's 4 11 decision. 4 12 4. The employee organization shall notify the public 4 13 employer of any arbitrator's award issued pursuant to the 4 14 challenge procedure specified in subsection 3 which reduced the 4 15 amount of a fair share fee and the public employer shall adjust 4 16 its deduction from the wages or salaries of the challenging 4 17 nonmembers accordingly. 4 18 5. This section shall be enforced through an action in a 4 19 court of competent jurisdiction. 4 20 Sec. 5. Section 731.3, Code 2017, is amended to read as 4 21 follows: 4 22 731.3 Contracts to exclude unlawful. 4 23ItExcept as provided in sections 20.8, 20.9A, and 731.4A, 4 24 it shall be unlawful for any person, firm, association, 4 25 corporation or labor organization to enter into any 4 26 understanding, contract, or agreement, whether written or 4 27 oral, to exclude from employment members of a labor union, 4 28 organization, or association, or persons who do not belong 4 29 to, or who refuse to join, a labor union, organization, or 4 30 association, or because of resignation or withdrawal therefrom. 4 31 Sec. 6. Section 731.4, Code 2017, is amended to read as 4 32 follows: 4 33 731.4 Union dues as prerequisite to employment == prohibited. 4 34ItExcept as provided in sections 20.8, 20.9A, and 731.4A, 4 35 it shall be unlawful for any person, firm, association, labor 5 1 organization or corporation, or political subdivision, either 5 2 directly or indirectly, or in any manner or by any means as a 5 3 prerequisite to or a condition of employment to require any 5 4 person to pay dues, charges, fees, contributions, fines or 5 5 assessments to any labor union, labor association, or labor 5 6 organization. 5 7 Sec. 7. NEW SECTION. 731.4A Fair share fee agreements. 5 8 A labor union, labor association, labor organization, or 5 9 employee organization, which is the certified or recognized 5 10 exclusive representative for collective bargaining under 5 11 applicable federal law, may enter into an agreement with the 5 12 employer of the employees it is certified or recognized to 5 13 represent in collective bargaining that, as a condition of 5 14 continued employment, requires employees, after thirty days 5 15 of employment, either to become a member of the certified or 5 16 recognized labor union, labor association, labor organization, 5 17 or employee organization, or to pay a fair share fee to the 5 18 extent permitted by the Constitution of the United States, 5 19 the Constitution of the State of Iowa, and federal law. This 5 20 section shall not be deemed to require an employee to become a 5 21 member of a labor union, labor association, labor organization, 5 22 or employee organization. In addition, the requirements of 5 23 a fair share agreement shall not apply to an employee whose 5 24 initial date of employment with the employer occurs on a date 5 25 when a fair share fee agreement as authorized by this section 5 26 is not in effect. 5 27 Sec. 8. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 5 28 immediate importance, takes effect upon enactment. 5 29 EXPLANATION 5 30 The inclusion of this explanation does not constitute agreement with 5 31 the explanation's substance by the members of the general assembly. 5 32 This bill authorizes the negotiating of fair share fees in 5 33 collective bargaining agreements. 5 34 Code chapter 20, concerning collective bargaining for public 5 35 employees, is amended to authorize fair share fees. 6 1 Code section 20.9 is amended to provide that the scope of 6 2 negotiations for purposes of a collective bargaining agreement 6 3 includes negotiating whether a fair share fee shall be charged 6 4 to nonmembers of an employee organization. 6 5 New Code section 20.9A establishes the procedures to follow 6 6 if a fair share fee is included in a collective bargaining 6 7 agreement. The new Code section provides that once an 6 8 agreement is ratified or an arbitration award is issued that 6 9 includes a fair share fee, the public employer shall, within 6 10 10 days, provide the employee organization with a list of 6 11 employees covered by the agreement. If the agreement has a 6 12 term of more than one year, the employer shall provide the list 6 13 on an annual basis. Once the employee organization receives 6 14 the list, the employee organization shall provide the employer 6 15 with a list of each nonmember of the employee organization and 6 16 the amount of the fair share fee. The employee organization 6 17 shall also inform the labor commissioner of the amount of the 6 18 fair share fee and how it was determined. The bill provides 6 19 that the fee shall not exceed the regular membership dues 6 20 paid by members and shall not include costs of the employee 6 21 organization that are not germane to collective bargaining, 6 22 contract administration, the adjustment of grievances, and 6 23 the pursuit of other matters affecting wages, hours, and 6 24 other conditions of employment. The bill provides that the 6 25 public employer shall begin deducting the fair share fee 6 26 from nonmembers upon the later of the effective date of the 6 27 collective bargaining agreement or the date the public employer 6 28 receives the list of nonmembers and the amount of the fair 6 29 share fee. The bill provides that no retroactive deductions 6 30 for fair share fees are allowed. 6 31 The bill also establishes several additional conditions for 6 32 the collection of a fair share fee from public employees. The 6 33 bill provides that nonmembers be given an annual notice of the 6 34 amount of the fair share fee and their rights as to challenging 6 35 the amount. The bill also provides that nonmembers shall be 7 1 permitted to challenge the amount of the fair share fee at 7 2 an impartial hearing before an arbitrator appointed by the 7 3 American arbitration association. The bill provides that the 7 4 employee organization has the burden of proof relating to the 7 5 amount of the fee to be charged. The bill provides that the 7 6 employee organization shall notify the public employer of any 7 7 arbitrator's award and the public employer shall adjust the 7 8 deduction from wages of the nonmembers who challenged the fair 7 9 share fee amount. The bill provides that the requirements of 7 10 this new Code section shall be enforced in a court of competent 7 11 jurisdiction. 7 12 Code chapter 731, concerning labor union membership, is 7 13 also amended to authorize fair share agreements. New Code 7 14 section 731.4A provides that a labor union, certified as the 7 15 bargaining representative of a private sector employer under 7 16 federal law, may enter into an agreement with an employer that, 7 17 as a condition of continued employment, requires employees whom 7 18 the union is certified to represent to become a member of the 7 19 labor union or to pay a fair share fee to the extent permitted 7 20 by the United States Constitution, the Iowa Constitution, and 7 21 applicable federal law. The new Code section provides that 7 22 this Code section shall not be deemed to require an employee 7 23 to become a member of a labor union and also provides that 7 24 the requirement to pay a fair share fee shall not apply to an 7 25 employee whose initial date of employment occurred on a date 7 26 when a fair share agreement was not in effect. 7 27 The bill takes effect upon enactment. LSB 1954YH (1) 87 je/rj
