NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the
legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information
in this report when used in any other situation.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and
attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR: |
Larranaga |
DATE TYPED: |
02/28/01 |
HB |
861 |
SHORT TITLE: |
Use of Collected Union Dues |
SB |
|
|
ANALYST: |
Taylor |
APPROPRIATION
Appropriation Contained
|
Estimated Additional Impact
|
Recurring
or Non-Rec |
Fund
Affected |
FY01 |
FY02 |
FY01 |
FY02 |
|
|
See Narrative |
|
|
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates SB 787
SOURCES OF INFORMATION
Labor Department
State Personnel Office
SUMMARY
Synopsis of Bill
House Bill 861 would require all employers who collect union dues from their employees to
notify employees of rights regarding use of collected union dues. Specifically, the bill would
require:
- •Employers to post in a conspicuous location a notice disclosing employees rights regarding
use of collected dues. The notice would state that in accordance with the United States
Supreme Court Decision Communication Workers of America v. Beck (1988), employees
rights regarding collected dues include that a union is not permitted to expend dues for
fees collected from employees on activities unrelated to collective bargaining activities and
may only collect dues and fees necessary to finance collective bargaining activities. It
would also report political causes and community outreach programs are activities
unrelated to collective bargaining and collective bargaining fees and dues may not be used
to finance them.
- •The director of Labor and Industrial Division (LID) of the Labor Department to prepare
and furnish posters containing the notice about use of union dues and fees. LID is
responsible for enforcing compliance with the requirement that the posters be conspicuously displayed.
- •Employers to obtain written permission from an employee before using union dues or fees
for political purposes.
- •Unions that engage in mandatory withholding of dues or fees from nonmember employees
to report annually the withholding and the amounts withheld along with expenditures by
category to the Secretary of State. Categories includes collective bargaining, organizing,
developing safety programs, partisan political campaigns, political issue education and
voter registration.
FISCAL IMPLICATIONS
The Labor Department estimates that it would cost the Labor and Industrial Division about $4,500
to comply with the posting requirement. They assume 4,500 employers have unionized employees and that posters cost $1.00 each. There is no appropriation to pay for this, so they say that
they would have to reduce operating expenses for other efforts to absorb the costs.
BT/sb