Senate File 413 - Introduced SENATE FILE BY COMMITTEE ON LABOR AND BUSINESS RELATIONS (SUCCESSOR TO SSB 1322) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for fair share agreements relating to collective 2 bargaining for public employees and providing an effective 3 date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2842SV 82 6 ec/es/88 PAG LIN 1 1 Section 1. Section 20.3, Code 2007, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 5A. "Fair share fee" means the amount 1 4 charged to an employee in a bargaining unit who is not a 1 5 member of the employee organization certified by the board as 1 6 the exclusive bargaining representative for the public 1 7 employees in that bargaining unit, to cover the costs incurred 1 8 by the employee organization on behalf of the employee for 1 9 collective bargaining, contract administration, the adjustment 1 10 of grievances, and the pursuit of other matters affecting 1 11 wages, hours, and other conditions of employment. 1 12 Sec. 2. Section 20.8, subsection 4, Code 2007, 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, 1 16 fees or assessments or service fees of any type, except as 1 17 provided in section 20.9A. 1 18 Sec. 3. Section 20.9, unnumbered paragraph 1, Code 2007, 1 19 is amended to read as follows: 1 20 The public employer and the employee organization shall 1 21 meet at reasonable times, including meetings reasonably in 1 22 advance of the public employer's budget=making process, to 1 23 negotiate in good faith with respect to wages, hours, 1 24 vacations, insurance, holidays, leaves of absence, shift 1 25 differentials, overtime compensation, supplemental pay, 1 26 seniority, transfer procedures, job classifications, health 1 27 and safety matters, evaluation procedures, procedures for 1 28 staff reduction, in=service training, and other matters 1 29 mutually agreed upon. Negotiations shall also include whether 1 30 a fair share fee shall be charged to nonmembers of the 1 31 employee organization, terms authorizing dues checkoff for 1 32 members of the employee organization, and grievance procedures 1 33 for resolving any questions arising under the agreement, which 1 34 shall be embodied in a written agreement and signed by the 1 35 parties. If an agreement provides for dues checkoff, a 2 1 member's dues may be checked off only upon the member's 2 2 written request and the member may terminate the dues checkoff 2 3 at any time by giving thirty days' written notice. Such 2 4 obligation to negotiate in good faith does not compel either 2 5 party to agree to a proposal or make a concession. 2 6 Sec. 4. NEW SECTION. 20.9A FAIR SHARE FEE PROCEDURES. 2 7 1. When a collective bargaining agreement between a public 2 8 employer and a certified employee organization, which provides 2 9 that a fair share fee shall be charged to nonmembers of the 2 10 employee organization, is reached by ratification of the 2 11 agreement or by issuance of an arbitration award under section 2 12 20.22, the public employer shall, within ten days of the date 2 13 the agreement is reached, provide the employee organization 2 14 with a list of the names and addresses of all employees in the 2 15 bargaining unit represented by the employee organization. If 2 16 a collective bargaining agreement providing for fair share 2 17 fees has a term of more than one year, the list shall be 2 18 provided by the public employer annually, not later than 2 19 thirty days prior to the commencement of the next full year of 2 20 the contract's term. 2 21 2. a. Following receipt by the employee organization of a 2 22 list of employees pursuant to subsection 1, the employee 2 23 organization shall provide the public employer with the name 2 24 of each nonmember of the employee organization and the amount 2 25 of the fair share fee. In addition, the employee organization 2 26 shall provide the labor commissioner with the amount of the 2 27 fair share fee and any supporting documentation utilized in 2 28 determining the amount of the fair share fee. Commencing on 2 29 the effective date of the collective bargaining agreement 2 30 which provides for a fair share fee or the public employer's 2 31 receipt of the names and amounts from the employee 2 32 organization, whichever occurs later, the public employer 2 33 shall deduct once each month from the wages or salaries of 2 34 each nonmember the amount of the fair share fee specified for 2 35 that nonmember by the employee organization and transmit the 3 1 amounts deducted to the employee organization within fourteen 3 2 days of the deduction. If a collective bargaining agreement 3 3 includes a retroactive effective date, the public employer 3 4 shall make deductions for fair share fees prospectively only. 3 5 b. For purposes of determining the fair share fee, the 3 6 amount of the fair share fee shall not exceed the regular 3 7 membership dues paid by members of the employee organization 3 8 and shall not include any share of the costs incurred by the 3 9 employee organization for fraternal, ideological, political, 3 10 or other activities not germane to collective bargaining, 3 11 contract administration, the adjustment of grievances, or the 3 12 pursuit of other matters affecting wages, hours, and other 3 13 conditions of employment. Costs that shall be excluded from 3 14 the fair share fee include but are not limited to costs for 3 15 social events; lobbying on issues or for purposes other than 3 16 the negotiation, ratification, or implementation of a 3 17 collective bargaining agreement; voter registration training; 3 18 efforts to increase voting; political campaign techniques; 3 19 supporting or contributing to charitable organizations; and 3 20 supporting or contributing to religious or other ideological 3 21 causes. 