H.F. 2420 Section 1. Section 20.3, Code 2009, is amended by adding the 1 following new subsections: 2 NEW SUBSECTION . 1A. “Bargaining services” means those 3 services provided by an employee organization on behalf of 4 public employees in a bargaining unit, exclusive of grievance 5 services, relating to collective bargaining and contract 6 administration. 7 NEW SUBSECTION . 4A. “Executive branch public employee” 8 means a public employee who is employed within the executive 9 branch of this state. 10 NEW SUBSECTION . 6A. “Grievance services” means those 11 services provided by an employee organization to an employee 12 following the submission of a written grievance by the 13 employee to an employer which relate to the adjustment of that 14 grievance. For purposes of this subsection “grievance” means a 15 dispute over the interpretation or application of a collective 16 bargaining agreement. 17 Sec. 2. Section 20.8, subsection 4, Code 2009, is amended 18 to read as follows: 19 4. Refuse to join or participate in the activities of 20 employee organizations, including the payment of any dues, fees 21 or assessments or service fees of any type , except as provided 22 in section 20.32 . 23 Sec. 3. Section 20.9, unnumbered paragraph 1, Code 2009, is 24 amended to read as follows: 25 The public employer and the employee organization shall meet 26 at reasonable times, including meetings reasonably in advance 27 of the public employer’s budget-making process, to negotiate in 28 good faith with respect to wages, hours, vacations, insurance, 29 holidays, leaves of absence, shift differentials, overtime 30 compensation, supplemental pay, seniority, transfer procedures, 31 job classifications, health and safety matters, evaluation 32 procedures, procedures for staff reduction, in-service training 33 and other matters mutually agreed upon. Negotiations shall 34 also include terms authorizing dues checkoff for members of the 35 -1- LSB 5724HV (2) 83 ec/rj 1/ 8

H.F. 2420 employee organization and grievance procedures for resolving 1 any questions arising under the agreement, which shall be 2 embodied in a written agreement and signed by the parties. If 3 an agreement provides for dues checkoff, a member’s dues may 4 be checked off only upon the member’s written request and the 5 member may terminate the dues checkoff at any time by giving 6 thirty days’ written notice. For executive branch public 7 employees, negotiations shall include whether nonmembers of the 8 employee organization shall reimburse the employee organization 9 for bargaining services or grievance services, or both, 10 pursuant to section 20.32. Such obligation to negotiate in 11 good faith does not compel either party to agree to a proposal 12 or make a concession. 13 Sec. 4. NEW SECTION . 20.32 Reasonable reimbursement for 14 bargaining and grievance services —— procedure. 15 1. Overview. When a collective bargaining agreement 16 between a public employer and a certified employee organization 17 representing executive branch public employees, which 18 provides that an employee organization may receive reasonable 19 reimbursement for bargaining services and grievance services 20 provided to nonmembers of the employee organization, is 21 reached by ratification of the agreement or by issuance of an 22 arbitration award under section 20.22, the provisions of this 23 section shall apply. 24 2. Bargaining services. 25 a. (1) The public employer shall provide the employee 26 organization with a list of the names and addresses of 27 employees in the bargaining unit represented by the employee 28 organization not later than forty-five days prior to the 29 date the collective bargaining agreement takes effect. If 30 the collective bargaining agreement has a term of more than 31 one year, the list shall be provided by the public employer 32 annually, not later than thirty days prior to the commencement 33 of the next full year of the contract’s term. 34 (2) Following receipt by the employee organization of a 35 -2- LSB 5724HV (2) 83 ec/rj 2/ 8

H.F. 2420 list of employees pursuant to paragraph “a” , the employee 1 organization shall provide the public employer, if the employee 2 organization decides to seek reimbursement for bargaining 3 services, with the name of each employee who is not a member 4 of the employee organization and is subject to providing 5 reasonable reimbursement for bargaining services and the amount 6 determined to reasonably reimburse the employee organization 7 for bargaining services provided. 8 b. (1) The employee organization shall provide the labor 9 commissioner with the reasonable reimbursement amount and any 10 supporting documentation utilized in determining the reasonable 11 reimbursement amount. 12 (2) Commencing on the effective date of the collective 13 bargaining agreement which provides for the reimbursement 14 of bargaining services or, twenty days after the public 15 employer’s receipt of the names and amounts from the employee 16 organization, whichever occurs later, the public employer 17 shall, if the employee subject to reasonable reimbursement so 18 elects or if the employee does not otherwise reimburse the 19 employee organization for bargaining services in a manner 20 authorized by the employee organization, deduct by pay period 21 or once each month from the wages or salaries of each employee 22 required to provide reasonable reimbursement the reasonable 23 reimbursement amount specified for that nonmember by the 24 employee organization and transmit the amounts deducted to the 25 employee organization within thirty days of the deduction. 26 (3) A public employee shall not be responsible for 27 providing reasonable reimbursement for bargaining services 28 prior to the date the public employer is required to deduct 29 the reasonable reimbursement amount pursuant to subparagraph 30 (2). In addition, if a collective bargaining agreement 31 includes a retroactive effective date, the public employee 32 shall be responsible for providing reasonable reimbursement for 33 bargaining services prospectively only. 34 c. For purposes of determining the reasonable reimbursement 35 -3- LSB 5724HV (2) 83 ec/rj 3/ 8

