House File 324 - Introduced HOUSE FILE BY T. TAYLOR Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for fair share agreements relating to collective 2 bargaining and providing an effective date. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1856YH 82 5 ec/je/5 PAG LIN 1 1 Section 1. Section 20.8, subsection 4, Code 2007, is 1 2 amended to read as follows: 1 3 4. Refuse to join or participate in the activities of 1 4 employee organizations, including the payment of any dues, 1 5 fees or assessments or service fees of any type, except as 1 6 provided in section 20.9. 1 7 Sec. 2. Section 20.9, Code 2007, is amended to read as 1 8 follows: 1 9 20.9 SCOPE OF NEGOTIATIONS. 1 10 1. The public employer and the employee organization shall 1 11 meet at reasonable times, including meetings reasonably in 1 12 advance of the public employer's budget=making process, to 1 13 negotiate in good faith with respect to wages, hours, 1 14 vacations, insurance, holidays, leaves of absence, shift 1 15 differentials, overtime compensation, supplemental pay, 1 16 seniority, transfer procedures, job classifications, health 1 17 and safety matters, evaluation procedures, procedures for 1 18 staff reduction, in=service training, fair share agreements, 1 19 and other matters mutually agreed upon. Negotiations shall 1 20 also include terms authorizing dues checkoff for members of 1 21 the employee organization, terms for payroll deduction of fair 1 22 share fees of nonmembers of the employee organization, and 1 23 grievance procedures for resolving any questions arising under 1 24 the agreement, which shall be embodied in a written agreement 1 25 and signed by the parties. If an agreement provides for dues 1 26 checkoff, a member's dues may be checked off only upon the 1 27 member's written request and the member may terminate the dues 1 28 checkoff at any time by giving thirty days' written notice. 1 29 Such obligation to negotiate in good faith does not compel 1 30 either party to agree to a proposal or make a concession. 1 31 2. a. Notwithstanding any provision of state law to the 1 32 contrary, a negotiated agreement for fair share fees shall not 1 33 provide for the termination of the employment of a public 1 34 employee for failure to pay membership dues and charges or 1 35 fair share fees of an employee organization, but shall provide 2 1 that, commencing on the effective date of a collective 2 2 bargaining agreement which provides for a fair share fee, the 2 3 public employer shall deduct once each month from the wages or 2 4 salaries of nonmembers of the certified employee organization 2 5 the amount of the fair share fee and transmit the amount 2 6 deducted to the certified employee organization within 2 7 fourteen days of the deduction. 2 8 b. Every negotiated agreement for fair share fees shall 2 9 conform with the requirements of the Constitution of the 2 10 United States and the Constitution of the State of Iowa, and 2 11 shall provide, if required, for the following: 2 12 (1) The certified employee organization may charge 2 13 nonmembers of the employee organization a fair share fee, 2 14 which shall not exceed the amount of dues and charges required 2 15 to be paid by a member in good standing of the employee 2 16 organization. 2 17 (2) The certified employee organization shall furnish 2 18 advance written notice of the amount of the fair share fee to 2 19 the nonmember employees who will be assessed the fee. The 2 20 notice shall inform the nonmember of a procedure by which the 2 21 nonmember may object to and receive a reduction of the pro 2 22 rata share of the fee attributed to purposes unrelated to 2 23 collective bargaining, contract administration, or the pursuit 2 24 of other matters affecting wages, hours, and other conditions 2 25 of employment. The notice also shall inform the nonmember of 2 26 a procedure by which the nonmember is afforded an opportunity 2 27 to challenge the amount of the fee before an impartial 2 28 decision maker. All fees reasonably in dispute during the 2 29 challenge period shall be held by the certified employee 2 30 organization in an interest=bearing escrow account until final 2 31 resolution is made by the impartial decision maker, at which 2 32 time such funds shall be disbursed in accordance with the 2 33 decision maker's award. 2 34 (3) The public employer shall provide the certified 2 35 employee organization with a list of the names and addresses 3 1 of all nonmember employees in the bargaining unit that is 3 2 represented by the employee organization. 3 3 3. Nothing in this section, section 20.8, or in the terms 3 4 of a fair share agreement shall be deemed to require a public 3 5 employee to become a member of an employee organization. 3 6 4. Nothing in this section shall diminish the authority 3 7 and power of the department of administrative services, board 3 8 of regents' merit system, Iowa public broadcasting board's 3 9 merit system, or any civil service commission established by 3 10 constitutional provision, statute, charter or special act to 3 11 recruit employees, prepare, conduct and grade examinations, 3 12 rate candidates in order of their relative scores for 3 13 certification for appointment or promotion or for other 3 14 matters of classification, reclassification or appeal rights 3 15 in the classified service of the public employer served. 