3 22 3. As a precondition to the collection of a fair share 3 23 fee, the employee organization shall establish and maintain a 3 24 full and fair procedure that conforms with the requirements of 3 25 the Constitution of the United States and the Constitution of 3 26 the State of Iowa and all of the following: 3 27 a. Provides nonmembers of the employee organization with 3 28 an annual notice which informs them of the amount of the fair 3 29 share fee to be charged, provides them with sufficient 3 30 information to gauge the propriety of that amount, and informs 3 31 them of the procedure by which a nonmember may challenge that 3 32 amount. 3 33 b. Permits challenges by nonmembers to the amount of the 3 34 fair share fee. 3 35 c. Provides for the consolidation of all timely challenges 4 1 and for an impartial hearing, before an arbitrator appointed 4 2 by the American arbitration association pursuant to its rules 4 3 for impartial determination of union fees, conducted in 4 4 accordance with those rules and paid for by the employee 4 5 organization. 4 6 d. Provides that the burden of proof relating to the 4 7 propriety of the amount of the fair share fee is on the 4 8 employee organization. 4 9 e. Provides that all fair share fees reasonably in dispute 4 10 while a challenge is pending shall be held by the employee 4 11 organization in an interest=bearing escrow account until a 4 12 final decision is issued by the arbitrator, at which time such 4 13 funds shall be disbursed in accordance with the arbitrator's 4 14 decision. 4 15 4. The employee organization shall notify the public 4 16 employer of any arbitrator's award issued pursuant to the 4 17 challenge procedure specified in subsection 3 which reduced 4 18 the amount of a fair share fee and the public employer shall 4 19 adjust its deduction from the wages or salaries of the 4 20 challenging nonmembers accordingly. 4 21 5. This section shall be enforced through an action in a 4 22 court of competent jurisdiction. 4 23 Sec. 5. EFFECTIVE DATE. This Act, being deemed of 4 24 immediate importance, takes effect upon enactment. 4 25 EXPLANATION 4 26 This bill authorizes the negotiating of fair share fees in 4 27 collective bargaining agreements for public employees. 4 28 Code chapter 20, concerning collective bargaining for 4 29 public employees, is amended to authorize fair share fees. 4 30 Code section 20.9 is amended to provide that the scope of 4 31 negotiations for purposes of a collective bargaining agreement 4 32 includes negotiating whether a fair share fee shall be charged 4 33 to nonmembers of an employee organization. 4 34 New Code section 20.9A establishes the procedures to follow 4 35 if a fair share fee is included in a collective bargaining 5 1 agreement. The new Code section provides that once an 5 2 agreement is ratified or an arbitration award is issued that 5 3 includes a fair share fee, the public employer shall, within 5 4 10 days, provide the employee organization with a list of 5 5 employees covered by the agreement. If the agreement has a 5 6 term of more than one year, the employer shall provide the 5 7 list on an annual basis. Once the employee organization 5 8 receives the list, the employee organization shall provide the 5 9 employer with a list of each nonmember of the employee 5 10 organization and the amount of the fair share fee. The 5 11 employee organization shall also inform the labor commissioner 5 12 of the amount of the fair share fee and how it was determined. 5 13 The bill provides that the fee shall not exceed the regular 5 14 membership dues paid by members and shall not include costs of 5 15 the employee organization that are not costs incurred by the 5 16 employee organization and germane for collective bargaining, 5 17 contract administration, the adjustment of grievances, and the 5 18 pursuit of other matters affecting wages, hours, and other 5 19 conditions of employment. The bill provides that the public 5 20 employer shall begin deducting the fair share fee from 5 21 nonmembers upon the later of the effective date of the 5 22 collective bargaining agreement or the date the public 5 23 employer receives the list of nonmembers and the amount of the 5 24 fair share fee. The bill provides that no retroactive 5 25 deductions for fair share fees are allowed. 5 26 The bill also establishes several additional conditions for 5 27 the collection of a fair share fee. The bill provides that 5 28 nonmembers be given an annual notice of the amount of the fair 5 29 share fee and their rights as to challenging the amount. The 5 30 bill also provides that nonmembers shall be permitted to 5 31 challenge the amount of the fair share fee at an impartial 5 32 hearing before an arbitrator appointed by the American 5 33 arbitration association. The bill provides that the employee 5 34 organization has the burden of proof relating to the amount of 5 35 the fee to be charged. The bill provides that the employee 6 1 organization shall notify the public employer of any 6 2 arbitrator's award and the public employer shall adjust the 6 3 deduction from wages of the nonmembers who challenged the fair 6 4 share fee amount. The bill provides that the requirements of 6 5 this new Code section shall be enforced in a court of 6 6 competent jurisdiction. 6 7 The bill takes effect upon enactment. 6 8 LSB 2842SV 82 6 9 ec:rj/es/88