H.F. 2420 amount for bargaining services for a nonmember of the employee 1 organization, the amount shall not exceed sixty-five percent 2 of the regular membership dues that the nonmember would 3 have to pay if the nonmember were a member of the employee 4 organization for that bargaining unit, shall not include costs 5 for grievance services, and shall not include any share of the 6 costs incurred by the employee organization for fraternal, 7 ideological, political, or other activities that are not 8 germane to collective bargaining and contract administration. 9 Costs that shall be excluded from the reasonable reimbursement 10 amount include but are not limited to costs for social events; 11 lobbying on issues or for purposes other than the negotiation, 12 ratification, or implementation of a collective bargaining 13 agreement; voter registration training; efforts to increase 14 voting; training in political campaign techniques; supporting 15 or contributing to charitable organizations; and supporting or 16 contributing to religious or other ideological causes. 17 d. As a precondition to the collection of a reasonable 18 reimbursement amount for bargaining services, the employee 19 organization shall establish and maintain a full and 20 fair procedure that conforms with the requirements of the 21 Constitution of the United States and the Constitution of the 22 State of Iowa and does all of the following: 23 (1) Provides nonmembers of the employee organization 24 with an annual notice not later than thirty days prior to 25 the commencement of each full year of the contract’s term 26 which informs them of the reasonable reimbursement amount for 27 bargaining services, provides them with detailed financial 28 information on the calculation of the reasonable reimbursement 29 amount, informs them of the procedure by which a nonmember may 30 challenge that amount, and provides them with a mechanism for 31 reimbursing the employee organization for bargaining services 32 in lieu of a deduction from wages or salaries as provided in 33 paragraph “b” , subparagraph (2). 34 (2) Permits challenges by nonmembers to the reasonable 35 -4- LSB 5724HV (2) 83 ec/rj 4/ 8

H.F. 2420 reimbursement amount for bargaining services. 1 (3) Provides for the consolidation of all timely challenges 2 and for an impartial hearing, before an arbitrator appointed by 3 the American arbitration association pursuant to its rules for 4 impartial determination of union fees, conducted in accordance 5 with those rules and paid for by the employee organization. 6 (4) Provides that the burden of proof relating to the 7 propriety of the reasonable reimbursement amount for bargaining 8 services is on the employee organization. 9 (5) Provides that all reasonable reimbursement amounts 10 reasonably in dispute while a challenge is pending shall be 11 held by the employee organization in an interest-bearing escrow 12 account until a final decision is issued by the arbitrator, at 13 which time such funds shall be disbursed in accordance with the 14 arbitrator’s decision. 15 e. The employee organization shall notify the public 16 employer of any arbitrator’s award issued pursuant to the 17 challenge procedure specified in paragraph “d” which reduced 18 the reasonable reimbursement amount for bargaining services and 19 the public employer shall adjust its deduction from the wages 20 or salaries of the challenging nonmembers accordingly. 21 f. This subsection shall be enforced through an action in a 22 court of competent jurisdiction. 23 3. Grievance services. 24 a. As a precondition to the collection of a reasonable 25 reimbursement amount for grievance services, the employee 26 organization shall establish and maintain a full and 27 fair procedure that conforms with the requirements of the 28 Constitution of the United States and the Constitution of the 29 State of Iowa and shall provide nonmembers of the employee 30 organization with an annual notice, not later than thirty 31 days prior to the commencement of each full year of the 32 contract’s term, which informs them of the maximum reasonable 33 reimbursement amount for grievance services, and provides them 34 with sufficient information to gauge the propriety of that 35 -5- LSB 5724HV (2) 83 ec/rj 5/ 8