3 16 5. All retirement systems shall be excluded from the scope 3 17 of negotiations. 3 18 Sec. 3. Section 731.3, Code 2007, is amended to read as 3 19 follows: 3 20 731.3 CONTRACTS TO EXCLUDE UNLAWFUL. 3 21ItExcept as provided in sections 20.8, 20.9, and 731.4A, 3 22 it shall be unlawful for any person, firm, association, 3 23 corporation or labor organization to enter into any 3 24 understanding, contract, or agreement, whether written or 3 25 oral, to exclude from employment members of a labor union, 3 26 organization or association, or persons who do not belong to, 3 27 or who refuse to join, a labor union, organization or 3 28 association, or because of resignation or withdrawal 3 29 therefrom. 3 30 Sec. 4. Section 731.4, Code 2007, is amended to read as 3 31 follows: 3 32 731.4 UNION DUES AS PREREQUISITE TO EMPLOYMENT == 3 33 PROHIBITED. 3 34ItExcept as provided in sections 20.8, 20.9, and 731.4A, 3 35 it shall be unlawful for any person, firm, association, labor 4 1 organization or corporation, or political subdivision, either 4 2 directly or indirectly, or in any manner or by any means as a 4 3 prerequisite to or a condition of employment to require any 4 4 person to pay dues, charges, fees, contributions, fines or 4 5 assessments to any labor union, labor association or labor 4 6 organization. 4 7 Sec. 5. NEW SECTION. 731.4A FAIR SHARE FEE AGREEMENTS. 4 8 A labor union, labor association, labor organization, or 4 9 employee organization, which is the certified or recognized 4 10 exclusive representative for collective bargaining under 4 11 applicable federal or state law, may enter into an agreement 4 12 with the employer of the employees it is certified or 4 13 recognized to represent in collective bargaining that, as a 4 14 condition of continued employment, requires employees, after 4 15 thirty days of employment, either to become a member of the 4 16 certified or recognized labor union, labor association, labor 4 17 organization, or employee organization, or to pay a fair share 4 18 fee to the extent permitted by the Constitution of the United 4 19 States, the Constitution of the State of Iowa, and federal 4 20 law. Nothing in this section shall be deemed to require an 4 21 employee to become a member of a labor union, labor 4 22 association, labor organization, or employee organization. 4 23 Sec. 6. 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 4 27 agreements in collective bargaining agreements. 4 28 Code chapter 20, concerning collective bargaining for 4 29 public employment, is amended to authorize fair share 4 30 agreements. Code section 20.9 is amended to provide that the 4 31 scope of negotiations for purposes of a collective bargaining 4 32 agreement includes negotiating fair share agreements and the 4 33 terms for payroll deductions of fair share fees for nonmembers 4 34 of an employee organization. The bill provides that a 4 35 negotiated fair share agreement shall provide that the public 5 1 employer deduct once each month from the wages of nonmembers 5 2 of an applicable employee organization the amount of the fair 5 3 share fee and transmit it to the certified employee 5 4 organization within 14 days of the deduction. The bill 5 5 further requires that the agreement for fair share fees 5 6 provide that the fair share fee shall not exceed the amount of 5 7 dues and charges required of a member of the employee 5 8 organization, that the certified employee organization provide 5 9 advance written notice of the fee and a procedure for 5 10 nonmembers to object to and receive a reduction of the share 5 11 of the fee unrelated to collective bargaining, contract 5 12 administration, and other related matters, that an impartial 5 13 procedure be provided for resolving fair share fee disputes, 5 14 and that the public employer furnish the employee organization 5 15 with a list of the names and addresses of all nonmembers. The 5 16 bill also provides that nothing in a fair share agreement 5 17 shall provide for the termination of employment for failure to 5 18 pay a fair share fee or shall require a public employee to 5 19 become a member of an employee organization. 5 20 Code chapter 731, concerning labor union membership, is 5 21 also amended to authorize fair share agreements. New Code 5 22 section 731.4A provides that a labor union may enter into an 5 23 agreement with an employer that, as a condition of continued 5 24 employment, requires employees whom the union is certified to 5 25 represent to become a member of the labor union or to pay a 5 26 fair share fee to the extent permitted by the United States 5 27 Constitution, the Iowa Constitution, and applicable federal 5 28 law. The new Code section provides that nothing in this Code 5 29 section shall be deemed to require an employee to become a 5 30 member of a labor union. 5 31 The bill takes effect upon enactment. 5 32 LSB 1856YH 82 5 33 ec:rj/je/5.1