[1] NOTE:  As provided in LFC policy, this report is intended only 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 (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC’s 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:

Sanchez

 

DATE TYPED:

01/31/02

 

HB

266

 

SHORT TITLE:

Right to Work Act

 

SB

 

 

 

ANALYST:

Woodlee

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

NFI

NFI

NFI

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

Labor Department (LD)

Attorney General (AG)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 266 provides for the protection of the rights of persons to join or assist labor organizations, or to refrain from such activity, without fear of penalty or reprisal.  The bill prohibits employers from agreeing to accept employee referrals from labor organizations and prohibits deductions from paychecks without written authorization.

 

     Significant Issues

 

The Attorney General indicates that the National Labor Relations Act leaves the states the authority to enact certain right to work laws.  The courts have upheld the states’ rights to require an employer to obtain written authority to deduct union dues from wages, and, therefore, HB266 is consistent with federal law in that respect. 

 

However, the Attorney General also indicates that Section 14(b) of the National Labor Relations Act does not allow the states the right to regulate all relationships between unions and employers.  For example, if an employer agrees with a union to hire only those workers a union refers to the employer and the union promises not to discriminate between members and nonmembers in making referrals, that agreement is not within the states’ right to regulate.  This has been upheld by the

 

courts, according to the Attorney General’s Office.  Section 5 of HB 266 disallows all union referral agreements regardless of whether they require union hiring or not.  This provision is not within New Mexico’s authority, and is inconsistent with, and thus pre-empted by, the National Labor Relations Act.

 

FISCAL IMPLICATIONS

 

There is no appropriation or significant fiscal implication associated with this bill.

 

MW/ar

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