H.F. 2420 amount. 1 b. If a nonmember of an employee organization subject to 2 this section requests and receives grievance services, the 3 employee organization shall be entitled to receive reasonable 4 reimbursement for the actual cost of the grievance services. 5 However, the maximum reasonable reimbursement amount to be 6 collected by the employee organization from a nonmember during 7 any full year of the contract’s term shall not exceed an amount 8 equal to ten percent of the annual membership dues that the 9 nonmember would have to pay if the nonmember were a member of 10 the employee organization for that bargaining unit. 11 c. This subsection shall be enforced through an action in a 12 court of competent jurisdiction. 13 Sec. 5. APPLICABILITY —— COLLECTIVE BARGAINING 14 AGREEMENTS. The provisions of this Act providing for 15 reasonable reimbursement of bargaining services and grievance 16 services apply to collective bargaining agreements entered into 17 on or after the effective date of this Act. 18 EXPLANATION 19 This bill concerns executive branch public employee 20 collective bargaining with respect to reasonable reimbursement 21 of services provided by an employee organization to nonmembers. 22 Code section 20.3 is amended to define bargaining services, 23 executive branch public employees, and grievance services. The 24 bill defines “bargaining services” as those services provided 25 to all employees in a bargaining unit, exclusive of grievance 26 services, for purposes of collective bargaining and contract 27 administration. “Executive branch public employees” is defined 28 to include all employees employed within the state executive 29 branch. The bill defines “grievance services” to mean those 30 services provided by an employee organization on behalf of an 31 employee following the submission of a written grievance by the 32 employee to an employer which relate to the adjustment of that 33 grievance. The bill also defines “grievance”. 34 Code section 20.9 is amended to provide that, for executive 35 -6- LSB 5724HV (2) 83 ec/rj 6/ 8

H.F. 2420 branch public employees, negotiations shall include whether 1 nonmembers of the employee organization shall reimburse the 2 employee organization for bargaining services or grievance 3 services, or both, provided pursuant to the requirements of new 4 Code section 20.32. 5 New Code section 20.32 establishes the procedures to 6 follow if an employee organization representing executive 7 branch public employees is entitled, pursuant to a collective 8 bargaining agreement, to receive reasonable reimbursement 9 for bargaining services and grievance services provided to 10 nonmembers of the employee organization. 11 For reimbursement of bargaining services, the new Code 12 section provides that once an agreement is ratified or an 13 arbitration award is issued that provides for reasonable 14 reimbursement of bargaining services, the public employer 15 shall, no later than 45 days prior to the date the agreement 16 takes effect, provide the employee organization with a list of 17 employees covered by the agreement. If the agreement has a 18 term of more than one year, the employer shall provide the list 19 on an annual basis. Once the employee organization receives 20 the list, the employee organization, if it decides to receive 21 reasonable reimbursement, shall provide the employer with a 22 list of each nonmember of the employee organization and the 23 reasonable reimbursement amount for bargaining services. The 24 employee organization shall also inform the labor commissioner 25 of the reasonable reimbursement amount for bargaining services 26 and how it was determined. The bill provides that the 27 reasonable reimbursement amount for bargaining services shall 28 not exceed 65 percent of the regular membership dues that 29 the nonmember would have paid as a member, shall not include 30 costs for grievance services, and shall not include costs of 31 the employee organization that are not costs incurred by the 32 employee organization and germane to collective bargaining, and 33 contract administration. The bill provides that the public 34 employer shall begin deducting the reasonable reimbursement 35 -7- LSB 5724HV (2) 83 ec/rj 7/ 8

H.F. 2420 amount for bargaining services from nonmembers upon the later 1 of the effective date of the collective bargaining agreement 2 or 20 days after the public employer receives the list of 3 nonmembers and the amount of the reasonable reimbursement 4 amount for bargaining services. The bill provides that no 5 retroactive reimbursements are required. 6 For reimbursement of grievance services, the new 7 Code section provides that if a nonmember of an employee 8 organization receives grievance services, the employee 9 organization shall be entitled to receive reasonable 10 reimbursement for the actual cost of the grievance services. 11 However, the bill provides that the maximum reasonable 12 reimbursement amount or amounts to be collected by the 13 employee organization from a nonmember during any full year 14 of the contract’s term shall not exceed an amount equal to 15 10 percent of the annual membership dues of the employee 16 organization. The employee organization may enforce its right 17 to reimbursement through an action in a court of competent 18 jurisdiction. 19 The bill further provides that the provisions of the bill 20 providing for reasonable reimbursement of bargaining and 21 grievance services shall only apply to collective bargaining 22 agreements entered into on or after the effective date of the 23 bill. 24 -8- LSB 5724HV (2) 83 ec/rj 8/ 8